HBA-DMD S.B. 13 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 13 By: Zaffirini Human Services 5/14/1999 Engrossed BACKGROUND AND PURPOSE Currently in Texas, a consideration for determining eligibility for Temporary Assistance for Needy Families (TANF) is whether income is earned. Under the current program, recipients lose eligibility for cash and Medicaid when starting a 20-hour per week job. S.B. 13 prohibits the Texas Department of Human Services (department) from considering any earned income in excess of $120 received by the recipient up to the first six months in which income from employment is received, if a recipient of financial assistance becomes employed while receiving the assistance. This bill prohibits the department from disregarding earned income of a recipient who left a position of employment voluntarily without good cause while receiving financial assistance or during a specified period. It prohibits the department from disregarding the earned income of a former recipient of the earned income disregards benefit until the first anniversary of the day after the last date on which the former recipient's earned income was disregarded under that subsection. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Department of Human Services in SECTION 1 (Section 31.0038, Human Resources Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.0038, as follows: Sec. 31.0038. EARNED INCOME DISREGARDS FOR EMPLOYMENT. (a) Provides that the purpose of the earned income disregards benefit is to assist a recipient of financial assistance in making a successful transition from the receipt of financial assistance to employment and self-sufficiency. (b) Defines "former recipient of the earned income disregards benefit" in this section. (c) Prohibits the Texas Department of Human Services (department), if a recipient of financial assistance becomes employed while receiving the assistance, from considering any earned income in excess of $120 received by the recipient up to the first six months in which income from employment is received for purposes of certain determinations. (d) Prohibits the department from disregarding earned income of a recipient who left a position of employment voluntarily without good cause while receiving financial assistance or during a specified period, to be determined by department rule, that immediately precedes the date on which the recipient obtained new employment. (e) Prohibits the department from disregarding the earned income of a former recipient of the earned income disregards benefit until the first anniversary of the day after the last date on which the former recipient's earned income was disregarded under that subsection. (f) Prohibits the department from exempting the recipient from participating in a work or employment activity under Section 31.012 (Mandatory Work or Participation in Employment Activities Through the Job Opportunities and Basic Skills Program), Human Resources Code, during the period the earned income of a recipient is disregarded by the department under Subsection (c). (g) Sets requirements for the department, when adopting rules under this section. SECTION 2. Repealer: Section 31.043 (Inactive Electronic Benefits Transfer Account), Human Resources Code, as added by Chapter 878, Acts of the 75th Legislature, Regular Session, 1997. SECTION 3. Requires the department, if before implementing any provision of this Act a state agency determines that a waiver or other authorization from a federal agency is necessary for implementation, to request the waiver or authorization and authorizes the department to delay implementing that provision until the waiver or authorization is granted. SECTION 4. Provides that the change in law made by Section 31.0038, Human Resources Code, as added by this Act, applies only to a person who receives financial assistance under Chapter 31, Human Resources Code, on or after the effective date of this Act, regardless of the date on which eligibility for the financial assistance was determined. SECTION 5.Effective date: September 1, 1999, except as provided by Section 6 of this Act. SECTION 6. Provides that this Act takes effect only if a specific appropriation for the implementation of this Act is provided in H.B. No. 1 (General Appropriations Act), Acts of the 76th Legislature, Regular Session, 1999. Provides that if no specific appropriation is provided in H.B. No. 1, this Act has no effect. SECTION 7.Emergency clause.