SRC-DBM S.B. 369 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 369
76R837  KLA-DBy: Zaffirini
Human Services
4/19/1999
As Filed


DIGEST 

The Department of Human Services (department) was created by the
Legislature in 1939 and is primarily responsible for determining
eligibility and certifying that clients are eligible to receive long term
care and public assistance benefits.  The department administers more than
30 state and federally-funded programs designed to benefit low-income
families and children, people who are elderly or disabled, and victims of
family violence.  The department has approximately 15,840 employees and a
budget of $3.5 billion for fiscal year 1999 and is governed by a six-member
Board of Human Services.  The department is subject to the Sunset Act and
will be abolished on September 1, 1999 unless continued by the Legislature.
As a result of its review of the Department of Human Services, the Sunset
Advisory Commission recommended continuation of the department and several
statutory modifications.   

PURPOSE

As proposed, S.B. 369 sets forth provisions for the continuation and
functions of the Texas Department of Human Services. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Department of Human Services
in SECTIONS 5, 11, and 12 (Section 22.0071, Chapter 22, Human Resources
Code; and Sections 32.0212 and 32.0251, Chapter 32B, Human Resources Code)
and the secretary of the state in SECTION 29(b) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 21.002, Human Resources Code, to provide that
the Texas Department of Human Resources (department) is abolished and that
this title, excluding any chapter that relates to a state agency other than
the department, expires on September 1, 2007, unless continued as provided
by Chapter 325, Government Code. 

SECTION 2.  Amends Sections 21.003(b) and (c), Human Resources Code, to add
standard language developed by the Sunset Advisory Commission requiring the
governor to designate the presiding officer of the Texas Board of Human
Services (board).  Requires one member of the board to be a licensed
physician with expertise in geriatric care and another member must be a
health care professional who is licensed, certified, or regulated by a
health care regulatory agency. 

SECTION 3.  Amends Chapter 21, Human Resources Code, by adding Section
21.0033, to add standard language developed by the Sunset Advisory
Commission requiring the members of the board to complete training before
assuming their duties. 

SECTION 4.  Amends Chapter 21, Human Resources Code, by adding Section
21.0061, as follows: 

Sec. 21.0061.  REGIONAL PERFORMANCE AGREEMENTS WITH LOCAL ADMINISTRATIVE
UNITS.  Requires the Commissioner of Human Services (commissioner) and the
administrator of each local administrative unit of the department to enter
into a regional performance agreement that includes goals, objectives, and
performance criteria established by the commissioner under Subsection (b)
of the unit.  Requires the  commissioner to establish and periodically
update goals, objectives, and performance criteria for each local
administrative unit of the department.  Sets forth the what the goals,
objectives, and performance criteria must provide.  Sets forth, in
developing the goals, objectives, and performance criteria under Subsection
(b), that there be certain parties the commissioner is required to seek
input from.  Requires the commissioner to assess the performance of each
local administrative unit based on the goals, objectives, and performance
criteria in the regional performance agreement between the commissioner and
the administrator of that unit.  Requires the commissioner to include the
results of  each assessment in the report on the operation and
administration of the department required under Section 21.011.  Requires
the commissioner to consider the goals, objectives, and performance
criteria in each regional performance agreement and the performance of each
local administrative unit based on those standards when evaluating and
establishing regional funding allocations.  Requires the department to
inform health and human services agencies, as defined by Section 531.001,
Government Code, and the general public in each region of the contents of
the regional performance agreement for that region. 

SECTION 5.  Amends Chapter 22, Human Resources Code, by adding Section
22.0071, as follows: 

Sec. 22.0071.  CONTRACTS FOR COMMUNITY CARE SERVICES.  Requires the
department, by rule, to develop and implement a system of selective
contracting with providers for the delivery of department community care
services.  Requires the department to ensure that more than one provider is
available in each region of the state.  Prohibits the department from using
an open-enrollment contracting system under which any provider who meets
department criteria is entitled to contract with the department.  Sets
forth the required information to be included in a contract for the
delivery of community care services under a department program.  Requires
the department to monitor a community care provider's performance under a
contract for the delivery of community care services.  Sets forth the
required performance monitoring techniques of the department. 

SECTION 6.  Amends Section 22.018, Human Resources Code, as follows:

Sec. 22.018.  New heading.  COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE
HEARINGS.  Requires, except as provided by Subsection (e), the department
and the chief administrative law judge of the State Office of
Administrative Hearings (SOAH) to adopt a memorandum of understanding under
which SOAH, on behalf of the department, conducts all contested case
hearings authorized or required by law to be conducted by the department
under the administrative procedure law, Chapter 2001, Government Code.
Requires the memorandum of understanding to require the chief
administrative law judge, the department, and the commissioner to cooperate
in connection with a contested case hearing and may authorize SOAH to
perform any administrative act, including giving of notice, that is
required to be performed by the department or commissioner.  Requires the
administrative law judge who conducts a contested case hearing for SOAH on
behalf of the department to take certain actions.  Requires the department
by interagency contract to reimburse SOAH for the costs incurred in
conducting contested case hearings by the department.  Authorizes the
department to pay an hourly fee for the costs of conducting those hearings
or a fixed annual fee negotiated biennially by the department and SOAH to
coincide with the department's legislative appropriations request.
Provides that a reference in law to the hearings division of the department
is considered to be a reference to SOAH when used in relation to a
contested case hearing under the administrative procedure law, Chapter
2001, Government Code. 

SECTION 7.  Amends Section 31.0032, Human Resources Code, by amending
Subsection (a) and adding Subsection (d), to require the department to
immediately apply appropriate sanctions or penalties regarding the
assistance provided to or for a person under this chapter, if, after an
investigation, the department determines that a person is not complying
with a requirement of the responsibility agreement required under Section
31.0031.  Requires the department to give the highest priority to the
administrative processing of sanctions or penalties applied under this
section so that the department's records of the affected person promptly
reflect application of the sanctions or penalties. 
 
SECTION 8.  Amends Section 31.0095, Human Resources Code, as follows:

 Sec. 31.0095.  New heading:  EMPLOYABILITY NEEDS ASSESSMENT.

SECTION 9. Amends Section 31.010, Human Resources Code, as follows:

Sec. 31.010.  New heading:  SUPPORT SERVICES RELATED TO EMPLOYABILITY OF A
RECIPIENT. 

SECTION 10.  Amends Chapter 31A, Human Resources Code, by adding Section
31.011, as follows: 

Sec. 31.011.  PERSONAL AND FAMILIAL NEEDS ASSESSMENT AND SUPPORT SERVICES.
Requires the department to assist a recipient of financial assistance in
assessing the needs, other than employability needs assessed under Section
31.0095, of the recipient and the recipient's family that, if addressed,
would help the recipient and the recipient's family to attain and retain
the capability of independence and self-care.  Requires the department,
based on the needs assessment under this section, to refer a recipient and
a recipient's family to appropriate preventive and support services
provided by the department or any other public or private entity.  Sets
forth the preventive and support services to which the department is
authorized to refer a recipient and a recipient's family under this
section. 

SECTION 11.  Amends Chapter 32B, Human Resources Code, by adding Section
32.0212, as follows: 

Sec. 32.0212.  CONTRACTS FOR NURSING FACILITY CARE.  Requires the
department, by rule, to develop minimum performance standards for a nursing
facility that contracts with the department for the delivery of medical
assistance.  Sets forth the required performance data collected by the
department to be used in developing the minimum performance standards.
Requires a contract with the department for the delivery of medical
assistance by a nursing facility to include the performance standards
developed under Subsection (a).  Sets forth the ways in which the
department is required to address a nursing facility's failure to meet
minimum performance standards. 

SECTION 12.  Amends Chapter 32B,  Human Resources Code, by adding Section
32.0251, as follows: 

Sec. 32.0251.  COMMUNITY CARE SERVICES FOR THE ELDERLY AND DISABLED.
Requires the department to inform an applicant for medical assistance
seeking nursing facility care of any community care services that may be
available to the applicant as an alternative to nursing facility care.
Requires the department, by rule, to develop and implement a process of
presumptive eligibility determination for appropriate elderly or disabled
applicants for community care services.  Requires the department to conduct
an initial assessment of an elderly or disabled applicant for community
care services to determine the degree and type of services needed by the
applicant.  Requires the department, based on the assessment, to design a
plan of care for the applicant.  Requires the plan of care to be adjusted
promptly as necessary based on any change in the applicant's physical
condition or need for services, whether identified by the department during
a periodic reassessment of the applicant's condition or at any other time.
Requires the department to maintain a waiting list prioritized by the level
and degree of need of each applicant who is eligible for the services, if
community care services are not readily available for an elderly or
disabled applicant because of a high demand for services.  Sets forth the
required assignment of a priority level criteria to be used by the
department in placing an applicant on a waiting list. 

SECTION 13.  Amends Chapter 51, Human Resources Code, as follows:

 Chapter 51.  New heading.  FAMILY VIOLENCE CENTERS.

 SECTION 14.  Amends Section 51.002, Human Resources Code, to define
"family violence nonresidential center," and "family violence
nonresidential center."  Makes conforming changes. 

SECTION 15.  Amends Section 51.003, Human Resources Code, to require the
department to contract for services with family violence centers with
consideration given to geographic distribution and need. Requires
activities contracted for under this subsection to include, rather than to
require, the provision of technical assistance and training for family
violence centers.  Authorizes the department, to contract for certain
provisions.  Requires the department to award a contract made under
Subsection (b) through a competitive bidding process.  Makes conforming
changes. 

SECTION 16.  Amends Section 51.004, Human Resources Code, to require to be
eligible for a contract under Section 51.003(a), a family violence shelter
center to:  provide temporary lodging and social  services for adults and
their children who have left or have been removed from the family home
because of family violence; have been in actual operation offering shelter
services 24 hours a day with a capacity for not less than five persons for
at least nine months before the date on which the contract is awarded; and
submit contract application on forms prescribed by the department.   Sets
forth certain actions a family violence nonresidential center is required
to provide to be eligible for a contract under Section 51.003(a).  Sets
forth the department's required considerations of certain factors in
awarding contracts under Section 51.003(a).  Requires the department to
include a family violence nonresidential center in the noncompetitive
procurement procedure under Subsection (d), if a family violence
nonresidential center provides services that would not be otherwise
available in the service area.  Deletes text requiring, to be eligible for
a contract under Section 51.003(a) of this code, pa public or private
nonprofit organization to operate a family violence center that provides
certain lodging and social services for adults and their children.  Deletes
text requiring a contract application to be submitted on forms prescribed
by the department.  Makes conforming changes. 

SECTION 17.  Amends Section 51.005, Human Resources Code, to make
conforming changes. 

SECTION 18.  Amends Section 51.006, Human Resources Code, to make a
conforming change. 

SECTION 19.  Amends Section 51.007, Human Resources Code, to make a
conforming change. 

SECTION 20.  Amends Chapter 51, Human Resources Code, by adding Section
51.012, as follows: 

Sec. 51.012.  COORDINATION OF SERVICES.  Requires the department to
coordinate the services provided under this chapter with other services for
victims of family violence provided by the Department of Protective and
Regulatory Services. 

SECTION 21.  Amends Section 242.309, Health and Safety Code, as added by
Section 1.01,Chapter 1280, 75th Legislature, Regular Session, 1997
(effective until federal determination of failure to comply with federal
regulations), to add standard language developed by the Sunset Advisory
Commission regarding provisional license. 
 
SECTION 22.  Amends Section 242.310, Health and Safety Code, as added by
Section 1.01,Chapter 1280, 75th Legislature, Regular Session, 1997
(effective until federal determination of failure to comply with federal
regulations), to add standard language developed by the Sunset Advisory
Commission regarding license renewal.         

SECTION 23.  Amends Section 242.314, Health and Safety Code, as added by
Section 2.01,Chapter 1280, 75th Legislature, Regular Session, 1997
(effective until federal determination of failure to comply with federal
regulations), to add standard language developed by the Sunset Advisory
Commission regarding provisional license. 

SECTION 24.  Amends Section 242.315, Health and Safety Code, as added by
Section 2.01,Chapter 1280, 75th Legislature, Regular Session, 1997
(effective until federal determination of failure to comply with federal
regulations), to add standard language developed by the Sunset Advisory
Commission regarding license renewal. 

SECTION 25.  Amends Chapter 242, Health and Safety Code, by adding
Subchapter Q, as follows: 

SUBCHAPTER Q.  PUBLIC ACCESS TO QUALITY OF SERVICE INFORMATION

Sec. 242.901.  COMPILATION OF QUALITY OF SERVICE INFORMATION.  Requires the
department to compile and periodically update regulatory and service
quality information regarding nursing facilities licensed under this
chapter for review by the public.  Provides that this subsection applies
only to regulatory and service quality information that is public
information subject to public disclosure under Chapter 552, Government
Code.  Requires the department to compile the compilation required under
Subsection (a) in a format that is readily accessible to and understandable
by a member  of the general public.  Sets forth the required information to
be included in information in the compilation required under Subsection (a)
which is useful to a member of the general public in selecting a nursing
facility. 

Sec.  242.902.  ACCESS TO QUALITY OF SERVICE INFORMATION.  Requires the
department to make copies of the information compiled under Section 242.901
available to the public on request.  Sets forth the required manner in
which the department will provide access to the information. 

SECTION 26.  Amends Section 7.021, Education Code, by adding Subsection
(d), to require the Texas Education Agency (agency) to administer federal
nutrition programs as otherwise required by law. 

SECTION 27.  Amends Chapter 7B, Education Code, by adding Section 7.025, as
follows: 

Sec. 7.025.  SUMMER FOOD SERVICE PROGRAM.  Requires the agency to ensure
that children residing in school districts in which 60 percent or more of
the children are educationally disadvantaged have access to meals provided
through the federal Summer Food Service Program.  Requires the commissioner
of education (commissioner) to designate an agency employee to coordinate
activities necessary to comply with this subsection.  Requires the agency
to annually identify each school district described by Subsection (a).
Requires the agency, not later than November 30 of each year, to notify
each identified district without a program sponsor of the district's
responsibility to provide or arrange for the provision of a program during
the following summer.  Requires each notified school district, not later
than January 31 of the following year, to respond to the agency and
indicate the district's intent to operate a program during the following
summer or request a waiver under Subsection (d).  Sets forth certain
conditions in which the commissioner is authorized to waive the requirement
that a school district operate a program.  Requires the agency to publish
rules and procedures for obtaining a waiver under Subsection (d).  Provides
that a waiver is valid for a one-year period. Requires the agency to
continue efforts to locate an alternative sponsor for the program, if a
school district has requested a waiver under Subsection (d) and has been
unable to provide a list of possible sponsors to the agency.  Sets forth
the excepted conditions under which school district facilities are to be
used for the program.  Sets forth certain information to be included in a
report, which is required to be provided by the agency to the governor's
office of budget and planning, the legislative budget board, and the state
auditor, not later than November 1 of each even-numbered year.  Requires
the agency to notify members of the legislature and the standing committees
of the senate and house of representatives having primary jurisdiction over
the agency of the filing of the report. 

SECTION 28.  Amends Section 30.05(b) (3), Penal Code, to redefine "shelter
center." 

SECTION 29.  (a)  Provides that on January 1, 2000, or an earlier date
provided by an interagency agreement between the department and the agency:
all powers, duties, functions, and activities relating to certain programs
assigned to or performed by the department immediately before January1,
2000, are transferred to the agency; all funds, obligations, and contracts
of the department related to a program listed in Subdivision (1) of this
subsection are transferred to the agency; all property and records in the
custody of the department related to a program listed in Subdivision (1) of
this subsection and all funds appropriated by the legislature for a program
listed in Subdivision (1) of this subsection are transferred to the agency;
and all employees of the department who primarily perform duties related to
a program listed in Subdivision (1) of this subsection become employees of
the agency, to be assigned duties by the commissioner. 

(b)  Provides that a rule or form adopted by the department that relates to
a program listed in Subsection (a) of this section is a rule or form of the
agency and remains in effect until altered by the agency.  Authorizes the
secretary of state to adopt rules as necessary to expedite the
implementation of this subsection. 

(c)  Provides that a reference in law to the department that relates to a
program listed in Subsection (a) of this section means the agency. 

SECTION 30.  Repealer:  Section 32.025(c), Human Resources Code (Requires
the department to inform applicants of certain information).     

SECTION 31.  Repealer:  Section 32.024, Human Resources Code (Summer Food
Service Program). 

SECTION 32.  (a)  Provides that the transfer of powers, duties, functions,
programs, and activities from the department to the agency under Section 29
of this Act does not affect or impair any act done, any  obligation, right,
order, license, permit, rule, criterion, standard, or requirement existing,
any investigation begun, or any penalty accrued under former law, and that
law remains in effect for any action concerning those matters. 

(b)  Provides that an action brought or proceeding commenced before the
effective date of this Act in connection with a power, duty, function,
program, or activity transferred under Section 29 of this Act, including a
contested case or a remand of an action or proceeding by a reviewing court,
is governed by the law and rules applicable to the action or proceeding
before the effective date of this Act. 

SECTION 33.Makes application of this Act prospective.

SECTION 34.(a)  Makes application of this Act prospective, however, this
Act does not prohibit a person who is a member of the board on September 1,
1999, from being reappointed to the board. 

(b)  Requires the governor, in filling the first two vacancies on the board
that occur after the effective date of this Act, to ensure that the
composition of the board after those vacancies are filled complies with the
requirements of Section 21.003(b), Human Resources Code, as amended by this
Act. 

SECTION 35.  (a)  Requires the department, not later than January 1, 2000,
to develop and implement the system of selective contracting required by
Section 22.0071(a), Human Resources Code, as added by this Act.  

(b)  Authorizes the department, notwithstanding Section 22.0071(a), Human
Resources Code, to continue to use an open enrollment contracting system
with providers for the delivery of department community care services until
the system of selective contracting is implemented. Authorizes, a provider
of community care services under a contract executed before the effective
date of this Act, notwithstanding Section 22.0071(a), Human Resources Code,
to continue to provide services in accordance with the contract until the
contract expires or is lawfully terminated. 

 (c)  Makes application of this Act prospective.

SECTION 36.Makes application of this Act prospective.

SECTION 37.Makes application of this Act prospective.

SECTION 38.  Requires an agency affected by a provision, if, before
implementing any provision of this Act, a state agency determines that a
waiver or authorization from a federal agency is necessary for
implementation of that provision, to request the waiver or authorization
and may delay implementing that provision until the waiver or authorization
is granted. 

SECTION 39.(a)  Effective date, except as provided by Subsection (b) of
this section: September 1, 1999. 

  (b)  Effective date, of SECTIONS 27 and 31: January 1, 2000. 

SECTION 40.Emergency clause.