HBA-MPM C.S.S.B. 45 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 45 By: Zaffirini Human Services 4/17/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE In 1995, the 74th Texas Legislature enacted welfare reform. Rather than immediately conform with federal welfare reform regulations enacted in 1996, the state was allowed to take advantage of a waiver option. When the waiver expires in March 2002, the state may exempt up to 20 percent of its caseload from federal lifetime time limits and work requirements due to hardship if it first defines the circumstances that warrant hardship exemption. C.S.S.B. 45 requires the Texas Department of Human Services (DHS), the Health and Human Services Commission, and the Texas Workforce Commission to jointly adopt rules prescribing what constitutes a hardship and provides a hardship exemption to a recipient of financial assistance who is younger than 20 years of age and who does not have a high school diploma or equivalency certificate (GED) while participating in educational activities, and authorizes DHS to impose time limits on assistance to a person who reaches 20 years of age and does not have a diploma or GED. 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, the Health and Human Services Commission, and the Texas Workforce Commission in SECTION 2 (Section 31.0065, Human Resources Code) of this bill. ANALYSIS C.S.S.B. 45 amends the Human Resources Code to require the Texas Department of Human Services (DHS) to provide a person younger than 20 years of age who does not have a high school diploma or high school equivalency certificate (GED) to a hardship exemption from the time limits imposed on recipients of financial assistance while the person is participating in educational activities designed to result in the receipt of a diploma or GED. If the person reaches the age of 20 and has not yet received a diploma or GED, DHS is authorized to impose a time limit on receipt of financial assistance and transitional benefits of one, two, or three years, as appropriate based on the person's educational status and work experience, computed beginning with the person's 20th birthday. The bill requires DHS, the Texas Workforce Commission (TWC), and the Health and Human Services Commission (HHSC) to jointly adopt rules prescribing circumstances that constitute a hardship for purposes of exempting a person from the time limits imposed by federal law. The bill provides that the rules must include a broad range of circumstances that reasonably prevent recipients from becoming selfsupporting before the expiration date set by federal law. Before adopting a rule, DHS TWC, and HHSC must submit the proposed rule to the lieutenant governor and speaker of the house of representatives for referral to the appropriate standing committees of each house of the legislature and consider any comments regarding the proposed rule that are provided by the committees in a timely manner. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 45 differs from the original bill by requiring the Texas Department of Human Services (DHS) to provide a person younger than 20 years old who does not have a high school diploma or high school equivalency certificate (GED) with a hardship exemption from the time limits imposed on recipients of financial assistance while the person is participating in educational activities designed to result in the receipt of a diploma or GED. The substitute also adds provisions authorizing DHS to impose time limits on receipt of financial assistance and transitional benefits by a person who attains 20 years of age and has not yet received a diploma or GED. The substitute specifies that before adopting a rule as required by this bill, DHS, the Texas Workforce Commission, and the Health and Human Services Commission must submit the rule to the lieutenant governor and speaker of the house of representatives for consideration by the appropriate standing committees.