Bill Text: TX SB1871 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the creation of the Texas Empowerment Account pilot program for assisting certain recipients of public benefits in achieving self-sufficiency.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-04-26 - Left pending in committee [SB1871 Detail]
Download: Texas-2023-SB1871-Introduced.html
88R11340 KKR-F | ||
By: Hughes | S.B. No. 1871 |
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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. |