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Amend SB 1862 by adding the following new SECTIONS, 
appropriately numbered, and renumber subsequent SECTIONS 
appropriately:
	SECTION _____.  Section 10(c), Chapter 584, Acts of the 77th 
Legislature, Regular Session, 2001, is amended to read as follows:
	(c)  The Health and Human Services Commission or the 
appropriate state agency operating part of the medical assistance 
program under Chapter 32, Human Resources Code, shall adopt rules 
required by Section 32.0261, Human Resources Code, as added by this 
Act, so that the rules take effect in accordance with that section 
not earlier than September 1, 2002, or later than June 1, 2005 
[2003].  The rules must provide for a 12-month period of continuous 
eligibility in accordance with that section for a child whose 
initial or continued eligibility is determined on or after the 
effective date of the rules.
	SECTION _____.  Section 32.025(e), Human Resources Code, is 
amended to read as follows:
	(e)  The department shall permit an application requesting 
medical assistance for a child under 19 years of age to be conducted 
by mail instead of through a personal appearance at a department 
office, unless the department determines that the information 
needed to verify eligibility cannot be obtained in that manner.  The 
department by rule may develop procedures requiring an application 
for a child described by this subsection to be conducted through a 
personal interview with a department representative only if the 
department determines that information needed to verify 
eligibility cannot be obtained in any other manner.
	SECTION _____.  Section 32.026, Human Resources Code, is 
amended by amending Subsection (e) and adding Subsection (g) to 
read as follows:
	(e)  The department shall permit a recertification review of 
the eligibility and need for medical assistance of a child under 19 
years of age to be conducted by telephone or mail instead of through 
a personal appearance at a department office, unless the department 
determines that the information needed to verify eligibility cannot 
be obtained in that manner.  The department by rule may develop 
procedures to determine whether there is a need for a 
recertification review of a child described by this subsection to 
be conducted through a personal interview with a department 
representative.  Procedures developed under this subsection shall 
be based on objective, risk-based factors and conditions and shall 
focus on a targeted group of recertification reviews for which 
there is a high probability that eligibility will not be 
recertified.
	(g)  Notwithstanding any other provision of this code, the 
department may use information obtained from a third party to 
verify the assets and resources of a person for purposes of 
determining the person's eligibility and need for medical 
assistance.  Third-party information includes information obtained 
from:
		(1)  a consumer reporting agency, as defined by Section 
20.01, Business & Commerce Code;
		(2)  an appraisal district; or                                         
		(3)  the Texas Department of Transportation's vehicle 
registration record database.
	SECTION _____.  In the event of a conflict between a provision 
of this Act and another Act passed by the 78th Legislature, Regular 
Session, 2003, that becomes law, this Act prevails and controls 
regardless of the relative dates of enactment.
	SECTION _____.  If before implementing any provision of this 
Act a state agency determines that a waiver or authorization from a 
federal agency is necessary for implementation of that provision, 
the agency affected by the provision shall request the waiver or 
authorization and may delay implementing that provision until the 
waiver or authorization is granted.