By: Zaffirini, Ellis S.B. No. 910
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the use of electronic transfer and data matching in
1-2 connection with certain benefits programs.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 531, Government Code, is
1-5 amended to conform to Section 8.10, Chapter 655, Acts of the 74th
1-6 Legislature, 1995, by adding Section 531.045 to read as follows:
1-7 Sec. 531.045. INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
1-8 TRANSFERS. (a) The interagency task force on electronic benefits
1-9 transfers shall advise and assist the commission in adding new
1-10 benefit programs to the statewide electronic benefits transfer
1-11 system.
1-12 (b) The task force is composed of:
1-13 (1) a representative of:
1-14 (A) the attorney general's office, appointed by
1-15 the attorney general;
1-16 (B) the comptroller's office, appointed by the
1-17 comptroller;
1-18 (C) the commission, appointed by the
1-19 commissioner;
1-20 (D) the Texas Department of Health, appointed by
1-21 the commissioner of public health;
1-22 (E) the Texas Department of Human Services,
1-23 appointed by the commissioner of human services;
2-1 (F) the Texas Workforce Commission, appointed by
2-2 the presiding officer of that agency; and
2-3 (G) the Texas Rehabilitation Commission,
2-4 appointed by the commissioner of that agency; and
2-5 (2) two representatives of each of the following
2-6 groups, appointed by the comptroller:
2-7 (A) retailers who maintain electronic benefits
2-8 transfer point-of-sale equipment;
2-9 (B) banks or owners of automatic teller
2-10 machines; and
2-11 (C) consumer or client advocacy organizations.
2-12 (c) A member of the task force serves at the will of the
2-13 appointing agency.
2-14 (d) The representative of the comptroller's office serves as
2-15 presiding officer. The task force may elect any other necessary
2-16 officers.
2-17 (e) The task force shall meet at the call of the presiding
2-18 officer.
2-19 (f) The appointing agency is responsible for the expenses of
2-20 a member's service on the task force. A member of the task force
2-21 is not entitled to additional compensation for serving on the task
2-22 force.
2-23 (g) The task force shall:
2-24 (1) serve as this state's counterpoint to the federal
2-25 electronic benefits transfer task force;
3-1 (2) identify benefit programs that merit addition to
3-2 this state's electronic benefits transfer system;
3-3 (3) identify and address problems that may occur if a
3-4 program is added;
3-5 (4) pursue state-federal partnerships to facilitate
3-6 the development and expansion of this state's electronic benefits
3-7 transfer system;
3-8 (5) track and distribute federal legislation and
3-9 information from other states that relate to electronic benefits
3-10 transfer systems;
3-11 (6) ensure efficiency and planning coordination in
3-12 relation to this state's electronic benefits transfer system;
3-13 (7) develop a plan using the experience and expertise
3-14 of the Department of Public Safety of the State of Texas for the
3-15 use of a photograph or other imaging technology on all electronic
3-16 benefits transfer cards and, if proven to be effective in reducing
3-17 fraud and misuse, begin using the new cards starting with
3-18 replacement cards for cards that were used in the program on June
3-19 13, 1995;
3-20 (8) review current and potential fraud problems with
3-21 electronic benefits transfer and propose methods to prevent or
3-22 deter fraud;
3-23 (9) evaluate the feasibility of adding the Medicaid
3-24 program to the state's electronic benefits transfer system; and
3-25 (10) develop a plan to assist beneficiaries of public
4-1 programs to obtain bank accounts.
4-2 (h) In determining which benefit programs can be added to
4-3 this state's electronic benefits transfer system, the task force
4-4 shall consider, at a minimum:
4-5 (1) the savings to this state;
4-6 (2) the ease of addition to existing infrastructure;
4-7 and
4-8 (3) the number of clients served.
4-9 SECTION 2. Subsections (a) and (b), Section 22.029, Human
4-10 Resources Code, are amended to read as follows:
4-11 (a) In order to enhance the state's ability to detect and
4-12 prevent fraud in the payment of claims under federal and state
4-13 entitlement programs, the Health and Human Services Commission
4-14 shall [may] implement a data matching project as described by
4-15 Subsection (b). The costs of developing and administering the data
4-16 matching project shall be paid entirely from amounts recovered by
4-17 participating agencies as a result of potential fraudulent
4-18 occurrences or administrative errors identified by the project.
4-19 (b) The project shall involve the matching of database
4-20 information among all agencies using electronic funds transfer and
4-21 other participating agencies. The commission shall contract
4-22 through a memorandum of understanding with each agency
4-23 participating in the project. After the data has been matched, the
4-24 commission shall furnish each participating agency with a list of
4-25 potential fraudulent occurrences or administrative errors.
5-1 SECTION 3. Chapter 22, Human Resources Code, is amended by
5-2 adding Section 22.0291 to read as follows:
5-3 Sec. 22.0291. PROJECT FOR IDENTIFYING PERSONS ELIGIBLE FOR
5-4 BENEFITS THROUGH DATA MATCHING. (a) The Texas Department of
5-5 Health shall implement a data matching project to locate
5-6 individuals who qualify to participate in the federal special
5-7 supplemental food program for women, infants, and children. The
5-8 department shall notify eligible persons and encourage them to
5-9 apply for the program.
5-10 (b) The department shall identify other state agency
5-11 databases that could be matched with the department's database for
5-12 the federal special supplemental food program for women, infants,
5-13 and children. The department shall contract through a memorandum
5-14 of understanding with each agency participating in the project.
5-15 (c) Agencies participating under Subsection (b) shall
5-16 cooperate fully with the department and promptly provide data in
5-17 the requested format.
5-18 (d) The department and participating agencies providing
5-19 source data for the project shall take all necessary steps to
5-20 protect the confidentiality of information provided as part of this
5-21 project, in compliance with all existing state and federal privacy
5-22 guidelines.
5-23 (e) The Texas Department of Health shall identify the
5-24 databases for the matching project not later than December 30,
5-25 1997, and shall begin database matching not later than July 1,
6-1 1998.
6-2 SECTION 4. Section 8.10, Chapter 655, Acts of the 74th
6-3 Legislature, 1995, is repealed.
6-4 SECTION 5. (a) The interagency task force on electronic
6-5 benefits transfers shall review each agency that makes recurring
6-6 payments to an individual or transmits data on state clients to
6-7 determine the feasibility of using electronic benefits transfer or
6-8 direct deposit to make the recurring payments or data transmission.
6-9 (b) The interagency task force on electronic benefits
6-10 transfers shall report its findings to the governor, lieutenant
6-11 governor, and speaker of the house of representatives not later
6-12 than December 30, 1997.
6-13 (c) If the interagency task force on electronic benefits
6-14 transfers determines that using electronic benefits transfer or
6-15 direct deposit is feasible, the agency shall implement electronic
6-16 benefits transfer or direct deposit not later than September 1,
6-17 1999.
6-18 SECTION 6. (a) The attorney general, the Texas Department
6-19 of Health, and the Texas Workforce Commission shall analyze the
6-20 cost-effectiveness of using electronic benefits transfer in
6-21 conjunction with direct deposit to distribute child support
6-22 payments, benefits under the federal special supplemental food
6-23 program for women, infants, and children, and unemployment
6-24 benefits.
6-25 (b) Each agency may work with the interagency task force on
7-1 electronic benefits transfers to determine the cost-effectiveness
7-2 of using electronic benefits transfer to distribute payments or
7-3 benefits.
7-4 (c) Each agency shall complete the cost-benefit analysis not
7-5 later than December 30, 1997.
7-6 (d) If an agency determines that electronic benefits
7-7 transfer is a cost-effective method of distributing payments and
7-8 benefits, the agency shall submit a plan for implementing an
7-9 electronic benefits transfer system to the interagency task force
7-10 on electronic benefits transfers. The agency shall execute the
7-11 plan not later than August 31, 1998.
7-12 SECTION 7. Each agency that provides benefits or recurring
7-13 payments by way of electronic benefits transfer shall evaluate the
7-14 cost-effectiveness of providing access to the benefits or recurring
7-15 payments through automated teller machines.
7-16 SECTION 8. This Act takes effect September 1, 1997.
7-17 SECTION 9. The importance of this legislation and the
7-18 crowded condition of the calendars in both houses create an
7-19 emergency and an imperative public necessity that the
7-20 constitutional rule requiring bills to be read on three several
7-21 days in each house be suspended, and this rule is hereby suspended.