Legislation of the 75th Legislature of Texas Affecting Cash Assistance

(Temporary Assistance to Needy Families, Formerly Known as Aid to Families with Dependent Children)

by Bruce Bower, Texas Legal Services Center Staff Attorney

Significant changes are summarized. Unless otherwise stated, the legislation took effect September 1, 1997. The following abbreviations are used: "HHSC" means the Texas Health and Human Services Commission; "HRC" means the Texas Human Resources Code; "TDHS" means the Texas Department of Human Services; "HB" means House Bill; and "SB" means Senate Bill.

(a) Prohibits the use of cash assistance except for the purchase of goods and services that are considered "essential and necessary for the welfare of the family." Food, clothing, housing, utilities, child care, and incidentals, such as transportation and medicine or medical supplies or equipment not covered by Medicaid, are permitted to be bought with cash assistance. TDHS is required to define by rule what constitutes "essential and necessary goods and services."

(b) Authorizes cash withdrawals from the Lonestar Card only at the merchant’s customer service department and not at the check-out lane (i.e., not at the "point-of-sale terminal").

(c) Requires TDHS to encourage housing authorities, utility companies, and other nonfood retailers to accept the Lonestar Card (i.e., "to accept payment for goods and services through the state’s electronic benefits (EBT) system").

(a) Permits -- but does not require --TDHS to use a form of "fill-the-gap" budgeting, so as to disregard a portion of earnings of family members who obtain employment while receiving cash assistance.

(b) "Fill-the-gap budgeting" is defined as "a system of budgeting in which benefits are gradually lowered using a percentage of the difference between the standard of need and the countable income to calculate the grant amount.

(c) The bill made no appropriation. It states that funding for fill-the-gap budgeting can come from savings due to sanctions for non-compliance with the "personal responsibility agreement" and work requirements under the cash assistance program, from savings resulting from declining caseloads, and from the state’s block grant under the Temporary Assistance to Needy Families program.

(a) Requires TDHS to conduct research, analysis, and reporting of its programs to evaluate and improve the programs.

(b) Permits TDHS to contract with private entities for the research, analysis, and reporting. Requires that, at the start of the 76th Legislature, the 77th Legislature, and the 78th Legislature (i.e., not later than January 15, of the years 1999, 2001, and 2003), TDHS report to the governor, the lieutenant governor, and the speaker of the house of representatives, regarding TDHS’ success in evaluating and improving its programs.

(a) The need for objective research and analysis of health and human services needs and programs,

(b) Options for objective strategic planning for health and human services in Texas,

(c) Whether the legislature has the resources to assure quality research and accountability in health and human services programs, and

(d) The most appropriate means for providing the legislature with research to manage Texas’ health and human services system and to plan for its future.

Allows for the value of fraudulent food stamps transactions to be aggregated if the transactions are part of one scheme or course of conduct, in determining whether the grade of the offense.

(a) The law calls on the Texas HHSC to develop and implement a plan for integrated eligibility determination and service delivery. The plan must include a reengineering of the eligibility determination process, streamlined service delivery, a unified and integrated process for the transition from welfare to work, and improved access to benefits and services for clients.

(b) The law allows the Texas HHSC to contract with private companies for computer hardware and software, and professional and technical assistance,

(c) States that the integrated eligibility determination and delivery system shall be implemented to achieve:

(I) increased quality of and client access to services,

(ii) cost savings, and

(iii) calls for eliminating duplication of services.

(d) The law also requires that within ten days after requesting bids to implement the plan, the Commission must hold a public hearing and receive public comment on the request.

(e) The law also establishes a Texas Integrated Enrollment Services Legislative Oversight Committee, consisting of three senators appointed by the lieutenant governor, and three representatives appointed by the speaker of the house. This committee shall hold public hearings concerning the development of the plan. The committee is to report by December 31 of each year, concerning significant problems with TIES, and the effectiveness of TIES in providing necessary services. The report is to be made to the governor, lieutenant governor, and speaker of house, and must include recommendations for

(I) any necessary research, and

(ii) any necessary legislation.

Requires that a person who volunteers for the "JOBS" program actually participate (rather than merely volunteer to participate), in order to receive an additional six months of Medicaid and child care, after cash assistance has ended.

Allows a person who participates in a work or employment activity to complete the activity, if the person becomes ineligible for cash assistance due to the receipt of child support. Requires TDHS to continue to provide necessary child care services until the date on which the person completes the work or employment activity.

Requires each adult recipient of cash assistance attend appropriate parenting skills training classes, as determined by the needs assessment, and that the parenting skills training must include one or more components of the parenting skills training program that TDHS determines will be useful to the caretaker relative or parent.

Requires TDHS to close out any electronic benefits transfer (EBT) ("Lonestar Card") cash assistance account, in which there has not been activity for a year. The unused benefits are to be withdrawn by the comptroller.

Requires HHSC to establish four child care pilot programs, in which cash assistance recipients can be trained for the "child care profession." The child care programs would receive the recipients’ cash assistance and food stamps, to supplement the compensation to the recipients. The recipient’s own children would receive the same discounted rate for child care, as the program offers to children of its employees. In order to qualify for the training program, the recipient must:

(a) Have a high school diploma or the GED,

(b) Possess general skills and competence "as determined by HHSC rules," and

(c) Demonstrate long-term commitment to the "early childhood care profession."

This is an employer-driven program, but potentially can assist adults in becoming self-sufficient. Texans Work Program allows trainees to receive a $600 per month stipend, which will not count as income against food stamps or cash assistance. It also allows trainees in pilot program areas to have "individual development accounts," which will not count as resources under the food stamps and cash assistance programs. Under the Texans Work Program, the following requirements must be met:

(a) An employer develops a training program, of at least six months’ duration, but not longer than one year. The course must be approved by the Texas Workforce Commission.

(b) The Texas Skills Standard Board is required to develop guidelines for the training courses, which must consider, among other matters, whether the proposed training will enhance the employability of the trainee.

(c) Employers under this program are not liable for payroll taxes, nor for unemployment compensation contributions, nor must the employer provide health insurance or pension benefits to the trainees.

(d) No more than 20% of an employer’s workforce can consist of trainees under this law, unless the employer has fewer than 50 employees.

(e) The law has protections for currently employed workers against displacement, and prohibits an employer from impairing a collective bargaining agreement by use of the program.

(f) Each trainee in the program must work during the training course not less than the minimum number of hours required under the 1996 federal welfare law (in single parent households this is 20 hours per week in 1997 and 1998, 25 hours per week in 1999, and 30 hours per week in 2000, for two-parent families, this is 35 hours per week).

(g) The Texas Workforce Commission is required to provide dispute resolution to resolve grievances involving participation in the program.

(h) Each employer participating in the program is required to pay the Texas Workforce Commission $300 per month per trainee, which is matched by $300 per month from the state. This is the source of the $600 per month stipend which participating trainees are to receive.

(I) TDHS may limit the amount that can accumulate in the individual development account and which will not count against the food stamp or cash assistance resource limit. While the trainee is receiving assistance, withdrawals from the account are limited to educational and medical expenses, work-related expenses, and housing and moving expenses. The Texas Workforce Commission is to encourage contributions from community groups and financial institutions, to the individual development accounts.

(j) It must be kept in mind that under SB 781, the individual development accounts will only be permitted in under a pilot program, whereas the training aspect of the law must operate wherever there is an employer who wants to participate, and whose training program has been approved by the Texas Workforce Commission.

Requires that the state’s Interagency Task Force on Electronic Benefits (EBT) determine what programs beyond food stamps and cash assistance should be delivered by EBT (currently via the "Lonestar Card"), and to determine what imaging technology should be used to reduce fraud and misuse.

Requires that each WIC agency develop a plan to provide services during "extended hours," i.e., evenings and weekends. The Health Department will promulgate rules to define the "extended hours" obligation.

Provides a 20% tax credit (up to a maximum of $10,000) to an employer who employs a recipient of cash assistance. To qualify, the employer must pay for health insurance for the employee in whole or in part. The credit lasts for one year. The credit cannot exceed the net taxes paid by the employer to the comptroller, after any other applicable tax credits.

Under this law, the Texas Workforce Commission is required to issue rules for a pilot program to be known as the "Wheels for Work" pilot program. Under the program, persons who have secured employment but are unable to accept or retain employment due to lack of transportation will receive a donated car, and those who donate a car will receive a tax deduction for a charitable contribution. The law has no provisions for paying insurance premiums, or for the cost of maintaining the car.

Allows the Texas Workforce Commission to provide on-going job retention and reemployment assistance to a recipient of public assistance who has participated in a job training program. Also amends § 31.010 of the HRC, to require that TDHS, in providing work skills and job readiness training, emphasize training for sustainable wages, promote nontraditional work opportunities for recipients, and offer micro-enterprise development and self-employment assistance in rural areas and other areas where jobs are scarce.

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