JKC C.S.H.B. 1439 75(R) BILL ANALYSIS HUMAN SERVICES C.S.H.B. 1439 By: Hilderbran 4-9-97 Committee Report (Substituted) BACKGROUND This bill would implement recommendations from the Committee on Human Services Interim Report. These recommendations are based on carrying out the intent of the welfare reform package to ensure responsible practices by recipients. PURPOSE This bill states that AFDC payments may be used only to purchase goods and services that are considered essential and necessary to the welfare of the family and directs DHS to define by rule what constitutes essential and necessary goods and services. This bill directs the department to encourage certain retailers to accept payment through the state's EBT system and to conduct a pilot project in which these retailers use the EBT system. RULEMAKING AUTHORITY Section 1, Sec. 31.0355(a) of the Human Resource Code, grants rulemaking authority to the Department of Human Services (DHS). SECTION BY SECTION ANALYSIS SECTION 1.Amends Subchapter B, Chapter 31, Human Resources Code, by adding Sec. 31.0355, Use of Financial Assistance. (a)Financial assistance is restricted to purchases of goods and services that are considered essential and necessary for the family such as food, clothing, housing, utilities, child care, and incidentals. (b)Directs the department to encourage certain entities and retailers to accept payment through the EBT program. (c)Directs the department to conduct a pilot project in which certain entities and retailers accept payments through the EBT system for goods and services described in subsection (a), as well as goods not covered by medicaid. The point-of-sale devices shall not be a state expense except for certain retailers. Directs the department to work with Health and Human Services Commission to determine the feasibility of transportation applications. (d)Directs the Department to promote the use of the EBT system to appropriate businesses statewide if the department determines from the pilot that such use is feasible. (e) Directs the department to evaluate the pilot and report to the 76th Legislature by January 15, 1999. SECTION 2.Effective Date: September 1, 1997. SECTION 3.Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1.(a) The list of goods and services that are considered essential and necessary is expanded to include utilities, child care, and incidentals such as transportation and medicine, medical supplies or equipment not covered by medicaid. Health care is deleted from the list. Department directive originally laid out in Section (d) is moved to this section. (b) Directs the department to encourage certain entities and retailers to accept payment through the EBT program. Section (b) of the original bill, restricting EBT users from making cash withdraws, is deleted. (c) Directs the department to conduct a pilot project in which certain entities and retailers accept payments through the EBT system for goods and services described in subsection (a), as well as goods not covered by medicaid. The point-of-sale devices shall not be a state expense except for certain retailers. Directs the department to work with Health and Human Services Commission to determine the feasibility of transportation applications. Section (c) of the original bill, regarding the establishment of procedures to restrict purchases, is deleted. (d) Directs the Department to promote the use of the EBT system to appropriate businesses statewide if the department determines from the pilot that such use is feasible. Department directive originally laid out in Section (d) is moved to section (a) of the substitute. Section (d)(2) of the original bill, directing the department to provide penalties for noncompliance, is deleted. (e) Directs the department to evaluate the pilot and report to the 76th Legislature by January 15, 1999. SECTION 2.Effective date. Section 2 of the original bill, regarding waivers, is deleted. SECTION 3. Emergency clause. Section 3 of the original bill, effective date and restrictions, is deleted. SECTION 4. Section 4 of the original bill, emergency clause, is Section 3 in the substitute.