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 by adding Section 531.045 to read as follows:
1-6 Sec. 531.045. INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
1-7 TRANSFERS. (a) The interagency task force on electronic benefits
1-8 transfers shall advise and assist the commission in adding new
1-9 benefit programs to the statewide electronic benefits transfer
1-10 system.
1-11 (b) The task force is composed of:
1-12 (1) a representative of:
1-13 (A) the attorney general's office, appointed by
1-14 the attorney general;
1-15 (B) the comptroller's office, appointed by the
1-16 comptroller;
1-17 (C) the commission, appointed by the
1-18 commissioner;
1-19 (D) the Texas Department of Health, appointed by
1-20 the commissioner of public health;
1-21 (E) the Texas Department of Human Services,
1-22 appointed by the commissioner of human services;
1-23 (F) the Texas Workforce Commission, appointed by
2-1 the presiding officer of that agency; and
2-2 (G) the Texas Rehabilitation Commission,
2-3 appointed by the commissioner of that agency; and
2-4 (2) two representatives of each of the following
2-5 groups, appointed by the comptroller:
2-6 (A) retailers who maintain electronic benefits
2-7 transfer point-of-sale equipment;
2-8 (B) banks or owners of automatic teller
2-9 machines; and
2-10 (C) consumer or client advocacy organizations.
2-11 (c) A member of the task force serves at the will of the
2-12 appointing agency.
2-13 (d) The representative of the comptroller's office serves as
2-14 presiding officer. The task force may elect any other necessary
2-15 officers.
2-16 (e) The task force shall meet at the call of the presiding
2-17 officer.
2-18 (f) The appointing agency is responsible for the expenses of
2-19 a member's service on the task force. A member of the task force
2-20 is not entitled to additional compensation for serving on the task
2-21 force.
2-22 (g) The task force shall:
2-23 (1) serve as this state's counterpoint to the federal
2-24 electronic benefits transfer task force;
2-25 (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 appropriate state agencies for the use of a photograph or other
3-14 imaging technology on all electronic benefits transfer cards and,
3-15 if proven to be effective in reducing fraud and misuse, begin using
3-16 the new cards starting with replacement cards for cards that were
3-17 used in the program on June 13, 1995;
3-18 (8) review current and potential fraud problems with
3-19 electronic benefits transfer and propose methods to prevent or
3-20 deter fraud;
3-21 (9) evaluate the feasibility of adding the Medicaid
3-22 program to the state's electronic benefits transfer system; and
3-23 (10) develop a plan to assist beneficiaries of public
3-24 programs to obtain bank accounts.
3-25 (h) In determining which benefit programs can be added to
4-1 this state's electronic benefits transfer system, the task force
4-2 shall consider, at a minimum:
4-3 (1) the savings to this state;
4-4 (2) the ease of addition to existing infrastructure;
4-5 and
4-6 (3) the number of clients served.
4-7 SECTION 2. Subsections (a) and (b), Section 22.029, Human
4-8 Resources Code, are amended to read as follows:
4-9 (a) In order to enhance the state's ability to detect and
4-10 prevent fraud in the payment of claims under federal and state
4-11 entitlement programs, the Health and Human Services Commission
4-12 shall [may] implement a data matching project as described by
4-13 Subsection (b). The costs of developing and administering the data
4-14 matching project shall be paid entirely from amounts recovered by
4-15 participating agencies as a result of potential fraudulent
4-16 occurrences or administrative errors identified by the project.
4-17 (b) The project shall involve the matching of database
4-18 information among all agencies using electronic funds transfer and
4-19 other participating agencies. The commission shall contract
4-20 through a memorandum of understanding with each agency
4-21 participating in the project. After the data has been matched, the
4-22 commission shall furnish each participating agency with a list of
4-23 potential fraudulent occurrences or administrative errors.
4-24 SECTION 3. Chapter 22, Human Resources Code, is amended by
4-25 adding Section 22.0291 to read as follows:
5-1 Sec. 22.0291. PROJECT FOR IDENTIFYING PERSONS ELIGIBLE FOR
5-2 BENEFITS THROUGH DATA MATCHING. (a) The Texas Department of
5-3 Health shall implement a data matching project to locate
5-4 individuals who qualify to participate in the federal special
5-5 supplemental food program for women, infants, and children. The
5-6 department shall notify eligible persons and encourage them to
5-7 apply for the program.
5-8 (b) The department shall identify other state agency
5-9 databases that could be matched with the department's database for
5-10 the federal special supplemental food program for women, infants,
5-11 and children. The department shall contract through a memorandum
5-12 of understanding with each agency participating in the project.
5-13 (c) Agencies participating under Subsection (b) shall
5-14 cooperate fully with the department and promptly provide data in
5-15 the requested format.
5-16 (d) The department and participating agencies providing
5-17 source data for the project shall take all necessary steps to
5-18 protect the confidentiality of information provided as part of this
5-19 project, in compliance with all existing state and federal privacy
5-20 guidelines.
5-21 (e) The Texas Department of Health shall identify the
5-22 databases for the matching project not later than December 30,
5-23 1997, and shall begin database matching not later than July 1,
5-24 1998.
5-25 SECTION 4. (a) In addition to the substantive changes made
6-1 by this Act, this Act conforms Chapter 531, Government Code, to
6-2 Section 8.10, Chapter 655, Acts of the 74th Legislature, 1995.
6-3 (b) Section 8.10, Chapter 655, Acts of the 74th
6-4 Legislature, 1995, is repealed.
6-5 (c) To the extent of any conflict, this Act prevails over
6-6 another Act of the 75th Legislature, Regular Session, 1997,
6-7 relating to nonsubstantive additions to and corrections in enacted
6-8 codes.
6-9 SECTION 5. (a) The interagency task force on electronic
6-10 benefits transfers shall review each agency that makes recurring
6-11 payments to an individual or transmits data on state clients to
6-12 determine the feasibility of using electronic benefits transfer or
6-13 direct deposit to make the recurring payments or data transmission.
6-14 (b) The interagency task force on electronic benefits
6-15 transfers shall report its findings to the governor, lieutenant
6-16 governor, and speaker of the house of representatives not later
6-17 than December 30, 1997.
6-18 (c) If the interagency task force on electronic benefits
6-19 transfers determines that using electronic benefits transfer or
6-20 direct deposit is feasible, the agency shall implement electronic
6-21 benefits transfer or direct deposit not later than September 1,
6-22 1999.
6-23 SECTION 6. (a) The attorney general, the Texas Department
6-24 of Health, and the Texas Workforce Commission shall analyze the
6-25 cost-effectiveness of using electronic benefits transfer in
7-1 conjunction with direct deposit to distribute child support
7-2 payments, benefits under the federal special supplemental food
7-3 program for women, infants, and children, and unemployment
7-4 benefits.
7-5 (b) Each agency may work with the interagency task force on
7-6 electronic benefits transfers to determine the cost-effectiveness
7-7 of using electronic benefits transfer to distribute payments or
7-8 benefits.
7-9 (c) Each agency shall complete the cost-benefit analysis not
7-10 later than December 30, 1997.
7-11 (d) If an agency determines that electronic benefits
7-12 transfer is a cost-effective method of distributing payments and
7-13 benefits, the agency shall submit a plan for implementing an
7-14 electronic benefits transfer system to the interagency task force
7-15 on electronic benefits transfers. The agency shall execute the
7-16 plan not later than August 31, 1998.
7-17 SECTION 7. Each agency that provides benefits or recurring
7-18 payments by way of electronic benefits transfer shall evaluate the
7-19 cost-effectiveness of providing access to the benefits or recurring
7-20 payments through automated teller machines.
7-21 SECTION 8. This Act takes effect September 1, 1997.
7-22 SECTION 9. The importance of this legislation and the
7-23 crowded condition of the calendars in both houses create an
7-24 emergency and an imperative public necessity that the
7-25 constitutional rule requiring bills to be read on three several
8-1 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 910 passed the Senate on
April 3, 1997, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 22, 1997, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 910 passed the House, with
amendment, on May 21, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor