By Keffer                                              H.B. No. 165
         77R1342 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to eligibility for Temporary Assistance for Needy Families
 1-3     benefits.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 31.0031(c), Human Resources Code, is
 1-6     amended to read as follows:
 1-7           (c)  The department shall adopt rules governing sanctions and
 1-8     penalties under this section to or for:
 1-9                 (1)  a person who fails to comply with each applicable
1-10     requirement of the responsibility agreement prescribed by this
1-11     section; and
1-12                 (2)  the family of a person who fails to comply with a
1-13     requirement of the responsibility agreement under Subsection
1-14     (d)(4).
1-15           SECTION 2. Sections 31.0032(a) and (c), Human Resources Code,
1-16     are amended to read as follows:
1-17           (a)  Except as provided by Section 231.115, Family Code, as
1-18     added by Chapter 911, Acts of the 75th Legislature, Regular
1-19     Session, 1997, if after an investigation the department or the
1-20     Title IV-D agency determines that a person is not complying with a
1-21     requirement of the responsibility agreement required under Section
1-22     31.0031, the department immediately shall apply appropriate
1-23     sanctions or penalties regarding the assistance provided to or for
1-24     that person or that person and the person's family under this
 2-1     chapter.
 2-2           (c)  This section does not prohibit the department from
 2-3     providing medical assistance, child care, or any other social or
 2-4     support services for a person who or a family that is [an
 2-5     individual] subject to sanctions or penalties under this chapter.
 2-6           SECTION 3. Subchapter A, Chapter 31, Human Resources Code, is
 2-7     amended by adding Section 31.00321 to read as follows:
 2-8           Sec. 31.00321.  PENALTIES AND SANCTIONS FOR NONCOMPLIANCE
 2-9     WITH WORK REQUIREMENTS. (a)  This section applies only to the
2-10     application of sanctions or penalties to a person who, without good
2-11     cause as determined under Section 31.0033, fails or refuses to
2-12     comply with a requirement of the responsibility agreement under
2-13     Section 31.0031(d)(4).
2-14           (b)  On a person's first failure or refusal to comply with a
2-15     requirement of the responsibility agreement under Section
2-16     31.0031(d)(4), the department shall reduce the amount of financial
2-17     assistance provided to or for each adult member of the family who
2-18     is not in compliance for a period of one month or until each adult
2-19     member of the family complies, whichever is later.  If each adult
2-20     member of the family has not complied with the requirement under
2-21     Section 31.0031(d)(4) after three months, the department shall
2-22     terminate the total amount of financial assistance provided to or
2-23     for the person and the person's family.  A family may reapply for
2-24     financial assistance one month after the date on which the family's
2-25     assistance is terminated under this subsection.
2-26           (c)  On a person's second failure or refusal to comply with a
2-27     requirement of the responsibility agreement under Section
 3-1     31.0031(d)(4), the department shall reduce the amount of financial
 3-2     assistance provided to or for each adult member of the family who
 3-3     is not in compliance for a period of two months or until each adult
 3-4     member of the family complies, whichever is later.  If each adult
 3-5     member of the family has not complied with the requirement under
 3-6     Section 31.0031(d)(4) after three months, the department shall
 3-7     terminate the total amount of financial assistance provided to or
 3-8     for the person and the person's family.  A family may reapply for
 3-9     financial assistance two months after the date on which the
3-10     family's assistance is terminated under this subsection.
3-11           (d)  On a person's third or subsequent failure or refusal to
3-12     comply with a requirement of the responsibility agreement under
3-13     Section 31.0031(d)(4), the department shall terminate the total
3-14     amount of financial assistance provided to or for the person and
3-15     the person's family.  A family may reapply for financial assistance
3-16     six months after the date on which the family's assistance is
3-17     terminated under this subsection.
3-18           SECTION 4. Section 31.0033(c), Human Resources Code, is
3-19     amended to read as follows:
3-20           (c)  If the department finds that good cause for
3-21     noncompliance was not shown at a hearing, the department shall
3-22     apply appropriate sanctions or penalties to or for that person or
3-23     that person and the person's family until, except as otherwise
3-24     provided by Section 31.00321, the department, or the Title IV-D
3-25     agency in a Title IV-D case, determines that the person is in
3-26     compliance with the terms of the responsibility agreement.
3-27           SECTION 5. Subchapter A, Chapter 31, Human Resources Code, is
 4-1     amended by adding Section 31.00331 to read as follows:
 4-2           Sec. 31.00331.  CASE REVIEW ON NONCOMPLIANCE WITH WORK
 4-3     REQUIREMENTS WITHOUT GOOD CAUSE. (a)  Not later than the fifth day
 4-4     after the date on which the department reduces the amount of
 4-5     financial assistance provided to or for an adult member of the
 4-6     family under Section 31.00321(b) or (c), the department, the Texas
 4-7     Workforce Commission, or a local workforce development board, as
 4-8     appropriate, shall conduct a case review to:
 4-9                 (1)  determine the reasons for the noncompliance of the
4-10     person with a requirement of the responsibility agreement under
4-11     Section 31.0031(d)(4);
4-12                 (2)  identify any barriers or other factors that
4-13     contributed to the person's inability to comply with that
4-14     requirement; and
4-15                 (3)  determine appropriate preventive and support
4-16     services to address and remove any barriers to compliance
4-17     encountered by the person.
4-18           (b)  Based on the case review conducted under this section,
4-19     the department, Texas Workforce Commission, or local workforce
4-20     development board, as appropriate, shall refer the person and the
4-21     person's family to appropriate preventive and support services
4-22     provided by local community-based organizations, including
4-23     faith-based organizations.  The department shall provide preventive
4-24     and support services under this section if a community-based
4-25     organization is not available to provide those services.
4-26           (c)  Preventive and support services to which an agency or
4-27     board may refer a person and the person's family under this section
 5-1     may include family counseling and mentoring.
 5-2           SECTION 6. Subchapter A, Chapter 31, Human Resources Code, is
 5-3     amended by adding Section 31.0038 to read as follows:
 5-4           Sec. 31.0038.  EARNED INCOME DISREGARDS FOR EMPLOYMENT. (a)
 5-5     If an adult recipient of financial assistance becomes employed
 5-6     while receiving the assistance, the department may not consider a
 5-7     significant portion of any earned income received by the recipient
 5-8     during the first six months of employment for purposes of
 5-9     determining:
5-10                 (1)  the amount of financial assistance granted to an
5-11     individual for the support of dependent children; or
5-12                 (2)  whether the family meets household income and
5-13     resource requirements for financial assistance.
5-14           (b)  In adopting rules under this section, the department
5-15     shall:
5-16                 (1)  prescribe the portion of a recipient's income, not
5-17     to exceed 90 percent, that the department may not consider;
5-18                 (2)  ensure that this section applies only to
5-19     recipients who earn income in an amount that does not exceed the
5-20     maximum gross income limit set by the department under Section
5-21     31.003; and
5-22                 (3)  consider in determining the amount to be
5-23     disregarded under Subsection (a) the total amount the department
5-24     estimates to be available to provide financial assistance to
5-25     eligible recipients.
5-26           SECTION 7. If before implementing any provision of this Act a
5-27     state agency determines that a waiver or other  authorization from
 6-1     a federal agency is necessary for implementation, the department
 6-2     shall request the waiver or authorization and may delay
 6-3     implementing that provision until the waiver or authorization is
 6-4     granted.
 6-5           SECTION 8. The change in law made by Section 31.0038, Human
 6-6     Resources Code, as added by this Act, applies only to a person who
 6-7     receives financial assistance under Chapter 31, Human Resources
 6-8     Code, on or after the effective date of this Act, regardless of the
 6-9     date on which eligibility for the financial assistance was
6-10     determined.
6-11           SECTION 9.  This Act takes effect September 1, 2001.