By: Perry S.B. No. 2124 (In the Senate - Filed March 10, 2017; March 28, 2017, read first time and referred to Committee on Finance; April 27, 2017, reported adversely, with favorable Committee Substitute by the following vote: Yeas 11, Nays 2; April 27, 2017, sent to printer.) Click here to see the committee vote COMMITTEE SUBSTITUTE FOR S.B. No. 2124 By: Hancock A BILL TO BE ENTITLED AN ACT relating to a pilot program for assisting certain recipients of public benefits to gain permanent self-sufficiency. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.02241 to read as follows: Sec. 531.02241. PILOT PROGRAM FOR SELF-SUFFICIENCY OF CERTAIN PERSONS RECEIVING TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BENEFITS OR OTHER SERVICES. (a) In this section: (1) "Financial assistance benefits" means money payments under the Temporary Assistance for Needy Families (TANF) program authorized by Chapter 31, Human Resources Code. (2) "Living wage" means an amount of money, determined by a market-based calculation that uses geographically specific expenditure data, that is sufficient to meet a family's minimum necessary spending on basic needs, including food, child care, health insurance, housing, and transportation. (3) "Self-sufficiency" means being employed in a position that pays a living wage, having financial savings in an amount that is equal to at least three months of living wage income, and owing only a reasonable amount of debt. (b) The commission shall develop and implement a pilot program for assisting up to 100 eligible participants under this section to gain permanent self-sufficiency and no longer require financial assistance or other public benefits. (c) The pilot program will test waiving, for at least 24 months but not more than 60 months, income and asset limit eligibility requirements for financial assistance benefits. The waiver of any income limit requirement must be in an amount that does not exceed the amount, based on a participant's family makeup and the living wage in the participant's geographical area of residence, determined to be necessary for the purposes of the program. The waiver of any asset limit requirement must be in an amount that is equal to or less than three months of the participant's income. (d) The pilot program must be designed to allow social services providers, public benefit offices, and other community partners to refer potential participants to the program. A person is eligible to participate in the program established under this section if the person: (1) is a recipient of financial assistance benefits; (2) has a total household income that is less than a living wage based on the recipient's family makeup and geographical area of residence; (3) is at least 18 but not more than 62 years of age; and (4) is willing and legally able to be employed. (e) The pilot program must be designed to assist eligible participants in attaining self-sufficiency by: (1) identifying eligibility requirements for the benefits described by Subsection (d)(1) that may be waived for a limited period of time and that, if applied, would impede self-sufficiency; (2) implementing strategies, including waiving the eligibility requirements identified in Subdivision (1), to remove barriers to self-sufficiency; and (3) moving eligible participants through progressive stages toward self-sufficiency that include the following phases: (A) an initial phase in which a participant moves out of an emergent crisis by securing housing, medical care, and financial assistance benefits; (B) a second phase in which the participant moves toward stability by securing employment and, if necessary, child care and by participating in services that build the financial management skills necessary to meet financial goals; (C) a third phase in which the participant transitions to self-sufficiency by securing employment that pays a living wage, reducing debt, and building savings; and (D) a final phase in which the participant attains self-sufficiency by retaining employment that pays a living wage, amassing at least three months of living wage savings, and eliminating debt so that the participant will no longer be dependent on financial assistance or other public benefits. (f) A person who wishes to participate in the pilot program must attend an in-person intake meeting with a program case manager. During the intake meeting the case manager shall: (1) determine whether: (A) the person meets the eligibility requirements under Subsection (d); and (B) the income or asset limit eligibility requirements may be waived under the program; (2) review the person's demographic information and household financial budget; (3) assess the person's current financial and career situations; (4) collaborate with the person to develop and implement strategies for removing barriers to attaining self-sufficiency, including waiving income and asset limit eligibility requirements for financial assistance benefits; and (5) if the person is determined to be eligible for and chooses to participate in the program, schedule a follow-up meeting to further assess the person's crisis, review available referral services, and create a service plan. (g) The pilot program must provide each participant with holistic, wraparound case management services to ensure that goals included in a participant's service plan are achieved. A participant must be assigned a program case manager who shall: (1) if the participant is determined to be eligible, provide the participant with a waiver described by Subsection (c), allowing the participant to continue receiving financial assistance benefits; (2) assess, at the follow-up meeting scheduled under Subsection (f)(5), the participant's crisis, review available referral services, and create a service plan; and (3) during the initial phase of the program, create medium- and long-term goals consistent with the strategies developed under Subsection (f)(4). (h) The pilot program established under this section must operate for at least 24 months. The program shall also include 16 additional months for: (1) planning and designing the program before the program begins operation; and (2) data collection and program evaluation after the program begins operation. (i) The commission shall develop and implement the pilot program established under this section with the assistance of the Texas Workforce Commission, local workforce development boards, faith-based and other relevant public or private organizations, and any other entity or person the commission determines appropriate. (j) The commission shall monitor and evaluate the pilot program in a manner that allows for promoting research-informed results of the program. (k) On the conclusion of the pilot program but not later than 24 months following the date on which the program begins operation, the commission shall report to the legislature on the results of the program. The report must include: (1) an evaluation of the program's effect on eligible participants in achieving self-sufficiency and no longer requiring public benefits; (2) the impact to this state on the costs of the financial assistance benefits program and the child care management services program operated by the Texas Workforce Commission; and (3) recommendations on the feasibility and continuation of the program. (l) During the operation of the pilot program, the commission shall provide to the legislature additional reports concerning the program that the commission determines to be appropriate. (m) The executive commissioner and the Texas Workforce Commission may adopt rules to implement this section. (n) This section expires September 1, 2022. SECTION 2. 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 3. This Act takes effect only if a specific appropriation for the implementation of the Act is provided in a general appropriations act of the 85th Legislature. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017. * * * * *