By Wohlgemuth                                         H.B. No. 2631
         77R7755 KLA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the operation of the financial assistance program.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 31.0031(c), Human Resources Code, is
 1-5     amended to read as follows:
 1-6           (c)  Subject to the requirements of Sections 31.00321,
 1-7     31.00322, and 31.00323, the [The] department shall adopt rules
 1-8     governing sanctions and 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
1-13     each applicable requirement of the responsibility agreement.
1-14           SECTION 2.  Sections 31.0032(a) and (c), Human Resources
1-15     Code, are amended to read as follows:
1-16           (a)  Except as provided by Section 231.115, Family Code, and
1-17     Section 31.00331 [as added by Chapter 911, Acts of the 75th
1-18     Legislature, Regular Session, 1997], if after an investigation the
1-19     department or the Title IV-D agency determines that a person is not
1-20     complying with a requirement of the responsibility agreement
1-21     required under Section 31.0031, the department immediately shall
1-22     apply appropriate sanctions or penalties regarding the assistance
1-23     provided to or for that person and the person's family under this
1-24     chapter.
 2-1           (c)  This section does not prohibit the department from
 2-2     providing medical assistance, child care, or any other social or
 2-3     support services for a person who or a family that is [an
 2-4     individual] subject to sanctions or penalties under this chapter.
 2-5           SECTION 3.  Subchapter A, Chapter 31, Human Resources Code,
 2-6     is amended by adding Sections 31.00321, 31.00322, and 31.00323 to
 2-7     read as follows:
 2-8           Sec. 31.00321.  PENALTIES AND SANCTIONS FOR NONCOMPLIANCE
 2-9     WITH CERTAIN 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, other than a requirement of the responsibility
2-14     agreement under Section 31.0031(d)(1).
2-15           (b)  On a person's first failure or refusal to comply with a
2-16     requirement of the responsibility agreement to which this section
2-17     applies, the department shall reduce the amount of financial
2-18     assistance provided to or for each adult person in the family who
2-19     is not in compliance for a period of two months or until each adult
2-20     member of the family complies, whichever is later.
2-21           (c)  On a person's second failure or refusal to comply with a
2-22     requirement of the responsibility agreement to which this section
2-23     applies, the department shall, subject to the requirements of
2-24     Section 31.00331, terminate the total amount of financial
2-25     assistance provided to or for the person and the person's family.
2-26           (d)  If the department terminates the total amount of
2-27     financial assistance provided to or for a person and the person's
 3-1     family under Subsection (c), the person and the person's family are
 3-2     ineligible for subsequent financial assistance for a period of six
 3-3     months from the date the department terminated the previous
 3-4     financial assistance.
 3-5           Sec. 31.00322.  PENALTIES AND SANCTIONS FOR NONCOMPLIANCE
 3-6     WITH CHILD SUPPORT ENFORCEMENT REQUIREMENTS.  (a)  This section
 3-7     applies only to the application of sanctions or penalties to a
 3-8     person who, without good cause as determined under Section 31.0033,
 3-9     fails or refuses to comply with a requirement of the responsibility
3-10     agreement under Section 31.0031(d)(1).
3-11           (b)  On a person's first failure or refusal to comply with a
3-12     requirement of the responsibility agreement under Section
3-13     31.0031(d)(1), the department shall, on the recommendation of the
3-14     Title IV-D agency and subject to the requirements of Section
3-15     31.00331, terminate the total amount of financial assistance
3-16     provided to or for the person and the person's family.
3-17           Sec. 31.00323.  INELIGIBILITY RESULTING FROM DRUG-RELATED
3-18     FELONY CONVICTIONS.  (a)  Except as provided by Subsection (c), a
3-19     person is permanently ineligible for financial assistance if the
3-20     person:
3-21                 (1)  is convicted of an offense under federal law or
3-22     the law of this state or any other state that, at the time of the
3-23     conviction, is classified as a felony by the jurisdiction involved
3-24     and has as an element the possession, use, manufacture, or
3-25     distribution of a controlled substance, as defined in 21 U.S.C.
3-26     Section 802, as amended; and
3-27                 (2)  committed the offense for which the person is
 4-1     convicted while the person was receiving financial assistance.
 4-2           (b)  The department shall require a recipient of financial
 4-3     assistance to notify the department if the recipient is or has been
 4-4     convicted of an offense described by Subsection (a).
 4-5           (c)  A person convicted of an offense described by Subsection
 4-6     (a) who has not previously been convicted of an offense described
 4-7     by that subsection is not ineligible for financial assistance if
 4-8     the person:
 4-9                 (1)  has completed any sentence of confinement or
4-10     imprisonment imposed by the court in connection with the
4-11     conviction;
4-12                 (2)  is in compliance with the terms and conditions of
4-13     any parole or community supervision; and
4-14                 (3)  has completed or is participating in a drug
4-15     rehabilitation, counseling, or support program.
4-16           (d)  The department shall adopt rules as necessary to
4-17     implement this section.
4-18           (e)  This section does not affect the eligibility for
4-19     financial assistance of any other member of the household of a
4-20     person ineligible as a result of a conviction of an offense
4-21     described by Subsection (a).
4-22           SECTION 4.  Section 31.0033(c), Human Resources Code, is
4-23     amended to read as follows:
4-24           (c)  If the department finds that good cause for
4-25     noncompliance was not shown at a hearing, the department shall
4-26     apply appropriate sanctions or penalties to or for that person or
4-27     that person and the person's family until the department, or the
 5-1     Title IV-D agency in a Title IV-D case, determines that the person
 5-2     is in compliance with the terms of the responsibility agreement.
 5-3           SECTION 5.  Subchapter A, Chapter 31, Human Resources Code,
 5-4     is amended by adding Sections 31.00331, 31.0038, 31.011, and
 5-5     31.0136 to read as follows:
 5-6           Sec. 31.00331.  CASE REVIEW FOLLOWING NONCOMPLIANCE WITH
 5-7     CERTAIN REQUIREMENTS.  (a)  On the imposition of sanctions or
 5-8     penalties under Section 31.00321(b), and before termination of all
 5-9     financial assistance for a person and the person's family under
5-10     Section 31.00321(c), the department shall conduct a case review to
5-11     determine:
5-12                 (1)  the reasons for the noncompliance of the person
5-13     or a member of the person's family with a requirement of the
5-14     responsibility agreement under Section 31.0031, other than the
5-15     requirement under Section 31.0031(d)(1); and
5-16                 (2)  support services that will enable the person or
5-17     the member of the person's family to comply with that requirement
5-18     or prevent future noncompliance.
5-19           (b)  A representative of the department shall conduct the
5-20     case review in person at the residence of the person or the
5-21     person's family member whose failure to comply with the requirement
5-22     of the responsibility agreement resulted in the imposition of
5-23     sanctions or penalties.
5-24           Sec. 31.0038.  EARNED INCOME DISREGARDS FOR EMPLOYMENT.  (a)
5-25     If an adult recipient of financial assistance who participates in
5-26     an employment activity described by Section 31.012(b) becomes
5-27     employed while receiving the assistance, the department may not
 6-1     consider during the recipient's first six months of employment any
 6-2     earned income received by the recipient that would otherwise
 6-3     disqualify the recipient from receiving the assistance for purposes
 6-4     of determining:
 6-5                 (1)  the amount of financial assistance granted to an
 6-6     individual for the support of dependent children; or
 6-7                 (2)  whether the family meets household income and
 6-8     resource requirements for financial assistance.
 6-9           (b)  In adopting rules under this section, the department
6-10     shall ensure that this section applies only to recipients who have
6-11     income in an amount that does not exceed the maximum gross income
6-12     limit set by the department under Section 31.003.
6-13           Sec.  31.011.  REQUIREMENTS FOR PARTICIPATION IN WORK OR
6-14     EMPLOYMENT ACTIVITIES.  (a)  Notwithstanding Section 31.0031(d)(3)
6-15     or (4), Section 31.012, or any other law, the department shall
6-16     require, to the maximum extent allowed by federal law, an adult
6-17     receiving financial assistance under this chapter during any
6-18     one-month period to work or participate in an employment activity
6-19     authorized under federal law.
6-20           (b)  The department shall modify the requirements of the
6-21     responsibility agreement under Section 31.0031 to comply with the
6-22     requirements of this section.
6-23           Sec. 31.0136.  SKILLS TRAINING AND OTHER REQUIREMENTS FOR
6-24     CERTAIN TEEN PARENTS.  (a)  In this section, "noncustodial parent"
6-25     means the parent of a child with whom the child does not primarily
6-26     reside, including a parent who has been appointed under a court
6-27     order as a joint managing or possessory conservator of the child.
 7-1           (b)  The department shall require a teen noncustodial parent
 7-2     of a child for whom financial assistance is granted to participate
 7-3     in:
 7-4                 (1)  parenting skills training;
 7-5                 (2)  money management classes; and
 7-6                 (3)  community service work.
 7-7           (c)  The department by rule shall determine activities that
 7-8     satisfy the requirements of this section.
 7-9           SECTION 6.  Section 31.014, Human Resources Code, is amended
7-10     by amending Subsection (a)  and adding Subsection (d) to read as
7-11     follows:
7-12           (a)  The department shall provide financial assistance, in
7-13     accordance with department rules, to a two-parent family if the
7-14     primary wage earner parent is registered in the job opportunities
7-15     and basic skills (JOBS) training program under Part F, Subchapter
7-16     IV, Social Security Act (42 U.S.C. Section 682), or is registered
7-17     with the Texas Workforce [Employment] Commission.
7-18           (d)  Notwithstanding any other law, the department shall
7-19     allow a two-parent family to satisfy the requirements for work or
7-20     employment activity participation under Section 31.011 through the
7-21     participation of the primary wage-earner in a work or employment
7-22     activity, or through the combined participation of both the primary
7-23     and secondary wage-earners in work or employment activities.
7-24           SECTION 7.  Section 31.032(d), Human Resources Code, is
7-25     amended to read as follows:
7-26           (d)  In determining whether an applicant is eligible for
7-27     assistance, the department shall exclude from the applicant's
 8-1     available resources:
 8-2                 (1)  $2,000 for the applicant's household or $3,000 if
 8-3     there is a person with a disability or a person who is at least 60
 8-4     years of age in the applicant's household; and
 8-5                 (2)  the fair market value of the applicant's ownership
 8-6     interest in a motor vehicle, but not more than the amount
 8-7     determined according to the following schedule:
 8-8                       (A)  if the vehicle will not be used by the
 8-9     applicant to satisfy work or employment activity participation
8-10     requirements under the financial assistance program:
8-11                             (i)  $10,000 of the applicant's ownership
8-12     interest in a primary vehicle; and
8-13                             (ii)  $5,000 of the applicant's ownership
8-14     interest in a secondary vehicle [$4,550 on or after September 1,
8-15     1995, but before October 1, 1995]; or
8-16                       (B)  if the vehicles will be used by the
8-17     applicant to satisfy work or employment activity participation
8-18     requirements under the financial assistance program, $18,000 of the
8-19     applicant's combined ownership interest in a primary and secondary
8-20     vehicle [$4,600 on or after October 1, 1995, but before October 1,
8-21     1996;]
8-22                       [(C)  $5,000 on or after October 1, 1996, but
8-23     before October 1, 1997; and]
8-24                       [(D)  $5,000 plus or minus an amount to be
8-25     determined annually beginning on October 1, 1997, to reflect
8-26     changes in the new car component of the Consumer Price Index for
8-27     All Urban Consumers published by the Bureau of Labor Statistics].
 9-1           SECTION 8.  Section 31.043(a), Human Resources Code, is
 9-2     amended to read as follows:
 9-3           (a)  To extend the period of supported employment for
 9-4     families who receive financial assistance under this chapter and
 9-5     except as provided by Section 31.0038, the department may use a
 9-6     form of fill-the-gap budgeting or another method under which the
 9-7     department disregards earnings of family members who obtain
 9-8     employment while receiving the assistance.
 9-9           SECTION 9.  Sections 31.00321, 31.00322, and 31.00323, Human
9-10     Resources Code, as added by this Act, apply to a person who
9-11     receives financial assistance under Chapter 31, Human Resources
9-12     Code, on or after the effective date of this Act, regardless of the
9-13     date on which eligibility for the financial assistance was
9-14     determined.
9-15           SECTION 10.  Not later than January 1, 2002, the Texas
9-16     Department of Human Services shall require a person who applied for
9-17     financial assistance under Chapter 31, Human Resources Code, before
9-18     September 1, 2001, to enter into a new responsibility agreement
9-19     that complies with the requirements of Section 31.011, Human
9-20     Resources Code, as added by this Act, to continue receiving that
9-21     assistance.  The department may not enforce the terms of the new
9-22     agreement until the recipient has an opportunity to enter into the
9-23     agreement.
9-24           SECTION 11.  If before implementing any provision of this Act
9-25     a state agency determines that a waiver or authorization from a
9-26     federal agency is necessary for implementation of that provision,
9-27     the agency affected by the provision shall request the waiver or
 10-1    authorization and may delay implementing that provision until the
 10-2    waiver or authorization is granted.
 10-3          SECTION 12.  This Act takes effect September 1, 2001.