By Gray                                               H.B. No. 1402
         76R838 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas
 1-3     Rehabilitation Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 111.002, Human Resources Code, is amended
 1-6     by adding Subdivision (8) to read as follows:
 1-7                 (8)  "Board" means the board of the Texas
 1-8     Rehabilitation Commission.
 1-9           SECTION 2.  Section 111.012, Human Resources Code, is amended
1-10     to read as follows:
1-11           Sec. 111.012.  SUNSET PROVISION.  The Texas Rehabilitation
1-12     Commission is subject to Chapter 325, Government Code (Texas Sunset
1-13     Act).  Unless continued in existence as provided by that chapter,
1-14     the commission is abolished and this chapter expires September 1,
1-15     2007 [1999].
1-16           SECTION 3.  Section 111.013(b), Human Resources Code, is
1-17     amended to read as follows:
1-18           (b)  Appointees must be outstanding citizens of the state who
1-19     are members of the general public and have demonstrated a
1-20     constructive interest in rehabilitation services.  Appointments to
1-21     the board shall be made without regard to the race, color,
1-22     disability [handicap], sex, religion, age, or national origin of
1-23     the appointees.  A person is not eligible for appointment as a
1-24     board member if the person or the person's spouse:
 2-1                 (1)  is employed by or participates in the management
 2-2     of a business entity or other organization regulated by the agency
 2-3     or receiving funds from the commission;
 2-4                 (2)  owns, controls, or has, directly or indirectly,
 2-5     more than a 10 percent interest in a business entity or other
 2-6     organization regulated by the agency or receiving funds from the
 2-7     commission; or
 2-8                 (3)  uses or receives a substantial amount of tangible
 2-9     goods, services, or funds from the commission.
2-10           SECTION 4.  Section 111.0131, Human Resources Code, is
2-11     amended to read as follows:
2-12           Sec. 111.0131.  REMOVAL OF BOARD MEMBERS.  (a)  It is a
2-13     ground for removal from the board that [if] a member:
2-14                 (1)  does not have at the time of taking office
2-15     [appointment] the qualifications required by [Subsection (b) of]
2-16     Section 111.013(b) [111.013 of this code] for appointment to the
2-17     board;
2-18                 (2)  does not maintain during [the] service on the
2-19     board the qualifications required by [Subsection (b) of] Section
2-20     111.013(b) [111.013] for appointment to the board;
2-21                 (3)  is ineligible for membership under Section 111.013
2-22     or [violates a prohibition established by Section] 111.025 [of this
2-23     code];
2-24                 (4)  cannot, because of illness or disability, [is
2-25     unable to] discharge the member's [his] duties for a substantial
2-26     part [portion] of the member's term [for which he was appointed
2-27     because of illness or disability]; or
 3-1                 (5)  is absent from more than half of the regularly
 3-2     scheduled board meetings that the member is eligible to attend
 3-3     during a [each] calendar year without an excuse approved by a [,
 3-4     except when the absence is excused by] majority vote of the board.
 3-5           (b)  The validity of an action of the board is not affected
 3-6     by the fact that it is [was] taken when a ground for removal of a
 3-7     board  member exists [of the board existed].
 3-8           (c)  If the commissioner has knowledge that a potential
 3-9     ground for removal exists, the commissioner [he] shall notify the
3-10     chairman of the board of the potential ground.  The chairman of the
3-11     board shall then notify the governor and the attorney general that
3-12     a potential ground for removal exists.  If the potential ground for
3-13     removal involves the presiding officer, the commissioner shall
3-14     notify the next highest ranking officer of the board, who shall
3-15     then notify the governor and the attorney general that a potential
3-16     ground for removal exists.
3-17           SECTION 5.  Subchapter B, Chapter 111, Human Resources Code,
3-18     is amended by adding Section 111.0132 to read as follows:
3-19           Sec. 111.0132.  TRAINING OF BOARD MEMBERS.  (a)  A person who
3-20     is appointed to and qualifies for office as a member of the board
3-21     may not vote, deliberate, or be counted as a member in attendance
3-22     at a meeting of the board until the person completes a training
3-23     program that complies with this section.
3-24           (b)  The training program must provide the person with
3-25     information regarding:
3-26                 (1)  the legislation that created the commission and
3-27     the board;
 4-1                 (2)  the programs operated by the commission;
 4-2                 (3)  the role and functions of the commission;
 4-3                 (4)  the rules of the commission with an emphasis on
 4-4     the rules that relate to disciplinary and investigatory authority;
 4-5                 (5)  the current budget for the commission;
 4-6                 (6)  the results of the most recent formal audit of the
 4-7     commission;
 4-8                 (7)  the requirements of:
 4-9                       (A)  the open meetings law, Chapter 551,
4-10     Government Code;
4-11                       (B)  the public information law, Chapter 552,
4-12     Government Code;
4-13                       (C)  the administrative procedure law, Chapter
4-14     2001, Government Code; and
4-15                       (D)  other laws relating to public officials,
4-16     including conflict of interest laws; and
4-17                 (8)  any applicable ethics policies adopted by the
4-18     commission or the Texas Ethics Commission.
4-19           (c)  A person appointed to the board is entitled to
4-20     reimbursement, as provided by the General Appropriations Act, for
4-21     the travel expenses incurred in attending the training program
4-22     regardless of whether the attendance at the program occurs before
4-23     or after the person qualifies for office.
4-24           SECTION 6.  Subchapter B, Chapter 111, Human Resources Code,
4-25     is amended by adding Section 111.0161 to read as follows:
4-26           Sec. 111.0161.  ADVISORY COMMITTEES REPORT TO BOARD.
4-27     (a)  Each advisory committee established by law or rule to advise
 5-1     the commission shall report to and advise the board on the
 5-2     committee's activities and the results of the committee's work.
 5-3     For the purpose of performing its advisory functions, each
 5-4     committee shall work with the commissioner, the commission's staff,
 5-5     and the board.
 5-6           (b)  The board shall adopt rules to implement this section.
 5-7           SECTION 7.  Section 111.017, Human Resources Code, is amended
 5-8     to read as follows:
 5-9           Sec. 111.017.  COMMISSIONER.  [This chapter is administered
5-10     by the commissioner under operational policies established by the
5-11     board.]  The commissioner is appointed by the board, with the
5-12     approval of the governor, and [on the basis of education, training,
5-13     experience, and demonstrated ability.  The commissioner] serves at
5-14     the pleasure of the board.  The commissioner is the executive head
5-15     of the agency [and is secretary to the board, as well as chief
5-16     administrative officer of the agency].
5-17           SECTION 8.  Section 111.018, Human Resources Code, is amended
5-18     to read as follows:
5-19           Sec. 111.018.  ADMINISTRATIVE REGULATIONS AND POLICIES.  (a)
5-20     The board shall:
5-21                 (1)  adopt policies and rules to effectively carry out
5-22     the purposes of this chapter; and
5-23                 (2)  supervise the commissioner's administration of
5-24     this chapter.
5-25           (b)  In carrying out his or her duties under this chapter,
5-26     the commissioner shall, with the approval of the board, implement
5-27     policies addressing [make regulations governing] personnel
 6-1     standards, the protection of records and confidential information,
 6-2     the manner and form of filing applications, eligibility,
 6-3     investigation, and determination for rehabilitation and other
 6-4     services, procedures for hearings, and other regulations subject to
 6-5     this section as necessary to carry out the purposes of this
 6-6     chapter.
 6-7           (c) [(b)]  The commissioner shall develop a career ladder
 6-8     program, one part of which must require the posting throughout the
 6-9     commission of all nonentry level positions concurrently with any
6-10     public posting.
6-11           (d) [(c)]  The commissioner shall develop a system of annual
6-12     performance evaluations based on measurable job tasks.  All merit
6-13     pay for employees must be based on the system established under
6-14     this subsection.
6-15           (e) [(d)]  The board shall provide to its members and
6-16     employees as often as is necessary information regarding their
6-17     qualifications under this chapter and their responsibilities under
6-18     applicable laws relating to standards of conduct for state officers
6-19     or employees.
6-20           (f) [(e)]  The board shall develop and implement policies
6-21     that clearly separate the policymaking [respective]
6-22     responsibilities of the board and the management responsibilities
6-23     of [,] the commissioner and staff of the commission.  The board may
6-24     delegate to the commissioner, or to a person acting as commissioner
6-25     in the commissioner's absence, any power or duty imposed on the
6-26     board or commission by law except that the board may not delegate
6-27     the power to adopt rules.  The delegation of a power or duty must
 7-1     be in writing.  Any delegation of the board's authority must be
 7-2     adopted by the board in a public meeting [, and the other
 7-3     employees].
 7-4           (g) [(f)]  The commissioner or the commissioner's designee
 7-5     shall prepare and maintain a written policy statement that
 7-6     implements [to assure implementation of] a program of equal
 7-7     employment opportunity to ensure that [whereby] all personnel
 7-8     decisions [transactions] are made without regard to race, color,
 7-9     disability [handicap], sex, religion, age, or national origin.  The
7-10     policy statement must include:
7-11                 (1)  personnel policies, including policies relating to
7-12     recruitment, evaluation, selection, [appointment,] training, and
7-13     promotion of personnel, that show the intent of the commission to
7-14     avoid the unlawful employment practices described by Chapter 21,
7-15     Labor Code; and
7-16                 (2)  an analysis of the extent to which the composition
7-17     of the commission's personnel is in accordance with state and
7-18     federal law and a description of reasonable methods to achieve
7-19     compliance with state and federal law [;]
7-20                 [(2)  a comprehensive analysis of the commission's work
7-21     force that meets federal and state guidelines;]
7-22                 [(3)  procedures by which a determination can be made
7-23     of significant underuse in the agency work force of all persons for
7-24     whom federal or state guidelines encourage a more equitable
7-25     balance; and]
7-26                 [(4)  reasonable methods to address appropriately areas
7-27     of significant underuse in the agency work force of all persons for
 8-1     whom federal or state guidelines encourage a more equitable
 8-2     balance].
 8-3           (h)  The policy statement must:
 8-4                 (1)  be updated annually;
 8-5                 (2)  be reviewed by the state Commission on Human
 8-6     Rights for compliance with Subsection (g)(1); and
 8-7                 (3)  be filed with the governor's office  [(g)  The
 8-8     policy statement required by Subsection (f) of this section shall
 8-9     be filed with the governor's office before November 1 of each year
8-10     and shall cover the preceding annual period.  The governor's office
8-11     shall develop from the information submitted a biennial report to
8-12     the legislature.  The report may be made separately or as a part of
8-13     other biennial reports made to the legislature].
8-14           SECTION 9.  Section 111.019, Human Resources Code, is amended
8-15     to read as follows:
8-16           Sec. 111.019.  PLANNING.  The commission [commissioner] shall
8-17     [, with the approval of the board,] make long-range and
8-18     intermediate plans for the scope and development of the program and
8-19     make decisions regarding the allocation of resources in carrying
8-20     out the plans.
8-21           SECTION 10.  Section 111.021, Human Resources Code, is
8-22     amended by adding Subsection (c) to read as follows:
8-23           (c)  The commission shall post on the Internet in an
8-24     accessible format the reports required under this section and any
8-25     other agency performance data required to be reported to this state
8-26     or the federal government.  If a report or performance data
8-27     contains confidential information, the commission shall remove the
 9-1     confidential information before posting the report or performance
 9-2     data.
 9-3           SECTION 11.  Section 111.022, Human Resources Code, is
 9-4     amended to read as follows:
 9-5           Sec. 111.022.  DISBURSEMENT OF FUNDS.  The commission
 9-6     [commissioner] shall make certification for disbursement, in
 9-7     accordance with regulations, of funds available for carrying out
 9-8     the purposes of this chapter.
 9-9           SECTION 12.  Section 111.023, Human Resources Code, is
9-10     amended to read as follows:
9-11           Sec. 111.023.  OTHER DUTIES.  The board [commissioner] shall
9-12     take other action as necessary or appropriate to carry out the
9-13     purposes of this chapter.
9-14           SECTION 13.  Section 111.024, Human Resources Code, is
9-15     amended to read as follows:
9-16           Sec. 111.024.  DELEGATION TO EMPLOYEES.   The commissioner
9-17     may, with the approval of the board, delegate to any officer or
9-18     employee of the commission responsibilities of [those powers and
9-19     duties, except the making of regulations and the appointment of
9-20     personnel,] the commissioner as [finds] necessary to carry out the
9-21     purposes of this chapter.
9-22           SECTION 14.  Section 111.025, Human Resources Code, is
9-23     amended to read as follows:
9-24           Sec. 111.025.  RESTRICTIONS ON BOARD MEMBERSHIP AND
9-25     EMPLOYMENT.  (a)  In this section, "Texas trade association" means
9-26     a cooperative and voluntarily joined association of business or
9-27     professional competitors in this state designed to assist its
 10-1    members and its industry or profession in dealing with mutual
 10-2    business or professional problems and in promoting their common
 10-3    interest.
 10-4          (b)  A person may not be a member of the board and may not be
 10-5    a commission employee employed in a "bona fide executive,
 10-6    administrative, or professional capacity," as that phrase is used
 10-7    for purposes of establishing an exemption to the overtime
 10-8    provisions of the federal Fair Labor Standards Act of 1938 (29
 10-9    U.S.C. Section 201 et seq.) and its subsequent amendments, if:
10-10                (1)  the person is an officer, employee, or paid
10-11    consultant of a Texas trade association in the field of
10-12    rehabilitation; or
10-13                (2)  the person's spouse is an officer, manager, or
10-14    paid consultant of a Texas trade association in the field of
10-15    rehabilitation.
10-16          (c)  A person may not be a member of the board or act as the
10-17    general counsel to the board or the commission if the person is
10-18    required to register as a lobbyist under Chapter 305, Government
10-19    Code, because of the person's activities for compensation on behalf
10-20    of a profession related to the operation of the commission [An
10-21    officer, employee, or paid consultant of an organization that
10-22    receives funds from the commission in payment for the provision of
10-23    rehabilitation services may not be a member or employee of the
10-24    board, nor may a person who cohabits with or is the spouse of an
10-25    officer, managerial employee, or paid consultant of such an
10-26    association be a member of the board or an employee of the board
10-27    grade 17 or over, including exempt employees, according to the
 11-1    position classification schedule under the General Appropriations
 11-2    Act.]
 11-3          [(b)  A person who is required to register as a lobbyist
 11-4    under Chapter 305, Government Code, by virtue of his activities on
 11-5    behalf of a provider of rehabilitation services, may not serve as a
 11-6    member of the board or act as the general counsel to the board].
 11-7          SECTION 15.  Section 111.026, Human Resources Code, is
 11-8    amended by adding Subsections (c), (d), and (e) to read as follows:
 11-9          (c)  The commission shall maintain a file on each written
11-10    complaint filed with the commission.  The file must include:
11-11                (1)  the name of the person who filed the complaint;
11-12                (2)  the date the complaint is received by the
11-13    commission;
11-14                (3)  the subject matter of the complaint;
11-15                (4)  the name of each person contacted in relation to
11-16    the complaint;
11-17                (5)  a summary of the results of the review or
11-18    investigation of the complaint; and
11-19                (6)  an explanation of the reason the file was closed
11-20    if the agency closed the file without taking action other than to
11-21    investigate the complaint.
11-22          (d)  The commission shall provide to the person filing the
11-23    complaint and to each person who is a subject of the complaint a
11-24    copy of the commission's policies and procedures relating to
11-25    complaint investigation and resolution.
11-26          (e)  The commission, at least quarterly until final
11-27    disposition of the complaint, shall notify the person filing the
 12-1    complaint and each person who is a subject of the complaint of the
 12-2    status of the investigation unless the notice would jeopardize an
 12-3    undercover investigation.
 12-4          SECTION 16.  Section 111.052(a), Human Resources Code, is
 12-5    amended to read as follows:
 12-6          (a)  The commission shall, to the extent of resources
 12-7    available and priorities established by the board, provide
 12-8    rehabilitation services directly or through public or private
 12-9    resources to individuals determined by the commission
12-10    [commissioner] to be eligible for the  services under a vocational
12-11    rehabilitation program, an extended rehabilitation services
12-12    program, or other program established to provide rehabilitative
12-13    services.
12-14          SECTION 17.  Subchapter C, Chapter 111, Human Resources Code,
12-15    is amended by adding Section 111.0525 to read as follows:
12-16          Sec. 111.0525.  COORDINATION WITH STATE AGENCIES.  (a)  The
12-17    commission shall target extended rehabilitation services to those
12-18    individuals who are not eligible to receive similar services from
12-19    the Texas Department of Mental Health and Mental Retardation or
12-20    another agency.
12-21          (b)  The commission shall enter into an agreement with the
12-22    Texas Department of Mental Health and Mental Retardation to reduce
12-23    duplication and fragmentation of employment services by defining
12-24    each agency's role and responsibilities for shared client
12-25    populations.
12-26          (c)  The commission shall establish a formal referral process
12-27    with the Texas Workforce Commission to ensure that appropriate
 13-1    vocational rehabilitation clients are referred to and receive
 13-2    services provided by the Texas Workforce Commission or local
 13-3    workforce development agencies.
 13-4          SECTION 18.  Subchapter C, Chapter 111, Human Resources Code,
 13-5    is amended by adding Section 111.0551 to read as follows:
 13-6          Sec. 111.0551.  PROVISION OF MEDICAL SERVICES.  In carrying
 13-7    out the purposes of this chapter, the commission shall:
 13-8                (1)  meet health care industry standards in the
 13-9    approval of medical services for clients, including the
13-10    advisability of obtaining second opinions;
13-11                (2)  adopt a system of quality control that includes
13-12    medical consultation;
13-13                (3)  where applicable, include an assessment of whether
13-14    the medical services will benefit the client's ability to return to
13-15    work; and
13-16                (4)  conduct an analysis of the risk associated with
13-17    funding medical procedures and maintain a risk management plan that
13-18    reflects current medical knowledge and expertise.
13-19          SECTION 19.  Subchapter C, Chapter 111, Human Resources Code,
13-20    is amended by adding Section 111.0552 to read as follows:
13-21          Sec. 111.0552.  RATES FOR MEDICAL SERVICES.  (a)  The board
13-22    shall adopt rules and standards governing the determination of
13-23    rates the commission will pay for medical services.
13-24          (b)  Annually, the board shall adopt by rule a schedule of
13-25    rates based on the rules and standards adopted under Subsection
13-26    (a).  In adopting the rate schedule, the board shall:
13-27                (1)  compare the proposed rate schedule to other
 14-1    cost-based rates for medical services, including Medicaid and
 14-2    Medicare rates; and
 14-3                (2)  for any rate adopted that exceeds the Medicare or
 14-4    Medicaid rate, document the reasons why the rate adopted ensures
 14-5    the best value in the use of dollars for clients.
 14-6          (c)  The board shall hold a public hearing before adopting
 14-7    rules under this section to allow interested persons to present
 14-8    comments.
 14-9          SECTION 20.  Subchapter C, Chapter 111, Human Resources Code,
14-10    is amended by adding Section 111.0553 to read as follows:
14-11          Sec. 111.0553.  PROCUREMENT METHODS.   The commission shall
14-12    develop and, following review and approval by the board, implement
14-13    agency-wide  procurement procedures to:
14-14                (1)  ensure compliance with the best-value purchasing
14-15    requirements of Section 2155.144(c), Government Code;
14-16                (2)  document that a best-value review of vendors has
14-17    occurred;
14-18                (3)  document the reasons for selecting a vendor;
14-19                (4)  negotiate price discounts with high-volume
14-20    vendors;
14-21                (5)  consolidate purchases with other agencies,
14-22    including the Texas Department of Health and the General Services
14-23    Commission, to achieve best value; and
14-24                (6)  provide effective public notification to potential
14-25    vendors of planned commission purchases.
14-26          SECTION 21.  Chapter 111, Human Resources Code, is amended by
14-27    adding Subchapter D to read as follows:
 15-1             SUBCHAPTER D.  VOCATIONAL REHABILITATION SERVICES
 15-2          Sec. 111.070.  PROVISION OF SERVICES.  (a)  The board by rule
 15-3    shall establish and maintain guidelines for providing vocational
 15-4    rehabilitation services that are consistent with state and federal
 15-5    laws and regulations and that include:
 15-6                (1)  a system of organization for the delivery of
 15-7    vocational rehabilitation services statewide;
 15-8                (2)  eligibility requirements for vocational
 15-9    rehabilitation services;
15-10                (3)  requirements for the rehabilitation planning
15-11    process;
15-12                (4)  the types of services that may be provided to a
15-13    client through a vocational rehabilitation program; and
15-14                (5)  requirements for client participation in the costs
15-15    of vocational rehabilitation services, including documentation that
15-16    a client has sought benefits for which the client is eligible from
15-17    sources other than the commission and that may assist the client in
15-18    obtaining vocational rehabilitation goods or services.
15-19          (b)  The board shall annually assess the effectiveness of the
15-20    state's vocational rehabilitation program.
15-21          Sec. 111.071.  TRAINING AND SUPERVISION OF COUNSELORS.
15-22    (a)  The commission shall provide specific guidance to vocational
15-23    rehabilitation counselors in:
15-24                (1)  selecting vocational objectives according to a
15-25    client's skills, experience, and knowledge;
15-26                (2)  documenting a client's impediment to employment;
15-27                (3)  selecting rehabilitation services that are
 16-1    reasonable and necessary to achieve a client's vocational
 16-2    objective;
 16-3                (4)  measuring client progress toward the vocational
 16-4    objective, including the documented, periodic evaluation of the
 16-5    client's rehabilitation and participation; and
 16-6                (5)  determining eligibility of employed and unemployed
 16-7    applicants for rehabilitation services using criteria defined by
 16-8    board rule to document whether a client is substantially
 16-9    underemployed or at risk of losing employment.
16-10          (b)  The board by rule shall require monitoring and oversight
16-11    of vocational rehabilitation counselor performance and decision
16-12    making in accordance with this section.
16-13          Sec. 111.072.  CLIENT ORIENTATION MATERIALS.  The commission
16-14    shall develop and distribute at intake client orientation materials
16-15    for the vocational rehabilitation program that include information
16-16    on the commission's decision making criteria.
16-17          Sec. 111.073.  TRANSITION PLANNING.  The commission shall:
16-18                (1)  assess the statewide need for services necessary
16-19    to prepare students with disabilities for a successful transition
16-20    to employment;
16-21                (2)  establish collaborative relationships with each
16-22    school district with education service centers to the maximum
16-23    extent possible within available resources; and
16-24                (3)  develop strategies to assist vocational
16-25    rehabilitation counselors in identifying and reaching students in
16-26    need of transition planning.
16-27          SECTION 22.  Section 302.021, Labor Code, is amended by
 17-1    adding Subsection (d) to read as follows:
 17-2          (d)  To the extent permitted under federal law, the division
 17-3    shall promote and monitor services provided to persons with
 17-4    disabilities, including persons referred from the Texas
 17-5    Rehabilitation Commission.
 17-6          SECTION 23.  This Act takes effect September 1, 1999.
 17-7          SECTION 24.  The board of the Texas Rehabilitation Commission
 17-8    shall adopt each rule required to implement the changes in law made
 17-9    by this Act not later than January 1, 2000.
17-10          SECTION 25.  The importance of this legislation and the
17-11    crowded condition of the calendars in both houses create an
17-12    emergency and an imperative public necessity that the
17-13    constitutional rule requiring bills to be read on three several
17-14    days in each house be suspended, and this rule is hereby suspended.