1-1  By:  Bivins                                           S.B. No. 1378
    1-2        (In the Senate - Filed April 15, 1993; April 19, 1993, read
    1-3  first time and referred to Committee on Finance; May 3, 1993,
    1-4  reported favorably by the following vote:  Yeas 12, Nays 0;
    1-5  May 3, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Montford           x                               
    1-9        Turner             x                               
   1-10        Armbrister         x                               
   1-11        Barrientos         x                               
   1-12        Bivins             x                               
   1-13        Ellis              x                               
   1-14        Haley              x                               
   1-15        Moncrief           x                               
   1-16        Parker                                        x    
   1-17        Ratliff            x                               
   1-18        Sims               x                               
   1-19        Truan              x                               
   1-20        Zaffirini          x                               
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the direct transfer of certain federal funds.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  Subchapter F, Chapter 404, Government Code, is
   1-26  amended by adding Section 404.0955 to read as follows:
   1-27        Sec. 404.0955.  DIRECT TRANSFER OF CERTAIN FEDERAL FUNDS.
   1-28  (a)  The state treasurer, the comptroller, and a state agency that
   1-29  is responsible for receiving or administering federal funds that
   1-30  are used to pay benefits by electronic transfer or other electronic
   1-31  means may adopt a joint memorandum of understanding that:
   1-32              (1)  requires the funds to be transferred directly from
   1-33  the federal government to a person designated by the receiving or
   1-34  administering state agency; and
   1-35              (2)  prescribes procedures for the receipt and
   1-36  disbursement of the funds.
   1-37        (b)  The state treasurer, the comptroller, and the receiving
   1-38  or administering state agency may adopt the joint memorandum of
   1-39  understanding under this section only if the federal government
   1-40  consents to the direct transfer.
   1-41        (c)  Section 404.094 does not apply to funds covered by the
   1-42  memorandum of understanding.
   1-43        SECTION 2.  Section 22.005, Human Resources Code, is amended
   1-44  by amending Subsection (f) and adding Subsections (g), (h), and (i)
   1-45  to read as follows:
   1-46        (f)  Except as provided by Subsection (g), the <The> state
   1-47  treasurer is the designated custodian of all funds administered by
   1-48  the department and received by the state from the federal
   1-49  government or any other source for the purpose of implementing the
   1-50  provisions of the Social Security Act.  The treasurer may receive
   1-51  the funds, pay them into the proper fund or account of the general
   1-52  fund of the state treasury, provide for the proper custody of the
   1-53  funds, and make disbursements of the funds on the order of the
   1-54  department and on warrant of the comptroller.
   1-55        (g)  The department, the comptroller, and the state treasurer
   1-56  may adopt a joint memorandum of understanding that:
   1-57              (1)  requires that funds described by Subsection (f)
   1-58  that are used to pay benefits by electronic transfer or other
   1-59  electronic means be transferred directly from the federal
   1-60  government or other funding source to a person designated by the
   1-61  department; and
   1-62              (2)  prescribes procedures for the receipt and
   1-63  disbursement of the funds.
   1-64        (h)  The department, the comptroller, and the state treasurer
   1-65  may adopt the joint memorandum of understanding only if the federal
   1-66  government or other funding source consents to the direct transfer.
   1-67        (i)  Section 404.094, Government Code, does not apply to
   1-68  funds covered by the memorandum of understanding adopted under
    2-1  Subsection (g).
    2-2        SECTION 3.  This Act takes effect September 1, 1993.
    2-3        SECTION 4.  The importance of this legislation and the
    2-4  crowded condition of the calendars in both houses create an
    2-5  emergency and an imperative public necessity that the
    2-6  constitutional rule requiring bills to be read on three several
    2-7  days in each house be suspended, and this rule is hereby suspended.
    2-8                               * * * * *
    2-9                                                         Austin,
   2-10  Texas
   2-11                                                         May 3, 1993
   2-12  Hon. Bob Bullock
   2-13  President of the Senate
   2-14  Sir:
   2-15  We, your Committee on Finance to which was referred S.B. No. 1378,
   2-16  have had the same under consideration, and I am instructed to
   2-17  report it back to the Senate with the recommendation that it do
   2-18  pass and be printed.
   2-19                                                         Montford,
   2-20  Chairman
   2-21                               * * * * *
   2-22                               WITNESSES
   2-23                                                  FOR   AGAINST  ON
   2-24  ___________________________________________________________________
   2-25  Name:  Kenny McLeskey                                          x
   2-26  Representing:  Comptroller's Office
   2-27  City:  Austin
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   2-29  Name:  Penny H. Tisdale                                        x
   2-30  Representing:  Tx. Dept. of Human Services
   2-31  City:  Austin
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