1-1                                   AN ACT

 1-2     relating to eligibility determination and service delivery of

 1-3     health and human services.

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

 1-5           SECTION 1.  Section 9.12, Chapter 655, Acts of the 74th

 1-6     Legislature, Regular Session, 1995, is amended by amending

 1-7     Subsections (a), (b), and (d) and adding Subsections (f) and (g) to

 1-8     read as follows:

 1-9           (a)  In consultation and coordination with the Texas

1-10     Integrated Enrollment Services Legislative Oversight Committee

1-11     established under Section 531.202, Government Code, the Health and

1-12     Human Services Commission, subject to the approval of the governor

1-13     and the Legislative Budget Board, shall develop and implement a

1-14     plan for the integration of services and functions relating to

1-15     eligibility determination and service delivery by health and human

1-16     services agencies, the Texas Workforce Commission, and other

1-17     agencies.  [Not later than September 1, 1996, the Health and Human

1-18     Services Commission, subject to the availability of funds to the

1-19     commission and to health and human services agencies, shall have

1-20     completed the development and substantial implementation of a plan

1-21     for an integrated eligibility determination and service delivery

1-22     system for health and human services at the local and regional

1-23     levels.]  The plan must include a reengineering of eligibility

1-24     determination business processes, streamlined service delivery, a

 2-1     unified and integrated process for the transition from welfare to

 2-2     work, and improved access to benefits and services for clients.  In

 2-3     developing and implementing the plan, the Health and Human Services

 2-4     Commission:

 2-5                 (1)  shall give priority to the design and development

 2-6     of computer hardware and software for and provide technical support

 2-7     relating to the integrated eligibility determination system;

 2-8                 (2)  shall consult with agencies whose programs are

 2-9     included in the plan, including the Texas Department of Human

2-10     Services, the Texas Department of Health, and the Texas Workforce

2-11     Commission;

2-12                 (3)  may contract for appropriate professional and

2-13     technical assistance; and

2-14                 (4)  may use the staff and resources of agencies whose

2-15     programs are included in the plan [shall specify the dates by which

2-16     all elements of the plan must be implemented].

2-17           (b)  The integrated eligibility determination and service

2-18     delivery system shall be developed and implemented to achieve

2-19     increased quality of and client access to services and [at least a

2-20     one-percent] savings in the cost of providing administrative and

2-21     other services and staff resulting from streamlining and

2-22     eliminating duplication of services.  The commission, subject to

2-23     any spending limitation prescribed in the General Appropriations

2-24     Act, may [shall] use the resulting savings to further develop the

2-25     integrated system and to provide other health and human services.

2-26           (d)  On receipt by the state of any necessary federal

2-27     approval and subject to the approval of the governor and the

 3-1     Legislative Budget Board [In consultation and coordination with the

 3-2     State Council on Competitive Government, the commission shall make

 3-3     and implement recommendations on services or functions of the

 3-4     integrated eligibility determination and service delivery system

 3-5     that could be provided more effectively through the use of

 3-6     competitive bidding or by contracting with local governments and

 3-7     other appropriate entities.  If the commission determines that

 3-8     private contracting may be effective], the commission may contract

 3-9     for implementation of all or part of the plan required by

3-10     Subsection (a) of this section if the commission determines that

3-11     contracting may advance the objectives of Subsections (a) and (b)

3-12     of this section and meets the criteria set out in the cost-benefit

3-13     analysis described in this subsection.  Before the awarding of a

3-14     contract, the commission shall provide a detailed cost-benefit

3-15     analysis to the governor, the Legislative Budget Board, and the

3-16     Texas Integrated Enrollment Services Legislative Oversight

3-17     Committee established under Section 531.202, Government Code.  The

3-18     analysis must demonstrate the cost-effectiveness of the plan,

3-19     mechanisms for monitoring performance under the plan, and specific

3-20     improvements to the service delivery system and client access made

3-21     by the plan.  The commission shall make the analysis available to

3-22     the public.  Within 10 days after the release of a request for

3-23     bids, proposals, offers, or other applicable expressions of

3-24     interest relating to the development or implementation of the plan

3-25     required by Subsection (a) of this section, the commission shall

3-26     hold a public hearing and receive public comment on the request.

3-27     The commission may coordinate with a legislative committee to hold

 4-1     the hearings [automate the determination of client eligibility by

 4-2     contracting with a private firm to conduct application processing].

 4-3           (f)  If requested by the Health and Human Services

 4-4     Commission, the agencies whose programs are included in the plan

 4-5     required by Subsection (a) of this section shall cooperate with the

 4-6     commission to provide available staff and resources that will be

 4-7     subject to the direction of the commission.

 4-8           (g)  The design, development, and operation of an automated

 4-9     data processing system to support the plan required by Subsection

4-10     (a)  of this section may be financed through the issuance of bonds

4-11     or other obligations under the Texas Public Finance Authority Act

4-12     (Article 601d, Vernon's Texas Civil Statutes).

4-13           SECTION 2.  Chapter 531, Government Code, is amended by

4-14     adding Subchapter D to read as follows:

4-15                    SUBCHAPTER D.  LEGISLATIVE OVERSIGHT

4-16           Sec. 531.201.  DEFINITION.  In this subchapter, "committee"

4-17     means the Texas Integrated Enrollment Services Legislative

4-18     Oversight Committee.

4-19           Sec. 531.202.  COMPOSITION OF COMMITTEE; PRESIDING OFFICER.

4-20     (a)  The committee is composed of:

4-21                 (1)  three members of the senate appointed by the

4-22     lieutenant governor; and

4-23                 (2)  three members of the house of representatives

4-24     appointed by the speaker of the house of representatives.

4-25           (b)  A member of the committee serves at the pleasure of the

4-26     appointing official.

4-27           (c)  The lieutenant governor and speaker of the house of

 5-1     representatives shall appoint the presiding officer of the

 5-2     committee on an alternating basis.  The presiding officer shall

 5-3     serve a two-year term expiring February 1 of each odd-numbered

 5-4     year.

 5-5           Sec. 531.203.  COMMITTEE POWERS AND DUTIES.  (a)  The

 5-6     committee shall:

 5-7                 (1)  meet at the call of the presiding officer;

 5-8                 (2)  receive information about rules proposed or

 5-9     adopted by the commission;

5-10                 (3)  review specific recommendations for legislation

5-11     proposed by the commission; and

5-12                 (4)  hold public hearings concerning the development

5-13     and implementation of the plan required by Section 9.12(a), Chapter

5-14     655, Acts of the 74th Legislature, Regular Session, 1995, in at

5-15     least four geographically diverse locations in the state.

5-16           (b)  The committee shall advise the commission in the

5-17     development of the plan and monitor the implementation and

5-18     efficiency of the Texas Integrated Enrollment Services.

5-19           (c)  The commission shall, at the committee's request,

5-20     provide reports and other information relating to the operation of

5-21     the integrated enrollment system.

5-22           (d)  The committee may use staff of standing committees in

5-23     the senate and house of representatives with appropriate

5-24     jurisdiction, the Department of Information Resources, the state

5-25     auditor, the Texas Legislative Council, and the Legislative Budget

5-26     Board in carrying out its responsibilities.

5-27           Sec. 531.204.  REPORT.  (a)  The committee shall report to

 6-1     the governor, lieutenant governor, and speaker of the house of

 6-2     representatives not later than December 31 of each year.

 6-3           (b)  The report must include:

 6-4                 (1)  identification of significant problems in the

 6-5     Texas Integrated Enrollment Services, with recommendations for

 6-6     action by the commissioner;

 6-7                 (2)  the status of the effectiveness of the Texas

 6-8     Integrated Enrollment Services in providing necessary services to

 6-9     the people of this state, with recommendations for any necessary

6-10     research; and

6-11                 (3)  recommendations for legislative action.

6-12           Sec. 531.205.  DURATION OF COMMITTEE.  The committee is

6-13     abolished September 1, 2002.

6-14           SECTION 3.  Sections 11(d) and 12, Chapter 885, Acts of the

6-15     74th Legislature, Regular Session, 1995, are repealed.

6-16           SECTION 4.  The importance of this legislation and the

6-17     crowded condition of the calendars in both houses create an

6-18     emergency and an imperative public necessity that the

6-19     constitutional rule requiring bills to be read on three several

6-20     days in each house be suspended, and this rule is hereby suspended,

6-21     and that this Act take effect and be in force from and after its

6-22     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2777 was passed by the House on May

         1, 1997, by a non-record vote; that the House refused to concur in

         Senate amendments to H.B. No. 2777 on May 22, 1997, and requested

         the appointment of a conference committee to consider the

         differences between the two houses; and that the House adopted the

         conference committee report on H.B.  No. 2777 on May 29, 1997, by

         the following vote:  Yeas 147, Nays 0, 1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2777 was passed by the Senate, with

         amendments, on May 20, 1997, by the following vote:  Yeas 31, Nays

         0; at the request of the House, the Senate appointed a conference

         committee to consider the differences between the two houses; and

         that the Senate adopted the conference committee report on H.B. No.

         2777 on May 30, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor