By McClendon                                            H.B. No. 43
         77R269 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the consideration of income earned by certain
 1-3     recipients of Temporary Assistance for Needy Families benefits for
 1-4     eligibility determination purposes.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter A, Chapter 31, Human Resources Code, is
 1-7     amended by adding Section 31.0038 to read as follows:
 1-8           Sec. 31.0038.  EARNED INCOME DISREGARDS FOR EMPLOYMENT. (a)
 1-9     The purpose of the earned income disregards benefit is to assist a
1-10     recipient of financial assistance in making a successful transition
1-11     from the receipt of financial assistance to employment and
1-12     self-sufficiency.
1-13           (b)  In this section, "former recipient of the earned income
1-14     disregards benefit" means a recipient of financial assistance whose
1-15     earned income has previously been disregarded by the department
1-16     under this section.
1-17           (c)  If a recipient of financial assistance becomes employed
1-18     while receiving the assistance, the department may not consider any
1-19     earned income in excess of $120 received by the recipient up to the
1-20     first six months in which income from employment is received for
1-21     purposes of determining:
1-22                 (1)  the amount of financial assistance granted to an
1-23     individual for the support of dependent children; or
1-24                 (2)  whether the family meets household income and
 2-1     resource requirements for financial assistance.
 2-2           (d)  The department may not disregard under Subsection (c)
 2-3     the earned income of a recipient who left a position of employment
 2-4     voluntarily without good cause while receiving financial assistance
 2-5     or during a specified period, to be determined by department rule,
 2-6     that immediately precedes the date on which the recipient obtained
 2-7     new employment.
 2-8           (e)  The department may not disregard under Subsection (c)
 2-9     the earned income of a former recipient of the earned income
2-10     disregards benefit until the first anniversary of the day after the
2-11     last date on which the former recipient's earned income was
2-12     disregarded under that subsection.
2-13           (f)  During the period the earned income of a recipient is
2-14     disregarded by the department under Subsection (c), the department
2-15     may not exempt the recipient from participating in a work or
2-16     employment activity under Section 31.012.
2-17           (g)  In adopting rules under this section, the department
2-18     shall:
2-19                 (1)  ensure that this section applies only to
2-20     recipients who have income in an amount that does not exceed the
2-21     maximum gross income limit set by the department under Section
2-22     31.003; and
2-23                 (2)  promote the purpose described by Subsection (a).
2-24           SECTION 2. Section 31.043, Human Resources Code, is repealed.
2-25           SECTION 3. If before implementing any provision of this Act a
2-26     state agency determines that a waiver or other authorization from a
2-27     federal agency is necessary for implementation, the Texas
 3-1     Department of Human Services shall request the waiver or
 3-2     authorization and may delay implementing that provision until the
 3-3     waiver or authorization is granted.
 3-4           SECTION 4. The change in law made by Section 31.0038, Human
 3-5     Resources Code, as added by this Act, applies only to a person who
 3-6     receives financial assistance under Chapter 31, Human Resources
 3-7     Code, on or after the effective date of this Act, regardless of the
 3-8     date on which eligibility for the financial assistance was
 3-9     determined.
3-10           SECTION 5. This Act takes effect September 1, 2001.