BILL ANALYSIS



HUMAN SERVICES
H.B. 2777
By: Junell
4-14-97
Committee Report (substituted)



BACKGROUND

During the 74th Legislative Session, House Bill 1863 passed, which
included language to initiate privatization studies to determine the
feasibility of integrating eligibility determination and service delivery.
The State Council on Competitive Government has been working for over a
year and a half to develop an RFO (Request For Offers) which would
privatize not only the computer system, but personnel doing intake as
well.  Agencies have paired with private corporations to prepare for
bidding on the privatization of the various functions. 

While the original intent 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.  Issues as to whether a private company would hire the
current state employees at their existing pay and benefits, or even retain
positions in the current locations, cannot be answered or resolved until a
detailed RFO is let and awarded.  The proposed elimination of state jobs
has unduly led to alarm and concern of many state employees that upon
implementation they will be without employment.  For over a year, many
state employees have felt uncertain as to their future.   

In addition, the federal government has failed to meet several
self-imposed deadlines for approval or denial of the proposed RFO, and the
State is no closer to obtaining an integrated computer system to
streamline and reduce duplication.  By returning the focus to beginning
with the development of computer system and examining job privatization in
the future, the state would both remove much of the ongoing anxiety among
state employees concerned for their employment and allow for more rapid
federal approval. 

PURPOSE

As proposed, HB 2777 grants the authority to the Health and Human Services
Commissioner to determine the development of an integrated enrollment
system and the implementation of such a system with federal approval. 

RULEMAKING AUTHORITY

It is the opinion of the committee that this bill does not expressly grant
any additional rule making authority to a state officer, department,
agency or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Chapter 655, Acts of the 74th Legislature, Regular
Session, 1995. 

Section 9.12(b) is amended to allow the commission to use the savings
resulting from streamlining in eligibility determination and service
delivery to further develop the integrated system and to provide other
services as determined by the General Appropriations Act. 

Section 9.12(d) is amended to direct the commission, upon consultation
with the governor and Legislative Budget Board, to contract with local
governments or other entities to conduct integrated eligibility
determination and to operate the service delivery system. Further, the
section is amended to require federal approval, in addition to a
determination by the department that contracting would be more effective,
for the commission to contract with a private firm to develop computer
systems and provide technical support for automation of the eligibility
system. 

SECTION 2. Emergency Clause.

COMPARISON OF SUBSTITUTE TO ORIGINAL

SECTION 1:  (d) In the first sentence, replace "State Council on
Competitive Government" with "governor and the Legislative Budget Board." 

(d) In the last sentence, instead of adding "local government, or other
appropriate entity," add "to design and develop computer hardware and
software for and provide technical support related to the integrated
eligibility determination system," and delete "conduct application
processing."