TITLE social-services-and-assistance

Part I. Texas Department of Human Services

Chapter 3. Income Assistance Services

Subchapter NN. Electronic Benefit Transfer

40 TAC §3.4007

The Texas Department of Human Services (DHS) proposes to amend §3.4007, concerning benefit conversion, in its Income Assistance Services chapter. The purpose of the amendment is to allow benefits to be issued in various ways in the event the Electronic Benefit Transfer (EBT) System is unavailable for more than three days due to a natural disaster, emergency, or major crisis of the EBT System.

Eric M. Bost, commissioner, has determined that for the first five- year period the proposed section will be in effect, the exact fiscal impact cannot be determined because of the nature of natural disasters. It is impossible to predict the location or the extent of the natural disaster's impact on EBT operations. The cost to state or local governments as a result of enforcing or administering the section is directly related to these factors.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section is that benefits can still be used in retail stores even if the EBT System is unavailable. It is not anticipated that this change will affect small businesses because clients will receive the same amount of benefits during a disaster as they normally would receive and have available to spend. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Mary Haifley at (512) 438-2599 in DHS's Client Self-Support Services Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-073, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 31, which provides the department with the authority to administer public and financial assistance programs.

The amendments implement the Human Resources Code, §§22.001- 22.030 and §§31.001-31.0325.

§3.4007.Benefit Conversion.

(a)

(No change.)

(b)

When a Temporary Assistance for Needy Families (TANF) [ an Aid to Families with Dependent Children (AFDC) ] recipient moves out of the EBT area(s), he may use the EBT card to remove cash from the cash account anytime after a month's benefit becomes available. The TANF [ AFDC ] recipient is responsible for taking this action when leaving the EBT area.

(c)

DHS does not convert available TANF [ AFDC ] benefits in an EBT account to a warrant if the recipient leaves the EBT area without using all the TANF [ AFDC ] benefits in the EBT account which are available when the recipient leaves. If an eligible recipient moves out of the EBT area before a particular month's TANF [ AFDC ] benefit is available, upon the recipient's request DHS converts that benefit to a warrant.

(d)

If EBT benefits become unavailable for more than three days due to a natural disaster or other major emergency or crisis, DHS may offer cardholders an alternative method of issuance of benefits determined feasible and cost effective. Such methods may include, but not be limited to, cashing out EBT benefits via money orders obtained at DHS-specified locations; state warrants either mailed or obtained at DHS-specified locations; direct mail issuance of food coupons to recipients; over-the-counter food stamp issuance in specified counties/locations; or some other method not yet available or feasible.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 17,1998.

TRD-9818419

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: January 31, 1999

For further information, please call: (512) 438-3765