88R11340 KKR-F
By: Hughes S.B. No. 1871
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Texas Empowerment Account pilot
program for assisting certain recipients of public benefits in
achieving self-sufficiency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 2, Human Resources Code, is
amended by adding Chapter 37 to read as follows:
CHAPTER 37. TEXAS EMPOWERMENT ACCOUNT PILOT PROGRAM
Sec. 37.001. DEFINITIONS. In this chapter:
(1) "Comptroller" means the comptroller of public
accounts.
(2) "Eligible expense" means an expense for which a
program participant may use money under the pilot program in
accordance with rules adopted by the commission and comptroller.
(3) "Family" means individuals residing in the same
household, with at least one parent or guardian and one child under
the age of eighteen.
(4) "Financial assistance benefits" means money
payments under the Temporary Assistance for Needy Families operated
under Chapter 31 or under the state temporary assistance and
support services program operated under Chapter 34.
(5) "Pilot program" means the Texas empowerment
account program established under this chapter.
(6) "Program participant" means a family enrolled in
the pilot program.
(7) "Self-sufficiency" means:
(A) being employed in a position that pays a wage
at least equal to 130 percent of the federal poverty level; and
(B) having financial savings in an amount at
least equal to $1,000.
(8) "Supplemental nutrition assistance benefits"
means money payments under the supplemental nutrition program
operated under Chapter 33.
(9) "Work" means paid private or public sector
employment, including a paid apprenticeship.
Sec. 37.002. PURPOSE. The purpose of the pilot program is
to assist low-income families in gaining permanent
self-sufficiency and eliminating the need for financial
assistance, supplemental nutrition assistance, and other
means-tested public benefits, notwithstanding the limitations and
requirements of Section 31.043.
Sec. 37.003. ESTABLISHMENT OF PILOT PROGRAM. (a) The
comptroller, in collaboration with the commission, shall establish
and administer the pilot program to provide up to 1,000 families
with funding for eligible expenses through individual empowerment
accounts.
(b) The program must operate for at least 12 months but not
more than 24 months.
Sec. 37.004. TEXAS EMPOWERMENT ACCOUNT PROGRAM
FUND. (a) The comptroller shall establish and administer the
Texas empowerment account program fund as a dedicated account in
the general revenue fund.
(b) The fund consists of:
(1) money appropriated, credited, or transferred to
the fund by the legislature;
(2) money appropriated to the fund from federal block
grants, including the Temporary Assistance for Needy Families
(TANF) block grant and the Title XX Social Services block grant;
(3) gifts, grants, and donations contributed to the
fund; and
(4) any other money available for the purposes of the
pilot program.
(c) Each quarter, the comptroller may deduct an amount from
the Texas empowerment account program fund to cover the
comptroller's costs of administering the program. The annual amount
deducted may not exceed three percent of the fund for the fiscal
year.
(d) Each quarter, the comptroller shall disburse to each
family service organization participating in the pilot program an
amount from the Texas empowerment account program fund to cover the
organization's cost of administering the program. The annual amount
disbursed between all of the family service organizations may not
exceed five percent of the fund for the fiscal year.
Sec. 37.005. GIFTS, GRANTS, AND DONATIONS. The
comptroller may solicit and accept gifts, grants, and donations
from any public or private source for any expenses related to the
administration of the program, including the initial
implementation of the program.
Sec. 37.006. FAMILY ELIGIBILITY. (a) A family is
eligible to participate in the pilot program if:
(1) at least one member of the family:
(A) is a recipient of financial assistance;
(B) is at least 18 years of age and not older than
62 years of age;
(C) is willing, physically able, and legally
able to work for at least 20 hours per week; and
(D) except as provided by Subsection (b), works
at least 20 hours per week;
(2) the family's total household income meets the
eligibility requirements for supplemental nutrition assistance
benefits; and
(3) the family includes at least one member who is a
dependent child and is at least six years of age and not older than
18 years of age.
(b) A program participant may maintain program eligibility
for a period of four weeks without meeting the work requirement in
Subsection (a)(1)(D).
(c) Income earned and program benefits received by a program
participant is included as income for purposes of determining
eligibility for any other means-tested public benefits program
providing financial assistance.
(d) A program participant is not eligible to receive
financial assistance benefits while participating in the pilot
program.
(e) A program participant may remain enrolled in the pilot
program through the conclusion of the program.
Sec. 37.007. ANNUAL PROGRAM ASSISTANCE AMOUNT. (a) The
annual program assistance amount allocated to a program participant
is equal to the amount of financial assistance benefits and
supplemental nutrition assistance benefits the participant would
be eligible to receive if the participant did not participate in the
pilot program.
(b) The commission shall provide to the comptroller
information on the amount of benefits described by Subsection (a)
for each program participant. The comptroller shall use that
information to calculate the annual program assistance amount for
each program participant.
Sec. 37.008. PROGRAM PARTICIPANT ACCOUNT. (a) The
comptroller shall establish for each program participant an account
through which program assistance money will be provided to the
participant. Money in a program participant's account may be used
only for eligible expenses.
(b) The comptroller shall provide each program participant
access to a web-based application that enables the participant to
monitor the participant's financial activity and improve the
participant's financial literacy.
Sec. 37.009. PROGRAM PAYMENT AMOUNT. (a) The comptroller
shall allocate to a program participant the annual program
assistance amount calculated under Section 37.007 in equal amounts
on or before the first days of August, November, February, and May.
(b) Any funds remaining in a program participant's program
account at the end of a fiscal year may be carried forward to the
next fiscal year or transferred to the participant's private bank
account unless another provision of this chapter mandates the
closure of the account.
(c) If a family becomes ineligible to participate in the
pilot program due to the failure to meet the work requirements under
Section 37.006, the comptroller shall:
(1) close the family's program account on the date the
family became ineligible; and
(2) return any money remaining in the account to this
state for deposit in the Texas empowerment program account.
Sec. 37.010. FAMILY SERVICE ORGANIZATION PARTICIPATION;
ELIGIBILITY; CERTIFICATION REQUIRED. (a) The comptroller shall
certify eligible organizations as family service organizations for
participation in the pilot program.
(b) The comptroller shall:
(1) develop the form and manner for applying for
certification as a family service organization; and
(2) post on the comptroller's Internet website an
application form for family service organizations.
(c) To be eligible for certification as a family service
organization by the comptroller and participate in the pilot
program, an organization must be:
(1) exempt from federal tax under Section 501(a),
Internal Revenue Code of 1986, by being recognized as an exempt
organization in Section 501(c)(3) of that code;
(2) in good standing with this state;
(3) able to administer the pilot program at the
participant level, including by:
(A) accepting, processing, and tracking
applications for program participation;
(B) approving families for participation in the
program; and
(C) providing, either directly or through
referral to a partner organization, services to enable program
participants to achieve self-sufficiency; and
(4) able to provide personal financial literacy
education to program participants that includes information on the
importance of the success sequence and how to analyze the
participant's financial activity through the web-based application
described by Section 37.008(b).
Sec. 37.011. PROGRAM PARTICIPANT APPLICATION. (a) A
certified program family service organization shall:
(1) develop an application process for families
interested in participating in the pilot program;
(2) make a program application form readily available
to potential participants using various means, including by posting
the application on the organization's Internet website; and
(3) allow a family to submit a program application to
the organization electronically.
(b) A certified program family services organization shall
provide to each family who submits an application a document that
describes the operation of the pilot program, including:
(1) eligible program expenses;
(2) the organization's expense reporting
requirements;
(3) a description of the responsibilities of program
participants, including the responsibilities under Section 37.011;
and
(4) the role and responsibilities of family service
organizations in the program.
Sec. 37.012. PARTICIPATION REQUIREMENTS. (a) A program
participant must agree to:
(1) use program money only for eligible or allowed
expenses; and
(2) notify the participant's family service
organization if the participant is no longer eligible for the
program not later than the 30th day after the date of becoming
ineligible.
(b) A program participant shall provide to the
participant's family service organization any information
necessary to verify the participant's continued eligibility for the
pilot program.
(c) A program family service organization may not provide
services to a program participant if any person in the organization
is a participant's immediate family or household member.
Sec. 37.013. FAMILY SERVICE ORGANIZATION DUTIES. (a) A
family service organization shall enroll a family in the pilot
program if:
(1) the family applies to participate in the program
and the organization determines the family meets the program's
eligibility requirements; and
(2) the organization has the capacity to provide
services to the family.
(b) A family service organization shall create a case plan
for a family enrolled in the pilot program through the organization
that:
(1) is developed in collaboration with the family;
(2) identifies services the organization will provide
to enable the family to achieve self-sufficiency;
(3) clearly defines expectations for the family's
participation in the program; and
(4) outlines a pathway and timeline for the family to
achieve self-sufficiency.
(c) A family service organization shall annually provide to
each program participant the information described by Section
37.011(b). The organization may provide the information
electronically.
Sec. 37.014. FAMILY SERVICE ORGANIZATION AUTONOMY;
CHALLENGE TO RULE. (a) A family service organization that
receives money under the pilot program is not an agent of the state
or federal government.
(b) The pilot program does not expand the regulatory
authority of this state to impose any additional regulation on a
family service organization participating in the program except for
regulations that are reasonably necessary to administer the program
in accordance with this chapter.
(c) A family service organization participating in the
pilot program may not be required to modify its creed, practices, or
operations to receive money under the program.
(d) In any proceeding challenging a rule adopted by the
comptroller or the executive commissioner, the comptroller or
executive commissioner has the burden of proof to establish that
the rule:
(1) is necessary to implement or administer the
program in accordance with this chapter; and
(2) does not impose an undue burden on a program
participant or a family service organization that receives or seeks
to receive money under the program.
Sec. 37.015. RANDOM AUDITING. (a) The comptroller may
contract with a private entity to randomly audit family service
organizations participating in the pilot program as necessary to
ensure compliance with program requirements.
(b) During an audit conducted under this section, the
comptroller or private entity may require that a program
participant or family service organization provide information and
documentation regarding any payment made from the Texas empowerment
account program fund.
(c) A private entity that conducts an audit under this
section shall report to the comptroller any violation of this
chapter or other relevant law the entity discovers during the
audit.
(d) A finding that pilot program money was used for an
expense that is not eligible under the program does not affect the
validity of any payment made for an eligible expense.
Sec. 37.016. SUSPENSION OF ACCOUNT. (a) If the
comptroller determines that a program participant fails to comply
with the program requirements or applicable law, the comptroller
shall suspend the participant's program account.
(b) On suspension of an account under Subsection (a), the
comptroller shall provide written notice to the program participant
and the participant's family service organization that the account
has been suspended and no further payments may be made from the
account. The notice must specify the grounds for the suspension and
state that the program participant must respond to the notice and
take any corrective action required by the comptroller not later
than the 10th business day after the date of receiving the notice.
(c) On the expiration of the 10-day period under Subsection
(b), the comptroller shall:
(1) order permanent closure of the suspended account
and declare the participant ineligible for the program;
(2) order temporary reinstatement of the account,
conditioned on the performance of a specified action by the
participant; or
(3) order full reinstatement of the account.
(d) The comptroller may recover money distributed under the
program that was used for ineligible expenses from the program
participant or the family service organization that received the
money if the participant's account is suspended or closed under
this section.
Sec. 37.017. REFERRAL TO ATTORNEY GENERAL. (a) On
receipt of evidence of the fraudulent use of an account, the
comptroller or a family service organization may refer the case to
the attorney general for investigation.
(b) With the consent of the appropriate local county or
district attorney, the attorney general has concurrent
jurisdiction with the consenting local prosecutor to prosecute an
offense referred to the attorney general under Subsection (a).
Sec. 37.018. DATA COLLECTION. (a) The comptroller shall
collect the following information at the time the pilot program
begins operating, on a quarterly basis while the program is
operating, and at the conclusion of the program:
(1) taxpayer revenue spent per program participant;
(2) state money appropriated per program;
(3) federal money received per program;
(4) the number of recipients enrolled in or otherwise
receiving benefits under each program;
(5) aggregate demographic and socioeconomic
information on recipients under each program including information
relating to:
(A) the age, race or ethnicity, and gender of
recipients;
(B) the highest level of education completed by
recipients;
(C) whether the recipients reside in an urban or
rural area of the state;
(D) the average household income of recipients
under each program;
(E) the employment status of recipients or, if
recipients are dependents, of the parents or guardians of
recipients under each program;
(F) the number of hours per week worked by
recipients;
(G) the marital status of recipients or, if
recipients are dependents, of the parents or guardians of
recipients under each program;
(H) the average number of dependents in recipient
households under each program;
(I) other safety net benefits or government
provided subsidies received by recipients;
(J) duplicative services and administrative
activities among programs;
(K) the percentage of state money appropriated to
each program that is directly spent on providing benefits to
recipients under the program and the percentage that is spent on
staff and other administrative costs;
(L) the percentage of recipients who become
ineligible for each program because the recipient no longer meets
the income eligibility requirements; and
(M) the average length of time between an initial
application for benefits and approval under each program;
(6) a cost-benefit analysis that compares the costs of
providing each program with the program's effectiveness at
transitioning recipients to self-sufficiency; and
(7) a statistical analysis of the data collected under
Subdivisions (1) and (2).
(b) Not later than the 10th day following the last day of
each calendar quarter during the pilot program's operation, the
comptroller shall post on its Internet website outcomes for all
program family service organizations during the previous calendar
quarter including the information collected under Subsection (a).
Sec. 37.019. STUDY. (a) On conclusion of the pilot
program, the comptroller, using existing resources, shall conduct a
study on the outcomes of the pilot program based on the information
collected under Section 37.018. Using methodological best
practices, the comptroller shall compare the outcomes achieved by
families who participated in the pilot program with similarly
situated individuals who did not participate in the program.
(b) In conducting the study, the comptroller may collect
necessary information from a state agency that administers or
operates a safety net program or a family service organization that
participated in the pilot program. At the request of the
comptroller, a state agency or family service organization shall
provide the requested information within a reasonable time.
Sec. 37.020. RULES; PROCEDURES. (a) The comptroller and
the executive commissioner shall adopt rules and procedures
necessary to implement, administer, and enforce this chapter.
(b) A rule adopted under Subsection (a) is binding on an
organization that applies for certification as a family service
organization and a state or local governmental entity, including a
political subdivision of this state, as necessary to implement,
administer, and enforce this chapter.
SECTION 2. As soon as practicable after the effective date
of this Act, the comptroller of public accounts and the executive
commissioner of the Health and Human Services Commission shall
adopt rules necessary to implement Chapter 37, Human Resources
Code, as added by this Act.
SECTION 3. 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, 2023.