1-1 AN ACT
1-2 relating to the prevention and detection of fraud in certain
1-3 programs administered by the Texas Department of Human Services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 22, Human Resources Code, is amended by
1-6 adding Section 22.0255 to read as follows:
1-7 Sec. 22.0255. RETURNED-MAIL REDUCTION. (a) The department
1-8 shall develop and implement policies and procedures designed to
1-9 improve the department's electronic benefits transfer cards used
1-10 for federal and state entitlement programs administered by the
1-11 department.
1-12 (b) The department shall set an annual goal of reducing the
1-13 amount of returned mail it receives under the programs described by
1-14 Subsection (a) so that the percentage rate of returned mail is
1-15 within one percent of the percentage rate of returned mail reported
1-16 annually for the credit card and debit card industries.
1-17 (c) The department shall submit a biennial report to the
1-18 governor's office, the legislature, and the Legislative Budget
1-19 Board detailing the progress the department has made in reaching
1-20 its goals under this section.
1-21 SECTION 2. Section 22.027, Human Resources Code, is amended
1-22 by adding Subsections (e) and (f) to read as follows:
1-23 (e) The department and the comptroller shall coordinate
2-1 their efforts to cross-train agency staff whose duties include
2-2 fraud prevention and detection to enable the staff to identify and
2-3 report possible fraudulent activity in programs, taxes, or funds
2-4 administered by the other agency.
2-5 (f) A local law enforcement agency that seizes an electronic
2-6 benefits transfer (EBT) card issued by the department to a
2-7 recipient of an entitlement program administered by the department
2-8 shall immediately notify the department of the seizure and return
2-9 the card to the department. The department shall send letters to
2-10 local law enforcement agencies or post materials in the buildings
2-11 in which those agencies are located to ensure that local law
2-12 enforcement officials are aware of this requirement.
2-13 SECTION 3. Chapter 33, Human Resources Code, is amended by
2-14 adding Sections 33.0022 and 33.0023 to read as follows:
2-15 Sec. 33.0022. FRAUD PREVENTION IN FOOD STAMP PROGRAM. (a)
2-16 The electronic benefits transfer (EBT) system operator and
2-17 installer shall report to the department and the United States
2-18 Department of Agriculture suspicious activity relating to a
2-19 retailer's participation in the food stamp program, including:
2-20 (1) a noticeable absence of staple food products;
2-21 (2) a low supply of staple food products in relation
2-22 to other items in the retailer's inventory; or
2-23 (3) improper food stamp redemption.
2-24 (b) The department shall compare a retailer's food stamp
2-25 sales volume with the retailer's total food sales to determine
3-1 whether the retailer is eligible to receive free point-of-sale
3-2 terminals.
3-3 (c) At least once each fiscal quarter, the department shall
3-4 provide any information reported under Subsection (a) to the Public
3-5 Assistance Fraud Oversight Task Force.
3-6 (d) In this section, "retailer" means a business approved
3-7 for participation in the food stamp program.
3-8 Sec. 33.0023. FOOD STAMP INFORMATION MATCHING SYSTEM. (a)
3-9 To detect and prevent fraud in the food stamp program, the
3-10 department, through the use of a computerized matching system,
3-11 shall compare at least semiannually department information relating
3-12 to food stamp transactions and redemptions by recipients of food
3-13 stamps and retailers with information obtained from the comptroller
3-14 and other appropriate state agencies relating to those recipients
3-15 and retailers.
3-16 (b) The department, the comptroller, and the appropriate
3-17 agencies shall take all necessary measures to protect the
3-18 confidentiality of information provided under this section, in
3-19 compliance with all existing state and federal privacy guidelines.
3-20 (c) In this section, "retailer" means a business approved
3-21 for participation in the food stamp program.
3-22 SECTION 4. Subchapter B, Chapter 31, Human Resources Code,
3-23 is amended by adding Section 31.043 to read as follows:
3-24 Sec. 31.043. INACTIVE ELECTRONIC BENEFITS TRANSFER ACCOUNTS.
3-25 (a) This section applies only to an account to which financial
4-1 assistance provided under this chapter has been transferred under
4-2 the electronic benefits transfer system for access and use by a
4-3 recipient of that assistance.
4-4 (b) The department shall close an account that has not been
4-5 used by the account holder during the preceding 12 months.
4-6 SECTION 5. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended,
4-11 and that this Act take effect and be in force from and after its
4-12 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2123 was passed by the House on April
11, 1997, by the following vote: Yeas 132, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2123 on May 14, 1997, by the following vote: Yeas 140, Nays 0,
2 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2123 was passed by the Senate, with
amendments, on May 12, 1997, by the following vote: Yeas 31, Nays
0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor