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 ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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