79R1711 KLA-D
By: Naishtat H.B. No. 1061
A BILL TO BE ENTITLED
AN ACT
relating to penalties and sanctions imposed on recipients of
financial assistance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 31.0031(c) and (g), Human Resources
Code, are amended to read as follows:
(c) The department shall adopt rules governing sanctions
and penalties under this section to or for[:
[(1)] a person who fails to cooperate with each
applicable requirement of the responsibility agreement prescribed
by this section[; and
[(2) the family of a person who fails to cooperate with
each applicable requirement of the responsibility agreement].
(g) In this section, "caretaker [:
[(1) "Caretaker] relative" means a person who is
listed as a relative eligible to receive assistance under 42 U.S.C.
Section 602(a).
[(2) "Payee" means a person who resides in a household
with a dependent child and who is within the degree of relationship
with the child that is required of a caretaker but whose needs are
not included in determining the amount of financial assistance
provided for the person's household.]
SECTION 2. Section 31.0032, Human Resources Code, is
amended to read as follows:
Sec. 31.0032. PENALTIES AND SANCTIONS [PAYMENT OF
ASSISTANCE FOR PERFORMANCE]. (a) Except as provided by Section
231.115, Family Code, if after an investigation the department or
the Title IV-D agency determines that a person is not cooperating
with a requirement of the responsibility agreement required under
Section 31.0031, the department shall [immediately] apply
appropriate penalties or sanctions regarding the assistance
provided to or for that person under this chapter [a sanction
terminating the total amount of financial assistance provided under
this chapter to or for the person and the person's family]. In
applying penalties or sanctions, the department may not reduce or
terminate the amount of assistance provided to or for a child,
unless the child receives the assistance as the head of household.
[(a-1) The department shall apply a sanction or penalty
imposed under Subsection (a) for a period ending when the person
demonstrates cooperation with the requirement of the
responsibility agreement for which the sanction was imposed or for
a one-month period, whichever is longer.]
(b) The department shall immediately notify the caretaker
relative, second parent, or payee receiving the financial
assistance if the department will apply penalties or sanctions
under this section [not make the financial assistance payment for
the period prescribed by Subsection (a-1) because of a person's
failure to cooperate with the requirements of the responsibility
agreement during a month].
(c) The [To the extent allowed by federal law, the] Health
and Human Services Commission or any health and human services
agency, as defined by Section 531.001, Government Code, may not
deny medical assistance for a person because a penalty or sanction
is imposed with respect to financial assistance paid to or for that
person [who is eligible for financial assistance but to whom that
assistance is not paid because of the person's failure to
cooperate. Medical assistance to the person's family may not be
denied for the person's failure to cooperate. Medical assistance
may not be denied to a person receiving assistance under this
chapter who is under the age of 19, a pregnant adult, or any other
person who may not be denied medical assistance under federal law].
(d) This section does not prohibit the Texas Workforce
Commission, the Health and Human Services Commission, or any health
and human services agency, as defined by Section 531.001,
Government Code, from providing medical assistance, child care, or
any other related social or support services for a person against
whom a penalty or sanction is applied [an individual who is eligible
for financial assistance but to whom that assistance is not paid
because of the individual's failure to cooperate].
(e) If the department intends to apply a penalty or sanction
because of a person's failure to cooperate with the requirements of
the responsibility agreement under Section 31.0031, the department
must make a reasonable effort to contact the person by telephone or
in person to inform the person of:
(1) the department's decision to withhold or reduce
the financial assistance payment;
(2) the reasons for the withholding or reduction of
the financial assistance payment;
(3) the person's right to appeal the department's
decision to apply the penalty or sanction by requesting a hearing
under Section 31.0033;
(4) the types of circumstances that constitute good
cause for failure to cooperate for purposes of a hearing under
Section 31.0033; and
(5) actions the person must take to comply with the
requirements of the responsibility agreement.
(f) The executive commissioner of the Health and Human
Services Commission [department] by rule shall establish
procedures to determine whether a person has cooperated with the
requirements of the responsibility agreement.
SECTION 3. The heading to Section 31.0033, Human Resources
Code, is amended to read as follows:
Sec. 31.0033. GOOD CAUSE HEARING [FOR FAILURE TO
COOPERATE].
SECTION 4. Sections 31.0033(a) and (c), Human Resources
Code, are amended to read as follows:
(a) If the department or Title IV-D agency determines that
penalties or sanctions should be applied against a person under
Section 31.0032 [a person has failed to cooperate with the
requirements of the responsibility agreement under Section
31.0031], the person determined to have failed to cooperate with
the requirements of the responsibility agreement under Section
31.0031 or, if different, the person receiving the financial
assistance may request a hearing to show good cause for failure to
cooperate not later than the 13th day after the date the person
receives the notice required [is sent] under Section 31.0032. If
the person determined to have failed to cooperate or, if different,
the person receiving the financial assistance requests a hearing to
show good cause within the period specified by this subsection [not
later than the 13th day after the date on which the notice is sent
under Section 31.0032], the department may not withhold or reduce
the payment of financial assistance until the department determines
whether the person had good cause for the person's failure to
cooperate. On a showing of good cause for failure to cooperate, the
proposed penalty or sanction may not be imposed [person may receive
a financial assistance payment for the period in which the person
failed to cooperate, but had good cause for that failure to
cooperate].
(c) If the department finds that good cause for the person's
failure to cooperate was not shown at a hearing, the department
shall apply appropriate penalties or sanctions with respect to the
financial assistance provided to or for the person until the
department or, in a Title IV-D case, the Title IV-D agency
determines that the person is cooperating with the requirements of
the responsibility agreement [may not make a financial assistance
payment in any amount to the person for the person or the person's
family for the period prescribed by Section 31.0032(a-1)].
SECTION 5. Section 31.0034, Human Resources Code, is
amended to read as follows:
Sec. 31.0034. ANNUAL REPORT. The department shall prepare
and submit an annual report to the legislature that contains
statistical information regarding persons who are applying for or
receiving financial assistance or services under this chapter,
including the number of persons receiving assistance, the type of
assistance those persons are receiving, and the length of time
those persons have been receiving the assistance. The report also
must contain information on:
(1) the number of persons to whom time limits apply;
(2) the number of persons under each time limit
category;
(3) the number of persons who are exempt from
participation under Section 31.012(c);
(4) the number of persons who were receiving financial
assistance under this chapter but are no longer eligible to receive
that assistance because they failed to cooperate with the
requirements prescribed by Section 31.0031;
(5) the number of persons who are no longer eligible to
receive financial assistance or transitional benefits under this
chapter because:
(A) the person's household income has increased
due to employment; or
(B) the person has exhausted the person's
benefits under this chapter;
(6) the number of persons receiving child care, job
training, or other support services designed to assist the
transition to self-sufficiency; and
(7) the number of persons who were eligible to receive
financial assistance under this chapter for each one-month period
but whose financial assistance was withheld or reduced [to whom
that financial assistance was not paid] because the person failed
to cooperate with the requirements of the responsibility agreement
under Section 31.0031.
SECTION 6. Sections 31.0031(h) and 31.00331, Human
Resources Code, are repealed.
SECTION 7. On and after September 1, 2005, the Health and
Human Services Commission may not enforce the requirements of a
responsibility agreement signed by a payee of financial assistance
under Section 31.0031(h), Human Resources Code, before the repeal
of that section by this Act.
SECTION 8. The changes in law made by this Act apply to a
person receiving financial assistance under Chapter 31, Human
Resources Code, on or after the effective date of this Act,
regardless of the date on which eligibility for financial
assistance was determined.
SECTION 9. If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 10. This Act takes effect September 1, 2005.