Amend CSHB 2641 as follows: Strike all text below the
enacting clause and           replace with the following:
          SECTION 1. Section 531.001(4), Government Code, is
amended to read as           follows:
          (4)"Health and human services agencies" includes the:
          (A) Children's Trust Fund of Texas Council;
          (B) Interagency Council on Early Childhood Intervention
Services;
          (C) (B)  Texas Department on Aging; (D) (C)  Texas
Commission on           Alcohol and Drug Abuse;
          (E) (D)  Texas Commission for the Blind;
          (F) Texas Cancer Council;
          (G) (E)  Texas Commission for the Deaf and Hard of
Hearing;
          (H) (F)  Texas Department of Health;
          (I) (G)  Texas Department of Human Services;
          (J) (H)  Texas Juvenile Probation Commission;
          (K) (I)  Texas Department of Mental Health and Mental
Retardation;
          (L) (J)  Texas Rehabilitation Commission; and
          (M) (K)  Department of Protective and Regulatory
Services.
          SECTION 2. Subchapter A, Chapter 531, Government Code, is
amended by           adding Sections 531.0055 and 531.0056 to read
as follows:
          Sec. 531.0055. COMMISSIONER: RESPONSIBILITY RELATING TO
HEALTH           AND HUMAN SERVICES AGENCIES. (a) In this section:
          (1) "Agency director" means the director, executive
director, or commissioner of a health and human services agency.
          (2) "Policymaking body" means the board or commission
with policymaking authority over a health and human services
agency.
          (b) Notwithstanding any other law, the commissioner shall
manage and direct         the operations of each health and human
services agency to implement the           policies established by
the commissioner in consultation with each agency's
policymaking body and shall supervise and direct the activities of
each           agency director.
          (c) The authority of the commissioner with regard to each
health and human           services agency includes authority to:
          (1) establish policy for the agency;
          (2) establish priorities across services programs
provided by the agency and
          to coordinate and consolidate these programs as necessary
to:
          (A) achieve the goals of the services programs as
efficiently as possible; and
          (B) eliminate duplication of services;
          (3) manage the daily operations of the agency, including
the organization and           management of the agency and agency
operating procedures;
          (4) allocate resources within the agency, including use
of money appropriated           to the agency; and
          (5) establish and implement personnel and employment
policies.
          (d) The commissioner may adopt rules to implement the
commissioner's           authority under this section.
          (e) The commissioner and each agency director shall enter
into a           memorandum of understanding that clearly defines
the responsibilities of the           agency director and the
commissioner.
          (f) The commissioner shall establish a procedure under
which a policymaking           body may recommend and comment on
policies governing the delivery of           services to persons
who are served by the health and human services agency
and the rights and duties of persons who are served or regulated by
the           agency. Subject to Section 531.0056, each
policymaking body shall adopt           rules as authorized by law.
The commissioner and each policymaking body           shall enter
into a memorandum of understanding that clearly defines the
authority of the policymaking body and the authority of the
commissioner.
          Sec. 531.0056. AUTHORITY OVER RULEMAKING AT HEALTH AND
HUMAN           SERVICES AGENCY. (a) Notwithstanding any other law,
a health and human           services agency may not publish notice
of the agency's intention to adopt a           rule, as required by
Sections 2001.023 and 2001.024, before the rule has           been
approved by the commissioner. A rule adopted in violation of this
section           is void.
          (b) The commissioner may waive the requirement of this
section as necessary           to permit emergency rulemaking in
accordance with Section 2001.034.
          SECTION 3. Subchapter B, Chapter 531, Government Code, is
amended by           adding Sections 531.0246, 531.0247, and
531.0248 to read as follows:
          Sec. 531.0246. STATE AND REGIONAL CONSOLIDATION OF
          ADMINISTRATIVE SUPPORT SERVICES. (a) The commission shall
require           the Texas Department of Health, the Texas
Department of Human Services,           the Department of
Protective and Regulatory Services, and the Texas
Rehabilitation Commission, under the direction of the commission,
to           consolidate among the agencies all of the agencies'
state and regional           administrative support services. The
consolidation shall include consolidating           each agency's
support services, including clerical and administrative support
services and purchasing support services, with support services
provided to            or by the other agencies. The consolidation
may include, to the extent           appropriate, requiring the
colocation of all or a portion of one agency's           employees
and programs in the same building with one or more of the other
agencies' employees or programs or at a location near or adjacent
to the           location of one of the other agencies.
          (b) The commission shall adopt rules and prescribe
timelines for the           consolidation.
          (c) As part of the consolidation, the commission shall
identify the           administrative support services to be
consolidated, specify the location at           which an identified
service that is not provided by a private vendor will be
performed, and prescribe performance specifications for the
consolidated           services.
          (d) The commission shall establish planning and working
groups composed of           commission personnel and personnel
from each of the affected agencies to           help plan and
implement the consolidation and to advise the commission
regarding its duties under Subsection (c).
          (e) The Health and Human Services Commission, in
coordination with the           Texas Department of Mental Health
and Mental Retardation, shall evaluate the           current and
long-term costs associated with serving in-patient psychiatric
needs of persons living in counties now served by the Austin State
Hospital,         the San Antonio State Hospital, and the Kerrville
State Hospital. This  plants           and other long-term asset
management issues associated with the operation           of the
hospitals, as well as other issues associated with quality
psychiatric           care. After such determination is made, the
Health and Human Services           Commission shall begin to take
action to influence the utilization of these           state
hospitals in order to ensure efficient service delivery.
          Sec. 531.0247. STATE AND REGIONAL CONSOLIDATION OF
INFORMATION RESOURCES SERVICES. (a) The commission shall require
each health and human services agency, under the direction of the
commission, to consolidate among the agencies all of the agencies'
state and           regional information resources services. The
consolidation shall include           consolidating each agency's
information resources support services and           information
resources purchasing support services with services provided to or
by the other agencies. The consolidation may include, to the extent
          appropriate, requiring the colocation of all or a portion
of one agency's           employees or information resources
hardware in the same building with one or           more of the
other agencies' employees or hardware or at a location near or
adjacent to the location of one of the other agencies.
          (b) The commission shall adopt rules and prescribe
timelines for the           consolidation.
          (c) As part of the consolidation, the commission shall
identify the information           resources services to be
consolidated, specify the location at which an           identified
service that is not provided by a private vendor will be performed,
and           prescribe performance specifications for the
consolidated services.
          (d) The commission shall establish planning and working
groups composed of           commission personnel and personnel
from each of the affected            agencies to help plan and
implement the consolidation and to advise the           commission
regarding its duties under Subsection (c).
          Sec. 531.0248. STATE AND REGIONAL CONSOLIDATION OF
ADMINISTRATIVE HEARINGS FUNCTIONS. (a) The commission shall require
          the Texas Department of Health, the Texas Department of
Human Services,           and the Texas Department of Mental Health
and Mental Retardation, under           the direction of the
commission, to consolidate the administrative hearings
functions conducted within each agency.
          (b) The consolidation shall include consolidating each
agency's:
          (1) pool of examiners or judges;
          (2) pool of attorneys assigned to administrative hearings
functions; and
          (3) docketing and related administrative support
services.
          (c) The commission shall adopt rules and prescribe
timelines for the           consolidation. To the extent feasible
and not inconsistent with law, the rules           shall require
the establishment of uniform hearing processes to facilitate
consolidation.
          (d) The commission shall establish planning and working
groups composed of           commission personnel and personnel
from each of the affected agencies to           help plan and
implement the consolidation and to advise the commission
regarding its duties under this section.
          (e) This section does not apply to administrative
hearings conducted by the           State Office of Administrative
Hearings.
          SECTION 4. Sections 531.0271 and 531.028, Government
Code, are           amended to read as follows:
          Sec.531.0271. TRANSFER OF FUNDS AMONG HEALTH AND HUMAN
SERVICES AGENCIES OPERATING BUDGETS. The commission may,
within the limits established by and subject to (a) In addition to
the provisions           of  the General Appropriations Act,
transfer amounts appropriated to health           and human
services agencies among the agencies to:
          (1) enhance the receipt of federal money under the
federal funds management           system established under Section
531.028;
          (2) enhance the delivery of health and human services in
the state; and
          (3) accomplish the coordination and consolidation of
health and human           services programs in accordance with
Section 531.0055 and the coordinated           strategic plan for
health and human services the commission shall review and
comment on.
          (1) the annual operating budget of each health and human
services agency,           and
          (2) the transfer of funds between budget strategies made
by each health and
          human services agency before that transfer.
          (b) The commission shall issue a quarterly report
regarding the projected           expenditures by budget strategy
of each health and human services agency           compared to each
agency's operating budget .
          Sec. 531.028. MANAGEMENT AND DISTRIBUTION OF FEDERAL
FUNDS.           The commissioner shall:
          (1) request budget execution for the transfer of funds
from one agency to           another;
          (2)  establish a federal health and human services
funds management           system and maximize the availability of
those funds; and
          (2) implement (3) review and comment on  health and
human services           agency formulas for the distribution of
funds to ensure that the formulas, to           the extent
permitted by federal law, consider such need factors as client
base, population, and economic and geographic factors within the
regions of           the state.
          SECTION 5. Sections 21.004(a) and (b), Human Resources
Code, are           amended to read as follows:
          (a) The Commissioner of Human Services is the executive
and administrative           officer of the department. The
commissioner exercises all rights, powers, and           duties
imposed or conferred by law on the department unless the right,
power,           or duty is specifically delegated by the
commissioner of health and human           services board  to the
department's agents or employees.
          (b) The commissioner is appointed by the commissioner of
health and human           services board  with the advice of the
board and the approval of the governor.           The commissioner
and  serves at the pleasure of the commissioner of health
and human services board .
          SECTION 6. Chapter 22, Human Resources Code, is amended
by adding           Section 22.0001 to read as follows:
          Sec. 22.0001. POWERS AND DUTIES OF COMMISSIONER OF HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services           has the powers and duties relating to the board
and commissioner as provided           by Sections 531.0055 and
531.0056, Government Code. To the extent a           power of duty
given to the board or commissioner by this title or another law
conflicts with Section 531.0055 or 531.0056, Government Code,
Section           531.0055 or 531.0056 controls.
          SECTION 7. Section 40.027, Human Resources Code, is
amended to read as           follows:
          Sec. 40.027. EXECUTIVE DIRECTOR. (a) The commissioner of
health and           human services shall appoint board shall
employ  the executive director with           the advice of the
board and the approval of the governor. The executive director
serves at the pleasure of the commissioner board .
          (b) The executive director is the executive head of the
department. The           executive director shall perform the
duties assigned by the commissioner of           health and human
services board  and state law.
          SECTION 8. Subchapter C, Chapter 40, Human Resources
Code, is amended           by adding Section 40.0505 to read as
follows:
          Sec. 40.0505. POWERS AND DUTIES OF COMMISSIONER OF HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services           has the powers and the duties relating to the
board and executive director as           provided by Sections
531.0055 and 531.0056, Government Code. To the           extent a
power or duty given to the board or executive director by this
chapter           or another law conflicts with Section 531.0055 or
531.0056, Government           Code, Section 531.0055 or 531.0056
controls.
          SECTION 9. Chapter 73, Human Resources Code, is amended
by adding           Section 73.0045 to read as follows:
          Sec. 73.0045. POWERS AND DUTIES OF COMMISSIONER OF HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services            has the powers and duties relating to the board
and the executive director of           the board as provided by
Sections 531.0055 and 531.0056, Government Code.           To the
extent a power or duty given to the board or executive director by
this           chapter or another law conflicts with Section
531.0055 or 531.0056,           Government Code, Section 531.0055
or 531.0056 controls.
          SECTION 10. Sections 73.0052(b) and (c), Human Resources
Code, are           amended to read as follows:
          (b) The commissioner of health and human services shall
appoint board shall           employ  an executive director with
the advice of the board and the approval of           the governor.
The executive director serves at the pleasure of the
commissioner. The , and the  executive director shall establish
necessary           administrative units, and hire other necessary
employees.
          (c) Utilizing established standards, the commissioner of
health and human           services board  shall evaluate the
performance of the executive director           annually.
          SECTION 11. Chapter 74, Human Resources Code, is amended
by adding           Sections 74.0035 and 74.0036 to read as
follows:
          Sec. 74.0035. EXECUTIVE DIRECTOR. The commissioner of
health and           human services shall appoint the executive
director of the council with the           advice of the council
and the approval of the governor. The executive director
serves at the pleasure of the commissioner.
          Sec. 74.0036. POWERS AND DUTIES OF COMMISSIONER OF HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the council and the
executive director as
          provided by Sections 531.0055 and 531.0056, Government
Code. To the
          extent a power or duty given to the council or the
executive director of the
          council by this chapter or another law conflicts with
Section 531.0055 or
          531.0056, Government Code, Section 531.0055 or 531.0056
controls.
          SECTION 12. Chapter 81, Human Resources Code, is amended
by adding
          Section 81.0055 to read as follows:
          Sec. 81.0055. POWERS AND DUTIES OF COMMISSIONER OF HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the commission and
the executive
          director of the commission as provided by Sections
531.0055 and 531.0056,
          Government Code. To the extent a power or duty given to
the commission or
          executive director by this chapter or another law
conflicts with Section
          531.0055 or 531.0056, Government Code, Section 531.0055
or 531.0056
          controls.
          SECTION 13. Sections 81.008(a) and (b), Human Resources
Code, are
          amended to read as follows:
          (a) The commissioner of health and human services
commission  shall
          appoint an executive director with the advice of the
commission and the
          approval of the governor. The executive director serves
at the pleasure of the
          commissioner.
          (b) In selecting an executive director, the commissioner
of health and human
          services commission  shall give preference to a deaf or
hard of hearing
          person.
          SECTION 14. Sections 91.012(a), (b), and (d), Human
Resources Code, are
          amended to read as follows:
          (a) The commissioner of health and human services
commission  shall
          annually  appoint an executive director with the advice
of the commission
          and the approval of the governor. The executive director
serves at the pleasure
          of the commissioner.
          (b) The commissioner of health and human services
commission  shall
          select the executive director, according to established
personnel standards,
          on the basis of education, training, experience, and
demonstrated ability.
          (d) The On commission approval, the  executive
director:
          (1) shall appoint personnel necessary to efficiently
accomplish commission
          purposes;
          (2) may delegate to an employee a power of the executive
director except the
          power to adopt rules or appoint personnel;
          (3) shall establish appropriate administrative units
within commission
          programs;
          (4) may accept and use gifts and grants to the commission
to carry out the
          purposes of this title, if the commission determines that
the conditions of the
          gift or grant are consistent with this title; and
          (5) may take other actions that the executive director
considers necessary or
          appropriate to carry out commission purposes.
          SECTION 15. Subchapter C, Chapter 91, Human Resources
Code, is
          amended by adding Section 91.0205 to read as follows:
          Sec. 91.0205. POWERS AND DUTIES OF COMMISSIONER OF HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the commission and
executive director
          as provided by Sections 531.0055 and 531.0056, Government
Code. To the
          extent a power or duty given to the commission or
executive director by this
          chapter or another law conflicts with Section 531.0055 or
531.0056,
          Government Code, Section 531.0055 or 531.0056 controls.
          SECTION 16. Section 101.004(a), Human Resources Code, is
amended to
          read as follows:
          (a) The commissioner of health and human services board
 shall appoint an
          executive director of aging with the advice of the board
and the approval of the
          governor. The executive director shall discharge all
executive and
          administrative functions of the department. The executive
director must be a
          person with executive ability and experience in the area
of aging. The
          executive director serves at the pleasure of the
commissioner board .
          SECTION 17. Subchapter B, Chapter 101, Human Resources
Code, is
          amended by adding Section 101.0205 to read as follows:
          Sec. 101.0205. POWERS AND DUTIES OF COMMISSIONER OF
HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the board and
executive director as
          provided by Sections 531.0055 and 531.0056,Government
Code. To the extent
          a power or duty given to the board or executive director
by this chapter or
          another law conflicts with Section 531.0055 or 531.0056,
Government Code,
          Section 531.0055 or 531.0056 controls.
          SECTION 18. Section 111.017, Human Resources Code, is
amended to read
          as follows:
          Sec. 111.017. COMMISSIONER. This chapter is administered
by the
          commissioner under operational policies established by
the commissioner of
          health and human services board . The commissioner is
appointed by the
          commissioner of health and human services board , with
the advice of the
          board and the approval of the governor, on the basis of
education, training,
          experience, and demonstrated ability. The commissioner
serves at the
          pleasure of the commissioner of health and human
services. The
          commissioner serves as board and is  secretary to the
board, as well as
          chief administrative officer of the agency.
          SECTION 19. Subchapter C, Chapter 111, Human Resources
Code, is
          amended by adding Section 111.0505 to read as follows:
          Sec. 111.0505. POWERS AND DUTIES OF COMMISSIONER OF
HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the commission and
commissioner as
          provided by Sections 531.0055 and 531.0056, Government
Code. To the
          extent a power or duty given to the commission or
commissioner by this
          chapter or another law conflicts with Section 531.0055 or
531.0056,
          Government Code, Section 531.0055 or 531.0056 controls.
          SECTION 20. Section 141.020(a), Human Resources Code, is
amended to
          read as follows:
          (a) The commissioner of health and human services shall
appoint
          commission shall employ  a director with the advice of
the commission and
          the approval of the governor. The director serves at the
pleasure of the
          commissioner. To be eligible for employment as the
director, a person must:
          (1) comply with the standards required for a probation
officer; and
          (2) have at least two years' experience in the
administration and supervision of
          probation services.
          SECTION 21. Subchapter C, Chapter 141, Human Resources
Code, is
          amended by adding Section 141.0405 to read as follows:
          Sec. 141.0405. POWERS AND DUTIES OF COMMISSIONER OF
HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the commission and
director as provided
          by Sections 531.0055 or 531.0056, Government Code. To the
extent a power
          or duty given to the commission or director by this
chapter or another law
          conflicts with Section 531.0055 or 531.0056, Government
Code, Section
          531.0055 or 531.0056 controls.
          SECTION 22. Section 11.012, Health and Safety Code, is
amended to read
          as follows:
          Sec. 11.012. COMMISSIONER. (a) The commissioner of health
and human
          services shall appoint board shall employ  the
commissioner with the advice
          of the board and the approval of the governor. The
commissioner serves at the
          will of the commissioner of health and human services
board .
          (b) Except as provided in Subsection (c), the
commissioner must:
          (1) have at least five years of experience in the
administration of public health
          systems; and
          (2) be a person licensed to practice medicine in this
state.
          (c) The commissioner of health and human services board
 may, based on
          the qualifications and experience in administering public
health systems,
          appoint and on two thirds vote of the board, employ  a
person other than a
          physician as the commissioner.
          (d) If the commissioner of health and human services
appoints board employs
           a person as commissioner who is not a physician, then
the commissioner of
          health and human services board  shall designate a
person licensed to
          practice medicine in this state as chief medical
executive.
          (e) The commissioner is the executive head of the
department. The
          commissioner shall perform the duties assigned by the
commissioner of
          health and human services board  and state law, subject
to the provisions of
          this subtitle.
          (f) The commissioner of health and human services board
 may supplement
          the salary of the commissioner with the approval of the
governor. The salary
          may not exceed 1.5 times the salary of the governor, from
funds appropriated
          to the department. The use of funds from other sources
are not limited by this
          subsection.
          SECTION 23. Subchapter A, Chapter 12, Health and Safety
Code, is
          amended by adding Section 12.0001 to read as follows:
          Sec. 12.0001. POWERS AND DUTIES OF COMMISSIONER OF HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the board and
commissioner as provided
          by Sections 531.0055 and 531.0056, Government Code. To
the extent a
          power or duty given to the board or commissioner by this
title or another law
          conflicts with Section 531.0055 or 531.0056, Government
Code, Section
          531.0055 or 531.0056 controls.
          SECTION 24. Section 102.009(b), Health and Safety Code,
is amended to
          read as follows:
          (b) The council may:
          (1) employ an executive director and secretary,
          (2)  appoint advisory committees necessary to implement
the Texas Cancer
          Plan and employ necessary staff to provide administrative
support;
          (2) (3)  monitor contracts and agreements for cancer
programs authorized by
          this chapter;
          (3) (4)  conduct necessary studies and surveys;
          (4) (5)  accept, transfer, and spend funds made
available by the federal or
          state government or by any other public or private
source, subject to
          limitations and conditions prescribed by legislative
appropriation; and
          (5) (6)  use the existing staff of an appointed
official or agency to assist the
          council in performing its duties under this chapter.
          SECTION 25. Chapter 102, Health and Safety Code, is
amended by adding
          Sections 102.0095 and 102.0096 to read as follows:
          Sec. 102.0095. EXECUTIVE DIRECTOR; SECRETARY. (a) The
          commissioner of health and human services shall appoint
the executive
          director of the council with the advice of the council
and the approval of the
          governor. The executive director serves at the pleasure
of the commissioner.
          (b) The council may employ a secretary of the council.
          Sec. 102.0096. POWERS AND DUTIES OF COMMISSIONER OF
HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the council and the
executive director as
          provided by Sections 531.0055 and 531.0056, Government
Code. To the
          extent a power or duty given to the council or the
executive director
          of the council by this chapter or another law conflicts
with Section 531.0055
          or 531.0056, Government Code, Section 531.0055 or
531.0056 controls.
          SECTION 26. Section 461.011(a), Health and Safety Code,
is amended to
          read as follows:
          (a) The commissioner of health and human services
commission  shall
          employ an executive director with the advice of the
commission and the
          approval of the governor. The executive director shall
hire other necessary
          employees.
          SECTION 27. Chapter 461, Health and Safety Code, is
amended by adding
          Section 461.0115 to read as follows:
          Sec. 461.0115. POWERS AND DUTIES OF COMMISSIONER OF
HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the commission and
executive director
          as provided by Sections 531.0055 and 531.0056, Government
Code. To the
          extent a power or duty given to the commission or
executive director by this
          chapter or another law conflicts with Section 531.0055 or
531.0056,
          Government Code, Section 531.0055 or 531.0056 controls.
          SECTION 28. Sections 532.011 (a), (c), (d), and (f),
Health and Safety Code,
          are amended to read as follows:
          (a) The commissioner of health and human services board
 shall appoint a
          commissioner with the advice of the board and the
approval of the governor.
          (c) The commissioner holds office at the will of the
commissioner of health
          and human services board .
          (d) The Subject to board rules and basic and general
policies, the
          commissioner:
          (1) Has the administrative and decisional powers granted
under this subtitle;
          and
          (2) shall administer the department and this subtitle and
ensure assure  the
          effective administration of the department and its
programs and services.
          (f) The With the board's approval, the  commissioner
shall:
          (1) establish an organizational structure within the
department that will
          promote the effective administration of this subtitle;
and
          (2) establish the duties and functions of the
department's staff.
          SECTION 29. Subchapter A, Chapter 533, Health and Safety
Code, is
          amended by adding Section 533.0001 to read as follows:
          Sec. 533.0001. POWERS AND DUTIES OF COMMISSIONER OF
HEALTH
          AND HUMAN SERVICES. The commissioner of health and human
services
          has the powers and duties relating to the board and
commissioner as provided
          by Sections 531.0055 and 531.0056, Government Code. To
the extent a
          power or duty given to the board or commissioner by this
title or another law
          conflicts with Section 531.0055 or 531.0056, Government
Code, Section
          531.0055 or 531.0056 controls.
          SECTION 30. Section 531.0272, Government Code, is
repealed.
          SECTION 31. (a) In this section, "agency director" has
the meaning assigned
          by Section 531.0055, Government Code, as added by this
Act.
          (b) An agency director serving on the effective date of
this Act continues
          to serve in that position until the expiration of the
term of that person's
          appointment or employment or until removed from the
position as provided by
          law. A vacancy in the position of an agency director that
occurs on or after the
          effective date of this Act shall be filled by the
commissioner of health and
          human services as required by the change in law made by
this Act.
          SECTION 32. (a) The commissioner of health and human
services shall
          develop a plan for implementation of Sections 531.0055,
531.0056, 531.0246,
          531.0247, and 531.0248, Government Code, as added by this
Act.
          (b) Not later than November 1, 1999, the commissioner of
health and human
          services shall submit the portion of the plan developed
under Subsection (a) of
          this section that is applicable to implementation of
Section 531.0247,
          Government Code, as added by this Act, to the Legislative
Budget Board and
          the Department of Information Resources for review and
comment. The
          commissioner of health and human services shall implement
this portion of
          the plan not later than January 1, 2001.
          (c) Not later than January 1, 2001, the commissioner of
health and human
          services shall submit to the governor, the lieutenant
governor, and the speaker
          of the house of representatives a report detailing the
plan developed under
          Subsection (a) of this section and describing the
implementation of the
          changes in law made by this Act.
          SECTION 33. (a) The Health and Human Services Commission
shall conduct
          a study to evaluate the relationship between the
commission and other state
          agencies that provide services to individuals who also
receive services from
          health and human services agencies, including the Texas
Workforce
          Commission, the Texas Youth Commission, the Texas
Education Agency,
          and Texas Department of Housing and Community Affairs.
          (b) Not later than January 1, 2001, the Health and Human
Services
          Commission shall submit a report relating to the results
of the study
          conducted under this section to the governor, lieutenant
governor, and the
          speaker of the house of representatives. The report may
include proposed
          legislation necessary to clarify the relationship of the
Health and Human
          Services Commission to the agencies considered in the
study as appropriate
          to improve the quality and efficiency of services
provided in this state.
          SECTION 34. This Act takes effect September 1, 1999.
          SECTION 35. The importance of this legislation and the
crowded condition of
          the calendars in both houses creates an emergency and an
imperative public
          necessity that the constitutional rule requiring bills to
be read on three several
          days in each house be suspended, and this rule is hereby
suspended.
 *END-AMDENDMENT* 
 BEGIN-AMEND;BILL:HB585;READING:3;NUM:1* 
          Amend HB 585 on third reading by adding the following
appropriately
          numbered sections to the bill to read as follows and by
renumbering the
          existing sections of the bill accordingly:
          SECTION _____. Chapter 441, Government Code, is amended
by adding
          Subchapter E to read as follows:
                   SUBCHAPTER E. PUBLIC LIBRARY ENDOWMENT
                            AND OPERATING FUNDS
          Sec. 441.071. TEXAS PUBLIC LIBRARY ENDOWMENT FUND. (a)
The
          Texas public library endowment fund is a trust fund
outside the state treasury
          held by a bank or depository trust company and
administered by the
          commission for the benefit of the public as provided by
this section.
          (b) The fund consists of donations accepted by the
commission under Section
          441.074.
          (c) The corpus of the endowment fund may not be spent for
any purpose.
          (d) Not later than September 1 of each year, the
commission shall remit all or
          part of the interest and income earned on money in the
endowment fund to
          the comptroller for deposit in the state treasury to the
credit of the Texas
          public library fund. The commission shall credit to the
corpus of the
          endowment fund any portion of the interest and income not
credited to the
          public library fund in the treasury.
          Sec. 441.072. INVESTMENT AND MANAGEMENT OF ENDOWMENT
FUND.
          (a) The commission shall appoint investment managers for
the management
          and investment of the Texas public library endowment fund
by contracting for
          professional investment management services with one or
more organizations
          that are in the business of managing investments.
          (b) In choosing and contracting for professional
investment management
          services and in continuing the use of an investment
manager, the commission
          shall act prudently and in the interest of the
beneficiaries of the endowment
          fund.
          (c) In making and supervising investments of the
endowment fund, an
          investment manager and the commission shall discharge
their respective
          duties solely in the interest of the beneficiaries of the
fund:
          (1) for the exclusive purposes of providing benefits for
the beneficiaries of the
          fund and defraying reasonable expenses of administering
this chapter;
          (2) with the care, skill, prudence, and diligence under
the prevailing
          circumstances that a prudent person acting in a similar
capacity and familiar
          with matters of the type would use in the conduct of an
enterprise with a
          similar character and aims;
          (3) by diversifying the investments of the fund to
minimize the risk of large
          losses, unless under the circumstances it is clearly
prudent not to do so; and
          (4) in accordance with the documents and instruments
governing the fund to
          the extent that the documents and instruments are
consistent with this
          section.
          (d) To be eligible for appointment under this section, an
investment manager
          must be: registered under the Investment Advisers Act of
1940 (15 U.S.C.
          Section 80b-1 et seq.), as amended;
          (2) a bank as defined by that Act that has a trust
department; or
          (3) an insurance company qualified to perform investment
services under the
          laws of more than one state.
          (e) in a contract made under this section, the commission
shall specify any
          policies, requirements, or restrictions, including
criteria for determining the
          quality of investments and for the use of standard rating
services, that the
          commission adopts for investments of the endowment fund.
          (f) A member of the commission is not liable for the acts
or omissions of an
          investment manager appointed under Subsection (a). A
member of the
          commission is not permitted or obligated to invest or
otherwise to manage
          any asset of the fund subject to management by the
investment manager.
          (g) An investment manager appointed under Subsection (a)
shall acknowledge
          in writing the manager's fiduciary responsibilities to
the endowment fund.
          (h) The commission may at any time and shall frequently
monitor the
          investments made by each investment manager for the
endowment fund. The
          commission may contract for professional evaluation
services to fulfill this
          requirement.
          (i) The commission shall enter into an investment custody
account agreement
          designating a bank or a depository trust company to serve
as custodian for all
          assets allocated to or generated under a contract for
professional investment
          management services.
          (j) Under a custody account agreement, the commission
shall require the
          designated custodian to perform the duties and assume
responsibilities for
          the endowment fund that are performed and assumed, in the
absence of a
          contract, by the custodian of the endowment fund. The
custodian shall furnish
          to the commission, annually or more frequently if
required by commission
          rule, a sworn statement of the amount of the endowment
fund assets in the
          custodian's custody.
          (k) For purposes of this section, the beneficiaries of
the Texas public library
          endowment fund are the persons who use public libraries,
public library
          facilities, and public library collections and the public
libraries that benefit from
          the performance of the commission's powers and duties
under this chapter.
          Sec. 441.073. TEXAS PUBLIC LIBRARY FUND. (a) The Texas
public library
          fund is a special fund in the state treasury outside the
general revenue fund.
          (b) The fund consists of money credited to the fund under
Section 441.071(d)
          and proceeds from sales under Section 441.074(d).
          (c) Money in the fund may be appropriated only to the
commission to perform
          the commission's powers and duties concerning public
library development
          under this chapter and to pay the commission's expenses
incurred under this
          subchapter.
          (d) The fund is exempt from the application of Sections
403.095 and 404.071.
          Interest and income from deposit and investment of money
in the fund shall be
          allocated to the fund monthly.
          Sec. 441.074. DONATIONS, APPROPRIATIONS, AND SALES. (a)
The
          commission may solicit and accept on behalf of the state
donations of
          money, securities, and other property as it determines
best further the orderly
          development of public library resources of the state.
Money paid to the
          commission under this subsection shall be deposited in
the Texas public
          library endowment fund.
          (b) The commission by rule shall establish an acquisition
policy for accepting
          donations of money, securities, and other property.
          (c) The legislature may make appropriations to the
commission to carry out
          the purposes of this chapter.
          (d) The commission may purchase and resell items it
determines appropriate
          for the promotion of public libraries in Texas. The value
of commission
          inventory, as determined by generally accepted accounting
principles, may
          not exceed $50,000 at the end of any fiscal year. The net
profits from those
          sales shall be deposited in the Texas public library
fund.
          Sec. 441.075. PUBLIC LIBRARY FUND GRANT PROGRAM. (a) The
          commission shall make grants to public libraries from the
Texas public library
          fund for facility construction projects, acquisition of
books and other collection
          development materials and payment of actual and
reasonable general and
          administrative expenses. The commission shall allocate
amounts from the
          fund to direct and matching grant programs.
          (b) The commission shall adopt rules:
          (1) establishing methods for participation by local
governments in a matching
          grant program for facility construction projects; and
          (2) providing allocations for a direct grant program for
acquisition of books and
          other collection development materials according to a
formula that allocates a
          base grant to each participating public library plus an
amount that is
          proportional to the size of the population served.
          (c) To participate in a grant program under this section,
a public library must
          maintain a level of local public library funding equal to
or greater than the
          average funding for the three years preceding
participation. The commission
          shall adopt rules to implement this requirement.
          SECTION _____. Section 404.093(b), Government Code, is
amended to read
          as follows:
          (b) This subchapter does not apply to:
          (1) funds pledged to the payment of bonds, notes, or
other debts if the funds
          are not otherwise required to be deposited in the
treasury;
          (2) funds held in trust or escrow for the benefit of a
person or entity other than
          a state agency;
          (3) funds set apart out of earnings derived from
investment of funds held in
          trust for others, as administrative expenses of the
trustee agency;
          (4) funds, grants, donations, and proceeds from funds,
grants, and donations,
          given in trust to the Texas State Library and Archives
Commission for the
          establishment and maintenance of regional historical
resource depositories
          and libraries in accordance with Section 441.154
441.074 ; or
          (5) funds under the management of the secretary-treasurer
of the Anatomical
          Board of the State of Texas, as provided by Section
691.008, Health and
          Safety Code.