TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 3. TEXAS WORKS

The Texas Department of Human Services (DHS) proposes amendments to §3.301, concerning responsibilities of clients and the Texas Department of Human Services (DHS), §3.501, concerning household determination, §3.1104, concerning failure to comply with Title IV-A employment program, §3.1801, concerning aid to families with dependent children (AFDC) child support requirements, §3.1901, concerning aid to families with dependent children (AFDC) school attendance requirements, §3.3904, concerning household determination, §3.6001, concerning applicability of aid to families with dependent children (AFDC) policies resulting from Human Resources Code, §31.0031, relating to the personal responsibility agreement, §3.6002, concerning applicability of aid to families with dependent children (AFDC) policies resulting from Human Resources Code, §31.0065, relating to time-limits, and §3.7203, concerning eligibility requirements; and to repeal §3.3909, concerning failure to comply with job opportunities and basic skills (JOBS) program, §3.6003, concerning applicability of aid to families with dependent children (AFDC) policies resulting from Human Resources Code, §31.0035, relating to transitional benefits, and §3.6004, concerning applicability of aid to families with dependent children (AFDC) policies resulting from Human Resources Code, §31.0031, dependent child's income; Human Resources Code, §31.012, mandatory work or participation in employment activities through the job opportunities and basic skills training program; Human Resources Code, §31.014, two-parent families; and Human Resources Code, §31.032, investigation and determination of eligibility. In addition, DHS is changing the name of subchapter MM to "Temporary Assistance for Needy Families--Unemployed Parent Program."

James R. Hine, Commissioner, has determined that for the first five-year period the proposed sections will be in effect there will be fiscal implications for state government as a result of enforcing or administering the sections. There will be no fiscal implications for local governments as a result of enforcing or administering the section.

The effect on state government for the first five-year period the sections will be in effect is an estimated additional cost of $477,000 in fiscal year (FY) 2002; $0 in FY 2003; $0 in FY 2004; $0 in FY 2005; and $0 in FY 2006.

Mr. Hine also has determined that for each year of the first five years the amendments and repeals are in effect, the public benefit anticipated as a result of adoption of the sections will be the encouragement of TANF recipients to comply with child support requirements, and encouragement of minor parents to attend high school. These sections will decrease the number of individuals who rely on TANF as their only means of support and encourage self-reliance. These rules also make the state compliant with the Personal Responsibility and Work Opportunity Act (PRWORA) of 1996. The removal of TANF control groups will create consistency by making the same TANF policy applicable to all TANF applicants and recipients after April 1, 2002. There will be no effect on small or micro businesses as a result of enforcing or administering the sections because the sections relate to PRWORA, not the operation of businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections. There is also no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Eric McDaniel at (512) 438-2909 in DHS's Texas Works policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-058, 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, DHS 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 C. THE APPLICATION PROCESS

40 TAC §3.301

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.030.

§3.301.Responsibilities of Clients and the Texas Department of Human Services (DHS).

(a) To apply, the client must complete the application process. Clients must:

(1)-(4) (No change.)

(5) provide proof of any eligibility factor specified in Chapter 3 of this title (relating to Texas Works [ Income Assistance Services ]). Clients have the primary responsibility for providing proof needed by DHS to determine their eligibility and benefits. DHS allows clients 10 calendar days to provide requested proof.

(6) (No change.)

(7) comply with the requirement to attend a workforce orientation unless the individual meets the exception criteria as specified in §3.7302 of this title (relating to Exceptions to the Workforce Orientation Requirements --Temporary Assistance for Needy Families (TANF) ).

(b) DHS mails or gives applications for Temporary Assistance for Needy Families (TANF) [ AFDC ] and food stamps to clients on the same day they are requested. DHS must take the application when the client gives it if it contains the information specified in §3.303 of this title (relating to Receipt of Application-Acceptability Factors).

(c) (No change.)

(d) Additional state and client responsibilities are explained by eligibility staff to households as a condition of TANF [ Aid to Families with Dependent Children (AFDC) ] eligibility in Texas as specified in paragraphs (1)- (5) [ (6) ] of this subsection.

[ (1) Affected areas. The rules in this section apply to recipients statewide except those designated by DHS as members of the State Welfare Reform Control Group as described in §3.6001 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0031, Relating to the Personal Responsibility Agreement).]

(1) [ (2) ] Requirements.

(A) State requirements. The state will:

(i) provide recipients with help in finding employment and necessary support services within available resources;

(ii) provide support services to strengthen the family such as life skills and parenting skills training;

(iii) ensure that programs administered are efficient, fraud-free and easily accessible;

(iv) gather accurate client information;

(v) promote the development of community resources;

(vi) promote clear and tangible goals for recipients;

(vii) enable parents to provide for their children's basic necessities in a time-limited benefits program;

(viii) promote education, job training and workforce development; and

(ix) give communities the opportunity to develop alternative programs that meet the unique needs of local recipients.

(B) Client requirements. DHS requires each adult TANF [ AFDC ] recipient, including minor parents applying as a caretaker/second parent, as a condition of eligibility to sign a personal responsibility agreement as specified in Human Resources Code, §31.0031(a). Unless exempted by Human Resources Code, §31.0031(f), regarding unavailability of funding for support services, DHS requires household members to comply with requirements listed in Human Resources Code, §31.0031(d) , after the agreement has been signed by an adult recipient, or the household is subject to a penalty as described in paragraph (4) [ (5) ] of this subsection. Additionally, the requirements and penalties related to immunizations specified in Human Resources Code, §31.0031(d)(2) , apply to cases in which the adult caretaker relative is not a certified recipient. For the parenting skills training specified in Human Resources Code , §31.0031(d)(8), DHS requires participation by certified caretakers and second parents of a certified child under age five and teen parents. Others may voluntarily participate.

(2) [ (3) ] Establishing compliance. Compliance with Human Resources Code, §31.0031(d) , is established in the following manner:

(A) Recipients must provide proof of compliance with provisions in Human Resources Code, §31.0031(d)(2),(6), and (7) , at each periodic review. DHS accepts the following as proof of compliance:

(i) Human Resources Code, §31.0031(d)(2). For Texas Health Steps medical screens, DHS uses information from National Heritage Insurance Company's (NHIC's) paid claims system , [ ; ] or secondary verification provided by staff of the Texas Department of Health ( TDH ) [ as a backup ]. For the immunization requirement, DHS accepts immunization records completed by a doctor or other medical professional licensed to perform immunization services indicating that a child's immunizations are current or , if not current , that the medical provider has established an alternate schedule for the child. DHS also accepts verification of school attendance at a public school in Texas[ , ] or proof that a child is current for Texas Health Steps as proof for purposes of meeting the immunization requirement.

(ii) Human Resources Code, §31.0031(d)(6) and (7). DHS accepts written or verbal proof from the school that each household member, unless exempted under Human Resource Code, §31.0031(d)(6) , is attending school regularly (as determined by the school).

(iii) Human Resources Code, §31.0031(d)(8). DHS accepts written or verbal proof of training completion from the person or organization that provided training.

(B) Recipients are considered to be in compliance related to the sections of the Human Resource Code[ , ] described in clauses (i)-(iv) of this subparagraph , unless noncompliance is determined.

(i) Human Resources Code, §31.0031(d)(4) , unless noncompliance is determined pursuant to §3.1104 of this title (relating to Failure to Comply with Title IV-A Employment [ the Job Opportunities and Basic Skills (JOBS) ] Program);

(ii) Human Resources Code, §31.0031(d)(3) , unless DHS verifies the recipient voluntarily quit a job;

(iii) Human Resources Code, §31.0031(d)(5) , unless DHS determines the recipient has, since signing the Personal Responsibility Agreement, [ has ] committed and been convicted of, or has a deferred adjudication for

(I) using, selling, or possessing marijuana or any other controlled substance in violation of Health and Safety Code, Chapter 481, or

(II) the abuse of alcohol; or

(iv) Human Resources Code, §31.0031(d)(1) , unless noncompliance is determined pursuant to §3.1801 of this title (relating to Temporary Assistance for Needy Families (TANF) Child Support Requirements [ Aid to Families with Dependent Children Child Support Requirements ]).

(3) [ (4) ] Failure to sign the agreement. If a member of the household who is required to sign the agreement fails or refuses to sign, the application or case for the entire TANF [ AFDC ] household is denied.

(4) [ (5) ] Penalties for noncompliance with requirements. Failure to comply results in the penalties specified in subparagraphs (A)-(D) of this paragraph.

(A) Penalty amounts for noncompliance with Human Resources Code, §31.003(d), are referenced in §3.1801 of this title (relating to Temporary Assistance for Needy Families (TANF) Child Support Requirements). Penalty amounts for noncompliance with Human Resources Code, §31.0031(d)(4), result in a financial penalty of the grant amount equal to the recognizable needs figure of [ §31.0031(d)(1) and (4). Noncompliance results in a financial penalty of the grant amount equal to the recognizable needs figure of ]:

(i) a single parent if one adult fails to comply; or

(ii) a caretaker and second parent if two adults are subject to a noncompliance penalty in the same month.

(B) Penalty amounts for noncompliance with each of the remaining requirements specified in Human Resources Code, §31.0031(d). Noncompliance results in a monthly financial penalty of $25 for each separate determination of noncompliance until the penalty has ended, subject to the caps specified in subparagraph (C) of this paragraph.

(C) Penalty caps. The maximum penalty is $75 when three or more penalties as described in subparagraph (B) of this paragraph apply for the same month. If penalties pursuant to subparagraphs (A) and (B) of this paragraph are applicable for the same month, DHS applies only the penalty or penalties pursuant to subparagraph (A) of this paragraph.

(D) Penalty periods. DHS starts penalty periods beginning with the earliest month benefits can be adjusted. The penalty for noncompliance with Human Resources Code, §31.0031(d)(4) , is imposed for the time period specified in §3.1104 and §3.1105 of this title (relating to Failure to Comply with Title IV-A Employment [ the Job Opportunities and Basic Skills (JOBS) ] Program and Reestablishing [ Establishing ] Eligibility). The penalty for noncompliance with Human Resources Code, §31.0031(d)(3) , is imposed for three consecutive months, or fewer than three months, if the recipient returns to that job or another comparable job, according to the regulations applicable to the Food Stamp Program, as specified in 7 Code of Federal Regulation §273.7(n)(5)(ii), relating to voluntary quit. The penalty for noncompliance with Human Resources Code, §31.0031(d)(5) , is imposed for six consecutive months. The penalties for noncompliance with requirements specified in Human Resources Code, §31.0031(d)(1), (2), (6), (7), and (8) , remain in effect until the month after the noncompliance ends. DHS considers noncompliance with these requirements to have ended as specified in:

(i) Human Resources Code, §31.0031(d)(1). DHS is notified by the Title IV-D agency of the parent's compliance with child support requirements.

(ii) Human Resources Code, §31.0031(d)(2). Medical screening for the child is completed, treatments are completed, or the recipient has shown good faith effort because treatments are initiated by the medical provider. Immunizations are current or the recipient has shown good faith effort because an immunization schedule is established by the medical provider.

(iii) Human Resources Code, §31.0031(d)(6) and (7). The recipient has shown a good faith effort because he or she provides verification from the school that the required student has attended school without an unexcused absence (as determined by the school) for one calendar month.

(iv) Human Resources Code, §31.0031(8). For recipients participating in the Choices [ JOBS ] program, the case manager monitors and ensures the client participates and completes the parenting skills program. The case manager determines compliance. The eligibility worker performs these actions for either Choices or non- Choices [ JOBS or non-JOBS ] clients.

(E) Delayed penalties. If a particular penalty cannot be imposed initially due to the penalty cap explained in subparagraph (C) of this paragraph, it will be imposed later during the penalty period if the removal of another penalty makes it possible to do so without exceeding the penalty cap. For purposes of counting months of penalty pursuant to Human Resources Code, §31.0031(d)(3) and (5), a month in which a penalty is applicable counts even if the penalty cannot be imposed because of the penalty cap specified in subparagraph (C) of this paragraph.

(5) [ (6) ]Good cause. Good cause for noncompliance as specified in Human Resources Code, §31.0033 , is established for the requirements listed in Human Resources Code, §31.0031(d) , as explained in the following subparagraphs.

(A) Human Resources Code, §31.0033(d)(1). Good cause is established as specified in §3.1801 of this title (relating to Temporary Assistance for Needy Families (TANF) Child Support Requirements) [ 45 Code of Federal Regulations (CFR) §§232.40- 232.47, regarding child support ].

(B) Human Resources Code, §31.0033(d)(2). Good cause is established for recipients who are exempt under the provisions in Health and Safety Code, §161.004(d), regarding immunizations.

(C) Human Resources Code, §31.0033(d)(3). Good cause is established according to the regulations applicable to the Food Stamp Program as specified in 7 CFR §273.7(n)(3), regarding voluntary quit.

(D) Human Resources Code, §31.0031(d)(4). Good cause is established as specified in 45 CFR §250.35 and Human Resources Code, §31.0031(f), regarding employment education and training activities.

(E) Human Resources Code, §31.0031(d)(5). Good cause cannot be established for this requirement.

(F) Human Resources Code, §31.0031(d)(6) and (7). Good cause is established as specified in Human Resources Code, §31.0031(f) , regarding lack of funding for support services. Regarding child care or day care, good cause is established if child care for a child under the age of 12 years (or day care for any incapacitated individual) living in the same home as the recipient is necessary for an individual to attend school, and such care is not available and outside funding is not available to provide such care. If there is another responsible household member in the home who is willing and able to provide such care, good cause does not apply. Good cause is also established if a student is expelled from school and the school system verifies it does not offer an alternative educational program.

(G) Human Resources Code, §31.0031(d)(8). Good cause is established if:

(i) no classes are available in the area or verification from known providers is received indicating that all classes were full when offered;

(ii) the provider verifies the client is currently attending classes;

(iii) the client provides a physician's statement or medical evidence that verifies that illness or injury prevented training completion when classes were available; or

(iv) the client provides verification that other circumstances beyond his control prevented training completion, such as a household disaster.

(H) Good cause noncompliance hearings. As required by the Human Resources Code, §31.0033, if the recipient claims good cause during the 13-day period after notice of adverse action concerning the noncompliance penalty is sent, DHS either makes a determination on the claim before the 13-day period expires or files the claim as a fair hearing pursuant to DHS's rules. The recipient retains the right to request a fair hearing within 90 days of agency action pursuant to Chapter 79 of this title (relating to Legal Services).

(I) Good cause related to parenting skills noncompliance. A client may request a determination that his noncompliance was due to good cause after a penalty is imposed. The client receives a determination regarding good cause for parenting skills noncompliance by the eligibility worker or case manager.

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 January 7, 2002.

TRD-200200052

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter E. HOUSEHOLD DETERMINATION

40 TAC §3.501

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.030.

§3.501.Household Determination.

(a) (No change.)

(b) Temporary Assistance for Needy Families (TANF) . The following persons are not included in a TANF certified group:

(1)-(2) (No change.)

(3) Disqualified persons.

(A) Persons are disqualified because they:

(i)-(ii) (No change.)

(iii) are minor parents certified as children who fail to cooperate with child support requirements;

(iv) are minor parents certified as children who fail to comply with employment services[ , social security number, or third-party resources (TPR) requirements ];

(v) fail to comply with social security number or third-party resources (TPR) requirements;

(vi) [ (v) ] are caretakers and second parents [ (except for those who are members of the state welfare reform waiver control group as described in §3.6002 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0065, Relating to Time-Limits) ] who have exhausted their time limits of 12, 24, or 36 months, assigned according to the guidelines in Human Resources Code, §31.0065 , for receiving TANF cash benefits;

(vii) [ (vi) ] fail to timely report a certified child's temporary absence;

(viii) [ (vii) ] are fugitives fleeing to avoid prosecution of, or confinement for, a felony criminal conviction, or found by a court to be violating federal or state probation or parole; [ or ]

(ix) [ (viii) ] fail to comply with the unmarried minor parent domicile requirement ; or [ . ]

(x) are convicted of a felony drug offense that was committed on or after April 1, 2002.

(B)-(C) (No change.)

(4)-(6) ( No change.)

(c)-(d) (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 January 7, 2002.

TRD-200200053

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter K. EMPLOYMENT SERVICES

40 TAC §3.1104

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.030.

§3.1104.Failure to Comply with Title IV-A Employment Program.

(a) A Temporary Assistance for Needy Families (TANF) [ An Aid to Families with Dependent Children (AFDC) ] client who [ is a member of the state welfare reform control group or ] is certified for TANF [ AFDC ] as a child and who does not comply with the Title IV- A Employment Program requirements and cannot establish good cause is sanctioned using one or more of the circumstances specified in paragraphs (1)-(3) of this subsection [ the following periods ]:

(1)-(3) (No change.)

(b) During the sanction period, the individual will be sanctioned by not taking into account the needs of the individual (including a dependent child who noncomplies) in determining the family's need for assistance and the amount of the assistance payment. [ : ]

[ (1) not taking into account the needs of the individual (including a dependent child who noncomplies) in determining the family's need for assistance and the amount of the assistance payment; and]

[ (2) not taking into account the needs of the second parent if the individual who noncomplies is a parent of the family who meets the criteria in the Aid to Families with Dependent Children- Unemployed Parent Program as specified in §3.3909 of this title (relating to Failure to Comply with Job Opportunities and Basic Skills (JOBS) Program).]

(c)-(d) (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 January 7, 2002.

TRD-200200054

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter R. CHILD SUPPORT

40 TAC §3.1801

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.030.

§3.1801. Temporary Assistance for Needy Families (TANF) [ Aid to Families with Dependent Children] Child Support Requirements.

(a) The Texas Department of Human Services (DHS) adheres to the requirements and procedures for child support enforcement as stipulated in 45 Code of Federal Regulations §264.30(a)-(b); §454(29); and §408(a)(3) of the Social Security Act [ §§232.11-232.20; 232.40-232.47; and 232.49 with the following exception related to penalties for noncompliance ].

(b) DHS explains good cause for noncompliance with these requirements to all clients. A good cause determination considers the best interests of the child. The client has at least 20 days to provide evidence of good cause. Good cause exists when one or more of the circumstances specified in paragraphs (1)-(5) of this subsection is present:

(1) A child is conceived as a result of incest or rape.

(2) Legal proceedings for the child's adoption are pending before a court or a licensed or private social agency is helping the client decide whether to keep the child or relinquish him for adoption. This issue must not have been under discussion for more than three months.

(3) A child or his caretaker may be physically harmed.

(4) A child or his caretaker may be emotionally harmed to the extent that the caretaker's capacity to adequately care for the child is impaired.

(5) The client establishes good cause pursuant to the family violence option as specified in 45 CFR §260.52.

(c) In regard to recipients subject to the requirements specified in §3.301(d) of this title (relating to Responsibilities of Clients and the Texas Department of Human Services (DHS)), DHS applies [ a ] noncompliance penalties pursuant to 45 Code of Federal Regulations §264.30(c)(1) [ penalty as specified in §3.301(d)(5)(A) of this title (relating to Responsibilities of Clients and the Texas Department of Human Services (DHS)) ].

(1) For households of five or less, noncompliance results in a financial penalty of the grant amount equal to the recognizable needs figure of:

(A) a single parent if one adult fails to comply; or

(B) a caretaker and second parent if two adults are subject to a noncompliance penalty in the same month.

(2) For households with six to ten members, noncompliance results in a penalty of $125.

(3) For households greater than ten, noncompliance results in a penalty of $165.

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 January 7, 2002.

TRD-200200055

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter S. SCHOOL ATTENDANCE

40 TAC §3.1901

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.030.

§3.1901. Temporary Assistance for Needy Families (TANF) [ Aid to Families with Dependent Children (AFDC) ] School Attendance Requirements.

TANF [ AFDC ] clients must meet school attendance requirements as stipulated in the Social Security Act §408(a)(4) [ 45 Code of Federal Regulations §233.90(b)(2) and (3) ]. Children with disabilities may attend fewer hours than other students or receive instructions from a visiting teacher at home. Additionally, [ AFDC ] children who are home schooled are considered as meeting school attendance requirements specified in §3.301(d) of this title (relating to Responsibilities of Clients and the Texas Department of Human Services (DHS)).

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 January 7, 2002.

TRD-200200056

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter MM. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES--UNEMPLOYED PARENT PROGRAM

40 TAC §3.3904

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.030.

§3.3904.Household Determination.

[ (a) For households who are members of the State Welfare Reform Control Group as described in §3.6004 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code §31.0031, Dependent Child's Income; Human Resources Code §31.012, Mandatory Work or Participation in Employment Activities Through the Job Opportunities and Basic Skills Training Program; Human Resources Code §31.014, Two-Parent Families; and Human Resources Code §31.032, Investigation and Determination of Eligibility), a child must live with both parents and be deprived because the principal wage earner parent is unemployed, as stipulated in 45 Code of Federal Regulations §233.100(a)(1) and §233.100(a)(3).]

[ (b) For all other households, the ] The Texas Department of Human Services determines Temporary Assistance for Needy Families-Unemployed Parent [ Aid to Families with Dependent Children-Unemployed Parent ] deprivation as specified in Human Resources Code, §31.014(b).

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 January 7, 2002.

TRD-200200057

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter MM. AID TO FAMILIES WITH DEPENDENT CHILDREN--UNEMPLOYED PARENT PROGRAM

40 TAC §3.3909

(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 authorizes DHS to administer financial assistance programs.

The repeal implements the Human Resources Code, §§31.001-31.030.

§3.3909.Failure to Comply with Jobs Opportunities and Basic Skills (JOBS) Program.

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 January 7, 2002.

TRD-200200058

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter PP. APPLICABILITY OF POLICIES RESULTING FROM HOUSE BILL 1863

40 TAC §3.6001, §3.6002

The amendments are proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendments implement the Human Resources Code, §§31.001-31.030.

§3.6001.Applicability of Temporary Assistance to Needy Families (TANF) [ Aid to Families with Dependent Children (AFDC)] Policies Resulting from Human Resources Code, §31.0031, Relating to the Personal Responsibility Agreement.

[ (a) Identifying cases to whom policies apply. ] The requirements and penalties specified in Human Resources Code, §31.0031(d) , apply to all TANF [ AFDC ] cases statewide [ except cases identified as belonging to the State Welfare Reform Control Group in this subchapter ].

[ (b) Control group and non-control group. The State Welfare Reform Control Group includes individuals identified by the Texas Department of Human Services (DHS) whose AFDC eligibility and benefits will continue to be determined by DHS according to federal regulations and DHS rules other than rules resulting from Human Resources Code, §31.0031(d). This group consists of recipients who are identified by the last Social Security Number digits 3, 4, 5, 8, or 9 of the household member selected based on a statistically valid hierarchy process in offices and/or counties selected by DHS approved by the Department of Health and Human Services (DHHS). If a recipient identified as a member of the control group moves to a non-control group area, his status changes to non-control group. All clients not identified as members of the control group are considered members of the non-control group.]

[ (c) Changes that result from adding household members. If a client who has been identified as a control group client pursuant to subsection (b) of this section is added to a case identified as a non-control group case pursuant to this section or §3.6002 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0065, Relating to Time-Limits) or §3.6003 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0035, Relating to Transitional Benefits), all the clients on the case are then considered non-control group clients in this subchapter. This is also the result if a person identified as a non-control group member pursuant to this section, §3.6002 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0065, Relating to Time-Limits) or §3.6003 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0035, Relating to Transitional Benefits), is added to a case identified as a control group case pursuant to this section.]

[ (d) When non-control/non-experimental group members move. If a person identified as a non- control/non-experimental group member in this section, §3.6002 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resource Code §31.0065, Relating to Time-Limits), or §3.6003 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0035, Relating to Transitional Benefits) is added to a case identified as a control group case pursuant to this section, the client who moved is also considered a control group client in this subchapter.]

§3.6002.Applicability of Temporary Assistance for Needy Families (TANF) [ Aid to Families with Dependent Children (AFDC)] Policies Resulting from Human Resources Code, §31.0065, Relating to Time-Limits.

[ (a) Time limits. ] The time-limitation policies specified in Human Resources Code, §31.0065 , apply to all TANF [ AFDC ] cases in areas designated by the Texas Department of Human Services (DHS)[ , except cases identified as belonging to the State Welfare Reform Control Group for this subchapter. For purposes of applying AFDC time limits, DHS designates only counties in which support services are available as required by the Human Resources Code, §31.0065(a) ].

[ (b) Control group for time-limits. The control group for this purpose includes individuals identified by DHS whose AFDC eligibility and benefits will continue to be determined by DHS according to federal regulations and DHS rules other than rules resulting from Human Resources Code, §31.0065. This group consists of current recipients who are identified by the last Social Security Number digits 3,4, 5, 8, or 9 of the household member selected based on a statistically valid hierarchy process in offices and/or counties selected by DHS and approved by the federal Department of Health and Human Services (DHHS). All clients not identified as members of the control group are considered as members of the non-control group. If a recipient identified as a member of the control group moves to a non-control group area, his status changes to non-control group.]

[ (c) Changes that result from adding household members. If a client who has been identified as a control group client pursuant to subsection (b) of this section is added to a case identified as a non-control group case pursuant to this section or §3.6001 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0031, Relating to the Personal Responsibility Agreement) or §3.6003 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0035, Relating to Transitional Benefits) all the clients on the case are then considered non-control group clients for this subchapter. This is also the result if a person identified as a non-control group member pursuant to this section or §3.6001 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0031, Relating to the Personal Responsibility Agreement) or §3.6003 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0035, Relating to Transitional Benefits) is added to a case identified as a control group case pursuant to this section.]

[ (d) When non-control/non-experimental group members move. If a person identified as a non- control/non-experimental group member in this section, §3.6001 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resource Code §31.0031, Relating to Personal Responsibility Agreement), or §3.6003 of this title (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0035, Relating to Transitional Benefits) is added to a case identified as a control group case pursuant to this section, the client who moved is also considered a control group client in this subchapter.]

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 January 7, 2002.

TRD-200200059

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


40 TAC §3.6003, §3.6004

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections 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 repeals are proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The repeals implement the Human Resources Code, §§31.001-31.030.

§3.6003.Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0035, Relating to Transitional Benefits.

§3.6004.Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code, §31.0031, Dependent Child's Income; Human Resources Code, §31.012, Mandatory Work or Participation in Employment Activities Through the Job Opportunities and Basic Skills Training Program; Human Resources Code, §31.014, Two-Parent Families; and Human Resources Code, §31.032, Investigation and Determination of Eligibility.

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 January 7, 2002.

TRD-200200060

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Subchapter SS. ONE-TIME TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM

40 TAC §3.7203

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes DHS to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.030.

§3.7203.Eligibility Requirements.

One-Time Temporary Assistance for Needy Families Program (OTTANF) applicants must meet the requirements of this subchapter and all the Temporary Assistance for Needy Families requirements for applicants as specified in this chapter. Applicants accepting OTTANF must sign the Personal Responsibility Agreement [ unless the case is identified as belonging to the State Welfare Reform Control Group ].

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 January 7, 2002.

TRD-200200061

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734


Chapter 3. TEXAS WORKS

Subchapter L. WORK REGISTRATION

40 TAC §3.1203

The Texas Department of Human Services (DHS) proposes to amend §3.1203, concerning work requirement, in its Texas Works chapter. The purpose of the amendment is to refer Able Bodied Adults Without Dependents (ABAWDs) not meeting the 20-hour per week work requirement to the Texas Workforce Commission (TWC) to comply with the requirements of the Food Stamp Employment and Training (FSE&T) program. Individuals failing to comply with FSE&T are restricted to three months of food stamp eligibility in a 36-month period, unless they reside in a federally approved waiver area. Under the revised FSE&T state plan submitted by TWC and approved by the Food and Nutrition Service (FNS), the state must ensure that a work opportunity offer is made to every ABAWD subject to the federal time limit, unless the ABAWD resides within a waiver county or a county where E&T services are not offered. The proposed rule change will ensure that AWAWDs are exempt from the federal time limit if employment and training services are not offered as required by the recently approved E&T state plan.

James R. Hine, 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. Hine 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 adoption of the proposed rule will be to bring DHS into compliance with the Employment and Training State Plan. There will be no effect on small or micro businesses as a result of enforcing or administering the section, because the amendment concerns exemptions from food stamp work registration requirements and not the operation of businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section. There will be no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Eric McDaniel at (512) 438- 2909 in DHS's Texas Works Policy Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-068, 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, Chapters 22 and 33, which authorizes the department to administer public and medical assistance programs.

The amendment implements the Human Resources Code, §§22.001-22.030 and §§33.001-33.027.

§3.1203.Work Requirement.

Pursuant to the requirements in §6 of the Food Stamp Act of 1977 [ , ] (codified at 7 United States Code (U.S.C.) §2015), as amended by the Balanced Budget Act of 1977, Public Law Number 105-133 [ Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law Number 104-193, Title VIII, §824 ], the Texas Department of Human Services (DHS) restricts food stamp eligibility of an individual to three months in a 36 month period if the individual does not meet the work requirements defined in 7 U.S.C. §2015 (o)(1) and (2) . [ , ] Individuals are exempt if they meet the specifications described in 7 USC §2015(o)(1), if they are not offered employment and training services through the Texas Workforce Commission (TWC), if [ unless ] they meet the specifications described [ are exempt as specified ] in 7 U.S.C. §2015(o)(3) , or if they reside in a federally approved waiver area to which this provision does not apply as described [ prescribed for ] in 7 U.S.C. §2015(o)(4).

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 January 7, 2002.

TRD-200200062

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 438-3734