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.