HBA-TBM, MPM H.B. 477 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 477
By: Naishtat
Human Services
3/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Texas Department of Human Services indicates that its financial aid
caseloads have declined from 255,294 as August 1995 to 119,350 as August
2000.  This reduction can be attributed to state and federal laws that made
welfare a time-limited benefit with work requirements.  The clients who
were more successful at transitioning into the workplace are primarily
those who needed minimal services. The remaining client population includes
those whose inadequate skills and personal hardships inhibit success in the
workplace.   This segment of the population requires more intensive case
management and workforce services to become self-sufficient.  C.S.H.B. 477
requires the Texas Department of Human Services and the Texas Workforce
Commission to develop an interagency plan to identify clients with higher
levels of barriers to employment and provide them with coordinated services
to address the barriers and transition into the workplace. 

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
and the Texas Workforce Commission in SECTION 1 (Section 31.0128, Human
Resources Code) of this bill. 

ANALYSIS

C.S.H.B. 477 amends the Human Resources Code to require the Texas
Department of Human Services (DHS) and the Texas Workforce Commission (TWC)
to jointly develop and adopt a memorandum of understanding, subject to the
approval of the Health and Human Services Commission (HHSC) to establish
guidelines for a coordinated interagency case management plan (plan) to: 

 _identify each recipient of financial aid who has higher levels of
barriers to employment compared to other recipients; and 

 _provide coordinated services addressing the barriers to assist the
recipient in finding and retaining employment. 

DHS and TWC are also required to jointly develop and adopt an additional
memorandum of understanding, subject to the approval of HHSC, that
establishes a plan consistent with these guidelines using existing
resources and by rule implement it to the maximum extent possible no later
than January 1, 2002 through local DHS and TWC offices in local workforce
development areas where a local workforce board is not established. 

In a local workforce development area where no local workforce development
board is established, the bill requires TWC to require in its contract with
DHS that DHS, in cooperation with local department offices, develop and
implement the plan. 

DHS and TWC are required, by rule, to adopt both memoranda of understanding
and all revisions no later than January 1, 2002. 
 
Not later than December 1, 2002, DHS and TWC are required to jointly
prepare and submit to the legislature a report regarding any changes in the
law necessary to implement the interagency case management plan.   

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 477 differs from the original by requiring the Texas Department of
Human Services (DHS) and the Texas Workforce Commission (TWC) to by rule
implement the coordinated interagency case management plan (plan) using
existing resources to the maximum extent possible through local department
and commission offices in local workforce development areas in which a
local workforce development board is not established.  The substitute also
requires DHS and TWC to not later than December 1, 2002 jointly prepare and
submit to the legislature a report regarding any changes in the law
necessary to implement the plan.