By Berlanga                                     H.B. No. 2913

      75R8729 CBH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the authority of the Health and Human Services

 1-3     Commission to administer and operate the Medicaid managed care

 1-4     program.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 531.021, Government Code, is amended to

 1-7     read as follows:

 1-8           Sec. 531.021.  ADMINISTRATION OF MEDICAID PROGRAM.  (a)  The

 1-9     commission is the state agency designated to administer federal

1-10     medical  assistance funds.

1-11           (b)  The commission is responsible for the administration and

1-12     operation of all aspects of the Medicaid managed care program,

1-13     including:

1-14                 (1)  awarding, monitoring, and managing contracts;

1-15                 (2)  determining fees, charges, and rates;

1-16                 (3)  making payments;

1-17                 (4)  identifying and preventing fraud; and

1-18                 (5)  adopting rules.

1-19           (c)  In administering and operating the managed care program,

1-20     the commission shall consult with and seek input from each health

1-21     and human services agency that operates part of the Medicaid

1-22     program.

1-23           SECTION 2.  (a)  In this section, "operating state agency"

1-24     means a state agency that operates part of the state Medicaid

 2-1     program.

 2-2           (b)  On January 1, 1998:

 2-3                 (1)  all funds, obligations, and contracts of an

 2-4     operating state agency related to the Medicaid managed care program

 2-5     are transferred to the Health and Human Services Commission;

 2-6                 (2)  all property and records in the custody of an

 2-7     operating state agency related to the Medicaid managed care program

 2-8     and all funds appropriated by the legislature to an operating state

 2-9     agency for the Medicaid managed care program are transferred to the

2-10     Health and Human Services Commission; and

2-11                 (3)  all employees of an operating state agency who

2-12     perform Medicaid managed care duties become employees of the Health

2-13     and Human Services Commission, to be assigned duties by the

2-14     commissioner of health and human services.

2-15           (c)  Notwithstanding Subsection (b) of this section, if the

2-16     Health and Human Services Commission enters into an interagency

2-17     agreement with an operating state agency to perform eligibility

2-18     determination or another aspect of the Medicaid managed care

2-19     program, the agency shall retain the funds, obligations, contracts,

2-20     property, records, and employees necessary to perform that function

2-21     as determined by the commissioner of health and human services.

2-22           (d)  A rule or form adopted by an operating state agency that

2-23     relates to the Medicaid managed care program is a rule or form of

2-24     the Health and Human Services Commission and remains in effect

2-25     until altered by the commission.  The secretary of state is

2-26     authorized to adopt rules as necessary to expedite the

2-27     implementation of this subsection.

 3-1           (e)  A reference in law to an operating state agency that

 3-2     relates to the Medicaid managed care program means the Health and

 3-3     Human Services Commission.

 3-4           SECTION 3.  (a)  The commissioner of health and human

 3-5     services shall oversee and assist in the transfer of powers,

 3-6     duties, functions,  programs, and activities prescribed by this

 3-7     Act.

 3-8           (b)  The commissioner of health and human services shall

 3-9     determine for each power, duty, function, program, or activity

3-10     scheduled for transfer:

3-11                 (1)  the relevant agency actions that constitute each

3-12     power, duty, function, program, or activity;

3-13                 (2)  the relevant records, property, and equipment used

3-14     by a state agency for each power, duty, function, program, or

3-15     activity;

3-16                 (3)  the state agency employees whose duties involve a

3-17     power, duty, function, program, or activity;

3-18                 (4)  state agency funds and obligations that are

3-19     related to the power, duty, function, program, or activity,

3-20     including indirect administration; and

3-21                 (5)  the funds, obligations, contracts, property,

3-22     records, and employees necessary to perform a Medicaid managed care

3-23     function under an interagency agreement.

3-24           (c)  Based on the determinations made under Subsection (b) of

3-25     this section, the commissioner of health and human services shall

3-26     assist the agencies in transferring powers, duties, functions,

3-27     programs, activities, records, equipment, property, funds,

 4-1     obligations, and employees in accordance with the transfer

 4-2     schedule.

 4-3           (d)  The commissioner of health and human services shall file

 4-4     any federal plan changes required by this Act.

 4-5           SECTION 4.  (a)  The transfer of  powers, duties, functions,

 4-6     programs, and activities under this Act does not affect or impair

 4-7     any act done, any obligation, right, order, license, permit, rule,

 4-8     criterion, standard, or requirement existing, any investigation

 4-9     begun, or any penalty accrued under former law, and that law

4-10     remains in effect for any action concerning those matters.

4-11           (b)  An action brought or proceeding commenced before the

4-12     effective date of this Act, including a contested case or a remand

4-13     of an action or proceeding by a reviewing court, is governed by the

4-14     law and rules applicable to the action or proceeding before the

4-15     effective date of this Act.

4-16           SECTION 5.  This Act takes effect September 1, 1997.

4-17           SECTION 6.  The importance of this legislation and the

4-18     crowded condition of the calendars in both houses create an

4-19     emergency and an imperative public necessity that the

4-20     constitutional rule requiring bills to be read on three several

4-21     days in each house be suspended, and this rule is hereby suspended.