1-1                                   AN ACT

 1-2     relating to the continuation and functions of the Texas Youth

 1-3     Commission.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 61.012(a), Human Resources Code, is

 1-6     amended to read as follows:

 1-7           (a)  The governing board of the Texas Youth Commission

 1-8     consists of six members appointed by the governor with the consent

 1-9     of the senate.  Appointments to the board shall be made without

1-10     regard to the race, color, disability [handicap], sex, religion,

1-11     age, or national origin of the appointees.

1-12           SECTION 2.  Section 61.0121, Human Resources Code, is amended

1-13     to read as follows:

1-14           Sec. 61.0121.  QUALIFICATIONS FOR BOARD MEMBERS AND

1-15     EMPLOYEES.  (a)  A person is not eligible for appointment to the

1-16     board if the person or the person's spouse:

1-17                 (1)  is employed by or participates in the management

1-18     of a business entity or other organization receiving funds from the

1-19     commission;

1-20                 (2)  owns or controls, directly or indirectly, more

1-21     than a 10 percent interest in a business entity or other

1-22     organization receiving funds from the commission; or

1-23                 (3)  uses or receives a substantial amount of tangible

 2-1     goods, services, or funds from the commission, other than

 2-2     compensation or reimbursement authorized by law for board

 2-3     membership, attendance, or expenses.

 2-4           (b)  An officer, employee, or paid consultant of a Texas

 2-5     trade association in the field of criminal or juvenile justice may

 2-6     not be a member of the board or an employee of the commission who

 2-7     is exempt from the state's position classification plan or is

 2-8     compensated at or above the amount prescribed by the General

 2-9     Appropriations Act for step 1, salary group 17, of the position

2-10     classification salary schedule.

2-11           (c)  A person who is the spouse of an officer, manager, or

2-12     paid consultant of a Texas trade association in the field of

2-13     criminal justice or juvenile justice may not be a member of the

2-14     board and may not be an employee of the commission who is exempt

2-15     from the state's position classification plan or is compensated at

2-16     or above the amount prescribed by the General Appropriations Act

2-17     for step 1, salary group 17, of the position classification salary

2-18     schedule.

2-19           (d)  [A person who is or is the spouse of an officer,

2-20     employee, or paid consultant of a trade association in the field of

2-21     criminal or juvenile justice may not be a member of the board.]

2-22     For the purposes [purpose] of this section, [subsection] a Texas

2-23     trade association is a nonprofit, cooperative, and  voluntarily

2-24     joined association of business or professional competitors in this

2-25     state designed to assist its members and its industry or

 3-1     profession in dealing with mutual business or professional problems

 3-2     and in promoting their common interest [interests].

 3-3           (e) [(c)]  A person may not serve as a member of the board or

 3-4     act as the general counsel to the board or the commission if the

 3-5     person [who] is required to register as a lobbyist under Chapter

 3-6     305, Government Code, because [by virtue] of the person's

 3-7     activities for  compensation [in or] on behalf of a profession

 3-8     related to the operation of the commission[, may not serve as a

 3-9     member of the board].

3-10           SECTION 3.  Subchapter B, Chapter 61, Human Resources Code,

3-11     is amended by adding Section 61.0122 to read as follows:

3-12           Sec. 61.0122.  BOARD MEMBER TRAINING.  (a)  To be eligible to

3-13     take office as a member of the board, a person appointed to the

3-14     board must complete at least one course of a training program that

3-15     complies with this section.

3-16           (b)  The training program must provide  information to the

3-17     person regarding:

3-18                 (1)  the enabling legislation that created the

3-19     commission;

3-20                 (2)  the programs operated by the commission;

3-21                 (3)  the role and functions of the commission;

3-22                 (4)  the rules of the commission with an emphasis on

3-23     the rules that relate to disciplinary and investigatory authority;

3-24                 (5)  the current budget for the commission;

3-25                 (6)  the results of the most recent formal audit of the

 4-1     commission;

 4-2                 (7)  the requirements of the:

 4-3                       (A)  open meetings law, Chapter 551, Government

 4-4     Code;

 4-5                       (B)  open records law, Chapter 552, Government

 4-6     Code; and

 4-7                       (C)  administrative procedure law, Chapter 2001,

 4-8     Government Code;

 4-9                 (8)  the requirements of the conflict of interests laws

4-10     and other laws relating to public officials; and

4-11                 (9)  any applicable ethics policies adopted by the

4-12     commission or the Texas Ethics Commission.

4-13           (c)  A person appointed to the board is entitled to

4-14     reimbursement for travel expenses incurred in attending the

4-15     training program, as provided by the General Appropriations Act and

4-16     as if the person were a member of the board.

4-17           SECTION 4.  Section 61.013(a), Human Resources Code, is

4-18     amended to read as follows:

4-19           (a)  The governor shall designate a member of the board as

4-20     the  chairman of the board to serve in that capacity at the

4-21     pleasure of the governor. [The board shall elect one member

4-22     presiding officer, who shall preside over meetings of the

4-23     commission.]

4-24           SECTION 5.  Section 61.0151(c), Human Resources Code, is

4-25     amended to read as follows:

 5-1           (c)  If the executive director has knowledge that a potential

 5-2     ground for removal exists, the executive director shall notify the

 5-3     chairman of the board of the potential ground.   The chairman of

 5-4     the board shall then notify the governor and the attorney general

 5-5     that a potential ground for  removal exists.  If the potential

 5-6     ground for removal involves the chairman, the executive director

 5-7     shall notify the next highest ranking officer of the board, who

 5-8     shall notify the governor and the attorney general that a potential

 5-9     ground for removal exists.

5-10           SECTION 6.  Section 61.020, Human Resources Code, is amended

5-11     to read as follows:

5-12           Sec. 61.020.  SUNSET PROVISION.  The Texas Youth Commission

5-13     is subject to Chapter 325, Government Code (Texas Sunset Act).

5-14     Unless continued in existence as provided by that chapter, the

5-15     commission is abolished and this chapter expires September 1, 2009

5-16     [1997].

5-17           SECTION 7.  Subchapter B, Chapter 61, Human Resources Code,

5-18     is amended by adding Section 61.022 to read as follows:

5-19           Sec. 61.022.  ACCESSIBILITY TO PROGRAMS AND FACILITIES.  The

5-20     commission shall comply with federal and state laws related to

5-21     program and facility accessibility.  The executive director shall

5-22     also prepare and maintain a written plan that describes how a

5-23     person who does not speak English can be provided reasonable access

5-24     to the commission's programs and services.

5-25           SECTION 8.  Section 61.033, Human Resources Code, is amended

 6-1     to read as follows:

 6-2           Sec. 61.033.  ANNUAL FINANCIAL REPORT [REPORT TO GOVERNOR,

 6-3     LEGISLATURE].   The commission shall prepare [file] annually [with

 6-4     the governor and  the presiding officer of each house of the

 6-5     legislature] a complete and detailed written report accounting for

 6-6     all funds received and disbursed by the commission during the

 6-7     preceding fiscal year.  The annual report must meet the reporting

 6-8     requirements applicable to financial reporting [form of the annual

 6-9     report and  the reporting time are as] provided in the General

6-10     Appropriations Act.

6-11           SECTION 9.  Section 61.0351, Human Resources Code, is amended

6-12     to read as follows:

6-13           Sec. 61.0351.  PROFESSIONAL INFORMATION FOR MEMBERS AND

6-14     EMPLOYEES.   The executive director or the executive director's

6-15     designee [commission] shall provide to [inform its] members of the

6-16     board and to commission employees, as often as is necessary,

6-17     information regarding their qualification [of:]

6-18                 [(1)  the qualifications] for office or employment

6-19     under [prescribed by] this chapter[;]  and

6-20                 [(2)]  their responsibilities under applicable laws

6-21     relating to standards of conduct for state officers or employees.

6-22           SECTION 10.  Section 61.0352, Human Resources Code, is

6-23     amended to read as follows:

6-24           Sec. 61.0352.  DIVISION OF RESPONSIBILITY.   The board shall

6-25     develop and implement [adopt] policies that clearly separate the

 7-1     policymaking [define the respective] responsibilities of the board

 7-2     and the management responsibilities of the executive director and

 7-3     the staff of the commission.

 7-4           SECTION 11.  Section 61.0353, Human Resources Code, is

 7-5     amended to read as follows:

 7-6           Sec. 61.0353.  INTRA-AGENCY CAREER LADDER PROGRAM.   The

 7-7     executive director or the executive director's designee

 7-8     [commission] shall develop an intra-agency [intraagency] career

 7-9     ladder program that addresses opportunities for mobility and

7-10     advancement for employees within the commission.  The program[, one

7-11     part of which] shall require intra-agency [the intraagency] posting

7-12     of all positions[,] concurrently  with any public posting[, of all

7-13     nonentry level positions].

7-14           SECTION 12.  Section 61.0354, Human Resources Code, is

7-15     amended to read as follows:

7-16           Sec. 61.0354.  JOB PERFORMANCE EVALUATIONS.  The executive

7-17     director or the executive director's designee [commission] shall

7-18     develop a system  of annual performance evaluations that are based

7-19     on documented employee performance [under which the job performance

7-20     of commission employees  is evaluated annually].  All merit pay for

7-21     commission employees must be based on the system established under

7-22     this section.

7-23           SECTION 13.  Section 61.0355, Human Resources Code, is

7-24     amended to read as follows:

7-25           Sec. 61.0355.  EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.

 8-1     (a) The executive director or the executive director's designee

 8-2     [commission] shall prepare and  maintain a written policy statement

 8-3     to assure implementation of a program of equal employment

 8-4     opportunity under [by] which all personnel transactions are made

 8-5     without regard to race, color, disability [handicap], sex,

 8-6     religion, age, or national origin.

 8-7           [(b)]  The policy statement shall include:

 8-8                 (1)  personnel policies, including policies relating to

 8-9     recruitment, evaluation, selection, appointment, training, and

8-10     promotion of personnel that are in compliance with requirements of

8-11     Chapter 21, Labor Code;

8-12                 (2)  a comprehensive analysis of the commission's work

8-13     force that meets federal or state laws, rules, and regulations and

8-14     instructions promulgated directly from those laws, rules, and

8-15     regulations [guidelines];

8-16                 (3)  procedures by which a determination can be made

8-17     about the extent of underuse [of significant underutilization] in

8-18     the commission's  work force of all persons of whom federal or

8-19     state laws, rules, and regulations and instructions promulgated

8-20     directly from those laws, rules, and regulations [guidelines]

8-21     encourage a more equitable balance; and

8-22                 (4)  reasonable methods to appropriately address those

8-23     areas of underuse [significant underutilization in the commission's

8-24     work force of all  persons of whom federal or state guidelines

8-25     encourage a more equitable balance].

 9-1           (b)  A [(c) The] policy statement prepared under Subsection

 9-2     (a) must [statements shall be filed with the governor's office,]

 9-3     cover an  annual period, [and] be updated [at least] annually, be

 9-4     reviewed by the Commission on Human Rights for compliance with

 9-5     Subsection (a)(1), and be filed with the governor's office.

 9-6           (c)  The governor's office shall deliver [develop] a biennial

 9-7     report  to the legislature based on the information received under

 9-8     Subsection (b) [submitted].  The report may be made separately or

 9-9     as a part of other biennial reports made to the legislature.

9-10           SECTION 14.  Section 61.0422, Human Resources Code, is

9-11     amended to read as follows:

9-12           Sec. 61.0422. COMPLAINTS REGARDING SERVICES.  (a) The

9-13     commission shall keep a [an information] file about each written

9-14     complaint filed with the commission by a person, other than a child

9-15     receiving services from the commission or the child's parent or

9-16     guardian, that the commission has authority to resolve [relates to

9-17     services provided by the commission].  The commission shall provide

9-18     to the person filing the complaint and the persons or entities

9-19     complained about the commission's policies and procedures

9-20     pertaining to complaint investigation and resolution.  The [(b) If

9-21     a written complaint relating to the commission is filed with the

9-22     commission, the] commission, at least [as frequently as] quarterly

9-23     and until final disposition of the complaint, shall notify the

9-24     person filing the complaint and the persons or entities complained

9-25     about [complainant] of the status of the complaint unless the

 10-1    notice would jeopardize an undercover investigation.

 10-2          (b)  The commission shall keep information about each file

 10-3    required by Subsection (a).  The information must include:

 10-4                (1)  the date the complaint is received;

 10-5                (2)  the name of the complainant;

 10-6                (3)  the subject matter of the complaint;

 10-7                (4)  a record of all persons contacted in relation to

 10-8    the complaint;

 10-9                (5)  a summary of the results of the review or

10-10    investigation of the complaint; and

10-11                (6)  for complaints for which the commission took no

10-12    action, an explanation of the reason the complaint was closed

10-13    without action.

10-14          (c)  The commission shall keep information about each written

10-15    complaint filed with the commission by a child receiving services

10-16    from the commission or the child's parent or guardian.  The

10-17    information must include:

10-18                (1)  the subject matter of the complaint;

10-19                (2)  a summary of the results of the review or

10-20    investigation of the complaint; and

10-21                (3)  the period of time between the date the complaint

10-22    is received and the date the complaint is closed.

10-23          SECTION 15.  Section 61.0423, Human Resources Code, is

10-24    amended to read as follows:

10-25          Sec. 61.0423.  PUBLIC HEARINGS.   The board shall develop and

 11-1    implement [adopt] policies that [will] provide the public with a

 11-2    reasonable  opportunity to appear before the board [commission] and

 11-3    to speak on any issue under the jurisdiction of the commission.

 11-4          SECTION 16.  Subchapter C, Chapter 61, Human Resources Code,

 11-5    is amended by adding Sections 61.051-61.053 to read as follows:

 11-6          Sec. 61.051.  CLIENT SERVICE CONTRACT STANDARDS.  In each

 11-7    contract for the purchase of residential program-related client

 11-8    services, the commission shall include:

 11-9                (1)  clearly defined contract goals, outputs, and

11-10    measurable outcomes that relate directly to program objectives;

11-11                (2)  clearly defined sanctions or penalties for failure

11-12    to comply with or perform contract terms or conditions; and

11-13                (3)  clearly specified accounting, reporting, and

11-14    auditing requirements applicable to money received under the

11-15    contract.

11-16          Sec. 61.052.  CONTRACT MONITORING.  The commission shall

11-17    establish a formal program to monitor residential program-related

11-18    client services contracts made by the commission.  The commission

11-19    must:

11-20                (1)  monitor compliance with financial and performance

11-21    requirements using a risk assessment methodology; and

11-22                (2)  obtain and evaluate program cost information to

11-23    ensure that each cost, including an administrative cost, is

11-24    reasonable and necessary to achieve program objectives.

11-25          Sec. 61.053.  MEDICAID BENEFITS.   The commission shall apply

 12-1    for benefits under the federal Medicaid program if application is

 12-2    cost effective in reducing health care costs incurred by the

 12-3    commission.

 12-4          SECTION 17.  Sections 61.035(c) and (d), Human Resources

 12-5    Code, are repealed.

 12-6          SECTION 18.  The changes in law made by this Act in the

 12-7    qualifications of, and the prohibitions applying to, members of the

 12-8    governing board of the Texas Youth Commission do not affect the

 12-9    entitlement of a member serving on the board immediately before

12-10    September 1, 1997, to continue to carry out the functions of the

12-11    board for the remainder of the member's term.  The changes in law

12-12    apply only to a member appointed on or after September 1, 1997.

12-13    This Act does not prohibit a person who is a member of the board on

12-14    September 1, 1997, from being reappointed to the board if the

12-15    person has the qualifications required for a member under Chapter

12-16    61, Human Resources Code, as amended by this Act.

12-17          SECTION 19.  This Act takes effect September 1, 1997.

12-18          SECTION 20.  The importance of this legislation and the

12-19    crowded condition of the calendars in both houses create an

12-20    emergency and an imperative public necessity that the

12-21    constitutional rule requiring bills to be read on three several

12-22    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2074 was passed by the House on April

         9, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 2074 on May 14, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2074 was passed by the Senate, with

         amendments, on May 12, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor