SRC-JFA H.B. 1439 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1439
By: Hilderbran (Duncan)
Health & Human Services
5-13-97
Engrossed


DIGEST 

The Committee on Human Services Interim Report sets forth legislative
recommendations relating to carrying out the intent of the welfare reform
package.  This bill would implement such recommendations.  This bill would
state that Aid to Families with Dependent Children payments may be used
only to purchase goods and services that are considered essential and
necessary to the welfare of the family and directs the Department of Human
Services  (DHS) to define, by rule, what constitutes essential and
necessary goods and services.  Additionally, this bill would direct DHS to
encourage certain retailers to accept payment through the state's
electronic benefit transfer (EBT) system and to conduct a pilot project in
which these retailers use the EBT system.   
  
PURPOSE

As proposed, H.B. 1439 provides that Aid to Families with Dependent
Children payments may be used only to purchase goods and services that are
considered essential and necessary to the welfare of the family and
directs the Department of Human Services (DHS) to define, by rule, what
constitutes essential and necessary goods and services.  Additionally,
this bill directs DHS to encourage certain retailers to accept payment
through the state's electronic benefit transfer (EBT) system and to
conduct a pilot project in which these retailers use the EBT system.   

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Department of Human Services in
SECTION 1 (Section 31.0355(a), Human Resources Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 31B, Human Resources Code, by adding Section
31.0355, as follows: 

Sec. 31.0355.  USE OF FINANCIAL ASSISTANCE.  (a)  Authorizes financial
assistance granted to a person under this chapter to be used only to
purchase goods and services that are considered essential and necessary
for the welfare of the family.  Requires the Department of Human Services
(DHS), by rule, to define what constitutes essential and necessary goods
and services for purposes of this subsection.   

(b)  Authorizes a recipient, if the recipient of financial assistance who
receives the assistance by electronic benefits transfer (EBT) to an
account is authorized to make a cash withdrawal from the account through a
provider of the goods or services described by Subsection (a), to make the
cash withdrawal only at the customer service department of the provider
and not at the provider's point-of-sale terminal.   

(c) Requires DHS to encourage housing authorities, utility companies,
public transportation companies, and other nonfood retailers to accept
payment for goods and services described by Subsection (a) through the
state's EBT system.   

(d)  Sets forth guidelines relating to the required development of a pilot
project by DHS to determine the feasibility of using the EBT system to
accept payments for certain goods and services.   
 
(e)  Requires DHS, under certain conditions, to promote the use of the EBT
system to appropriate businesses statewide with the goal of securing the
participation of all those businesses in using the EBT system to accept
payment for certain goods and services.  

(f)  Requires DHS to evaluate the pilot project and report to the 76th
Legislature on the effectiveness of the pilot project by January 15, 1999.

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.