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.