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.