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By: Delisi H.B. No. 3204
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of an electronic benefits transfer
system under the medical assistance program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 301.002(2), Finance Code, is amended to
read as follows:
(2) "Credit card transaction" means a transaction for
personal, family, or household use in which a credit card,
electronic benefits transfer card, plate, coupon book, or credit
card cash advance check may be used or is used to debit an open-end
account in connection with:
(A) a purchase or lease of goods or services; or
(B) a loan of money.
SECTION 2. Chapter 32, Human Resources Code, is amended by
adding Section 32.070 to read as follows:
Sec. 32.070. DEFINITIONS. In this section:
(1) "Electronic benefits transfer card" means a card
provided by the department to recipients of medical assistance for
the purpose of directly paying for services obtained under the
medical assistance program;
(2) "Biometric identification" means fingerprints,
hand geometry, retina scan, voice verification, and signature
verification;
(3) "Card" means electronic benefits transfer card;
(4) "point-of-sale terminal" means a device placed in
a merchant location and connected to a bank. It is designed to
authorize, record, and forward electronically the payment for each
sale as it occurs; and
(5) "System" means the electronic benefits transfer
card system established under this chapter.
Sec. 32.071. ELECTRONIC BENEFITS TRANSFER SYSTEM. (a) The
department shall, without cost to the applicant, issue an
identification card to every person who is a recipient of medical
assistance under this chapter.
(b) The department shall provide providers participating in
the medical assistance program with the appropriate equipment,
including point-of-sale equipment, to facilitate payment for
medical assistance with an electronic benefits transfer card.
(c) The card shall bear the title of "Texas Medical Welfare
Card", the social security number, full name, date of birth,
residence address and a brief description of the holder, any case
number issued by the department to such recipient and either a
facsimile of the signature of the holder or a space on which he
shall write his usual signature with pen and ink. Every such card
shall contain the photograph of the holder. Such photograph shall
be processed in color.
(d) The card shall contain, in a digital format, encrypted,
and in a manner compliant with the Health Insurance Portability
Act, the fingerprint image of the recipient of medical assistance.
(e) The card shall contain any other information the
department considers necessary for the implementation of the
system.
(f) The department shall implement the system in the service
delivery area containing Harris County, and the service delivery
area containing Dallas County by January 1, 2004.
(g) The department shall make necessary changes to the
system based upon outcomes in the service delivery areas containing
Dallas and Harris counties, and implement the revised system in the
remainder of the state no later than January 1, 2005.
(h) The department may contract with public and private
entities to carry out implementation and operation of the system.
(i) The department shall consider the results of electronic
benefits transfer programs at the federal level, in other states,
and in counties and cities in other states in developing rules to
implement and operate the system.
(j) The department may enact rules necessary to implement
and operate the system authorized under this chapter.
(k) The department shall seek enhanced federal matching
funds, to the extent they are available, to implement the system.
The department may adjust the system through rule, if necessary,
for the state to become eligible for such funds.
Sec. 32.072. INACTIVE ELECTRONIC BENEFITS TRANSFER
ACCOUNT. (a) This section applies only to an account to which
medical assistance provided under this chapter has been transferred
under the electronic benefits transfer system for access and use by
a recipient of that assistance.
(b) The department shall close an account that has not been
used be the account holder during the preceding 6 months.
(c) The comptroller shall withdraw any unused benefits
remaining in the account and disburse the benefits as authorized by
federal and state law.
(d) The identification card shall be returned to the
department when the person to whom it is issued is no longer a
recipient of medical assistance from the department.
Sec. 32.073. ELECTRONIC BENEFITS TRANSFER: MONITORING. (a)
A private electronic benefits transfer operator with which the
department contracts to administer the system, shall establish
procedures to maintain records that monitor all debit transactions
relating to system client accounts under this section. The system
operator shall deliver copies of the records to the department and
the comptroller not later than the first day of each month. The
department shall immediately review the records and assess the
propriety of the debit transactions.
(b) After reviewing the records under Subsection (a), the
department shall take necessary or advisable action to ensure
compliance with system rules by the system operator, retailers, and
clients.
(c) No later than the first day of each month, the
department shall send the comptroller a report listing the accounts
on which enforcement actions or other steps were taken by the
department in response to the records received from the system
operator under this section, and the action taken by the
department. The comptroller shall promptly review the report and,
as appropriate, may solicit the advice of the Medicaid and Public
Assistance Fraud Oversight Task Force, the Office of Investigations
and Enforcement, and the appropriate entities in the Office of the
Attorney General regarding the results of the department's
enforcement actions.
(d) The department shall coordinate the system with data
matching efforts undertaken under Chapter 22, Human Resources Code.
(e) A local law enforcement agency that seizes an electronic
benefits transfer card issued by the department to a recipient of an
entitlement program administered by the department shall
immediately notify the department of the seizure and return the
card to the department. The department shall send letters to local
law enforcement agencies or post materials in the buildings in
which those agencies are located to ensure that local law
enforcement officials are aware of this requirement.
SECTION 2. WAIVER. If before implementing this Act, the
Health and Human Services Commission determines that a waiver or
authorization from a federal agency is necessary for
implementation, the commission shall request the waiver or
authorization and may delay implementing this Act until the waiver
or authorization is granted.
SECTION 3. REPORTING. The Health and Human Services
Commission shall prepare biannual reports for delivery to the
governor, lieutenant governor, speaker of the house of
representatives and committees of the senate and house of
representatives with jurisdiction over issues relating to state
health care expenditures.
SECTION 4. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2003.