By:  Zaffirini, Moncrief                              S.B. No. 1675
            Truan
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to powers and duties of the Health and Human Services
    1-2  Commission.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 10, Article 4413(502), Revised Statutes,
    1-5  is amended by amending Subsection (d) and by adding Subsection (e)
    1-6  to read as follows:
    1-7        (d)  All health and human services agencies shall submit
    1-8  strategic plans and biennial updates to the commission on a date to
    1-9  be determined by commission rule.  The strategic plans and biennial
   1-10  updates are subject to commission approval.
   1-11        (e)  Not later than January 1 of each even-numbered year, the
   1-12  commission shall begin formal discussions with each health and
   1-13  human services agency regarding that agency's strategic plan or
   1-14  biennial update.
   1-15        SECTION 2.  Section 12, Article 4413(502), Revised Statutes,
   1-16  is amended to read as follows:
   1-17        Sec. 12.  PUBLIC INPUT <INTEREST> INFORMATION AND COMPLAINTS.
   1-18  (a)  The commission shall develop and implement policies that
   1-19  provide the public with a reasonable opportunity to appear before
   1-20  the commission and to speak on any issue under the jurisdiction of
   1-21  the commission.
   1-22        (b)  The commission shall develop and implement routine and
   1-23  ongoing mechanisms, in accessible formats:
   1-24              (1)  to receive consumer input;
    2-1              (2)  to involve consumers in planning, delivery, and
    2-2  evaluation of programs and services under the jurisdiction of the
    2-3  commission; and
    2-4              (3)  to report to the public on the input received and
    2-5  actions taken in response.
    2-6        (c)  The commission shall prepare information of public
    2-7  interest describing the functions of the commission and the
    2-8  commission's procedures by which complaints are filed with and
    2-9  resolved by the commission.  The commission shall make the
   2-10  information available to the public and appropriate state agencies.
   2-11        (d) <(c)>  The commissioner by rule shall establish methods
   2-12  by which the public, consumers, and service recipients can be
   2-13  notified of the mailing addresses and telephone numbers of
   2-14  appropriate agency personnel for the purpose of directing
   2-15  complaints to the commission.  The commission may provide for that
   2-16  notification:
   2-17              (1)  on each registration form, application, or written
   2-18  contract for services of a person or entity regulated by the
   2-19  commission;
   2-20              (2)  on a sign prominently displayed in the place of
   2-21  business of each person or entity regulated by the commission; or
   2-22              (3)  in a bill for service provided by a person or
   2-23  entity regulated by the commission.
   2-24        (e) <(d)>  The commission shall keep an information file
   2-25  about each complaint filed with the commission relating to:
   2-26              (1)  a license holder or entity regulated by the
   2-27  commission; or
    3-1              (2)  a service delivered by the commission.
    3-2        (f) <(e)>  If a written complaint is filed with the
    3-3  commission relating to a license holder or entity regulated by the
    3-4  commission or a service delivered by the commission, the
    3-5  commission, at least quarterly and until final disposition of the
    3-6  complaint, shall notify the parties to the complaint of the status
    3-7  of the complaint unless notice would jeopardize an undercover
    3-8  investigation.
    3-9        SECTION 3.  Section 13, Article 4413(502), Revised Statutes,
   3-10  is amended to read as follows:
   3-11        Sec. 13.  Consolidated Health and Human Services Budget.
   3-12  (a)  The commission has comprehensive budget and planning authority
   3-13  for health and human services agencies in order to establish an
   3-14  integrated eligibility determination and service delivery system.
   3-15        (b)  The commission shall prepare and submit to the
   3-16  Legislative Budget Board and the governor by October 15 of
   3-17  even-numbered years a consolidated health and human services budget
   3-18  recommendation.
   3-19        (c) <(b)>  The commission shall base the consolidated budget
   3-20  recommendation prepared under this article on priorities set in the
   3-21  commission's coordinated strategic plan for health and human
   3-22  services.
   3-23        (d) <(c)>  All health and human services agencies shall
   3-24  submit to the commission a biennial agency legislative
   3-25  appropriations request on a date to be determined by commission
   3-26  rule.
   3-27        (e)  A health and human services agency may not submit to the
    4-1  legislature or the governor its legislative appropriations request
    4-2  until the legislative appropriations request is approved by the
    4-3  commission.
    4-4        SECTION 4.  Article 4413(502), Revised Statutes, is amended
    4-5  by adding Sections 13A, 13B, 13C, 13D, and 13E to read as follows:
    4-6        Sec. 13A.  HEALTH AND HUMAN SERVICES AGENCIES OPERATING
    4-7  BUDGETS.  (a)  In addition to the provisions of the General
    4-8  Appropriations Act, each agency subject to the provisions of this
    4-9  article shall:
   4-10              (1)  obtain commission approval of its annual operating
   4-11  budget prior to adoption of its annual operating budget;
   4-12              (2)  obtain commission approval of the transfer of
   4-13  funds between budget strategies prior to the transfer of the funds;
   4-14              (3)  report to the commission, on a quarterly basis,
   4-15  information regarding the agency's projected expenditures by budget
   4-16  strategy, compared to the agency's operating budget approved by the
   4-17  commission; and
   4-18              (4)  obtain commission approval for any adjustment to
   4-19  the agency's operating budget.
   4-20        (b)  The commission shall adopt rules to implement this
   4-21  section.
   4-22        Sec. 13B.  FEDERAL FUNDS.  (a)  Notwithstanding any other
   4-23  state law and to the extent permitted by federal law, an
   4-24  operational or funding plan or a modification to that plan prepared
   4-25  by a health and human services agency designated as the single
   4-26  state agency to administer federal funds is subject to commission
   4-27  approval.
    5-1        (b)  The commission shall evaluate the feasibility of
    5-2  designating the commission as the single state agency for federal
    5-3  funds received for a health and human services purpose.
    5-4        (c)  For the purpose of promoting integrated, community-based
    5-5  service delivery systems and to the extent permitted by federal
    5-6  law, the commission may consolidate federal funds to be given to
    5-7  local communities for the provision of health and human services.
    5-8        Sec. 13C.  AUTOMATED SYSTEMS.  A health and human services
    5-9  agency may not submit its plans to the Department of Information
   5-10  Resources under Subchapter E, Chapter 2054, Government Code, until
   5-11  those plans are approved by the commission.
   5-12        Sec. 13D.  INTERAGENCY TRANSFERS.  (a)  The commissioner may
   5-13  transfer funds between the health and human services agencies
   5-14  according to the provisions of the General Appropriations Act.
   5-15        (b)  The commission shall report to the governor's budget
   5-16  office, the Legislative Budget Board, and the comptroller regarding
   5-17  any transfer of funds the commissioner makes under this section.
   5-18        Sec. 13E.  COORDINATION AND APPROVAL OF CASELOAD ESTIMATES.
   5-19  (a)  The commission shall coordinate and approve caseload estimates
   5-20  made for programs administered by health and human services
   5-21  agencies.
   5-22        (b)  To implement this section, the commission shall:
   5-23              (1)  adopt uniform guidelines to be used by health and
   5-24  human services agencies in estimating their caseloads, with
   5-25  allowances given for those agencies for which exceptions from the
   5-26  guidelines may be necessary;
   5-27              (2)  assemble a single set of economic and demographic
    6-1  data and provide that data to each health and human services agency
    6-2  to be used in estimating its caseloads; and
    6-3              (3)  seek advice from health and human services
    6-4  agencies, the Legislative Budget Board, the governor's budget
    6-5  office, the comptroller, and other relevant agencies as needed to
    6-6  coordinate the caseload estimating process.
    6-7        (c)  The commission shall assemble caseload estimates made by
    6-8  health and human services agencies into a coherent, uniform report
    6-9  and shall  update the report quarterly, with assistance from those
   6-10  agencies.  The commission shall publish the report and make it
   6-11  readily available to state and local agencies and interested
   6-12  private organizations.
   6-13        (d)  In the report prepared under Subsection (c) of this
   6-14  section, the commission shall explain the caseload estimates using
   6-15  monthly averages, annual unduplicated recipients, annual service
   6-16  usage, and other commonly used measures.
   6-17        (e)  The commission shall attach a copy of the report
   6-18  prepared under Subsection (c) of this section to the consolidated
   6-19  health and human services budget recommendation submitted to the
   6-20  Legislative Budget Board under Section 13 of this article and shall
   6-21  also submit the report to the legislature when it convenes in
   6-22  regular session.
   6-23        SECTION 5.  Section 14, Article 4413(502), Revised Statutes,
   6-24  is amended  by amending Subsection (a) and by adding Subsection (d)
   6-25  to read as follows:
   6-26        (a)  The commissioner shall:
   6-27              (1)  arbitrate and render the <a> final decision on
    7-1  interagency disputes;
    7-2              (2)  facilitate and enforce coordinated planning and
    7-3  delivery of health and human services, including compliance with
    7-4  the coordinated strategic plan, co-location of services, integrated
    7-5  intake, and coordinated referral and case management;
    7-6              (3)  request budget execution for the transfer of funds
    7-7  from one agency to another;
    7-8              (4)  establish a federal health and human services
    7-9  funds management system and maximize the availability of those
   7-10  funds;
   7-11              (5)  develop with the Department of Information
   7-12  Resources automation standards for computer systems to enable
   7-13  health and human services agencies to share pertinent data;
   7-14              (6)  establish and enforce uniform regional boundaries
   7-15  for all health and human services agencies;
   7-16              (7)  carry out statewide health and human services
   7-17  needs surveys and forecasting;
   7-18              (8)  perform independent special outcome evaluations of
   7-19  health and human services programs and activities;
   7-20              (9)  adopt rules necessary to carry out the
   7-21  commission's duties under this Act; and
   7-22              (10)  review health and human services agency formulas
   7-23  <develop a formula> for the distribution of funds to ensure that
   7-24  the formulas, to the extent permitted by federal law, consider
   7-25  <considers> such need factors as client base, population, and
   7-26  economic and geographic factors within the regions of the state.
   7-27        (d)  Not later than the end of the first month of each fiscal
    8-1  year, the commissioner shall submit to the governor, the lieutenant
    8-2  governor, the speaker of the house of representatives, the
    8-3  comptroller, and the Legislative Budget Board a work plan outlining
    8-4  the activities of the commission for that fiscal year.  The work
    8-5  plan must establish priorities for the commission's activities
    8-6  based on available resources.
    8-7        SECTION 6.  Article 4413(502), Revised Statutes, is amended
    8-8  by adding Section 14A to read as follows:
    8-9        Sec. 14A.  DELIVERY OF SERVICES.  (a)  To accomplish the goal
   8-10  prescribed by Section 10(b)(3) of this article of integrating
   8-11  health and human services to provide for the efficient and timely
   8-12  delivery of services, each health and human services agency shall
   8-13  streamline the manner in which services are delivered by that
   8-14  agency in accordance with this section.
   8-15        (b)  To integrate and streamline service delivery and
   8-16  facilitate access to services, the commissioner may require a
   8-17  health and human services agency to take a specific action and may
   8-18  direct the manner in which the streamlining is to be accomplished,
   8-19  including requiring each health and human services agency to:
   8-20              (1)  simplify agency procedures;
   8-21              (2)  automate agency procedures;
   8-22              (3)  coordinate service planning and management tasks
   8-23  between and among health and human services agencies;
   8-24              (4)  reallocate staff resources;
   8-25              (5)  adopt rules;
   8-26              (6)  amend, waive, or repeal existing rules; and
   8-27              (7)  take other necessary actions.
    9-1        SECTION 7.  Article 4413(502), Revised Statutes, is amended
    9-2  by adding Section 23 to read as follows:
    9-3        Sec. 23.  USE OF AGENCY STAFF.  To the extent requested by
    9-4  the commission, a health and human services agency shall assign
    9-5  existing staff to perform a function under this article.
    9-6        SECTION 8.  Article 4413(502), Revised Statutes, is amended
    9-7  by adding Section 24 to read as follows:
    9-8        Sec. 24.  REPORTS ON DELIVERY OF SERVICES.  (a)  Each
    9-9  executive head of a health and human services agency shall report
   9-10  quarterly to the governing body of that agency on that agency's
   9-11  efforts to streamline and simplify the delivery of services as
   9-12  required by Section 14A of this article.  The agency shall submit a
   9-13  copy of the report to the commission.
   9-14        (b)  The commission shall prepare and deliver a semiannual
   9-15  report to the governor, the lieutenant governor, the speaker of the
   9-16  house of representatives, the comptroller, the Legislative Budget
   9-17  Board, and appropriate legislative committees on the efforts of the
   9-18  health and human services agencies to streamline the delivery of
   9-19  services provided by those agencies.
   9-20        (c)  The commissioner shall adopt rules relating to the
   9-21  reports required by Subsection (a) of this section, including rules
   9-22  specifying when and in what manner an agency must report and what
   9-23  information must be included in the report.  Each agency shall
   9-24  follow the rules adopted by the commissioner under this section.
   9-25        SECTION 9.  Section 3.08, Chapter 15, Acts of the 72nd
   9-26  Legislature, 1st Called Session, 1991 (Article 4413(505), Vernon's
   9-27  Texas Civil Statutes), is amended to read as follows:
   10-1        Sec. 3.08.  LOCATION <CO-LOCATION> OF OFFICES AND FACILITIES.
   10-2  (a)  As leases on office space expire, the commission shall
   10-3  determine the needs for space and the location of health and human
   10-4  services agency offices to enable the commission to achieve a
   10-5  cost-effective one-stop or service center method of health and
   10-6  human service delivery.  <The administrative heads of the health
   10-7  and human service agencies shall review the agencies' current
   10-8  office and facility arrangements and study the feasibility of
   10-9  co-locating offices or facilities located in the same geographic
  10-10  area and shall report back to the commission not later than
  10-11  September 1, 1992.>
  10-12        (b)  <On receiving approval from the commission, the
  10-13  administrative heads of two or more health and human service
  10-14  agencies with offices or facilities located in the same geographic
  10-15  region shall co-locate the offices or facilities if the results of
  10-16  the study conducted under this section show that client access
  10-17  would be enhanced, the cost of co-location is not greater than the
  10-18  combined operating costs of the separate offices or facilities of
  10-19  those agencies, and the co-location would improve the efficiency of
  10-20  the delivery of services.>
  10-21        <(c)>  In this section, "health and human service agencies"
  10-22  includes the:
  10-23              (1)  Interagency Council on Early Childhood
  10-24  Intervention Services;
  10-25              (2)  Texas Department on Aging;
  10-26              (3)  Texas Commission on Alcohol and Drug Abuse;
  10-27              (4)  Texas Commission for the Blind;
   11-1              (5)  Texas Commission for the Deaf and Hearing
   11-2  Impaired;
   11-3              (6)  Texas Department of Health;
   11-4              (7)  Texas Department of Human Services;
   11-5              (8)  Texas Juvenile Probation Commission;
   11-6              (9)  Texas Department of Mental Health and Mental
   11-7  Retardation;
   11-8              (10)  Texas Rehabilitation Commission; and
   11-9              (11)  Department of Protective and Regulatory Services.
  11-10        SECTION 10.  Subsection (a), Section 6.031, Article 6, State
  11-11  Purchasing and General Services Act (Article 601b, Vernon's Texas
  11-12  Civil Statutes), is amended to read as follows:
  11-13        (a)  Notwithstanding any other provision of this article, the
  11-14  <The> commission may not lease office space to service the needs of
  11-15  any <a single> health and human service agency unless the Health
  11-16  and Human Services Commission has approved the office space for the
  11-17  agency <agency can provide the commission with a reason for not
  11-18  sharing the office space with one or more other health and human
  11-19  service agencies>.
  11-20        SECTION 11.  (a)  The Health and Human Services Commission
  11-21  shall expand its existing integrated eligibility pilot programs to
  11-22  include the Harris County Hospital District and The University of
  11-23  Texas Medical Branch at Galveston.
  11-24        (b)  A contract with the Harris County Hospital District or
  11-25  The University of Texas Medical Branch at Galveston shall:
  11-26              (1)  specify performance-based measures to ensure error
  11-27  rates are kept within acceptable federal limits;
   12-1              (2)  assure that the contractor assumes all liability
   12-2  for any penalty incurred as a result of failure to meet federal
   12-3  standards; and
   12-4              (3)  authorize the district and the medical branch to
   12-5  simplify processes as much as possible and to use proprietary
   12-6  software.
   12-7        (c)  Subject to approval by the Health and Human Services
   12-8  Commission,  the Texas Department of Human Services shall establish
   12-9  standards for other automated systems to allow other entities to
  12-10  file information directly.
  12-11        (d)  The Health and Human Services Commission shall study the
  12-12  feasibility of enabling contractors or agencies other than the
  12-13  Texas Department of Human Services to provide or assist in the
  12-14  provision of client eligibility studies, determinations, and
  12-15  certifications.  In determining feasibility, the commission shall
  12-16  consider:
  12-17              (1)  error rates;
  12-18              (2)  the state's potential liability;
  12-19              (3)  expansion of the client population; and
  12-20              (4)  the federal single state agency restrictions.
  12-21        SECTION 12.  (a)  Not later than September 1, 1996, the
  12-22  Health and Human Services Commission, subject to the availability
  12-23  of funds to the commission and to health and human services
  12-24  agencies, shall have completed the development and substantial
  12-25  implementation of a plan for an integrated eligibility
  12-26  determination and service delivery system for health and human
  12-27  services at the local and regional levels.  The plan shall specify
   13-1  the dates by which all elements of the plan must be implemented.
   13-2        (b)  The integrated eligibility determination and service
   13-3  delivery system shall be developed and implemented to achieve at
   13-4  least a one percent savings in the cost of providing administrative
   13-5  and other services and staff resulting from streamlining and
   13-6  eliminating duplication of services.  The commission shall use the
   13-7  resulting savings to further develop the integrated system and to
   13-8  provide other health and human services.
   13-9        (c)  The commission shall examine cost-effective methods to
  13-10  address:
  13-11              (1)  fraud in the assistance programs; and
  13-12              (2)  the error rate in eligibility determination.
  13-13        (d)  In consultation and coordination with the State Council
  13-14  on Competitive Government, the commission shall make and implement
  13-15  recommendations on services or functions of the integrated
  13-16  eligibility determination and service delivery system that could be
  13-17  provided more effectively through the use of competitive bidding or
  13-18  by contracting with local governments and other appropriate
  13-19  entities.  If the commission determines that private contracting
  13-20  may be effective, the commission may automate the determination of
  13-21  client eligibility by contracting with a private firm to conduct
  13-22  application processing.
  13-23        (e)  Not later than October 1, 1996, the commission shall
  13-24  develop a plan to consolidate administrative and service delivery
  13-25  functions in addition to the integrated eligibility determination
  13-26  and service delivery system in order to minimize duplication.  The
  13-27  commission shall prepare a report of the plan for submission to the
   14-1  governor, the lieutenant governor, the speaker of the house of
   14-2  representatives, the comptroller, and the 75th Legislature when it
   14-3  convenes.
   14-4        SECTION 13.  (a)  Not later than September 1, 1997, the
   14-5  Health and Human Services Commission shall develop, using existing
   14-6  state, local, and private resources, an integrated approach to the
   14-7  health and human service delivery system that includes a
   14-8  cost-effective one-stop or service center method of delivery to a
   14-9  client.  The commission shall determine the feasibility of using
  14-10  hospitals, schools, mental health and mental retardation centers,
  14-11  health clinics, commercial locations in malls, and other
  14-12  appropriate locations to achieve this integrated approach.
  14-13        (b)  The health and human services agencies shall cooperate
  14-14  with the commission in developing the integrated eligibility
  14-15  determination and service delivery system.
  14-16        (c)  This section expires September 1, 1997.
  14-17        SECTION 14.  The changes in law made by this Act apply
  14-18  beginning with appropriations made for the fiscal year beginning
  14-19  September 1, 1995.
  14-20        SECTION 15.  This Act takes effect September 1, 1995.
  14-21        SECTION 16.  The importance of this legislation and the
  14-22  crowded condition of the calendars in both houses create an
  14-23  emergency and an imperative public necessity that the
  14-24  constitutional rule requiring bills to be read on three several
  14-25  days in each house be suspended, and this rule is hereby suspended.