SRC-JXG C.S.H.B. 2641 76(R) BILL ANALYSIS


Senate Research CenterC.S.H.B. 2641
76R15336 DLF-DBy: Gray (Brown)
Human Services
5/11/1999
Committee Report (Substituted)


DIGEST 

In 1991, the 72nd Legislature created the Health and Human Services
Commission (HHSC) to coordinate the delivery of health and human services
in this state. Today, 14 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.
C.S.H.B. 2641 would continue HHSC until September 1, 2007, and would
increase HHSC's operational control over health and human services. 

PURPOSE

As proposed, C.S.H.B. 2641 sets forth the continuation and functions of the
Health and Human Services Commission. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Commissioner of Health and Human
Services in SECTION 2.01 (Section 531.0055(j), Government Code); board or
commission policymaking body in SECTION 2.01 (Section 531.0055(l),
Government Code); and to the Health and Human Services Commission  in
SECTIONS 3.06, and 3.13 (Section 531.034(d), Government Code) of this bill.

SECTION BY SECTION ANALYSIS

ARTICLE 1. GENERAL POWERS AND DUTIES OF 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
and to employ other personnel necessary to administer HHSC duties. Requires
the commissioner or the commissioner's designated representative to prepare
and maintain a written policy statement that implements a program of equal
employment opportunity to ensure that all personnel transactions are made
without regard to race, color, disability, sex, religion, age, or national
origin. Sets forth requirements for the policy statement. Requires the
policy statement described by Subsection (e) to be updated annually, be
reviewed by the state Commission on Human Rights for compliance with
Subsection (f)(1), and be filed with the governor's office. Deletes text
regarding procedures and reasonable methods in the commission. Makes
conforming changes. 

SECTION 1.03. Amends Section 531.011, Government Code, by adding Subsection
(g), to set forth standard language developed by the Sunset Advisory
Commission regarding complaint information. 

SECTION 1.04. Amends Chapter 531A, 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 or
another law if certain conditions exist. 
 
 
ARTICLE 2. RELATIONSHIP WITH HEALTH AND HUMAN SERVICES AGENCIES

SECTION 2.01. Amends Chapter 531A, Government Code, by adding Sections
531.0055, 531.0056, and 531.0057, 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) Sets forth requirements for HHSC. 

(c) Requires HHSC to implement the powers and duties given to HHSC under
Sections 531.0246, 531.0247, 2155.144, as added by Chapter 1045, Acts of
the 75th Legislature, Regular Session, 1997, and 2167.004, after
implementation of HHSC duties under Subsection (b).   

(d) Requires HHSC to implement the powers and duties given to HHSC under
Section 531.0248, after implementation of HHSC duties under Subsections (b)
and (c).  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 by Subsections (b), (c), and (d) in implementation of the
policies established by each agency's policymaking body, to manage and
direct the operation of each health and human services agency, and
supervise and direct the activities of each agency director. 

 (f) Sets forth the operational authority of the commissioner.

(g) Provides that the operational authority of the commissioner for
purposes of Subsection (e) at each health and human services 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, notwithstanding any other law.  
  
(h) Requires the commissioner to implement a program to evaluate and
supervise the daily operations of the agency, for each health and human
services agency. Requires the program to 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, for each health and human services agency. 

(i) Authorizes the commissioner to delegate a specific power or duty given
under Subsection (f) or (g) to an agency director, to facilitate the
operations of a health and human services agency in accordance with this
section. 

(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 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, notwithstanding any other provision of
this section.  Requires the commissioner and each 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.  Provides that this section
applies only to an agency director employed by the commissioner.
Authorizes an agency director employed by the commissioner to be employed
only with the concurrence of the agency's policymaking body and the
approval of the governor.  Requires the commissioner to obtain the services
of an agency director through a personal services contract and to establish
terms and conditions of employment in the contract, notwithstanding any
other provision of law.  Provides that contracts entered into under this
subsection expire on January 1, of each even-numbered year.  Provides that
an agency director employed by the commissioner serves at the pleasure of
the commissioner but may be discharged only with the concurrence of the
agency's policymaking body and only in accordance with the contract.
Requires the commissioner to employ or reemploy an agency director in
accordance with Subsection (b), on expiration of the contract.  Requires
the commissioner to employ the agency director on a timely basis in a
manner that ensures that the services of the agency director are
expediently obtained.  

Sec. 531.0057. AUTHORITY OVER RULEMAKING AT HEALTH AND HUMAN SERVICES
AGENCY. Requires a health and human services agency to notify the
commissioner before proposing a rule, notwithstanding any other law.
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. 

SECTION 2.02. Amends Sections 21.004, Human Resources Code, to provide that
the commissioner of human services (human services commissioner) exercises
all rights, powers, and duties imposed or conferred by law on the Texas
Department of Human Services (DHS) unless the right, power, or duty is
specifically delegated by the commissioner, rather than the Texas Board of
Human Services (TBHS), to DHS's agents or employees. Provides that the
human services commissioner is employed by the commissioner in accordance
with Section 531.0056, Government Code.  Requires a person to meet certain
requirements to be eligible for employment as commissioner.  Deletes text
regarding the human services commissioner serving at the pleasure of the
commissioner and the board. 

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 TBHS and the human services commissioner as provided by Section
531.0055, Government Code. Provides that to the extent a power or duty
given to TBHS or the human services commissioner by this title or another
law conflicts with Section 531.0055, Government Code, Section 531.0055
controls.  

SECTION 2.04. Amends Section 40.027, Human Resources Code, to make
conforming changes. Deletes text regarding the board. 

SECTION 2.05. Amends Chapter 40C, Human Resources Code, by adding Section
40.0505, as follows: 

Sec. 40.0505. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES. Provides that the commissioner has the powers and duties relating
to TBHS and the executive director as provided by Section 531.0055,
Government Code. Provides that to the extent a power or duty given to TBHS
or the executive director by this chapter or another law conflicts with
Section 531.0055, Government Code, Section 531.0055 controls. 

SECTION 2.06. Amends Chapter 73, Human Resources Code, by adding Section
73.0045,  

 Sec. 73.0045. POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Provides that the commissioner has the powers and duties
relating to TBHS and the executive director as provided by Section
531.0055, Government Code. Provides that to the extent a power or duty
given to TBHS or the executive director by this chapter or another law
conflicts with Section 531.0055, Government Code, Section 531.0055
controls. . 

SECTION 2.07. Amends Sections 73.0052(b) and (c), Human Resources Code, to
make conforming changes. 

SECTION 2.08. Amends Chapter 81, Human Resources Code, by adding Section
81.0055, to make conforming changes.  

SECTION 2.09. Amends Sections 81.008(a) and (b), Human Resources Code, to
make conforming changes. Deletes text regarding the commission. 

SECTION 2.10. Amends Sections 91.012(a), (b), and (d), Human Resources
Code, to make conforming changes.  Deletes text regarding commission. 

SECTION 2.11. Amends Chapter 91C, Human Resources Code, by adding Section
91.0205, to make conforming changes. 

SECTION 2.12. Amends Section 101.004(a), Human Resources Code, to make
conforming changes. Deletes text regarding the board. 

SECTION 2.13. Amends Chapter 101B, Human Resources Code, to make conforming
changes.  

SECTION 2.14. Amends Section 111.017, Human Resources Code, to make
conforming changes. Deletes text regarding the board. 

SECTION 2.15. Amends Chapter 111C, Human Resources Code, by adding Section
111.0505, to make conforming changes. 

SECTION 2.16. Amends Chapter 141C, Human Resources Code, by adding Section
141.0405, to make conforming changes. 

SECTION 2.17. Amends Sections 11.012(a), (b), (c), and (d), Health and
Safety Code, to make conforming changes.  Deletes text regarding the board. 

SECTION 2.18. Amends Chapter 12A, Health and Safety Code, by adding Section
12.0001, to make conforming changes.  

SECTION 2.19. Amends Section 461.011(a), Health and Safety Code, to make
conforming changes. 

SECTION 2.20. Amends Chapter 461, Health and Safety Code, by adding Section
461.0115, to make conforming changes. 

SECTION 2.21. Amends Sections 532.011(a), (b), (d), and (f), Health and
Safety Code, to delete text regarding the board. Deletes text subjecting
the commissioner to board rules and basic and general policies. Makes
conforming changes. 

SECTION 2.22. Amends Chapter 533A, Health and Safety Code, by adding
Section 533.0001, to make conforming changes.  

SECTION 2.23. Defines "agency director." Makes application of this Act
prospective, regarding the term of agency director.  Provides that an
agency director serving on the effective date of this Act continues to
serve in that position until the earlier of the date that certain
conditions are met. Provides that the commissioner is authorized to employ
the agency director of an agency added to those agencies defined as health
and human service agencies, with the concurrence of the appropriate
policymaking body.  Makes conforming changes. 

ARTICLE 3. SPECIFIC FUNCTIONS OF HEALTH AND HUMAN 
SERVICES COMMISSION

SECTION 3.01. Amends Section 531.021(b), Government Code, to set forth the
requirements of HHSC. Deletes text regarding the commission and the
commission adopting rules and standards. 

SECTION 3.02. Amends Chapter 531B, Government Code, by adding Sections
531.0246, 531.0247, 531.0248, and 531.0249, as follows: 

Sec. 531.0246. REGIONAL MANAGEMENT OF HEALTH AND HUMAN SERVICES AGENCIES.
Sets forth requirements for a health and human services agency under HHSC. 

Sec. 531.0247. ANNUAL BUSINESS PLAN. Requires HHSC to develop and implement
an annual business services plan for each health and human services region
that establishes performance objectives for all health and human services
agencies providing services in the region and measures agency effectiveness
and efficiency in achieving those objectives, subject to Section
531.0055(c). 

Sec. 531.0248. COMMUNITY-BASED SUPPORT SYSTEMS. Requires HHSC to assist
communities in this state in developing comprehensive, community-based
support systems for health and human services, subject to Section
531.0055(d). Requires HHSC 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, and
develop a system of blended funds to allow the community to customize
services to fit individual community needs, at the request of a community.
Requires a health and human services agency to provide resources and
assistance to a community as necessary to perform HHSC's duties under
Subsection (a), at the request of HHSC. Requires a health and human
services 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. Requires HHSC to
consider models used in other service delivery systems, including the
mental health and mental retardation service delivery system, in
implementing this section.  

Sec. 531.0249. ADVISORY COMMITTEE FOR LOCAL GOVERNMENTAL ENTITIES. Requires
HHSC to appoint an advisory committee composed of representatives of
governmental entities identified under Section 531.022(e). Sets forth the
requirements of the advisory committee. Prohibits a member of the advisory
committee from receiving compensation, but is entitled 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. 

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 health and
human services 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 text regarding the annual
operating budget of each health and human services agency.  

Sec. 531.0273. New heading: 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 shall direct the management of information resources at each health and
human services  agency. Sets forth the requirements of HHSC. Requires HHSC
to file the coordinated information resources strategic plan with the
governor, the lieutenant governor, and the speaker of the house of
representatives, no later than December 15 of each even-numbered year.
Requires HHSC to appoint an advisory committee composed of information
resources managers for state agencies and for private employers, and the
directors, executive directors, and commissioners of health and human
services agencies. Sets forth provisions regarding the advisory committee
advising HHSC. Prohibits a member of the advisory committee from receiving
compensation, but is entitled 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 change. 

SECTION 3.04. Amends Section 531.028, Government Code, as follows:

Sec. 531.028.  New heading:  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 health
and human services agencies to ensure that the money is spent in the most
efficient manner and certain requirements are completed. Requires HHSC to
prepare an annual report with respect to the results of the implementation
of this section. Requires the report to 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 no later than
December 15 of each year. Deletes text regarding formulas for the
distribution of funds for a health and human services agency. Makes
conforming change. 

SECTION 3.05. Amends Section 531.0312, Government Code, to require the
Texas Information and Referral Network (network) to include information
relating to transportation services provided to clients of state and local
agencies. Requires HHSC to cooperate with the Records Management
Interagency Coordinating Council (RMICC) and the General Services
Commission to establish a single method of categorizing information about
health and human services to be used by RMICC and the network. Requires the
network, in cooperation with the council and the General Services
Commission, to ensure that information relating to health and human
services is included in each residential telephone directory published by a
for-profit publisher and distributed to the public at minimal or no cost,
and the single method of categorizing information about health and human
services is used in a residential telephone directory described by
Subdivision (1). Requires a health and human services agency to provide the
network and RMICC 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
RMICC. Requires the health and human services agency to provide the
information in the format required by the network or RMICC and to update
the information at least quarterly or as required by the network or the
council. Makes conforming changes. 

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. Makes conforming changes. 

(d) Authorizes 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. Amends Section 441.053(j), Government Code, to redesignate
Subsection (j) of Section 441.203, Government Code, as added by Chapter
873, Acts of the 75th Legislature, Regular Session, 1997, to require RMICC
to cooperate with the network under Section 531.0312 to ensure  that RMICC
and the network use a single method of defining and organizing information
about health and human services.  

SECTION 3.08. Amends 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, redesignated as
Subchapter F, Chapter 531, Government Code, as follows: 

SUBCHAPTER F. TEXAS INTEGRATED ENROLLMENT SERVICES

Sec. 531.191. INTEGRATED ELIGIBILITY DETERMINATION. Deletes text regarding
Texas Integrated Enrollment Services Legislative Oversight Committee and a
plan to consolidate administrative and service delivery functions. Makes
conforming 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 established by Section 531.202. Requires
HHSC to provide the detailed cost-benefit analysis described by Section
531.191(d) to the legislative oversight committee, before awarding a
contract under that subsection. Authorizes HHSC to coordinate with the
legislative oversight committee to hold any hearing required under Section
531.191(d). Provides that this section expires September 1, 2002.  

SECTION 3.09. Amends Chapter 531D, Government Code, as added by Chapter
1116, Acts of the 75th Legislature, Regular Session, 1997, redesignated as
Subchapter G, Chapter 531, Government Code, and amends the subchapter
heading, as follows: 

SUBCHAPTER G. LEGISLATIVE OVERSIGHT FOR TEXAS INTEGRATED 
ENROLLMENT SERVICES 

SECTION 3.10. Amends Section 531.203(a), Government Code, to require the
committee to hold public hearings concerning the development and
implementation of the plan required by Subchapter F, rather than Section
9.12(a), Chapter 655, Acts of the 74th Legislature, Regular Session, 1995. 

SECTION 3.11. Amends Section 2155.144, Government Code, as added by Chapter
1045, Acts of the75th Legislature, Regular Session, 1997, as follows:  

(i) Requires HHSC to develop a single statewide risk analysis procedure.
Requires each health and human services agency to comply with the
procedure. Sets forth the requirements for the procedure.  

(j) Requires HHSC to publish a contract management handbook that
establishes consistent contracting policies and practices to be followed by
health and human services agencies, subject to Section 531.0055(c).
Provides that the handbook may include standard contract provisions and
formats for health and human services 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 a health and human services agency, subject to Section 531.0055(c).
Authorizes HHSC to use the database to monitor health and human services
agency contracts, and health and human service agencies to use the database
in contracting. Requires the 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 health and human services agency to ensure that amounts paid to
contractors are consistent and represent the best value for the state, in
implementing this duty. Authorizes HHSC to disapprove a procurement and
rate-setting procedure of a health and human services agency. Prohibits a
health and human services agency from using a procurement or rate-setting
procedure that has been disapproved by HHSC. Makes a conforming change. 

(m) Requires HHSC to develop and implement a statewide plan to ensure that
each entity that contracts with a health and human services 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.), subject to Section 531.0055(c). 

 (n) Makes a conforming change.

(o) Requires HHSC to prepare an annual report that assesses the compliance
of each health and human services agency with the requirements imposed
under this section and that identifies any material risk to the state or to
the clients of the health and human services agency that results from the
health and human service 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 no
later than December 15 of each year. 

 (p) Makes a conforming change.

SECTION 3.12. Amends Section 2167.004, Government Code, to prohibit HHSC
from entering into an emergency lease to serve the needs of a health and
human service agency unless the emergency lease is entered into under
criteria adopted by HHSC in consultation with HHSC. Sets forth the
requirements of the criteria. Redefines "health and human services agency."
Deletes text regarding the meaning of health and human services agency.
Makes a conforming change. 

SECTION 3.13. Authorizes  HHSC to adopt the rules required by Section
531.034(d), Government Code, as added by this article, no later than
January 1, 2000. 

SECTION 3.14. Requires HHSC to submit a report, no 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, and the
speaker of the house of representatives. Sets forth the required contents
of the report. Requires a health and human services 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 health and human services agency. Provides that this
section expires December 21, 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, and the speaker of the house of
representatives. 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 health and human services 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, and the speaker of the house of representatives. 

SECTION 3.17. Requires HHSC, the General Services Commission, and RMICC 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 RMICC to report by December 31, 2000, to the governor, the
lieutenant governor, and the speaker of the house of representatives. 

SECTION 3.18. Requires the state auditor to conduct initial reviews as
necessary to assess compliance under that subsection and complete those
reviews no later than September 1, 2001,  notwithstanding Section
2155.144(o), Government Code. 

SECTION 3.19.  Requires HHSC to study the feasibility of a subacute care
pilot project.  Requires DHS and TDH to cooperate with and assist HHSC in
this study.  Requires HHSC to consider certain factors, in conducting the
study.  Require HHSC to submit a report on the feasibility of a subacute
care pilot project to the governor, the lieutenant governor, the speaker of
the house of representatives, and the chair of each legislative committee
with jurisdiction over long-term care, no later than September 1, 2000.
Provides that this section expires September 1, 2001. 

ARTICLE 4. INVESTIGATIONS OF FRAUD, ABUSE AND EXPLOITATION

SECTION 4.01. Defines "commission" and "working group."

SECTION 4.02. Requires the working group to develop proposed definitions of
"abuse," "neglect," and "exploitation"; proposed minimum standards for
investigatory techniques for investigations of abuse, neglect, or
exploitation of a client; and proposed uniform data collection procedures.
Deletes text regarding investigation of reports in MHMR facilities and in
community centers. 

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 or representatives no later than November 1, 2000.  Requires the
report to include any recommendations, based on the results of the working
group, for changes in law HHSC considers necessary. Deletes text regarding
the uniform definitions of "abuse," "neglect," "exploitation." 

SECTION 4.05.  Prohibits the working group from including a representative
of the Texas Juvenile Probation Commission (TJPC)  and from including
recommendations relating to facilities operated by or under contract with
TJPC. 

ARTICLE 5. GUARDIANSHIP ADVISORY BOARD  

SECTION 5.01. Amends Sections 531.122(b) and (d), Government Code, to
provide that the Guardianship Advisory Board (advisory board) is composed
of one representative from each of the health and human services regions,
as defined by HHSC, three public representatives, and one representative of
the Texas Department of Protective and Regulatory Services (DPRS). Provides
that the representatives of the health and human services regions are
appointed by a majority vote of the judges of the statutory probate courts
in each region. Provides that the public representatives are appointed by
the commissioner and the representative of DPRS is appointed by the Board
of Protective and Regulatory Services (BPRS). Provides that a member of the
advisory board serves at the pleasure of a majority of the judges of the
statutory probate courts that appointed the member, of the commissioner, or
of BPRS, as appropriate. 

SECTION 5.02. Amends Chapter 531D, Government Code, as added by Chapter
1033, Acts of the75th Legislature, Regular Session, 1997, by adding Section
531.1235, as follows: 

Sec. 531.1235. ADVISORY BOARD; ADDITIONAL DUTIES; STATEWIDE GUARDIANSHIP
SYSTEM. Sets forth additional duties for the advisory board. Requires the
advisory board to prepare an annual report with respect to the
recommendations of the advisory board under Subsection (a). Requires the
advisory board to file the report with HHSC, DPRS, the governor, the
lieutenant governor, and the speaker of the house of representatives no
later than 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 Subsection (a)(1) and the plan implemented
under Subsection (a)(2) and to include its conclusions in the report
submitted under Section 531.1235. 

SECTION 5.04. Requires BPRS to appoint the additional member 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 Resources Code, as follows:

CHAPTER 131. New heading: HEALTH AND HUMAN SERVICES OFFICE OF COMMUNITY
TRANSPORTATION SERVICES 

Sec. 131.001. OFFICE. Provides that the Health and Human Service Office of
Community Transportation Services (office) is in HHSC. Deletes text
regarding transportation and planning. 

Sec. 131.002. DEFINITIONS. Defines "commissioner," "health and human
services agency," and "office." 

Sec. 131.003. POWERS AND DUTIES. Sets forth requirements for the office,
with assistance from the commissioner. Requires the office to coordinate
with HHSC  and health and human services agencies in implementing the goals
listed in Section 531.022(c), Government Code. Deletes text regarding
Article 4413(502), V.T.C.S. Makes conforming changes. 

 Sec. 131.004. OFFICE STAFF. Makes a conforming change.

Sec. 131.005. REPORTING AND ACCOUNTING SYSTEM. Sets forth the requirements
for each health and human services agency that provides, purchases, or
funds transportation services. 
 
Sec. 131.006. IMPLEMENTATION OF STATEWIDE COORDINATION PLAN. Requires the
office to provide certain services, in order to implement the statewide
coordination plan created by the office under Section 131.003(a)(2). 

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 duplicate authority, responsibilities, or activities in the area
of transportation services for clients of health and human services
agencies. Sets forth the requirements for the memorandum. 

SECTION 6.02. Requires the office and the commissioner, no later than
January 1, 2001, to create the statewide coordination plan required by
Section 131.003(a)(2), Human Resources Code.  

ARTICLE 7. EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES 

SECTION 7.01. Amends Chapter 481B, 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 (TDED) is the agency of
this state responsible for administering the Empowerment Zone and
Enterprise Community grant program in the state. Requires TDED to cooperate
with appropriate federal and local agencies as necessary to administer the
grant program.  

SECTION 7.02. Provides that effective September 1, 1999,  the
administration of the Empowerment Zone and Enterprise Community grant
program in this state is transferred from HHSC to TDED. Requires the
commissioner and the governing board of TDED to enter into 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 service agencies." Makes conforming changes. 

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
(THCIC) 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
with the approval of HHSC may 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 HHSC or Medicaid  operating agency.  

(d) Provides that dissemination of data collected under this section is
subject to Sections 108.010, 108.011, 108.012, 108.013, 108.014, and
108.0141. 

(e) Sets forth requirements for HHSC to analyze and use the data collected. 

(f)  Requires HHSC to report to the governor, the lieutenant governor, and
the speaker of the house of representatives with respect to certain
recommendations, no later than October 1 of each even-numbered year.  
 
(g) Authorizes the report made under Subsection (f) to be consolidated with
any report made under Section 108.006(a)(9). 

(h) Authorizes HHSC to contract with an entity to comply with the
requirements under Subsections (e) and (f), using existing funds 

ARTICLE 9. FINANCIAL ASSISTANCE AND SERVICE PROGRAMS

SECTION 9.01. Amends Chapter 31A, Human Resources Code, by adding Section
31.027, as follows: 

Sec. 31.027.  COORDINATION OF SERVICES TO CERTAIN CLIENTS. (a) Provides
that HHSC is the state agency designated to coordinate between TDH and
another state agency providing child care services, Temporary Assistance
for Needy Families (TANF) work programs, and Food Stamp Employment and
Training services to an individual or family who has been referred for
programs and services by TDH, in order to ensure efficient delivery of
appropriate programs and services.  

 (b) Sets forth compliance requirements  for state agencies set by HHSC.

(c) Requires HHSC and a state agency that is providing programs and
services subject to coordination under Subsection (a) to jointly develop
and adopt a memorandum of understanding outlining measures to be taken to
increase the number of individuals receiving TANF cash assistance who are
using the Job Training Partnership Act program or its  successor program. 

 (d) Sets forth recommendations for the report.


(e) Provides that the state agency is not required to comply with this
section with regard to that program or service, if the change in law made
by this section with regard to any program or service conflicts with
federal law or would have the  effect of invalidating an exemption granted
under federal law. 

(f) 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 (29 U.S.C. Section 2801 et seq.) in a
manner that would result in the loss of exemption status. 

SECTION 9.02.  Requires HHSC and each state agency that is subject to
Section 31.0127(c), Human Resources Code, as added by this article, to
develop and adopt the memorandum of understanding required by that
subsection, no later than October 1, 1999. 

ARTICLE 10. LEGISLATIVE OVERSIGHT

SECTION 10.01. Amends Chapter 531, Government Code, by adding Subchapter E,
as follows: 

SUBCHAPTER E. HEALTH AND HUMAN SERVICES LEGISLATIVE OVERSIGHT

Sec. 531.171. COMMITTEE DUTIES.  Sets forth the health and human services
legislative oversight committee (committee) duties.  Requires the committee
to provide copies of all required reports to the committees and to provide
the committees with other information upon request.  Requires a health and
human services agency to provide information to the committee relating to
the health and human services system and report on agency progress in
implementing statutory directives identified by the committee and the
directives of HHSC, at the request of a committee or the commissioner. 
 
ARTICLE 11. APPLICATION OF ACT

SECTION 11.01.  Prohibits HHSC from requiring an agency to comply with the
change with regard to that program or service, if a change in law made by
this Act with regard to any program or service conflicts with federal law. 

SECTION 11.02.  Sets forth requirements for HHSC.

ARTICLE 12. REPEALER; EFFECTIVE DATE; EMERGENCY

SECTION 12.01. Repealer: Section 441.053(k), Government Code (defines
"member agency"). 
       Repealer: Section 531.0272, Government Code (federal funds).
      Repealer: Section 532.011(c), Health and Safety Code (The
commissioner holds      office at the will of the board). 

SECTION 12.02. Effective date: September 1, 1999.

SECTION 12.03. Emergency clause.    

 







 
SUMMARY OF COMMITTEE CHANGES

SECTION 1.02. 

Redesignates proposed SECTION 1.03 as SECTION 1.02.  Deletes text regarding
the commissioner being removed by the governor. 

SECTION 1.03.

 Redesignates proposed SECTION 1.04 as SECTION 1.03.

SECTION 1.04.

Redesignates proposed SECTION 1.05 as SECTION 1.04.  Deletes text regarding
public hearings in certain counties.  Deletes proposed SECTION 1.06. 

SECTION 2.01.

Amends Section 531.0055(b), Government Code, to require HHSC to monitor and
ensure the effective use of all federal funds received by a health and
human services agency in accordance with Section 531.028 and the General
Appropriations Act.  Deletes text regarding Section 531.0056.  

Amends Section 531.0055(d), Government Code, to provide 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." 

Amends Section 531.0055(l), Government Code, to delete text prohibiting a
policymaking body and the commissioner from performing any power or duty or
adopting any rule or policy that expands or creates a right, power, or duty
beyond those granted or created by a state or federal statute.  

Amends Section 531.0056, Government Code, regarding employment of agency
director. Redesignates proposed Section 531.0056 as Section 531.0057. 

SECTION 2.02.

Amends Section 21.004(b), Human Resources Code, to provide that the human
services commissioner is employed, by the commissioner in accordance with
Section 531.0056, Government Code.  Deletes text regarding the human
services commissioner to serve at the pleasure of the commissioner and be
appointed by the board with the approval of the governor.   

Adds SECTION 21.004(c), Human Resources Code, to require a person to meet
certain requirements to be eligible for employment as commissioner.  

SECTION 2.04.

Amends Section 40.027, Human Resources Code, to reinstate previously
deleted text requiring the commissioner to employ the executive director.
Makes conforming changes. 

SECTION 2.07.

 Amends Section 73.0052(b), Human Resources Code, to make conforming
changes. 

SECTION 2.09.
 
 Amends Section 81.008(a), Human Resources Code, to make conforming changes.

SECTION 2.10.

 Amends Section 91.012(a), Human Resources Code, to make conforming changes.

SECTION 2.12.

 Amends Section 101.004(a), Human Resources Code, to make conforming
changes. 

SECTION 2.14.

 Amends Section 111.017(a) and (b), Human Resources Code, to make
conforming changes. 

SECTION 2.15.

Amends Section 111.0505, Human Resources Code, to provide that the
commissioner has the powers and duties relating to HHSC and commissioner as
provided by Section 531.0055, Government Code.  Provides that to the extent
a power or duty given to HHSC or commissioner by this chapter or another
law conflicts with Section 531.0055, Government Code, Section 531.0055
controls. 

SECTION 2.17.

 Amends Section 11.012, Health and Safety Code, to make conforming changes.

SECTION 2.19.

 Amends Section 461.011(a), Health and Safety Code, to make conforming
changes. 

SECTION 2.21.

Amends Section 532.011, Health and Safety Code, to make conforming changes.
Deletes text regarding Subsection (c). 

SECTION 2.23.
 
Amends SECTION 2.23, to provide that an agency director serving on the
effective date of this Act continues to serve in that position until the
earlier of the date that certain conditions are met.  Provides that the
commissioner is authorized to employ the agency director of an agency added
to those agencies defined as health and human service agencies, with the
concurrence of the appropriate policymaking body.  Makes conforming
changes. 

SECTION 3.01.

Amends Section 531.021(b), Government Code, to require HHSC to establish
requirements for and define the scope of the ongoing evaluation of the
Medicaid managed care system. 

SECTION 3.02.

 Amends Section 531.0246, Government Code, to delete Subsection (4).

SECTION 3.04

Amends Section 531.028, Government Code, to require HHSC 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. 

SECTION 3.07.
 
Redesignates proposed SECTION 3.08 as SECTION 3.07.  Deletes text
authorizing HHSC to adopt the rules required by Section 531.034(d),
Government Code, no later than January 1, 2000. 

SECTION 3.08.

 Redesignates proposed SECTION 3.09 as SECTION 3.08.

SECTION 3.09.

 Redesignates proposed SECTION 3.10 as SECTION 3.09.

SECTION 3.11.

 Redesignates proposed SECTION 3.10 as SECTION 3.11.

SECTION 3.12

 Redesignates proposed SECTION 3.13 as SECTION 3.12.

SECTION 3.13.

Authorizes HHSC to adopt the rules required by Section 531.034(d),
Government Code as added by this article, no later than January 1, 2000.  

SECTION 3.14.

Amends SECTION 3.14(a), to delete text regarding the presiding officer of
the Health and Human Services Legislative Oversight Committee. 

SECTION 3.15.

Amends SECTION 3.15(a), to make conforming changes.

SECTION 3.16. 

Amends SECTION 3.16, to require HHSC to develop a proposed plan and
schedule for colocating offices and consolidating support services in
accordance with Section 531.0246, Government Code, as added by this
article.  Makes a conforming change. 

SECTION 3.17.

 Amends SECTION 3.17, to make conforming changes.

SECTION 3.19.

Adds SECTION 3.19, to require HHSC to study the feasibility of a subacute
care pilot project.  Requires DHS and TDH to cooperate with and assist HHSC
in this study.  Requires HHSC to consider certain factors, in conducting
the study.  Require HHSC to submit a report on the feasibility of a
subacute care pilot project to the governor, the lieutenant governor, the
speaker of the house of representatives, and the chair of each legislative
committee with jurisdiction over long-term care, no later than September 1,
2000.  Provides that this section expires September 1, 2001. 

SECTION 4.01.

Adds SECTION 4.01, to define "commission" and "working group."  Deletes
text regarding investigations of abuse and neglect; uniform use of terms. 
 
 SECTION 4.02.

Amends SECTION 4.02, to require HHSC to identify each health and human
services 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 cover under Section
261.401, Family Code, or Section 48.082, Human Resources Code, and to
convene a working group of representatives of those agencies and advocates
for the affected clients, except as provided by Section 4.05 of this
article. Deletes text regarding agency investigation. 

SECTION 4.03.

Requires the working group to develop proposed definitions of "abuse,"
"neglect," and "exploitation"; proposed minimum standards for investigatory
techniques for investigations of abuse, neglect, or exploitation of a
client; and proposed uniform data collection procedures.  Deletes text
regarding investigation of reports in MHMR facilities and in community
centers. 

SECTION 4.04.

Amends SECTION 4.04, to require HHSC to present a report on the results of
the working group to the governor, the lieutenant governor, and the speaker
of the house or representatives no later than November 1, 2000.  Requires
the report to include any recommendations, based on the results of the
working group, for changes in law HHSC considers necessary. Deletes text
regarding the uniform definitions of "abuse," "neglect," "exploitation." 

SECTION 4.05.

Adds SECTION 4.05, to prohibit the working group from including a
representative of the Texas Juvenile Probation Commission (TJPC)  and from
including recommendations relating to facilities operated by or under
contract with TJPC. 

SECTION 5.04.

 Amends SECTION 5.04, to make a conforming change.

SECTION 6.01.

Amends Section 131.008(b), Human Resources Code, to require the memorandum
to include a requirement that TxDOT participate and assist in the
collection of information about transportation service funding from local
social service providers and make any database with that information
available to HHSC. 

SECTION 8.03.

Amends Section 108.0065, Health and Safety Code, to authorize HHSC to
direct the 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 with the approval of HHSC may collect data in addition to
the data otherwise required of health benefit plan providers.  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
HHSC or Medicaid operating agency.  Sets forth requirement for HHSC to
analyze the data collected.  Requires HHSC to report to the governor, the
lieutenant governor, and the speaker of the house of representatives with
respect to certain recommendations, no later than October 1 of each
even-numbered year.  Authorizes HHSC to contract with an entity to comply
with the requirement under Subsections (e) and (f), using existing funds.
Deletes text regarding council and SECTION 8.04. 
 
SECTION 9.01.

Amends Chapter 31A, Human Resources Code, by adding Section 31.027,
regarding coordination of services to certain clients. 
 
SECTION 9.02.

Adds SECTION 9.02, to require HHSC and each state agency that is subject to
Section 31.0127(c), Human Resources Code, as added by this article, to
develop and adopt memorandum of understanding required by that subsection,
no later than October 1, 1999. 

SECTION 10.01.

Adds Chapter 531E, Government Code, regarding the health and human services
legislative oversight.  

SECTION 10.02.

 Redesignates the proposed effective date of September 1, 1999 to SECTION
12.02. 

SECTION 10.03.

 Redesignates the proposed emergency clause to SECTION 12.03.

SECTION 11.01.

Adds SECTION 11.01, to prohibit HHSC form requiring an agency to comply
with the change with regard to that program or service, if a change in law
made by this Act with regard to any program or service conflicts with
federal law. 

SECTION 11.02.

 Adds SECTION 11.02, to set forth requirements for HHSC.

SECTION 12.01.

Adds a repealer regarding Section 532.011(c), Health and Safety Code (The
commissioner holds office at the will of the board). 

SECTION 12.02.

 Adds the effective date of September 1, 1999.

SECTION 12.03.

 Adds the emergency clause.