Part 1.
TEXAS DEPARTMENT OF HUMAN SERVICES
Chapter 3.
TEXAS WORKS
The Texas Department of Human Services (DHS) adopts amendments to §§3.1002,
3.1003, and 3.1101 without changes to the proposed text published in the January
21, 2000, issue of the
Texas Register
(25
TexReg 357).
Justification for the amendments is to increase the earned income deductions
for working recipients of Temporary Assistance for Needy Families (TANF) and
to require TANF recipients to be mandatory participants in the Choices programs
with the Texas Workforce Commission, even if the recipient is employed. This
rule change will encourage self-sufficiency through employment and training
for enhanced earning ability.
The amendments will function by ensuring that the state will be in compliance
with a new state law, House Bill 1, Article II, Department of Human Services,
Item 31, Page II- 64, passed by the 76th Legislature.
During the comment period, DHS received comments from the Houston Welfare
Rights Organization. A summary of the comments and DHS's response follows:
Comment: The commenter requested that the word "reasonably" be inserted
in §3.1101(a) between the words "component" and "required."
Response: The amendment does not address this part of the rule. Additionally,
good cause is currently addressed in this section making the addition of the
word "reasonably" unnecessary.
Comment: The commenter stated that a person's work schedule should not
be interfered with due to a Choices activity.
Response: Human Resources Code 31.012 establishes work requirements and
places the administration of these activities under the Texas Workforce Commission.
DHS does not have the statutory authority to determine TANF participation
work activity requirements.
Subchapter J. BUDGETING
40 TAC §3.1002, §3.1003
The amendments are adopted under the Human Resources Code,
Title 2, Chapter 31, which provides the department with the authority to administer
financial assistance programs.
The amendments implement the Human Resources Code, §§31.001-
31.0325.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on March 17, 2000.
TRD-200002010
Paul Leche
General Counsel, Legal Services
Texas Department of Human Services
Effective date: April 6, 2000
Proposal publication date: January 21, 2000
For further information, please call: (512) 438-3765
40 TAC §3.1101
The amendment is adopted 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.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on March 17, 2000.
TRD-200002011
Paul Leche
General Counsel, Legal Services
Texas Department of Human Services
Effective date: April 6, 2000
Proposal publication date: January 21, 2000
For further information, please call: (512) 438-3765
Chapter 835.
SELF-SUFFICIENCY FUND
The Texas Workforce Commission (Commission) adopts the amendments
to §§835.1 - 835.3, and 835.11, and adopts new §835.4, concerning
the Self-Sufficiency Fund, with changes to the proposed text as published
in the December 17, 1999, issue of the
Texas Register
(24 TexReg 11251).
Part of the Commission's innovative system of workforce training and services
throughout the State of Texas is the Self-Sufficiency Fund. Some of the primary
goals of the Commission are to prepare individuals for employment, and to
place and retain individuals in that employment. It is also the goal of the
Commission for all participants entering a training project under the Self-Sufficiency
Fund to successfully complete the project and become self-sufficient. The
Commission is also required by Texas Labor Code, §301.001(b), to meet
the needs of the businesses of this state for the development of a highly
skilled and productive workforce as well as meeting the needs of the workers
of this state for education and skills. The Commission is specifically directed
to assist individuals in making the transition into the workforce from public
assistance. The 75th Legislature in House Bill 1 (1997) directed the Commission
to develop a Self-Sufficiency Fund to work with employers and training organizations
to provide training for targeted employment of Temporary Assistance for Needy
Families (TANF) recipients as a strategy to increase long-term success in
retention of employment by those TANF recipients. The 76th Legislature in
House Bill 343 (1999) added changes to the provisions applicable to the Self-Sufficiency
Fund.
In response to the passage of the Personal Responsibility and Work Opportunity
Reconciliation Act (PRWORA) enacted in 1996, the Administration for Children
and Families (ACF) issued final regulations for the TANF program. These regulations
are based in part on the following principles: (1) Welfare reform should help
people transition from welfare to work; (2) Welfare should be a short-term
transitional experience, not a way of life; (3) Parents -- both custodial
and noncustodial -- should receive the assistance necessary to help their
families in the transition from welfare to work; (4) Solutions to poverty
and welfare dependency should not be "one-size fits all;" and (5) Federal
and state government should focus less attention on eligibility determinations
and place more emphasis on program results. In light of these principles,
it is the intent of the Commission to make the Self-Sufficiency Fund available
to more people who are at risk of becoming dependent on public assistance.
The Commission intends that not only TANF recipients but also those individuals
at risk of becoming dependent on public assistance be eligible for services
under the Self-Sufficiency Fund. While eligibility for Self-Sufficiency Fund
services is open to TANF recipients as well as individuals who are at risk
of becoming dependent on public assistance, the first priority of the Self-Sufficiency
Fund is to assist current TANF recipients in obtaining the education and skills
necessary to enter employment and become independent of public assistance.
The rules describe the operation of the Self-Sufficiency Fund and implement
the provisions of the recent legislation.
Comments were received from the Texas Youth Commission, Valley Initiative
for Development & Advancement (VIDA), J. L. Steel Inc., Texas Engineering
Extension Service, Renaissance Computer Group, Granite Construction Company,
Montgomery College, Gulf Coast Career Center, Association of General Contractors
(AGC) of Texas, m3 The Healthcare Learning Company, Center for Public Policy
Priorities, Capital IDEA, Austin Community College, and two State Representatives.
The majority of the commenters supported the changes and some commenters requested
additional clarification. The specific comments are set forth as follows:
Comment: The majority of the commenters supported the expansion of eligibility
to include those individuals at risk of becoming dependent on public assistance.
One of these commenters stated that by enhancing the scope of the Self-Sufficiency
Fund, recruiting and placement problems would be greatly reduced. This commenter
also stated that a larger candidate pool with diverse capabilities would assist
in pulling industry partners into a collaborative effort that would lead to
more job placements. Another commenter suggested that enhancing the program
scope, would greatly reduce recruiting and placement problems. Several commenters
suggested criteria for defining individuals at risk of becoming dependent
on public assistance as one or more of the following: food stamp recipients,
Food Stamp Employment and Training clients, noncustodial parents under Welfare-to-Work
(WtW), youth and adult ex-offenders, incarcerated youth offenders, homeless
individuals, military veterans, individuals living below a set percentage
of federal poverty guidelines, Medicaid and Social Security Insurance (SSI)
recipients, underemployed individuals (as meaning those persons earning wages
less than $7.50 hourly), and individuals living below certain wage guidelines.
Another commenter suggested using changes in household composition or a crisis
in the household (such as a household that has received domestic violence
services, loss of a primary wage earner during the last 12 months, or those
waiting for housing assistance), continuing poverty (such as those individuals
that have received TANF at some point during the last 24 months), and inadequate
education (such as individuals lacking a high school diploma or a GED) or
inadequate work history (such as those receiving inadequate wages or in intermittent
work) as the criteria.
Response: The Commission appreciates the commenters' support and agrees
that the expansion of eligibility will help make the Self-Sufficiency Fund
available to more people who are at risk of becoming dependent on public assistance.
The Commission intends that the Self-Sufficiency Fund should be available
to help avoid the risk of individuals becoming dependent on public assistance,
as well as assist individuals in making the transition into the workforce
from public assistance. The Commission agrees with clarifying the definition
of individuals at risk of becoming dependent on public assistance based on
several of the commenters' recommendations to provide more consistency in
interpreting the proposed rules. The Commission believes that some of the
groups of individuals that commenters suggested should not be included in
the definition of individuals at risk because other funds are available to
assist them, such as those funds available to help youth offenders and military
veterans. As such, the definition of individuals at risk of becoming dependent
on public assistance is as follows: "An individual who is a member of a food
stamp household." The Commission believes that individuals should receive
the assistance necessary to help make the transition from welfare to work.
In addition, there is an existing process to determine who is receiving food
stamps that already would have been performed and would not require the creation
of a new eligibility review process.
Comment: One commenter suggested that the individuals "at risk" criteria
should be determined by the grant recipient that develops customized training
projects and provides case management of the at risk individuals in these
projects.
Response: The Commission believes that a statewide definition for individuals
at risk is important for consistency and efficiency and that it is the Commission's
responsibility to interpret the statute in light of the legislative intent
to set the foundation for implementation of the Self-Sufficiency Fund.
Comment: Two commenters suggested that the first priority for the Self-Sufficiency
Fund should remain current TANF recipients. One commenter suggested that a
more efficient referral process at the local level should be implemented,
that the rules include a plan for client referral, that priority be given
to grant applicants who have documented plans for referral of clients, and
that priority should also be given to increasing wages. One commenter stated
that language should be added to the preamble to clarify that while eligibility
for the Self-Sufficiency Fund is being expanded, the priority population for
Self-Sufficiency Fund services is current TANF recipients, particularly Tier
3 recipients.
Response: The Commission agrees and has added clarification that the first
priority of the Self-Sufficiency Fund shall remain current TANF recipients,
and that proposals from potential grant recipients shall be given priority
based on plans that (1) target enrollment as primarily for TANF recipients,
(2) contain evidence of established referral procedures or agreements, and
(3) emphasize recruitment of eligible trainees. The Commission agrees and
believes that a plan for client referral should be required and that priority
should be given to those projects that include such a plan. The Commission
believes that the rules encourage job placement as well as higher wages.
Comment: Three of the commenters supported the revision of the definition
of community- based organization (CBO). One commenter disagreed with removing
the following language "a private nonprofit organization which provides for
education, vocational education, rehabilitation, job training...." Another
commenter was concerned that the new definition of CBO would no longer encompass
that organization.
Response: The Commission appreciates the commenters' support. The new definition
as required by the Legislature expands upon those entities that may serve
as CBOs. The Commission agrees with the new definition and interprets the
language as continuing to allow "private nonprofit organizations which provide
for education, vocational education, rehabilitation, job training..." to participate
in the Self-Sufficiency Fund as envisioned by the Legislature. The language
change is not substantively different from the prior language in the former
rule and does not mandate that the CBOs perform services rather than contract
for them.
Comment: One commenter suggested changes to the funding system currently
used in Self-Sufficiency Fund contracts.
Response: The Commission supports the current performance-based system
of funding in the Self-Sufficiency Fund contracts and does not concur with
the suggested changes to the funding system.
Comment: One commenter supported the new section §835.4 because it
is important to allow for latitude for unforeseen events.
Response: The Commission agrees that the new provision will assist the
Commission in carrying out the intent of the Legislature in administering
the Self-Sufficiency Fund.
Comment: One commenter requested clarification as to whether the proposed
rules would allow for the application of the new federal Welfare-to-Work (WtW)
regulations.
Response: The Self-Sufficiency Fund is separate from WtW, and the federal
WtW rules do not apply to the Self-Sufficiency Fund. Specifically, the Self-Sufficiency
Fund is based on an initiative of the Texas Legislature to focus the use of
TANF funds available to the state as provided in Texas Labor Code Chapter
309, relating to the Self-Sufficiency Fund. The summarized highlights of proposed
draft regulations for the federal WtW and Child Support Amendments of 1999,
forwarded by the commenter, do not apply to the TANF-funded Self-Sufficiency
Fund. In April 1999, new federal TANF rules became final. The new federal
TANF rules set forth broader eligibility provisions for use of TANF funds
on a wide range of services to assist persons who are receiving, have received,
are transitioning off of or are at risk of becoming dependent on public assistance.
Subchapter A. GENERAL PROVISIONS REGARDING THE SELF-SUFFICIENCY FUND
Subchapter K. EMPLOYMENT SERVICES
Part 20.
TEXAS WORKFORCE COMMISSION