By Moncrief S.B. No. 1400
75R2804 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the prevention and detection of fraud in certain
1-3 programs administered by the Texas Department of Human Services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 22, Human Resources Code, is amended by
1-6 adding Section 22.0255 to read as follows:
1-7 Sec. 22.0255. RETURNED-MAIL REDUCTION. (a) The department
1-8 shall develop and implement policies and procedures designed to
1-9 improve the department's electronic benefits transfer cards used
1-10 for federal and state entitlement programs administered by the
1-11 department.
1-12 (b) The department shall set an annual goal of reducing the
1-13 amount of returned mail it receives under the programs described by
1-14 Subsection (a) so that the percentage rate of returned mail is
1-15 within one percent of the percentage rate of returned mail reported
1-16 annually for the credit card and debit card industries.
1-17 (c) The department shall submit a biennial report to the
1-18 governor's office, the legislature, and the Legislative Budget
1-19 Board detailing the progress the department has made in reaching
1-20 its goals under this section.
1-21 SECTION 2. Section 22.027, Human Resources Code, is amended
1-22 by adding Subsections (e) and (f) to read as follows:
1-23 (e) The department and the comptroller shall coordinate
1-24 their efforts to cross-train agency staff whose duties include
2-1 fraud prevention and detection to enable the staff to identify and
2-2 report possible fraudulent activity in programs, taxes, or funds
2-3 administered by the other agency.
2-4 (f) A local law enforcement agency that seizes an electronic
2-5 benefits transfer (EBT) card issued by the department to a
2-6 recipient of an entitlement program administered by the department
2-7 shall immediately notify the department of the seizure and return
2-8 the card to the department. The department shall send letters to
2-9 local law enforcement agencies or post materials in the buildings
2-10 in which those agencies are located to ensure that local law
2-11 enforcement officials are aware of this requirement.
2-12 SECTION 3. Chapter 33, Human Resources Code, is amended by
2-13 adding Sections 33.0022 and 33.0023 to read as follows:
2-14 Sec. 33.0022. FRAUD PREVENTION IN FOOD STAMP PROGRAM. (a)
2-15 The electronic benefits transfer (EBT) system operator and
2-16 installer shall report to the department and the United States
2-17 Department of Agriculture suspicious activity relating to a
2-18 retailer's participation in the food stamp program, including:
2-19 (1) a noticeable absence of staple food products;
2-20 (2) a low supply of staple food products in relation
2-21 to other items in the retailer's inventory; or
2-22 (3) improper food stamp redemption.
2-23 (b) The department shall compare a retailer's food stamp
2-24 sales volume with the retailer's total food sales to determine
2-25 whether the retailer is eligible to receive free point-of-sale
2-26 terminals.
2-27 (c) At least once each fiscal quarter, the department shall
3-1 provide any information reported under Subsection (a) to the Public
3-2 Assistance Fraud Oversight Task Force.
3-3 (d) In this section, "retailer" means a business approved
3-4 for participation in the food stamp program.
3-5 Sec. 33.0023. FOOD STAMP INFORMATION MATCHING SYSTEM. (a)
3-6 To detect and prevent fraud in the food stamp program, the
3-7 department, through the use of a computerized matching system,
3-8 shall compare at least semiannually department information relating
3-9 to food stamp transactions and redemptions by recipients of food
3-10 stamps and retailers with information obtained from the comptroller
3-11 and other appropriate state agencies relating to those recipients
3-12 and retailers.
3-13 (b) The department, the comptroller, and the appropriate
3-14 agencies shall take all necessary measures to protect the
3-15 confidentiality of information provided under this section, in
3-16 compliance with all existing state and federal privacy guidelines.
3-17 (c) In this section, "retailer" means a business approved
3-18 for participation in the food stamp program.
3-19 SECTION 4. Subchapter B, Chapter 31, Human Resources Code,
3-20 is amended by adding Section 31.043 to read as follows:
3-21 Sec. 31.043. INACTIVE ELECTRONIC BENEFITS TRANSFER ACCOUNTS.
3-22 (a) This section applies only to an account to which financial
3-23 assistance provided under this chapter has been transferred under
3-24 the electronic benefits transfer system for access and use by a
3-25 recipient of that assistance.
3-26 (b) The department shall close an account that has not been
3-27 used by the account holder during the preceding 12 months.
4-1 (c) The comptroller shall withdraw any unused benefits
4-2 remaining in the account and disburse the benefits as authorized by
4-3 federal and state law.
4-4 SECTION 5. The importance of this legislation and the
4-5 crowded condition of the calendars in both houses create an
4-6 emergency and an imperative public necessity that the
4-7 constitutional rule requiring bills to be read on three several
4-8 days in each house be suspended, and this rule is hereby suspended,
4-9 and that this Act take effect and be in force from and after its
4-10 passage, and it is so enacted.