BILL ANALYSIS C.S.S.B. 169 By: Moncrief (Naishtat) 05-09-95 Committee Report (Substituted) BACKGROUND Children who are adopted do not always stay in the state in which they are adopted and some parents adopt children from another state. When the adoptive parents move, responsibility for provision of medical services may be complicated and unclear. PURPOSE As proposed, C.S.S.B. 169 amends the procedure for interstate placement of and reimbursement of medical assistance for children, creates offenses and provides penalties for abuse of programs. 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 the heading of Chapter 162B, Family Code, as follows: SUBCHAPTER B. INTERSTATE COMPACT ON THE PLACEMENT OF CHILDREN SECTION 2. Amends Section 162.101, Family Code, to define "appropriate public authorities," "appropriate authority in the receiving state," "compact," and "executive head." Makes conforming changes. SECTION 3. Redesignates Family Code Section 162.108 as Section 162.102 which provides for the adoption of the compact in the form substantially as provide by this subchapter. Sets out the articles of the compact without changes. SECTION 4. Redesignates and amends Family Code Section 162.109 as Section 162.103 to read as follows: Sec. 162.103. FINANCIAL RESPONSIBILITY FOR CHILD. Provides that the executive director is authorized to bring suit under Section 154, Family Code, and may file a complaint claiming a violation of Section 25.05, Penal Code. Authorizes, rather than requires, the executive director to return the child to the sending agency after default. SECTION 5. Redesignates Family Code Section 162.110 as Section 162.104, APPROVAL OF PLACEMENT. Deletes the provision that prohibits the executive director from approving the discharge of a child placed in a public institution without the concurrence of the head of the institution. SECTION 6. Redesignates Family Code Section 162.111 as Section 162.105. SECTION 7. Redesignates Family Code Section 162.112. COMPACT ADMINISTRATOR as Section 162.106 and creates new title: COMPACT AUTHORITY. Clarifies that the governor shall appoint the executive director of the Department of Protective and Regulatory Services as compact administrator and requires the executive director to designate a deputy compact administrator and staff. SECTION 8. Redesignates Family Code Section 162.113 as Section 162.107 and amends as follows: Sec. 162.107. OFFENSES; PENALTIES. (a) Provides that an individual, agency, corporation, or child-care facility that violates any provision of the compact commits a Class B misdemeanor. (b) Provides that an individual, agency, corporation, or child-care facility violates Article IV commits a Class B misdemeanor. Requires the court to revoke any license to operate as a child-care facility or child-care institution issued to the facility by the department and revoke any license or certification of such individual, agency, or corporation necessary to practice in the state, on conviction. Deletes existing language on application of the sunset act. SECTION 9. Amends Chapter 162, Family Code by adding Subchapter C as follows: SUBCHAPTER C. INTERSTATE COMPACT ON ADOPTION AND MEDICAL ASSISTANCE Sec. 162.201. ADOPTION OF COMPACT; TEXT. Provides that the Interstate Compact on Adoption and Medical Assistance (compact) is adopted by this state and entered into with all other jurisdictions joining therein in form substantially as provided under this subchapter. INTERSTATE COMPACT ON ADOPTION AND MEDICAL ASSISTANCE ARTICLE I. FINDINGS Sets forth the legislature's findings regarding adoptive families and the provision of medical and other necessary services for children. ARTICLE II. PURPOSES Sets forth the purpose of the compact. ARTICLE III. DEFINITIONS Defines "adoption assistance state," "residence state," and "state." ARTICLE IV. COMPACTS AUTHORIZED Authorizes the Department of Protective and Regulatory Services (department) to develop, participate in the development of, negotiate, and enter into one or more interstate compacts on behalf of the state with other states to implement one or more of the purposes set forth in this compact. Requires the compact to have the force of law for as long as the compact is in force. ARTICLE V. CONTENTS OF COMPACTS Sets forth the required contents of the compact. ARTICLE VI. OPTIONAL CONTENTS OF COMPACTS Sets forth additional authorized contents of a compact. ARTICLE VII. MEDICAL ASSISTANCE (a) Requires a child with special needs resident in a state who is the subject of an adoption assistance agreement to be entitled to receive a medical assistance identification from this state upon filing in the state medical assistance agency (agency) of the adoption assistance agreement obtained from the adoption assistance state. Requires the adoptive parents to show proof of a current agreement at least annually. (b) Requires the agency to process and make payment on claims on account of the holder of a medical assistance identification in the same manner and pursuant to the same conditions and procedures as other recipients of medical assistance. (c) Requires the agency to provide coverage and benefits not provided by the resident state, to a child in another state who is covered by an adoption assistance agreement made by the department. Authorizes the adoptive parents to submit evidence of payment for services or benefit amounts not payable in the residence state and requires the parents to be reimbursed unless the benefits or services are covered under insurance or third-party medical contract. Requires the agency to make regulations implementing this subsection. Sets forth the procedure and guidelines for additional coverage and benefits. (d) Requires a person who submits a false claim for payment or reimbursement to be punished for perjury and a fine not to exceed $10,000, or imprisonment for not more than two years. (e) Provides that the provisions of this article apply only to medical assistance for adopted children who reside in a state in which a different state provides medical assistance and are covered in a compact. Provides that other children who are covered in adoption assistance agreements with this state and are entitled to medical assistance are eligible to receive assistance in accordance with the laws and procedures applicable thereto. ARTICLE VIII. FEDERAL PARTICIPATION Requires the department and the Health and Human Services Commission (commission) to include the provision of adoption and medical assistance for which the federal government pays some or all of the cost in any state plan, and apply for and administer all relevant federal aid in accordance with law. Sec. 162.202. AUTHORITY OF THE DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES. Authorizes the department, with the concurrence of the commission, to develop, participate in the development of, negotiate, and enter into one or more interstate compacts on behalf of the state with other states to implement one or more of the purposes set forth in this compact. Requires the compact to have the force of law for as long as the compact is in force. Sec. 162.203. COMPACT ADMINISTRATION. Requires the executive director of the department to serve as the compact administrator (administrator). Requires the administrator to cooperate with agencies and officers of the government of this state in facilitating the proper administration of a compact of any supplemental agreements. Requires the executive director and the Commissioner of Human Services (commissioner) to designate deputy compact administrators. Sec. 162.204. SUPPLEMENTARY AGREEMENTS. Authorizes the administrator to enter into supplementary agreements with other state officials pursuant to a compact. Provides that an agreement with another state that affects another department has force or effect only if approved by the head of the department which is affected. Sec. 162.205. PAYMENTS BY STATE. Authorizes the administrator to make or arrange for any payments necessary to discharge any financial obligations imposed upon by the compact in approved by the chief state fiscal officer. Sec. 162.206. PENALTIES. Provides that a person who knowingly obtains, attempts to obtain, or aids and abets a person to obtain any assistance on behalf of a child who is not entitled or assistance in an amount greater than the person or child is entitled to commits a Class B misdemeanor. SECTION 10. Repeals Sections 162.102 - 162.107 and 162.114, Family Code. SECTION 11. Emergency clause. Effective date: Upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 169 reflects the recodification of Title 2 of the Family Code as enacted by H.B. 655, Acts of the 74th Legislature, Regular Session, 1995. SUMMARY OF COMMITTEE ACTION S.B. 169 was considered in a public hearing on April 19, 1995. The following person testified neutrally on the bill: Howard Baldwin, Department of Protective and Regulatory Services. The bill was left pending in committee. In a formal meeting on April 25, 1995, the committee considered a complete substitute to the bill which was adopted without objection. S.B. 169 was reported favorably as substituted with the recommendation that it do pass and be printed by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.