SRC-JFA C.S.H.B. 2777 75(R)BILL ANALYSIS Senate Research CenterC.S.H.B. 2777 By: Junell (Ratliff) Health & Human Services 5-16-97 Committee Report (Substituted) DIGEST Currently, Section 9.12, Chapter 655, Acts of the 74th Legislature, Regular Session, 1995 (C.S.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 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. This bill would require the commission, in consultation and coordination with the Legislative Budget Board as to expenditure of appropriated funds and subject to the approval of the Governor, to develop and implement a plan for the integration of services and functions relating to eligibility determination and service delivery by health and human services agencies, the Texas Workforce Commission, and other agencies. PURPOSE As proposed, C.S.H.B. 2777 requires the Health and Human Services Commission, in consultation with the Legislative Budget Board as to the expenditure of appropriated funds and subject to the approval of the Governor, to develop and implement a plan for the integration of services and functions relating to eligibility determination and service delivery by health and human services agencies, the Texas Workforce Commission, and other agencies. 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(a), (b) and (d), Chapter 655, Acts of the 74th Legislature, Regular Session, 1995, as follows: (a) Deletes existing Subsection (a). Requires the Health and Human Services Commission (commission), in consultation and coordination with the Legislative Budget Board (LBB) as to the expenditure of appropriated funds and subject to the approval of the Governor, to develop and implement a plan for the integration of services and functions relating to eligibility determination and service delivery by health and human services agencies, the Texas Workforce Commission (TWC), and other agencies. Requires the plan to include a reengineering of eligibility determination business processes, streamlined service delivery, a unified and integrated process for the transition from welfare to work, and improved access to benefits and services for clients. Authorizes the commission, in developing and implementing the plan, to contract for appropriate professional and technical assistance, and shall also consult with agencies whose programs are included in the plan, including the Department of Human Services, the Department of Health, and TWC. Authorizes the commission, in developing and implementing the plan, to utilize the staff and resources of agencies whose programs are included in the plan. Requires such agencies, if requested, to cooperate with the commission to provide available staff and resources that will be subject to the direction of the commission. (b) Deletes text in reference to achieving at least a one percent savings under the integrated eligibility determination and service delivery system. Authorizes, rather than requires, the commission to use the resulting savings, subject to any spending limitation in the General Appropriations Act, to further develop the integrated system and to provide other health and human services. (d) Deletes existing Subsection (d). Authorizes the commission, upon receipt by the state of any necessary federal approval and subject to approval of LBB and the Governor, to contract for implementation of the plan or parts of the plan, if the commission determines that contracting may advance the objectives of Subsections (a) and (b). Authorizes the design, development, and operation of an automated data processing system to support the plan to be financed through the issuance of bonds or other obligations pursuant to Article 601d, V.T.C.S. SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE CHANGES Revises proposed relating clause. SECTION 1. Amends Section 9.12, Chapter 655, Acts of the 74th Legislature, Regular Session, 1995, to add revisions to Subsection (a) and to revise revisions to Subsections (b) and (d).