BILL ANALYSIS


                                                         S.B. 509
                                                    By: Zaffirini
                                        Health and Human Services
                                                          2-16-95
                                     Committee Report (Unamended)
BACKGROUND

The 72nd Legislature designated the Health and Human Services
Commission as the single state agency to administer medical
assistance (Medicaid) funds, review programs, and implement the
transfer of health and human services functions, programs, and
activities among the state's health and human service agencies. 
Pursuant to this authority, the commission transferred all powers
and duties relating to the intermediate care facilities for persons
with mental retardation program (ICF-MR) to the Texas Department of
Mental Health and Mental Retardation (department).  On January 17,
1995, a Travis County District Court ruled that the commission has
no authority to transfer the ICF-MR program, as a state Medicaid
program, to the department and that the department has no authority
to adopt ICF-MR rates.

PURPOSE

As proposed, S.B. 509 clarifies the authority of the Health and
Human Services Commission to delegate to a health and human
services agency the authority to operate all or part of the
Medicaid program and to the commission's powers to transfer various
powers and duties.

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. CLARIFICATION OF EFFECT OF LEGISLATION.  (a) Provides
that H.B. 7, Acts of the 72nd Legislature, 1st Called Session,
1991, and subsequent amendments, designated the Health and Human
Services Commission (commission) as the single state agency to
administer medical assistance funds (Medicaid) and authorized the
commission to review programs and to implement the transfer of
health and human services functions and activities among the
state's health and human services agencies (agencies).  Provides
that the legislature gave the commission the authority to delegate
to any agency the authority to operate or assist in the operation
of any Medicaid program.

     (b) Provides that subject to the administrative authority of
     the commission as it relates to the Texas Department of Mental
     Health and Mental Retardation, the commission implemented the
     transfer to various health and human services agencies of the
     functions, powers, duties, funds, and obligations related to
     the operation of various Medicaid programs (transfer).  Sets
     forth the specific Medicaid mental health and mental
     retardation programs for which the commission implemented the
     transfer.
     
     (c) Provides that the legislature declares these transfers,
     and all actions taken in reliance on those transfers are
     valid.  Provides that the legislature declares that the
     transfer of all applicable powers and duties provided by
     Chapters 21, 22, and 32, Human Resources Code, that relate to
     the operation of the Medicaid program, including the duty and
     power to set rates.
SECTION 2. CLARIFYING AMENDMENT.  Amends Section 32.003, Human
Resources Code, as follows:

     Sec. 32.003.  New title:  DEFINITIONS.  Defines "board,"
     "commissioner," "department," and "medical assistance."
SECTION 3. CLARIFYING AMENDMENT.  Amends Section 32.024(o), Human
Resources Code, as follows:

     (o) Requires the hospital to comply with the Minimum Licensing
     Standards as mandated by Chapter 242, Health and Safety Code,
     and the Medicaid standards for nursing home certification, as
     promulgated by the department, rather than the Texas
     Department of Human Services.
SECTION 4. CLARIFYING AMENDMENT.  Amends Section 32.029(c), Human
Resources Code, to make conforming changes.

SECTION 5. CLARIFYING AMENDMENT.  Amends Sections 32.030(a) and
(c), Human Resources Code, to make conforming changes.

SECTION 6. CLARIFYING AMENDMENT.  Amends Section 32.031(e), Human
Resources Code, to make conforming changes.

SECTION 7. CLARIFYING AMENDMENT.  Amends Section 32.041(a), Human
Resources Code, to make conforming changes.

SECTION 8. APPLICATION TO FUND OR ACCOUNT.  (a) Provides that a
fund or account, the existence of which is derived from a statute
amended by this Act and which is abolished before the effective
date of this Act, is not revived or reenacted by this Act.

     (b) Provides that the application of Sections 403.094 and
     403.095, Government Code, to a fund or account to the
     permissible uses of revenue of fund balances is not affected
     by this Act.
SECTION 9. Emergency clause.
           Effective date: upon passage.
     
Note:  Reference to `department' and `commission' both mean the
Health and Human Services Commission.