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                                  * * * * *