84R4847 KFF-D

By: Klick H.B. No. 2954

A BILL TO BE ENTITLED

AN ACT

relating to an electronic financial record matching program to verify the assets of certain applicants and recipients under the medical assistance program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.02612 to read as follows:

Sec. 32.02612. ASSET VERIFICATION PROGRAM: ELECTRONIC FINANCIAL RECORD MATCHING PROGRAM. (a) In this section:

(1) "Electronic financial record matching program" means the electronic financial record matching program established under this section.

(2) "Financial institution" means:

(A) a depository institution, as defined by Section 3(c), Federal Deposit Insurance Act (12 U.S.C. Section 1813(c));

(B) an institution-affiliated party, as defined by Section 3(u), Federal Deposit Insurance Act (12 U.S.C. Section 1813(u));

(C) a federal credit union or a state credit union, as defined by Section 101, Federal Credit Union Act (12 U.S.C. Section 1752), including an institution-affiliated party of a credit union, as defined by Section 206(r), Federal Credit Union Act (12 U.S.C. Section 1786(r)); or

(D) any benefit association, insurance company, safe deposit company, money-market mutual fund, or similar entity authorized to do business in the state.

(3) "Other individual" means an individual whose resources are required by law to be disclosed to determine the eligibility of an applicant for or recipient of medical assistance benefits.

(b) In accordance with 42 U.S.C. Section 1396w and subject to the requirements of this section, the department, or an agent of the department, shall develop and operate an electronic financial record matching program for the purpose of verifying assets to determine or redetermine the eligibility of an applicant for or recipient of medical assistance benefits provided on the basis of the applicant or recipient, as applicable, being aged or blind or having a disability.

(c) A financial institution doing business in this state shall comply with any request for a financial record from the department under the electronic financial record matching program.

(d) In developing an electronic financial record matching program, the department shall enter into an agreement with appropriate financial institutions doing business in the state under which:

(1) the parties agree to use electronic data exchanges;

(2) the financial institutions, in a mutually agreed on process, are required to provide on at least a quarterly basis financial records necessary to verify the assets of an applicant for or recipient of medical assistance benefits, or other individual, including records that specify:

(A) the name or assumed names on file with respect to the applicant, recipient, or other individual;

(B) any address on file with respect to the applicant, recipient, or other individual;

(C) the social security number or other tax identification number on file for the applicant, recipient, or other individual; and

(D) any other identifying information requested by the department; and

(3) the financial institutions are required to respond to records requests not later than:

(A) 48 hours after a request for current financial information is received by the institutions; and

(B) 30 days after the date a request for historical financial information is received by the institutions.

(e) The department may receive historical financial information under the electronic financial record matching program for the 60-month period preceding the date of the authorization provided in accordance with Subsection (f).

(f) Notwithstanding any other law, an applicant for or recipient of medical assistance benefits or other individual shall, at the time of the initial application for medical assistance benefits or at the time of any redetermination for the continuation of medical assistance benefits, provide, directly or through a person acting on behalf of the applicant or recipient, authorization for the disclosure of financial records to the department by financial institutions under the electronic financial record matching program. The authorization must remain in effect as long as the recipient or, in the case of an other individual, the recipient on whose behalf the authorization is required by law to be provided, receives benefits under the medical assistance program.

(g) An authorization obtained by the department:

(1) in accordance with 42 U.S.C. Section 1396w(d)(1):

(A) is considered to meet the requirements of Section 1103(a), the Right to Financial Privacy Act of 1978 (12 U.S.C. Section 3403(a)); and

(B) does not need not be provided to the financial institution; and

(2) in accordance with 42 U.S.C. Section 1396w(c), remains effective until the earlier of the date of:

(A) the rendering of a final adverse decision on an applicant's eligibility decision;

(B) the termination of a recipient's eligibility for medical assistance benefits; or

(C) an express written revocation by the applicant, recipient, or other individual of the authorization provided to the department.

(h) If an applicant for or recipient of medical assistance benefits or other individual refuses to provide or revokes an authorization made by that person under the electronic financial record matching program, the department may, on that basis, determine that the applicant or recipient, as applicable, is ineligible for benefits under the medical assistance program.

(i) The department may use information provided by a financial institution under the electronic financial record matching program only for verifying assets for the purpose of determining eligibility or redetermining eligibility for medical assistance. The department may not use or disclose information received from a financial institution concerning account holders who are not applicants for or recipients of medical assistance benefits or other individuals.

(j) A financial institution, including the institution's agent, may not use or disclose information provided to the institution under the electronic financial record matching program except to the extent the use or disclosure is necessary to conduct data matches. A financial institution, including the institution's agent, shall return, erase, or destroy all information provided to the institution under the electronic financial record matching program after the institution conducts data matches required under the program.

(k) A financial institution is not liable to any person for:

(1) the disclosure of information to the department under this section; or

(2) any other action taken in good faith to comply with the requirements of this section.

SECTION 2. The Health and Human Services Commission shall establish the electronic financial record matching program in accordance with Section 32.02612, Human Resources Code, as added by this Act, not later than January 1, 2016.

SECTION 3. Section 32.02612, Human Resources Code, as added by this Act, applies to an initial determination or redetermination of eligibility of a person for medical assistance under Chapter 32, Human Resources Code, that is made on or after January 1, 2016.

SECTION 4. 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.

SECTION 5. 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, 2015.