BILL ANALYSIS



C.S.H.B. 1062
By: Raymond
04-12-95
Committee Report (Substituted)


BACKGROUND

     Texas has moved to the forefront of efforts to streamline the
distribution of welfare benefits through Electronic Benefits
Transfer (EBT).  With EBT, recipients use plastic debit cards to
pay for food and receive cash benefits against their monthly food
stamp and Aid To Families With Dependent Children (AFDC)
allotments.  In addition to reducing administrative and printing
costs, EBT can drastically reduce opportunities for abuse and
fraud.

     At present, farmers markets may participate in the food stamp
program and accept the paper coupons from families on public
assistance.  In 1992, $8 million in food stamps were spent at
farmers markets in Texas.  Food stamp purchases provide vital
economic support for Texas farmers and fresh, nutritious food at
competitive prices for low income families.

     With no provisions to provide EBT technology at farmers
markets, Texas farmers stand to lose approximately $8 million in
food stamp sales next year; likewise, families on public assistance
will lose access to nutritious Texas foods at farmers markets.


PURPOSE

     H.B. 1062, as substituted, would call for a pilot program in
two or more counties to ensure that farmers have access to the
technology necessary to accept food stamp transactions using EBT
cards.  An interagency task force would be created to oversee
implementation of the project.  


RULEMAKING AUTHORITY

     H.B. 1062 grants the Texas Department of Human Services (DHS)
rulemaking authority in Section 1, subsections (a) and (b) of the
legislation in order to develop and implement the pilot project.


SECTION BY SECTION ANALYSIS

SECTION 1.  PILOT PROGRAM.

(a)  Requires DHS by rule to establish an EBT pilot program for use
at farmers markets.

(b)  In adopting rules under this section, requires DHS to follow
recommendations of the interagency task force created by Section 2
below, and sets forth criteria for the development of the pilot
program.

(c)  Requires DHS to select two or more counties for the pilot
program, following the recommendations of the interagency task
force in Sec. 2.

(d)  Requires DHS to follow the recommendations of the interagency
task force in Sec. 2 in determining the types of technology to test
in each location of the pilot.

SECTION 2.  TASK FORCE. 

(a)  Creates an interagency task force to advise and assist DHS in
developing the EBT pilot program and in selecting the counties in
which to establish the program. 

(b)  Establishes composition of task force consisting of
representatives of the comptroller's office, the Department of
Agriculture, DHS, non-profit organizations that work with farmers
markets in low-income communities, and each company with whom DHS
contracts for the EBT system, appointed by the respective agencies,
as well as a farmer who accepts food stamps at a Central Texas
farmers market.

(c)  Provides that members of the task force serve at the will of
the appointing agency.

(d)  Requires task force to elect a presiding officer and other
necessary officers.

(e)  Requires task force to meet at least quarterly and as needed,
holding its first meeting not earlier than September 1, 1995, and
not later than December 31, 1995, as called by the commissioner of
DHS.

(f)  Requires the appointing agency to cover expenses of task force
members, but permits no compensation for them.

(g)  Requires task force to establish goals for the pilot program;
to develop and submit to DHS recommendations for the design and
implementation of the program; and to recommend two or more
counties for the test location.

SECTION 3.  REPORT.  Requires DHS to report to the Governor and the
75th Legislature on the effectiveness of the pilot program by
January 15, 1997.

SECTION 4.  DEADLINES. 

(a)  Requires agencies to appoint task force members by September
1, 1995.
(b)  Requires DHS to establish the pilot program by January 1,
1996.

SECTION 5.  Pilot's expiration date, September 1, 1997.

SECTION 6.  Emergency clause, effective in 90 days.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute for H.B. 1062 provides technical
corrections to correspond with language in the contract between DHS
and Transactive Corporation, the company implementing the EBT
system statewide.  In addition, the substitute strikes the
provision requiring a representative of farmers markets, appointed
by the Texas Certified Farmers' Market Ass'n, and substitutes a
farmer who accepts food stamps at a Central Texas farmers market,
appointed by the Dept. of Agriculture (TDA).  Also removed is the
requirement that TDA cover the expenses of the farmers market
representative on the task force.


SUMMARY OF COMMITTEE ACTION

     The House Human Services Committee convened in a public
hearing on February 20, 1995, and the Chairman laid out H.B. 1062
recognizing Rep. Raymond to explain the bill.  The following
witnesses testified for H.B. 1062:  Kathleen Fitzgerald,
Sustainable Food Center, Austin; G.K. Sprinkle, Texas Ass'n of
Community Action Agencies, Austin; Nessa Richman, Texas Sustainable
Ag Working Group, Austin; Cora Lamar, Austin; Diana Hernandez,
Austin; Pamela Brown, Texas Legal Services Center, Houston Welfare
Rights Organization, Austin; and Patrick Bresette, Center for
Public Policy Priorities, Austin.  No witnesses testified in
opposition to or as neutral on H.B. 1062.  Rep. Raymond to close on
H.B. 1062 and the bill was left pending.

     In a formal meeting on April 12, 1995, the committee took up
H.B. 1062 which had been pending.  Rep. Maxey offered a committee
substitute and moved adoption.  Hearing no objection, the committee
substitute was adopted.  Rep. Maxey moved that the committee pass
H.B. 1062 favorably as substituted and the motion prevailed by a
record vote of 7 Ayes, 0 Nays, 0 PNV and 2 Absent.