SRC-JFA H.B. 2777 75(R) BILL ANALYSIS Senate Research Center H.B. 2777 By: Junell (Ratliff) Health & Human Services 5-12-97 Engrossed DIGEST Currently, Section 9.12, Chapter 655, Acts of the 74th Legislature, Regular Session, 1995 (H.B. 1863), requires the Health and Human Services Commission (commission) to have completed the development and substantial implementation of a plan for an integrated eligibility determination and service delivery system for health and human services at the local and regional levels by September 1, 1996. This section includes language allowing the commission to initiate privatization studies to determine the feasibility of integrating eligibility determination and service delivery. The State Council on Competitive Government (council) has been working for over a year and a half to develop a Request For Offers (RFO) which would privatize not only the computer system, but personnel doing intake as well. While the original intent of this section was to reduce overlap and create a system capable of handling one-stop enrollment, the work of the council has greatly expanded the privatization to include many jobs currently held by state employees. The proposed elimination of state jobs has unduly led to concern of many state employees that upon implementation they will be without employment. Additionally, the federal government has failed to approve or deny the proposed RFO. If the focus of the section was returned to the beginning with the development of a computer system and the examining of job privatization in the future, the state would both remove some of the ongoing anxiety among state employees concerned for their employment and allow for more rapid federal approval. This bill would authorize the commission to determine the development of an integrated enrollment system and the implementation of such a system with federal approval. PURPOSE As proposed, H.B. 2777 authorizes the Health and Human Services Commission to determine the development of an integrated enrollment system and the implementation of such a system with federal approval. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 9.12(b) and (d), Chapter 655, Acts of the 74th Legislature, Regular Session, 1995, to authorize, rather than require, the Health and Human Services Commission (commission) to use certain savings to further develop the integrated system and to provide other health and human services, as determined by the General Appropriations Act. Requires the commission, in consultation with the governor and the Legislative Budget Board, rather than the State Council on Competitive Government, to make and implement recommendations on services and functions of the integrated eligibility determination and service delivery system that could be provided more effectively through the use of competitive bidding or by contracting with local governments and other appropriate entities. Authorizes the commission, if the commission determines that contracting, rather than private contracting, may be effective and the commission receives federal approval, to automate the determination of client eligibility by contracting with a private firm to design and develop computer hardware and software for and provide technical support related to the integrated eligibility determination system, rather than to conduct application processing. SECTION 2. Emergency clause. Effective date: upon passage.