HBA-DMD, RAR H.B. 503 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 503 By: Tillery Human Services 2/16/1999 Introduced BACKGROUND AND PURPOSE Under current state law, a family on welfare loses all of its cash benefits if an adult member of the family obtains a minimum wage job working 20 hours per week. H.B. 503 requires the Department of Human Services to adopt rules allowing for up to 90 percent of a recipient's income to be disregarded for six months for purposes of eligibility for welfare benefits. 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 (Section 31.0038, Human Resources Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. 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 Texas Department of Human Services (department) from considering a significant portion of any earned income received during the first six months of employment of an adult recipient of financial assistance who becomes employed while receiving assistance, for purposes of determining the amount of financial assistance for the support of dependent children or whether the family meets the household income resource requirements for financial assistance. (b) Requires the department, in adopting rules under this section, to prescribe up to 90 percent of a recipient's income as the portion that the department may not consider; to ensure that this section applies only to recipients who earn income below the maximum gross income limit set by the department under Section 31.003, Human Resources Code (Amount of Financial Assistance); and to consider in determining the amount of income to be disregarded under Subsection (a) the total amount the department estimates to be available to provide financial assistance to eligible recipients. SECTION 2. Authorizes the department to delay the implementation of any provision of this Act that require a waiver or other authorization from a federal agency and requires the department to request such waiver or authorization. SECTION 3. Makes application of this Act prospective, regardless of the date on which eligibility for the financial assistance was determined. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.