BILL ANALYSIS


                                                         S.B. 169
                                                     By: Moncrief
                                                    Jurisprudence
                                                           3-7-95
                                     Committee Report (Unamended)
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, 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 rulemaking authority is granted
to the state medical assistance agency in SECTION 1 (Chapter 45,
Section 45.001, Article VII(c), Human Resources Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 45, Human Resources Code, as follows:

           CHAPTER 45. INTERSTATE PLACEMENT OF CHILDREN

     SUBCHAPTER A. New title: INTERSTATE COMPACT ON ADOPTION
                      AND MEDICAL ASSISTANCE

     Sec. 45.001.  New title: 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 "state," "adoption assistance state," and "residence state."
     
               ARTICLE IV. COMPACTS AUTHORIZED
     
     (a)  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. 45.002.  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. 45.003.  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. 45.004.  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. 45.005.  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. 45.006.  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.
     
     Deletes existing Sections 45.001-45.007.
     
     SUBCHAPTER B. INTERSTATE COMPACT ON THE PLACEMENT OF CHILDREN     
     Sec. 45.021.  ADOPTION OF COMPACT; TEXT.  Defines "compact."  Makes a
     conforming change.
     
       INTERSTATE COMPACT ON THE PLACEMENT OF CHILDREN
     
               ARTICLE I-ARTICLE X. No change
     
     Sec. 45.022.  New title: COMPACT AUTHORITY.  (a)  Defines "executive head."
     
     (b)  Requires the governor to appoint the compact administrator.
       
       (c)  Requires the administrator to designate a deputy compact administrator and staff
       necessary to execute the terms of the compact with the state.
       
       (d)  Defines "appropriate public authorities," and "appropriate authority in the receiving
       state."  Deletes existing Subdivisions (1)-(4).
       
     Sec. 45.023.  FINANCIAL RESPONSIBILITY FOR CHILD.  (a)  Provides that the
     executive director, rather than the commissioner, is authorized to bring suit under Section
     14.05, Family Code, and may file a complaint claiming a violation of Section 25.05, Penal
     Code.
     
     (b)  Make a conforming change.
       
     Sec. 45.024.  New title: APPROVAL OF PLACEMENT.  Makes a conforming change. 
     Deletes the provision that prohibits the commissioner from approving the discharge of a
     child placed in a public institution without the concurrence of the head of the institution.
     
     Sec. 45.025.  No change.
     
     Sec. 45.026.  New title: 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.  Makes a conforming change.  Deletes existing
       Section 45.028.
       
       SECTION 2.   Emergency clause.
           Effective date: upon passage.