JKC C.S.H.B. 2084 75(R)BILL ANALYSIS


HUMAN SERVICES
H.B. 2084
By: Hilderbran
4-28-97
Committee Report (Substituted)


BACKGROUND 

In December, 1996, the interim report on long-term care from the 
Texas House Committee on 
Human Services was published.  The report recommended: "Direct 
Department of Human 
Services and the appropriate state agencies to develop a voucher 
system of long-term care 
services as a pilot program."

Rather than creating a separate program to pilot vouchers, this 
bill creates a voucher option in 
two existing long-term service programs.  Both the Texas 
Department of Human Services (DHS) 
Client-Managed Attendant Services (CMAS) program and the Texas 
Rehabilitation Commission 
(TRC) Personal Attendant  Services Program currently have two 
payment options: 10 agency 
delivered (where the assistant is the employee of the provider 
agency) and 20 block grant "flow 
through" (where a consumer can receive a lump sum and pay the 
assistant directly, and the 
assistant is the employee of the consumer).  The intent is not to 
eliminate these options, but 
rather to create a true choice model, with a spectrum of payment 
options.

The DHS Client-Managed Attendant Services and TRC Personal 
Attendant Service Programs are 
logical points at which to integrate a voucher option, because 
these programs are state funded, 
rather than Medicaid funded, and thus allow more flexibility to 
test new payment models.

HB 2084 also calls for investigating the expansion of the voucher 
payment models into 
Medicaid-funded community based long-term services, where the 
potential is enormous for 
increasing consumer choice and control, as well as increasing 
efficiency.

The voucher model espoused in HB 2084 maximizes consumer control, 
while reducing the 
administrative burden on the consumer and potentially achieving 
cost savings.  It increases 
consumer and worker compliance with filing federal and state 
employment taxes and adherence 
to labor laws.  Further, this model allows a person with a 
disability to retain control over the 
selection, management, and dismissal, if necessary, of his or her 
personal assistant, and at the 
same time, it relieves that person of the administrative 
requirements of handling employer-related 
payroll and tax functions on behalf of the personal assistant.

PURPOSE

This bill requires the Department of Human Services (DHS), the 
Texas Rehabilitation 
Commission (TRC), the comptroller and other appropriate agencies, 
to establish a voucher pilot 
in the DHS Client-Managed Attendant Services Program and the TRC 
Personal Attendant 
Services program.  This pilot ensures that consumers will be 
provided appropriate information to 
choose a payment option for their service delivery, and that 
consumers sign a statement that they 
have been informed of these options.

Under this pilot, a private entity or local government serves as 
an IRS-designated agent (fiscal 
intermediary) to act on behalf of the consumer for the purpose of 
handling federal and state 
employment taxes, preparing and filing tax forms and reports, and 
distributing money to a 
personal assistant, after a deduction for employment taxes.

RULEMAKING AUTHORITY

Section 1, Section 22.032 (b) of the Huamn Resource Code, grants 
rulemaking authority to the
 Department of Human Services. Subsection (c) provides direction 
for the department in adopting 
the rules.

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Chapter 22, Human Resource Code, by adding 
sections 22.032 and 
22.033.

Section 22.032.  Voucher Pilot Project

(a)Definitions are provided for consumer, long-term care, 
personal assistance 
services, and respite services.

(b)Directs the Department of Human Services, by rule, to develop 
and ensure the 
implementation a pilot project establishing vouchers as a payment 
option for 
the delivery of long-term care services, personal assistance 
services, and 
respite services.

(c)Provides the following guidelines for the department to 
utilize when adopting 
rules under this section:

(1)consult with the work group created under section 22.033;

   (2)work with TRC, the comptroller, and other agencies;

   (3)design the pilot so that a private or local government entity 
may seek 
approval by the IRS to act as a consumer's agent in order to 
compute 
federal and state employment taxes, preparing and filing income 
tax forms, 
and distributing money to a long-term care, personal assistance, 
or respite 
services provider following employment tax deductions.

(4)ensure that the pilot complies with federal and state laws;

(5)ensure that the consumer controls selecting, managing, and 
dismissing his 
or her provider;

 (6)ensure that a potential consumer participating in the pilot 
project has 
adequate and appropriate information;

(7)require each consumer to sign a statement acknowledging 
receipt of the 
information in (6);

(8)monitor the pilot project to ensure adherence to current 
program standards, 
appropriate use of funds, and consumer satisfaction.

(d)Directs TRC and the comptroller to provide appropriate 
information to the 
department to facilitate development of the pilot.

(e)Directs the department to implement the pilot statewide as 
part of the TRC 
personal attendant services program and the DHS CMAS program.

(f)Direct DHS to submit a report to the governor and the 76th 
Legislature by 
March 1, 1999 on the feasibility of expanding the pilot statewide 
to Medicaid-
funded community-based service programs.
  
(g)Expiration Date: September 1, 2002.

Sec. 22.033.  Work Group.

 Creates a work group to assist the department in developing, 
implementing and 
evaluating the voucher payment pilot program.  Provides for the 
composition, 
serving capacity, appointing of members and officers, meetings, 
and 
compensation of the work group.  The work group is not subject to 
Article 6252-
33, Revised Statutes.  This section expires September 1, 2002.

SECTION 2.(a)Effective Date: September 1, 1997.  

(b)Directs DHS to establish the pilot project by January 1, 1998.

SECTION 3.Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

H.B. 2084
C.S.H.B. 2084
Amends Chapter 531, Government Code by 
adding Sec. 531.047 as follows:
Amends Chapter 22, Human Resource 
Code by 
adding Sec. 22.032 and 22.033 as follows:
SECTION 1.


(1)The pilot program is established by the Health 
and Human Services Commission (HHSC).  

(2)Definitions are given for "consumer", "Long 
term care", "Personal assistance services", and 
"respite services."

(3)In adopting rules to implement the project, the 
HHSC is directed to: consult with consumers 
and advocates for persons with disabilities; 
work with DHS, TWC, the comptroller, and 
other appropriate agencies; and design the 
program in a manner in which a private or 
local governmental entity may act as the agent 
for the consumer; ensure the program complies 
with federal and state tax laws; ensure 
consumer control over service provided; 
ensure provision of information before a 
consumer chooses a payment option; and 
require a consumer to sign a statement that the 
information has been provided.

(4)DHS, TRC, and the comptroller shall provide 
necessary information to HHSC, which shall 
implement the pilot project as part of both the 
TRC personal attendant service program and 
the DHS client-managed attendant service 
program. DHS and TRC shall report to HHSC, 
and HHSC shall report to the governor and the 
76th Legislature.  Expires Sept. 1, 2002.
SECTION 1. Same as 
original except for the 
following:

(1)The pilot program is established by the 
Department of Human Services (DHS).

(2)"Personal assistance services" is assigned the 
meaning in Section 142.001, Health and 
Safety Code.

(3)Rulemaking authority is granted to DHS, 
which is directed to consult with and seek 
input from the work group created in Section 
2, not consumers and advocates as reflected in 
the original bill.  Additionally, DHS is directed 
to develop a system to monitor the pilot 
project.  The substitute clarifies the 
information to be provided to the consumer.







(4)Information is to be provided to DHS for the 
development and implementation of the 
project, and DHS is directed to report to the 
governor and the 76th Legislature.
No such provision is made.
SECTION 2. A work group is created to assist the 
development of the project.
SECTION 2. Effective Date: September 
1, 1997.
SECTION 3. Effective Date: same as original.
SECTION 3: 
Emergency Clause.