76R13054 KKA/CLG/KLA-D                           
         By Naishtat, Lewis of Tarrant, Tillery                H.B. No. 3639
         Substitute the following for H.B. No. 3639:
         By Maxey                                          C.S.H.B. No. 3639
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to eligibility for and the provision of services and
 1-3     programs for needy people and to the duty of parents to support
 1-4     their children to prevent reliance on programs for needy people;
 1-5     providing penalties.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7              ARTICLE 1.  PERSONAL RESPONSIBILITY AND SANCTIONS
 1-8           SECTION 1.01.  SANCTIONS FOR NONCOMPLIANCE.  (a)  Section
 1-9     31.0031(c), Human Resources Code, is amended to read as follows:
1-10           (c)  Subject to the requirements of Section 31.00321, the
1-11     [The] department shall adopt rules governing sanctions and
1-12     penalties under this section to or for:
1-13                 (1)  a person who fails to comply with each applicable
1-14     requirement of the responsibility agreement prescribed by this
1-15     section; and
1-16                 (2)  the family of a person who fails to comply with
1-17     the requirement of the responsibility agreement under Subsection
1-18     (d)(4).
1-19           (b)  Sections 31.0032(a) and (c), Human Resources Code, are
1-20     amended to read as follows:
1-21           (a)  If after an investigation the department determines that
1-22     a person is not complying with a requirement of the responsibility
1-23     agreement required under Section 31.0031, the department shall
1-24     apply appropriate sanctions or penalties regarding the assistance
 2-1     provided to or for that person or that person and the person's
 2-2     family under this chapter.
 2-3           (c)  This section does not prohibit the department from
 2-4     providing medical assistance, child care, or any other social or
 2-5     support services for a person who or a family that is [an
 2-6     individual] subject to sanctions or penalties under this chapter.
 2-7           (c)  Subchapter A, Chapter 31, Human Resources Code, is
 2-8     amended by adding Section 31.00321 to read as follows:
 2-9           Sec. 31.00321.  PENALTIES AND SANCTIONS FOR NONCOMPLIANCE
2-10     WITH CERTAIN REQUIREMENTS.  (a)  This section applies only to the
2-11     application of sanctions or penalties to a person who, without good
2-12     cause as determined under Section 31.0033, fails or refuses to
2-13     comply with a requirement of the responsibility agreement under
2-14     Section 31.0031(d)(4).
2-15           (b)  On a person's first failure or refusal to comply with a
2-16     requirement of the responsibility agreement under Section
2-17     31.0031(d)(4), the department shall reduce the amount of financial
2-18     assistance provided to or for each adult person in the family who
2-19     is not in compliance for a period of one month or until each adult
2-20     member of the family complies, whichever is later.  If each adult
2-21     member of the family has not complied with the requirement under
2-22     Section 31.0031(d)(4) after six months, the department shall,
2-23     subject to the requirements of Section 31.00331, terminate the
2-24     total amount of financial assistance provided to or for the person
2-25     and the person's family.
2-26           (c)  On a person's second failure or refusal to comply with
2-27     the requirement of the responsibility agreement under Section
 3-1     31.0031(d)(4), the department shall reduce the amount of financial
 3-2     assistance provided to or for each adult person in the family who
 3-3     is not in compliance for a period of two months or until each adult
 3-4     member of the family complies, whichever is later.  If each adult
 3-5     member of the family has not complied with the requirement  under
 3-6     Section 31.0031(d)(4) after three months, the department shall,
 3-7     subject to the requirements of Section 31.00331, terminate the
 3-8     total amount of financial assistance provided to or for the person
 3-9     and the person's family.
3-10           (d)  On a person's third or subsequent failure or refusal to
3-11     comply with the requirement of the responsibility agreement under
3-12     Section 31.0031(d)(4), the department shall, subject to the
3-13     requirements of Section 31.00331, terminate the total amount of
3-14     financial assistance provided to or for the person and the person's
3-15     family.
3-16           (d)  Section 31.0033(c), Human Resources Code, is amended to
3-17     read as follows:
3-18           (c)  If the department finds that good cause for
3-19     noncompliance was not shown at a hearing, the department shall
3-20     apply appropriate sanctions or penalties to or for that person or
3-21     that person and the person's family until the department determines
3-22     that the person is in compliance with the terms of the
3-23     responsibility agreement.
3-24           SECTION 1.02.  CASE REVIEW AND COMPLIANCE PLAN.  Subchapter
3-25     A, Chapter 31, Human Resources Code, is amended by adding Section
3-26     31.00331 to read as follows:
3-27           Sec. 31.00331.  CASE REVIEW AND COMPLIANCE PLAN ON
 4-1     NONCOMPLIANCE WITH CERTAIN REQUIREMENTS.  (a)  Before termination
 4-2     of all financial assistance for a person or the person's family
 4-3     under Section 31.00321, the department, the Texas Workforce
 4-4     Commission or a local workforce development board, as appropriate,
 4-5     and, if applicable, the Title IV-D agency shall conduct a case
 4-6     review to determine the reasons for:
 4-7                 (1)  the noncompliance of the person with a requirement
 4-8     of the responsibility agreement under Section 31.0031(d)(4); and
 4-9                 (2)  the application of penalties or sanctions against
4-10     the person or the person and the person's family because of the
4-11     noncompliance.
4-12           (b)  The case review under Subsection (a) must:
4-13                 (1)  include an administrative review of the person's
4-14     case file to determine whether:
4-15                       (A)  the sanction or penalty is being applied
4-16     correctly; and
4-17                       (B)  information about compliance or relevant
4-18     exemptions has been accurately shared between the department and
4-19     the appropriate agencies specified under Subsection (a);
4-20                 (2)  document efforts made by the department to contact
4-21     the person directly;
4-22                 (3)  identify factors that contributed to the person's
4-23     inability to comply with the requirement of the responsibility
4-24     agreement under Section 31.0031(d)(4) for which the person is being
4-25     sanctioned or penalized; and
4-26                 (4)  determine the support services that will enable
4-27     the person to comply with that requirement.
 5-1           (c)  Based on the case review conducted under this section,
 5-2     the department shall develop a compliance plan for the person.  The
 5-3     compliance plan may require the person to take specific actions or
 5-4     engage in specific activities as evidence of compliance with a
 5-5     requirement of the responsibility agreement under Section
 5-6     31.0031(d)(4) with which the person has previously not complied.
 5-7     The compliance plan may also provide referrals to appropriate
 5-8     preventive and support services to address and remove barriers to
 5-9     compliance encountered by the person.
5-10           (d)  Notwithstanding Section 31.00321, the department may not
5-11     apply a sanction or penalty against a person for noncompliance with
5-12     a requirement under Section 31.0031(d)(4) if:
5-13                 (1)  a compliance plan was developed for the person
5-14     under Subsection (c) and the person has complied with the terms of
5-15     that plan;
5-16                 (2)  the case review conducted under Subsection (a)
5-17     identified a legitimate good cause for noncompliance; or
5-18                 (3)  the administrative review of the person's case
5-19     file required under Subsection (b)(1) resulted in a determination
5-20     that the imposition of the sanction or penalty was erroneous
5-21     because of inaccurate information.
5-22           (e)  A person who is sanctioned under Section 31.00321 for
5-23     noncompliance with the requirement of the responsibility agreement
5-24     under Section 31.0031(d)(4) and who finds employment is:
5-25                 (1)  considered to have complied with the requirements
5-26     of Section 31.0031(d)(4); and
5-27                 (2)  eligible for child care assistance under this
 6-1     chapter and transitional medical assistance under Chapter 32 to the
 6-2     extent allowed by federal law and established by department and
 6-3     Texas Workforce Commission rule.
 6-4           (f)  The department and the Texas Workforce Commission or a
 6-5     local workforce development board, as appropriate, may contract
 6-6     with community-based organizations, academic institutions, or other
 6-7     appropriate entities to provide services that are determined to be
 6-8     necessary in the case review conducted under this section.
 6-9           SECTION 1.03.  INELIGIBILITY FOR FINANCIAL ASSISTANCE AND
6-10     FOOD STAMPS RESULTING FROM CERTAIN DRUG-RELATED CONVICTIONS.  (a)
6-11     Subchapter A, Chapter 31, Human Resources Code, is amended by
6-12     adding Section 31.0039 to read as follows:
6-13           Sec. 31.0039.  INELIGIBILITY RESULTING FROM DRUG-RELATED
6-14     FELONY CONVICTIONS.  (a)  A person is permanently ineligible for
6-15     financial assistance if the person is convicted, for conduct
6-16     occurring after September 1, 1999, of an offense under federal law
6-17     or the law of this state or any other state that at the time of the
6-18     conviction is classified as a felony by the jurisdiction involved
6-19     and has as an element the manufacture or delivery of a controlled
6-20     substance, as defined in 21 U.S.C. Section 802 and its subsequent
6-21     amendments.
6-22           (b)  Except as provided by Subsection (d), a person who is
6-23     convicted, for conduct occurring after September 1, 1999, of an
6-24     offense under federal law or the law of this state or any other
6-25     state that at the time of the conviction is classified as a felony
6-26     by the jurisdiction involved and has as an element the possession
6-27     or use of a controlled substance, as defined in 21 U.S.C. Section
 7-1     802 and its subsequent amendments, is ineligible for financial
 7-2     assistance until the third anniversary of the date of the
 7-3     conviction.
 7-4           (c)  The department shall require an applicant for financial
 7-5     assistance to indicate in writing whether the applicant or any
 7-6     member of the applicant's household has been convicted of an
 7-7     offense described by Subsection (a) or (b).
 7-8           (d)  A person convicted of an offense described by Subsection
 7-9     (b) is not ineligible under that subsection for financial
7-10     assistance if the person:
7-11                 (1)  has completed any sentence of confinement or
7-12     imprisonment imposed by the court in connection with the
7-13     conviction;
7-14                 (2)  is in compliance with the terms and conditions of
7-15     any parole or community supervision; and
7-16                 (3)  has completed or is participating in a drug
7-17     rehabilitation, counseling, or support program.
7-18           (e)  The department shall adopt rules as necessary to
7-19     implement this section.
7-20           (f)  This section does not affect:
7-21                 (1)  the eligibility for financial assistance of any
7-22     other member of the household of a person ineligible as a result of
7-23     a conviction of an offense described by Subsection (a) or (b); or
7-24                 (2)  the eligibility of a person convicted of an
7-25     offense described by Subsection (a) or (b) for a federal benefit
7-26     specified in 21 U.S.C. Section 862a(f) and its subsequent
7-27     amendments.
 8-1           (b)  Chapter 33, Human Resources Code, is amended by adding
 8-2     Section 33.014 to read as follows:
 8-3           Sec. 33.014.  INELIGIBILITY RESULTING FROM DRUG-RELATED
 8-4     FELONY CONVICTIONS.  (a)  A person is permanently ineligible for
 8-5     food stamps if the person is convicted, for conduct occurring after
 8-6     September 1, 1999, of an offense under federal law or the law of
 8-7     this state or any other state that at the time of the conviction is
 8-8     classified as a felony by the jurisdiction involved and has as an
 8-9     element the manufacture or delivery of a controlled substance, as
8-10     defined in 21 U.S.C. Section 802 and its subsequent amendments.
8-11           (b)  Except as provided by Subsection (d), a person who is
8-12     convicted, for conduct occurring after September 1, 1999, of an
8-13     offense under federal law or the law of this state or any other
8-14     state that at the time of the conviction is classified as a felony
8-15     by the jurisdiction involved and has as an element the possession
8-16     or use of a controlled substance, as defined in 21 U.S.C. Section
8-17     802 and its subsequent amendments, is ineligible for food stamps
8-18     until the third anniversary of the date of the conviction.
8-19           (c)  The department shall require an applicant for food
8-20     stamps to indicate in writing whether the applicant or any member
8-21     of the applicant's household has been convicted of an offense
8-22     described by Subsection (a) or (b).
8-23           (d)  A person convicted of an offense described by Subsection
8-24     (b) is not ineligible under that subsection for food stamps if the
8-25     person:
8-26                 (1)  has completed any sentence of confinement or
8-27     imprisonment imposed by the court in connection with the
 9-1     conviction;
 9-2                 (2)  is in compliance with the terms and conditions of
 9-3     any parole or community supervision; and
 9-4                 (3)  has completed or is participating in a drug
 9-5     rehabilitation, counseling, or support program.
 9-6           (e)  The department shall adopt rules as necessary to
 9-7     implement this section.
 9-8           (f)  This section does not affect:
 9-9                 (1)  the eligibility for food stamps of any other
9-10     member of the household of a person ineligible as a result of a
9-11     conviction of an offense described by Subsection (a) or (b); or
9-12                 (2)  the eligibility of a person convicted of an
9-13     offense described by Subsection (a) or (b) for a federal benefit
9-14     specified in 21 U.S.C.  Section 862a(f) and its subsequent
9-15     amendments.
9-16           (c)  Sections 31.0039 and 33.014, Human Resources Code, as
9-17     added by this section, apply only to a person who receives
9-18     financial assistance under Chapter 31, Human Resources Code, or
9-19     food stamps under Chapter 33, Human Resources Code, on or after the
9-20     effective date of this section, regardless of the date on which
9-21     eligibility for the financial assistance or food stamps was
9-22     determined.
9-23           SECTION 1.04.  STUDY REGARDING ROLE OF SANCTIONS AND
9-24     INCENTIVES IN IMPROVING PATERNITY ESTABLISHMENT AND CHILD SUPPORT
9-25     ENFORCEMENT.  (a)  The Texas Department of Human Services and the
9-26     Office of the Attorney General shall conduct a joint study of
9-27     existing efforts to establish paternity and collect child support
 10-1    for children in families receiving financial assistance under
 10-2    Chapter 31, Human Resources Code.
 10-3          (b)  The study required by this section must review:
 10-4                (1)  existing relevant procedures and policies,
 10-5    including procedures and policies relating to case management,
 10-6    interactions with clients, interagency operations, and sanctions;
 10-7                (2)  the findings and recommendations of current
 10-8    relevant research; and
 10-9                (3)  the efforts of other states in attempting to
10-10    improve paternity establishment and child support enforcement
10-11    through use of sanctions, penalties, and incentives such as
10-12    increased pass-through amounts of collected child support payments,
10-13    with a focus on the levels of success obtained by other states in
10-14    improving client compliance and cooperation with paternity
10-15    establishment and child support enforcement.
10-16          (c)  The department and the attorney general shall jointly
10-17    submit to the 77th Legislature a report based on the study required
10-18    by this section.  The report must include recommendations for
10-19    improving:
10-20                (1)  paternity establishment and child support
10-21    enforcement for children in families receiving financial assistance
10-22    under Chapter 31, Human Resources Code; and
10-23                (2)  the cooperation and compliance with legal
10-24    requirements of persons receiving financial assistance under
10-25    Chapter 31, Human Resources Code, in paternity establishment and
10-26    child support enforcement.
 11-1                         ARTICLE 2.  WELFARE FRAUD
 11-2          SECTION 2.01.  SUBPOENA AUTHORITY.  Chapter 22, Human
 11-3    Resources Code, is amended by adding Section 22.0271 to read as
 11-4    follows:
 11-5          Sec. 22.0271.  SUBPOENA AUTHORITY:  FRAUD INVESTIGATIONS.
 11-6    (a)  The department may issue a subpoena throughout this state to
 11-7    compel the attendance and testimony of a witness or the production
 11-8    of documents or other evidence relating to an investigation by the
 11-9    department of a potentially fraudulent claim for benefits or other
11-10    payment under the food stamp program or the financial assistance
11-11    program.  The subpoena may compel attendance or production at the
11-12    department's offices in Austin or at another place designated in
11-13    the subpoena.
11-14          (b)  The department by rule may authorize the commissioner or
11-15    another department employee or representative to issue a subpoena
11-16    authorized by this section on behalf of the department.
11-17          (c)  On a person's failure to comply with a subpoena issued
11-18    under this section, the department shall apply for an order
11-19    directing compliance to the district court of the county in which
11-20    the person is found, resides, or transacts business.
11-21          (d)  A subpoena issued under this section to a financial
11-22    institution is not subject to Section 30.007, Civil Practice and
11-23    Remedies Code.
11-24          SECTION 2.02.  SANCTIONS FOR WELFARE FRAUD.  Subchapter A,
11-25    Chapter 31, Human Resources Code, is amended by adding Section
11-26    31.017 to read as follows:
11-27          Sec. 31.017.  FRAUD.  (a)  For purposes of establishing or
 12-1    maintaining the eligibility of the person and the person's family
 12-2    for financial assistance or for purposes of increasing or
 12-3    preventing a reduction in the amount of the assistance, a person
 12-4    may not intentionally:
 12-5                (1)  make a statement that the person knows is false or
 12-6    misleading;
 12-7                (2)  misrepresent, conceal, or withhold a fact; or
 12-8                (3)  represent a statement to be true if the person
 12-9    knows the statement is false.
12-10          (b)  If after an investigation the department determines that
12-11    a person has violated this section, the department shall:
12-12                (1)  notify the person of the alleged violation not
12-13    later than the 30th day after the date the investigation is
12-14    completed and conduct a hearing; or
12-15                (2)  refer the matter to the appropriate district
12-16    attorney for prosecution.
12-17          (c)  If a hearing officer at an administrative hearing held
12-18    under this section determines that a person has violated this
12-19    section, the department shall:
12-20                (1)  after the first violation, terminate the total
12-21    amount of financial assistance provided to or for that person until
12-22    the first anniversary of the date the assistance was terminated;
12-23                (2)  after the second violation, terminate the total
12-24    amount of financial assistance provided to or for that person until
12-25    the second anniversary of the date the assistance was terminated;
12-26    and
12-27                (3)  after the third violation, permanently disqualify
 13-1    the person from receiving financial assistance.
 13-2          (d)  A person whom a hearing officer determines to be in
 13-3    violation of this section may appeal the determination by filing a
 13-4    petition in the district court in the county in which the violation
 13-5    occurred not later than the 30th day after the date of the
 13-6    decision.
 13-7          (e)  If a person is convicted of an offense under the Penal
 13-8    Code for conduct described by this section, a person is permanently
 13-9    disqualified from receiving financial assistance.
13-10                          ARTICLE 3.  EMPLOYMENT
13-11          SECTION 3.01.  EARNED INCOME DISREGARDS.  (a)  Subchapter A,
13-12    Chapter 31, Human Resources Code, is amended by adding Section
13-13    31.0038 to read as follows:
13-14          Sec. 31.0038.  EARNED INCOME DISREGARDS FOR EMPLOYMENT.  (a)
13-15    The purpose of the earned income disregards benefit is to assist a
13-16    recipient of financial assistance in making a successful transition
13-17    from the receipt of financial assistance to employment and
13-18    self-sufficiency.
13-19          (b)  In this section, "former recipient of the earned income
13-20    disregards benefit" means a recipient of financial assistance whose
13-21    earned income has previously been disregarded by the department
13-22    under this section.
13-23          (c)  If an adult recipient of financial assistance becomes
13-24    employed while receiving the assistance, the department may not
13-25    consider any earned income received by the recipient up to the
13-26    first six months of employment for purposes of determining:
13-27                (1)  the amount of financial assistance granted to an
 14-1    individual for the support of dependent children; or
 14-2                (2)  whether the family meets household income and
 14-3    resource requirements for financial assistance.
 14-4          (d)  The department may not disregard under Subsection (c)
 14-5    the earned income of a recipient who left a position of employment
 14-6    voluntarily without good cause in the three-month period
 14-7    immediately preceding the date on which the recipient applied for
 14-8    financial assistance.
 14-9          (e)  The department may not disregard under Subsection (c)
14-10    the earned income of a former recipient of the earned income
14-11    disregards benefit until the first anniversary of the day after the
14-12    last date on which the former recipient's earned income was
14-13    disregarded under that subsection.
14-14          (f)  During the period the earned income of a recipient is
14-15    disregarded by the department under Subsection (c), the department
14-16    may not exempt the recipient from participating in a work or
14-17    employment activity under Section 31.012.
14-18          (g)  In adopting rules under this section, the department
14-19    shall:
14-20                (1)  ensure that this section applies only to
14-21    recipients who have income in an amount that does not exceed the
14-22    maximum gross income limit set by the department under Section
14-23    31.003; and
14-24                (2)  promote the purpose described by Subsection (a).
14-25          (b)  Section 31.043(a), Human Resources Code, as added by
14-26    Chapter 878, Acts of the 75th Legislature, Regular Session, 1997,
14-27    is repealed.
 15-1          SECTION 3.02.  POST-EMPLOYMENT ASSESSMENT.  Subchapter A,
 15-2    Chapter 31, Human Resources Code, is amended by adding Section
 15-3    31.0096 to read as follows:
 15-4          Sec. 31.0096.  POST-EMPLOYMENT ASSESSMENT AND SERVICES.  (a)
 15-5    The department and the Texas Workforce Commission or the local
 15-6    workforce development board, as appropriate, shall jointly develop
 15-7    a program under which a recipient of financial assistance who
 15-8    obtains employment is:
 15-9                (1)  assessed after beginning employment to determine
15-10    the recipient's need for continuing education, training, and other
15-11    services to promote employment retention and advancement to more
15-12    highly skilled and compensated employment; and
15-13                (2)  provided appropriate services to the extent the
15-14    services are available.
15-15          (b)  The department shall ensure that a recipient of
15-16    financial assistance who obtains employment receives clear
15-17    notification of any medical assistance under Chapter 32 and any
15-18    food stamp benefits under Chapter 33 for which the recipient or the
15-19    recipient's family remains eligible.
15-20          SECTION 3.03.  WORK REQUIREMENT EXEMPTIONS.  (a)  Section
15-21    31.012(c), Human Resources Code, is amended to read as follows:
15-22          (c)  A person who is the caretaker of a physically or
15-23    mentally disabled child who requires the caretaker's presence is
15-24    not required to participate in a program under this section.
15-25    Effective January 1, 2000 [September 1, 1995], a person is not
15-26    required to participate in a program under this section until the
15-27    person's youngest child at the time the person first became
 16-1    eligible for assistance reaches the age of three [five].  Effective
 16-2    January 1, 2001 [September 1, 1997], a person is exempt until the
 16-3    person's youngest child at the time the person first became
 16-4    eligible for assistance reaches the age of two [four].  Effective
 16-5    January 1, 2002, a person is exempt until the person's youngest
 16-6    child at the time the person first became eligible for assistance
 16-7    reaches the age of one.  In a two-parent family, only one parent
 16-8    may claim an exemption described by this section.  Notwithstanding
 16-9    Sections 31.0035(b) and 32.0255(b), the department shall provide to
16-10    a person who is exempt under this subsection and who voluntarily
16-11    participates in a program under Subsection (a)(2) six months of
16-12    transitional benefits in addition to the applicable limit
16-13    prescribed by Section 31.0065.
16-14          (b)  Before implementing any provision of Section 31.012(c),
16-15    Human Resources Code, as amended by this section, the Texas
16-16    Department of Human Services shall develop and implement a client
16-17    education effort targeted at clients affected by the changes to
16-18    that section.  The department shall inform each client whose
16-19    exemption status is affected of the pending change, the timeline
16-20    for the change, and the effect of the change on the client's work
16-21    requirements and time limits.
16-22          (c)  If, before implementing any provision of Section
16-23    31.012(c), Human Resources Code, as amended by this section, a
16-24    state agency determines that a waiver or authorization from a
16-25    federal agency is necessary for implementation, the agency shall
16-26    request the waiver or authorization and may delay implementing that
16-27    provision until the waiver or authorization is granted.
 17-1          (d)  If a waiver or authorization requested under Subsection
 17-2    (c) of this section is denied, the Texas Department of Human
 17-3    Services shall develop and implement a plan relating to authorizing
 17-4    exemptions from participation in work or employment activity
 17-5    requirements for certain recipients of Temporary Assistance for
 17-6    Needy Families benefits in a manner that complies with federal law
 17-7    and regulations.
 17-8          (e)  This section applies only to a person who receives
 17-9    financial assistance under Chapter 31, Human Resources Code, on or
17-10    after the effective date of this section, regardless of the date on
17-11    which eligibility for that assistance was determined.
17-12          SECTION 3.04.  BONUS PROGRAM FOR LOCAL WORKFORCE DEVELOPMENT
17-13    BOARDS.  Subchapter A, Chapter 31, Human Resources Code, is amended
17-14    by adding Section 31.013 to read as follows:           
17-15          Sec. 31.013.  PERFORMANCE-BASED BONUS PROGRAM FOR LOCAL
17-16    WORKFORCE DEVELOPMENT BOARDS.  (a)  The Texas Workforce Commission
17-17    shall develop and implement a performance-based bonus program to
17-18    reward efforts by local workforce development boards in preparing,
17-19    placing, and maintaining recipients of financial assistance in jobs
17-20    that pay self-sustaining wages and that allow the recipients to
17-21    become independent of financial assistance and, if applicable, food
17-22    stamps.
17-23          (b)  In developing criteria for the bonus program, the
17-24    commission may consider:
17-25                (1)  differences in economic conditions, including area
17-26    wages;
17-27                (2)  regional median wages;
 18-1                (3)  average county wages; and
 18-2                (4)  federal poverty guidelines.
 18-3          (c)  A local workforce development board shall use money
 18-4    provided under this section for expenses relating to education,
 18-5    training, and support services necessary to prepare, place, and
 18-6    maintain recipients of financial assistance in jobs that pay
 18-7    self-sustaining wages.
 18-8          (d)  The commission may also provide for payment of
 18-9    additional amounts to a local workforce development board under the
18-10    bonus program based on the wage level attained by recipients of
18-11    financial assistance served by the board and the length of time
18-12    that those recipients maintain employment.
18-13                       ARTICLE 4.  SUPPORT SERVICES
18-14          SECTION 4.01.  PERSONAL NEEDS ASSESSMENT.  (a)  The section
18-15    heading to Section 31.0095, Human Resources Code, is amended to
18-16    read as follows:
18-17          Sec. 31.0095.  EMPLOYABILITY NEEDS ASSESSMENT.
18-18          (b)  The section heading to Section 31.010, Human Resources
18-19    Code, is amended to read as follows:
18-20          Sec. 31.010.  SUPPORT SERVICES RELATED TO EMPLOYABILITY OF A
18-21    RECIPIENT.
18-22          (c)  Subchapter A, Chapter 31, Human Resources Code, is
18-23    amended by adding Section 31.011 to read as follows:
18-24          Sec. 31.011.  PERSONAL AND FAMILIAL NEEDS ASSESSMENT AND
18-25    SUPPORT SERVICES.  (a)  The department, in cooperation with the
18-26    Texas Workforce Commission or a local workforce development board,
18-27    as appropriate, shall assist a recipient of financial assistance in
 19-1    assessing the skills of the recipient and the needs, other than
 19-2    employability needs assessed under Section 31.0095, of the
 19-3    recipient and the recipient's family that, if addressed, would help
 19-4    the recipient and the recipient's family to attain and retain the
 19-5    capability of independence and self-care.
 19-6          (b)  Based on the needs assessment under this section, the
 19-7    department shall refer the recipient and the recipient's family to
 19-8    appropriate preventive and support services provided by the
 19-9    department or any other public or private entity.  Preventive and
19-10    support services to which the department may refer a recipient and
19-11    a recipient's family under this section include:
19-12                (1)  substance abuse treatment programs;
19-13                (2)  domestic violence services;
19-14                (3)  child abuse awareness and prevention services;
19-15                (4)  health care and nutrition programs;
19-16                (5)  parenting skills training;
19-17                (6)  life skills training;
19-18                (7)  criminal and juvenile justice intervention
19-19    programs;
19-20                (8)  at-risk children and youth programs;
19-21                (9)  child support enforcement services;
19-22                (10)  literacy programs;
19-23                (11)  housing assistance; and
19-24                (12)  any other program or service determined by the
19-25    department to be appropriate.
19-26          SECTION 4.02.  NUTRITION ASSISTANCE EDUCATION AND OUTREACH.
19-27    (a)  Section 33.025, Human Resources Code, is amended to read as
 20-1    follows:
 20-2          Sec. 33.025.  NUTRITION EDUCATION AND OUTREACH FOR THOSE
 20-3    ELIGIBLE FOR FOOD STAMPS.  (a)  The department shall develop and
 20-4    implement a plan of operation to provide nutrition education and
 20-5    outreach to persons eligible for food stamps.
 20-6          (b)  The plan of operation [for education and outreach]
 20-7    shall:
 20-8                (1)  ensure that low-income consumers are provided with
 20-9    informational materials that include [but are not limited to]
20-10    information on:
20-11                      (A)  food budgeting for low-income consumers;
20-12                      (B)  purchasing and preparing low-cost
20-13    nutritional meals;
20-14                      (C)  basic nutrition and healthy foods;
20-15                      (D)  the availability of food stamps;
20-16                      (E)  the eligibility requirements for food
20-17    stamps; and
20-18                      (F)  the application procedures for receiving
20-19    food stamps;
20-20                (2)  identify a target population for the informational
20-21    activities, which may include:
20-22                      (A)  recipients of the Supplemental Food Program
20-23    for Women, Infants and Children;
20-24                      (B)  families which have children who are
20-25    eligible for the free or reduced-priced meals programs;
20-26                      (C)  recipients of commodity surplus foods;
20-27                      (D)  senior citizens attending nutrition sites
 21-1    and participating in nutritional activities;
 21-2                      (E)  clients of emergency food pantries;
 21-3                      (F)  farm workers or migrants; and
 21-4                      (G)  others who may benefit from the information
 21-5    including [but not limited to] senior citizens, persons with
 21-6    disabilities, and working poor families;
 21-7                (3)  identify geographical areas, if any, which
 21-8    specifically will be targeted; and
 21-9                (4)  ensure that all informational activities are
21-10    multilingual and available in accessible alternative formats.
21-11          (c)  The plan of operation may include the use of public
21-12    service announcements on radio and television regarding nutritional
21-13    assistance.
21-14          (d)  The department shall submit the plan of operation to the
21-15    Food and Nutrition Service of the United States Department of
21-16    Agriculture for approval, making the department eligible for
21-17    reimbursement for 50 percent of the cost of the informational
21-18    activities.
21-19          (e) [(d)]  The department shall cooperate with other state
21-20    agencies that currently operate nutrition education programs.
21-21          (f)  In developing and implementing the plan of operation,
21-22    the department shall enlist the assistance of public and private
21-23    nonprofit agencies that operate nutrition education and outreach
21-24    programs, including:
21-25                (1)  food banks;
21-26                (2)  food pantries or soup kitchens; and
21-27                (3)  organizations, including faith-based
 22-1    organizations, that serve persons at risk of hunger.
 22-2          (g) [(e)]  The department shall enlist the assistance of pro
 22-3    bono public relations firms where available.
 22-4          (b)  On or after the effective date of this section, the
 22-5    Texas Department of Human Services shall implement Section 33.025,
 22-6    Human Resources Code, as amended by this section, based on the
 22-7    amount of funds appropriated for that purpose.
 22-8                         ARTICLE 5.  CHILD SUPPORT
 22-9          SECTION 5.01.  INCENTIVE PROGRAM.  Section 31.0315, Human
22-10    Resources Code, is amended by adding Subsection (g) to read as
22-11    follows:
22-12          (g)  Subject to the availability of funds appropriated for
22-13    that purpose, the department, in cooperation with the Title IV-D
22-14    agency, may by rule develop an incentive program designed to
22-15    encourage an applicant or an applicant's relatives to cooperate
22-16    with the requirements of this section.  The program may include
22-17    incentives in the form of:
22-18                (1)  a one-time financial bonus in addition to the
22-19    amount of financial assistance granted to the applicant under
22-20    Section 31.003;
22-21                (2)  an increase in the amount of financial assistance
22-22    granted to the applicant under Section 31.003; or
22-23                (3)  to the extent authorized by federal law, an
22-24    increase in the amount of collected child support distributed to
22-25    the applicant.
22-26          SECTION 5.02.  DISREGARD OF CHILD SUPPORT.  Subchapter A,
22-27    Chapter 31, Human Resources Code, is amended by adding Section
 23-1    31.0041 to read as follows:
 23-2          Sec. 31.0041.  CHILD SUPPORT DISTRIBUTION.  (a)  In this
 23-3    section, "Title IV-D agency" has the meaning assigned by Section
 23-4    101.033, Family Code.
 23-5          (b)  The department may not consider the amount of child
 23-6    support that is distributed by the Title IV-D agency to a recipient
 23-7    of financial assistance and that would not otherwise disqualify the
 23-8    recipient or the recipient's family from receiving the assistance
 23-9    for purposes of determining:
23-10                (1)  the amount of financial assistance granted to an
23-11    individual under this chapter for the support of dependent
23-12    children; or
23-13                (2)  whether the family meets household income and
23-14    resource requirements for financial assistance under this chapter.
23-15          SECTION 5.03.  OBLIGOR EMPLOYMENT ASSISTANCE.  (a)  Section
23-16    231.115, Family Code, as added by Chapter 165, Acts of the 75th
23-17    Legislature, Regular Session, 1997, is amended to read as follows:
23-18          Sec. 231.115.  UNEMPLOYED AND UNDEREMPLOYED OBLIGORS
23-19    [NONCUSTODIAL PARENTS].  (a)  The Title IV-D agency shall refer to
23-20    appropriate state and local entities that provide employment
23-21    services [assist unemployed noncustodial parents in gaining
23-22    employment] any unemployed  or underemployed obligor [noncustodial
23-23    parent] who is in arrears in court-ordered child support payments
23-24    [to a child who:]
23-25                [(1)  receives financial assistance under Chapter 31,
23-26    Human Resources Code; or]
23-27                [(2)  is otherwise eligible to receive financial
 24-1    assistance under Chapter 31, Human Resources Code, and for whom the
 24-2    Department of Protective and Regulatory Services is providing
 24-3    substitute care].
 24-4          (b)  A referral under Subsection (a) may include:
 24-5                (1)  skills training and job placement through:
 24-6                      (A)  the Texas Workforce Commission; or
 24-7                      (B)  the agency responsible for the food stamp
 24-8    employment and training program (7 U.S.C. Section 2015(d));
 24-9                (2)  referrals to education and literacy classes; and
24-10                (3)  counseling regarding:
24-11                      (A)  substance abuse;
24-12                      (B)  parenting skills;
24-13                      (C)  life skills; and
24-14                      (D)  mediation techniques.
24-15          (c)  The Title IV-D agency may require an unemployed or
24-16    underemployed obligor [noncustodial parent] to complete the
24-17    training, classes, or counseling the obligor [parent] is referred
24-18    to under this section.  The agency shall suspend under Chapter 232
24-19    the license of an obligor [a parent] who fails to comply with the
24-20    requirements of this subsection.
24-21          (b)  Subchapter A, Chapter 302, Labor Code, is amended by
24-22    adding Section 302.0035 to read as follows:
24-23          Sec. 302.0035.  EMPLOYMENT ASSISTANCE PROGRAM FOR CERTAIN
24-24    PARENTS.  The division shall provide employment assistance
24-25    services, including  skills training, job placement, and
24-26    employment-related services, to a person referred by the Title IV-D
24-27    agency under Chapter 231, Family Code.
 25-1                   ARTICLE 6.  MISCELLANEOUS PROVISIONS
 25-2          SECTION 6.01.  ENTITLEMENT TO FINANCIAL ASSISTANCE FROM DATE
 25-3    OF APPLICATION.  Section 31.032(b), Human Resources Code, is
 25-4    amended to read as follows:
 25-5          (b)  After completing its investigation, the department shall
 25-6    determine whether the applicant is eligible for the assistance, the
 25-7    type and amount of assistance, [the date on which the assistance
 25-8    shall begin,] and the manner in which payments shall be made.  An
 25-9    applicant determined to be eligible for assistance is entitled to
25-10    assistance beginning on the date on which the applicant applied for
25-11    assistance.
25-12          SECTION 6.02.  CASH WITHDRAWALS UNDER ELECTRONIC BENEFITS
25-13    TRANSFER.  Section 31.0355(b), Human Resources Code, is amended to
25-14    read as follows:
25-15          (b)  If a recipient of financial assistance who receives the
25-16    assistance by electronic benefits transfer to an account is
25-17    authorized to make a cash withdrawal from the account through a
25-18    provider of the goods or services described by Subsection (a), the
25-19    recipient may make the cash withdrawal only at the customer service
25-20    department of the provider and not at the provider's point-of-sale
25-21    terminal, except as otherwise provided by this subsection.  If
25-22    authorized, a recipient may make a cash withdrawal at a provider's
25-23    point-of-sale terminal in a manner consistent with the provider's
25-24    general policies for cash withdrawal by customers.
25-25          SECTION 6.03.  INCOME AND RESOURCE REQUIREMENTS APPLICABLE TO
25-26    MEDICAL ASSISTANCE PROGRAM.  Subchapter B, Chapter 32, Human
25-27    Resources Code, is amended by adding Section 32.0242 to read as
 26-1    follows:
 26-2          Sec. 32.0242.  INCOME AND RESOURCE REQUIREMENTS FOR CERTAIN
 26-3    RECIPIENTS.  To the extent authorized by federal law, the
 26-4    department shall determine whether a family meets household income
 26-5    and resource requirements for medical assistance under 42 U.S.C.
 26-6    Section 1396u-1 in the same manner as the department makes
 26-7    household income and resource requirement determinations for
 26-8    financial assistance under Chapter 31.  If the method of
 26-9    determining household income and resource requirements under
26-10    Chapter 31 changes, the change also applies to those requirements
26-11    for purposes of determining whether a family is eligible for
26-12    medical assistance described by this section.
26-13          SECTION 6.04.  LEASE AND SUBLEASE OF OFFICE SPACE.
26-14    Subchapter B, Chapter 531, Government Code, is amended by adding
26-15    Section 531.051 to read as follows:
26-16          Sec. 531.051.  LEASES AND SUBLEASES OF CERTAIN OFFICE SPACE.
26-17    (a)  A health and human services agency, with the approval of the
26-18    commission, or the Texas Workforce Commission or any other state
26-19    agency that administers employment services programs, may lease or
26-20    sublease office space to or from a private service provider that
26-21    contracts with the agency to enable agency eligibility and
26-22    enrollment personnel to work with the provider if:
26-23                (1)  client access would be enhanced; and
26-24                (2)  the co-location of offices would improve the
26-25    efficiency of the administration and delivery of services.
26-26          (b)  Subchapters D and E, Chapter 2165, do not apply to a
26-27    state agency that leases or subleases office space to a private
 27-1    service provider under this section.
 27-2          (c)  Subchapter B, Chapter 2167, does not apply to a state
 27-3    agency that leases or subleases office space from a private service
 27-4    provider under this section.
 27-5          (d)  A state agency is delegated the authority to enter into
 27-6    a lease or sublease under this section and may negotiate the terms
 27-7    of the lease or sublease.
 27-8          (e)  To the extent authorized by federal law, a state agency
 27-9    may share business resources with a private service provider that
27-10    enters into a lease or sublease agreement with the agency under
27-11    this section.
27-12          SECTION 6.05.  CO-LOCATION OF OFFICES OR FACILITIES.  (a)
27-13    The office of the attorney general, in conjunction with the Texas
27-14    Department of Human Services, may develop and implement a plan to
27-15    co-locate offices or facilities located in the same geographic
27-16    region to enable child support enforcement officers to work with
27-17    department eligibility personnel for purposes of improving the
27-18    efficiency of the child support collection process in cases
27-19    involving children who receive financial assistance under Chapter
27-20    31, Human Resources Code.
27-21          (b)  If the office of the attorney general and the Texas
27-22    Department of Human Services develop a plan under this section, the
27-23    attorney general shall send a copy of the plan to the governor, the
27-24    lieutenant governor, and the speaker of the house of
27-25    representatives not later than the 60th day after the date the plan
27-26    is completed.
 28-1              ARTICLE 7.  WAIVERS; EFFECTIVE DATE; EMERGENCY
 28-2          SECTION 7.01.  WAIVERS.  If before implementing any provision
 28-3    of this Act a state agency determines that a waiver or
 28-4    authorization from a federal agency is necessary for
 28-5    implementation, the state agency shall request the waiver or
 28-6    authorization and may delay implementing that provision until the
 28-7    waiver or authorization is granted.
 28-8          SECTION 7.02.  EFFECTIVE DATE.  This Act takes effect
 28-9    September 1, 1999.
28-10          SECTION 7.03.  EMERGENCY.  The importance of this legislation
28-11    and the crowded condition of the calendars in both houses create an
28-12    emergency and an imperative public necessity that the
28-13    constitutional rule requiring bills to be read on three several
28-14    days in each house be suspended, and this rule is hereby suspended.