SGN C.S.H.B. 2074 75(R)BILL ANALYSIS CORRECTIONS C.S.H.B. 2074 By: Hightower 3-19-97 Committee Report (Substituted) BACKGROUND The Texas Youth Commission (TYC), in its present structure, was created in 1957 by the 55th Legislature. TYC is responsible for administering the state's correctional facilities for children, providing a program of constructive training aimed at rehabilitation, and providing active parole supervision for children discharged from agency custody. TYC carries out its programs and functions through a six-member Commission. To carry out these programs, TYC had a budget of $167,494,560 and 2,372 employees for fiscal year 1996. TYC is subject to the Sunset Act and will be abolished September 1, 1997 unless continued by the Legislature. As a result of its review of TYC, the Sunset Advisory Commission recommended continuation and several statutory modifications that are contained in this legislation. PURPOSE The purpose of this bill is to continue TYC for a 12-year period and make statutory modifications recommended by the Sunset Advisory Commission. The modifications proposed by this bill: -require the establishment and use of sound performance-based contracting practices for residential treatment client services and the monitoring of these contracts for compliance with financial and performance requirements; -require TYC to apply for benefits, when cost effective, under the federal Medicaid program to help reduce health care costs incurred by the agency; and, -provide for other changes as recommended by the Sunset Commission. RULEMAKING AUTHORITY It is the committee's opinion that C.S.H.B. 2074 does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. In addition, under the general rulemaking authority already granted to the policymaking body, rules may be developed to implement other new provisions found in this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 61.012(a), Human Resources Code. Updates standard language developed by the Sunset Commission regarding qualifications for appointment to the board. Deletes the word "handicap" and replaces it with "disability". SECTION 2. Amends Section 61.0121, Human Resources Code. Updates standard language developed by the Sunset Commission prohibiting board members or their spouses and employees compensated at or above Group 17 in the General Appropriations Act from being an officer or employee of a related Texas trade association. Prohibits registered lobbyists from serving as a member of the board or from being employed as the board's or commission's general counsel. Also updates language defining Texas trade association. SECTION 3. Amends Subchapter B, Chapter 61, Human Resources Code, by adding Section 61.0122. Adds standard language developed by the Sunset Commission. Requires the board to complete one course of training before assuming their duties and being confirmed by the Senate. SECTION 4. Amends Section 61.013(a), Human Resources Code. Adds standard language developed by the Sunset Commission. Requires the Governor to designate the chairman of the board. SECTION 5. Amends Section 61.0151(c), Human Resources Code. Updates standard language developed by the Sunset Commission defining the grounds for removing a board member and requiring notification of the board's chairman, the governor, and the attorney general if knowledge that a potential ground for removal exists. SECTION 6. Amends Section 61.020, Human Resources Code. Updates commission's sunset review date to 2009, providing for the usual 12-year review. SECTION 7. Amends Subchapter B, Chapter 61, Human Resources Code, by adding Section 61.022. Adds standard language developed by the Sunset Commission. Requires the commission to comply with state and federal program and facility accessability laws and to develop a plan that describes how non-English speaking persons can be provided reasonable access to the commission's programs. SECTION 8. Amends Section 61.033, Human Resources Code. Updates standard language developed by the Sunset Commission requiring the commission to prepare an annual financial report that meets the reporting requirements in the General Appropriations Act. SECTION 9. Amends Section 61.0351, Human Resources Code. Updates standard language developed by the Sunset Commission requiring the executive director or a designee to inform its board members and commission employees of the qualifications for office or employment. SECTION 10. Amends Section 61.0352, Human Resources Code. Updates standard language developed by the Sunset Commission requiring the separation of board policymaking responsibilities from the management responsibilities of the executive director and staff of the commission. SECTION 11. Amends Section 61.0353, Human Resources Code. Updates standard language developed by the Sunset Commission requiring the executive director or a designee to develop an intra-agency career ladder program that addresses mobility and advancement opportunities for employees within the commission. SECTION 12. Amends Section 61.0354, Human Resources Code. Updates standard language developed by the Sunset Commission requiring the executive director or a designee to develop a system of annual performance evaluations based on documented employee performance. SECTION 13. Amends Section 61.0355, Human Resources Code. Updates standard language developed by the Sunset Commission requiring the executive director or a designee to develop an equal employment policy that is annually updated, reviewed by the Texas Commission on Human Rights, and filed with the Governor's Office. SECTION 14. Amends Section 61.0422, Human Resources Code. Updates and modifies standard language developed by the Sunset Commission requiring the commission to collect and maintain information about complaints. Distinguishes between public complaints and those by a child receiving services from the commission, or the child's parent or guardian. The commission is required to provide a summary of the results of a review or investigation of a complaint for both types, but is required to collect less information on complaints filed by a child in their custody or by the child's parent or guardian. SECTION 15. Amends Section 61.0423, Human Resources Code. Updates standard language developed by the Sunset Commission requiring the board to give the public reasonable opportunity to appear before it regarding the issues under the jurisdiction of the commission. SECTION 16. Amends Subchapter C, Chapter 61, Human Resources Code, by adding Sections 61.051, 61.052, 61.053. Section 61.051. Requires the commission to develop a performance-based contracting system for residential client services that establishes clearly defined goals, sanctions, and reporting requirements. Section 61.052. Requires the commission to develop a formal program to monitor residential client services contracts for compliance with performance requirements and evaluate cost information. Section 61.053. Requires the commission, when cost-effective, to apply for benefits under the federal Medicaid program to reduce health care costs. SECTION 17. Repeals Section 61.035(c) and (d), Human Resources Code. Technical change. Deletes standard language developed by the Sunset Commission that establishes conflict of interest guidelines for commission employees. Updated language is re-inserted in Section 61.021, Human Resources Code. SECTION 18. Specifies that the changes to board member qualifications apply only to members appointed on or after September 1, 1997. Specifies that changes to board member qualifications do not prevent a person who serves on the board before September 1, 1997 from being reappointed if that person meets the qualifications effective on that date. SECTION 19. Effective date: September 1, 1997. SECTION 20. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute deletes language requiring the Texas Youth Commission to, jointly with the Texas Juvenile Probation Commission, establish county pilot programs to allow the pooling of state and local funds to provide services to children in the juvenile justice system.