By Hilderbran                                   H.B. No. 1439

      75R3098 CLG-D                           

                                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, and health care services.

1-12           (b)  A recipient of financial assistance who receives the

1-13     assistance by electronic benefits transfer (EBT) to an account may

1-14     not make a cash withdrawal from the account.

1-15           (c)  An EBT operator that contracts with the department to

1-16     administer the EBT system shall establish procedures to restrict

1-17     purchases of goods and services with financial assistance granted

1-18     under this chapter in the same manner purchases of items with

1-19     benefits under the food stamp program are restricted under the EBT

1-20     system.

1-21           (d)  The department by rule shall:

1-22                 (1)  define what constitutes essential and necessary

1-23     goods and services for purposes of Subsection (a); and

1-24                 (2)  provide for penalties and sanctions for a

 2-1     recipient or operator who does not comply with this section.

 2-2           SECTION 2.  If before implementing Section 31.0355, Human

 2-3     Resources Code, as added by this Act, the Texas Department of Human

 2-4     Services determines that a waiver or authorization from a federal

 2-5     agency is necessary for implementation, the department shall

 2-6     request the waiver or authorization and may delay implementing the

 2-7     provisions of that section until the waiver or authorization is

 2-8     granted.

 2-9           SECTION 3.  This Act takes effect September 1, 1997, and

2-10     applies only to a person who is receiving financial assistance

2-11     under Chapter 31, Human Resources Code, on or after that date,

2-12     regardless of the date on which eligibility for that assistance was

2-13     determined.

2-14           SECTION 4.  The importance of this legislation and the

2-15     crowded condition of the calendars in both houses create an

2-16     emergency and an imperative public necessity that the

2-17     constitutional rule requiring bills to be read on three several

2-18     days in each house be suspended, and this rule is hereby suspended.