By: Nelson, et al. S.B. No. 11 A BILL TO BE ENTITLED AN ACT relating to the administration and operation of the Temporary Assistance for Needy Families (TANF) program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. DRUG SCREENING AND TESTING OF CERTAIN TANF APPLICANTS AND RECIPIENTS SECTION 1.01. Subchapter B, Chapter 31, Human Resources Code, is amended by adding Section 31.0321 to read as follows: Sec. 31.0321. DRUG SCREENING AND TESTING; ELIGIBILITY. (a) In this section: (1) "Commission" means the Health and Human Services Commission. (2) "Controlled substance" has the meaning assigned by Chapter 481, Health and Safety Code. (b) Except as provided in Subsections (f) and (g), each adult applicant for financial assistance benefits, including an applicant applying solely on behalf of a child, who initially applies for those benefits or who applies for the continuation of those benefits must submit to a controlled substance use screening assessment to establish the applicant's or the child's eligibility for the benefits. In addition, each minor parent who is the head of household must submit to a controlled substance use screening assessment on the initial application for financial assistance benefits and on any application for the continuation of those benefits to establish the minor's eligibility for the benefits. (c) A person whose controlled substance use screening assessment conducted under this section indicates good cause to suspect the person of controlled substance use shall submit to a drug test to establish the eligibility of the person and the person's family for financial assistance benefits. (d) Except as provided in Subsection (e), a person whose drug test conducted under this section indicates the presence in the person's body of a controlled substance not prescribed for the person by a health care practitioner is ineligible for financial assistance benefits for the person and the person's family for a period of 12 months beginning on the first day of the month after the month in which the drug test was administered. (e) A person who is denied financial assistance benefits because of the results of a drug test conducted under this section may reapply for financial assistance benefits six months after the first day of the month after the month in which the drug test was administered if the person provides proof of the person's successful completion of or current enrollment in a substance abuse treatment program. A person reapplying for financial assistance benefits must submit to a drug test as required by Subsection (f), regardless of whether the person is continuing to receive substance abuse treatment. (f) A person who is denied financial assistance benefits because of the results of a drug test conducted under this section must submit to a drug test, without first submitting to a controlled substance use screening assessment, at the time of any reapplication for financial assistance benefits and on any application for the continuation of those benefits to establish the eligibility of the person and the person's family for the benefits. (g) A person who has been convicted of a felony drug offense must submit to a drug test, without first submitting to a controlled substance use screening assessment, at the time of an initial application for financial assistance benefits and on any application for the continuation of those benefits to establish the eligibility of the person's family for the benefits. (h) If a person is denied eligibility for financial assistance benefits three times because of the results of a drug test conducted under this section, the person and the person's family are permanently ineligible for those benefits. (i) Before denying financial assistance benefits under this section, the commission must: (1) notify the person who submitted to a drug test of the results of the test and the commission's proposed determination of ineligibility; and (2) confirm the results of the drug test through a second drug test or other appropriate method. (j) The commission shall: (1) use the most efficient and cost-effective controlled substance use screening assessment tool that the commission and the Department of State Health Services can develop based on validated controlled substance use screening assessment tools; and (2) pay the cost of any controlled substance use screening assessment or drug test administered under this section out of the federal Temporary Assistance for Needy Families block grant funds. (k) The commission shall report to the Department of Family and Protective Services for use in an investigation conducted under Chapter 261, Family Code, if applicable, a person whose drug test conducted under this section indicates the presence in the person's body of a controlled substance not prescribed for the person by a health care practitioner. (l) The executive commissioner of the commission shall adopt rules implementing this section. SECTION 1.02. (a) Section 31.0321, Human Resources Code, as added by this Act, applies to: (1) an adult applicant, including an applicant applying solely on behalf of a child, who initially applies for financial assistance benefits under Chapter 31, Human Resources Code, on or after the effective date of this Act; (2) a minor parent who is the head of household who initially applies for financial assistance benefits under Chapter 31, Human Resources Code, on or after the effective date of this Act; (3) an adult applicant, including an applicant applying solely on behalf of a child, who applies for the continuation of financial assistance benefits under Chapter 31, Human Resources Code, on or after the effective date of this Act; and (4) a minor parent who is the head of household who applies for the continuation of financial assistance benefits under Chapter 31, Human Resources Code, on or after the effective date of this Act. (b) Except as provided by Subsections (a)(3) and (4) of this section, an adult applicant, including an applicant applying solely on behalf of a child, and a minor parent who is the head of household who applied for financial assistance benefits under Chapter 31, Human Resources Code, before the effective date of this Act are governed by the law in effect when the person applied for financial assistance benefits, and that law is continued in effect for that purpose. ARTICLE 2. MANDATORY PARTICIPATION IN TANF EMPLOYMENT PROGRAMS BY CERTAIN PERSONS SECTION 2.01. Section 31.0033(d), Human Resources Code, is amended to read as follows: (d) The executive commissioner of the Health and Human Services Commission [department] by rule shall establish criteria for good cause failure to cooperate and guidelines for what constitutes a good faith effort on behalf of a recipient under this section, except that the Texas Workforce Commission shall establish criteria for good cause failure to cooperate with regard to work or employment activities in accordance with Section 31.012(b). SECTION 2.02. The heading to Section 31.012, Human Resources Code, is amended to read as follows: Sec. 31.012. MANDATORY WORK OR PARTICIPATION IN EMPLOYMENT ACTIVITIES [THROUGH THE JOB OPPORTUNITIES AND BASIC SKILLS PROGRAM]. SECTION 2.03. Section 31.012, Human Resources Code, is amended by amending Subsections (a), (b), (c), (d), and (e) and adding Subsections (c-1) and (g) to read as follows: (a) Except as provided by Subsections (c) and (g), the Health and Human Services Commission [The department] shall require that, during any one-month period in which an adult is receiving or the child of a nonrecipient parent is receiving financial assistance under this chapter, the adult or nonrecipient parent shall during that period: (1) work not less than 30 hours a week; or (2) participate for not less than 20 hours a week in an activity established under a Temporary Assistance for Needy Families employment program under Part A, Subchapter IV, Social Security Act (42 U.S.C. Section 601 et seq.) [the job opportunities and basic skills (JOBS) training program under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section 682)]. (b) The Texas Workforce Commission [department] by rule shall establish criteria for good cause failure to cooperate and for notification procedures regarding participation in work or employment activities under this section. (c) A person providing care for [who is the caretaker of] a family member with a disability [physically or mentally disabled child] who lives in the person's home and requires the person's [caretaker's] presence is not required to participate in a program under this section. A single person who is the caretaker of a child is exempt until the caretaker's youngest child at the time the caretaker first became eligible for assistance reaches the age of one. Notwithstanding Section [Sections] 31.0035(b) [and 32.0255(b)], the Texas Workforce Commission [department] shall provide to a person who is exempt under this subsection and who voluntarily participates in a program under Subsection (a)(2) six months of transitional benefits in addition to the [applicable] limit prescribed by Section 31.0065. (c-1) Notwithstanding Section 531.0055, Government Code, the executive commissioner of the Health and Human Services Commission may not adopt rules that provide exceptions to a person's required participation in work or employment activities that are in addition to the exceptions provided by Subsections (c) and (g). (d) A state program operated under this section shall be administered by the division of workforce development of the Texas Workforce Commission [when the program is transferred to that commission]. (e) The Texas Workforce Commission [department] shall allow a person who is participating in work or employment activities under this section to complete those activities if the person becomes ineligible to receive financial assistance under this chapter because the person receives child support in an amount that makes the person ineligible for that assistance. The Texas Workforce Commission [department] shall provide to the person necessary child care services until the date on which the person completes work or employment activities under this section. (g) A nonrecipient parent who receives Supplemental Security Income (SSI) benefits under 42 U.S.C. Section 1381 et seq. is not subject to the requirements of this section. The Texas Workforce Commission may provide services to the nonrecipient parent under this chapter in accordance with commission rules. SECTION 2.04. Section 31.014(a), Human Resources Code, is amended to read as follows: (a) The Health and Human Services Commission [department] shall provide financial assistance, in accordance with [department] rules adopted by the executive commissioner of the Health and Human Services Commission, to a two-parent family if the primary wage earner parent, other than a nonrecipient parent described by Section 31.012(g), is registered with a Temporary Assistance for Needy Families employment program under Part A, Subchapter IV, Social Security Act (42 U.S.C. Section 601 et seq.) [in the job opportunities and basic skills (JOBS) training program under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section 682)], or is registered with the Texas Workforce [Employment] Commission. SECTION 2.05. Sections 31.0126(c) and 31.014(c), Human Resources Code, are repealed. SECTION 2.06. Section 31.012, Human Resources Code, as amended by this Act, applies to a person receiving financial assistance benefits under Chapter 31, Human Resources Code, including a nonrecipient parent, as defined by Section 31.0021, Human Resources Code, on or after the effective date of this Act, regardless of the date the determination of eligibility for those benefits was made. ARTICLE 3. USE OF TANF BENEFITS SECTION 3.01. Section 31.0355, Human Resources Code, is amended by adding Subsection (c-1) to read as follows: (c-1) A retailer who accepts payment for goods and services through the EBT system shall ensure that financial assistance benefits are not used to purchase goods and services the purchase of which is not authorized under this section or rules adopted under this section, including alcoholic beverages, tobacco products, lottery tickets, adult entertainment, firearms, ammunition, and bingo. ARTICLE 4. TANF TIME LIMITS SECTION 4.01. Section 31.0035(b), Human Resources Code, is amended to read as follows: (b) Except as provided by Section 31.012(c), the Texas Workforce Commission [department] may provide the child-care services only until the earlier of: (1) the end of the [applicable] period prescribed by Section 31.0065 for the provision of transitional benefits; or (2) the first anniversary of the date on which the person becomes ineligible for financial assistance because of increased household income. SECTION 4.02. Section 31.0065, Human Resources Code, is amended to read as follows: Sec. 31.0065. TIME-LIMITED BENEFITS. (a) Subject to the exemptions adopted under Section 31.0067, the Health and Human Services Commission [The department] may provide financial assistance under this chapter only in accordance with the time limits specified by this section. [The department by rule may provide for exceptions to these time limits if severe personal hardship or community economic factors prevent the recipient from obtaining employment or if the state is unable to provide support services.] (b) The Health and Human Services Commission [department] shall limit financial assistance provided to a person and the person's family to a cumulative total of 36 months of financial assistance benefits and 12 months of transitional benefits [and transitional benefits in accordance with the following schedule: [(1) financial assistance is limited to a cumulative total of 12 months and transitional benefits are limited to 12 months if the person receiving financial assistance on behalf of a dependent child has: [(A) a high school diploma, a high school equivalency certificate, or a certificate or degree from a two-year or four-year institution of higher education or technical or vocational school; or [(B) recent work experience of 18 months or more; [(2) financial assistance is limited to a cumulative total of 24 months and transitional benefits are limited to 12 months if the person receiving financial assistance on behalf of a dependent child has: [(A) completed three years of high school; or [(B) recent work experience of not less than six or more than 18 months; and [(3) financial assistance is limited to a cumulative total of 36 months and transitional benefits of 12 months if the person receiving financial assistance on behalf of a dependent child has: [(A) completed less than three years of high school; and [(B) less than six months of work experience]. (c) [If the recipient has completed less than three years of high school and has less than six months work experience, the department shall perform an in-depth assessment of the needs of that person and that person's family. If the recipient cooperates with the department's assessment, the time period prescribed by Subsection (b)(3) begins on the first anniversary of the date on which the department completes the assessment, as determined by the department. [(d)] The computation of time limits under Subsection (b) begins when the person begins receiving financial assistance [adult or teen parent recipient receives notification under Section 31.012(b) of the availability of an opening in and eligibility for the job opportunity and basic skills (JOBS) program Part F, Subchapter IV, Social Security Act (42 U.S.C. Section 682)]. [(e) In implementing the time-limited benefits program, the department: [(1) shall provide that a participant in the program may reapply with the department for financial assistance on or after the fifth anniversary of the date on which the participant is totally disqualified from receiving assistance because of the application of Subsection (b); and [(2) shall establish the criteria for determining what constitutes severe personal hardship under Subsection (a). [(f) If the department is imposing time-limited benefits on an individual, the department shall consider: [(1) the assessment of the individual's need that was conducted by the department, provided that if the needs assessment indicates discrepancies between a client's self-reported educational level and the client's functional abilities, the time limits shall be based upon the functional educational level; and [(2) the prevailing economic and employment conditions in the area of the state where the individual resides.] SECTION 4.03. Section 31.0066, Human Resources Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows: (a) The [department, the] Texas Workforce Commission[,] and the executive commissioner of the Health and Human Services Commission shall jointly adopt rules prescribing circumstances that constitute a hardship for purposes of exempting a recipient of financial assistance from the application of time limits imposed by federal law on the receipt of benefits. (c) The rules must include guidelines to address the continued participation in work or employment activities required under Section 31.012 by recipients of financial assistance exempted from the application of time limits imposed by federal law. SECTION 4.04. Subchapter A, Chapter 31, Human Resources Code, is amended by adding Section 31.0067 to read as follows: Sec. 31.0067. HARDSHIP EXEMPTIONS FROM STATE TIME LIMITS. (a) The Texas Workforce Commission and the executive commissioner of the Health and Human Services Commission shall jointly adopt rules prescribing circumstances that constitute a hardship for purposes of exempting a recipient of financial assistance from the application of time limits imposed by Section 31.0065 on the receipt of benefits. (b) The rules must include a broad range of circumstances that reasonably prevent recipients of financial assistance from becoming self-supporting before expiration of the period specified by Section 31.0065. (c) The rules must include guidelines to address the continued participation in work or employment activities required under Section 31.012 by recipients of financial assistance exempted from the application of time limits imposed by Section 31.0065. SECTION 4.05. Section 32.0255(b), Human Resources Code, is amended to read as follows: (b) Except as provided by Section 31.012(c), the state may provide the medical assistance only until the earlier of: (1) the end of the [applicable] period prescribed by Section 31.0065 for the provision of transitional benefits; or (2) the first anniversary of the date on which the person becomes ineligible for financial assistance because of increased household income. SECTION 4.06. The Texas Workforce Commission and the executive commissioner of the Health and Human Services Commission shall adopt the rules required by Section 31.0066, Human Resources Code, as amended by this Act, and Section 31.0067, Human Resources Code, as added by this Act, not later than December 1, 2013. SECTION 4.07. Section 31.0065, Human Resources Code, as amended by this Act, applies to a person receiving financial assistance benefits under Chapter 31, Human Resources Code, on or after January 1, 2014, regardless of the date the determination of eligibility for those benefits was made. ARTICLE 5. TANF RESPONSIBILITY AGREEMENTS SECTION 5.01. Section 31.0031, Human Resources Code, is amended by amending Subsections (a), (d), and (g) and adding Subsection (i) to read as follows: (a) The Health and Human Services Commission [department] shall require each adult recipient and each teen parent recipient who is the head of household to sign a bill of responsibilities that defines the responsibilities of the state and of the recipient and encourages personal responsibility. The commission [department] shall explain to the applicant the work requirements and time-limited benefits in addition to the other provisions of the agreement before the applicant signs the agreement. The commission [department] shall provide each applicant with a copy of the signed agreement. The agreement shall include pertinent case information, including the case number and a listing of the state's benefits. (d) The responsibility agreement shall require that: (1) the parent of a dependent child cooperate with the Health and Human Services Commission [department] and the Title IV-D agency if necessary to establish the paternity of the dependent child and to establish or enforce child support; (2) if adequate and accessible providers of the services are available in the geographic area and subject to the availability of funds, each dependent child, as appropriate, complete early and periodic screening, diagnosis, and treatment checkups on schedule and receive the immunization series prescribed by Section 161.004, Health and Safety Code, unless the child is exempt under that section; (3) each adult recipient, or teen parent recipient who has completed the requirements regarding school attendance in Subdivision (6), not voluntarily terminate paid employment of at least 30 hours each week without good cause in accordance with rules adopted by the Texas Workforce Commission [department]; (4) each adult recipient and each teen parent recipient who is the head of household for whom a needs assessment is conducted participate in an activity to enable that person to become self-sufficient by: (A) continuing the person's education or becoming literate; (B) entering a job placement or employment skills training program; (C) serving as a volunteer in the person's community; or (D) serving in a community work program or other work program approved by the Texas Workforce Commission [department]; (5) each caretaker relative or parent receiving assistance not use, sell, or possess marihuana or a controlled substance in violation of Chapter 481, Health and Safety Code, or abuse alcohol; (6) each dependent child younger than 18 years of age and each [or] teen parent younger than 19 years of age and other teen parent recipient who is the head of household attend school regularly, unless the person [child] has a high school diploma or high school equivalency certificate or is a child who is specifically exempted from school attendance under Section 25.086, Education Code; (7) each recipient comply with Health and Human Services Commission [department] rules regarding proof of school attendance; and (8) each recipient attend appropriate parenting skills training classes, as determined by the needs assessment. (g) In this section: (1) "Caretaker relative" means a person who is listed as a relative eligible to receive assistance under 42 U.S.C. Section 602(a). (2) "Payee" means a person, excluding a nonrecipient parent, who resides in a household with a dependent child and who is within the degree of relationship with the child that is required of a caretaker but whose needs are not included in determining the amount of financial assistance provided for the person's household. (i) The Health and Human Services Commission shall require each nonrecipient parent to sign a bill of responsibilities that defines the responsibilities of the state and of the nonrecipient parent. The responsibility agreement must require that a nonrecipient parent comply with the requirements of Subsections (d)(1) through (8). SECTION 5.02. Section 31.0031(f), Human Resources Code, is repealed. ARTICLE 6. STUDY SECTION 6.01. STUDY OF ELECTRONIC PROVISION OF FINANCIAL ASSISTANCE BENEFITS. (a) The Health and Human Services Commission shall study the feasibility of providing financial assistance benefits under Chapter 31, Human Resources Code, in the form of an electronic voucher that can be used and accepted in the same manner as a credit card. (b) Not later than September 1, 2014, the Health and Human Services Commission shall report its findings to the governor, the lieutenant governor, the speaker of the house of representatives, the Senate Health and Human Services Committee or its successor, and the House Human Services Committee or its successor. (c) This section expires September 1, 2015. ARTICLE 7. FEDERAL AUTHORIZATION AND EFFECTIVE DATE SECTION 7.01. If before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. SECTION 7.02. This Act takes effect September 1, 2013.