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).