75R10974 CLG-F                           

         By Hilderbran                                         H.B. No. 1439

         Substitute the following for H.B. No. 1439:

         By Hilderbran                                     C.S.H.B. No. 1439

                                A BILL TO BE ENTITLED

 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)  The department shall encourage housing authorities,

1-17     utility companies, public transportation companies, and other

1-18     nonfood retailers to accept payment for goods and services

1-19     described by Subsection (a) through the state's electronic benefits

1-20     transfer (EBT) system.

1-21           (c)  To determine the feasibility of using the EBT system to

1-22     accept payment for goods and services described by Subsection (a),

1-23     the department shall conduct a pilot project in which utility

1-24     companies, housing agencies, and other retailers use the EBT system

 2-1     to accept payment for medicine, medical supplies, and medical

 2-2     equipment not covered by Medicaid and other goods and services

 2-3     described by Subsection (a).  The cost of the point-of-sale (POS)

 2-4     devices in the pilot project shall not be a state expense, except

 2-5     for POS devices located in retail businesses that sell medicine or

 2-6     medical supplies or medical equipment.  The department shall work

 2-7     in conjunction with the office of client transportation services of

 2-8     the Health and Human Services Commission to determine if EBT

 2-9     transportation applications are feasible.

2-10           (d)  If the department determines that the pilot projects

2-11     show that use of the EBT system is feasible and useful for the

2-12     businesses and clients participating in the pilot project, the

2-13     department shall promote the use of the EBT system to appropriate

2-14     businesses statewide with the goal of securing the participation of

2-15     all those businesses in using the EBT system to accept payment for

2-16     goods and services described by Subsection (a).

2-17           (e)  The department shall evaluate the pilot project and

2-18     report to the 76th Legislature on the effectiveness of the pilot

2-19     project not later than January 15, 1999.

2-20           SECTION 2.  This Act takes effect September 1, 1997.

2-21           SECTION 3.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.