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


Senate Research CenterC.S.S.B. 369
By: Zaffirini
Human Services
4/22/1999
Committee Report (Substituted)


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, C.S.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, 12, 13, and 22 (Sections 22.0071(a), 32.0212(a) and (c), and
32.0251(b),  Human Resources Code, and Section 242.0611, Health and Safety
Code).   

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, 2011, unless continued as provided
by Chapter 325, Government Code. 

SECTION 2.  Amends Sections 21.003(b) and (d), 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 biennially update
goals, objectives, and performance criteria  for each local administrative
unit of the department.  Sets forth the objectives of the goals,
objectives, and performance criteria.  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 to limit the number
of direct providers of department community care services.  Sets forth the
department's required assurances that a sufficient number of direct
providers are available to meet certain service needs. 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 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 adding
Subsection (d), to require 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 the heading to Section 31.0095, Human Resources Code, as
follows: 

 Sec. 31.0095.  New heading:  EMPLOYABILITY NEEDS ASSESSMENT.

SECTION 9. Amends the heading to 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 31A, Human Resources Code, by adding Section
31.0127, as follows: 

Sec. 31.0127.  COORDINATION OF SERVICES TO TANF CLIENTS.  Provides that in
order to ensure efficient delivery of appropriate programs and services,
the Health and Human Services Commission (commission) is the state agency
designated to coordinate between the department and any other state agency
which provides programs or services to a Temporary Assistance for Needy
Families (TANF) client who is receiving a cash grant and who has been
referred by the department to another state agency.  Requires any state
agency providing programs or services to TANF clients who are receiving a
cash grant and who have been referred by the department to comply with
Chapter 531, Government Code, with regard to those programs and services.
Provides that if implementation of this section with regard to any program
or service conflicts with federal law, the state agency is not required to
comply with this section with regard to that program or service. 

SECTION 12.   Amends Chapter 32B, Human Resources Code, by adding Section
32.0212, as follows: 

Sec. 32.0212.  CONTRACTS FOR NURSING FACILITY CARE; QUALITY ASSESSMENT.
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 appropriate performance
data collected by the department or another agency 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).  Requires the
department, by rule, to develop and implement a quality assessment process
to evaluate the performance of a nursing facility that contracts with the
department for the delivery of medical assistance. Sets forth the required
appropriate performance data collected by the department or any other
agency to be used in developing the process.  Sets forth the ways in which
the department is required to address a nursing facility's failure to meet
minimum performance standards. 

SECTION 13.  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 design a
plan of care for an applicant for community care services based on needs of
the applicant identified by the department.  Requires the plan of care to
be adjusted promptly as necessary based on any change in the applicant's
physical condition or need for service, 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 for
the services, if community care services are not readily available for an
elderly or disabled applicant because of a high demand for services.
Requires the department to collect from each applicant who is placed on the
waiting list appropriate information to facilitate contacting the applicant
when the services become available and to allow efficient enrollment of the
applicant in those services. 

SECTION 14.  Amends the heading to Chapter 51, Human Resources Code, as
follows: 

 Chapter 51.  New heading:  FAMILY VIOLENCE CENTERS.

SECTION 15.  Amends Section 51.002, Human Resources Code, to define "family
violence center," "family violence nonresidential center," and "family
violence."  Redefines "family violence shelter center."  Makes conforming
changes. 

SECTION 16.  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 all contracts made under
Subsection (b) through a competitive bidding process unless that process
would not be costeffective.  Makes conforming changes. 

SECTION 17.  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.   Requires the department to include the
family violence nonresidential center in the noncompetitive procurement
procedure under Subsection (d), if the department determines that a family
violence nonresidential center provides services that would not be
otherwise available in the service area.  Deletes text requiring a contract
application to be submitted on forms prescribed by the department.  Makes
conforming changes.  Deletes text requiring, to be eligible for a contract
under Section 51.003(a) of this code, public or private nonprofit
organization to operate a family violence center that provides certain
lodging and social services for adults and their children. 

SECTION 18.  Amends Section 51.005, Human Resources Code, to make
conforming changes. 

SECTION 19.  Amends Section 51.006, Human Resources Code, to make a
conforming change. 

SECTION 20.  Amends Section 51.007, Human Resources Code, to make a
conforming change. 

SECTION 21.  Amends Chapter 51, Human Resources Code, by adding Section
51.012, as follows: 

Sec. 51.012.  COORDINATION OF SERVICES.  Requires the department and the
Department of Protective and Regulatory Services to coordinate the
provision of violence prevention services for children and youth. 

SECTION 22.  Amends Chapter 242C, Health and Safety Code, by adding Section
242.0611, as follows: 

Sec. 242.0611.  RULE-BASED CRITERIA FOR ENFORCEMENT REMEDIES.  Requires
the department to develop criteria, published in rules, regarding
circumstances that trigger the imposition of each of the remedies available
to the department. 

SECTION 23.  Amends Chapter 242C, Health and Safety Code, by adding Section
242.074, as follows: 

Sec. 242.074.  USE OF REGULATORY REPORTS AND DOCUMENTS.  Provides that,
except as otherwise provided by this section, a report or other document
prepared by the department that relates to regulation of an institution is
not admissible as evidence in a civil action to prove that the institution
violated a standard prescribed under this chapter.  Sets forth information
Subsection (a) does not apply to or prohibit. 

SECTION 24.  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 25.  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 26.  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 a provisional license. 

SECTION 27.  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 28.  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.  Requires the department to consult with
nursing facility residents, their families, nursing facility providers, and
advocacy groups in determine the types of information to compile.  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.  Provides that the cost
incurred by a nursing facility in maintaining and reporting regulatory and
service quality information required under this section is an allowable
cost for retirement under the state Medicaid program. 

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

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

SECTION 31.Makes application of this Act prospective.

SECTION 32. (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 33.  (a)  Requires the department, not later than January 1, 2000,
to develop and implement the system required by Section 22.0071(a), Human
Resources Code, as added by this Act.  

(b)  Makes application of this Act prospective.

 
SECTION 34.  Makes application of contested case hearings under Section
22.018, Human Resources Code, prospective to January 1, 2000.  Authorizes
the commission and the chief administrative law judge of SOAH to agree to
transfer contested cases pending before the department to SOAH before
January 1, 2000. 

SECTION 35.Makes application of this Act prospective.

SECTION 36.  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 37.  (a)  Effective date:: September 1, 1999, except as provided by
Subsection (b) of this section. 

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

SECTION 38.Emergency clause.   
               

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 21.002, Human Resources Code, to provide that the department
is abolished and that this title, excluding any chapter that relates to a
state agency other than the department, expires on September 1, 2011,
rather than the proposed September 1, 2007 unless continued as provided by
Chapter 325, Government Code. 

SECTION 5.
 
Amends Section 22.0071, Chapter 22, Human Resources Code, by deleting
proposed Subsection (a), and replacing it with text requiring the
department, by rule, to develop and implement a system to limit the number
of direct providers of department community care services.  Sets forth the
department's required assurances that a sufficient number of direct
providers are available to meet certain business needs. 

SECTION 6.

Amends Section 22.018, Human Resources Code, to delete a provision that
Subsection (a) is subject to the provisions of Subsection (e). 
 
SECTION 7.

Amends Section 31.0032, Human Resources Code, by deleting proposed text
regarding amending Subsection (a). 

SECTION 10.

Amends Section 31.011, Chapter 31A, Human Resources Code, to set forth the
preventive and support services to which the department is authorized to
refer a recipient and a recipient's family under this section, including
any other program or service determined by the department as appropriate. 

SECTION 11.

Amends Chapter 31A, Human Resources Code, by adding Section 31.0127,
regarding coordination of services to TANF clients. 

SECTION 12.

 Adds a new heading.  Amends Section 32.0212, Chapter 32B, Human Resources
Code, to set forth the required appropriate performance data collected by
the department or another agency to be used in developing the minimum
performance standards.  Deletes proposed Subsection (c) and replaces with
text requiring the department, by rule, to develop and implement a quality
assessment process to evaluate the performance of a nursing facility that
contracts with the department for the delivery of medical assistance.  Sets
forth the required appropriate performance data collected by the department
or any other agency to be used in developing the process.  Deletes text
requiring the department to promptly address a nursing facility's failure
to meet minimum performance standards by issuing a corrective action plan
detailing the actions required of the nursing facility to comply with the
minimum performance standards. 

SECTION 13.

Redesignated from proposed SECTION 12.  Amends Section 32.0251, Chapter
32B, Human Resources Code, deleting proposed Subsections (c) and (d) and
replacing them with text requiring the department to design a plan of care
for an applicant for community care services based on needs of the
applicant identified by the department.  Requires the plan of care to be
adjusted promptly as necessary based on any change in the applicant's
physical condition or need for service, 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 for
the services, if community care services are not readily available for an
elderly or disabled applicant because of a high demand for services.
Requires the department to collect from each applicant who is placed on the
waiting list appropriate information to facilitate contacting the applicant
when the services become available and to allow efficient enrollment of the
applicant in those services. 

SECTION 14.

 Redesignated from proposed SECTION 13.

SECTION 15.

Redesignated from proposed SECTION 14. Amends Section 51.002, Human
Resources Code, by deleting the proposed definition of "victim of family
violence," and replacing it with text defining  "family violence."
Redefines "family violence center" and "family violence shelter center."  

SECTION 16.

 Redesignated from proposed SECTION 15.   Amends Section 51.003, Human
Resources Code, to require the department to award all contracts made under
Subsection (b) through a competitive bidding process unless that process
would not be cost-effective.   

SECTION 17.

Redesignated from proposed SECTION 16.  Amends Section 51.004, Human
Resources Code, to set forth certain actions a family violence
nonresidential center is required to provide to be eligible for a contract
under Section 51.003(a), including providing, as its primary purpose,
direct delivery of services to victims of family violence that, at a
minimum, include assistance and support in accessing legal services,
including accompanying victims in appropriate circumstances; having been
providing comprehensive services, including services described by
Subdivision (1), to victims of family violence for at least two years
before the date on which the contract is awarded; and demonstrating that
the center, through the services it provides, is addressing an otherwise
unmet need in the community.  Replaces proposed Subsection (e) with text
requiring the department to include the family violence nonresidential
center in the noncompetitive procurement procedure under Subsection (d), if
the department determines that a family violence nonresidential center
provides services that would not be otherwise available in the service
area. 

SECTION 18-20

 Redesignated from proposed SECTIONS 17-19. 

SECTION 21.

Redesignated from proposed SECTION 20.  Amends Section 51.012, Chapter 51,
Human Resources Code, by deleting the proposed text for it, and replacing
it with text requiring the department and the Department of Protective and
Regulatory Services to coordinate the provision of violence prevention
services for children and youth. 

SECTION 22.

Amends Chapter 242C, Health and Safety Code, by adding Section 242.0611,
regarding rulebased criteria for enforcement remedies.  

SECTION 23.

Amends Chapter 242C, Health and Safety Code, by adding Section 242.074,
regarding the use of regulatory reports and documents. 

SECTION 24.

Redesignated from proposed 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 require the board, rather than
authorize the board, to issue a provisional license to a certain applicant. 

SECTION 25.

 Redesignated from proposed SECTION 22. 

SECTION 26.

Redesignated from proposed 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 require the board, rather than
authorize the board, to issue a provisional license to a certain applicant.
Requires the board to issue a license under this subchapter to the
provisional license holder  if the provisional license holder is eligible
to be licensed under Section 242.311, rather than 242.311(c). 

SECTION 27.

 Redesignated from proposed SECTION 24. 

SECTION 28.

Redesignated from proposed SECTION 25.  Amends Chapter 242Q, Health and
Safety Code, to require the department to consult with nursing facility
residents, their families, nursing facility providers, and advocacy groups
in determine the types of information to compile. 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, including complaint information, including
the number of complaints received, outcomes of investigations of the
complaints, final sanction information, and percentage of complaints that
were unsubstantiated; and violations or deficiencies cited by a validation
survey that were dismissed or overturned, resident outcome improvements;
and the amount of volunteer activity and involvement.  Provides that the
cost incurred by a nursing facility in maintaining and reporting regulatory
and service quality information required under this section is an allowable
cost for retirement under the state Medicaid program. 


SECTION 29.

 Redesignated from proposed SECTION 28.  Deletes proposed SECTIONS 26-27,
and 29.  

SECTION 31. 

  Redesignated from proposed SECTION 33.  Deletes proposed SECTIONS 31-32.

SECTION 32.

 Redesignated from proposed SECTION 34.

SECTION 33.

 Redesignated from proposed SECTION 35.  Deletes text requiring 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. Deletes proposed Subsections (b) and
(c) and replaces Subsection (b) with proposed Subsection (c). 

SECTION 34.

 Redesignated from proposed SECTION 36.  Makes a nonsubstantive change.

SECTIONS 35-38.

 Redesignated from proposed SECTIONS 37-40.