H.B. 712 78(R)    BILL ANALYSIS


H.B. 712
By: Rodriguez
Human Services
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Current law allows for the use of an electronic fingerprint-imaging or
photo-imaging program of adult and teen parent applicants for and
recipients of financial assistance and services from the Texas Department
of Human Services (DHS).  In 1996, DHS piloted a finger-imaging system
called the Lone Star Image System (LSIS).  It reached statewide
implementation in 1999.  According to  DHS, the current contract costs for
the LSIS is $5 million for FY 2003-2004, with approximately 47%, or
$2,350,000 coming from state general revenue.  Since it's inception in
1996, $24,542,421 has been expended on the Lone Star Image program,
$11,358,153 in state general revenue, with only $59,642 in confirmed fraud
detected as a result of LSIS direct matches. Finger imaging is only
capable of detecting and preventing the duplicate receipt of benefits, a
type of fraud that historically has amounted to less than 1% of total
dollar fraud in the food stamp and Temporary Assistance to Needy Families
programs.  The Department of Human Services currently utilizes seven other
fraud prevention activities.  House Bill 712 repeals the Electronic
Imaging Program.  

RULEMAKING AUTHORITY

It is the opinion of the author that the bill does not expressly delegate
any additional rulemaking authority to a state officer, department,
agency, or institution.  

ANALYSIS

House Bill 712 amends the Human Resources Code by abolishing the
electronic imaging program of the Texas Department of Human Services. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.