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.