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 * * * * *