By Nelson S.B. No. 742
75R2806 KKA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the prevention and recovery of benefits granted in
1-3 error under the food stamp program and the program of financial
1-4 assistance for persons with dependent children.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Sections 466.407(a) and (c), Government Code, are
1-7 amended to read as follows:
1-8 (a) The executive director shall deduct the amount of a
1-9 delinquent tax or other money from the winnings of a person who has
1-10 been finally determined to be:
1-11 (1) delinquent in the payment of a tax or other money
1-12 collected by the comptroller[, the state treasurer,] or the Texas
1-13 Alcoholic Beverage Commission;
1-14 (2) delinquent in making child support payments
1-15 administered or collected by the attorney general;
1-16 (3) delinquent in reimbursing the Texas Department of
1-17 Human Services for a benefit granted in error under the food stamp
1-18 program or the program of financial assistance under Chapter 31,
1-19 Human Resources Code;
1-20 (4) in default on a loan made under Chapter 52,
1-21 Education Code; or
1-22 (5) [(4)] in default on a loan guaranteed under
1-23 Chapter 57, Education Code.
1-24 (c) The attorney general, comptroller, [state treasurer,]
2-1 Texas Alcoholic Beverage Commission, Texas Department of Human
2-2 Services, Texas Higher Education Coordinating Board, and Texas
2-3 Guaranteed Student Loan Corporation shall each provide the
2-4 executive director with a report of persons who have been finally
2-5 determined to be delinquent in the payment of a tax or other money
2-6 collected by the agency. The commission shall adopt rules
2-7 regarding the form and frequency of reports under this subsection.
2-8 SECTION 2. Subchapter B, Chapter 531, Government Code, is
2-9 amended by adding Section 531.047 to read as follows:
2-10 Sec. 531.047. MINIMUM COLLECTION GOAL. (a) Before August
2-11 31 of each year, the commission by rule shall set a minimum goal
2-12 for the Texas Department of Human Services that specifies the
2-13 percentage of the amount of benefits granted by the department in
2-14 error under the food stamp program or the program of financial
2-15 assistance under Chapter 31, Human Resources Code, that the
2-16 department should recover. The commission shall set the percentage
2-17 based on comparable recovery rates reported by other states.
2-18 (b) If the department fails to meet the goal set under
2-19 Subsection (a) for the fiscal year, the commissioner shall request
2-20 budget execution during the succeeding fiscal year for the transfer
2-21 of money from the department's operating budget to another health
2-22 and human services agency. The amount requested to be transferred
2-23 is the amount equal to the difference between the amount the
2-24 department would have collected had the department met the goal and
2-25 the amount the department actually collected.
2-26 (c) The commission, the governor, and the Legislative Budget
2-27 Board shall monitor the department's performance in meeting the
3-1 goal set under this section. The department shall cooperate by
3-2 providing to the commission, the governor, and the Legislative
3-3 Budget Board, on request, information concerning the department's
3-4 collection efforts.
3-5 SECTION 3. Chapter 22, Human Resources Code, is amended by
3-6 adding Sections 22.0251-22.0254 to read as follows:
3-7 Sec. 22.0251. TIMELY DETERMINATION OF ERRORS. (a) Subject
3-8 to the approval of the commissioner of health and human services,
3-9 the department shall:
3-10 (1) determine and record the elapsed time taken by the
3-11 department to discover an error in making a grant under the food
3-12 stamp program or the program of financial assistance under Chapter
3-13 31;
3-14 (2) set progressive goals for reducing the discovery
3-15 time described by Subdivision (1); and
3-16 (3) adopt a schedule to meet the goals set under
3-17 Subdivision (2).
3-18 (b) Each fiscal quarter, the department shall submit to the
3-19 governor, the Legislative Budget Board, and the Health and Human
3-20 Services Commission a report detailing the department's progress in
3-21 reaching its goals under Subsection (a)(2).
3-22 Sec. 22.0252. TELEPHONE COLLECTION PROGRAM. (a) The
3-23 department shall use the telephone to attempt to collect
3-24 reimbursement from a person who receives a benefit granted in error
3-25 under the food stamp program or the program of financial assistance
3-26 under Chapter 31.
3-27 (b) The department shall submit to the governor, the
4-1 Legislative Budget Board, and the Health and Human Services
4-2 Commission a semiannual report on the operation and success of the
4-3 telephone collection program.
4-4 Sec. 22.0253. PARTICIPATION IN FEDERAL TAX REFUND OFFSET
4-5 PROGRAM. The department shall participate in the Federal Tax
4-6 Refund Offset Program (FTROP) to attempt to recover benefits
4-7 granted by the department in error under the food stamp program.
4-8 The department shall submit as many claims that meet program
4-9 criteria as possible for offset against income tax returns.
4-10 Sec. 22.0254. PROSECUTION OF FRAUDULENT CLAIMS. (a) The
4-11 department shall keep a record of the dispositions of referrals
4-12 made by the department to a district attorney concerning fraudulent
4-13 claims for benefits under the food stamp program or the program of
4-14 financial assistance under Chapter 31.
4-15 (b) The department shall:
4-16 (1) obtain status information biweekly from the
4-17 appropriate district attorney on each major fraudulent claim
4-18 referred by the department;
4-19 (2) request a written explanation from the appropriate
4-20 district attorney for each case referred in which the district
4-21 attorney declines to prosecute; and
4-22 (3) encourage the creation of a special welfare fraud
4-23 unit in each district attorney's office that serves a municipality
4-24 with a population of more than 250,000, to be financed by amounts
4-25 provided by the department.
4-26 (c) A district attorney shall cooperate in providing
4-27 information requested by the department under this section.
5-1 (d) The department by rule shall define what constitutes a
5-2 major fraudulent claim under Subsection (b)(1).
5-3 SECTION 4. Section 22.027, Human Resources Code, is amended
5-4 by amending Subsection (b) and adding Subsection (e) to read as
5-5 follows:
5-6 (b) The department shall:
5-7 (1) aggressively publicize successful fraud
5-8 prosecutions and fraud-prevention programs through all available
5-9 means, including the use of statewide press releases issued in
5-10 coordination with the Health and Human Services Commission; and
5-11 (2) establish and promote a toll-free hotline for
5-12 reporting suspected fraud in programs administered by the
5-13 department.
5-14 (e) The department shall submit to the governor, the
5-15 Legislative Budget Board, and the Health and Human Services
5-16 Commission a semiannual report on the results of computerized
5-17 matching of department information with information from
5-18 neighboring states, if any, and information from the Texas
5-19 Department of Criminal Justice.
5-20 SECTION 5. Chapter 22, Human Resources Code, is amended by
5-21 adding Section 22.0291 to read as follows:
5-22 Sec. 22.0291. EMBASSY INFORMATION MATCHING SYSTEM. (a) The
5-23 department shall, through the use of a computerized matching
5-24 system, compare department information relating to applicants for
5-25 and recipients of food stamps and financial assistance under
5-26 Chapter 31 with information obtained from an embassy relating to
5-27 immigrants and visitors to the United States from the country
6-1 represented by the embassy for the purpose of preventing
6-2 individuals from unlawfully receiving public assistance benefits
6-3 administered by the department.
6-4 (b) In beginning to carry out the duties under this section,
6-5 the department shall share and compare information with the
6-6 embassies that represent countries that have the most citizens
6-7 residing in this state.
6-8 (c) The department may enter into an agreement with an
6-9 embassy as necessary to implement this section.
6-10 (d) The department and embassies sharing information under
6-11 this section shall protect the confidentiality of the shared
6-12 information in compliance with all existing state and federal
6-13 privacy guidelines.
6-14 (e) The department shall submit to the governor, the
6-15 Legislative Budget Board, and the Health and Human Services
6-16 Commission a semiannual report on the operation and success of the
6-17 embassy matching system.
6-18 SECTION 6. Subtitle B, Title 2, Human Resources Code, is
6-19 amended by adding Chapter 23 to read as follows:
6-20 CHAPTER 23. SUSPENSION OF LICENSE FOR FAILURE
6-21 TO REIMBURSE DEPARTMENT
6-22 Sec. 23.001. DEFINITIONS. In this chapter:
6-23 (1) "License" means a license, certificate,
6-24 registration, permit, or other authorization that:
6-25 (A) is issued by a licensing authority;
6-26 (B) is subject before expiration to suspension,
6-27 revocation, forfeiture, or termination by an issuing licensing
7-1 authority; and
7-2 (C) a person must obtain to:
7-3 (i) operate a motor vehicle; or
7-4 (ii) engage in a recreational activity,
7-5 including hunting and fishing, for which a license or permit is
7-6 required.
7-7 (2) "Order suspending a license" means an order issued
7-8 by the department directing a licensing authority to suspend a
7-9 license.
7-10 Sec. 23.002. LICENSING AUTHORITIES SUBJECT TO CHAPTER. In
7-11 this chapter, "licensing authority" means:
7-12 (1) the Parks and Wildlife Department; and
7-13 (2) the Department of Public Safety of the State of
7-14 Texas.
7-15 Sec. 23.003. SUSPENSION OF LICENSE. The department may
7-16 issue an order suspending a license as provided by this chapter of
7-17 a person who, after notice:
7-18 (1) has failed to reimburse the department for an
7-19 amount in excess of $250 granted in error to the person under the
7-20 food stamp program or the program of financial assistance under
7-21 Chapter 31;
7-22 (2) has been provided an opportunity to make payments
7-23 toward the amount owed under a repayment schedule; and
7-24 (3) has failed to comply with the repayment schedule.
7-25 Sec. 23.004. INITIATION OF PROCEEDING. (a) The department
7-26 may initiate a proceeding to suspend a person's license by filing a
7-27 petition with the department's hearings division.
8-1 (b) The proceeding shall be conducted by the department's
8-2 hearings division. The proceeding is a contested case under
8-3 Chapter 2001, Government Code, except that Section 2001.054 does
8-4 not apply.
8-5 (c) The commissioner shall render a final decision in the
8-6 proceeding.
8-7 Sec. 23.005. CONTENTS OF PETITION. A petition under this
8-8 chapter must state that license suspension is authorized under
8-9 Section 23.003 and allege:
8-10 (1) the name and, if known, social security number of
8-11 the person;
8-12 (2) the type of license the person is believed to hold
8-13 and the name of the licensing authority; and
8-14 (3) the amount owed to the department.
8-15 Sec. 23.006. NOTICE. (a) On initiating a proceeding under
8-16 Section 23.004, the department shall give the person named in the
8-17 petition:
8-18 (1) notice of the person's right to a hearing before
8-19 the hearings division of the department;
8-20 (2) notice of the deadline for requesting a hearing;
8-21 and
8-22 (3) a form requesting a hearing.
8-23 (b) Notice under this section may be served as in civil
8-24 cases generally.
8-25 (c) The notice must state that an order suspending a license
8-26 shall be rendered on the 60th day after the date of service of the
8-27 notice unless by that date:
9-1 (1) the person pays the amount owed to the department;
9-2 (2) the person presents evidence of a payment history
9-3 satisfactory to the department in compliance with a reasonable
9-4 repayment schedule; or
9-5 (3) the person appears at a hearing before the
9-6 hearings division and shows that the request for suspension should
9-7 be denied or stayed.
9-8 Sec. 23.007. HEARING ON PETITION TO SUSPEND LICENSE. (a) A
9-9 request for a hearing and motion to stay suspension must be filed
9-10 with the department not later than the 20th day after the date of
9-11 service of the notice under Section 23.006.
9-12 (b) If a request for a hearing is filed, the hearings
9-13 division of the department shall:
9-14 (1) promptly schedule a hearing;
9-15 (2) notify the person and an appropriate
9-16 representative of the department of the date, time, and location of
9-17 the hearing; and
9-18 (3) stay suspension pending the hearing.
9-19 Sec. 23.008. ORDER SUSPENDING LICENSE. (a) On making the
9-20 findings required by Section 23.003, the department shall render an
9-21 order suspending a license.
9-22 (b) The department may stay an order suspending a license
9-23 conditioned on the person's compliance with a reasonable repayment
9-24 schedule that is incorporated in the order. An order suspending a
9-25 license with a stay of the suspension may not be served on the
9-26 licensing authority unless the stay is revoked as provided by this
9-27 chapter.
10-1 (c) A final order suspending a license rendered by the
10-2 department shall be forwarded to the appropriate licensing
10-3 authority.
10-4 (d) If the department renders an order suspending a license,
10-5 the person may also be ordered not to engage in the licensed
10-6 activity.
10-7 (e) If the department finds that the petition for suspension
10-8 should be denied, the petition shall be dismissed without
10-9 prejudice, and an order suspending a license may not be rendered.
10-10 Sec. 23.009. DEFAULT ORDER. The department shall consider
10-11 the allegations of the petition for suspension to be admitted and
10-12 shall render an order suspending a license if the person fails to:
10-13 (1) respond to a notice issued under Section 23.006;
10-14 (2) request a hearing; or
10-15 (3) appear at a hearing.
10-16 Sec. 23.010. REVIEW OF FINAL ADMINISTRATIVE ORDER. An order
10-17 issued by the department under this chapter is a final agency
10-18 decision and is subject to review as provided by Chapter 2001,
10-19 Government Code.
10-20 Sec. 23.011. ACTION BY LICENSING AUTHORITY. (a) On receipt
10-21 of a final order suspending a license, the licensing authority
10-22 shall immediately determine if the authority has issued a license
10-23 to the person named on the order and, if a license has been issued:
10-24 (1) record the suspension of the license in the
10-25 licensing authority's records;
10-26 (2) report the suspension as appropriate; and
10-27 (3) demand surrender of the suspended license if
11-1 required by law for other cases in which a license is suspended.
11-2 (b) A licensing authority shall implement the terms of a
11-3 final order suspending a license without additional review or
11-4 hearing. The authority may provide notice as appropriate to the
11-5 license holder or to others concerned with the license.
11-6 (c) A licensing authority may not modify, remand, reverse,
11-7 vacate, or stay an order suspending a license issued under this
11-8 chapter and may not review, vacate, or reconsider the terms of a
11-9 final order suspending a license.
11-10 (d) A person who is the subject of a final order suspending
11-11 a license is not entitled to a refund for any fee or deposit paid
11-12 to the licensing authority.
11-13 (e) A person who continues to engage in the licensed
11-14 activity after the implementation of the order suspending a license
11-15 by the licensing authority is liable for the same civil and
11-16 criminal penalties provided for engaging in the licensed activity
11-17 without a license or while a license is suspended that apply to
11-18 any other license holder of that licensing authority.
11-19 (f) A licensing authority is exempt from liability to a
11-20 license holder for any act authorized under this chapter performed
11-21 by the authority.
11-22 (g) Except as provided by this chapter, an order suspending
11-23 a license or dismissing a petition for the suspension of a license
11-24 does not affect the power of a licensing authority to grant, deny,
11-25 suspend, revoke, terminate, or renew a license.
11-26 (h) The denial or suspension of a driver's license under
11-27 this chapter is governed by this chapter and not by Subtitle B,
12-1 Title 7, Transportation Code.
12-2 Sec. 23.012. MOTION TO REVOKE STAY. (a) The department may
12-3 file a motion with the department's hearings division to revoke the
12-4 stay of an order suspending a license if the person does not comply
12-5 with the terms of a reasonable repayment plan entered into by the
12-6 person.
12-7 (b) Notice to the person of a motion to revoke stay under
12-8 this section may be given by personal service or by mail to the
12-9 address provided by the person, if any, in the order suspending a
12-10 license. The notice must include a notice of hearing before the
12-11 hearings division. The notice must be provided to the person not
12-12 less than 10 days before the date of the hearing.
12-13 (c) A motion to revoke stay must allege the manner in which
12-14 the person failed to comply with the repayment plan.
12-15 (d) If the department finds that the person is not in
12-16 compliance with the terms of the repayment plan, the department
12-17 shall revoke the stay of the order suspending a license and render
12-18 a final order suspending a license.
12-19 Sec. 23.013. VACATING OR STAYING ORDER SUSPENDING A LICENSE.
12-20 (a) The department may render an order vacating or staying an
12-21 order suspending a license if the person has paid all amounts owed
12-22 to the department or has established a satisfactory payment record.
12-23 (b) The department shall promptly deliver an order vacating
12-24 or staying an order suspending a license to the appropriate
12-25 licensing authority.
12-26 (c) On receipt of an order vacating or staying an order
12-27 suspending a license, the licensing authority shall promptly
13-1 reinstate and return the affected license to the person if the
13-2 person is otherwise qualified for the license.
13-3 (d) An order rendered under this section does not affect the
13-4 right of the department to any other remedy provided by law,
13-5 including the right to seek relief under this chapter. An order
13-6 rendered under this section does not affect the power of a
13-7 licensing authority to grant, deny, suspend, revoke, terminate, or
13-8 renew a license as otherwise provided by law.
13-9 Sec. 23.014. FEE BY LICENSING AUTHORITY. A licensing
13-10 authority may charge a fee to a person who is the subject of an
13-11 order suspending a license in an amount sufficient to recover the
13-12 administrative costs incurred by the authority under this chapter.
13-13 Sec. 23.015. COOPERATION BETWEEN LICENSING AUTHORITIES AND
13-14 DEPARTMENT. (a) The department may request from each licensing
13-15 authority the name, address, social security number, license
13-16 renewal date, and other identifying information for each individual
13-17 who holds, applies for, or renews a license issued by the
13-18 authority.
13-19 (b) A licensing authority shall provide the requested
13-20 information in the manner agreed to by the department and the
13-21 licensing authority.
13-22 (c) The department may enter into a cooperative agreement
13-23 with a licensing authority to administer this chapter in a
13-24 cost-effective manner.
13-25 (d) The department may adopt a reasonable implementation
13-26 schedule for the requirements of this section.
13-27 Sec. 23.016. RULES, FORMS, AND PROCEDURES. The department
14-1 by rule shall prescribe forms and procedures for the implementation
14-2 of this chapter.
14-3 SECTION 7. USE OF PRIVATE COLLECTION AGENTS. (a) With
14-4 assistance from the Council on Competitive Government, the Texas
14-5 Department of Human Services shall, in addition to other methods of
14-6 collection, use private collection agents to collect reimbursements
14-7 for benefits granted by the department in error under the food
14-8 stamp program or the program of financial assistance under Chapter
14-9 31, Human Resources Code.
14-10 (b) The department shall ensure that the collection agents
14-11 are engaged in collection work on behalf of the department not
14-12 later than March 1, 1998. The department shall strive to refer
14-13 approximately 20 percent of the department's claims for
14-14 reimbursement to the collection agents.
14-15 (c) On March 1, 1998, and September 1, 1998, the department
14-16 shall submit a progress report to the governor, the Legislative
14-17 Budget Board, and the Health and Human Services Commission on the
14-18 department's efforts to use private collection agents to collect
14-19 reimbursements for erroneous benefits. On March 1, 1999, the
14-20 department shall submit to the governor, the Legislative Budget
14-21 Board, and the Health and Human Services Commission a final report
14-22 on the success of the private collection effort.
14-23 (d) Unless otherwise directed by the 76th Legislature, the
14-24 department shall evaluate the success of the use of private
14-25 collection agents to collect benefit reimbursements and adjust the
14-26 number of claims referred to the agents, as appropriate.
14-27 SECTION 8. EXPEDITED FOOD STAMP DELIVERY; IMPACT ON
15-1 FRAUDULENT CLAIMS. (a) The Texas Department of Human Services
15-2 shall conduct a study to determine the impact of the one-day
15-3 screening and service delivery requirements prescribed by Section
15-4 33.002(e), Human Resources Code, on the level of fraud in the food
15-5 stamp program.
15-6 (b) Not later than January 1, 1998, the department shall
15-7 submit to the governor, the Legislative Budget Board, and the
15-8 Health and Human Services Commission a report on the results of the
15-9 study. The report must include:
15-10 (1) detailed statistics by region on the number of
15-11 fraudulent claims linked to the one-day screening and service
15-12 delivery requirements; and
15-13 (2) recommendations on modifying the one-day screening
15-14 and service delivery requirements, as authorized by Section
15-15 33.002(g), Human Resources Code.
15-16 SECTION 9. STUDY ON COLLECTION OF ERRONEOUS BENEFITS THROUGH
15-17 LIENS OR WAGE GARNISHMENT. (a) The Texas Department of Human
15-18 Services shall conduct a study to determine the feasibility of
15-19 collecting amounts of benefits granted by the department in error
15-20 under the food stamp program or the program of financial assistance
15-21 under Chapter 31, Human Resources Code, by the garnishment of wages
15-22 or the filing of liens against property.
15-23 (b) Not later than March 1, 1998, the department shall
15-24 submit to the governor, the Legislative Budget Board, and the
15-25 Health and Human Services Commission a report on the results of the
15-26 study.
15-27 SECTION 10. TRANSITION RELATING TO DEDUCTIONS FROM LOTTERY
16-1 PRIZES. (a) The Texas Department of Human Services shall take all
16-2 action necessary to implement the change in law made by Section 1
16-3 of this Act not later than January 1, 1998. The department may not
16-4 seek recovery through lottery prize deduction of an amount of a
16-5 benefit granted in error to a person under the food stamp program
16-6 or the program of financial assistance under Chapter 31, Human
16-7 Resources Code, before September 1, 1997.
16-8 (b) The executive director of the Texas Lottery Commission
16-9 is not required under Section 466.407, Government Code, as amended
16-10 by this Act, to deduct from lottery prizes erroneous amounts
16-11 granted to lottery winners by the Texas Department of Human
16-12 Services until the department provides to the commission all
16-13 necessary information and reports required for implementation of
16-14 that section.
16-15 SECTION 11. TRANSITION RELATING TO SUSPENSION OF LICENSES.
16-16 The Texas Department of Human Services shall take all action
16-17 necessary to implement the change in law made by Section 6 of this
16-18 Act not later than January 1, 1998. The department may not suspend
16-19 a license because of a person's failure to reimburse the department
16-20 for a benefit granted in error under the food stamp program or the
16-21 program of financial assistance under Chapter 31, Human Resources
16-22 Code, before September 1, 1997.
16-23 SECTION 12. IMPLEMENTATION OF TELEPHONE COLLECTION PROGRAM.
16-24 The Texas Department of Human Services shall begin operation of the
16-25 telephone collection program required by Section 22.0252, Human
16-26 Resources Code, as added by this Act, not later than January 1,
16-27 1998.
17-1 SECTION 13. INITIAL REPORTING DATES. (a) Not later than
17-2 September 1, 1997, the Texas Department of Human Services shall
17-3 submit the initial report required by Section 22.027(e), Human
17-4 Resources Code, as added by this Act.
17-5 (b) Not later than January 1, 1998, the Texas Department of
17-6 Human Services shall submit the initial reports required by
17-7 Sections 22.0251(b) and 22.0291(e), Human Resources Code, as added
17-8 by this Act.
17-9 (c) Not later than September 1, 1998, the Texas Department
17-10 of Human Services shall submit the initial report required by
17-11 Section 22.0252(b), Human Resources Code, as added by this Act.
17-12 SECTION 14. EMERGENCY. The importance of this legislation
17-13 and the crowded condition of the calendars in both houses create an
17-14 emergency and an imperative public necessity that the
17-15 constitutional rule requiring bills to be read on three several
17-16 days in each house be suspended, and this rule is hereby suspended,
17-17 and that this Act take effect and be in force from and after its
17-18 passage, and it is so enacted.