LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 26, 2001
  
  
          TO:  Honorable Elliott Naishtat, Chair, House Committee on
               Human Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1006  by Naishtat (Relating to certain exemptions from
               work or employment activity requirements under the
               temporary assistance for needy families program.), As
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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This bill would continue the current exemptions from work requirements
that exist under the State's welfare reform waiver, which expires at the
end of February 2002.  Federal law does not recognize these exemptions in
calculating states' work participation rates.  If states fail to meet
federal participation rates, 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 would require the Department of Human Services and the Texas
Workforce Commission to provide outreach services, as appropriate, 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 the requirements of
the bill, or that additional outreach activities could be implemented
within existing agency resources.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   330   Texas Rehabilitation Commission, 517   Texas
                   Commission on Alcohol and Drug Abuse, 324   Texas
                   Department of Human Services, 320   Texas Workforce
                   Commission
LBB Staff:         JK, HD, KE