By Van de Putte                                       H.B. No. 2380
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the deposit and transfer of certain federal funds.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 22.005, Human Resources Code, is amended
    1-5  by amending Subsection (f) and adding Subsection (g) to read as
    1-6  follows:
    1-7        (f)  Except as provided by Subsection (g), the <The> state
    1-8  treasurer is the designated custodian of all funds administered by
    1-9  the department and received by the state from the federal
   1-10  government or any other source for the purpose of implementing the
   1-11  provisions of the Social Security Act.  The treasurer may receive
   1-12  the funds, pay them into the proper fund or account of the general
   1-13  fund of the state treasury, provide for the proper custody of the
   1-14  funds, and make disbursements of the funds on the order of the
   1-15  department and on warrant of the comptroller.
   1-16        (g)  The department, the comptroller, and the state treasurer
   1-17  may jointly adopt a memorandum of understanding that the funds
   1-18  described in Subsection (f) must be transferred directly from the
   1-19  federal government or other funding source to the person designated
   1-20  by the department.  A memorandum of understanding may not be
   1-21  adopted if:
   1-22              (1)  the federal government or other source does not
   1-23  consent to the direct transfer; or
    2-1              (2)  the funds are not used to pay benefits
    2-2  electronically.
    2-3        SECTION 2.  Section 404.094, Government Code is amended by
    2-4  adding Subsections (d) and (e) to read as follows:
    2-5        (d)  Subsections (a) through (c) do not apply to funds
    2-6  concerning which the treasurer, the comptroller, and the Department
    2-7  of Human Services have jointly adopted a memorandum of
    2-8  understanding under Section 22.005(g), Human Resources Code.
    2-9        (e)(1)  The treasurer, the comptroller, and the state agency
   2-10  responsible for receiving or administering federal funds may
   2-11  jointly adopt a memorandum of understanding that those funds may be
   2-12  transferred directly from the federal government to a person
   2-13  designated by the agency.  A memorandum of understanding may not be
   2-14  adopted if:
   2-15                    (A)  the federal government does not consent to
   2-16  the direct transfer; or
   2-17                    (B)  the funds are not used to pay benefits
   2-18  electronically.
   2-19              (2)  Subsections (a) through (c) do not apply to
   2-20  federal funds covered by a memorandum of understanding adopted
   2-21  under Subdivision (1).
   2-22        SECTION 3.  This Act takes effect September 1, 1993.
   2-23        SECTION 4.  The importance of this legislation and the
   2-24  crowded condition of the calendars in both houses create an
   2-25  emergency and an imperative public necessity that the
    3-1  constitutional rule requiring bills to be read on three several
    3-2  days in each house be suspended, and this rule is hereby suspended.