By Maxey H.B. No. 2354
75R2708 MCK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the use of electronic transfer and data matching in
1-3 connection with certain benefits programs.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 531, Government Code, is
1-6 amended to conform to Section 8.10, Chapter 655, Acts of the 74th
1-7 Legislature, Regular Session, 1995, by adding Section 531.045 to
1-8 read as follows:
1-9 Sec. 531.045. INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
1-10 TRANSFERS. (a) The interagency task force on electronic benefits
1-11 transfers shall advise and assist the commission in adding new
1-12 benefit programs to the statewide electronic benefits transfer
1-13 system.
1-14 (b) The task force is composed of:
1-15 (1) a representative of:
1-16 (A) the attorney general's office, appointed by
1-17 the attorney general;
1-18 (B) the comptroller's office, appointed by the
1-19 comptroller;
1-20 (C) the commission, appointed by the
1-21 commissioner;
1-22 (D) the Texas Department of Health, appointed by
1-23 the commissioner of public health;
1-24 (E) the Texas Department of Human Services,
2-1 appointed by the commissioner of human services;
2-2 (F) the Texas Workforce Commission, appointed by
2-3 the presiding officer of that agency; and
2-4 (G) the Texas Rehabilitation Commission,
2-5 appointed by the commissioner of that agency; and
2-6 (2) two representatives of each of the following
2-7 groups, appointed by the comptroller:
2-8 (A) retailers who maintain electronic benefits
2-9 transfer point-of-sale equipment;
2-10 (B) banks or owners of automatic teller
2-11 machines; and
2-12 (C) consumer or client advocacy organizations.
2-13 (c) A member of the task force serves at the will of the
2-14 appointing agency.
2-15 (d) The representative of the comptroller's office serves as
2-16 presiding officer. The task force may elect any other necessary
2-17 officers.
2-18 (e) The task force shall meet at the call of the presiding
2-19 officer.
2-20 (f) The appointing agency is responsible for the expenses of
2-21 a member's service on the task force. A member of the task force
2-22 is not entitled to additional compensation for serving on the task
2-23 force.
2-24 (g) The task force shall:
2-25 (1) serve as this state's counterpoint to the federal
2-26 electronic benefits transfer task force;
2-27 (2) identify benefit programs that merit addition to
3-1 this state's electronic benefits transfer system;
3-2 (3) identify and address problems that may occur if a
3-3 program is added;
3-4 (4) pursue state-federal partnerships to facilitate
3-5 the development and expansion of this state's electronic benefits
3-6 transfer system;
3-7 (5) track and distribute federal legislation and
3-8 information from other states that relate to electronic benefits
3-9 transfer systems;
3-10 (6) ensure efficiency and planning coordination in
3-11 relation to this state's electronic benefits transfer system;
3-12 (7) develop a plan using the experience and expertise
3-13 of the Department of Public Safety of the State of Texas for the
3-14 use of a photograph or other imaging technology on all electronic
3-15 benefits transfer cards and, if proven to be effective in reducing
3-16 fraud and misuse, begin using the new cards starting with
3-17 replacement cards for cards that were used in the program on June
3-18 13, 1995;
3-19 (8) review current and potential fraud problems with
3-20 electronic benefits transfer and propose methods to prevent or
3-21 deter fraud;
3-22 (9) evaluate the feasibility of adding the Medicaid
3-23 program to the state's electronic benefits transfer system; and
3-24 (10) develop a plan to assist beneficiaries of public
3-25 programs to obtain bank accounts.
3-26 (h) In determining which benefit programs can be added to
3-27 this state's electronic benefits transfer system, the task force
4-1 shall consider, at a minimum:
4-2 (1) the savings to this state;
4-3 (2) the ease of addition to existing infrastructure;
4-4 and
4-5 (3) the number of clients served.
4-6 SECTION 2. Sections 22.029(a) and (b), Human Resources Code,
4-7 are amended to read as follows:
4-8 (a) In order to enhance the state's ability to detect and
4-9 prevent fraud in the payment of claims under federal and state
4-10 entitlement programs, the Health and Human Services Commission
4-11 shall [may] implement a data matching project as described by
4-12 Subsection (b).
4-13 (b) The project shall involve the matching of database
4-14 information among all agencies using electronic funds transfer and
4-15 other participating agencies. The commission shall contract
4-16 through a memorandum of understanding with each agency
4-17 participating in the project. After the data has been matched, the
4-18 commission shall furnish each participating agency with a list of
4-19 potential fraudulent occurrences or administrative errors.
4-20 SECTION 3. Chapter 22, Human Resources Code, is amended by
4-21 adding Section 22.0291 to read as follows:
4-22 Sec. 22.0291. PROJECT FOR IDENTIFYING PERSONS ELIGIBLE FOR
4-23 BENEFITS THROUGH DATA MATCHING. (a) The Texas Department of
4-24 Health shall implement a data matching project to locate
4-25 individuals who qualify to participate in the federal special
4-26 supplemental food program for women, infants, and children. The
4-27 department shall notify eligible persons and encourage them to
5-1 apply for the program.
5-2 (b) The department shall identify other state agency
5-3 databases that could be matched with the department's database for
5-4 the federal special supplemental food program for women, infants,
5-5 and children. The department shall contract through a memorandum
5-6 of understanding with each agency participating in the project.
5-7 (c) Agencies participating under Subsection (b) shall
5-8 cooperate fully with the department and promptly provide data in
5-9 the requested format.
5-10 (d) The commission and participating agencies providing
5-11 source data for the project shall take all necessary steps to
5-12 protect the confidentiality of information provided as part of this
5-13 project, in compliance with all existing state and federal privacy
5-14 guidelines.
5-15 (e) The Texas Department of Health shall identify the
5-16 databases for the matching project not later than December 30,
5-17 1997, and shall begin database matching not later than July 1,
5-18 1998.
5-19 SECTION 4. Section 8.10, Chapter 655, Acts of the 74th
5-20 Legislature, Regular Session, 1995, is repealed.
5-21 SECTION 5. (a) The interagency task force on electronic
5-22 benefits transfers shall review each agency that makes recurring
5-23 payments to an individual or transmits data on state clients to
5-24 determine the feasibility of using electronic benefits transfer or
5-25 direct deposit to make the recurring payments or data transmission.
5-26 (b) The interagency task force on electronic benefits
5-27 transfers shall report its findings to the governor, lieutenant
6-1 governor, and speaker of the house of representatives not later
6-2 than December 30, 1997.
6-3 (c) If the interagency task force on electronic benefits
6-4 transfers determines that using electronic benefits transfer or
6-5 direct deposit is feasible, the agency shall implement electronic
6-6 benefits transfer or direct deposit not later than September 1,
6-7 1999.
6-8 SECTION 6. (a) The attorney general, the Texas Department of
6-9 Health, and the Texas Workforce Commission shall analyze the
6-10 cost-effectiveness of using electronic benefits transfer in
6-11 conjunction with direct deposit to distribute child support
6-12 payments, benefits under the federal special supplemental food
6-13 program for women, infants, and children, and unemployment
6-14 benefits.
6-15 (b) Each agency may work with the interagency task force on
6-16 electronic benefits transfers to determine the cost-effectiveness
6-17 of using electronic benefits transfer to distribute payments or
6-18 benefits.
6-19 (c) Each agency shall complete the cost-benefit analysis not
6-20 later than December 30, 1997.
6-21 (d) If an agency determines that electronic benefits
6-22 transfer is a cost-effective method of distributing payments and
6-23 benefits, the agency shall submit a plan for implementing an
6-24 electronic benefits transfer system to the interagency task force
6-25 on electronic benefits transfers. The agency shall execute the
6-26 plan not later than August 31, 1998.
6-27 SECTION 7. Each agency that provides benefits or recurring
7-1 payments by way of electronic benefits transfer shall evaluate the
7-2 cost-effectiveness of providing access to the benefits or recurring
7-3 payments through automated teller machines.
7-4 SECTION 8. This Act takes effect September 1, 1997.
7-5 SECTION 9. The importance of this legislation and the
7-6 crowded condition of the calendars in both houses create an
7-7 emergency and an imperative public necessity that the
7-8 constitutional rule requiring bills to be read on three several
7-9 days in each house be suspended, and this rule is hereby suspended.