1-1 By: Zaffirini, Ellis S.B. No. 910
1-2 (In the Senate - Filed March 4, 1997; March 6, 1997, read
1-3 first time and referred to Committee on Health and Human Services;
1-4 March 24, 1997, reported favorably, as amended, by the following
1-5 vote: Yeas 11, Nays 0; March 24, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Zaffirini
1-7 Amend S.B. No. 910 on page 2, line 39, by inserting after
1-8 "Subsection (b)." the following: "The costs of developing and
1-9 administering the data matching project shall be paid entirely from
1-10 amounts recovered by participating agencies as a result of
1-11 potential fraudulent occurrences or administrative errors
1-12 identified by the project."
1-13 A BILL TO BE ENTITLED
1-14 AN ACT
1-15 relating to the use of electronic transfer and data matching in
1-16 connection with certain benefits programs.
1-17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-18 SECTION 1. Subchapter B, Chapter 531, Government Code, is
1-19 amended to conform to Section 8.10, Chapter 655, Acts of the 74th
1-20 Legislature, 1995, by adding Section 531.045 to read as follows:
1-21 Sec. 531.045. INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
1-22 TRANSFERS. (a) The interagency task force on electronic benefits
1-23 transfers shall advise and assist the commission in adding new
1-24 benefit programs to the statewide electronic benefits transfer
1-25 system.
1-26 (b) The task force is composed of:
1-27 (1) a representative of:
1-28 (A) the attorney general's office, appointed by
1-29 the attorney general;
1-30 (B) the comptroller's office, appointed by the
1-31 comptroller;
1-32 (C) the commission, appointed by the
1-33 commissioner;
1-34 (D) the Texas Department of Health, appointed by
1-35 the commissioner of public health;
1-36 (E) the Texas Department of Human Services,
1-37 appointed by the commissioner of human services;
1-38 (F) the Texas Workforce Commission, appointed by
1-39 the presiding officer of that agency; and
1-40 (G) the Texas Rehabilitation Commission,
1-41 appointed by the commissioner of that agency; and
1-42 (2) two representatives of each of the following
1-43 groups, appointed by the comptroller:
1-44 (A) retailers who maintain electronic benefits
1-45 transfer point-of-sale equipment;
1-46 (B) banks or owners of automatic teller
1-47 machines; and
1-48 (C) consumer or client advocacy organizations.
1-49 (c) A member of the task force serves at the will of the
1-50 appointing agency.
1-51 (d) The representative of the comptroller's office serves as
1-52 presiding officer. The task force may elect any other necessary
1-53 officers.
1-54 (e) The task force shall meet at the call of the presiding
1-55 officer.
1-56 (f) The appointing agency is responsible for the expenses of
1-57 a member's service on the task force. A member of the task force
1-58 is not entitled to additional compensation for serving on the task
1-59 force.
1-60 (g) The task force shall:
1-61 (1) serve as this state's counterpoint to the federal
1-62 electronic benefits transfer task force;
1-63 (2) identify benefit programs that merit addition to
1-64 this state's electronic benefits transfer system;
2-1 (3) identify and address problems that may occur if a
2-2 program is added;
2-3 (4) pursue state-federal partnerships to facilitate
2-4 the development and expansion of this state's electronic benefits
2-5 transfer system;
2-6 (5) track and distribute federal legislation and
2-7 information from other states that relate to electronic benefits
2-8 transfer systems;
2-9 (6) ensure efficiency and planning coordination in
2-10 relation to this state's electronic benefits transfer system;
2-11 (7) develop a plan using the experience and expertise
2-12 of the Department of Public Safety of the State of Texas for the
2-13 use of a photograph or other imaging technology on all electronic
2-14 benefits transfer cards and, if proven to be effective in reducing
2-15 fraud and misuse, begin using the new cards starting with
2-16 replacement cards for cards that were used in the program on June
2-17 13, 1995;
2-18 (8) review current and potential fraud problems with
2-19 electronic benefits transfer and propose methods to prevent or
2-20 deter fraud;
2-21 (9) evaluate the feasibility of adding the Medicaid
2-22 program to the state's electronic benefits transfer system; and
2-23 (10) develop a plan to assist beneficiaries of public
2-24 programs to obtain bank accounts.
2-25 (h) In determining which benefit programs can be added to
2-26 this state's electronic benefits transfer system, the task force
2-27 shall consider, at a minimum:
2-28 (1) the savings to this state;
2-29 (2) the ease of addition to existing infrastructure;
2-30 and
2-31 (3) the number of clients served.
2-32 SECTION 2. Subsections (a) and (b), Section 22.029, Human
2-33 Resources Code, are amended to read as follows:
2-34 (a) In order to enhance the state's ability to detect and
2-35 prevent fraud in the payment of claims under federal and state
2-36 entitlement programs, the Health and Human Services Commission
2-37 shall [may] implement a data matching project as described by
2-38 Subsection (b).
2-39 (b) The project shall involve the matching of database
2-40 information among all agencies using electronic funds transfer and
2-41 other participating agencies. The commission shall contract
2-42 through a memorandum of understanding with each agency
2-43 participating in the project. After the data has been matched, the
2-44 commission shall furnish each participating agency with a list of
2-45 potential fraudulent occurrences or administrative errors.
2-46 SECTION 3. Chapter 22, Human Resources Code, is amended by
2-47 adding Section 22.0291 to read as follows:
2-48 Sec. 22.0291. PROJECT FOR IDENTIFYING PERSONS ELIGIBLE FOR
2-49 BENEFITS THROUGH DATA MATCHING. (a) The Texas Department of
2-50 Health shall implement a data matching project to locate
2-51 individuals who qualify to participate in the federal special
2-52 supplemental food program for women, infants, and children. The
2-53 department shall notify eligible persons and encourage them to
2-54 apply for the program.
2-55 (b) The department shall identify other state agency
2-56 databases that could be matched with the department's database for
2-57 the federal special supplemental food program for women, infants,
2-58 and children. The department shall contract through a memorandum
2-59 of understanding with each agency participating in the project.
2-60 (c) Agencies participating under Subsection (b) shall
2-61 cooperate fully with the department and promptly provide data in
2-62 the requested format.
2-63 (d) The department and participating agencies providing
2-64 source data for the project shall take all necessary steps to
2-65 protect the confidentiality of information provided as part of this
2-66 project, in compliance with all existing state and federal privacy
2-67 guidelines.
2-68 (e) The Texas Department of Health shall identify the
2-69 databases for the matching project not later than December 30,
3-1 1997, and shall begin database matching not later than July 1,
3-2 1998.
3-3 SECTION 4. Section 8.10, Chapter 655, Acts of the 74th
3-4 Legislature, 1995, is repealed.
3-5 SECTION 5. (a) The interagency task force on electronic
3-6 benefits transfers shall review each agency that makes recurring
3-7 payments to an individual or transmits data on state clients to
3-8 determine the feasibility of using electronic benefits transfer or
3-9 direct deposit to make the recurring payments or data transmission.
3-10 (b) The interagency task force on electronic benefits
3-11 transfers shall report its findings to the governor, lieutenant
3-12 governor, and speaker of the house of representatives not later
3-13 than December 30, 1997.
3-14 (c) If the interagency task force on electronic benefits
3-15 transfers determines that using electronic benefits transfer or
3-16 direct deposit is feasible, the agency shall implement electronic
3-17 benefits transfer or direct deposit not later than September 1,
3-18 1999.
3-19 SECTION 6. (a) The attorney general, the Texas Department
3-20 of Health, and the Texas Workforce Commission shall analyze the
3-21 cost-effectiveness of using electronic benefits transfer in
3-22 conjunction with direct deposit to distribute child support
3-23 payments, benefits under the federal special supplemental food
3-24 program for women, infants, and children, and unemployment
3-25 benefits.
3-26 (b) Each agency may work with the interagency task force on
3-27 electronic benefits transfers to determine the cost-effectiveness
3-28 of using electronic benefits transfer to distribute payments or
3-29 benefits.
3-30 (c) Each agency shall complete the cost-benefit analysis not
3-31 later than December 30, 1997.
3-32 (d) If an agency determines that electronic benefits
3-33 transfer is a cost-effective method of distributing payments and
3-34 benefits, the agency shall submit a plan for implementing an
3-35 electronic benefits transfer system to the interagency task force
3-36 on electronic benefits transfers. The agency shall execute the
3-37 plan not later than August 31, 1998.
3-38 SECTION 7. Each agency that provides benefits or recurring
3-39 payments by way of electronic benefits transfer shall evaluate the
3-40 cost-effectiveness of providing access to the benefits or recurring
3-41 payments through automated teller machines.
3-42 SECTION 8. This Act takes effect September 1, 1997.
3-43 SECTION 9. The importance of this legislation and the
3-44 crowded condition of the calendars in both houses create an
3-45 emergency and an imperative public necessity that the
3-46 constitutional rule requiring bills to be read on three several
3-47 days in each house be suspended, and this rule is hereby suspended.
3-48 * * * * *