1-1                                   AN ACT
 1-2     relating to the provision of Medicaid to certain persons making the
 1-3     transition from foster care to independent living.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,
 1-6     is amended by adding Section 32.0247 to read as follows:
 1-7           Sec. 32.0247.  MEDICAL ASSISTANCE FOR CERTAIN PERSONS MAKING
 1-8     TRANSITION FROM FOSTER CARE TO INDEPENDENT LIVING.  (a)  In this
 1-9     section, "independent foster care adolescent" has the meaning
1-10     assigned by 42 U.S.C. Section 1396d(w)(1), as amended.
1-11           (b)  The department shall provide medical assistance, in
1-12     accordance with department rules, to an independent foster care
1-13     adolescent who:
1-14                 (1)  is not otherwise eligible for medical assistance;
1-15     and
1-16                 (2)  is not covered by a health benefits plan offering
1-17     adequate benefits, as determined by the Health and Human Services
1-18     Commission.
1-19           (c)  The department shall by rule establish a specific set of
1-20     income, assets, or resources allowable for recipients under this
1-21     section.  The income level shall not be less than 200 percent or
1-22     more than 400 percent of the federal poverty level.  Allowable
1-23     asset or resource levels shall not be less than:
1-24                 (1)  the levels allowed for individuals who are in
1-25     foster care; and
 2-1                 (2)  the levels allowed for a person under 19 years of
 2-2     age who is eligible for the medical assistance program.
 2-3           (d)  In setting allowable income, asset, or resource levels,
 2-4     the department shall exclude:
 2-5                 (1)  any financial benefit used for the purpose of
 2-6     educational or vocational training, such as scholarships, student
 2-7     loans, or grants;
 2-8                 (2)  any financial benefit used for the purpose of
 2-9     housing; and
2-10                 (3)  any grants or subsidies obtained as a result of
2-11     the Foster Care Independence Act of 1999 (Pub. L. No. 106-169).
2-12           (e)  The Department of Protective and Regulatory Services
2-13     shall certify the income, assets, or resources of each individual
2-14     on the date the individual exits substitute care.  An individual
2-15     qualifying for medical assistance as established by this section
2-16     shall remain eligible for 12 calendar months after certification
2-17     and after each recertification.
2-18           (f)  The recertification process for individuals who are
2-19     eligible for medical assistance under this section shall include
2-20     the option of recertifying by mail or phone.
2-21           SECTION 2.  As soon as possible after the effective date of
2-22     this Act, the Health and Human Services Commission shall submit an
2-23     amendment to the state's Medicaid plan to include the provision of
2-24     medical assistance to independent foster care adolescents as
2-25     required by Section 32.0247, Human Resources Code, as added by this
2-26     Act.
 3-1           SECTION 3.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 51 passed the Senate on
         April 20, 2001, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 25, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 51 passed the House, with
         amendments, on May 23, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor