CLC S.B. 909 75(R)BILL ANALYSIS


HUMAN SERVICES
S.B. 909
By: Zaffirini (Maxey)
5-6-97
Committee Report (Unamended)


BACKGROUND 

Currently, Texas utilizes a statewide electronic benefit transfer (EBT)
program using the Lone Star card, an electronic debit card that allows
recipients to access food stamps and welfare benefits via point-of-sale
terminals at retail outlets, rather than through the food stamp coupon and
state warrant system.  Presently, the U.S. Department of Agriculture food
stamp regulations for Texas' EBT program require DHS to purge food stamp
accounts that have been inactive for 12 months and return the unused
benefits.  In the absence of federal EBT regulations for the Aid to
Families with Dependent Children (AFDC) program, the Department of Human
Services (DHS) purges these accounts two years after the close of the
fiscal year in which the last payment was issued.   This legislation would
require DHS to close an account that has not been used during the
preceding 12 months, making the two program regulations consistent.
Eighty percent of AFDC recipients also collect food stamps.   

PURPOSE

As proposed, S.B. 909 requires the closure of certain inactive electronic
benefits transfer accounts.  
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

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

Sec. 31.043.  INACTIVE ELECTRONIC BENEFITS TRANSFER ACCOUNT.  Provides
that this section applies only to an account to which financial assistance
provided under this chapter has been transferred under the electronic
benefits transfer system for access and use by a recipient of that
assistance.  Requires the Texas Department of Human Services to close an
account that has not been used by the account holder during the preceding
12 months. Requires the comptroller to withdraw any unused benefits
remaining in the account and disburse the benefits as authorized by
federal and state law.   

SECTION 2. Emergency clause.  
  Effective date:  upon passage.