Part I. Texas Department of Human Services

Chapter 3. Income Assistance Services

The Texas Department of Human Services (DHS) proposes amendments to §3.1002 and §3.3701, the repeal of §3.3702, and new §3.3702 and §3.3703, concerning income limits, temporary assistance for needy families standard budgetary needs, food stamp basis of issuance tables, and temporary assistance for needy families, in its Income Assistance Services chapter. The purpose of the amendments and new sections is to increase the Temporary Assistance for Needy Families (TANF) and Refugee Cash Assistance (RCA) grant amounts to equal 17% of the federal poverty income limit. Also, the number of eligibility tests will be reduced from three to two. This proposed change is based on a new state law in House Bill 1. DHS was funded to increase TANF and RCA grant amounts so that they equal approximately 17% of the federal poverty income limit.

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed sections will be in effect, fiscal implications for state governments will be an estimated additional cost of $15,124,006 for Fiscal Year (FY) 2000; $15,845,227 for FY 2001; $14,353,370 for FY 2002; $13,002,578 for FY 2003; and $11,779,467 for FY 2004. There will be no fiscal implications for local governments as a result of enforcing or administering the sections.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections is that recipients will have more money to better meet the needs of their dependent children. The proposed change will have no adverse effect on small or micro- businesses because this change will increase the grant for TANF and RCA recipients, giving them more money to spend. There is no adverse economic effect on large businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of this proposal may be directed to Mary Haifley at (512) 438-2599 in DHS's Texas Works Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-234, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under Section 2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

Subchapter J. Budgeting

40 TAC §3.1002

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which provides the department with the authority to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001- 31.0325.

§3.1002.Income Limits.

(a)

Temporary Assistance for Needy Families (TANF) [ Aid to Families with Dependent Children ]. DHS has two [ three ] eligibility tests for TANF [ AFDC ]:

[(1)

Maximum income standard. This is 185% of the AFDC budgetary need standard. All applicants and certified clients must pass this needs test. The total countable gross income of all members in the certified group may not exceed the maximum income standard for each household size.]

(1)

[ (2) ] Budgetary needs. The amount of money DHS determines is necessary to provide 100% of the basic needs to the certified group. Applicants who have not received TANF [ AFDC ] in the last four months must pass the budgetary needs test.

(2)

[ (3) ] Recognizable needs. This is 25% of budgetary needs [ The maximum grant amount for the household size ]. Applicants and certified clients must pass this needs test.

(b)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on July 12, 1999.

TRD-9904152

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: October 1, 1999

For further information, please call: (512) 438-3765

40 TAC §3.3702

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Human Resources Code, Title 2, Chapter 31, which provides the department with the authority to administer financial assistance programs.

The repeal implements the Human Resources Code, §§31.001- 31.0325.

§3.3702.Food Stamp Basis of Issuance Tables.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on July 12, 1999.

TRD-9904154

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: October 1, 1999

For further information, please call: (512) 438-3765

40 TAC §§3.3701-3.3703

The amendment and new sections are proposed under the Human Resources Code, Title 2, Chapter 31, which provides the department with the authority to administer financial assistance programs.

The amendment and new sections implement the Human Resources Code, §§31.001-31.0325.

Temporary Assistance for Needy Families [ Aid to Families with Dependent Children ] Standard Budgetary Needs [ Allowances ].

For October 1999 [ March 1994 ] and future months, the needs allowance for each size family group for Temporary Assistance for Needy Families (TANF) [ Aid to Families with Dependent Children (AFDC) ] is as follows:

Figure 1 for 40 TAC §3.3701

Figure 2 for 40 TAC §3.3701

Figure 3 for 40 TAC §3.3701

§3.3702.Temporary Assistance for Needy Families.

For October 1999 and future months, the benefit amount is an amount determined by the Texas Department of Human Services based on funds appropriated by state law.

§3.3703.Food Stamp Basis of Issuance Tables.

The Texas Department of Human Services amends the basis of issuance tables, standard deductions, and allotment levels on an annual basis each October, as required by Section 3(o) and 5(e) of the Food Stamp Act of 1977 as amended by Title VIII, Sections 804 and 809 of Public law 104- 193, Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on July 12, 1999.

TRD-9904153

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: October 1, 1999

For further information, please call: (512) 438-3765

40 TAC §3.2001

The Texas Department of Human Services (DHS) proposes to amend §3.2001, concerning eligibility requirements, in its Income Assistance Services chapter. The purpose of the amendment is to allow a child who is six months of age or younger to receive Temporary Assistance for Needy Families (TANF) benefits without providing a Social Security number (SSN) or proof that he has applied for one until the next complete review or for six months following the month the child was born, whichever is later. Making TANF and food stamp policy more alike will simplify the eligibility determination process and improve staff productivity. The rule is based on an Office of Programs simplification project.

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed section will be in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the section.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section is that households may have more money to better meet the needs of their dependent children because a child age six months or younger who does not have a Social Security number will be eligible to be included in the grant. The proposed change will have no adverse effect on small or micro-businesses because children who were previously disqualified for failure to provide an SSN will now be included in the grant until the first complete review or for six months following the month the child was born, whichever is later. There is no adverse economic effect on large businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Mary Haifley at (512) 438-2599 in DHS's Texas Works Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-235, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which provides the department with the authority to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001- 31.0325.

§3.2001. Eligibility Requirements.

(a)

Temporary Assistance for Needy Families clients must provide a Social Security number or verification of application for a Social Security number. A Social Security number or proof of application for a Social Security number for a child six months of age or younger may be postponed until the next complete review or for six months following the month the child was born, whichever is later. If the Social Security verification match between the Texas Department of Human Services (DHS) and the Social Security Administration (SSA) results in a discrepancy based on the client-provided Social Security number, the client must cooperate in clearing the discrepancy [ Aid to Families with Dependent Children clients must meet requirements for Social Security numbers as stipulated in 45 Code of Federal Regulations §205.52 ].

(b)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on July 12, 1999.

TRD-9904155

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: October 1, 1999

For further information, please call: (512) 438-3765

Chapter 841. Workforce Investment Act

Subchapter A. General Provisions

40 TAC §841.2

The Texas Workforce Commission (Commission) proposes amendments to §841.2, relating to the definitions applicable to implementation of the Workforce Investment Act (WIA).

The purposes of the amendments are to provide clarity regarding the rules for early implementation of WIA and to establish uniform understanding and interpretation of the following terms: "certificate," "certified provider," "completion" and "performance standards."

The definition of "certificate" is added to clarify that the certificate pertains to proof of successful completion of a course, sequence of courses or programs which is a minimum of 144 hours (9 credit hours) in length for the purpose of establishing initial eligibility under §841.38. The Commission selected the minimum number of hours based on recent feedback from the public requesting clarification on the definition of "certificate," particularly from community colleges, to allow for consideration of shorter duration courses or programs of training services that are non-credit, credit or continuing education offerings. After consultation with the training provider community, the Commission has proposed that a certificate program of training include a minimum of 9 credit hours, which is the equivalent of 144 clock/contact hours. This criterion is proposed in order to establish an appropriate amount of time to allow for a substantial body of knowledge to be conveyed. Within WIA, the term certificate is used in association with a program of training services. The Commission determined that a program of training services should constitute more than incidental or short-term training. Since the term is used in conjunction with postsecondary institutions, providing criterion that relates to credit or the equivalent clock/contact hours is appropriate.

The purpose of adding the terms "certified provider," "completion," and "performance standards" is to provide consistency.

Background Regarding Early Implementation. The 74th Texas Legislature and the Governor enacted Texas' landmark legislation, House Bill 1863 (H.B. 1863), in 1995. This state law reformed both the welfare and workforce systems and made Texas the nation's leader among reform-minded states. H.B. 1863 provided local elected officials the opportunity to form local workforce development boards (LWDBs) that enjoy the flexibility and authority to design and oversee the delivery of workforce development services that meet the needs of local employers and workers.

The federal Workforce Investment Act of 1998 recognizes the strides made in the development of Texas' workforce investment system and specifically provides for the state to maintain many features of H.B. 1863. Without these provisions, early implementation of WIA in Texas would be substantially more complicated. Key features of the system that Texas is preserving include the following.

The State Human Resource Investment Council, called the Texas Council on Workforce and Economic Competitiveness (TCWEC) constituted under prior consistent state law will function as the State Board.

The twenty-eight existing local workforce development areas (LWDAs), established under prior consistent state law, will function as the local workforce investment areas for purposes of WIA.

The State will continue to use the Allocation Rule established under prior consistent state law for the disbursement of WIA funds.

LWDBs established in conformity with prior consistent state law will function as the local workforce investment boards, including those functions required of a Youth Council.

In lieu of designating or certifying one-stop partners and operators as described in WIA, Texas requires LWDBs to partner with those outlined under prior consistent state law and to competitively procure the Center Operator(s).

The LWDBs will also continue to make arrangements for financial services by selecting fiscal agents in accordance with the process established in prior consistent state law set out in the Texas Government Code.

Texas bases its strategies for implementing WIA requirements for the Texas workforce development system on four key principles determined by the Governor: (1) limited and efficient state government; (2) local control; (3) personal responsibility; and (4) support for strong families. The training provider certification system is guided by these four key principles which serve as a framework to guide the development of this system in order to allow maximum flexibility, emphasize customer choice, and demand strict accountability.

Within each LWDA, the LWDB and the Commission must find all providers of training services to be eligible and qualified to provide a training program before WIA funds may be used to pay for services provided by that training program. All providers must submit written applications in order for eligibility to be determined.

As described in §841.38, the LWDBs will develop an application to be used in two situations. The first situation is that of institutions which are eligible to receive federal funds under Title IV of the Higher Education Act of 1965 and which provide a program that leads to an associate degree, baccalaureate degree, or certificate, when those institutions are seeking to be certified as an eligible provider for a program leading to an associate degree, baccalaureate degree, or certification. The second situation occurs when an entity that carries out programs under the National Apprenticeship Act is seeking certification as an eligible provider for a program under the National Apprenticeship Act.

A second application process, described in §841.39, is used in three situations. The first is when a postsecondary school is seeking certification as an eligible provider for a program which does not lead to an associate degree, baccalaureate degree, or certification. The second is when an entity that carries out programs under the National Apprenticeship Act is seeking certification as an eligible provider of a program is not regulated under the National Apprenticeship Act. The third is when any other public or private provider of training services, including community-based and faith-based organizations, seeks to be certified as an eligible provider of training services.

The Commission solicited and received comments and input into the development of the provider certification procedures through meetings with representatives of community colleges, proprietary schools, literacy training providers, apprenticeship programs and LWDBs; the creation and maintenance of a website on the Internet; and a public hearing held on March 11, 1999. The Commission adopted rules for early implementation of WIA, which became effective June 22, 1999.

Randy Townsend, Chief Financial Officer, has determined that for the first five years the rule is in effect, the following statements apply:

there are no additional estimated costs to the state and to local governments expected as a result of enforcing or administering the rule;

there are no estimated reductions in costs to the state or to local governments expected as a result of enforcing or administering the rule;

there are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing and administering the rule;

there are no foreseeable implications relating to costs or revenues to the state or to local governments as a result of enforcing or administering the amendments; and

there are no anticipated costs to persons who are required to comply with the rule as proposed.

Randy Townsend, Chief Financial Officer, has determined that there is no anticipated or foreseeable adverse impact on small businesses as a result of enforcing or administering the rule.

Jean Mitchell, Director of Workforce Development, has determined that for the first five-year period the rule is in effect, the public benefit anticipated as a result of the rule as proposed will be to add clarification and consistency to rules for early implementation of WIA.

Mark Hughes, Director of Labor Market Information, has determined that, while the proposed rule could affect private sector or public sector employment under certain circumstances, there is no significant negative impact upon employment conditions in this state as a result of the proposed section.

Comments on the proposed section may be submitted to Barbara Cigainero, Workforce Development Division, Texas Workforce Commission, 101 East 15th Street, Room 130BT, Austin, Texas 78778; Fax Number 512-463-3424; or E-mail to barbara.cigainero@twc.state.tx.us. Comments must be received by the Commission no later than 30 days from the date this proposal is published in the Texas Register .

The amendments are proposed under Texas Labor Code §301.061 which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Texas Workforce Commission programs.

The proposal affects the Texas Labor Code, Title 4.

§841.2.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.

(1)

Administrative costs - The necessary and allowable costs that are associated with the overall management and administration of the workforce investment system and which are not related to the direct provision of employment and training services, as further defined by the federal regulations and subject to the cost limitations set forth in WIA §134(a)(3)(B) and the cost principles set forth in WIA §184(a)(2)(B).

(2)

Certificate - For the purpose of establishing initial eligibility under §841.38, a document or other proof provided by an educational institution or other training provider awarded after successful completion of a course, sequence of courses or program that is a minimum 144 hours (9 credit hours) in length.

(3)

Certified provider - A training provider certified as eligible to receive training funds as authorized under WIA and state rules.

(4)

[ (2) ] Commission - The Texas Workforce Commission as established in the Texas Labor Code, §301.001 and designated by the Governor as the state administrative agency for WIA in Texas.

(5)

[ (3) ] Complainant - Any participant or other personally interested or personally affected party alleging a non-criminal violation of the requirements of WIA.

(6)

Completion - Finishing a program or course of study and receiving a formal credential as currently recognized by the Commission, a designated partner agency or State regulatory board.

(7)

[ (4) ] Customized Training - As defined in WIA §101(8), training that is designed to meet the requirements of an employer, conducted with a commitment by the employer to employ an individual on successful completion of the training and for which the employer pays not less than 50 percent of the cost of the training.

(8)

[ (5) ] Hearing Officer - An impartial party who shall preside at a hearing on a grievance.

(9)

[ (6) ] ITAs - Individual Training Accounts.

(10)

[ (7) ] LWDA - Local Workforce Development Area designated by the Governor as provided in Texas Government Code §2308.252.

(11)

[ (8) ] LWDB - Local Workforce Development Board created pursuant to Texas Government Code §2308.253 and certified by the Governor pursuant to Texas Government Code §2308.261.

(12)

[ (9) ] On-the-Job Training - As defined in WIA §101(31), training by an employer that is provided to a paid participant while engaged in productive work in a job.

(13)

[ (10) ] One-Stop Partner - An entity which makes services available to participants through a one-stop delivery system under the terms of a memorandum of agreement with a LWDB.

(14)

[ (11) ] Participant - As defined in WIA §101(34), an individual who has been determined to be eligible to participate in, and who is receiving services under, a program authorized by WIA.

(15)

Performance Standards - The minimum acceptable levels of performance based on established measures of performance as described in WIA §122.

(16)

[ (12) ] Respondent - The person, organization or agency against which a complaint has been filed for the alleged violation of the requirements of WIA.

(17)

[ (13) ] WIA - Workforce Investment Act, P.L. 105-220, 29 U.S.C.A. §1601 et seq.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on July 12, 1999.

TRD-9904175

J. Randel (Jerry) Hill

General Counsel

Texas Workforce Commission

Earliest possible date of adoption: August 22, 1999

For further information, please call: (512) 463-8812