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.