JKC H.B. 2508 75(R) BILL ANALYSIS HUMAN SERVICES H.B. 2508 By: Hilderbran 4-9-97 Committee Report (Unamended) BACKGROUND Based on the Interim Report to the 75th Texas Legislature, Committee on Human Services, one of the goals of H.B. 1863 is to reduce welfare fraud. A pilot project to utilize finger-imaging technology would assist legislators in determining whether the project merits the $15-18 million in appropriations necessary to expand the project statewide. PURPOSE This bill requires the Texas Department of Human Services (TDHS) to conduct a study and implement a pilot project regarding finger-imaging which would replace personal identification numbers (PIN) in the electronic benefits transfer (EBT) program. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.TDHS, in cooperation with the comptroller, is required to conduct a study and implement a pilot project on the use of finger-imaging in the electronic benefits transfer program. The study must examine the most effective method, the required equipment and technology, the system design and the appropriate pilot sites for finger-imaging. Based on the study and advice from the Electronic Benefit Transfer Merchant Advisory Committee TDHS is directed to develop and implement a pilot project, at no cost to participating retailers, using only private and federal funds. TDHS must submit an interim report on the project to the comptroller by September 1, 1998. By February 1, 1999, TDHS must submit a report to the governor, the lieutenant governor, and the speaker of the house of representatives on the feasibility of statewide use of finger-imaging in the EBT program. SECTION 2.Effective Date: September 1, 1997; Expiration Date: September 1, 1999. SECTION 3.Emergency clause.