LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 4, 2001
  
  
          TO:  Honorable Mike Moncrief, Chair, Senate Committee on
               Health & Human Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1006  by Naishtat (Relating to exemptions and
               exceptions from work or employment activity requirements
               under the temporary assistance for needy families
               program.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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This bill would continue exemptions from work requirements that are
similar to current exemptions under the state's welfare reform waiver,
which expires at the end of February 2002.  It would also establish
similar criteria for good cause noncompliance.  Federal law does not
recognize these exemptions in calculating the states' work participation
rates.  If states fail to meet federal participation rates, state
maintenance of effort for federal Temporary Assistance for Needy Families
(TANF) funds must remain at  80% of historical spending levels, rather
than 75%.  The State could also be subject to fiscal penalties.

The bill requires the Department of Human Services and the Texas
Workforce Commission to provide outreach services to persons exempt from
work participation.  In determining fiscal impact, it is assumed that
the level of outreach currently provided to encourage voluntary
participation in Choices services meets this requirement or that
additional outreach activities have no significant fiscal impact.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   320   Texas Workforce Commission, 324   Texas
                   Department of Human Services
LBB Staff:         JK, HD, KE