By:  Bivins                                           S.B. No. 1378
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the direct transfer of certain federal funds.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Subchapter F, Chapter 404, Government Code, is
    1-4  amended by adding Section 404.0955 to read as follows:
    1-5        Sec. 404.0955.  DIRECT TRANSFER OF CERTAIN FEDERAL FUNDS.
    1-6  (a)  The state treasurer, the comptroller, and a state agency that
    1-7  is responsible for receiving or administering federal funds that
    1-8  are used to pay benefits by electronic transfer or other electronic
    1-9  means may adopt a joint memorandum of understanding that:
   1-10              (1)  requires the funds to be transferred directly from
   1-11  the federal government to a person designated by the receiving or
   1-12  administering state agency; and
   1-13              (2)  prescribes procedures for the receipt and
   1-14  disbursement of the funds.
   1-15        (b)  The state treasurer, the comptroller, and the receiving
   1-16  or administering state agency may adopt the joint memorandum of
   1-17  understanding under this section only if the federal government
   1-18  consents to the direct transfer.
   1-19        (c)  Section 404.094 does not apply to funds covered by the
   1-20  memorandum of understanding.
   1-21        SECTION 2.  Section 22.005, Human Resources Code, is amended
   1-22  by amending Subsection (f) and adding Subsections (g), (h), and (i)
   1-23  to read as follows:
   1-24        (f)  Except as provided by Subsection (g), the <The> state
    2-1  treasurer is the designated custodian of all funds administered by
    2-2  the department and received by the state from the federal
    2-3  government or any other source for the purpose of implementing the
    2-4  provisions of the Social Security Act.  The treasurer may receive
    2-5  the funds, pay them into the proper fund or account of the general
    2-6  fund of the state treasury, provide for the proper custody of the
    2-7  funds, and make disbursements of the funds on the order of the
    2-8  department and on warrant of the comptroller.
    2-9        (g)  The department, the comptroller, and the state treasurer
   2-10  may adopt a joint memorandum of understanding that:
   2-11              (1)  requires that funds described by Subsection (f)
   2-12  that are used to pay benefits by electronic transfer or other
   2-13  electronic means be transferred directly from the federal
   2-14  government or other funding source to a person designated by the
   2-15  department; and
   2-16              (2)  prescribes procedures for the receipt and
   2-17  disbursement of the funds.
   2-18        (h)  The department, the comptroller, and the state treasurer
   2-19  may adopt the joint memorandum of understanding only if the federal
   2-20  government or other funding source consents to the direct transfer.
   2-21        (i)  Section 404.094, Government Code, does not apply to
   2-22  funds covered by the memorandum of understanding adopted under
   2-23  Subsection (g).
   2-24        SECTION 3.  This Act takes effect September 1, 1993.
   2-25        SECTION 4.  The importance of this legislation and the
   2-26  crowded condition of the calendars in both houses create an
   2-27  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.