1-1     By:  Hilderbran (Senate Sponsor - Duncan)             H.B. No. 1439

 1-2           (In the Senate - Received from the House May 6, 1997;

 1-3     May 7, 1997, read first time and referred to Committee on Health

 1-4     and Human Services; May 17, 1997, reported favorably, as amended,

 1-5     by the following vote:  Yeas 9, Nays 0; May 17, 1997, sent to

 1-6     printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                                 By:  West

 1-8           Amend H.B. 1439 by striking SECTIONS 2 and 3, and substitute

 1-9     the following in lieu thereof:

1-10           "SECTION 2.  Subchapter B, Chapter 31, Human Resources Code,

1-11     is amended by adding Section 31.0341 to read as follows:

1-12           Sec. 31.0341.  JUDICIAL REVIEW.  (a)  Except as provided by

1-13     this section, Sections 2001.142, 2001.144, 2001.145, and 2001.146,

1-14     Government Code, and Subchapters G and H, Chapter 2001, Government

1-15     Code, govern an appeal of a department decision under Section

1-16     31.034 by an applicant for or a recipient of financial assistance

1-17     under this chapter.

1-18           (b)  The cost of preparing the record and the transcript may

1-19     not be charged to the applicant for or recipient of the assistance.

1-20           (c)  An appeal described by Subsection (a) takes precedence

1-21     over all civil cases except workers' compensation and unemployment

1-22     cases.

1-23           (d)  The appellee is the department.

1-24           SECTION 3.  Section 2001.223, Government Code, is amended to

1-25     read as follows:

1-26           Sec. 2001.223.  Exceptions From Declaratory Judgment, Court

1-27     Enforcement, and Contested Case Provisions.  Section 2001.038 and

1-28     Subchapters C through H  do not apply to:

1-29                 (1)  the granting, payment, denial, or withdrawal of

1-30     [financial] or medical or nutritional assistance or benefits under

1-31     service programs of the Texas Department of Human Services;

1-32                 (2)  action by the Banking Commissioner or the Finance

1-33     Commission of Texas regarding the issuance of a state bank charter

1-34     for a bank to assume the assets and liabilities of a financial

1-35     institution that the commissioner considers to be in hazardous

1-36     condition as defined by Section 1.002(a), Texas Banking Act;

1-37                 (3)  a hearing or interview conducted by the Board of

1-38     Pardons and Paroles or the pardons and paroles division of the

1-39     Texas Department of Criminal Justice relating to the grant,

1-40     rescission, or revocation of parole or other form of administrative

1-41     release; or

1-42                 (4)  the suspension, revocation, or termination of the

1-43     certification of a breath analysis operator or technical supervisor

1-44     under the rules of the Department of Public Safety.

1-45           SECTION 4.  Subchapter I, Chapter 2001, Government Code, is

1-46     amended by adding Section 2001.227 to read as follows:

1-47           Sec. 2001.227.  EXCEPTION FROM DECLARATORY JUDGMENT AND

1-48     CONTESTED CASE PROVISIONS.  Except as provided by Section 31.0341,

1-49     Human Resources Code, Section 2001.038 and Subchapters C-F do not

1-50     apply to the granting, payment, denial, or withdrawal of financial

1-51     assistance under Chapter 31, Human Resources Code, by the Texas

1-52     Department of Human Services.

1-53           SECTION 5.  This Act takes effect September 1, 1997, and

1-54     applies only to an appeal of a final decision rendered by the Texas

1-55     Department of Human Services on or after that date.  A final

1-56     decision rendered by the department before the effective date of

1-57     this Act is governed by the law in effect on the date the decision

1-58     was rendered, and the former law is continued in effect for that

1-59     purpose.

1-60           SECTION 6.  The importance of this legislation and the

1-61     crowded condition of the calendars in both houses create an

1-62     emergency and an imperative public necessity that the

1-63     constitutional rule requiring bills to be read on three several

1-64     days in each house be suspended, and this rule is hereby suspended.

 2-1                            A BILL TO BE ENTITLED

 2-2                                   AN ACT

 2-3     relating to use of financial assistance granted to persons with

 2-4     dependent children.

 2-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 2-6           SECTION 1.  Subchapter B, Chapter 31, Human Resources Code,

 2-7     is amended by adding Section 31.0355 to read as follows:

 2-8           Sec. 31.0355.  USE OF FINANCIAL ASSISTANCE.  (a)  Financial

 2-9     assistance granted to a person under this chapter may be used only

2-10     to purchase goods and services that are considered essential and

2-11     necessary for the welfare of the family, including food, clothing,

2-12     housing, utilities, child care, and incidentals such as

2-13     transportation and medicine or medical supplies or equipment not

2-14     covered by Medicaid.  The department by rule shall define what

2-15     constitutes essential and necessary goods and services for purposes

2-16     of this subsection.

2-17           (b)  If a recipient of financial assistance who receives the

2-18     assistance by electronic benefits transfer to an account is

2-19     authorized to make a cash withdrawal from the account through a

2-20     provider of the goods or services described by Subsection (a), the

2-21     recipient may make the cash withdrawal only at the customer service

2-22     department of the provider and not at the provider's point-of-sale

2-23     terminal.

2-24           (c)  The department shall encourage housing authorities,

2-25     utility companies, public transportation companies, and other

2-26     nonfood retailers to accept payment for goods and services

2-27     described by Subsection (a) through the state's electronic benefits

2-28     transfer (EBT) system.

2-29           (d)  To determine the feasibility of using the EBT system to

2-30     accept payment for goods and services described by Subsection (a),

2-31     the department shall conduct a pilot project in which utility

2-32     companies, housing agencies, and other retailers use the EBT system

2-33     to accept payment for medicine, medical supplies, and medical

2-34     equipment not covered by Medicaid and other goods and services

2-35     described by Subsection (a).  The cost of the point-of-sale (POS)

2-36     devices in the pilot project shall not be a state expense, except

2-37     for POS devices located in retail businesses that sell medicine or

2-38     medical supplies or medical equipment.  The department shall work

2-39     in conjunction with the office of client transportation services of

2-40     the Health and Human Services Commission to determine if EBT

2-41     transportation applications are feasible.

2-42           (e)  If the department determines that the pilot projects

2-43     show that use of the EBT system is feasible and useful for the

2-44     businesses and clients participating in the pilot project, the

2-45     department shall promote the use of the EBT system to appropriate

2-46     businesses statewide with the goal of securing the participation of

2-47     all those businesses in using the EBT system to accept payment for

2-48     goods and services described by Subsection (a).

2-49           (f)  The department shall evaluate the pilot project and

2-50     report to the 76th Legislature on the effectiveness of the pilot

2-51     project not later than January 15, 1999.

2-52           SECTION 2.  This Act takes effect September 1, 1997.

2-53           SECTION 3.  The importance of this legislation and the

2-54     crowded condition of the calendars in both houses create an

2-55     emergency and an imperative public necessity that the

2-56     constitutional rule requiring bills to be read on three several

2-57     days in each house be suspended, and this rule is hereby suspended.

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