SRC-SLL S.B. 910 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 910
By: Zaffirini
Health & Human Services
3-18-97
As Filed


DIGEST 

In November 1995, Texas implemented a statewide electronic benefit
transfer (EBT) program using the Lone Star card, an electronic debit card
similar to an automatic teller machine card that allows recipients to
access food stamps and welfare benefits via point-of-sale terminals at
retail outlets.  The EBT system streamlines program administration; law
enforcement citations cite EBT as a factor in reducing the illegal sale of
food stamps; and the retailers and financial institutions are pleased with
the system's reducing handling costs.  This bill will direct
theinteragency task force on electronic benefits transfers, created in
1995, to examine expanding the use of EBT to other state benefit programs,
propose methods to prevent or deter fraud, evaluate the feasibility of
adding the Medicaid program to the EBT system, develop a plan to assist
beneficiaries of public programs to obtain bank accounts, and determine
the feasibility and cost effectiveness of using EBT or direct deposit for
recurring payments. 

PURPOSE

As proposed, S.B. 910 directs the interagency task force on electronic
benefits transfer to examine expanding the use of electronic benefits
transfers (EBT) to other state benefit programs, propose methods to
prevent or deter fraud, and evaluate the feasibility of adding the
Medicaid program to the EBT system. 

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 531B, Government Code, to conform to Section
8.10, Chapter 655, Acts of the 74th Legislature, Regular Session, 1995, by
adding Section 531.045, to redesignate Section 10B, Article 4413(502),
V.T.C.S., as Section 531.045, Government Code, including the following
changes: 

Sec.  531.045.  INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS TRANSFERS.
Requires the task force on electronic benefits transfer to evaluate the
feasibility of adding the Medicaid program to the state's electronic
benefits transfer system, and develop a plan to assist beneficiaries of
public programs to obtain bank accounts.  Makes conforming and
nonsubstantive changes. 

SECTION 2. Amends Sections 22.029(a) and (b), Human Resources Code, to
require, rather than authorize, the commission to implement a data
matching project.  Requires the project to involve the matching of
database information among all agencies using electronic funds transfer
and other participating agencies. 

SECTION 3. Amends Chapter 22, Human Resources Code, by adding Section
22.0291, as follows: 

Sec.  22.0291.  PROJECT FOR IDENTIFYING PERSONS ELIGIBLE FOR BENEFITS
THROUGH DATA MATCHING.  Requires the Texas Department of Health
(department) to implement a data matching project to locate individuals
who qualify to participate in the federal special supplemental food
program for women, infants, and children (program).  Requires the
department to notify eligible persons and encourage them to apply for the
program.  Requires the department to identify other state agency databases
that could be matched with the department's database for the program.
Requires the department to contract through a memorandum of understanding
with each agency participating in the project. Requires agencies
participating under Subsection (b) to cooperate fully with the department
and promptly provide data in the requested format.  Requires the
commission and participating agencies providing source data for the
project to take all necessary steps to protect the confidentiality of
information provided as part of this project, in compliance with all
existing state and federal privacy guidelines.  Requires the department to
identify the databases for the matching project not later than December
30, 1997, and to begin database matching not later than July 1, 1998. 

SECTION 4. Repealer: Section 8.10, Chapter 655, Acts of the 74th
Legislature, Regular Session, 1995 (Task Force: Electronics Benefits
Transfers). 

SECTION 5. (a) Requires the task force to review each agency that makes
recurring payments to an individual or transmits data on state clients to
determine the feasibility of using electronic benefits transfer or direct
deposit to make the recurring payments or data transmission. 

(b) Requires the task force to report its findings to certain individuals
not later than December 30, 1997. 

(c) Requires an agency, if the task force determines that using electronic
benefits transfer or direct deposit is feasible, to implement electronic
benefits transfer or direct deposit not later than September 1, 1999. 

SECTION 6. (a) Requires certain persons to analyze the cost-effectiveness
of using electronic benefits transfer in conjunction with direct deposit
to distribute certain funds. 

(b) Authorizes each agency to work with the task force to determine the
cost-effectiveness of using electronic benefits transfers to distribute
payments or benefits. 

(c) Requires each agency to complete the cost-benefit analysis not later
than December 30, 1997. 

(d) Requires an agency to submit a plan for implementing an electronic
benefits transfer system to the task force if the agency determines that
electronic benefits transfer is costeffective.  Requires the agency to
execute the plan not later than August 31, 1998. 

SECTION 7. Requires each agency that provides benefits or recurring
payments by way of electronic benefits transfer to evaluate the
cost-effectiveness of providing access to the benefits or recurring
payments through automated teller machines. 

SECTION 8. Effective date: September 1, 1997.

SECTION 9. Emergency clause.