SRC-DPW H.B. 2877 76(R) BILL ANALYSIS Senate Research Center H.B. 2877 76R12566 CLG-DBy: Maxey (Ratliff) State Affairs 5/13/1999 Engrossed DIGEST The Texas Integrated Enrollment and Services (TIES) project is part of the state's effort to improve the delivery of critical health, human, and employment services by integrating eligibility and enrollment functions of many health and human service agencies. The TIES interagency management team recommends that temporary service retirement options be considered by the legislature in order to lessen the impact of staff reductions associated with the implementation of TIES. This bill would propose the colocation of TIES and other state eligibility and enrollment staff with providers of corresponding health, human, and workforce services. PURPOSE As proposed, H.B. 2877 sets forth guidelines for the lease of certain facilities and the retirement options and health coverage of certain employees in connection with implementation of integrated enrollment services for health and human services programs. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 531B, Government Code, by adding Sections 531.051 and 531.052, as follows: Sec. 531.051. LEASES AND SUBLEASES OF CERTAIN OFFICE SPACE. Authorizes a health and human services agency, with approval from the Health and Human Services Commission (commission), or the Texas Workforce Commission (TWC), or any other state agency that administers employment services programs to lease office space to a private service entity or sublease office space from a private service entity that provides publicly funded health, human, or workforce services to enable agency eligibility and enrollment personnel to work with the entity if client access to services would be enhanced and the colocation of offices would improve the efficiency of the administration and delivery of services. Provides that Chapters 2165D and E do not apply to office space leased or sublease by a state agency from a private service entity. Provides that Chapter 2167B does not apply to leases or subleases office space for a private service entity. Grants a state agency the authority to enter into a lease or sublease and negotiate the terms of the lease or sublease. Authorizes a state agency to share business resources with a private service entity that enters into a lease or sublease agreement with the agency, to the extent authorized by federal law. Sec. 531.052. ASSUMPTION OF LEASES FOR IMPLEMENTATION OF TEXAS INTEGRATED ENROLLMENT SERVICES INITIATIVE. Authorizes a health and human services agency, with approval from the commission, or TWC, or any other state agency that administers employment services programs, to assume a lease from a Texas Integrated Enrollment Services initiative contractor or subcontractor for certain purposes. Provides that Chapter 2167B does not apply to a state agency that assumes a lease from a contractor or subcontractor under this section. SECTION 2. Amends Section 814.1041, Government Code, by amending Subsections (a) and (f) and adding Subsection (g) to provide that this section only applies to employees whose positions with the Texas Department of Health (TDH) are eliminated as a result of contracts with private service providers. Provides that the retirement option under this section is not available to an employee of TDH or the Texas Department of Human Services (TDHS) who receives a cash payment under an incentive program by either agency with respect to certain employees whose positions are eliminated because of privatization or other reductions (privatization incentive). Provides that this Act only applies to positions eliminated by privatization before September 1, 2003, rather than 1999. SECTION 3. Amends Article 3.50-2, Vernon's Texas Insurance Code., by adding Section 3B, as follows: Sec. 3B. CERTAIN EMPLOYEES MAY ELECT TO PARTICIPATE. Provides that this section only applies to a person who separates from state service and receives a cash payment under a privatization incentive. Entitles a person, after the effective date of the person's separation from state service, to receive state contributions required to provide health coverage for two months as described. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.