1-1 AN ACT 1-2 relating to use of financial assistance granted to persons with 1-3 dependent children. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 31, Human Resources Code, 1-6 is amended by adding Section 31.0355 to read as follows: 1-7 Sec. 31.0355. USE OF FINANCIAL ASSISTANCE. (a) Financial 1-8 assistance granted to a person under this chapter may be used only 1-9 to purchase goods and services that are considered essential and 1-10 necessary for the welfare of the family, including food, clothing, 1-11 housing, utilities, child care, and incidentals such as 1-12 transportation and medicine or medical supplies or equipment not 1-13 covered by Medicaid. The department by rule shall define what 1-14 constitutes essential and necessary goods and services for purposes 1-15 of this subsection. 1-16 (b) If a recipient of financial assistance who receives the 1-17 assistance by electronic benefits transfer to an account is 1-18 authorized to make a cash withdrawal from the account through a 1-19 provider of the goods or services described by Subsection (a), the 1-20 recipient may make the cash withdrawal only at the customer service 1-21 department of the provider and not at the provider's point-of-sale 1-22 terminal. 1-23 (c) The department shall encourage housing authorities, 1-24 utility companies, public transportation companies, and other 2-1 nonfood retailers to accept payment for goods and services 2-2 described by Subsection (a) through the state's electronic benefits 2-3 transfer (EBT) system. 2-4 (d) To determine the feasibility of using the EBT system to 2-5 accept payment for goods and services described by Subsection (a), 2-6 the department shall conduct a pilot project in which utility 2-7 companies, housing agencies, and other retailers use the EBT system 2-8 to accept payment for medicine, medical supplies, and medical 2-9 equipment not covered by Medicaid and other goods and services 2-10 described by Subsection (a). The cost of the point-of-sale (POS) 2-11 devices in the pilot project shall not be a state expense, except 2-12 for POS devices located in retail businesses that sell medicine or 2-13 medical supplies or medical equipment. The department shall work 2-14 in conjunction with the office of client transportation services of 2-15 the Health and Human Services Commission to determine if EBT 2-16 transportation applications are feasible. 2-17 (e) If the department determines that the pilot projects 2-18 show that use of the EBT system is feasible and useful for the 2-19 businesses and clients participating in the pilot project, the 2-20 department shall promote the use of the EBT system to appropriate 2-21 businesses statewide with the goal of securing the participation of 2-22 all those businesses in using the EBT system to accept payment for 2-23 goods and services described by Subsection (a). 2-24 (f) The department shall evaluate the pilot project and 2-25 report to the 76th Legislature on the effectiveness of the pilot 2-26 project not later than January 15, 1999. 2-27 SECTION 2. This Act takes effect September 1, 1997. 3-1 SECTION 3. The importance of this legislation and the 3-2 crowded condition of the calendars in both houses create an 3-3 emergency and an imperative public necessity that the 3-4 constitutional rule requiring bills to be read on three several 3-5 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1439 was passed by the House on May 5, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1439 was passed by the Senate on May 21, 1997, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor