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.