BILL ANALYSIS


                                                        H.B. 1649
                                          By: Raymond (Zaffirini)
                                        Health and Human Services
                                                         05-22-95
                              Senate Committee Report (Unamended)
BACKGROUND

The child care management system, implemented in 1991, fully
coordinates all child-care funds administered by the Department of
Human Services.  Currently, child-care providers receive payment
for services based on attendance data supplied to child care
management system contractors.  This payment process is burdensome
and inefficient.

PURPOSE

As proposed, H.B. 1649 requires the Department of Human Services to
develop and implement an electronic data processing system to
expedite payments to certain child-care providers.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 22, Human Resources Code, by adding
Section 22.026, as follows:

     Sec. 22.026.  ELECTRONIC CHILD-CARE DATA PROCESSING SYSTEM. 
     (a) Requires the Department of Human Services (department), in
     order to expedite payments to child-care providers who
     participate in the child-care management system, to develop
     and implement a system that uses an electronic scanner or
     other form of electronic technology to process data that is
     necessary for the department to administer child-care programs
     provided by or on behalf of the department through the child-care management system.
     
     (b) Requires the department, in developing and implementing
       a system under this section, to choose the most cost-effective method for processing the data, and monitor the
       accuracy of the data using the method developed by the
       department with the assistance of any applicable work group.
       
       (c) Authorizes the department to contract with a state
       agency, public entity, or private person or entity to
       implement the system under this section.
       
       SECTION 2.   (a) Creates the Work Group on Child-Care Electronic Data
Processing to advise and assist the department in developing the
system required by section 22.026, Human Resources Code.

     (b) Sets forth the composition of the work group.
     
     (c) Requires the representative of the Health and Human
     Services Commission to serve as the presiding officer.
     
     (d) Requires the work group to meet at least once each month
     at the call of the presiding officer.
     
     (e) Makes the appointing agency or office responsible for the
     expenses of a member's service on the work group.  Provides
     that members of the work group receive no additional
     compensation for serving on the work group.
     
     (f) Requires the work group to assist the department in
     developing a method to monitor the accuracy of data processed
     by the department through the system developed by the
     department under Section 22.206, Human Resources Code.
     
     (g) Provides that this section expires September 1, 1996.
     
     SECTION 3.     Requires the department, not later than March 1, 1996,
to develop the system required by Section 22.206, Human Resources
Code.

SECTION 4. Requires the commissioner of health and human services,
the commissioner of human services, and the comptroller to
designate their representatives to the work group not later than
September 1, 1995.

SECTION 5. Emergency clause.
           Effective date: upon passage.