By Zaffirini                                          S.B. No. 1675
       74R10504 CLG-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to powers and duties of the Health and Human Services
    1-3  Commission.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 10, Article 4413(502), Revised Statutes,
    1-6  is amended by amending Subsection (d) and adding Subsection (e) to
    1-7  read as follows:
    1-8        (d)  All health and human services agencies shall submit
    1-9  strategic plans and biennial updates to the commission on a date to
   1-10  be determined by commission rule.  The strategic plans and biennial
   1-11  updates are subject to commission approval.
   1-12        (e)  Not later than January 1 of each even-numbered year, the
   1-13  commission shall begin formal discussions with each health and
   1-14  human services agency regarding that agency's strategic plan or
   1-15  biennial update.
   1-16        SECTION 2.  Section 13, Article 4413(502), Revised Statutes,
   1-17  is amended to read as follows:
   1-18        Sec. 13.  Consolidated Health and Human Services Budget.
   1-19  (a)  The commission has comprehensive budget and planning authority
   1-20  for health and human services agencies in order to establish an
   1-21  integrated eligibility determination and service delivery system.
   1-22        (b)  The commission shall prepare and submit to the
   1-23  Legislative Budget Board and the governor by October 15 of
   1-24  even-numbered years a consolidated health and human services budget
    2-1  recommendation.
    2-2        (c) <(b)>  The commission shall base the consolidated budget
    2-3  recommendation prepared under this article on priorities set in the
    2-4  commission's coordinated strategic plan for health and human
    2-5  services.
    2-6        (d) <(c)>  All health and human services agencies shall
    2-7  submit to the commission a biennial agency legislative
    2-8  appropriations request on a date to be determined by commission
    2-9  rule.
   2-10        (e)  A health and human services agency may not submit to the
   2-11  legislature or the governor its legislative appropriations request
   2-12  until the legislative appropriations request is approved by the
   2-13  commission.
   2-14        SECTION 3.  Article 4413(502), Revised Statutes, is amended
   2-15  by adding Sections 13A-13E to read as follows:
   2-16        Sec. 13A.  HEALTH AND HUMAN SERVICES AGENCIES OPERATING
   2-17  BUDGETS.  (a)  In addition to the provisions of the General
   2-18  Appropriations Act, each agency subject to the provisions of this
   2-19  article shall:
   2-20              (1)  obtain commission approval of its annual operating
   2-21  budget prior to adoption of its annual operating budget;
   2-22              (2)  obtain commission approval of the transfer of
   2-23  funds between budget strategies prior to the transfer of the funds;
   2-24              (3)  report to the commission, on a quarterly basis,
   2-25  information regarding the agency's projected expenditures by budget
   2-26  strategy, compared to the agency's operating budget approved by the
   2-27  commission; and
    3-1              (4)  obtain commission approval for any adjustment to
    3-2  the agency's operating budget.
    3-3        (b)  The commission shall adopt rules to implement this
    3-4  section.
    3-5        Sec. 13B.  FEDERAL FUNDS.  (a)  Notwithstanding any other
    3-6  state law and to the extent permitted by federal law, an
    3-7  operational or funding plan or a modification to that plan prepared
    3-8  by a health and human services agency designated as the single
    3-9  state agency to administer federal funds is subject to commission
   3-10  approval.
   3-11        (b)  The commission shall evaluate the feasibility of
   3-12  designating the commission as the single state agency for federal
   3-13  funds received for a health and human services purpose.
   3-14        (c)  For the purpose of promoting integrated, community-based
   3-15  service delivery systems and to the extent permitted by federal
   3-16  law, the commission may consolidate federal funds to be given to
   3-17  local communities for the provision of health and human services.
   3-18        Sec. 13C.  AUTOMATED SYSTEMS.  A health and human services
   3-19  agency may not submit its plans to the Department of Information
   3-20  Resources under Subchapter E, Chapter 2054, Government Code, until
   3-21  those plans are approved by the commission.
   3-22        Sec. 13D.  INTERAGENCY TRANSFERS.  (a)  The commissioner may
   3-23  transfer funds between the health and human services agencies
   3-24  according to the provisions of the General Appropriations Act.
   3-25        (b)  The commission shall report to the governor's budget
   3-26  office, the Legislative Budget Board, and the comptroller regarding
   3-27  any transfer of funds the commissioner makes under this section.
    4-1        Sec. 13E.  COORDINATION AND APPROVAL OF CASELOAD ESTIMATES.
    4-2  (a)  The commission shall coordinate and approve caseload estimates
    4-3  made for programs administered by health and human services
    4-4  agencies.
    4-5        (b)  To implement this section, the commission shall:
    4-6              (1)  adopt uniform guidelines to be used by health and
    4-7  human services agencies in estimating their caseloads, with
    4-8  allowances given for those agencies for which exceptions from the
    4-9  guidelines may be necessary;
   4-10              (2)  assemble a single set of economic and demographic
   4-11  data and provide that data to each health and human services agency
   4-12  to be used in estimating its caseloads; and
   4-13              (3)  seek advice from health and human services
   4-14  agencies, the Legislative Budget Board, the governor's budget
   4-15  office, the comptroller, and other relevant agencies as needed to
   4-16  coordinate the caseload estimating process.
   4-17        (c)  The commission shall assemble caseload estimates made by
   4-18  health and human services agencies into a coherent, uniform report
   4-19  and shall  update the report quarterly, with assistance from those
   4-20  agencies.  The commission shall publish the report and make it
   4-21  readily available to state and local agencies and interested
   4-22  private organizations.
   4-23        (d)  In the report prepared under Subsection (c) of this
   4-24  section, the commission shall explain the caseload estimates using
   4-25  monthly averages, annual unduplicated recipients, annual service
   4-26  usage, and other commonly used measures.
   4-27        (e)  The commission shall attach a copy of the report
    5-1  prepared under Subsection (c) of this section to the consolidated
    5-2  health and human services budget recommendation submitted to the
    5-3  Legislative Budget Board under Section 13 of this article and shall
    5-4  also submit the report to the legislature when it convenes in
    5-5  regular session.
    5-6        SECTION 4.  Section 14, Article 4413(502), Revised Statutes,
    5-7  is amended  by amending Subsection (a) and adding Subsection (d) to
    5-8  read as follows:
    5-9        (a)  The commissioner shall:
   5-10              (1)  arbitrate and render the <a> final decision on
   5-11  interagency disputes;
   5-12              (2)  facilitate and enforce coordinated planning and
   5-13  delivery of health and human services, including compliance with
   5-14  the coordinated strategic plan, co-location of services, integrated
   5-15  intake, and coordinated referral and case management;
   5-16              (3)  request budget execution for the transfer of funds
   5-17  from one agency to another;
   5-18              (4)  establish a federal health and human services
   5-19  funds management system and maximize the availability of those
   5-20  funds;
   5-21              (5)  develop with the Department of Information
   5-22  Resources automation standards for computer systems to enable
   5-23  health and human services agencies to share pertinent data;
   5-24              (6)  establish and enforce uniform regional boundaries
   5-25  for all health and human services agencies;
   5-26              (7)  carry out statewide health and human services
   5-27  needs surveys and forecasting;
    6-1              (8)  perform independent special outcome evaluations of
    6-2  health and human services programs and activities;
    6-3              (9)  adopt rules necessary to carry out the
    6-4  commission's duties under this Act; and
    6-5              (10)  review health and human services agency formulas
    6-6  <develop a formula> for the distribution of funds to ensure that
    6-7  the formulas, to the extent permitted by federal law, consider such
    6-8  need factors as client base, population, and economic and
    6-9  geographic factors within the regions of the state.
   6-10        (d)  Not later than the end of the first month of each fiscal
   6-11  year, the commissioner shall submit to the governor, the lieutenant
   6-12  governor, the speaker of the house of representatives, the
   6-13  comptroller, and the Legislative Budget Board a work plan outlining
   6-14  the activities of the commission for that fiscal year.  The work
   6-15  plan must establish priorities for the commission's activities
   6-16  based on available resources.
   6-17        SECTION 5.  Article 4413(502), Revised Statutes, is amended
   6-18  by adding Section 14A to read as follows:
   6-19        Sec. 14A.  DELIVERY OF SERVICES.  (a)  To accomplish the goal
   6-20  prescribed by Section 10(b)(3) of this article of integrating
   6-21  health and human services to provide for the efficient and timely
   6-22  delivery of services, each health and human services agency shall
   6-23  streamline the manner in which services are delivered by that
   6-24  agency in accordance with this section.
   6-25        (b)  To integrate and streamline service delivery and
   6-26  facilitate access to services, the commissioner may require a
   6-27  health and human services agency to take a specific action and may
    7-1  direct the manner in which the streamlining is to be accomplished,
    7-2  including requiring each health and human services agency to:
    7-3              (1)  simplify agency procedures;
    7-4              (2)  automate agency procedures;
    7-5              (3)  coordinate service planning and management tasks
    7-6  between and among health and human services agencies;
    7-7              (4)  reallocate staff resources;
    7-8              (5)  adopt rules;
    7-9              (6)  amend, waive, or repeal existing rules; and
   7-10              (7)  take other necessary actions.
   7-11        SECTION 6.  Article 4413(502), Revised Statutes, is amended
   7-12  by adding Section 23 to read as follows:
   7-13        Sec. 23.  USE OF AGENCY STAFF.  To the extent requested by
   7-14  the commission, a health and human services agency shall assign
   7-15  existing staff to perform a function under this article.
   7-16        SECTION 7.  Article 4413(502), Revised Statutes, is amended
   7-17  by adding Section 24 to read as follows:
   7-18        Sec. 24.  REPORTS ON DELIVERY OF SERVICES.  (a)  Each
   7-19  executive head of a health and human services agency shall report
   7-20  quarterly to the governing body of that agency on that agency's
   7-21  efforts to streamline and simplify the delivery of services as
   7-22  required by Section 14A of this article.  The agency shall submit a
   7-23  copy of the report to the commission.
   7-24        (b)  The commission shall prepare and deliver a semiannual
   7-25  report to the governor, the lieutenant governor, the speaker of the
   7-26  house of representatives, the comptroller, the Legislative Budget
   7-27  Board, and appropriate legislative committees on the efforts of the
    8-1  health and human services agencies to streamline the delivery of
    8-2  services provided by those agencies.
    8-3        (c)  The commissioner shall adopt rules relating to the
    8-4  reports required by Subsection (a) of this section, including rules
    8-5  specifying when and in what manner an agency must report and what
    8-6  information must be included in the report.  Each agency shall
    8-7  follow the rules adopted by the commissioner under this section.
    8-8        SECTION 8.  Section 3.08, Chapter 15, Acts of the 72nd
    8-9  Legislature, 1st Called Session, 1991 (Article 4413(505), Vernon's
   8-10  Texas Civil Statutes), is amended to read as follows:
   8-11        Sec. 3.08.  LOCATION <CO-LOCATION> OF OFFICES AND FACILITIES.
   8-12  (a)  As leases on office space expire, the commission shall
   8-13  determine the needs for space and the location of health and human
   8-14  services agency offices to enable the commission to achieve a
   8-15  cost-effective one-stop or service center method of health and
   8-16  human service delivery.  <The administrative heads of the health
   8-17  and human service agencies shall review the agencies' current
   8-18  office and facility arrangements and study the feasibility of
   8-19  co-locating offices or facilities located in the same geographic
   8-20  area and shall report back to the commission not later than
   8-21  September 1, 1992.>
   8-22        (b)  <On receiving approval from the commission, the
   8-23  administrative heads of two or more health and human service
   8-24  agencies with offices or facilities located in the same geographic
   8-25  region shall co-locate the offices or facilities if the results of
   8-26  the study conducted under this section show that client access
   8-27  would be enhanced, the cost of co-location is not greater than the
    9-1  combined operating costs of the separate offices or facilities of
    9-2  those agencies, and the co-location would improve the efficiency of
    9-3  the delivery of services.>
    9-4        <(c)>  In this section, "health and human service agencies"
    9-5  includes the:
    9-6              (1)  Interagency Council on Early Childhood
    9-7  Intervention Services;
    9-8              (2)  Texas Department on Aging;
    9-9              (3)  Texas Commission on Alcohol and Drug Abuse;
   9-10              (4)  Texas Commission for the Blind;
   9-11              (5)  Texas Commission for the Deaf and Hearing
   9-12  Impaired;
   9-13              (6)  Texas Department of Health;
   9-14              (7)  Texas Department of Human Services;
   9-15              (8)  Texas Juvenile Probation Commission;
   9-16              (9)  Texas Department of Mental Health and Mental
   9-17  Retardation;
   9-18              (10)  Texas Rehabilitation Commission; and
   9-19              (11)  Department of Protective and Regulatory Services.
   9-20        SECTION 9.  Section 6.031(a), Article 6, State Purchasing and
   9-21  General Services Act (Article 601b, Vernon's Texas Civil Statutes),
   9-22  is amended to read as follows:
   9-23        (a)  Notwithstanding any other provision of this article, the
   9-24  <The> commission may not lease office space to service the needs of
   9-25  any <a single> health and human service agency unless the Health
   9-26  and Human Services Commission has approved the office space for the
   9-27  agency <agency can provide the commission with a reason for not
   10-1  sharing the office space with one or more other health and human
   10-2  service agencies>.
   10-3        SECTION 10.  (a)  The Health and Human Services Commission
   10-4  shall expand its existing integrated eligibility pilot programs to
   10-5  include the Harris County Hospital District and The University of
   10-6  Texas Medical Branch at Galveston.
   10-7        (b)  A contract with the Harris County Hospital District or
   10-8  The University of Texas Medical Branch at Galveston shall:
   10-9              (1)  specify performance-based measures to ensure error
  10-10  rates are kept within acceptable federal limits;
  10-11              (2)  assure that the contractor assumes all liability
  10-12  for any penalty incurred as a result of failure to meet federal
  10-13  standards; and
  10-14              (3)  authorize the district and medical branch to
  10-15  simplify processes as much as possible and to use proprietary
  10-16  software.
  10-17        (c)  Subject to approval by the Health and Human Services
  10-18  Commission,  the Texas Department of Human Services shall establish
  10-19  standards for other automated systems to allow other entities to
  10-20  file information directly.
  10-21        (d)  The Health and Human Services Commission shall study the
  10-22  feasibility of enabling contractors or agencies other than the
  10-23  Texas Department of Human Services to provide or assist in the
  10-24  provision of client eligibility studies, determinations, and
  10-25  certifications.  In determining feasibility, the commission shall
  10-26  consider:
  10-27              (1)  error rates;
   11-1              (2)  the state's potential liability;
   11-2              (3)  expansion of the client population; and
   11-3              (4)  the federal single state agency restrictions.
   11-4        SECTION 11.  (a)  Not later than September 1, 1996, the
   11-5  Health and Human Services Commission, subject to the availability
   11-6  of funds to the commission and to health and human services
   11-7  agencies, shall have completed the development and substantial
   11-8  implementation of a plan for an integrated eligibility
   11-9  determination and service delivery system for health and human
  11-10  services at the local and regional levels.  The plan shall specify
  11-11  the dates by which all elements of the plan must be implemented.
  11-12        (b)  The integrated eligibility determination and service
  11-13  delivery system shall be developed and implemented to achieve at
  11-14  least a one percent savings in the cost of providing administrative
  11-15  and other services and staff resulting from streamlining and
  11-16  eliminating duplication of services.  The commission shall use the
  11-17  resulting savings to further develop the integrated system and to
  11-18  provide other health and human services.
  11-19        (c)  The commission shall examine cost-effective methods to
  11-20  address:
  11-21              (1)  fraud in the assistance programs; and
  11-22              (2)  the error rate in eligibility determination.
  11-23        (d)  In consultation and coordination with the State Council
  11-24  on Competitive Government, the commission shall make and implement
  11-25  recommendations on services or functions of the integrated
  11-26  eligibility determination and service delivery system that could be
  11-27  provided more effectively through the use of competitive bidding or
   12-1  by contracting with local governments and other appropriate
   12-2  entities.  If the commission determines that private contracting
   12-3  may be effective, the commission may automate the determination of
   12-4  client eligibility by contracting with a private firm to conduct
   12-5  application processing.
   12-6        (e)  Not later than October 1, 1996, the commission shall
   12-7  develop a plan to consolidate administrative and service delivery
   12-8  functions in addition to the integrated eligibility determination
   12-9  and service delivery system in order to minimize duplication.  The
  12-10  commission shall prepare a report of the plan for submission to the
  12-11  governor, the lieutenant governor, the speaker of the house of
  12-12  representatives, the comptroller, and the 75th Legislature when it
  12-13  convenes.
  12-14        SECTION 12.  (a)  Not later than September 1, 1997, the
  12-15  Health and Human Services Commission shall develop, using existing
  12-16  state, local, and private resources, an integrated approach to the
  12-17  health and human service delivery system that includes a
  12-18  cost-effective one-stop or service center method of delivery to a
  12-19  client.  The commission shall determine the feasibility of using
  12-20  hospitals, schools, mental health and mental retardation centers,
  12-21  health clinics, commercial locations in malls, and other
  12-22  appropriate locations to achieve this integrated approach.
  12-23        (b)  The health and human services agencies shall cooperate
  12-24  with the commission in developing the integrated eligibility
  12-25  determination and service delivery system.
  12-26        (c)  This section expires September 1, 1997.
  12-27        SECTION 13.  The changes in law made by this Act apply
   13-1  beginning with appropriations made for the fiscal year beginning
   13-2  September 1, 1995.
   13-3        SECTION 14.  This Act takes effect September 1, 1995.
   13-4        SECTION 15.  The importance of this legislation and the
   13-5  crowded condition of the calendars in both houses create an
   13-6  emergency and an imperative public necessity that the
   13-7  constitutional rule requiring bills to be read on three several
   13-8  days in each house be suspended, and this rule is hereby suspended.