Enrolled Bill Summary

House Bill 2641 continues the Health and Human Services Commission until September 1, 2007. The act requires the commissioner of health and human services to manage and direct the operations of each health and human services agency and supervise and direct the activities of each agency director. It also provides that the directors of the following agencies are to be employed by the commissioner, subject to certain restrictions: Texas Department of Health, Texas Department of Human Services, Department of Protective and Regulatory Services, Interagency Council on Early Childhood Intervention, Texas Commission for the Deaf and Hard of Hearing, Texas Commission for the Blind, Texas Department on Aging, Texas Rehabilitation Commission, Texas Juvenile Probation Commission, Texas Commission on Alcohol and Drug Abuse, and Texas Department of Mental Health and Mental Retardation.

House Bill 2641 requires the commission to manage the Medicaid program and supervise information systems planning and management in each health and human services agency. The act authorizes the commission to take certain measures to improve the regional management of human services agencies, consolidate agency support services, and implement an annual business services plan for each region. The act authorizes the commission to transfer funds among human services agency budgets to maximize federal funds. The act further requires the commission to monitor and ensure the effective use of federal funds received by human services agencies and implement Texas Integrated Enrollment Services. The act also makes the commission responsible for strategic planning and management of information resources at each health and human services agency.

House Bill 2641 requires the commission to develop a statewide procedure to reduce fraud and waste in human services agency contracts. It further requires the commission to establish consistent contracting policies and practices among agencies and to compile a contract management database in cooperation with the comptroller. The act authorizes the commission to approve procurement and rate-setting procedures used by human services agencies, and it prohibits an agency from using a disapproved procedure. The act also requires the commission to report annually to the governor and presiding officers of the legislature regarding each agency's compliance with contracting standards.

The act requires the commission and human services agencies to assist local communities in developing comprehensive support systems for health and human services. It also requires the commission to appoint advisory committees for local governmental entities that deliver health and human services, and the commission must ensure that local entities get information about sources of federal money. The act directs the commission, the Texas Information and Referral Network, and the Records Management Interagency Coordinating Council to improve public access to health and human services information. The act also requires the commission to convene a working group, made up of affected agencies and client advocates, on abuse, neglect, and exploitation.

House Bill 2641 requires the Guardianship Advisory Board to propose a statewide guardianship program. The act also expands the duties of the Health Care Information Council to include gathering data from Medicaid managed care organizations and evaluating the effectiveness of the Medicaid managed care system. It requires the Texas Department of Health to contract with an independent auditor to perform annual external audits of any Medicaid contractor and adds requirements relating to managed care organization contracts. The act creates a moratorium on certain Medicaid pilot programs and creates a Medicaid managed care advisory committee. The act changes the name of the Health and Human Services Transportation and Planning Office and directs the office to create a statewide plan to coordinate transportation services. House Bill 2641 transfers the administration of the Empowerment Zone and Enterprise Communities Program to the Department of Economic Development. The act creates the Health and Human Services Legislative Oversight Committee to monitor the commission's implementation of the act, to recommend adjustments to the implementation of certain provisions, and to report on the statewide health and human services system. In addition, the act requires the commission to study the feasibility of a subacute care pilot project.