1-1 By: McClendon, Naishtat (Senate Sponsor - Gallegos) H.B. No. 43 1-2 (In the Senate - Received from the House May 9, 2001; 1-3 May 10, 2001, read first time and referred to Committee on Health 1-4 and Human Services; May 11, 2001, reported favorably by the 1-5 following vote: Yeas 5, Nays 2; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the consideration of income earned by certain 1-9 recipients of Temporary Assistance for Needy Families benefits for 1-10 eligibility determination purposes. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter A, Chapter 31, Human Resources Code, is 1-13 amended by adding Section 31.0038 to read as follows: 1-14 Sec. 31.0038. EARNED INCOME DISREGARDS FOR EMPLOYMENT. (a) 1-15 The purpose of the earned income disregards benefit is to assist a 1-16 recipient of financial assistance in making a successful transition 1-17 from the receipt of financial assistance to employment and 1-18 self-sufficiency. 1-19 (b) In this section, "former recipient of the earned income 1-20 disregards benefit" means a recipient of financial assistance whose 1-21 earned income has previously been disregarded by the department 1-22 under this section. 1-23 (c) If a recipient of financial assistance becomes employed 1-24 while receiving the assistance, the department may not consider 90 1-25 percent of any earned income received by the recipient up to the 1-26 first six months in which income from employment is received for 1-27 purposes of determining: 1-28 (1) the amount of financial assistance granted to an 1-29 individual for the support of dependent children; or 1-30 (2) whether the family meets household income and 1-31 resource requirements for financial assistance. 1-32 (d) The department may not disregard under Subsection (c) 1-33 the earned income of a recipient who left a position of employment 1-34 voluntarily without good cause while receiving financial assistance 1-35 or during a specified period, to be determined by department rule, 1-36 that immediately precedes the date on which the recipient obtained 1-37 new employment. 1-38 (e) The department may not disregard under Subsection (c) 1-39 the earned income of a former recipient of the earned income 1-40 disregards benefit until the first anniversary of the day after the 1-41 last date on which the former recipient's earned income was 1-42 disregarded under that subsection. 1-43 (f) During the period the earned income of a recipient is 1-44 disregarded by the department under Subsection (c), the department 1-45 may not exempt the recipient from participating in a work or 1-46 employment activity under Section 31.012. 1-47 (g) In adopting rules under this section, the department 1-48 shall: 1-49 (1) ensure that this section applies only to 1-50 recipients who have income in an amount that does not exceed the 1-51 maximum gross income limit set by the department under Section 1-52 31.003; and 1-53 (2) promote the purpose described by Subsection (a). 1-54 SECTION 2. Section 31.043, Human Resources Code, is repealed. 1-55 SECTION 3. If before implementing any provision of this Act a 1-56 state agency determines that a waiver or other authorization from a 1-57 federal agency is necessary for implementation, the Texas 1-58 Department of Human Services shall request the waiver or 1-59 authorization and may delay implementing that provision until the 1-60 waiver or authorization is granted. 1-61 SECTION 4. The change in law made by Section 31.0038, Human 1-62 Resources Code, as added by this Act, applies only to a person who 1-63 receives financial assistance under Chapter 31, Human Resources 1-64 Code, on or after the effective date of this Act, regardless of the 2-1 date on which eligibility for the financial assistance was 2-2 determined. 2-3 SECTION 5. This Act takes effect September 1, 2001. 2-4 * * * * *