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.