1-1     By:  Maxey, Naishtat (Senate Sponsor - Moncrief)      H.B. No. 2123

 1-2           (In the Senate - Received from the House April 14, 1997;

 1-3     April 16, 1997, read first time and referred to Committee on Health

 1-4     and Human Services; May 5, 1997, reported favorably, as amended, by

 1-5     the following vote:  Yeas 10, Nays 0; May 5, 1997, sent to

 1-6     printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                             By:  Moncrief

 1-8     Amend the House Engrossment of H.B. 2123 as follows:

 1-9           On page 2, SECTION 4, lines 26-28, delete new Subsection (c).

1-10                            A BILL TO BE ENTITLED

1-11                                   AN ACT

1-12     relating to the prevention and detection of fraud in certain

1-13     programs administered by the Texas Department of Human Services.

1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-15           SECTION 1.  Chapter 22, Human Resources Code, is amended by

1-16     adding Section 22.0255 to read as follows:

1-17           Sec. 22.0255.  RETURNED-MAIL REDUCTION.  (a)  The department

1-18     shall develop and implement policies and procedures designed to

1-19     improve the department's electronic benefits transfer cards used

1-20     for federal and state entitlement programs administered by the

1-21     department.

1-22           (b)  The department shall set an annual goal of reducing the

1-23     amount of returned mail it receives under the programs described by

1-24     Subsection (a) so that the percentage rate of returned mail is

1-25     within one percent of the percentage rate of returned mail reported

1-26     annually for the credit card and debit card industries.

1-27           (c)  The department shall submit a biennial report to the

1-28     governor's office, the legislature, and the Legislative Budget

1-29     Board detailing the progress the department has made in reaching

1-30     its goals under this section.

1-31           SECTION 2.  Section 22.027, Human Resources Code, is amended

1-32     by adding Subsections (e) and (f) to read as follows:

1-33           (e)  The department and the comptroller shall coordinate

1-34     their efforts to cross-train agency staff whose duties include

1-35     fraud prevention and detection to enable the staff to identify and

1-36     report possible fraudulent activity in programs, taxes, or funds

1-37     administered by the other agency.

1-38           (f)  A local law enforcement agency that seizes an electronic

1-39     benefits transfer (EBT) card issued by the department to a

1-40     recipient of an entitlement program administered by the department

1-41     shall immediately notify the department of the seizure and return

1-42     the card to the department.  The department shall send letters to

1-43     local law enforcement agencies or post materials in the buildings

1-44     in which those agencies are located to ensure that local law

1-45     enforcement officials are aware of this requirement.

1-46           SECTION 3.  Chapter 33, Human Resources Code, is amended by

1-47     adding Sections 33.0022 and 33.0023 to read as follows:

1-48           Sec. 33.0022.  FRAUD PREVENTION IN FOOD STAMP PROGRAM.  (a)

1-49     The electronic benefits transfer (EBT) system  operator and

1-50     installer shall report to the department and the United States

1-51     Department of Agriculture suspicious activity relating to a

1-52     retailer's participation in the food stamp program, including:

1-53                 (1)  a noticeable absence of staple food products;

1-54                 (2)  a low supply of staple food products in relation

1-55     to other items in the retailer's inventory; or

1-56                 (3)  improper food stamp redemption.

1-57           (b)  The department shall compare a retailer's food stamp

1-58     sales volume with the retailer's total food sales to determine

1-59     whether the retailer is eligible to receive free point-of-sale

1-60     terminals.

1-61           (c)  At least once each fiscal quarter, the department shall

1-62     provide any information reported under Subsection (a) to the Public

1-63     Assistance Fraud Oversight Task Force.

1-64           (d)  In this section, "retailer" means a business approved

 2-1     for participation in the food stamp program.

 2-2           Sec. 33.0023.  FOOD STAMP INFORMATION MATCHING SYSTEM.  (a)

 2-3     To detect and prevent fraud in the food stamp program, the

 2-4     department, through the use of a computerized matching system,

 2-5     shall compare at least semiannually department information relating

 2-6     to food stamp transactions and redemptions by recipients of food

 2-7     stamps and retailers with information obtained from the comptroller

 2-8     and other  appropriate state agencies relating to those recipients

 2-9     and retailers.

2-10           (b)  The department, the comptroller,  and the appropriate

2-11     agencies shall take all necessary measures to protect the

2-12     confidentiality of information provided under this section, in

2-13     compliance with all existing state and federal privacy guidelines.

2-14           (c)  In this section, "retailer" means a business approved

2-15     for participation in the food stamp program.

2-16           SECTION 4.  Subchapter B, Chapter 31, Human Resources Code,

2-17     is amended by adding Section 31.043 to read as follows:

2-18           Sec. 31.043.  INACTIVE ELECTRONIC BENEFITS TRANSFER ACCOUNTS.

2-19     (a)  This section applies only to an account to which financial

2-20     assistance provided under this chapter has been transferred under

2-21     the electronic benefits transfer system for access and use by a

2-22     recipient of that assistance.

2-23           (b)  The department shall close an  account that has not been

2-24     used by the account holder during the preceding 12 months.

2-25           (c)  The comptroller shall withdraw any unused benefits

2-26     remaining in the account and disburse the benefits as authorized by

2-27     federal and state law.

2-28           SECTION 5.  The importance of this legislation and the

2-29     crowded condition of the calendars in both houses create an

2-30     emergency and an imperative public necessity that the

2-31     constitutional rule requiring bills to be read on three several

2-32     days in each house be suspended, and this rule is hereby suspended,

2-33     and that this Act take effect and be in force from and after its

2-34     passage, and it is so enacted.

2-35                                  * * * * *