HBA-NMO H.B. 2641 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2641 By: Gray Public Health 11/2/1999 Enrolled BACKGROUND AND PURPOSE In 1991, the 72nd Texas Legislature created the Health and Human Services Commission (HHSC) to coordinate the delivery of health and human services in this state. Currently, fourteen state agencies, with an appropriation of approximately $26 billion for the 1998-1999 biennium, are responsible for delivering these services. HHSC is subject to the Texas Sunset Act and will be abolished on September 1, 1999, unless continued by the legislature. H.B. 2641 continues HHSC until September 1, 2007. This bill also increases HHSC's operational control over health and human services, including supervision of the Medicaid program, supervision of information systems planning and management, management and distribution of certain federal funds, and implementation of the Texas Integrated Enrollment Services. This bill additionally implements several other recommendations of the Sunset Advisory Commission. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of health and human services in SECTION 2.01 (Section 531.0055, Government Code) and the Health and Human Services Commission in SECTION 3.06 (Section 531.034, Government Code, SECTION 9.08 (Section 533.014, Government Code), and SECTION 9.10 (Section 2.07(c), Chapter 1153, Acts of the 75th Legislature, Regular Session, 1997). SECTION BY SECTION ANALYSIS ARTICLE 1. GENERAL POWERS AND DUTIES OF THE HEALTH AND HUMAN SERVICES COMMISSION SECTION 1.01. Amends Section 531.004, Government Code, to continue the Health and Human Services Commission (HHSC) until September 1, 2007, rather than 1999. SECTION 1.02. Amends Section 531.009, Government Code, to require the commissioner of health and human services (commissioner) to employ a medical director to provide medical expertise to the commissioner and HHSC. Amends existing language to conform to standard Sunset language regarding equal opportunity. Makes conforming changes. SECTION 1.03. Amends Section 531.011, Government Code, by adding Subsection (g), to set forth standard Sunset language regarding complaint information. SECTION 1.04. Amends Subchapter A, Chapter 531, Government Code, by adding Section 531.014, as follows: Sec. 531.014. CONSOLIDATION OF REPORTS. Authorizes HHSC to consolidate any annual or biennial reports required to be made under this chapter (Health and Human Services Commission) or any other law if the consolidated report is submitted not later than the earliest deadline for the submission of any component of the consolidated report, and each person required to receive a component of the report receives the report and it identifies the component of the report the person was required to receive. SECTION 1.05. Amends Subchapter A, Chapter 531, Government Code, by adding Section 531.015, as follows: Sec. 531.015. NEW FACILITIES IN CERTAIN COUNTIES. Provides that a health and human services agency is prohibited from establishing a new facility in a county with a population of less than 200,000 until the agency provides notification about the facility, its location, and its purpose to each state representative and state senator that represents all or part of the county, the county judge that represents the county, and the mayor of any municipality in which the facility would be located. ARTICLE 2. RELATIONSHIP WITH HEALTH AND HUMAN SERVICES AGENCIES SECTION 2.01. Amends Subchapter A, Chapter 531, Government Code, by adding Section 531.0055, as follows: Sec. 531.0055. COMMISSIONER: RESPONSIBILITY RELATING TO CERTAIN FUNCTIONS OF HEALTH AND HUMAN SERVICES AGENCIES. (a) Defines "agency director" and "policymaking body." (b) Requires HHSC to supervise the administration and operation of the Medicaid program, including the administration and operation of the Medicaid managed care system in accordance with Section 531.021 (Administration of Medicaid Program); supervise information systems planning and management for certain health and human services agencies (agencies) under Section 531.0273 (Information Resources Planning and Management; Advisory Committee); monitor and ensure the effective use of all federal funds received by an agency in accordance with Section 531.028 (Management and Distribution of Funds) and the General Appropriations Act; and implement Texas Integrated Enrollment Services as required by Subchapter F (Texas Integrated Enrollment Services). (c) Requires HHSC, after implementation of HHSC's duties under Subsection (b), to implement the powers and duties given to HHSC under Sections 531.0246 (Regional Management of Health and Human Services Agencies), 531.0247 (Annual Plan), 2155.144 (Procurements by Health and Human Services Agencies), as added by Chapter 1045, Acts of the 75th Legislature, Regular Session, 1997, and 2167.004 (Leasing Space for Health and Human Services Agencies). (d) Requires HHSC, after the implementation of HHSC's duties under Subsections (b) and (c), to implement the powers and duties given to HHSC under Section 531.0248 (Community-Based Support Systems). Provides that nothing in the priorities established by this section is intended to limit the authority of HHSC to work simultaneously to achieve the multiple tasks assigned to HHSC in this section, when such an approach is beneficial in the judgment of HHSC. Requires HHSC to plan and implement an efficient and effective system of administrative support services for health and human services agencies. Defines "administrative support services." (e) Requires the commissioner, as necessary to perform the functions described in Subsections (b), (c), and (d) in implementation of the policies established by each agency's policymaking body, to manage and direct the operations of each agency, and supervise and direct the activities of each agency director. (f) Sets forth the operational authority of the commissioner at each agency for the purposes of Subsection (e). (g) Provides that the operational authority of the commissioner for the purposes of Subsection (e) at each agency includes the authority to adopt or approve, subject to applicable limitations, any rate of payment or similar provision required by law to be adopted or approved by the agency. (h) Requires the commissioner, at each agency, to implement a program to evaluate and supervise the daily operations of the agency. Provides that the program must include measurable performance objectives for each agency director and adequate reporting requirements to permit the commissioner to perform the duties assigned to the commissioner under this section. (i) Authorizes the commissioner, to facilitate the operations of a health and human services agency in accordance with this section, to delegate a specific power or duty given in Subsection (f) to an agency director. (j) Authorizes the commissioner to adopt rules to implement the commissioner's authority under this section. (k) Requires the commissioner and each agency director to enter into a memorandum of understanding that clearly defines the responsibilities of the agency director and the commissioner, establishes the program of evaluation and supervision of daily operations required by Subsection (h), and describes each delegation of a power or duty made under Subsection (i). (l) Provides that a policymaking body has the authority provided by law to adopt policies and rules governing the delivery of services to persons who are served by the agency and the rights and duties of persons who are served or regulated by the agency. Requires the commissioner and the policymaking body to enter into a memorandum of understanding that clearly defines the policymaking authority of the policymaking body and the operational authority of the commissioner. Sec. 531.0056. EMPLOYMENT OF AGENCY DIRECTOR. (a) Provides that this section applies only to an agency director employed by the commissioner. (b) Authorizes the employment of an agency director employed by the commissioner only with the concurrence of the agency's policymaking body and the approval of the governor. (c) Requires the commissioner and agency director to enter into a memorandum of understanding that clearly defines the responsibilities of the agency director and authorizes the commissioner and agency director to establish terms and conditions of employment in the memorandum of understanding. (d) Requires that the terms of the memorandum of understanding outline specific performance objectives, as defined jointly by the commissioner and the policymaking body, to be fulfilled by the agency director. (e) Requires the commissioner, based upon the performance objectives outlined in the memorandum of understanding, to perform an employment evaluation of the agency director. (f) Requires the commissioner to submit the evaluation, along with any recommendation regarding the employment of the agency director, to the agency's policymaking body and the governor not later than January 1 of each even-numbered year. (g) Requires the policymaking body to consider the evaluation in a meeting of the policymaking body and take necessary action, if any, not later than 90 days after the date of the receipt of the evaluation. (h) Provides that an agency director employed by the commissioner serves at the pleasure of the commissioner but authorizes the discharge of the agency director only with the concurrence of the agency's policymaking body. Sec. 531.0057. AUTHORITY OVER RULEMAKING AT HEALTH AND HUMAN SERVICES AGENCY. Provides that a health and human services agency, notwithstanding any other law, must notify the commissioner before proposing a rule. Provides that a rule adopted in violation of this section is void. Authorizes the commissioner to waive the requirement of this section as necessary to permit emergency rulemaking in accordance with Section 2001.034 (Emergency Rulemaking). SECTION 2.02. Amends Section 21.004, Human Resources Code, to make conforming changes as the changes relate to the appointment of the commissioner of human services. SECTION 2.03. Amends Chapter 22, Human Resources Code, by adding Section 22.0001, as follows: Sec. 22.0001. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Provides that the commissioner has the powers and duties relating to the Board of Human Services and commissioner of human services as provided by Section 531.0055, Government Code. Provides that Section 531.0055 controls, to the extent a power or duty given to the Board of Human Services or the commissioner of human services by another law conflicts with Section 531.0055. SECTION 2.04. Amends Section 40.027(a), Human Resources Code, to make conforming changes as the changes relate to the appointment of the executive director of the Department of Protective and Regulatory Services. SECTION 2.05. Amends Subchapter C, Chapter 40, Human Resources Code, to add Section 40.0505, as follows: Sec. 40.0505. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes conforming changes as the changes relate to the Board of Protective and Regulatory Services and the executive director of the Department of Protective and Regulatory Services. SECTION 2.06. Amends Chapter 73, Human Resources Code, by adding Section 73.0045, as follows: Sec. 73.0045. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the board of the Interagency Council on Early Childhood Intervention and the executive director of the Interagency Council on Early Childhood Intervention. SECTION 2.07. Amends Sections 73.0052(b) and (c), Human Resources Code, to make conforming changes as the changes relate to the appointment of the executive director of the Interagency Council on Early Childhood Intervention. SECTION 2.08. Amends Chapter 81, Human Resources Code, by adding Section 81.0055, as follows: Sec. 81.0055. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Commission for the Deaf and Hard of Hearing and its executive director. SECTION 2.09. Amends Sections 81.008(a) and (b), Human Resources Code, to make conforming changes as the changes relate to the appointment of the executive director of the Texas Commission for the Deaf and Hard of Hearing. SECTION 2.10. Amends Sections 91.012(a), (b), and (d), Human Resources Code, to make conforming changes as the changes relate to the appointment of the executive director of the Texas Commission for the Blind. SECTION 2.11. Amends Subchapter C, Chapter 91, Human Resources Code, by adding Section 91.0205, as follows: Sec. 91.0205. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Commission for the Blind and its executive director. SECTION 2.12. Amends Section 101.004(a), Human Resources Code, to make conforming changes as the changes relate to the appointment of the executive director of aging. SECTION 2.13. Amends Subchapter B, Chapter 101, Human Resources Code, by adding Section 101.0205, as follows: Sec. 101.0205. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Board on Aging and its executive director of aging. SECTION 2.14. Amends Section 111.017, Human Resources Code, to make conforming changes as the changes relate to appointment of the chief administrative officer of the Texas Rehabilitation Commission. SECTION 2.15. Amends Subchapter C, Chapter 111, Human Resources Code, by adding Section 111.0505, as follows: Sec. 111.0505. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Rehabilitation Commission and its chief administrative officer. SECTION 2.16. Amends Subchapter C, Chapter 141, Human Resources Code, by adding Section 141.0405, as follows: Sec. 141.0405. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Juvenile Probation Commission and its executive director. SECTION 2.17. Amends Sections 11.012(a), (b), (c), and (d), Health and Safety Code, to make conforming changes as the changes relate to the appointment of the commissioner of public health. SECTION 2.18. Amends Subchapter A, Chapter 12, Health and Safety Code, by adding Section 12.0001, as follows: Sec. 12.0001. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Board of Health and the commissioner of public health. SECTION 2.19. Amends Section 461.011(a), Health and Safety Code, to make conforming changes as the changes relate to the appointment of the executive director of the Texas Commission on Alcohol and Drug Abuse. SECTION 2.20. Amends Chapter 461, Health and Safety Code, by adding Section 461.0115, as follows: Sec. 461.0115. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Commission on Alcohol and Drug Abuse and its executive director. SECTION 2.21. Amends Sections 532.011(a), (b), (d), and (f), Health and Safety Code, to make conforming changes as the changes relate to the appointment of the commissioner of the Texas Department of Mental Health and Mental Retardation. SECTION 2.22. Amends Subchapter A, Chapter 533, Health and Safety Code, by adding Section 533.0001, as follows: Sec. 533.0001. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN SERVICES. Makes a conforming change as it relates to the Texas Department of Mental Health and Mental Retardation and its commissioner. SECTION 2.23. Defines "agency director" and "policymaking body." Makes application of this Act prospective, as it relates to the term of an agency director. Makes conforming changes. ARTICLE 3. SPECIFIC FUNCTIONS OF HEALTH AND HUMAN SERVICES COMMISSION SECTION 3.01. Amends Section 531.021(b), Government Code, to require HHSC to plan and direct the Medicaid program in each agency that operates a portion of the Medicaid program, including the management of the Medicaid managed care system and the development, procurement, management, and monitoring of contracts necessary to implement the Medicaid managed care system. Requires HHSC to establish requirements for and define the scope of the ongoing evaluation of the Medicaid managed care system in conjunction with the Texas Health Care Information Council under Section 108.0065, Health and Safety Code. Makes conforming changes. SECTION 3.02. Amends Subchapter B, Chapter 531, Government Code, by adding Sections 531.0246-531.0249, as follows: Sec. 531.0246. REGIONAL MANAGEMENT OF HEALTH AND HUMAN SERVICES AGENCIES. Authorizes HHSC, subject to Section 531.0055(c), to require an agency, under the direction of HHSC, to locate all or a portion of the agency's employees and programs in the same building as another agency or at a location near or adjacent to the location of another agency; ensure that the agency's location is accessible to disabled employees and agency clients; and consolidate agency support services, including clerical and administrative support services and information resources support services, with support services provided to or by another agency. Sec. 531.0247. ANNUAL BUSINESS PLAN. Requires HHSC, subject to Section 531.0055(c), to develop and implement an annual business services plan for each health and human services region that establishes performance objectives for all agencies providing services in the region and measures agency effectiveness and efficiency in achieving those objectives. Sec. 531.0248. COMMUNITY-BASED SUPPORT SYSTEMS. (a) Requires HHSC, subject to Section 531.0055(d), to assist communities in this state in developing comprehensive, community-based support systems for health and human services. Requires HHSC, at the request of a community, to provide resources and assistance to the community to enable the community to identify and overcome institutional barriers to developing more comprehensive community support systems, including barriers that result from the policies and procedures of agencies; and to develop a system of blended funds to allow the community to customize services to fit individual community needs. (b) Requires an agency, at the request of HHSC, to provide resources and assistance to a community as necessary to perform HHSC's duties under Subsection (a). (c) Requires an agency that receives or develops a proposal for a community initiative to submit the initiative to HHSC for review and approval. Requires HHSC to review the initiative to ensure that the initiative is consistent with other similar programs offered in communities and does not duplicate other services provided in the community. (d) Requires HHSC, in implementing this section, to consider models used in other service delivery systems, including the mental health and mental retardation system. Sec. 531.0249. ADVISORY COMMITTEE FOR LOCAL GOVERNMENTAL ENTITIES. Requires HHSC to appoint an advisory committee composed of representatives of governmental entities under Section 531.022(e) (Coordinated Strategic Plan for Health and Human Services). Sets forth the duties of the advisory committee. Prohibits a member of the advisory committee from receiving compensation, but entitles a member to reimbursement of the travel expenses incurred by the member while conducting the business of the committee, as provided by the General Appropriations Act. Provides that the advisory committee in not subject to Chapter 2110 (State Agency Advisory Committees), Government Code. SECTION 3.03. Amends Sections 531.0271 and 531.0273, Government Code, as follows: Sec. 531.0271. HEALTH AND HUMAN SERVICES AGENCIES OPERATING BUDGETS. Authorizes HHSC, within the limits established by and subject to the General Appropriations Act, to transfer amounts appropriated to agencies among the agencies to enhance the receipt of federal money under the federal funds management system established under Section 531.028; achieve efficiencies in the administrative support functions of the agencies; and perform the functions assigned to the commissioner under Section 531.0055. Deletes language that requires HHSC to review and comment on the operating budgets of each agency and the transfer of funds. Sec. 531.0273. New Title: INFORMATION RESOURCES PLANNING AND MANAGEMENT; ADVISORY COMMITTEE. Provides that HHSC is responsible for strategic planning for information resources at each health and human services agency and requires HHSC to direct the management of information resources at each agency. Requires HHSC to develop a coordinated strategic plan for information resources management, establish information resources management policies, procedures and technical standards that ensure compliance with them, and review and approve the information resources management and biennial operating plan of each agency. Requires HHSC, not later than December 15 of each even-numbered year, to file a coordinated information resources strategic plan with the governor, lieutenant governor, and the speaker of the house of representatives. Requires HHSC to appoint an advisory committee. Sets forth the composition and appointment of the advisory committee. Requires the advisory committee to advise HHSC on certain information resource issues. Prohibits a member of the advisory committee from receiving compensation, but entitles a member to reimbursement of the travel expenses incurred by the member while conducting the business of the committee, as provided by the General Appropriations Act. Provides that the advisory committee is not subject to Chapter 2110. Makes conforming changes. SECTION 3.04. Amends Section 531.028, Government Code, as follows: Sec. 531.028. New Title: MONITORING AND EFFECTIVE MANAGEMENT OF FUNDS. Requires HHSC, within the limits established by and subject to the General Appropriations Act, to be responsible for planning for, and managing the use of, all federal funds in a manner that maximizes the federal funding available to the state while promoting the delivery of services. Requires the commissioner to establish a federal money management system to coordinate and monitor the use of federal money that is received by agencies to ensure that the money is spent in the most efficient manner. Requires the commissioner to address certain federal money management issues. Requires HHSC to prepare an annual report with respect to the results of the implementation of this section. Provides that the report must identify strategies to maximize the receipt and use of federal funds and to improve federal funds management. Requires HHSC to file the report with the governor, the lieutenant governor, and the speaker of the house of representatives not later than December 15 of each year. Deletes existing text. SECTION 3.05. Amends Section 531.0312, Government Code, as follows: Sec. 531.0312. TEXAS INFORMATION AND REFERRAL NETWORK. (a) Provides that the Texas Information and Referral Network (network) must include information relating to transportation services provided to clients of state and local agencies. (b) Requires HHSC to cooperate with the Records Management Interagency Coordinating Council (council) and the General Services Commission (GSC) to establish a single method of categorizing information about health and human services to be used by the council and the network. Requires the network, in cooperation with the council and GSC, to ensure that information relating to health human services is included in each residential telephone directory, and the single method of categorizing information about health and human services is used in each residential telephone directory. (c) Requires an agency to provide the council, in addition to the network, with information about the health and human services provided by the agency for inclusion in the statewide information and referral network, residential telephone directories described by Subsection (b), and any other materials produced under the direction of the network or the council. Requires the agency to provide the information in the format required by the network or the council and requires the agency to update the information at least quarterly or as required by the network or the council. SECTION 3.06. Amends Section 531.034, Government Code, by amending Subsection (b) and adding Subsection (d), as follows: (b) Requires HHSC to review agency rules to ensure that the rules do not discourage marriage or encourage divorce. (d) Requires HHSC to adopt rules to establish criteria for determining, as required by Subsection (b), whether an agency rule discourages marriage or encourages divorce. SECTION 3.07. Redesignates Section 441.053(j), Government Code, as Subsection (j) of Section 441.203, Government Code, as added by Chapter 873, Acts of the 75th Legislature, Regular Session, 1997, and amends it, to require the council to cooperate with the network under Section 531.0312 to ensure that the council and the network use a single method of defining and organizing information about health and human services. SECTION 3.08. Redesignates Section 9.12, Chapter 655, Acts of the 74th Legislature, Regular Session, 1995, as amended by Section 1, Chapter 1116, Acts of the 75th Legislature, Regular Session, 1997, as Subchapter F, Chapter 531, Government Code, and amends it, as follows: SUBCHAPTER F. TEXAS INTEGRATED ENROLLMENT SERVICES Sec. 531.191. INTEGRATED ELIGIBILITY DETERMINATION. Makes conforming and nonsubstantive changes. Sec. 531.192. COORDINATION WITH LEGISLATIVE OVERSIGHT COMMITTEE. Requires HHSC to develop and implement the plan required by Section 531.191 in consultation and coordination with the Texas Integrated Enrollment Services Legislative Oversight Committee (legislative oversight committee) established by Section 531.202. Requires HHSC, before awarding a contract under Section 531.191, to provide the detailed cost-benefit analysis described by that subsection to the legislative oversight committee. Authorizes HHSC to coordinate with the legislative oversight committee to hold any hearing as required under Section 531.191. Provides that this section expires on September 1, 2002. SECTION 3.09. Redesignates Subchapter D, Chapter 531, Government Code, as added by Chapter 1116, Acts of the 75th Legislature, Regular Session, 1997, as Subchapter G, Chapter 531, Government Code, and the subchapter heading is amended as follows: SUBCHAPTER G. New Title: LEGISLATIVE OVERSIGHT FOR TEXAS INTEGRATED ENROLLMENT SERVICES SECTION 3.10. Amends Section 531.203(a), Government Code, to make a conforming change. SECTION 3.11. Amends Section 2155.144, Government Code, as added by Chapter 1045, Acts of the 75th Legislature, Regular Session, 1997, as follows: (a)-(h) Makes no change. (i) Requires HHSC to develop a single statewide risk analysis procedure. Requires each agency to comply with the procedure. Sets forth the necessary factors for the procedure. (j) Requires HHSC to publish a contract management handbook that establishes consistent contracting policies and practices to be followed by agencies. Authorizes the handbook to contain standard contract provisions and formats for agencies to incorporate as applicable in their contracts. (k) Requires HHSC, in cooperation with the comptroller, to establish a central contract management database that identifies each contract made with an agency. Authorizes HHSC to use the database to monitor agency contracts, and authorizes agencies to use the database in contracting. Requires a state agency to send to HHSC in the manner prescribed by HHSC the information the agency possesses that HHSC requires for inclusion in the database. (l) Authorizes HHSC to review the procurement and rate-setting procedures of each agency to ensure that amounts paid to contractors are consistent and represent the best value for the state. Authorizes HHSC to disapprove a procurement and rate-setting procedure of an agency. Prohibits an agency from using a procurement or rate-setting procedure that has been disapproved by HHSC. (m) Requires HHSC to develop and implement a statewide plan to ensure that each entity that contracts with an agency and any subcontractor of the entity complies with the accessibility requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.). (n) Redesignated from Subsection (j). (o) Requires HHSC to prepare an annual report that assesses the compliance of each agency with the requirements imposed under this section and that identifies any material risk to the state or to the clients of the agency that results from the agency's procurement and contracting practices. Authorizes HHSC to request the assistance of the state auditor in preparing the report. Requires the state auditor to conduct reviews as necessary to assess compliance under this subsection as determined by the Legislative Audit Committee. Requires HHSC to file the report with the governor, the lieutenant governor, and the speaker of the house of representatives not later than December 15 of each year. (p) Redesignated from Subsection (k). SECTION 3.12. Amends Section 2167.004, Government Code, to prohibit the General Services Commission from entering into an emergency lease to serve the needs of an agency unless the emergency lease is entered into under criteria adopted by HHSC in consultation with the General Services Commission. Sets forth the criteria. Redefines "health and human services agency." SECTION 3.13. Requires HHSC, not later than January1, 2000, to adopt rules required by Section 531.034(d), Government Code. SECTION 3.14. Requires HHSC to submit a report, not later than December 15, 2000, relating to the delivery of mental health and substance abuse services in this state to the governor, the lieutenant governor, the speaker of the house of representatives, and the committees of the house of representatives and senate identified under Section 531.171, Government Code . Sets forth the required contents of the report. Requires an agency or any other state agency that provides mental health or substance abuse services to provide HHSC any information, other than confidential information, requested by HHSC relating to mental health and substance abuse services provided by the agency. Provides that this section expires December 31, 2000. SECTION 3.15. Requires HHSC to submit a report by December 15, 2000, relating to regulatory programs conducted by the Texas Department of Health to the governor, the lieutenant governor, the speaker of the house of representatives, and the committees of the house of representatives and senate identified under Section 531.171, Government Code. Sets forth the factors HHSC must consider in preparing the report. Provides that this section expires on December 31, 2000. SECTION 3.16. Requires HHSC to assess the benefits of consolidating support services provided to agencies in agency headquarters and in regional offices and develop a proposed plan and schedule for colocating offices and consolidating support services in accordance with Section 531.0246. Requires HHSC to report the results of the assessment by September 1, 2000, to the governor, the lieutenant governor, the speaker of the house of representatives, and the committees of the house of representatives and senate identified under Section 531.171, Government Code. SECTION 3.17. Requires HHSC, the General Services Commission, and the Records Management Interagency Coordinating Council to ensure that information about health and human services presented in the format required by Section 531.0312, Government Code, is available for publication in residential telephone directories to be distributed to the public after December 1, 2000. Requires HHSC, the General Services Commission, and the Records Management Interagency Coordinating Council to report by December 31, 2000, to the governor, the lieutenant governor, the speaker of the house of representatives, and the committees of the house of representatives and senate identified under Section 531.171, Government Code. SECTION 3.18. Requires the state auditor, notwithstanding Section 2155.144(o), Government Code, to conduct initial reviews as necessary to assess compliance under that subsection and complete those reviews not later than September 1, 2001. SECTION 3.19. Requires HHSC to study the feasibility of a subacute care pilot project. Requires the Texas Department of Human Services (DHS) and the Texas Department of Health (TDH) to cooperate with and assist HHSC in this study. Requires HHSC, in conducting the study, to consider certain subjects. Requires HHSC, not later than September 1, 2000, to submit a report on the feasibility of a subacute care pilot project to the governor, lieutenant governor, the speaker of the house of representatives, and the chair of each legislative committee with jurisdiction over long-term care. Provides that this section expires on September 1, 2001. ARTICLE 4. INVESTIGATIONS OF FRAUD, ABUSE, AND EXPLOITATION SECTION 4.01. Defines "commission" and "working group." SECTION 4.02. Requires HHSC, except as provided by Section 4.05 of this article, to identify each agency that may be required to conduct an investigation of abuse, neglect, or exploitation of a client of the agency at a facility operated by or under contract with the agency and any agency covered under Section 261.401 (Agency Investigation), Family Code, or Section 48.082 (Investigation of Reports in Other State Agencies), and to convene a working group of representatives of those agencies and advocates for the affected clients. SECTION 4.03. Requires the working group, not later than August 1, 2000, to develop certain proposed definitions, standards, and procedures. SECTION 4.04. Requires HHSC to present a report on the results of the working group to the governor, the lieutenant governor, and the speaker of the house of representatives not later than November 1, 2000. Provides that the report must include any recommendations, based on the results of the working group, for changes in law HHSC considers necessary. SECTION 4.05. Prohibits the working group from including a representative of the Texas Juvenile Probation Commission and from including recommendations relating to facilities operated by or under contract with the Texas Juvenile Probation Commission. ARTICLE 5. GUARDIANSHIP ADVISORY BOARD SECTION 5.01. Amends Sections 531.122(b) and (d), Government Code, to include three public representatives, and one representative of the Department of Protective and Regulatory Services in the composition of the Guardianship Advisory Board (advisory board). Provides that the public representatives and representatives of the Department of Protective and Regulatory Services are appointed by the commissioner and the Board of Protective and Regulatory Services, respectively. Makes conforming changes. SECTION 5.02. Amends Subchapter D, Chapter 531, Government Code, as added by Chapter 1033, Acts of the 75th Legislature, Regular Session, 1997, by adding Section 531.1235, as follows: Sec. 531.1235. ADVISORY BOARD; ADDITIONAL DUTIES; STATEWIDE GUARDIANSHIP SYSTEM. Requires the advisory board to advise HHSC and the Department of Protective and Regulatory Services with respect to a statewide guardianship program and develop a proposal for a statewide guardianship program, and review and comment on the guardianship policies of all agencies and recommend changes to the policies the advisory board considers necessary or advisable. Requires the advisory board to prepare an annual report with respect to the recommendations of the advisory board. Requires the advisory board to file the report with HHSC, the Department of Protective and Regulatory Services, the governor, the lieutenant governor, and the speaker of the house of representatives by December 15, of each year. SECTION 5.03. Amends Section 531.124, Government Code, by adding Subsection (c), to require the advisory board to annually review and comment on the minimum standards adopted under this section and the plan implemented under this section and is required to include its conclusions in the report submitted under Section 531.1235. SECTION 5.04. Requires the Board of Protective and Regulatory Services to appoint the additional members of the advisory board by October 1, 1999. ARTICLE 6. HEALTH AND HUMAN SERVICES OFFICE OF COMMUNITY TRANSPORTATION SERVICES SECTION 6.01. Amends Chapter 131, Human Resource Code, as follows: CHAPTER 131. New title: HEALTH AND HUMAN SERVICES OFFICE OF COMMUNITY TRANSPORTATION SERVICES Sec. 131.001. OFFICE. Provides that the Health and Human Services Office of Community Transportation Service (office), rather than Transportation and Planning Office, is in HHSC. Sec. 131.002. DEFINITIONS. Defines "commissioner," "health and human services agency," and "office." Sec. 131.003. POWERS AND DUTIES. Requires the office, with the assistance of the commissioner to exercise certain powers and duties, including creating a statewide coordination plan regarding a system of transportation for clients of agencies that provides for coordinated community-based services; establishing a standardized system of reporting and accounting to be used by all agencies providing client transportation; ensuring that information reported under a standardized system of reporting and accounting is available through the Texas Information and Referral Network; and coordinating the use of private, nonprofit entities that provide services at little or no cost beyond reimbursement for certain expenses. Redesignated from Section 131.002. Makes conforming changes. Sec. 131.004. OFFICE STAFF. Redesignated from Section 131.003. Makes conforming changes. Sec. 131.005. REPORTING AND ACCOUNTING SYSTEM. Requires each agency that provides, purchases, or otherwise funds transportation services for clients to comply with the standardized system of reporting and accounting, make changes to enable compliance, and submit an annual report of compliance. Sec. 131.006. IMPLEMENTATION OF STATEWIDE COORDINATION PLAN. Requires the office, in order to implement the statewide coordination plan, to review the rules, policies, contracts, grants, and funding mechanisms relating to transportation services of each agency that provides client transportation services to determine their consistency with the plan; make recommendations for revisions of those rules, policies, contracts, grants, and funding mechanisms inconsistent with the plan; and submit a biennial report to the governor, secretary of state, Legislative Budget Board, and the commissioner relating to the results of the review. Sec. 131.007. ADVISORY COMMITTEE ON COORDINATED TRANSPORTATION. Authorizes the office to create an advisory committee consisting of representatives of state agencies, transportation agencies, and nonprofit consumer groups. Sec. 131.008. MEMORANDUM OF UNDERSTANDING. Requires HHSC and the Texas Department of Transportation (TxDOT) to enter into a memorandum of understanding relating to functions performed by each agency that relate to the duties of the office. Requires the agencies to include provisions in the memorandum of understanding necessary to ensure that the agencies do not have duplicative authority, responsibilities, or activities in the area of transportation services for clients of health and human services agencies. Provides that the memorandum must include certain provisions. SECTION 6.02. Amends Section 459.003, Transportation Code, by amending Subsection (c) and adding Subsection (e), as follows: (c) Makes a conforming change. (e) Requires TxDOT to compile a statewide database to document transportation expenses and track the number of instances in which social service contract dollars are actually awarded to a transit operator as a result of compliance with this section. Requires TxDOT to make the information in the database available to HHSC. SECTION 6.03. Requires the office and the commissioner, not later than January 1, 2001, to create the statewide coordination plan required by Section 131.003, Human Resources Code. ARTICLE 7. EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES SECTION 7.01. Amends Subchapter B, Chapter 481, Government Code, by adding Section 481.025, as follows: Sec. 481.025. EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY PROGRAM. Provides that the Texas Department of Economic Development (department) is responsible for administering the Empowerment Zone and Enterprise Community grant program in this state. Requires the department to cooperate with appropriate federal and local agencies as necessary to administer the grant program. SECTION 7.02. Provides that effective September 1, 1999, administration of the Empowerment Zone and Enterprise Community grant program in this state is transferred from HHSC to the department. Requires the commissioner of health and human services and the governing board of the Texas Department of Economic Development to enter in to a memorandum of understanding as necessary to implement the transfer required by this section. ARTICLE 8. HEALTH CARE INFORMATION COUNCIL SECTION 8.01. Amends Section 531.001(4), Government Code, to redefine "health and human services agencies." SECTION 8.02. Amends section 108.002(4), Health and Safety Code, to redefine "data." SECTION 8.03. Amends Chapter 108, Health and Safety Code, by adding Section 108.0065, as follows: Sec. 108.0065. POWERS AND DUTIES OF COUNCIL RELATING TO MEDICAID MANAGED CARE. (a) Defines "commission" and "Medicaid managed care organization." (b) Authorizes HHSC to direct the Texas Health Care Information Council (council) to collect data under this chapter with respect to Medicaid managed care organizations. Requires the council to coordinate the collection of the data with the collection of data for health benefit plan providers, but authorizes the council, with approval of HHSC, to collect data in addition to the data otherwise required of health benefit plan providers. (c) Requires each Medicaid managed care organization to provide the data required by the council in the form required by the council or, if the data is also being submitted to HHSC or Medicaid operating agency, in the form required by the HHSC or Medicaid operating agency. (d) Provides that dissemination of data collected under this section is subject to Sections 108.010 (Collection and Dissemination of Provider Quality Data), 108.011 (Dissemination of Public Use Data and Council Publications), 108.012, (Computer Access to Data), 108.013 (Confidentiality and General Access to Data), 108.014 (Civil Penalty), and 108.0141 (Criminal Penalty), Health and Safety Code. (e) Requires HHSC to analyze the data collected in accordance with this section and sets forth the required use of the data. (f) Requires HHSC to report, no later than October 1 of each even-numbered year, to HHSC, the governor, the lieutenant governor, and the speaker of the house of representative with respect to the HHSC's conclusions under Subsection (e), recommendations for the improvement to the Medicaid managed care system, and any recommendations for legislation. (g) Authorizes the report made under Subsection (f) to be consolidated with any report made under Section 108.006(a)(9) (relating to assessing the quality of health care services). (h) Authorizes HHSC, using existing funds, to contract with an entity to comply with the requirements under Subsections (e) and (f). ARTICLE 9. MEDICAID SECTION 9.01. Amends Subchapter B, Chapter 12, Health and Safety Code, by adding Section 12.0123, as follows: Sec. 12.0123. EXTERNAL AUDITS OF CERTAIN MEDICAID CONTRACTORS. (a) Defines "Medicaid contractor." (b) Requires TDH to contract with an independent auditor to perform annual independent external financial and performance audits of any Medicaid contractor used by TDH in TDH's operation of a part of the state Medicaid program. (c) Requires TDH to ensure that audit procedures related to financial audits and performance audits are used consistently in audits under this section. (d) Provides that an audit required by this section must be completed before the end of the fiscal year immediately following the fiscal year for which the audit is performed. SECTION 9.02. Amends Section 533.003, Government Code, to require HHSC, in awarding contracts to managed care organizations, to consider the ability of organizations to process Medicaid claims electronically. SECTION 9.03. Amends Section 533.004, Government Code, by amending Subsection (a) and adding Subsection (e), as follows: (a) Makes conforming changes. (e) Requires HHSC, in providing health care services through Medicaid managed care to recipients in a health care service region, with the exception of the Harris service area for the STAR Medicaid managed care program, to contract with a managed care organization that meets certain criteria. SECTION 9.04. Amends Section 533.005, Government Code, to provide that a contract between a managed care organization and HHSC for the organization to provide health care services to recipients must contain a requirement that HHSC, on a certain date, inform the organization of the recipient's Medicaid certification, rather than recertification, date. SECTION 9.05. Amends Section 533.006(a), Government Code, to require HHSC to require that each managed care organization that contracts with HHSC to provide health care services to recipients in a region seek participation in the organization's provider network from each specialized pediatric laboratory in the region, including those laboratories located in children's hospitals, in addition to certain other health care providers. SECTION 9.06. Amends Section 533.007(e), Government Code, to make a conforming change. SECTION 9.07. Amends Section 533.0075, Government Code, to require HHSC to develop and implement an expedited process for determining eligibility for and enrolling pregnant women and newborn infants in managed care plans, ensure immediate access to prenatal services and newborn care for pregnant women and newborn infants enrolled in managed care plans, and temporarily assign Medicaid-eligible newborn infants to the traditional fee-for-service component of the state Medicaid program for a period not to exceed the earlier of 60 days or the date on which DHS has completed the newborn's Medicaid eligibility determination. SECTION 9.08. Amends Subchapter A, Chapter 533, Government Code, by adding Sections 533.012-533.015, as follows: Sec. 533.012. MORATORIUM ON IMPLEMENTATION OF CERTAIN PILOT PROGRAMS; REVIEW; REPORT. (a) Prohibits HHSC from implementing certain Medicaid pilot programs in a region for which HHSC has not met certain guidelines. (b) Requires HHSC to review any outstanding administrative and financial issues with respect to certain Medicaid pilot programs, review the impact of the Medicaid managed care delivery system on certain subjects, and evaluate the feasibility of developing a separate reimbursement methodology for public hospitals under a Medicaid managed care delivery system. (c) Requires HHSC, in performing its duties under Subsection (b), to seek input from the state Medicaid managed care advisory committee. Authorizes HHSC to coordinate the review required under Subsection (b) with any other study or review HHSC is required to complete. (d) Authorizes HHSC, notwithstanding Subsection (a), to implement certain Medicaid pilot programs in regions described by Subsection (a) if HHSC finds that outstanding administrative and financial issues with respect to the implementation of those programs in health care service regions have been resolved, and implementation of those programs in a region described by Subsection (a) would benefit both recipients and providers. (e) Requires HHSC, not later than November 1, 2000, to submit a report to the governor and the legislature that conveys certain information and makes recommendations with respect to certain Medicaid programs and systems. (f) Prohibits this section, to the extent possible, from being construed to affect the duty of HHSC to plan the continued expansion of certain Medicaid pilot programs in health care service regions described by Subsection (a) after July 1, 2001. (g) Provides that this section expires July 1, 2001. Sec. 533.013. PREMIUM PAYMENT RATE DETERMINATION; REVIEW AND COMMENT. (a) Requires HHSC, in determining premium payment rates paid to a managed care organization under a managed care plan, to consider costs and types of health care services, the number of plans and recipients, and the adequacy of specified premiums and fees. (b) Requires HHSC, in determining the maximum premium payment rates paid to a managed care organization that is licensed under the Texas Health Maintenance Organization Act, to consider and adjust for the regional variation in costs of services under the traditional fee-for-service component of the state Medicaid program, utilization patterns, and other factors that influence the potential for cost savings, with certain prohibitions. (c) Requires that the premium payment rate paid to a managed care organization that is licensed under the Texas Health Maintenance Organization Act be established by a competitive bid process but prohibits the rate from exceeding the maximum premium payment rates established by HHSC under Subsection (b). (d) Provides that Subsection (b) applies only to a managed care organization with respect to certain Medicaid managed care programs implemented in a health care service region after June 1, 1999. Sec. 533.014. PROFIT SHARING. Requires HHSC to adopt rules regarding the sharing of profits earned by a managed care organization through managed care plan providing health care services under a contract with HHSC under this chapter. Requires the deposit of any amount received by the state under this section in the general revenue fund for the purpose of funding the state Medicaid program. Sec. 533.015. COORDINATION OF EXTERNAL OVERSIGHT ACTIVITIES. Requires HHSC to coordinate all external oversight activities to minimize duplication of oversight of managed care plans under the state Medicaid program and disruption of operations under those plans. SECTION 9.09. Amends Chapter 533, Government Code, by adding Subchapter C, as follows: SUBCHAPTER C. STATEWIDE ADVISORY COMMITTEE Sec. 533.041. APPOINTMENT AND COMPOSITION. Requires HHSC to appoint a state Medicaid managed care advisory committee. Sets forth the composition of the advisory committee. Provides that the advisory committee must include a member of each regional Medicaid managed care advisory committee appointed by HHSC under Subchapter B. Sec. 533.042. MEETINGS. Requires the advisory committee to meet at least quarterly and provides that it is subject to Chapter 551 (Open Meetings), Government Code. Sec. 533.043. POWERS AND DUTIES. Requires the advisory committee to recommend to and assist HHSC and disseminate information to regional advisory committees. Sec. 533.044. OTHER LAW. Provides that the advisory committee, except as provided by this subchapter, is subject to Chapter 2110, Government Code. SECTION 9.10. Amends Section 2.07(c), Chapter 1153, Acts of the 75th Legislature, Regular Session, 1997, to require HHSC to study the feasibility of authorizing providers to reenroll in the program online or through other electronic means. Requires HHSC, if it determines that an online or other electronic method of reenrollment for providers is feasible, to develop and implement the electronic method of reenrollment for providers not later than September 1, 2000. Provides that a provider must reenroll in the state Medicaid program or make the necessary contract modifications not later than March 31, 2000, rather than September 1, 1999, to retain eligibility to participate in the program, unless HHSC implements under this subsection an electronic method of reenrollment for providers, in which event a provider must reenroll or make the contractual modifications not later than September 1, 2000. Authorizes HHSC, by rule, to extend a reenrollment deadline prescribed by this subsection if a significant number of providers, as determined by HHSC, have not met the reenrollment requirements by the applicable deadline. SECTION 9.11. Requires HHSC, not later than January 1, 2000, to implement the expedited process for determining eligibility for and enrollment of certain recipients in Medicaid managed care plans required by Section 533.0075, Government Code. Requires HHSC to report quarterly to the standing committees of the senate and house of representatives with primary jurisdiction over Medicaid managed care regarding the status of the expedited process described by this section. Requires HHSC to submit quarterly reports under this section until HHSC determines the process is fully implemented and functioning successfully. SECTION 9.12. Provides that this article, if no specific appropriation for it is provided in the General Appropriations Act, has no effect. ARTICLE 10. FINANCIAL ASSISTANCE AND SERVICE PROGRAMS SECTION 10.01. Amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.0127, as follows: Sec. 31.0127. COORDINATION OF SERVICES TO CERTAIN CLIENTS. (a) Provides that HHSC is the state agency designated to coordinate between DHS and another state agency providing child care services, Temporary Assistance for Needy Families work programs, and Food Stamp Employment and Training services to an individual or family who has been referred for programs and services by DHS. Sets forth the purpose of this section. (b) Requires HHSC to require a state agency providing program services described in Subsection (a) to comply with Chapter 531 (Health and Human Services Commission), Government Code, solely for the promulgation of rules relating to the programs described by Subsection (a); the expenditure of funds relating to the programs described by Subsection (a), within certain legal limitations; data collection and reporting relating to the programs described by Subsection (a); and evaluation of services relating to the programs described by Subsection (a). (c) Requires DHS and a state agency providing program services described by Subsection (a) to jointly develop and adopt a memorandum of understanding, subject to the approval of HHSC. Sets forth the required contents of the memorandum of understanding. (d) Requires HHSC, not later than January 15 of each odd-numbered year, to provide a report to the governor, lieutenant governor, and the speaker of the house of representatives that makes certain evaluations and recommendations. (e) Provides that Subsection (b) does not authorize HHSC to require a state agency, other than a health and human services agency, to comply with Chapter 531, Government Code, except as provided by Subsection (b). Provides that the authority granted under Subsection (b) does not affect Section 301.041 (Executive Director; Agency Personnel), Labor Code. (f) Provides that a state agency is not required to comply with this section, if the change in law made by this section with regard to a program or service conflicts with federal law or would have the effect of invalidating a waiver granted under federal law. (g) Provides that this section does not authorize HHSC to change the allocation or disbursement of funds allocated to the state under the Workforce Investment Act of 1998 in a manner that would result in the loss of exemption status. (h) Provides that this section does not authorize HHSC to transfer programs to or from DHS and another agency serving clients of the Temporary Assistance for Needy Families program or the federal food stamp program administered under Chapter 33 (Nutritional Assistance Programs) without explicit legislative authorization. (i) Prohibits HHSC and any state agency providing program services described by Subsection (a) from promulgating rules in accordance with Subsection (b) without holding a public hearing. SECTION 10.02. Requires HHSC and each state agency subject to Section 31.0127, Human Resources Code, to develop and adopt the memorandum of understanding required by that section. ARTICLE 11. LEGISLATIVE OVERSIGHT SECTION 11.01. Amends Chapter 531, Government Code, by adding Subchapter E, as follows: SUBCHAPTER E. HEALTH AND HUMAN SERVICES LEGISLATIVE OVERSIGHT Sec. 531.171. COMMITTEE DUTIES. (a) Requires the standing or other committees of the house of representatives and the senate that have jurisdiction over HHSC and other agencies relating to the implementation of this chapter, as identified by the speaker of the house of representatives and the lieutenant governor to perform certain duties. (b) Requires HHSC to provide copies of all required reports to the committees and provide the committees with copies of proposed rules before the rules are published in the Texas Register. Requires a health and human services agency, at the request of a committee or the commissioner, to provide other information to the committee, and report on agency progress in implementing statutory directives identified by the committee and the directives of HHSC SECTION 11.02. Requires the committees of the house of representatives and senate identified under Section 531.171, Government Code, to report to the governor, lieutenant governor, and the speaker of the house of representatives not later than December 31, 2000. Sets forth the required contents of the report. ARTICLE 12. APPLICATION OF ACT SECTION 12.01. Prohibits HHSC, if a change in law made by this Act with regard to any program or service conflicts with federal law, from requiring an agency to comply with the change with regard to that program or service, unless an appropriate federal waiver has been granted. SECTION 12.02. Requires HHSC, in consultation with the appropriate policymaking body, to ensure that certain obligations and guidelines are met in the application of this Act. ARTICLE 13. REPEALER; EFFECTIVE DATE; EMERGENCY SECTION 13.01. Repealer: Section 441.053(k) (defines "member agency"), Government Code; Section 531.0272 (Federal Funds), Government Code; and Section 532.011(c) (regarding the commissioner of the Texas Board of Mental Health and Mental Retardation), Health and Safety Code. SECTION 13.02. Effective date: September 1, 1999. SECTION 13.03. Emergency clause.