SRC-CTC H.B. 43 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 43
77R8125 CLG-DBy: McClendon (Gallegos)
Health & Human Services
5/10/2001
Engrossed


DIGEST AND PURPOSE 

The Temporary Assistance for Needy Families (TANF) program is designed to
provide temporary cash assistance to poor single-parent and two-parent
families with children, as well as support services to transition
recipients into the workplace.   TANF grants are based upon need and
families that receive these grants may also receive food stamps and
Medicaid.  Currently, certain recipients of TANF benefits receive an earned
income disregard for employment.  The purpose of an earned income disregard
is to allow the families to transition gradually off cash assistance after
they have become employed.  Presently, the time limit for earned income
disregard is four months, after which assistance is terminated.  A longer
time limit will  ease the transition into the workplace and toward
self-sufficiency. H.B. 43 extends to six months the time limit for earned
income disregard for TANF program recipients.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Department of Human
Services in SECTION 1 (Section 31.0038, Human Resources Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 31A, Human Resources Code, by adding Section
31.0038, as follows: 

Sec. 31.0038.  EARNED INCOME DISREGARDS FOR EMPLOYMENT.  (a) Sets forth the
purpose of the earned income disregards benefit. 
 
  (b) Defines "former recipient of the earned income disregards benefit."

(c) Prohibits the Department of Human Services (department), if a recipient
of financial assistance becomes employed while receiving the assistance,
from considering 90 percent of any earned income received by the recipient
up to the first six months in which income from employment is received for
the purpose of making certain determinations. 

(d) Prohibits the department from disregarding under Subsection (c) the
earned income of a recipient who left a position of employment voluntarily
without good cause while receiving financial assistance or during a
specified period, to be determined by department rule, that immediately
precedes the date on which the recipient obtained new employment. 

(e) Prohibits the department from disregarding under Subsection (c) the
earned income of a former recipient of the earned income disregards benefit
until the first anniversary of the day after the last date on which the
former recipient's earned income was disregarded under that subsection. 

(f) Prohibits the department, during the period the earned income of a
recipient is  disregarded by the department under Subsection (c), from
exempting the recipient from participating in a work or employment activity
under Section 31.012. 

(g) Sets forth certain requirements for the department in adopting rules
under this section. 

SECTION 2.  Repealer: Section 31.043, Human Resources Code.

SECTION 3.  Requires the department, if a state agency determines before
implementing any provision of this Act that a waiver or other authorization
from a federal agency is necessary for implementation, to request the
waiver or authorization and authorizes a delay in implementing that
provision until the waiver or authorization is granted. 

SECTION 4.  Makes application of this Act prospective.

SECTION 5.  Effective date: September 1, 2001.