By Naishtat                                           H.B. No. 3639
         76R8286 KKA/CLG-D                           
                                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.  TWO-STEP SANCTION PROCESS.  Subchapter A,
 1-9     Chapter 31, Human Resources Code, is amended by adding Section
1-10     31.00331 to read as follows:
1-11           Sec. 31.00331.  NEEDS ASSESSMENT FOR NONCOMPLIANCE WITH
1-12     CERTAIN REQUIREMENTS.  (a)  The department shall conduct an
1-13     assessment regarding the particular needs of a person whom the
1-14     department determines has not complied with a requirement of the
1-15     responsibility agreement under Section 31.0031 if:
1-16                 (1)  the department applies a sanction or penalty
1-17     against the person because of noncompliance with a requirement
1-18     under Section 31.0031(d)(1) or (3); and
1-19                 (2)  the person who is sanctioned or penalized has not
1-20     been previously sanctioned or penalized for noncompliance with the
1-21     requirement for which the person is sanctioned or penalized.
1-22           (b)  The assessment under Subsection (a) must:
1-23                 (1)  identify factors that contributed to the person's
1-24     inability to comply with the requirement for which the person is
 2-1     sanctioned or penalized; and
 2-2                 (2)  determine the support services that will enable
 2-3     the person to comply with that requirement.
 2-4           (c)  Based on the assessment under this section, the
 2-5     department shall refer the person and the person's family to
 2-6     appropriate preventive and support services provided by the
 2-7     department or any other public or private entity.
 2-8           (d)  Notwithstanding Section 31.0032, the department may not
 2-9     apply a subsequent sanction or penalty against a person for
2-10     noncompliance with a requirement under Section 31.0031(d)(1) or (3)
2-11     until the person and the person's family receive the preventive and
2-12     support services to which the person and the person's family were
2-13     referred under Subsection (c).
2-14           SECTION 1.02.  INELIGIBILITY RESULTING FROM CERTAIN
2-15     DRUG-RELATED CONVICTIONS.  (a)  Subchapter A, Chapter 31, Human
2-16     Resources Code, is amended by adding Section 31.0039 to read as
2-17     follows:
2-18           Sec. 31.0039.  INELIGIBILITY RESULTING FROM DRUG-RELATED
2-19     FELONY CONVICTIONS.  (a)  Except as provided by Subsection (c), a
2-20     person who is convicted, for conduct occurring after September 1,
2-21     1999, of an offense under federal law or the law of this state or
2-22     any other state that at the time of the conviction is classified as
2-23     a felony by the jurisdiction involved and has as an element the
2-24     possession, use, or distribution of a controlled substance, as
2-25     defined in 21 U.S.C. Section 802 and its subsequent amendments, is
2-26     ineligible for financial assistance until the third anniversary of
2-27     the date of the conviction.
 3-1           (b)  The department shall require an applicant for financial
 3-2     assistance to indicate in writing whether the applicant or any
 3-3     member of the applicant's household has been convicted of an
 3-4     offense described by Subsection (a).
 3-5           (c)  A person convicted of an offense described by Subsection
 3-6     (a) is not ineligible under that subsection for financial
 3-7     assistance if the person is participating in a drug rehabilitation
 3-8     program and is not using drugs.  The department may require a
 3-9     person to submit to drug testing to verify that the person is not
3-10     using drugs.
3-11           (d)  A person convicted of an offense described by Subsection
3-12     (a) may receive financial assistance after the third anniversary of
3-13     the conviction only if the person submits to drug testing and
3-14     demonstrates that the person is not using drugs.
3-15           (e)  The department shall adopt rules as necessary to
3-16     implement this section.
3-17           (f)  This section does not affect:
3-18                 (1)  the eligibility for financial assistance of any
3-19     other member of the household of a person ineligible as a result of
3-20     a conviction of an offense described by Subsection (a); or
3-21                 (2)  the eligibility of a person convicted of an
3-22     offense described by Subsection (a) for a federal benefit specified
3-23     in 21 U.S.C. Section 862a(f) and its subsequent amendments.
3-24           (b)  Section 31.0039, Human Resources Code, as added by this
3-25     section, applies only to a person who receives financial assistance
3-26     under Chapter 31, Human Resources Code, on or after the effective
3-27     date of this section, regardless of the date on which eligibility
 4-1     for the financial assistance was determined.
 4-2           SECTION 1.03.  STUDY OF EFFECTIVENESS OF SANCTIONS AND
 4-3     PENALTIES.  The Texas Department of Human Services, in cooperation
 4-4     with the Texas Workforce Commission, shall conduct a study to
 4-5     determine whether penalties and sanctions under Section 31.0032,
 4-6     Human Resources Code, that are applied to the entire family of a
 4-7     recipient of financial assistance under that chapter increase the
 4-8     likelihood that the recipient will comply with the requirements of
 4-9     the responsibility agreement under Section 31.0031, Human Resources
4-10     Code.
4-11                          ARTICLE 2.  WELFARE FRAUD
4-12           SECTION 2.01.  SUBPOENA AUTHORITY.  Chapter 22, Human
4-13     Resources Code, is amended by adding Section 22.0271 to read as
4-14     follows:
4-15           Sec. 22.0271.  SUBPOENA AUTHORITY:  FRAUD INVESTIGATIONS.
4-16     (a)  The department may issue a subpoena throughout this state to
4-17     compel the attendance and testimony of a witness or the production
4-18     of documents or other evidence relating to an investigation by the
4-19     department of a potentially fraudulent claim for benefits or other
4-20     payment under the food stamp program or the financial assistance
4-21     program.  The subpoena may compel attendance or production at the
4-22     department's offices in Austin or at another place designated in
4-23     the subpoena.
4-24           (b)  The department by rule may authorize the commissioner or
4-25     another department employee or representative to issue a subpoena
4-26     authorized by this section on behalf of the department.
4-27           (c)  On a person's failure to comply with a subpoena issued
 5-1     under this section, the department shall apply for an order
 5-2     directing compliance to the district court of the county in which
 5-3     the person is found, resides, or transacts business.
 5-4           (d)  A subpoena issued under this section to a financial
 5-5     institution is not subject to Section 30.007, Civil Practice and
 5-6     Remedies Code.
 5-7           SECTION 2.02.  SANCTIONS FOR WELFARE FRAUD.  Subchapter A,
 5-8     Chapter 31, Human Resources Code, is amended by adding Section
 5-9     31.017 to read as follows:
5-10           Sec. 31.017.  FRAUD.  (a)  For purposes of establishing or
5-11     maintaining the eligibility of the person and the person's family
5-12     for financial assistance or for purposes of increasing or
5-13     preventing a reduction in the amount of the assistance, a person
5-14     may not intentionally:
5-15                 (1)  make a statement that the person knows is false or
5-16     misleading;
5-17                 (2)  misrepresent, conceal, or withhold a fact; or
5-18                 (3)  represent a statement to be true if the person
5-19     knows the statement is false.
5-20           (b)  If after an investigation the department determines that
5-21     a person has violated this section, the department shall:
5-22                 (1)  notify the person of the alleged violation not
5-23     later than the 30th day after the date the investigation is
5-24     completed and conduct a hearing; or
5-25                 (2)  refer the matter to the appropriate district
5-26     attorney for prosecution.
5-27           (c)  If a hearing officer at an administrative hearing held
 6-1     under this section determines that a person has violated this
 6-2     section, the department shall:
 6-3                 (1)  after the first violation, terminate the total
 6-4     amount of financial assistance provided to or for that person until
 6-5     the first anniversary of the date the assistance was terminated;
 6-6                 (2)  after the second violation, terminate the total
 6-7     amount of financial assistance provided to or for that person until
 6-8     the second anniversary of the date the assistance was terminated;
 6-9     and
6-10                 (3)  after the third violation, permanently disqualify
6-11     the person from receiving financial assistance.
6-12           (d)  A person whom a hearing officer determines to be in
6-13     violation of this section may appeal the determination by filing a
6-14     petition in the district court in the county in which the violation
6-15     occurred not later than the 30th day after the date of the
6-16     decision.
6-17           (e)  If a person is convicted of an offense under the Penal
6-18     Code for conduct described by this section, a person is permanently
6-19     disqualified from receiving financial assistance.
6-20           (f)  A person who violates this section is not eligible to
6-21     receive medical assistance, child care, or any other social or
6-22     support services during the applicable period specified by
6-23     Subsection (c) or any time after being permanently disqualified
6-24     from receiving financial assistance.
6-25                           ARTICLE 3.  EMPLOYMENT
6-26           SECTION 3.01.  CHILD-CARE SERVICES.  Subchapter A, Chapter
6-27     31, Human Resources Code, is amended by adding Section 31.00351 to
 7-1     read as follows:
 7-2           Sec. 31.00351.  TEMPORARY CHILD-CARE SERVICES TO PROMOTE
 7-3     EMPLOYMENT.  The department by rule shall develop a program to
 7-4     provide temporary child-care services that will enable an applicant
 7-5     to gain or retain employment that the applicant has located without
 7-6     assistance from the department.
 7-7           SECTION 3.02.  EARNED INCOME DISREGARDS.  (a)  Subchapter A,
 7-8     Chapter 31, Human Resources Code, is amended by adding Section
 7-9     31.0038 to read as follows:
7-10           Sec. 31.0038.  EARNED INCOME DISREGARDS FOR EMPLOYMENT.  (a)
7-11     If an adult recipient of financial assistance becomes employed
7-12     while receiving the assistance, the department may not consider a
7-13     significant portion of any earned income received by the recipient
7-14     during the first six months of employment for purposes of
7-15     determining:
7-16                 (1)  the amount of financial assistance granted to an
7-17     individual for the support of dependent children; or
7-18                 (2)  whether the family meets household income and
7-19     resource requirements for financial assistance.
7-20           (b)  In adopting rules under this section, the department
7-21     shall:
7-22                 (1)  prescribe the portion of a recipient's income that
7-23     the department may not consider;
7-24                 (2)  ensure that this section applies only to
7-25     recipients who have income in an amount that does not exceed the
7-26     maximum gross income limit set by the department under Section
7-27     31.003; and
 8-1                 (3)  consider in determining the amount to be
 8-2     disregarded under Subsection (a) the total amount the department
 8-3     estimates to be available to provide financial assistance to
 8-4     eligible recipients.
 8-5           (b)  Section 31.043(a), Human Resources Code, as added by
 8-6     Chapter 878, Acts of the 75th Legislature, Regular Session, 1997,
 8-7     is amended to read as follows:
 8-8           (a)  To extend the period of supported employment for
 8-9     families who receive financial assistance under this chapter and
8-10     except as provided by Section 31.0038, the department may use a
8-11     form of fill-the-gap budgeting or another method under which the
8-12     department disregards earnings of family members who obtain
8-13     employment while receiving the assistance.
8-14           (c)  The change in law made by Section 31.0038, Human
8-15     Resources Code, as added by this section, applies only to a person
8-16     who receives financial assistance under Chapter 31, Human Resources
8-17     Code, on or after the effective date of this section, regardless of
8-18     the date on which eligibility for the financial assistance was
8-19     determined.
8-20           SECTION 3.03.  POST-EMPLOYMENT ASSESSMENT.  Subchapter A,
8-21     Chapter 31, Human Resources Code, is amended by adding Section
8-22     31.0096 to read as follows:
8-23           Sec. 31.0096.  POST-EMPLOYMENT ASSESSMENT AND SERVICES.  The
8-24     department and the Texas Workforce Commission shall jointly develop
8-25     a program under which a recipient of financial assistance who
8-26     obtains employment is:
8-27                 (1)  assessed after beginning employment to determine
 9-1     the recipient's need for continuing education, training, and other
 9-2     services to promote employment retention and advancement to more
 9-3     highly skilled and compensated employment; and
 9-4                 (2)  provided appropriate services to the extent the
 9-5     services are available.
 9-6           SECTION 3.04.  WORK REQUIREMENT EXEMPTIONS.  (a)  Section
 9-7     31.012, Human Resources Code, is amended by amending Subsection (c)
 9-8     and adding Subsection (f) to read as follows:
 9-9           (c)  [A person who is the caretaker of a physically or
9-10     mentally disabled child who requires the caretaker's presence is
9-11     not required to participate in a program under this section.]
9-12     Effective September 1, 1999, a single custodial parent [1995, a
9-13     person] is not required to participate in a program under this
9-14     section until the parent's [person's] youngest child at the time
9-15     the parent [person] first became eligible for assistance reaches
9-16     the age of three [five].  Effective September 1, 2000 [1997], a
9-17     single custodial parent [a person] is exempt until the parent's
9-18     [person's] youngest child at the time the parent [person] first
9-19     became eligible for assistance reaches the age of two [four].
9-20     Effective September 1, 2001, a single custodial parent is exempt
9-21     until the parent's youngest child at the time the parent first
9-22     became eligible for assistance reaches the age of one.
9-23     Notwithstanding Sections 31.0035(b) and 32.0255(b), the department
9-24     shall provide to a parent [person] who is exempt under this
9-25     subsection and who voluntarily participates in a program under
9-26     Subsection (a)(2) six months of transitional benefits in addition
9-27     to the applicable limit prescribed by Section 31.0065.
 10-1          (f)  In this section, "custodial parent" means the parent of
 10-2    a child with whom the child primarily resides, including a parent
 10-3    who has been appointed under a court order as sole managing
 10-4    conservator or joint managing conservator of the child.
 10-5          (b)  If, before implementing any provision of Section
 10-6    31.012(c), Human Resources Code, as amended by this section, a
 10-7    state agency determines that a waiver or authorization from a
 10-8    federal agency is necessary for implementation, the agency shall
 10-9    request the waiver or authorization and may delay implementing that
10-10    provision until the waiver or authorization is granted.
10-11          (c)  If a waiver or authorization requested under Subsection
10-12    (b) of this section is denied, the Texas Department of Human
10-13    Services shall develop and implement a plan relating to authorizing
10-14    exemptions from participation in work or employment activity
10-15    requirements for certain recipients of Temporary Assistance for
10-16    Needy Families benefits in a manner that complies with federal law
10-17    and regulations.
10-18          (d)  This section applies only to a person who receives
10-19    financial assistance under Chapter 31, Human Resources Code, on or
10-20    after the effective date of this section, regardless of the date on
10-21    which eligibility for that assistance was determined.
10-22          SECTION 3.05.  CHILD-CARE STUDY FOR PERSONS LOSING WORK
10-23    REQUIREMENT EXEMPTIONS.  (a)  The Texas Workforce Commission shall
10-24    conduct a study to consider issues relating to the provision of
10-25    child-care services to recipients of financial assistance under
10-26    Chapter 31, Human Resources Code, who:
10-27                (1)  are eligible for an exemption from participation
 11-1    in work or employment activity requirements under the waiver or
 11-2    authorization granted by the federal government to implement
 11-3    Chapter 655, Acts of the 74th Legislature, Regular Session, 1995
 11-4    (H.B. No. 1863); and
 11-5                (2)  would not be eligible for the exemption under
 11-6    federal law and regulations.
 11-7          (b)  Not later than January 1, 2001, the commission shall
 11-8    report the results of the study to the governor, lieutenant
 11-9    governor, and speaker of the house of representatives.  The report
11-10    must include an analysis of the cost and accessibility of
11-11    child-care services available to the recipients described by
11-12    Subsection (a) of this section.
11-13          (c)  The commission shall distribute a copy of the report to
11-14    each local workforce development board in this state.
11-15          SECTION 3.06.  SELF-SUFFICIENCY FUND.  Subtitle B, Title 4,
11-16    Labor Code, is amended by adding Chapter 309 to read as follows:
11-17                   CHAPTER 309.  SELF-SUFFICIENCY FUND. 
11-18          Sec. 309.001.  DEFINITIONS.  In this chapter:
11-19                (1)  "Community-based organization" means a private
11-20    nonprofit organization that is representative of a community or a
11-21    significant segment of a community and that provides education,
11-22    vocational education or rehabilitation, job training, or internship
11-23    services or programs.  The term includes a neighborhood group or
11-24    organization, community action agency, community development
11-25    corporation, union-related organization, employer-related
11-26    organization, faith-based organization, tribal government,  or
11-27    organization serving Native Americans.
 12-1                (2)  "Fund" means the self-sufficiency fund created
 12-2    under Section 309.002.
 12-3          Sec. 309.002.  SELF-SUFFICIENCY FUND.  (a)  Subject to the
 12-4    availability of funds, the self-sufficiency fund is created as an
 12-5    account in the  general revenue fund for use by public community
 12-6    and technical colleges, community-based organizations, and state
 12-7    extension agencies to develop for certain recipients of financial
 12-8    assistance under Chapter 31, Human Resources Code, customized
 12-9    job-training programs in which the recipients will be provided job
12-10    training by:
12-11                (1)  an entity that develops a job-training program
12-12    under this section;
12-13                (2)  a small or medium-sized business or trade union;
12-14    or
12-15                (3)  an informal partnership between an entity that
12-16    develops a job-training program under this section and a small or
12-17    medium-sized business network or consortium.
12-18          (b)  Money from the fund may also be used for support
12-19    services as necessary for participants to prepare for and
12-20    participate in training activities and to make the transition from
12-21    training activities to employment.
12-22          (c)  The commission shall administer the fund.  The executive
12-23    director, or a person appointed by the executive director who is
12-24    knowledgeable in the administration of grants, is responsible for
12-25    the distribution of money from the fund.
12-26          (d)  To the greatest extent practicable, money from the fund
12-27    shall be spent in all areas of the state.
 13-1          Sec. 309.003.  JOB-TRAINING PROGRAMS.  (a)  A job-training
 13-2    program financed by the fund:
 13-3                (1)  must be specifically designed to:
 13-4                      (A)  ensure that participants meet applicable
 13-5    state and federal work requirements;
 13-6                      (B)  enable participants to find and apply for
 13-7    existing jobs; and
 13-8                      (C)  include the involvement of employers who
 13-9    provide assistance in setting curricula and standards for
13-10    job-training programs developed with money from the fund and are
13-11    committed to hiring graduates of the programs; and
13-12                (2)  is considered a work or employment activity for
13-13    purposes of Section 31.012, Human Resources Code.
13-14          (b)  An entity that receives money from the fund for a
13-15    job-training program shall work in conjunction with employers to
13-16    place graduates of the program in positions of employment in which
13-17    the graduates will be earning wages sufficient to enable the
13-18    graduates to become independent of financial assistance under
13-19    Chapter 31, Human Resources Code, and if applicable, assistance
13-20    provided under the food stamp program administered by the Texas
13-21    Department of Human Services under Chapter 33, Human Resources
13-22    Code.
13-23          Sec. 309.004.  RULEMAKING AUTHORITY.  The commission shall
13-24    adopt rules to implement this chapter, including rules to determine
13-25    which recipients of financial assistance under Chapter 31, Human
13-26    Resources Code, are eligible to participate in job-training
13-27    programs developed with money from the fund.
 14-1                       ARTICLE 4.  SUPPORT SERVICES
 14-2          SECTION 4.01.  PERSONAL NEEDS ASSESSMENT.  (a)  The section
 14-3    heading to Section 31.0095, Human Resources Code, is amended to
 14-4    read as follows:
 14-5          Sec. 31.0095.  EMPLOYABILITY NEEDS ASSESSMENT.
 14-6          (b)  The section heading to Section 31.010, Human Resources
 14-7    Code, is amended to read as follows:
 14-8          Sec. 31.010.  SUPPORT SERVICES RELATED TO EMPLOYABILITY OF A
 14-9    RECIPIENT.
14-10          (c)  Subchapter A, Chapter 31, Human Resources Code, is
14-11    amended by adding Section 31.011 to read as follows:
14-12          Sec. 31.011.  PERSONAL AND FAMILIAL NEEDS ASSESSMENT AND
14-13    SUPPORT SERVICES.  (a)  The department shall assist a recipient of
14-14    financial assistance in assessing the skills of the recipient and
14-15    the needs, other than employability needs assessed under Section
14-16    31.0095, of the recipient and the recipient's family that, if
14-17    addressed, would help the recipient and the recipient's family to
14-18    attain and retain the capability of independence and self-care.
14-19          (b)  Based on the needs assessment under this section, the
14-20    department shall refer the recipient and the recipient's family to
14-21    appropriate preventive and support services provided by the
14-22    department or any other public or private entity.  Preventive and
14-23    support services to which the department may refer a recipient and
14-24    a recipient's family under this section include:
14-25                (1)  substance abuse treatment programs;
14-26                (2)  domestic violence services;
14-27                (3)  child abuse awareness and prevention services;
 15-1                (4)  health care and nutrition programs;
 15-2                (5)  parenting skills training;
 15-3                (6)  life skills training;
 15-4                (7)  criminal and juvenile justice intervention
 15-5    programs;
 15-6                (8)  at-risk children and youth programs; and
 15-7                (9)  child support enforcement services.
 15-8          SECTION 4.02.  HOUSING ASSISTANCE.  Subchapter A, Chapter 31,
 15-9    Human Resources Code, is amended by adding Section 31.015 to read
15-10    as follows:
15-11          Sec. 31.015.  HOUSING ASSISTANCE.  (a)  The department shall
15-12    establish a housing assistance program under which certain
15-13    recipients of financial assistance may receive additional money for
15-14    housing costs.
15-15          (b)  The department by rule shall determine the requirements
15-16    for eligibility for assistance under this section.  The department
15-17    may limit eligibility to categories of recipients specified by the
15-18    department.  The rules must:
15-19                (1)  provide that a recipient who is receiving federal
15-20    housing assistance may not receive assistance under this section;
15-21    and
15-22                (2)  require a recipient to demonstrate a need for
15-23    assistance with housing costs.
15-24          (c)  The department shall determine the amount of assistance
15-25    provided under this section, based on the amount of funds
15-26    appropriated for that purpose.  The department may not provide
15-27    assistance under this section for more than one year.
 16-1          (d)  The department may also provide housing assistance under
 16-2    this section as a transitional benefit to a former recipient of
 16-3    financial assistance.  Assistance provided under this subsection is
 16-4    subject to the requirements imposed by Subsections (b) and (c).
 16-5          SECTION 4.03.  LOCAL TRANSPORTATION SERVICES.  Subchapter A,
 16-6    Chapter 31, Human Resources Code, is amended by adding Section
 16-7    31.016 to read as follows:
 16-8          Sec. 31.016.  GRANTS FOR TRANSPORTATION SERVICES.  (a)  The
 16-9    Texas Workforce Commission shall establish and administer a
16-10    competitive grant program under which local governmental entities
16-11    and nonprofit organizations may receive money for innovative local
16-12    transportation programs that enable recipients of financial
16-13    assistance to attain and retain employment.
16-14          (b)  The commission shall adopt rules necessary to implement
16-15    this section.  The rules must provide for:
16-16                (1)  eligibility criteria;
16-17                (2)  application procedures; and
16-18                (3)  requirements designed to ensure that grants
16-19    benefit recipients of financial assistance.
16-20          (c)  The commission shall fund grants made under this section
16-21    in a manner that permits the money provided to a grant recipient to
16-22    qualify as local matching funds for appropriate federal
16-23    transportation programs.
16-24                         ARTICLE 5.  CHILD SUPPORT
16-25          SECTION 5.01.  INCENTIVE PROGRAM.  Section 31.0315, Human
16-26    Resources Code, is amended by adding Subsection (g) to read as
16-27    follows:
 17-1          (g)  The department, in cooperation with the Title IV-D
 17-2    agency, shall by rule develop an incentive program designed to
 17-3    encourage an applicant or an applicant's relatives to cooperate
 17-4    with the requirements of this section.  The program may include
 17-5    incentives in the form of:
 17-6                (1)  a one-time financial bonus in addition to the
 17-7    amount of financial assistance granted to the applicant under
 17-8    Section 31.003; or
 17-9                (2)  an increase in the amount of financial assistance
17-10    granted to the applicant under Section 31.003.
17-11          SECTION 5.02.  OBLIGOR EMPLOYMENT ASSISTANCE.  (a)  Section
17-12    231.115, Family Code, as added by Chapter 165, Acts of the 75th
17-13    Legislature, Regular Session, 1997, is amended to read as follows:
17-14          Sec. 231.115.  UNEMPLOYED AND UNDEREMPLOYED OBLIGORS
17-15    [NONCUSTODIAL PARENTS].  (a)  The Title IV-D agency shall refer to
17-16    appropriate state and local entities that provide employment
17-17    services [assist unemployed noncustodial parents in gaining
17-18    employment] any unemployed  or underemployed obligor [noncustodial
17-19    parent] who is in arrears in court-ordered child support payments
17-20    [to a child who:]
17-21                [(1)  receives financial assistance under Chapter 31,
17-22    Human Resources Code; or]
17-23                [(2)  is otherwise eligible to receive financial
17-24    assistance under Chapter 31, Human Resources Code, and for whom the
17-25    Department of Protective and Regulatory Services is providing
17-26    substitute care].
17-27          (b)  A referral under Subsection (a) may include:
 18-1                (1)  skills training and job placement through:
 18-2                      (A)  the Texas Workforce Commission; or
 18-3                      (B)  the agency responsible for the food stamp
 18-4    employment and training program (7 U.S.C. Section 2015(d));
 18-5                (2)  referrals to education and literacy classes; and
 18-6                (3)  counseling regarding:
 18-7                      (A)  substance abuse;
 18-8                      (B)  parenting skills;
 18-9                      (C)  life skills; and
18-10                      (D)  mediation techniques.
18-11          (c)  The Title IV-D agency may require an unemployed or
18-12    underemployed obligor [noncustodial parent] to complete the
18-13    training, classes, or counseling the obligor [parent] is referred
18-14    to under this section.  The agency shall suspend under Chapter 232
18-15    the license of an obligor [a parent] who fails to comply with the
18-16    requirements of this subsection.
18-17          (b)  Subchapter A, Chapter 302, Labor Code, is amended by
18-18    adding Section 302.0035 to read as follows:
18-19          Sec. 302.0035.  EMPLOYMENT ASSISTANCE PROGRAM FOR CERTAIN
18-20    PARENTS.  The division shall provide employment assistance
18-21    services, including  skills training, job placement, and
18-22    employment-related services, to a person referred by the Title IV-D
18-23    agency under Chapter 231, Family Code.
18-24          SECTION 5.03.  DISTRIBUTION OF CHILD SUPPORT PAYMENTS.  (a)
18-25    Subchapter B, Chapter 231, Family Code, is amended by adding
18-26    Section 231.118 to read as follows:
18-27          Sec. 231.118.  DISTRIBUTION OF CERTAIN CHILD SUPPORT
 19-1    PAYMENTS.  (a)  When the Title IV-D agency receives a child support
 19-2    payment on  behalf of a child whose support rights have been
 19-3    assigned to the agency under Section 231.104, the agency shall
 19-4    distribute the amount collected in accordance with federal law.
 19-5          (b)  To the extent authorized by federal law, the agency
 19-6    shall send each month to a person who is receiving financial
 19-7    assistance under Chapter 31, Human Resources Code, on behalf of a
 19-8    child described by Subsection (a) a payment in an amount equal to
 19-9    the lesser of:
19-10                (1)  $100; or
19-11                (2)  the state's share of the total amount of child
19-12    support the agency received on the child's behalf during the month.
19-13          (c)  In this section, "state share" has the meaning assigned
19-14    by 42 U.S.C.  Section 657(c).
19-15          (b)  Subchapter A, Chapter 31, Human Resources Code, is
19-16    amended by adding Section  31.0041 to read as follows:
19-17          Sec. 31.0041.  CHILD SUPPORT DISTRIBUTION.  The department
19-18    may not consider the amount received under Section 231.118, Family
19-19    Code, by a recipient of financial assistance for purposes of
19-20    determining:
19-21                (1)  the amount of financial assistance granted to an
19-22    individual under this chapter for the support of dependent
19-23    children; or
19-24                (2)  whether the family meets household income and
19-25    resource requirements for financial assistance under this chapter.
19-26          (c)  The change in law made by Section 231.118(b), Family
19-27    Code, as added by this section, applies only to a person who
 20-1    receives financial assistance under Chapter 31, Human Resources
 20-2    Code, on or after the effective date of this section, regardless of
 20-3    the date on which eligibility for that assistance was determined.
 20-4                     ARTICLE 6.  LEGISLATIVE OVERSIGHT
 20-5          SECTION 6.01.  LEGISLATIVE OVERSIGHT.  Chapter 31, Human
 20-6    Resources Code, is amended by adding Subchapter E to read as
 20-7    follows:
 20-8                   SUBCHAPTER E.  LEGISLATIVE OVERSIGHT
 20-9          Sec. 31.081.  DEFINITION.  In this subchapter, "committee"
20-10    means the welfare reform legislative oversight committee.
20-11          Sec. 31.082.  COMPOSITION OF COMMITTEE; PRESIDING OFFICER.
20-12    (a)  The committee is composed of:
20-13                (1)  two members of the senate and one public member
20-14    appointed by the lieutenant governor; and
20-15                (2)  two members of the house of representatives and
20-16    one public member appointed by the speaker of the house of
20-17    representatives.
20-18          (b)  A member of the committee serves at the will of the
20-19    appointing official.
20-20          (c)  The lieutenant governor and the speaker of the house of
20-21    representatives, on an alternating basis, shall designate the
20-22    presiding officer of the committee from the membership of the
20-23    committee.  The presiding officer serves in that capacity for a
20-24    two-year period expiring February 1 of each odd-numbered year.
20-25          Sec. 31.083.  COMMITTEE POWERS AND DUTIES.  (a)  The
20-26    committee shall:
20-27                (1)  meet at the call of the presiding officer;
 21-1                (2)  oversee the implementation of legislation relating
 21-2    to welfare reform enacted by the 76th Legislature and future
 21-3    legislatures;
 21-4                (3)  study the effect of federal and state welfare
 21-5    reform changes on child care for recipients of financial
 21-6    assistance;
 21-7                (4)  monitor the welfare reform waiver submitted by the
 21-8    state under the Personal Responsibility and Work Opportunity
 21-9    Reconciliation Act of 1996 and the waiver transition for compliance
21-10    with federal law;
21-11                (5)  monitor the employment trends for former
21-12    recipients of financial assistance;
21-13                (6)  study the effectiveness of incentives,
21-14    transitional benefits, and support services on the prevention of
21-15    recidivism by recipients of financial assistance;
21-16                (7)  study the effectiveness of sanctions and penalties
21-17    imposed against recipients of financial assistance in achieving
21-18    state goals relating to public assistance;
21-19                (8)  study the hiring practices of the public and
21-20    private sectors regarding recipients of financial assistance;
21-21                (9)  study the effectiveness of job training and
21-22    education programs conducted by local workforce development boards
21-23    for recipients of financial assistance;
21-24                (10)  study the effectiveness of the management
21-25    information systems of the department regarding eligibility
21-26    determination and of the Texas Workforce Commission regarding the
21-27    provision of recipient work participation information; and
 22-1                (11)  study the dissemination to local workforce
 22-2    development boards of information regarding eligibility
 22-3    determination from the department and regarding recipient work
 22-4    participation from the Texas Workforce Commission.
 22-5          (b)  The committee may request reports and other information
 22-6    from the department, the Texas Workforce Commission, and other
 22-7    state agencies as necessary to carry out its duties under this
 22-8    section.
 22-9          (c)  The committee shall use the existing staff resources of
22-10    the senate and the house of representatives to assist the committee
22-11    in performing its duties under this section.
22-12          Sec. 31.084.  REPORT.  Not later than November 15 of each
22-13    even-numbered year, the committee shall report to the governor,
22-14    lieutenant governor, and speaker of the house of representatives on
22-15    the results of the committee's activities under Section 31.083.
22-16    The report must include recommendations for legislative action.
22-17                   ARTICLE 7.  MISCELLANEOUS PROVISIONS
22-18          SECTION 7.01.  DETERMINATION OF AMOUNT OF FINANCIAL
22-19    ASSISTANCE.  Section 31.003(a), Human Resources Code, is amended to
22-20    read as follows:
22-21          (a)  The department shall adopt rules governing the
22-22    determination of the amount of financial assistance to be granted
22-23    for the support of a dependent child.  The amount of financial
22-24    assistance granted under this section must be based on federal
22-25    poverty guidelines.  The amount granted, when combined with the
22-26    income and other resources available for the child's support, must
22-27    be sufficient to provide the child with a subsistence compatible
 23-1    with decency and health.
 23-2          SECTION 7.02.  ENTITLEMENT TO FINANCIAL ASSISTANCE FROM DATE
 23-3    OF APPLICATION.  Section 31.032(b), Human Resources Code, is
 23-4    amended to read as follows:
 23-5          (b)  After completing its investigation, the department shall
 23-6    determine whether the applicant is eligible for the assistance, the
 23-7    type and amount of assistance, [the date on which the assistance
 23-8    shall begin,] and the manner in which payments shall be made.  An
 23-9    applicant determined to be eligible for assistance is entitled to
23-10    assistance beginning on the date on which the applicant applied for
23-11    assistance.
23-12          SECTION 7.03.  INCOME AND RESOURCE REQUIREMENTS APPLICABLE TO
23-13    MEDICAL ASSISTANCE PROGRAM.  Subchapter B, Chapter 32, Human
23-14    Resources Code, is amended by adding Section 32.0242 to read as
23-15    follows:
23-16          Sec. 32.0242.  INCOME AND RESOURCE REQUIREMENTS FOR CERTAIN
23-17    RECIPIENTS.  To the extent authorized by federal law, the
23-18    department shall determine whether a family meets household income
23-19    and resource requirements for medical assistance under 42 U.S.C.
23-20    Section 1396u-1 in the same manner as the department makes
23-21    household income and resource requirement determinations for
23-22    financial assistance under Chapter 31.  If the method of
23-23    determining household income and resource requirements under
23-24    Chapter 31 changes, the change also applies to those requirements
23-25    for purposes of determining whether a family is eligible for
23-26    medical assistance described by this section.
23-27          SECTION 7.04.  AUTOMATIC REVIEW OF CHILDREN'S ELIGIBILITY FOR
 24-1    MEDICAL ASSISTANCE.  Subchapter B, Chapter 32, Human Resources
 24-2    Code, is amended by adding Section 32.0251 to read as follows:
 24-3          Sec. 32.0251.  ELIGIBILITY REVIEW FOR CERTAIN CHILDREN.  (a)
 24-4    The department shall establish and implement procedures under which
 24-5    the department automatically reviews a child's eligibility for
 24-6    medical assistance if:
 24-7                (1)  the child originally establishes eligibility  for
 24-8    medical assistance on the basis of receipt of financial assistance
 24-9    under Chapter 31, as provided by Section 32.025(a); and
24-10                (2)  that receipt of financial assistance under Chapter
24-11    31 ceases.
24-12          (b)  The department shall ensure that the child continues  to
24-13    receive medical assistance without a gap in eligibility if the
24-14    review required by this section indicates that the child is
24-15    eligible for medical assistance on another basis.
24-16          SECTION 7.05.  LEASE AND SUBLEASE OF OFFICE SPACE.
24-17    Subchapter B, Chapter 531, Government Code, is amended by adding
24-18    Section 531.051 to read as follows:
24-19          Sec. 531.051.  LEASES AND SUBLEASES OF CERTAIN OFFICE SPACE.
24-20    (a)  A health and human services agency, with the approval of the
24-21    commission, or the Texas Workforce Commission or any other state
24-22    agency that administers employment services programs, may lease or
24-23    sublease office space to or from a private service provider that
24-24    contracts with the agency to enable agency eligibility and
24-25    enrollment personnel to work with the provider if:
24-26                (1)  client access would be enhanced; and
24-27                (2)  the co-location of offices would improve the
 25-1    efficiency of the administration and delivery of services.
 25-2          (b)  Subchapters D and E, Chapter 2165, do not apply to a
 25-3    state agency that leases or subleases office space to a private
 25-4    service provider under this section.
 25-5          (c)  Subchapter B, Chapter 2167, does not apply to a state
 25-6    agency that leases or subleases office space from a private service
 25-7    provider under this section.
 25-8          (d)  A state agency is delegated the authority to enter into
 25-9    a lease or sublease under this section and may negotiate the terms
25-10    of the lease or sublease.
25-11          (e)  To the extent authorized by federal law, a state agency
25-12    may share business resources with a private service provider that
25-13    enters into a lease or sublease agreement with the agency under
25-14    this section.
25-15          SECTION 7.06.  COLOCATION OF OFFICES OR FACILITIES.  (a)  The
25-16    office of the attorney general, in conjunction with the Texas
25-17    Department of Human Services, may develop and implement a plan to
25-18    colocate offices or facilities located in the same geographic
25-19    region to enable child support enforcement officers to work with
25-20    department eligibility personnel for purposes of improving the
25-21    efficiency of the child support collection process in cases
25-22    involving children who receive financial assistance under Chapter
25-23    31, Human Resources Code.
25-24          (b)  If the office of the attorney general and the Texas
25-25    Department of Human Services develop a plan under this section, the
25-26    attorney general shall send a copy of the plan to the governor, the
25-27    lieutenant governor, and the speaker of the house of
 26-1    representatives not later than the 60th day after the date the plan
 26-2    is completed.
 26-3              ARTICLE 8.  WAIVERS; EFFECTIVE DATE; EMERGENCY
 26-4          SECTION 8.01.  WAIVERS.  If before implementing any provision
 26-5    of this Act a state agency determines that a waiver or
 26-6    authorization from a federal agency is necessary for
 26-7    implementation, the state agency shall request the waiver or
 26-8    authorization and may delay implementing that provision until the
 26-9    waiver or authorization is granted.
26-10          SECTION 8.02.  EFFECTIVE DATE.  This Act takes effect
26-11    September 1, 1999.
26-12          SECTION 8.03.  EMERGENCY.  The importance of this legislation
26-13    and the crowded condition of the calendars in both houses create an
26-14    emergency and an imperative public necessity that the
26-15    constitutional rule requiring bills to be read on three several
26-16    days in each house be suspended, and this rule is hereby suspended.