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