BILL ANALYSIS C.S.H.B. 1649 By: Raymond 05-01-95 Committee Report (Substituted) BACKGROUND The impact of child care on women's employment has been subjected to much research, and day-care costs have been singled out as the major impediment for mothers when deciding to work. Texas and other states subsidize child care for low-income families with a combination of federal, state, local and private funds. The Texas Department of Human Services (DHS) developed an innovative system of child-care delivery which offers benefits to AFDC recipients participating in job training or education programs as well as child-care providers. The Child Care Management System (CCMS), implemented in 1991, fully coordinates all child-care funds administered by DHS. Families may access all funding streams through one application procedure and all participating child care providers are eligible to receive all sources of funds. CCMS operates statewide through contracts with 27 child-care brokers who handle many of the administrative burdens of the program for the agency, including determination and verification of client eligibility, billing and payment services, as well as training and assistance to caregivers. More than 3,700 licensed child-care centers have contracted with the CCMS broker in their area, allowing parents to choose from among several providers for child care. Child-care providers receive payment for services based on attendance data supplied to the CCMS contractors. At present, the payment process is burdensome and inefficient. Providers maintain paper attendance logs each day as proof that eligible children received care; attendance logs are then turned over to area CCMS contractors, who enter the data into a computer linked directly with DHS. DHS transmits payment information to the State Comptroller, who makes payments to the CCMS contractors, who subsequently pay child-care providers. PURPOSE H.B. 1649 seeks to expedite payments to child-care providers participating in the CCMS system through the use of electronic scanners to process attendance logs and other necessary data. RULEMAKING AUTHORITY It is the committee's opinion that H.B. 1649 does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 22, Human Resources Code, by adding new Section 22.026, as follows: Sec. 22.026. ELECTRONIC CHILD-CARE DATA PROCESSING SYSTEM. (a) Requires DHS to develop and implement an electronic data processing system to expedite payments to child-care providers participating in the agency's Child Care Management System. (b) Establishes criteria DHS must use to develop and implement the electronic data system, including: (1) choosing the most cost-effective method; and (2) monitoring data accuracy, in conjunction with regional contractors. (c) Permits DHS to contract with state agencies, public or private entities to implement the new system. SECTION 2. (a) Creates Work Group on Child-Care Electronic Data Processing to advise and assist DHS in developing the electronic data processing system. (b) Provides for a work group consisting of representatives of the Health and Human Services Commission (HHSC), DHS, the State Comptroller (each appointed by the agency heads), a Child Care Management System contractor, and technical experts with knowledge of electronic data processing (each appointed by the head of HHSC). (c) Designates the HHSC representative as the presiding officer. (d) Requires the work group to meet at least monthly at the call of the presiding officer. (e) Requires appointing agencies to provide for member's expenses; members receive no other compensation for their services. (f) Requires the work group to assist DHS in developing a method to monitor the accuracy of the data processed through this system. (g) Expiration date for work group: September 1, 1996. SECTION 3. Requires DHS to develop the electronic data processing system by March 1, 1996. SECTION 4. Requires appointing officials to designate representatives to the work group by September 1, 1995. SECTION 5. Emergency clause, effective in 90 days. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute to H.B. 1649 clarified that the new electronic scanning system would not be required to process data centrally, thus eliminating the fiscal implications. Also, a drafting error was corrected. SUMMARY OF COMMITTEE ACTION In a public hearing on April 24, 1995, the Human Services Committee took up H.B. 1649 by Rep. Raymond which had been posted originally for April 3. The Chairman recognized Rep. Maxey to explain the bill. No one testified for, against or neutral on H.B. 1649 and the bill was left pending. On May 1, while the committee was convened in a formal meeting the Chairman laid out H.B. 1649 by Rep. Raymond which had been pending. The Chairman recognized Rep. Maxey to offer a committee substitute and explain the differences. Rep. Maxey moved adoption and hearing no objection, the substitute for H.B. 1649 was adopted. The Chairman recognized Rep. Maxey who moved that the committee report H.B. 1649 favorably as substituted and send the bill to the Committee on the Local and Consent Calendars. Rep. Naishtat seconded the motion. The motion prevailed by a record vote of 8 Ayes, 0 Nays, 0 PNV, and 1 Absent.