HBA-MPM, H.B. 3639 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3639 By: Naishtat Human Services 4/6/1999 Introduced BACKGROUND AND PURPOSE In 1995, the 74th Texas Legislature made changes to the Texas welfare system by enacting legislation which imposed time limits on financial assistance, instituted a personal responsibility agreement as a condition of benefits, and increased work requirements. Additionally, the legislation consolidated all employment services into a new state agency, the Texas Workforce Commission (commission), and devolved much responsibility for these programs to local workforce development boards. In the summer of 1996, the United States Congress enacted legislation regarding welfare reform under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. This legislation eliminated the Aid to Families with Dependent Children and replaced it with the Temporary Assistance to Needy Families block grant. This legislation also ended the entitlement to public assistance, added time limits, and work requirements, as well as other policy changes and budget reductions. Because Texas had implemented its own reforms, the state was allowed to continue to follow state policy for time limits and other provisions until March, 2002, at which time the state is required to come into alignment with federal provisions. Texas has experienced a decline in the number of individuals receiving public assistance over the past several years. While many jobs are available, many of these typically pay wages below poverty level and provide few workplace benefits. Additionally, access to child care and other transitional benefits, as well as help with child support collections and other welfare-to-work services, has remained limited. Some individuals may also face multiple barriers to successfully entering the workplace, such as low education skills, substance abuse, or domestic violence. H.B. 3639 addresses certain policy changes Texas must implement by the year 2002 in order to come into compliance with federal law with respect to public financial assistance. Additionally, this bill: _strengthens the sanction process for noncompliance with work requirements; _stiffens penalties for welfare fraud and drug-related felonies; _directs the Texas Department of Human Services (department) and commission to identify and address client barriers to transition from welfare-to-work; _authorizes pre- and post-employment needs assessments and support services, such as temporary housing and transportation assistance for those in work or training; _implements an expanded earnings disregard to support the transition to work; _directs the attorney general to develop an incentive program for improving paternity establishment and child support collections and to refer unemployed or underemployed child support obligors to employment service agencies; _ensures that children receive Medicaid for which they are eligible; _promotes colocation of certain commission and department programs; and _maintains cash assistance as a fixed percentage of the federal poverty level. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Department of Human Services in SECTION 1.02 (Section 31.0039, Human Resources Code), SECTION 2.01 (Section 22.0271, Human Resources Code), SECTION 3.01 (Section 31.00351, Human Resources Code), SECTION 4.02 (Section 31.015, Human Resources Code) and SECTION 5.01 (Section 31.0315, Human Resources Code); and to the Texas Workforce Commission in SECTION 3.06. (Section 309.004, Labor Code) of this bill. SECTION BY SECTION ANALYSIS ARTICLE 1. PERSONAL RESPONSIBILITY AND SANCTIONS SECTION 1.01. TWO-STEP SANCTION PROCESS. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.00331, as follows: Sec. 31.00331. NEEDS ASSESSMENT FOR NONCOMPLIANCE WITH CERTAIN REQUIREMENTS. (a) Requires the Texas Department of Human Services (department) to conduct an assessment regarding the particular needs of a person whom the department determines has not complied with a requirement of the responsibility agreement under Section 31.0031 (Responsibility Agreement), Human Resources Code, under certain circumstances regarding a sanction or penalty against the person and if the person has not previously been sanctioned or penalized due to noncompliance. Provides that this assessment must include certain information regarding factors contributing to the person's inability to comply and the determination of support services that will enable the person to comply. Requires the department, based on the assessment, to refer the person and person's family to appropriate preventive and support services provided by the department or any public or private entity. Prohibits the department, notwithstanding Section 31.0032 (Penalties and Sanctions), Human Resources Code, from applying a subsequent sanction or penalty against a person for noncompliance under Section 31.0031(d)(1) or (3) (The regarding certain responsibility agreement requirements), until the person and person's family receive the preventive and support services to which they were referred. SECTION 1.02. INELIGIBILITY RESULTING FROM CERTAIN DRUG-RELATED CONVICTIONS. (a) Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.0039, as follows: Sec. 31.0039. INELIGIBILITY RESULTING FROM DRUG-RELATED FELONY CONVICTIONS. (a) Makes a person convicted, for conduct occurring after September 1, 1999, of an offense under federal or state law, or law of any other state that, at the time of the conviction, is classified as a felony by the jurisdiction involved and has as an element the possession, use, or distribution of a controlled substance, as defined in 21 U.S.C., Section 802 (Food and Drugs; Definitions) and its subsequent amendments, ineligible for financial assistance until the third anniversary of the date of conviction, with the exception of Subsection (c). (b) Requires the department to require an applicant for financial assistance to indicate in writing whether the applicant or any member of the applicant's household has been convicted of an offense described by Subsection (a). (c) Provides that a person convicted of an offense described by Subsection (a) is not ineligible under that subsection for financial assistance if the person is participating in a drug rehabilitation program and is not using drugs. Authorizes the department to require a person to submit to drug testing to verify that the person is not using drugs. (d) Authorizes a person convicted of an offense described by Subsection (a) to receive financial assistance after the third anniversary of the conviction if the person submits to drug testing and demonstrates that the person is not using drugs. (e) Requires the department to adopt rules as necessary to implement this section. (f) Provides that this section does not affect: (1) the eligibility for financial assistance of any other member of the household of a person ineligible as result of an offense described by Subsection (a); or (2) the eligibility of a person convicted of an offense described by Subsection (a) for a federal benefit specified in 21 U.S.C., Section 862(f) (Denial of Assistance and Benefits for Certain Drug-Related Convictions; Rule of Interpretation) and its subsequent amendments. SECTION 1.02 (b) Makes Section 31.009, Human Resources Code, as added by this section, prospective to a person receiving financial assistance under Chapter 31 (Financial Assistance and Service Programs), Human Resources Code, on or after the effective date of this section, regardless of the date on which eligibility for financial assistance was determined. SECTION 1.03. STUDY OF EFFECTIVENESS OF SANCTIONS AND PENALTIES. Requires the department, in cooperation with the Texas Workforce Commission (TWC), to conduct a study to determine whether penalties and sanctions under Section 31.0032, Human Resources Code, that are applied to the entire family of a recipient of financial assistance under that chapter increase the likelihood that the recipient will comply with the requirements of the responsibility agreement under Section 31.0031, Human Resources Code. ARTICLE 2. WELFARE FRAUD SECTION 2.01. Amends Chapter 22, Human Resources Code, by adding Section 22.0271, Human Resources Code, as follows: Sec. 22.0271. SUBPOENA AUTHORITY: FRAUD INVESTIGATIONS. (a) Authorizes the department to issue a subpoena throughout this state to compel the attendance and testimony of a witness or the production of documents or other evidence relating to an investigation by the department of a potentially fraudulent claim for benefits or other payment under the food stamp or financial assistance program. Authorizes the subpoena to compel attendance or production at the department's offices in Austin or at a place designated by the subpoena. (b) Authorizes the department, by rule, to authorize the Commissioner of Human Services (commissioner) or another department employee or representative to issue a subpoena authorized by this section on the department's behalf. (c) Requires the department to apply for an order directing compliance to the district court of the county in which a person is found, resides, or transacts business, on a person's failure to comply with a subpoena under this section. (d) Provides that a subpoena issued under this section to a financial institution is not subject to Section 30.007 (Production of Financial Institution Records), Civil Practice and Remedies Code. SECTION 2.02 SANCTIONS FOR WELFARE FRAUD. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.017, as follows: Sec. 31.017. FRAUD. (a) Prohibits a person, for purposes of establishing or maintaining eligibility of the person and person's family for financial assistance or increasing or preventing a reduction in the amount of assistance, from the following: _making a false or misleading statement; _misrepresenting, concealing, or withholding a fact; or _representing a statement to be true if the person knows it is false. (b) Requires the department, if, after an investigation, it determines a person has violated this section, to notify the person of the alleged violation no later than the 30th day after the investigation is completed and conduct a hearing, or refer the matter to the appropriate district attorney for prosecution. (c) Requires the department, if a hearing officer at an administrative hearing held under this section determines a person has violated this section, to: (1) after the first violation, terminate the total financial assistance provided to or for that person until the first anniversary of termination; (2) after the second violation, terminate the financial assistance provided to or for that person until the second anniversary of the termination; and (3) after the third violation, permanently disqualify the person from receiving financial assistance. (d) Authorizes a person determined to be in violation of this section to appeal the determination by filing a petition in the district court in the county where the violation occurred no later than the 30th day after the decision. (e) Provides that if a person is convicted of an offense under the Penal code for conduct described by this section, the person is permanently disqualified from receiving financial assistance. (f) Makes a person who violates this section ineligible to receive medical assistance, child care, or any other social or support services during the applicable period specified by Subsection (c) or any time after being permanently disqualified from receiving financial assistance. ARTICLE 3. EMPLOYMENT SECTION 3.01. CHILD-CARE SERVICES. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.00351, as follows: Sec. 31.00351. TEMPORARY CHILD-CARE SERVICES TO PROMOTE EMPLOYMENT. Requires the department, by rule, to develop a program providing temporary child-care services enabling an applicant to gain or retain employment that the applicant has located without the department's assistance. SECTION 3.02. EARNED INCOME DISREGARDS. (a) Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.0038, as follows: Sec. 31.0038. EARNED INCOME DISREGARDS FOR EMPLOYMENT. (a) Prohibits the department, in an adult recipient of financial assistance becomes employed while receiving the assistance, from considering a significant portion of any earned income received by the recipient during the first six months of employment for purposes of determining the amount of financial assistance granted to the individual for the support of dependent children or whether the family meets household income and resource requirements for financial assistance. (b) Requires the department, in adopting rules under this section, to: (1) prescribe the portion of the recipient's income that the department is prohibited from considering; (2) ensure that this section is applicable only to recipients with income in an amount not exceeding the maximum gross income limit set by the department under Section 31.003; and (3) consider in determining the amount to be disregarded under Subsection (a) the total amount the department estimates to be available to provide financial assistance to eligible recipients. SECTION 3.02 (b) Amends Section 31.043(a), Human Resources Code, as added by Chapter 878, Acts of the 75th Legislature, Regular Session, 1997, as follows: (a) Applies an exception provided by Section 31.0038, Human Resources Code, to this subsection, which authorizes the department to use a form of fill-the-gap budgeting or another method under which the department disregards earning of family members who obtain employment while receiving financial assistance under this chapter. SECTION 3.02 (c) Makes the change in law made by Section 31.0038, Human Resources Code, as added by this Act, prospective to a person receiving financial assistance Chapter 31, Human Resources Code, on or after the effective date of this section, regardless of the date on which eligibility for the assistance was determined. SECTION 3.03. POST-EMPLOYMENT ASSESSMENT. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.0096, as follows: Sec. 31.0096. POST-EMPLOYMENT ASSESSMENT AND SERVICES. Requires the department and TWC to jointly develop a program under which a recipient of financial assistance who obtains employment is assessed after beginning employment to determine the recipient's need for continuing education, training, and other services to promote employment retention and advancement to more highly skilled and compensated employment and provided appropriate services to the extent the services are available. SECTION 3.04. WORK REQUIREMENT EXEMPTIONS. (a) Amends Section 31.012, Human Resources Code, by amending Subsection (c) and adding Subsection (f), as follows: (c) Deletes the provision that a person who is the caretaker of a physically or mentally disabled child who requires the caretaker's presence is not required to participate in a program under this section. Provides that effective September 1, 1999, rather than September 1, 1995, a single custodial parent, rather than a person, is not required to participate in a program under this section until the parent's youngest child at the time the parent first becomes eligible for assistance reaches the age of three, rather than the age of five. Provides that effective September 1, 2000, rather than September 1, 1997, a single custodial parent is exempt until the parent's youngest child at the time the parent first became eligible for assistance reaches the age of two, rather than the age of four. Provides that effective September 1, 2001, a single custodial parent is exempt until the parent's youngest child at the time the parent first became eligible for assistance reaches the age of one. Makes conforming changes. (f) Defines "custodial parent" for purposes of this section. SECTION 3.04 (b) Requires a state agency, if before implementing any provision of Section 31.012 (c), Human Resources Code, as amended by this section, the agency determines that a waiver or authorization from a federal agency is necessary for implementation, to request the waiver or authorization. Authorizes the agency to delay implementing the provision until the waiver or authorization is granted. (c) Requires the department, if a waiver or authorization requested under Subsection (b) of this section is denied, to develop and implement a plan relating to authorizing exemptions from participation in work or employment activity requirements for certain recipients of Temporary Assistance for Needy Families (TANF) benefits in a way that complies with federal law and regulations. (d) Makes this section prospective to a person receiving financial assistance under Chapter 31, Human Resources Code, on or after the effective date of this section, regardless of the date on which eligibility for assistance was determined. SECTION 3.05. CHILD-CARE STUDY FOR PERSONS LOSING WORK REQUIREMENT EXEMPTIONS. (a) Requires TWC to conduct a study to consider issues relating to the provision of child-care services to recipients of financial assistance under Chapter 31, Human Resources Code, who meet specific eligibility criteria. (b) Requires TWC to report the results of the study to the governor, lieutenant governor, and speaker of the house of representatives no later than January 1, 2001. Provides that the report is required to include an analysis of the cost and accessibility of child-care services available to recipients described by Subsection (a) of this section. (c) Requires TWC to distribute a copy of the report to each local workforce development board in this state. SECTION 3.06. SELF-SUFFICIENCY FUND. Amends Subtitle B, Title 4, Labor Code, by adding Chapter 309, as follows: CHAPTER 309. SELF-SUFFICIENCY FUND. Sec. 309.001. DEFINITIONS. Defines for the purposes of this chapter the following terms: "community-based organization" and "fund." Sec. 309.002. SELF-SUFFICIENCY FUND. (a) Creates the self-sufficiency fund as an account in the general revenue fund for use by public community and technical colleges, community-based organizations, and state extension agencies to develop for certain recipients of financial assistance under Chapter 31, Human Resources Code, customized jobtraining programs in which the recipients will be provided job training by certain entities. Makes this subsection subject to the availability of funds. (b) Authorizes money from the fund to be used for support services as necessary for participants to prepare for and participate in training activities and to make the transition from training activities to employment. (c) Requires TWC to administer the fund. Provides that the executive director, or a person appointed by the executive director who is knowledgeable in the administration of grants, is responsible for the distribution of money from the fund. (d) Requires money from the fund to be spent in all areas of the state to the greatest extent practicable. Sec. 309.003. JOB-TRAINING PROGRAMS. (a) Provides that a job-training program fund financed by the fund must be specifically designed to meet certain goals. Provides that the program is considered a work or employment activity for purposes of Section 31.012 (Mandatory Work or Participation in Employment Activities Through the Job Opportunities and Basic Skills Program), Human Resources Code. (b) Requires an entity receiving money from the fund for a job-training program to work in conjunction with employers to place program graduates in positions of employment in which the graduates will earn wages sufficient to enable to graduates to become independent of financial assistance under Chapter 31, Human Resources Code, and, if applicable, assistance provided under the food stamp program administered by the department under Chapter 33 (Nutritional Assistance Programs), Human Resources Code. Sec. 309.004. RULEMAKING AUTHORITY. Requires TWC to adopt rules to implement this chapter, including rules determining which recipients of financial assistance under Chapter 31, Human Resources Code, are eligible to participate in job-training programs developed with money from the fund. ARTICLE 4. SUPPORT SERVICES SECTION 4.01. PERSONAL NEEDS ASSESSMENT. (a) Amends Section 31.0095, Human Resources Code, as follows: Sec. 31.0095. New title: EMPLOYABILITY NEEDS ASSESSMENT. SECTION 4.01. (b) Amends Section 31.010, Human Resources Code, as follows: Sec. 31.010. NEW TITLE: SUPPORT SERVICES RELATED TO EMPLOYABILITY OF A RECIPIENT. SECTION 4.01 (c) Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.011, as follows: Sec. 31.011. PERSONAL AND FAMILIAL NEEDS ASSESSMENT AND SUPPORT SERVICES. (a) Requires the department to assist a recipient of financial assistance in assessing the recipient's skills and the needs, other than employability needs assessed under Section 31.0095, Human Resources Code, of the recipient and the recipient's family that, if addressed would help the recipient and the recipient's family to attain and retain the capability of independence and self-care. (b) Requires the department, based on the needs assessment under this section, to refer the recipient and the recipient's family to appropriate preventive and support services provided by the department or another public or private entity. Authorizes the department to refer a recipient and a recipient's family to certain preventive and support services. SECTION 4.02. HOUSING ASSISTANCE. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.015, as follows: Sec. 31.015. HOUSING ASSISTANCE. (a) Requires the department to establish a housing assistance program under which certain recipients of financial assistance are authorized to receive additional money for housing costs. (b) Requires the department, by rule, to determine the requirements for eligibility for assistance under this section. Authorizes the department to limit eligibility to categories of recipients specified by the department. Specifies that the rules are required to include certain provisions and requirements. (c) Requires the department to determine the amount of assistance provided under this section based on the amount of funds appropriated for that purpose. Prohibits the department from providing assistance under this section for more than one year. (d) Authorizes the department to provide housing assistance under this section as a transitional benefit to a former recipient of financial assistance. Provides that assistance provided under this subsection is subject to requirements imposed by Subsections (b) and (c). SECTION 4.03. LOCAL TRANSPORTATION SERVICES. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.016, as follows: Sec. 31.016. GRANTS FOR TRANSPORTATION SERVICES. (a) Requires TWC to establish and administer a competitive grant program under which local governmental entities and nonprofit organizations are authorized to receive money for innovative local transportation programs that enable recipients of financial assistance to attain and retain employment. (b) Requires TWC to adopt rules regarding eligibility criteria, application procedures, and other requirements necessary to implement this section. (c) Requires TWC to fund grants made under this section in a way that permits the money provided a grant recipient to qualify as local matching funds for appropriate federal transportation programs. ARTICLE 5. CHILD SUPPORT SECTION 5.01. INCENTIVE PROGRAM. Amends Section 31.0315, Human Resources Code, by adding Subsection (g), as follows: (g) Requires the department, in cooperation with the Title IV-D agency, to, by rule, develop an incentive program designed to encourage an applicant or an applicant's relatives to cooperate with the requirements of this section. Provides that the program is authorized to include certain financial incentives. SECTION 5.02. OBLIGOR EMPLOYMENT ASSISTANCE. (a) Amends Section 231.115, Family Code, as added by Chapter 165, Acts of the 75th Legislature, Regular Session, 1997, as follows: Sec. 231.115. New title: UNEMPLOYED AND UNDEREMPLOYED OBLIGORS. Deletes "noncustodial parents" from title. (a) Requires a Title IV-D agency to refer to appropriate state and local entities that provide employment services, rather than those which assist unemployed noncustodial parents in gaining employment, any unemployed or underemployed obligor, rather than to a noncustodial parent, who is in arrears in courtordered child support payments. Deletes specific qualifications of a child receiving child support services. (b) Makes no change. (c) Makes conforming changes. SECTION 5.02. (b) Amends Subchapter A, Chapter 302, Labor Code, by adding Section 302.0035, as follows: Sec. 302.0035. EMPLOYMENT ASSISTANCE PROGRAM FOR CERTAIN PARENTS. Requires the division of workforce development of TWC (division) to provide certain employment assistance services to a person referred by a Title IV-D agency under Chapter 31, Family Code. SECTION 5.03. DISTRIBUTION OF CHILD SUPPORT PAYMENTS. (a) Amends Subchapter B, Chapter 231, Family Code, by adding Section 231.118, as follows: Sec. 231.118. DISTRIBUTION OF CERTAIN CHILD SUPPORT PAYMENTS. (a) Requires a Title IV-D agency, when the agency receives a child support payment on behalf of a child whose support rights have been assigned to the agency under Section 231.104 (Assignment of Right to Support), Family Code, to distribute the amount collected according to federal law. (b) Requires the agency, to the extent authorized by federal law, to send each month to a person receiving financial assistance under Chapter 31, Human Resources Code, on behalf of a child described by Subsection (a) a payment equal to the lesser of $100 or the state's share of the total amount of child support the agency received on the child's behalf during the month. (c) Defines "state share" for purposes of this section. SECTION 5.03. (b) Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.0041, as follows: Sec. 31.0041. CHILD SUPPORT DISTRIBUTION. Prohibits the department from considering the amount received under Section 231.118, Family Code, by a recipient of financial assistance for purposes of determining the amount of financial assistance granted to an individual under this chapter for the support of dependent children or whether the family meets household income and resource requirements for financial assistance under this chapter. SECTION 5.03. (c) Makes the change in law made by Section 231.118(b), Family Code, as added by this section, prospective to a person receiving financial assistance under Chapter 31, Human Resources Code, on or after the effective date of this section, regardless of the date on which eligibility for that assistance was determined. ARTICLE 6. LEGISLATIVE OVERSIGHT SECTION 6.01. LEGISLATIVE OVERSIGHT. Amend Chapter 31, Human Resources Code, by adding Subchapter E, as follows: SUBCHAPTER E. LEGISLATIVE OVERSIGHT Sec. 31.081. DEFINITION. Defines "committee" for purposes of this subchapter. Sec. 31.082. COMPOSITION OF COMMITTEE; PRESIDING OFFICER. (a) Sets forth the composition of the legislative oversight committee (committee). (b) Provides that a member of the committee serves at the will of the appointing officer. (c) Requires the lieutenant governor and speaker of the house of representatives, on an alternating basis, to designate the committee's presiding officer from the committee's membership. Provides that the presiding officer serves in that capacity for a two-year period expiring February 1 of each odd-numbered year. Sec. 31.083. COMMITTEE POWERS AND DUTIES. (a) Requires the committee to meet at the call of the presiding officer and to perform certain functions. (b) Authorizes the committee to request reports and other information from the department, TWC, and other state agencies as necessary to carry out its duties under this section. (c) Requires the committee to use the existing staff resources of the senate and house of representatives to assist in performing its duties under this section. Sec. 31.084. REPORT. Requires the committee to report to the governor, lieutenant governor, and speaker of the house of representatives on the results of its activities under Section 31.083, Family Code, no later than November 15 of each even-numbered year. Provides that the report is required to include recommendations for legislative action. ARTICLE 7. MISCELLANEOUS PROVISIONS SECTION 7.01. DETERMINATION OF AMOUNT OF FINANCIAL ASSISTANCE. Amends Section 31.003(a), Human Resources Code, as follows: (a) Provides that the amount of financial assistance granted under this section is required to be based on federal poverty guidelines. SECTION 7.02. ENTITLEMENT TO FINANCIAL ASSISTANCE FROM DATE OF APPLICATION. Amends Section 31.032(b), Human Resources Code, as follows: (b) Deletes the requirement that the date on which financial assistance shall begin as a criterion which the department is required to consider under this subsection. Entitles an applicant determined to be eligible for assistance to assistance beginning on the date on which the applicant applied for assistance. SECTION 7.03. INCOME AND RESOURCE REQUIREMENTS APPLICABLE TO MEDICAL ASSISTANCE PROGRAM. Amends Subchapter B, Chapter 32, Human Resources Code, by adding Section 32.0242, as follows: Sec. 32.0242. INCOME AND RESOURCE REQUIREMENTS FOR CERTAIN RECIPIENTS. Requires the department, to the extent authorized by federal law, to determine whether a family meets household income and resource requirements for medical assistance under 42 U.S.C., Section 1396u-1 (Assuring Coverage for Certain Low-Income Families) in the same manner as the department makes household income and resource requirement determinations for financial assistance under Chapter 31, Human Resources Code. Provides that if the method of determining household income and resource requirements under that chapter changes, the change also applies to those requirements for purposes of determining whether a family is eligible for medical assistance described by this section. SECTION 7.04. AUTOMATIC REVIEW OF CHILDREN'S ELIGIBILITY FOR MEDICAL ASSISTANCE. Amends Subchapter B, Chapter 32, Human Resources Code, by adding Section 32.0251, as follows: Sec. 32.0251. ELIGIBILITY REVIEW FOR CERTAIN CHILDREN. (a) Requires the department to establish and implement procedures under which it automatically reviews a child's eligibility for medical assistance under certain circumstances. (b) Requires the department to ensure that the child continues to receive medical assistance without a gap in eligibility if the review required by this section indicates that the child is eligible for medical assistance on another basis. SECTION 7.05. LEASE AND SUBLEASE OF OFFICE SPACE. Amends Subchapter B, Chapter 531, Government Code, by adding Section 531.051, as follows: Sec. 531.051. LEASES AND SUBLEASES OF CERTAIN OFFICE SPACE. (a) Authorizes a health and human services agency, with the approval of the Health and Human Services Commission or TWC or any other state agency administering employment services programs, to lease or sublease office spaces to or from a private service provider that contracts with the agency to enable agency eligibility and enrollment personnel to work with the provider if certain goals would be achieved. (b) Makes Subchapters D and E (Lease of Public Grounds, Lease of Space in StateOwned Buildings to Private Tenants), Chapter 2165 (State Buildings, Grounds and Property), Government Code, inapplicable to a state agency leasing or subleasing office space to a private service provider under this section. (c) Makes Subchapter B (Procedures for Leasing Space; Lease Contract), Chapter 2167 (Lease of Space for State Agencies), Government Code, inapplicable to a state agency leasing or subleasing office space from a private service provider under this section. (d) Provides that a state agency is delegated the authority to enter into a lease or sublease under this section and authorizes the agency to negotiate the terms of the lease or sublease. (e) Authorizes a stage agency to share business resources with a private service provider entering into a lease or sublease agreement with the agency under this section to the extent authorized by federal law. SECTION 7.06. COLOCATION OF OFFICES OR FACILITIES. (a) Authorizes the attorney general's officer, in conjunction with the department, to develop and implement a plan to colocate offices or facilities located in the same geographic region to enable child support enforcement officers to work with department eligibility personnel to improve the efficiency of the child support collection process in cases involving children receiving financial assistance under Chapter 31, Human Resources Code. (b) Requires the attorney general, if developing a plan with the department under this section, to send a copy of the plan to the governor, the lieutenant governor, and the speaker of the house of representatives no later than the 60th day after the plan is completed. ARTICLE 8. WAIVERS; EFFECTIVE DATE; EMERGENCY SECTION 8.01. WAIVERS. Requires a state agency, if, before implementing any provision of this Act, it determines that a waiver or authorization from a federal agency is necessary or implementation, to request the waiver or authorization, and authorizes the agency to delay implementing that provision until the waiver or authorization is granted. SECTION 8.02. Effective date: September 1, 1999. SECTION 8.03. Emergency clause.