By Gray, Bosse, McCall                                H.B. No. 2641
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Health and Human
 1-3     Services Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5          ARTICLE 1. GENERAL POWERS AND DUTIES OF HEALTH AND HUMAN
 1-6                             SERVICES COMMISSION
 1-7           SECTION 1.01.  Section 531.004, Government Code, is amended
 1-8     to read as follows:
 1-9           Sec. 531.004.  SUNSET PROVISION.  The Health and Human
1-10     Services Commission is subject to Chapter 325 (Texas Sunset Act).
1-11     Unless continued in existence as provided by that chapter, the
1-12     commission is abolished and this chapter expires September 1, 2007
1-13     [1999].
1-14           SECTION 1.02.  Section 531.005(a), Government Code, is
1-15     amended to read as follows:
1-16           (a)  The commission is governed by a commissioner of health
1-17     and human services appointed by the governor [with the advice and
1-18     consent of the senate].  The commissioner may be removed by the
1-19     governor.
1-20           SECTION 1.03.  Section 531.009, Government Code, is amended
1-21     to read as follows:
1-22           Sec. 531.009.  PERSONNEL.  (a)  The commissioner shall employ
1-23     a medical director to provide medical expertise to the commissioner
1-24     and the commission and may employ other personnel necessary to
 2-1     administer the commission's duties.
 2-2           (b)  The commissioner or the commissioner's designated
 2-3     representative shall develop an intra-agency career ladder program,
 2-4     one part of which must require the intra-agency posting of all
 2-5     non-entry-level positions concurrently with any public posting.
 2-6           (c)  The commissioner or the commissioner's designated
 2-7     representative shall develop a system of annual performance
 2-8     evaluations based on measurable job tasks.  All merit pay for
 2-9     commission employees must be based on the system established under
2-10     this subsection.
2-11           (d)  The commissioner shall provide to commission employees
2-12     as often as is necessary information regarding their qualifications
2-13     under this chapter and their responsibilities under applicable laws
2-14     relating to standards of conduct for state employees.
2-15           (e)  The commissioner or the commissioner's designated
2-16     representative shall prepare and maintain a written policy
2-17     statement that implements [to ensure implementation of] a program
2-18     of equal employment opportunity to ensure that [under which] all
2-19     personnel transactions are made without regard to race, color,
2-20     disability, sex, religion, age, or national origin.
2-21           (f)  The policy statement described by Subsection (e) must
2-22     include:
2-23                 (1)  personnel policies, including policies relating to
2-24     recruitment, evaluation, selection, [appointment,] training, and
2-25     promotion of personnel, that show the intent of the commission to
2-26     avoid the unlawful employment practices described by Chapter 21,
2-27     Labor Code; and
 3-1                 (2)  an analysis of the extent to which the composition
 3-2     of the commission's personnel is in accordance with state and
 3-3     federal law and a description of reasonable methods to achieve
 3-4     compliance with state and federal law [a comprehensive analysis of
 3-5     the commission workforce that meets federal and state guidelines;]
 3-6                 [(3)  procedures by which a determination can be made
 3-7     of significant underuse in the commission workforce of all persons
 3-8     for whom federal or state guidelines encourage a more equitable
 3-9     balance; and]
3-10                 [(4)  reasonable methods to appropriately address areas
3-11     of significant underuse in the commission workforce of all persons
3-12     for whom federal or state guidelines encourage a more equitable
3-13     balance].
3-14           (g)  The policy statement described by Subsection (e) must:
3-15                 (1)  be updated annually;
3-16                 (2)  be reviewed by the state Commission on Human
3-17     Rights for compliance with Subsection (f)(1); and
3-18                 (3)  be filed with the governor's office.
3-19           SECTION 1.04.  Section 531.011, Government Code, is amended
3-20     by adding Subsection (g) to read as follows:
3-21           (g)  In addition to the information file maintained under
3-22     Subsection (e), the commission shall maintain an information file
3-23     on a complaint received by the commission relating to any matter or
3-24     agency under the jurisdiction of the commission.
3-25           SECTION 1.05.  Subchapter A, Chapter 531, Government Code, is
3-26     amended by adding Section 531.014 to read as follows:
3-27           Sec. 531.014.  CONSOLIDATION OF REPORTS.  The commission may
 4-1     consolidate any annual or biennial reports required to be made
 4-2     under this chapter or another law if:
 4-3                 (1)  the consolidated report is submitted not later
 4-4     than the earliest deadline for the submission of any component of
 4-5     the consolidated report; and
 4-6                 (2)  each person required to receive a component of the
 4-7     consolidated report receives the consolidated report and the
 4-8     consolidated report identifies the component of the report the
 4-9     person was required to receive.
4-10           SECTION 1.06.  Subchapter A, Chapter 531, Government Code, is
4-11     amended by adding Section 531.015 to read as follows:
4-12           Sec. 531.015.  PUBLIC HEARINGS IN CERTAIN COUNTIES.  (a)  A
4-13     health and human services agency may not establish a new facility
4-14     at which the agency proposes to provide any services that the
4-15     agency is authorized to provide in a county with a population of
4-16     less than 200,000 unless the health and human services agency holds
4-17     a public hearing in that county at which the facility and its
4-18     proposed location is explained and at which public comment may be
4-19     offered.
4-20           (b)  The time, place, and subject of the hearing shall be
4-21     publicized appropriately. Each state representative that represents
4-22     all or part of the county shall be informed in a timely manner of
4-23     the time, place, and subject of the hearing.
4-24      ARTICLE 2.  RELATIONSHIP WITH HEALTH AND HUMAN SERVICES AGENCIES
4-25           SECTION 2.01.  Subchapter A, Chapter 531, Government Code, is
4-26     amended by adding Sections 531.0055 and 531.0056 to read as
4-27     follows:
 5-1           Sec. 531.0055.  COMMISSIONER: RESPONSIBILITY RELATING TO
 5-2     CERTAIN FUNCTIONS OF HEALTH AND HUMAN SERVICES AGENCIES.  (a)  In
 5-3     this section:
 5-4                 (1)  "Agency director" means the director, executive
 5-5     director, or commissioner of a health and human services agency.
 5-6                 (2)  "Policymaking body" means the board or commission
 5-7     with policymaking authority over a health and human services
 5-8     agency.
 5-9           (b)  The commission shall:
5-10                 (1)  supervise the administration and operation of the
5-11     Medicaid program, including the administration and operation of the
5-12     Medicaid managed care system in accordance with Section 531.021;
5-13                 (2)  supervise information systems planning and
5-14     management for health and human services agencies under Section
5-15     531.0273;
5-16                 (3)  manage and distribute all federal funds received
5-17     by a health and human services agency in accordance with Section
5-18     531.028 and the General Appropriations Act; and
5-19                 (4)  implement Texas Integrated Enrollment Services as
5-20     required by Subchapter F.
5-21           (c)  After implementation of the commission's duties under
5-22     Subsection (b), the commission shall implement the powers and
5-23     duties given to the commission under Sections 531.0246, 531.0247,
5-24     2155.144, as added by Chapter 1045, Acts of the 75th Legislature,
5-25     Regular Session, 1997, and 2167.004.
5-26           (d)  After implementation of the commission's duties under
5-27     Subsections (b) and (c), the commission shall implement the powers
 6-1     and duties given to the commission under Section 531.0248.
 6-2           (e)  Notwithstanding any other law, the commissioner, as
 6-3     necessary to perform the functions described by Subsections (b),
 6-4     (c), and (d) in implementation of the policies established by each
 6-5     agency's policymaking body, shall:
 6-6                 (1)  manage and direct the operations of each health
 6-7     and human services agency; and
 6-8                 (2)  supervise and direct the activities of each agency
 6-9     director.
6-10           (f)  The operational authority of the commissioner for
6-11     purposes of Subsection (e) at each health and human services agency
6-12     includes authority over the:
6-13                 (1)  management of the daily operations of the agency,
6-14     including the organization and management of the agency and agency
6-15     operating procedures;
6-16                 (2)  allocation of resources within the agency,
6-17     including use of federal funds received by the agency;
6-18                 (3)  personnel and employment policies;
6-19                 (4)  contracting, purchasing, and related policies,
6-20     subject to this chapter and other laws relating to contracting and
6-21     purchasing by a state agency;
6-22                 (5)  information resources systems used by the agency;
6-23                 (6)  location of agency facilities; and
6-24                 (7)  coordination of agency activities with activities
6-25     of other state agencies, including other health and human services
6-26     agencies.
6-27           (g)  Notwithstanding any other law, the operational authority
 7-1     of the commissioner for purposes of Subsection (e) at each health
 7-2     and human services agency includes the authority to adopt or
 7-3     approve, subject to applicable limitations, any rate of payment or
 7-4     similar provision required by law to be adopted or approved by the
 7-5     agency.
 7-6           (h)  For each health and human services agency, the
 7-7     commissioner shall implement a program to evaluate and supervise
 7-8     the daily operations of the agency.  The program must include
 7-9     measurable performance objectives for each agency director and
7-10     adequate reporting requirements to permit the commissioner to
7-11     perform the duties assigned to the commissioner under this section.
7-12           (i)  To facilitate the operations of a health and human
7-13     services agency in accordance with this section, the commissioner
7-14     may delegate a specific power or duty given under Subsection (f) or
7-15     (g) to an agency director.
7-16           (j)  The commissioner may adopt rules to implement the
7-17     commissioner's authority under this section.
7-18           (k)  The commissioner and each agency director shall enter
7-19     into a memorandum of understanding that:
7-20                 (1)  clearly defines the responsibilities of the agency
7-21     director and the commissioner;
7-22                 (2)  establishes the program of evaluation and
7-23     supervision of daily operations required by Subsection (h); and
7-24                 (3)  describes each delegation of a power or duty made
7-25     under Subsection (i).
7-26           (l)  Notwithstanding any other provision of this section, a
7-27     policymaking body has the authority provided by law to adopt
 8-1     policies and rules governing the delivery of services to persons
 8-2     who are served by the agency and the rights and duties of persons
 8-3     who are served or regulated by the agency.  A policymaking body and
 8-4     the commissioner may not perform any power or duty or adopt any
 8-5     rule or policy that expands or creates a right, power, or duty
 8-6     beyond that granted or created by the express terms of a state or
 8-7     federal statute, and the powers and duties and the rulemaking
 8-8     authority of a policymaking body and the commissioner shall be
 8-9     strictly construed in accordance with the express terms and
8-10     conditions of state and federal law and in a manner that will
8-11     accomplish the underlying purposes of this chapter.  The
8-12     commissioner and each policymaking body shall enter into a
8-13     memorandum of understanding that clearly defines:
8-14                 (1)  the policymaking authority of the policymaking
8-15     body; and
8-16                 (2)  the operational authority of the commissioner.
8-17           Sec. 531.0056.  AUTHORITY OVER RULEMAKING AT HEALTH AND HUMAN
8-18     SERVICES AGENCY.  (a)  Notwithstanding any other law, a health and
8-19     human services agency must notify the commissioner before proposing
8-20     a rule.  A rule adopted in violation of this section is void.
8-21           (b)  The commissioner may waive the requirement of this
8-22     section as necessary to permit emergency rulemaking in accordance
8-23     with Section 2001.034.
8-24           SECTION 2.02.  Sections 21.004(a) and (b), Human Resources
8-25     Code, are amended to read as follows:
8-26           (a)  The Commissioner of Human Services is the executive and
8-27     administrative officer of the department.  The commissioner
 9-1     exercises all rights, powers, and duties imposed or conferred by
 9-2     law on the department unless the right, power, or duty is
 9-3     specifically delegated by the commissioner of health and human
 9-4     services [board] to the department's agents or employees.
 9-5           (b)  The commissioner is appointed by the commissioner of
 9-6     health and human services [board] with the concurrence of the board
 9-7     and the approval of the governor.  The commissioner [and] serves at
 9-8     the pleasure of the commissioner of health and human services but
 9-9     may be discharged only with the concurrence of the board.
9-10           SECTION 2.03.  Chapter 22, Human Resources Code, is amended
9-11     by adding Section 22.0001 to read as follows:
9-12           Sec. 22.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
9-13     AND HUMAN SERVICES.  The commissioner of health and human services
9-14     has the powers and duties relating to the board and commissioner as
9-15     provided by Section 531.0055, Government Code.  To the extent a
9-16     power or duty given to the board or commissioner by this title or
9-17     another law conflicts with Section 531.0055, Government Code,
9-18     Section 531.0055 controls.
9-19           SECTION 2.04.  Section 40.027, Human Resources Code, is
9-20     amended to read as follows:
9-21           Sec. 40.027.  EXECUTIVE DIRECTOR.  (a)  The commissioner of
9-22     health and human services shall appoint [board shall employ] the
9-23     executive director with the concurrence of the board and the
9-24     approval of the governor.  The executive director serves at the
9-25     pleasure of the commissioner of health and human services but may
9-26     be discharged only with the concurrence of the board.
9-27           (b)  The executive director is the executive head of the
 10-1    department. The executive director shall perform the duties
 10-2    assigned by the commissioner of health and human services [board]
 10-3    and state law.
 10-4          SECTION 2.05.  Subchapter C, Chapter 40, Human Resources
 10-5    Code, is amended by adding Section 40.0505 to read as follows:
 10-6          Sec. 40.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 10-7    AND HUMAN SERVICES.  The commissioner of health and human services
 10-8    has the powers and duties relating to the board and executive
 10-9    director as provided by Section 531.0055, Government Code.  To the
10-10    extent a power or duty given to the board or executive director by
10-11    this chapter or another law conflicts with Section 531.0055,
10-12    Government Code, Section 531.0055 controls.
10-13          SECTION 2.06.  Chapter 73, Human Resources Code, is amended
10-14    by adding Section 73.0045 to read as follows:
10-15          Sec. 73.0045.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
10-16    AND HUMAN SERVICES.  The commissioner of health and human services
10-17    has the powers and duties relating to the board and the executive
10-18    director of the board as provided by Section 531.0055, Government
10-19    Code.  To the extent a power or duty given to the board or
10-20    executive director by this chapter or another law conflicts with
10-21    Section 531.0055, Government Code, Section 531.0055 controls.
10-22          SECTION 2.07.  Sections 73.0052(b) and (c), Human Resources
10-23    Code, are amended to read as follows:
10-24          (b)  The commissioner of health and human services shall
10-25    appoint [board shall employ] an executive director with the
10-26    concurrence of the board and the approval of the governor.  The
10-27    executive director serves at the pleasure of the commissioner but
 11-1    may be discharged only with the concurrence of the board.  The[,
 11-2    and the] executive director shall establish necessary
 11-3    administrative units[,] and hire other necessary employees.
 11-4          (c)  Utilizing established standards, the commissioner of
 11-5    health and human services [board] shall evaluate the performance of
 11-6    the executive director annually.
 11-7          SECTION 2.08.  Chapter 81, Human Resources Code, is amended
 11-8    by adding Section 81.0055 to read as follows:
 11-9          Sec. 81.0055.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
11-10    AND HUMAN SERVICES.  The commissioner of health and human services
11-11    has the powers and duties relating to the commission and the
11-12    executive director of the commission as provided by Section
11-13    531.0055, Government Code.  To the extent a power or duty given to
11-14    the commission or executive director by this chapter or another law
11-15    conflicts with Section 531.0055, Government Code, Section 531.0055
11-16    controls.
11-17          SECTION 2.09.  Sections 81.008(a) and (b), Human Resources
11-18    Code, are amended to read as follows:
11-19          (a)  The commissioner of health and human services
11-20    [commission] shall appoint an executive director with the
11-21    concurrence of the commission and the approval of the governor.
11-22    The executive director serves at the pleasure of the commissioner
11-23    but may be discharged only with the concurrence of the commission.
11-24          (b)  In selecting an executive director, the commissioner of
11-25    health and human services [commission] shall give preference to a
11-26    deaf or hard of hearing person.
11-27          SECTION 2.10.  Sections 91.012(a), (b), and (d), Human
 12-1    Resources Code, are amended to read as follows:
 12-2          (a)  The commissioner of health and human services
 12-3    [commission] shall [annually] appoint an executive director with
 12-4    the concurrence of the commission and the approval of the governor.
 12-5    The executive director serves at the pleasure of the commissioner
 12-6    but may be discharged only with the concurrence of the commission.
 12-7          (b)  The commissioner of health and human services
 12-8    [commission] shall select the executive director, according to
 12-9    established personnel standards, on the basis of education,
12-10    training, experience, and demonstrated ability.
12-11          (d)  The [On commission approval, the] executive director:
12-12                (1)  shall appoint personnel necessary to efficiently
12-13    accomplish commission purposes;
12-14                (2)  may delegate to an employee a power of the
12-15    executive director except the power to adopt rules or appoint
12-16    personnel;
12-17                (3)  shall establish appropriate administrative units
12-18    within commission programs;
12-19                (4)  may accept and use gifts and grants to the
12-20    commission to carry out the purposes of this title, if the
12-21    commission determines that the conditions of the gift or grant are
12-22    consistent with this title; and
12-23                (5)  may take other actions that the executive director
12-24    considers necessary or appropriate to carry out commission
12-25    purposes.
12-26          SECTION 2.11.  Subchapter C, Chapter 91, Human Resources
12-27    Code, is amended by adding Section 91.0205 to read as follows:
 13-1          Sec. 91.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 13-2    AND HUMAN SERVICES.  The commissioner of health and human services
 13-3    has the powers and duties relating to the commission and executive
 13-4    director as provided by Section 531.0055, Government Code.  To the
 13-5    extent a power or duty given to the commission or executive
 13-6    director by this chapter or another law conflicts with Section
 13-7    531.0055, Government Code, Section 531.0055 controls.
 13-8          SECTION 2.12.  Section 101.004(a), Human Resources Code, is
 13-9    amended to read as follows:
13-10          (a)  The commissioner of health and human services [board]
13-11    shall appoint an executive director of aging with the concurrence
13-12    of the board and the approval of the governor.  The executive
13-13    director shall discharge all executive and administrative functions
13-14    of the department.  The executive director must be a person with
13-15    executive ability and experience in the area of aging.  The
13-16    executive director serves at the pleasure of the commissioner but
13-17    may be discharged only with the concurrence of the board.
13-18          SECTION 2.13.  Subchapter B, Chapter 101, Human Resources
13-19    Code, is amended by adding Section 101.0205 to read as follows:
13-20          Sec. 101.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
13-21    AND HUMAN SERVICES.  The commissioner of health and human services
13-22    has the powers and duties relating to the board and executive
13-23    director as provided by Section 531.0055, Government Code.  To the
13-24    extent a power or duty given to the board or executive director by
13-25    this chapter or another law conflicts with Section 531.0055,
13-26    Government Code, Section 531.0055 controls.
13-27          SECTION 2.14.  Section 111.017, Human Resources Code, is
 14-1    amended to read as follows:
 14-2          Sec. 111.017.  COMMISSIONER.  This chapter is administered by
 14-3    the commissioner under operational policies established by the
 14-4    commissioner of health and human services [board].  The
 14-5    commissioner is appointed by the commissioner of health and human
 14-6    services [board], with the concurrence of the board and the
 14-7    approval of the governor, on the basis of education, training,
 14-8    experience, and demonstrated ability.  The commissioner serves at
 14-9    the pleasure of the commissioner of health and human services but
14-10    may be discharged only with the concurrence of the board.  The
14-11    commissioner serves as [board and is] secretary to the board, as
14-12    well as chief administrative officer of the agency.
14-13          SECTION 2.15.  Subchapter C, Chapter 111, Human Resources
14-14    Code, is amended by adding Section 111.0505 to read as follows:
14-15          Sec. 111.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
14-16    AND HUMAN SERVICES.  The commissioner of health and human services
14-17    has the powers and duties relating to the commission and
14-18    commissioner as provided by Section 531.0055, Government Code.  To
14-19    the extent a power or duty given to the commission or commissioner
14-20    by this chapter or another law conflicts with Section 531.0055,
14-21    Government Code, Section 531.0055 controls.
14-22          SECTION 2.16.  Subchapter C, Chapter 141, Human Resources
14-23    Code, is amended by adding Section 141.0405 to read as follows:
14-24          Sec. 141.0405.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
14-25    AND HUMAN SERVICES.  The commissioner of health and human services
14-26    has the powers and duties relating to the commission and director
14-27    as provided by Section 531.0055, Government Code.  To the extent a
 15-1    power or duty given to the commission or director by this chapter
 15-2    or another law conflicts with Section 531.0055, Government Code,
 15-3    Section 531.0055 controls.
 15-4          SECTION 2.17.  Sections 11.012(a), (b), (c), and (d), Health
 15-5    and Safety Code, are amended to read as follows:
 15-6          (a)  The commissioner of health and human services shall
 15-7    appoint [board shall employ] the commissioner with the concurrence
 15-8    of the board and the approval of the governor.  The commissioner
 15-9    serves at the will of the commissioner of health and human services
15-10    but may be discharged only with the concurrence of the board.
15-11          (b)  Except as provided in Subsection (c), the commissioner
15-12    must:
15-13                (1)  have at least five years of experience in the
15-14    administration of public health systems; and
15-15                (2)  be a person licensed to practice medicine in this
15-16    state.
15-17          (c)  The commissioner of health and human services [board]
15-18    may, based on the qualifications and experience in administering
15-19    public health systems, appoint [and on two thirds vote of the
15-20    board, employ] a person other than a physician as the commissioner.
15-21          (d)  If the commissioner of health and human services
15-22    appoints [board employs] a person as commissioner who is not a
15-23    physician, then the board shall designate a person licensed to
15-24    practice medicine in this state as chief medical executive.
15-25          SECTION 2.18.  Subchapter A, Chapter 12, Health and Safety
15-26    Code, is amended by adding Section 12.0001 to read as follows:
15-27          Sec. 12.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 16-1    AND HUMAN SERVICES.  The commissioner of health and human services
 16-2    has the powers and duties relating to the board and commissioner as
 16-3    provided by Section 531.0055, Government Code.  To the extent a
 16-4    power or duty given to the board or commissioner by this title or
 16-5    another law conflicts with Section 531.0055, Government Code,
 16-6    Section 531.0055 controls.
 16-7          SECTION 2.19.  Section 461.011(a), Health and Safety Code, is
 16-8    amended to read as follows:
 16-9          (a)  The commissioner of health and human services
16-10    [commission] shall employ an executive director with the
16-11    concurrence of the commission and the approval of the governor.
16-12    The executive director serves at the pleasure of the commissioner
16-13    but may be discharged only with the concurrence of the commission.
16-14    The executive director shall hire other necessary employees.
16-15          SECTION 2.20.  Chapter 461, Health and Safety Code, is
16-16    amended by adding Section 461.0115 to read as follows:
16-17          Sec. 461.0115.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
16-18    AND HUMAN SERVICES.  The commissioner of health and human services
16-19    has the powers and duties relating to the commission and executive
16-20    director as provided by Section 531.0055, Government Code.  To the
16-21    extent a power or duty given to the commission or executive
16-22    director by this chapter or another law conflicts with Section
16-23    531.0055, Government Code, Section 531.0055 controls.
16-24          SECTION 2.21.  Sections 532.011(a), (c), (d), and (f), Health
16-25    and Safety Code, are amended to read as follows:
16-26          (a)  The commissioner of health and human services [board]
16-27    shall appoint a commissioner with the concurrence of the board and
 17-1    the approval of the governor.
 17-2          (c)  The commissioner holds office at the will of the
 17-3    commissioner of health and human services but may be discharged
 17-4    only with the concurrence of the board.
 17-5          (d)  The [Subject to board rules and basic and general
 17-6    policies, the] commissioner:
 17-7                (1)  has the administrative and decisional powers
 17-8    granted under this subtitle; and
 17-9                (2)  shall administer the department and this subtitle
17-10    and ensure [assure] the effective administration of the department
17-11    and its programs and services.
17-12          (f)  The [With the board's approval, the] commissioner shall:
17-13                (1)  establish an organizational structure within the
17-14    department that will promote the effective administration of this
17-15    subtitle; and
17-16                (2)  establish the duties and functions of the
17-17    department's staff.
17-18          SECTION 2.22.  Subchapter A, Chapter 533, Health and Safety
17-19    Code, is amended by adding Section 533.0001 to read as follows:
17-20          Sec. 533.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
17-21    AND HUMAN SERVICES.  The commissioner of health and human services
17-22    has the powers and duties relating to the board and commissioner as
17-23    provided by Section 531.0055, Government Code.  To the extent a
17-24    power or duty given to the board or commissioner by this title or
17-25    another law conflicts with Section 531.0055, Government Code,
17-26    Section 531.0055 controls.
17-27          SECTION 2.23.  (a)  In this section, "agency director" has
 18-1    the meaning assigned by Section 531.0055, Government Code, as added
 18-2    by this Act.
 18-3          (b)  An agency director serving on the effective date of this
 18-4    Act continues to serve in that position until the expiration of the
 18-5    term of that person's appointment or employment or until removed
 18-6    from the position as provided by law.  A vacancy in the position of
 18-7    an agency director that occurs on or after the effective date of
 18-8    this Act shall be filled by the commissioner of health and human
 18-9    services with the concurrence of the agency governing board and the
18-10    approval of the governor as required by the change in law made by
18-11    this Act.
18-12          (c)  With the concurrence of the agency governing board and
18-13    the approval of the governor, the commissioner of health and human
18-14    services is authorized to appoint the agency director of an agency
18-15    added to those agencies defined as health and human services
18-16    agencies in Section 531.001, Government Code, by any other Act of
18-17    the 76th Legislature.  The agency director serves at the pleasure
18-18    of the commissioner of health and human services but may be
18-19    discharged only with the concurrence of the governing body of the
18-20    agency.
18-21                 ARTICLE 3.  SPECIFIC FUNCTIONS OF HEALTH
18-22                       AND HUMAN SERVICES COMMISSION
18-23          SECTION 3.01.  Section 531.021(b), Government Code, is
18-24    amended to read as follows:
18-25          (b)  The commission shall:
18-26                (1)  plan and direct the Medicaid program in each
18-27    agency that operates a portion of the Medicaid program, including
 19-1    the management of the Medicaid managed care system and the
 19-2    development, procurement, management, and monitoring of contracts
 19-3    necessary to implement the Medicaid managed care system;
 19-4                (2)  adopt [is responsible for adopting] reasonable
 19-5    rules and standards governing the determination of fees, charges,
 19-6    and rates for medical assistance payments under Chapter 32, Human
 19-7    Resources Code, in consultation[.  In adopting these rules and
 19-8    standards, the commission shall consult] with the agencies that
 19-9    operate the Medicaid program; and
19-10                (3)  evaluate the Medicaid managed care system in
19-11    conjunction with the Texas Health Care Information Council under
19-12    Section 108.0065, Health and Safety Code.
19-13          SECTION 3.02.  Subchapter B, Chapter 531, Government Code, is
19-14    amended by adding Sections 531.0246, 531.0247, 531.0248, and
19-15    531.0249 to read as follows:
19-16          Sec. 531.0246.  REGIONAL MANAGEMENT OF HEALTH AND HUMAN
19-17    SERVICES AGENCIES.  Subject to Section 531.0055(c), the commission
19-18    may require a health and human services agency, under the direction
19-19    of the commission, to:
19-20                (1)  locate all or a portion of the agency's employees
19-21    and programs in the same building as another health and human
19-22    services agency or at a location near or adjacent to the location
19-23    of another health and human services agency;
19-24                (2)  ensure that the agency's location is accessible to
19-25    disabled employees and agency clients; and
19-26                (3)  consolidate agency support services, including
19-27    clerical and administrative support services and information
 20-1    resources support services, with support services provided to or by
 20-2    another health and human services agency.
 20-3                (4)  The Health and Human Services Commission, in
 20-4    coordination with the Texas Department of Mental Health and Mental
 20-5    Retardation, shall evaluate the current and long-term costs
 20-6    associated with serving in-patient psychiatric needs of persons
 20-7    living in counties now served by the Austin State Hospital, the San
 20-8    Antonio State Hospital, and the Kerrville State Hospital.  This
 20-9    evaluation shall take into consideration the condition of the
20-10    physical plants and other long-term asset management issues
20-11    associated with the operation of the hospitals, as well as other
20-12    issues associated with quality psychiatric care.  After such
20-13    determination is made, the Health and Human Services Commission
20-14    shall begin to take action to influence the utilization of these
20-15    state hospitals in order to ensure efficient service delivery.
20-16          Sec. 531.0247.  ANNUAL BUSINESS PLAN.  Subject to Section
20-17    531.0055(c), the commission shall develop and implement an annual
20-18    business services plan for each health and human services region
20-19    that establishes performance objectives for all health and human
20-20    services agencies providing services in the region and measures
20-21    agency effectiveness and efficiency in achieving those objectives.
20-22          Sec. 531.0248.  COMMUNITY-BASED SUPPORT SYSTEMS.  (a)
20-23    Subject to Section 531.0055(d), the commission shall assist
20-24    communities in this state in developing comprehensive,
20-25    community-based support systems for health and human services. At
20-26    the request of a community, the commission shall provide resources
20-27    and assistance to the community to enable the community to:
 21-1                (1)  identify and overcome institutional barriers to
 21-2    developing more comprehensive community support systems, including
 21-3    barriers that result from the policies and procedures of state
 21-4    health and human services agencies; and
 21-5                (2)  develop a system of blended funds to allow the
 21-6    community to customize services to fit individual community needs.
 21-7          (b)  At the request of the commission, a health and human
 21-8    services agency shall provide resources and assistance to a
 21-9    community as necessary to perform the commission's duties under
21-10    Subsection (a).
21-11          (c)  A health and human services agency that receives or
21-12    develops a proposal for a community initiative shall submit the
21-13    initiative to the commission for review and approval. The
21-14    commission shall review the initiative to ensure that the
21-15    initiative is consistent with other similar programs offered in
21-16    communities and does not duplicate other services provided in the
21-17    community.
21-18          (d)  In implementing this section, the commission shall
21-19    consider models used in other service delivery systems, including
21-20    the mental health and mental retardation service delivery system.
21-21          Sec. 531.0249.  ADVISORY COMMITTEE FOR LOCAL GOVERNMENTAL
21-22    ENTITIES.  (a)  The commission shall appoint an advisory committee
21-23    composed of representatives of governmental entities identified
21-24    under Section 531.022(e).
21-25          (b)  The advisory committee:
21-26                (1)  shall advise the commission with respect to
21-27    establishing flexible and responsive strategies for blending
 22-1    federal, state, and other available funding sources to meet local
 22-2    program needs and service priorities, in implementation of Sections
 22-3    531.022, 531.024, and 531.0248; and
 22-4                (2)  may assist the commission in performing its other
 22-5    functions under Sections 531.022, 531.024, 531.0248, and
 22-6    531.028(b)(6).
 22-7          (c)  A member of the advisory committee may not receive
 22-8    compensation, but is entitled to reimbursement of the travel
 22-9    expenses incurred by the member while conducting the business of
22-10    the committee, as provided by the General Appropriations Act.
22-11          (d)  The advisory committee is not subject to Chapter 2110.
22-12          SECTION 3.03.  Sections 531.0271 and 531.0273, Government
22-13    Code, are amended to read as follows:
22-14          Sec. 531.0271.  HEALTH AND HUMAN SERVICES AGENCIES OPERATING
22-15    BUDGETS.  The commission may, within the limits established by and
22-16    subject to [(a)  In addition to the provisions of] the General
22-17    Appropriations Act, transfer amounts appropriated to health and
22-18    human services agencies among the agencies to [the commission shall
22-19    review and comment on]:
22-20                (1)  enhance the receipt of federal money under the
22-21    federal funds management system established under Section 531.028;
22-22                (2)  achieve efficiencies in the administrative support
22-23    functions of the agencies; and
22-24                (3)  perform the functions assigned to the commissioner
22-25    under Section 531.0055 [the annual operating budget of each health
22-26    and human services agency; and]
22-27                [(2)  the transfer of funds between budget strategies
 23-1    made by each health and human services agency before that transfer.]
 23-2          [(b)  The commission shall issue a quarterly report regarding
 23-3    the projected expenditures by budget strategy of each health and
 23-4    human services agency compared to each agency's operating budget].
 23-5          Sec. 531.0273.  INFORMATION RESOURCES PLANNING AND
 23-6    MANAGEMENT; ADVISORY COMMITTEE [AUTOMATED SYSTEMS].  (a)  The
 23-7    commission is responsible for strategic planning for information
 23-8    resources at each health and human services agency and shall direct
 23-9    the management of information resources at each health and human
23-10    services agency.  The commission shall:
23-11                (1)  develop a coordinated strategic plan for
23-12    information resources management that:
23-13                      (A)  covers a five-year period;
23-14                      (B)  defines objectives for information resources
23-15    management at each health and human services agency;
23-16                      (C)  prioritizes information resources projects
23-17    and implementation of new technology for all health and human
23-18    services agencies;
23-19                      (D)  integrates planning and development of each
23-20    information resources system used by a health and human services
23-21    agency into a coordinated information resources management planning
23-22    and development system established by the commission;
23-23                      (E)  establishes standards for information
23-24    resources system security and that promotes the ability of
23-25    information resources systems to operate with each other; and
23-26                      (F)  achieves economies of scale and related
23-27    benefits in purchasing for health and human services information
 24-1    resources systems;
 24-2                (2)  establish information resources management
 24-3    policies, procedures, and technical standards and ensure compliance
 24-4    with those policies, procedures, and standards; and
 24-5                (3)  review and approve the information resources
 24-6    management and biennial operating plan of each health and human
 24-7    services agency.
 24-8          (b)  Not later than December 15 of each even-numbered year,
 24-9    the commission shall file the coordinated information resources
24-10    strategic plan with the governor, the lieutenant governor, and the
24-11    speaker of the house of representatives.
24-12          (c)  A health and human services agency may not submit its
24-13    plans to the Department of Information Resources under Subchapter
24-14    E, Chapter 2054, until those plans are approved by the commission.
24-15          (d)  The commission shall appoint an advisory committee
24-16    composed of:
24-17                (1)  information resources managers for state agencies
24-18    and for private employers; and
24-19                (2)  the directors, executive directors, and
24-20    commissioners of health and human services agencies.
24-21          (e)  The advisory committee appointed under Subsection (d)
24-22    shall advise the commission with respect to the implementation of
24-23    the commission's duties under Subsection (a)(1) and:
24-24                (1)  shall advise the commission about:
24-25                      (A)  overall goals and objectives for information
24-26    resources management for all health and human services agencies;
24-27                      (B)  coordination of agency information resources
 25-1    management plans;
 25-2                      (C)  development of short-term and long-term
 25-3    strategies for:
 25-4                            (i)  implementing information resources
 25-5    management policies, procedures, and technical standards; and
 25-6                            (ii)  ensuring compatibility of information
 25-7    resources systems across health and human services agencies as
 25-8    technology changes;
 25-9                      (D)  information resources training and skill
25-10    development for health and human services agency employees and
25-11    policies to facilitate recruitment and retention of trained
25-12    employees;
25-13                      (E)  standards for determining:
25-14                            (i)  the circumstances in which obtaining
25-15    information resources services under contract is appropriate;
25-16                            (ii)  the information resources services
25-17    functions that must be performed by health and human services
25-18    agency information resources services employees; and
25-19                            (iii)  the information resources services
25-20    skills that must be maintained by health and human services agency
25-21    information resources services employees;
25-22                      (F)  optimization of the use of information
25-23    resources technology that is in place at health and human services
25-24    agencies; and
25-25                      (G)  existing and potential future information
25-26    resources technologies and practices and the usefulness of those
25-27    technologies and practices to health and human services agencies;
 26-1    and
 26-2                (2)  shall review and make recommendations to the
 26-3    commission relating to the consolidation and improved efficiency of
 26-4    information resources management functions, including:
 26-5                      (A)  cooperative leasing of information resources
 26-6    systems equipment;
 26-7                      (B)  consolidation of data centers;
 26-8                      (C)  improved network operations;
 26-9                      (D)  technical support functions, including help
26-10    desk services, call centers, and data warehouses;
26-11                      (E)  administrative applications;
26-12                      (F)  purchases of standard software;
26-13                      (G)  joint training efforts;
26-14                      (H)  recruitment and retention of trained agency
26-15    employees;
26-16                      (I)  video conferencing; and
26-17                      (J)  other related opportunities for improved
26-18    efficiency.
26-19          (f)  A member of the advisory committee may not receive
26-20    compensation, but is entitled to reimbursement of the travel
26-21    expenses incurred by the member while conducting the business of
26-22    the committee, as provided by the General Appropriations Act.
26-23          (g)  The advisory committee is not subject to Chapter 2110.
26-24          SECTION 3.04.  Section 531.028, Government Code, is amended
26-25    to read as follows:
26-26          Sec. 531.028.  MANAGEMENT AND DISTRIBUTION OF FUNDS.  (a)
26-27    The commission, within the limits established by and subject to the
 27-1    General Appropriations Act, shall manage and distribute all federal
 27-2    funds received by health and human services agencies.
 27-3          (b)  The commissioner shall establish a federal money
 27-4    management system to coordinate and monitor the use of federal
 27-5    money that is received by health and human services agencies to
 27-6    ensure that the money is spent in the most efficient manner and
 27-7    shall:
 27-8                (1)  establish priorities for use of federal money by
 27-9    all health and human services agencies, in coordination with the
27-10    coordinated strategic plan established under Section 531.022 and
27-11    the budget prepared under Section 531.026;
27-12                (2)  coordinate and monitor the use of federal money
27-13    for health and human services to ensure that the money is spent in
27-14    the most cost-effective manner throughout the health and human
27-15    services system;
27-16                (3)  review and approve all federal funding plans for
27-17    health and human services in this state;
27-18                (4)  estimate available federal money, including earned
27-19    federal money, and monitor unspent money;
27-20                (5)  ensure that the state meets federal requirements
27-21    relating to receipt of federal money for health and human services,
27-22    including requirements relating to state matching money and
27-23    maintenance of effort;
27-24                (6)  transfer appropriated amounts as described by
27-25    Section 531.0271; and
27-26                (7)  ensure that each governmental entity identified
27-27    under Section 531.022(e) has access to complete and timely
 28-1    information about all sources of federal money for health and human
 28-2    services programs and that technical assistance is available to
 28-3    governmental entities seeking grants of federal money to provide
 28-4    health and  human services.
 28-5          (c)  The commission shall prepare an annual report with
 28-6    respect to the results of the implementation of this section. The
 28-7    report must identify strategies to maximize the receipt and use of
 28-8    federal funds and to improve federal funds management. The
 28-9    commission shall file the report with the governor, the lieutenant
28-10    governor, and the speaker of the house of representatives not later
28-11    than December 15 of each year [request budget execution for the
28-12    transfer of funds from one agency to another;]
28-13                [(2)  establish a federal health and human services
28-14    funds management system and maximize the availability of those
28-15    funds; and]
28-16                [(3)  review and comment on health and human services
28-17    agency formulas for the distribution of funds to ensure that the
28-18    formulas, to the extent permitted by federal law, consider such
28-19    need factors as client base, population, and economic and
28-20    geographic factors within the regions of the state].
28-21          SECTION 3.05.  Section 531.0312, Government Code, is amended
28-22    to read as follows:
28-23          Sec. 531.0312.  TEXAS INFORMATION AND REFERRAL NETWORK.
28-24    (a)  The Texas Information and Referral Network at the commission
28-25    is the program responsible for the development, coordination, and
28-26    implementation of a statewide information and referral network that
28-27    integrates existing community-based structures with state and local
 29-1    agencies.  The network must include information relating to
 29-2    transportation  services provided to clients of state and local
 29-3    agencies.
 29-4          (b)  The commission shall cooperate with the Records
 29-5    Management Interagency Coordinating Council and the General
 29-6    Services Commission to establish a single method of categorizing
 29-7    information about health and human services to be used by the
 29-8    Records Management Interagency Coordinating Council and the Texas
 29-9    Information and Referral Network. The network, in cooperation with
29-10    the council and the General Services Commission, shall ensure that:
29-11                (1)  information relating to health and human services
29-12    is included in each residential telephone directory published by a
29-13    for-profit publisher and distributed to the public at minimal or no
29-14    cost; and
29-15                (2)  the single method of categorizing information
29-16    about health and human services is used in a residential telephone
29-17    directory described by Subdivision (1).
29-18          (c)  A health and human services agency shall provide the
29-19    Texas Information and Referral Network and the Records Management
29-20    Interagency  Coordinating Council with information about the health
29-21    and human services provided by the agency for inclusion in the
29-22    statewide information and referral network, residential telephone
29-23    directories described by Subsection (b), and any other materials
29-24    produced under the direction of the network or the council.  The
29-25    agency shall provide the information in the format required by the
29-26    Texas  Information and Referral Network or the Records Management
29-27    Interagency Coordinating Council and shall update the information
 30-1    at least quarterly or as required by the network or the council.
 30-2          SECTION 3.06.  Section 531.034, Government Code, is amended
 30-3    by amending Subsection (b) and adding Subsection (d) to read as
 30-4    follows:
 30-5          (b)  The commission shall review agency rules:
 30-6                (1)  for compliance with:
 30-7                      (A) [(1)]  the coordinated strategic plan;
 30-8                      (B) [(2)]  existing statutory authority;
 30-9                      (C) [(3)]  rules of other health and human
30-10    services agencies; and
30-11                      (D) [(4)]  budgetary implications; and
30-12                (2)  to ensure that the rules do not:
30-13                      (A)  discourage marriage; or
30-14                      (B)  encourage divorce.
30-15          (d)  The commission shall adopt rules to establish criteria
30-16    for determining, as required by Subsection (b), whether an agency
30-17    rule discourages marriage or encourages divorce.
30-18          SECTION 3.07.  Not later than January 1, 2000, the Health and
30-19    Human Services Commission shall adopt the rules required by Section
30-20    531.034(d), Government Code, as added by this article.
30-21          SECTION 3.08.  Section 441.053(j), Government Code,  is
30-22    redesignated as Subsection (j) of Section 441.203, Government Code,
30-23    as added by Chapter 873, Acts of the 75th Legislature, Regular
30-24    Session, 1997, and is amended to read as follows:
30-25          (j)  The council shall categorize state agency programs and
30-26    telephone numbers by subject matter as well as by agency.  The
30-27    council shall cooperate with the Texas Information and Referral
 31-1    Network under Section 531.0312 to ensure that the council and the
 31-2    network use a single method of defining and organizing information
 31-3    about health and human services.  State agencies shall cooperate
 31-4    with the council by providing the council with the information it
 31-5    needs to perform this function.
 31-6          SECTION 3.09.  Section 9.12, Chapter 655, Acts of the 74th
 31-7    Legislature, Regular Session, 1995, as amended by Section 1,
 31-8    Chapter 1116, Acts of the 75th Legislature, Regular Session, 1997,
 31-9    is redesignated as Subchapter F, Chapter 531, Government Code, and
31-10    amended to read as follows:
31-11            SUBCHAPTER F.  TEXAS INTEGRATED ENROLLMENT SERVICES
31-12          Sec. 531.191 [9.12].  INTEGRATED ELIGIBILITY DETERMINATION.
31-13    (a)  The commission [In consultation and coordination with the
31-14    Texas Integrated Enrollment Services Legislative Oversight
31-15    Committee established under Section 531.202, Government Code, the
31-16    Health and Human Services Commission], subject to the approval of
31-17    the governor and the Legislative Budget Board, shall develop and
31-18    implement a plan for the integration of services and functions
31-19    relating to eligibility determination and service delivery by
31-20    health and human services agencies, the Texas Workforce Commission,
31-21    and other agencies.  The plan must include a reengineering of
31-22    eligibility determination business processes, streamlined service
31-23    delivery, a unified and integrated process for the transition from
31-24    welfare to work, and improved access to benefits and services for
31-25    clients. In developing and implementing the plan, the  commission
31-26    [Health and Human Services Commission]:
31-27                (1)  shall give priority to the design and development
 32-1    of computer hardware and software for and provide technical support
 32-2    relating to the integrated eligibility determination system;
 32-3                (2)  shall consult with agencies whose programs are
 32-4    included in the plan, including the Texas Department of Human
 32-5    Services, the Texas Department of Health, and the Texas Workforce
 32-6    Commission;
 32-7                (3)  may contract for appropriate professional and
 32-8    technical assistance; and
 32-9                (4)  may use the staff and resources of agencies whose
32-10    programs are included in the plan.
32-11          (b)  The integrated eligibility determination and service
32-12    delivery system shall be developed and implemented to achieve
32-13    increased quality of and client access to services and savings in
32-14    the cost of providing administrative and other services and staff
32-15    resulting from streamlining and eliminating duplication of
32-16    services. The commission, subject to any spending limitation
32-17    prescribed in the General Appropriations Act, may use the resulting
32-18    savings to further develop the integrated system and to provide
32-19    other health and human services.
32-20          (c)  The commission shall examine cost-effective methods to
32-21    address:
32-22                (1)  fraud in the assistance programs; and
32-23                (2)  the error rate in eligibility determination.
32-24          (d)  On receipt by the state of any necessary federal
32-25    approval and subject to the approval of the governor and the
32-26    Legislative Budget Board, the commission may contract for
32-27    implementation of all or part of the plan required by Subsection
 33-1    (a) [of this section] if the commission determines that contracting
 33-2    may advance the objectives of Subsections (a) and (b) [of this
 33-3    section] and meets the criteria set out in the cost-benefit
 33-4    analysis described in this subsection.  Before the awarding of a
 33-5    contract, the commission shall provide a detailed cost-benefit
 33-6    analysis to the governor and[,] the Legislative Budget Board[, and
 33-7    the Texas Integrated Enrollment Services Legislative Oversight
 33-8    Committee established under Section 531.202, Government Code]. The
 33-9    analysis must demonstrate the cost-effectiveness of the plan,
33-10    mechanisms for monitoring performance under the plan, and specific
33-11    improvements to the service delivery system and client access made
33-12    by the plan.  The commission shall make the analysis available to
33-13    the public. Within 10 days after the release of a request for bids,
33-14    proposals, offers, or other applicable expressions of interest
33-15    relating to the development or implementation of the plan required
33-16    by Subsection (a) [of this section], the commission shall hold a
33-17    public hearing and receive public comment on the request. [The
33-18    commission may coordinate with a legislative committee to hold the
33-19    hearings.]
33-20          (e)  [Not later than October 1, 1996, the commission shall
33-21    develop a plan to consolidate administrative and service delivery
33-22    functions in addition to the integrated eligibility determination
33-23    and service delivery system in order to minimize duplication. The
33-24    commission shall prepare a report of the plan for submission to the
33-25    governor, the lieutenant governor, the speaker of the house of
33-26    representatives, the comptroller, and the 75th Legislature when it
33-27    convenes.]
 34-1          [(f)]  If requested by the commission [Health and Human
 34-2    Services Commission], the agencies whose programs are included in
 34-3    the plan required by Subsection (a) [of this section] shall
 34-4    cooperate with the commission to provide available staff and
 34-5    resources that will be subject to the direction of the commission.
 34-6          (f) [(g)]  The design, development, and operation of an
 34-7    automated data processing system to support the plan required by
 34-8    Subsection (a) [of this section] may be financed through the
 34-9    issuance of bonds or other obligations under the Texas Public
34-10    Finance Authority Act (Article 601d, Vernon's Texas Civil
34-11    Statutes).
34-12          Sec. 531.192.  COORDINATION WITH LEGISLATIVE OVERSIGHT
34-13    COMMITTEE.  (a)  The commission shall develop and implement the
34-14    plan required by Section 531.191 in consultation and coordination
34-15    with the Texas Integrated Enrollment Services Legislative Oversight
34-16    Committee established by Section 531.202.
34-17          (b)  Before awarding a contract under Section 531.191(d), the
34-18    commission shall provide the detailed cost-benefit analysis
34-19    described by that subsection to the legislative oversight
34-20    committee.  The commission may coordinate with the the legislative
34-21    oversight committee to hold any hearing required under Section
34-22    531.191(d).
34-23          (c)  This section expires September 1, 2002.
34-24          SECTION 3.10.  Subchapter D, Chapter 531, Government Code, as
34-25    added by Chapter 1116, Acts of the 75th Legislature, Regular
34-26    Session, 1997, is redesignated as Subchapter G, Chapter 531,
34-27    Government Code, and the subchapter heading is amended to read as
 35-1    follows:
 35-2       SUBCHAPTER G [D].  LEGISLATIVE OVERSIGHT FOR TEXAS INTEGRATED
 35-3                            ENROLLMENT SERVICES
 35-4          SECTION 3.11.  Section 531.203(a), Government Code, is
 35-5    amended to read as follows:
 35-6          (a)  The committee shall:
 35-7                (1)  meet at the call of the presiding officer;
 35-8                (2)  receive information about rules proposed or
 35-9    adopted by the commission;
35-10                (3)  review specific recommendations for legislation
35-11    proposed by the commission; and
35-12                (4)  hold public hearings concerning the development
35-13    and implementation of the plan required by Subchapter F [Section
35-14    9.12(a), Chapter 655, Acts of the 74th Legislature, Regular
35-15    Session, 1995,] in at least four geographically diverse locations
35-16    in the state.
35-17          SECTION 3.12.  Section 2155.144, Government Code, as added by
35-18    Chapter 1045, Acts of the 75th Legislature, Regular Session, 1997,
35-19    is amended to read as follows:
35-20          Sec. 2155.144.  PROCUREMENTS BY HEALTH AND HUMAN SERVICES
35-21    AGENCIES.  (a)  This section applies only to the Health and Human
35-22    Services Commission and to each health and human services agency.
35-23          (b)  An agency to which this section applies is delegated the
35-24    authority to procure its goods and services, except as provided by
35-25    this section.
35-26          (c)  An agency to which this section applies shall acquire
35-27    goods or services by any procurement method approved by the Health
 36-1    and Human Services Commission that provides the best value to the
 36-2    agency.  The agency shall document that it considered all relevant
 36-3    factors under Subsection (d) in making the acquisition.
 36-4          (d)  Subject to Subsection (e), the agency may consider all
 36-5    relevant factors in determining the best value, including:
 36-6                (1)  any installation costs;
 36-7                (2)  the delivery terms;
 36-8                (3)  the quality and reliability of the vendor's goods
 36-9    or services;
36-10                (4)  the extent to which the goods or services meet the
36-11    agency's needs;
36-12                (5)  indicators of probable vendor performance under
36-13    the contract such as past vendor performance, the vendor's
36-14    financial resources and ability to perform, the vendor's experience
36-15    and responsibility, and the vendor's ability to provide reliable
36-16    maintenance agreements;
36-17                (6)  the impact on the ability of the agency to comply
36-18    with laws and rules relating to historically underutilized
36-19    businesses or relating to the procurement of goods and services
36-20    from persons with disabilities;
36-21                (7)  the total long-term cost to the agency of
36-22    acquiring the vendor's goods or services;
36-23                (8)  the cost of any employee training associated with
36-24    the acquisition;
36-25                (9)  the effect of an acquisition on agency
36-26    productivity;
36-27                (10)  the acquisition price; and
 37-1                (11)  any other factor relevant to determining the best
 37-2    value for the agency in the context of a particular acquisition.
 37-3          (e)  If an agency to which this section applies acquires
 37-4    goods or services with a value that exceeds $100,000, the agency
 37-5    shall notify the state auditor and shall consult with and receive
 37-6    approval from the Health and Human Services Commission before
 37-7    considering factors other than price and meeting specifications.
 37-8          (f)  The state auditor may audit the agency's acquisitions of
 37-9    goods and services before or after a warrant is issued to pay for
37-10    an acquisition.
37-11          (g)  The agency may adopt rules and procedures for the
37-12    acquisition of goods and services under this section.
37-13          (h)  The Health and Human Services Commission shall adopt
37-14    rules and procedures for the acquisition of goods and services
37-15    under this section that apply to all health and human services
37-16    agencies, including rules adopted with the commission's assistance
37-17    that allow an agency to make purchases through a group purchasing
37-18    program except when a better value is available through another
37-19    procurement method.  The rules of the health and human services
37-20    agencies must be consistent with the rules of the Health and Human
37-21    Services Commission.
37-22          (i)  Subject to Section 531.0055(c), the Health and Human
37-23    Services Commission shall develop a single statewide risk analysis
37-24    procedure.  Each health and human services agency shall comply with
37-25    the procedure.  The procedure must provide for:
37-26                (1)  assessing the risk of fraud, abuse, or waste in
37-27    health and human services agencies contractor selection processes,
 38-1    contract provisions, and payment and reimbursement rates and
 38-2    methods for the different types of goods and services for which
 38-3    health and human services agencies contract;
 38-4                (2)  identifying contracts that require enhanced
 38-5    contract monitoring; and
 38-6                (3)  coordinating contract monitoring efforts among
 38-7    health and human services agencies.
 38-8          (j)  Subject to Section 531.0055(c), the Health and Human
 38-9    Services Commission shall publish a contract management handbook
38-10    that establishes consistent contracting policies and practices to
38-11    be followed by health and human services agencies.   The handbook
38-12    may include standard contract provisions and formats for health and
38-13    human services agencies to incorporate as applicable in their
38-14    contracts.
38-15          (k)  Subject to Section 531.0055(c), the Health and Human
38-16    Services Commission, in cooperation with the comptroller, shall
38-17    establish a central contract management database that identifies
38-18    each contract made with a health and human services agency.  The
38-19    commission may use the database to monitor health and human
38-20    services agency contracts, and health and human services agencies
38-21    may use the database in contracting.  A state agency shall send to
38-22    the commission in the manner prescribed by the commission the
38-23    information the agency possesses that the commission requires for
38-24    inclusion in the database.
38-25          (l)  The Health and Human Services Commission shall
38-26    coordinate the procurement practices of all health and human
38-27    services agencies and encourage those agencies to use efficient
 39-1    procurement practices such as the use of a group purchasing
 39-2    program, combining maintenance contracts into one contract, and
 39-3    obtaining prompt payment discounts.  In implementing this duty, the
 39-4    Health and Human Services Commission may review the procurement and
 39-5    rate-setting procedures of each health and human services agency to
 39-6    ensure that amounts paid to contractors are consistent and
 39-7    represent the best value for the state.  The Health and Human
 39-8    Services Commission may disapprove a procurement and rate-setting
 39-9    procedure of a health and human services agency.  A health and
39-10    human services agency may not use a procurement or rate-setting
39-11    procedure that has been disapproved by the commission.  The Health
39-12    and Human Services Commission may transfer the procurement
39-13    functions of a health and human services agency to another
39-14    appropriate state agency if it determines that transferring those
39-15    functions would be advantageous to the state.  Other state agencies
39-16    and institutions with experience in acquiring goods and services
39-17    using the procedures allowed under Subsections (c) and (d) shall on
39-18    request assist the Health and Human Services Commission to perform
39-19    its functions under this section.
39-20          (m)  Subject to Section 531.0055(c), the Health and Human
39-21    Services Commission shall develop and implement a statewide plan to
39-22    ensure that each entity that contracts with a health and human
39-23    services agency and any subcontractor of the entity complies with
39-24    the accessibility requirements of the Americans with Disabilities
39-25    Act of 1990 (42 U.S.C. Section 12101 et seq.).
39-26          (n) [(j)]  To the extent of any conflict, this section
39-27    prevails over any other state law relating to the procurement of
 40-1    goods and services except a law relating to contracting with
 40-2    historically underutilized businesses or relating to the
 40-3    procurement of goods and services from persons with disabilities.
 40-4          (o)  The Health and Human Services Commission shall prepare
 40-5    an annual report that assesses the compliance of each health and
 40-6    human services agency with the requirements imposed under this
 40-7    section and that identifies any material risk to the state or to
 40-8    the clients of the health and human services agency that results
 40-9    from the agency's procurement and contracting practices.  The
40-10    commission may request the assistance of the state auditor in
40-11    preparing the report. The state auditor shall conduct reviews as
40-12    necessary to assess compliance under this subsection as determined
40-13    by the Legislative Audit Committee.  The commission shall file the
40-14    report with the governor, the lieutenant governor, and the speaker
40-15    of the house of representatives not later than December 15 of each
40-16    year.
40-17          (p) [(k)]  In this section, "health and human services
40-18    agency" has the meaning assigned by Section 531.001.
40-19          SECTION 3.13.  Section 2167.004, Government Code, is amended
40-20    to read as follows:
40-21          Sec. 2167.004.  LEASING SPACE FOR HEALTH AND HUMAN SERVICES
40-22    AGENCIES.  (a)  Notwithstanding any other provision of this chapter
40-23    or of Subchapter C, Chapter 2165, the commission may not lease
40-24    office space to serve the needs of any health and human services
40-25    agency unless the Health and Human Services Commission has approved
40-26    the office space for the agency.
40-27          (b)  The commission may not enter into an emergency lease to
 41-1    serve the needs of a health and human services agency  unless the
 41-2    emergency lease is entered into under criteria adopted by the
 41-3    Health and Human Services Commission in consultation with the
 41-4    commission.  The criteria must:
 41-5                (1)  encourage advance planning by the health and human
 41-6    services agency to facilitate regional management of health and
 41-7    human services agencies by the Health and Human Services Commission
 41-8    under Section 531.0246; and
 41-9                (2)  ensure that the circumstances that require an
41-10    emergency lease are outside of the control of the agency and that
41-11    the agency could not reasonably have been expected to foresee the
41-12    circumstances.
41-13          (c)  In this section, "health and human services agency" has
41-14    the meaning assigned by Section 531.001 [means the:]
41-15                [(1)  Interagency Council on Early Childhood
41-16    Intervention Services;]
41-17                [(2)  Texas Department on Aging;]
41-18                [(3)  Texas Commission on Alcohol and Drug Abuse;]
41-19                [(4)  Texas Commission for the Blind;]
41-20                [(5)  Texas Commission for the Deaf and Hearing
41-21    Impaired;]
41-22                [(6)  Texas Department of Health;]
41-23                [(7)  Texas Department of Human Services;]
41-24                [(8)  Texas Juvenile Probation Commission;]
41-25                [(9)  Texas Department of Mental Health and Mental
41-26    Retardation;]
41-27                [(10)  Texas Rehabilitation Commission; or]
 42-1                [(11)  Department of Protective and Regulatory
 42-2    Services].
 42-3          SECTION 3.14.  (a)  Not later than December 15, 2000, the
 42-4    Health and Human Services Commission shall submit a report relating
 42-5    to the delivery of mental health and substance abuse services in
 42-6    this state to the governor, the lieutenant governor, the speaker of
 42-7    the house of representatives, and the presiding officer of the
 42-8    Health and Human Services Legislative Oversight Committee. The
 42-9    report must include:
42-10                (1)  a comprehensive inventory of all mental health and
42-11    substance abuse services provided by state agencies;
42-12                (2)  the populations to which the services are
42-13    provided;
42-14                (3)  the amount of state resources expended on the
42-15    services;
42-16                (4)  a comprehensive description of interagency
42-17    coordination and collaborative initiatives related to those
42-18    services; and
42-19                (5)  an assessment of whether any of those services are
42-20    redundant of other services provided by state agencies.
42-21          (b)  A health and human services agency or any other state
42-22    agency that provides mental health or substance abuse services
42-23    shall provide the Health and Human Services Commission any
42-24    information, other than confidential information, requested by the
42-25    commission relating to mental health and substance abuse services
42-26    provided by the agency.
42-27          (c)  This section expires December 31, 2000.
 43-1          SECTION 3.15.  (a)  Not later than December 15, 2000, the
 43-2    Health and Human Services Commission shall submit a report relating
 43-3    to regulatory programs conducted by the Texas Department of Health
 43-4    to the governor, the lieutenant governor, the speaker of the house
 43-5    of representatives, and the presiding officer of the Health and
 43-6    Human Services Legislative Oversight Committee. In preparing the
 43-7    report, the commission must consider whether:
 43-8                (1)  health-related regulatory programs conducted by
 43-9    the Texas Department of Health should be consolidated or
43-10    restructured;
43-11                (2)  a new agency, similar to the Texas Department of
43-12    Licensing and Regulation, should be established to administer all
43-13    or some of the health-related regulatory programs;
43-14                (3)  a new agency should be established to administer
43-15    regulatory programs related to health-related professions;
43-16                (4)  a new agency should be established to regulate
43-17    health-related facilities;
43-18                (5)  the duties of the Health Professions Council
43-19    should be expanded to encompass all or some of the health-related
43-20    regulatory programs; or
43-21                (6)  health-related regulatory programs administered by
43-22    the Texas Department of Health should continue to be administered
43-23    by the department without consolidation or restructuring.
43-24          (b)  This section expires December 31, 2000.
43-25          SECTION 3.16.  (a)  The Health and Human Services Commission
43-26    shall:
43-27                (1)  assess the benefits of consolidating support
 44-1    services provided to health and human services agencies in agency
 44-2    headquarters and in regional offices; and
 44-3                (2)  develop a proposed plan and schedule for
 44-4    colocating offices and consolidating support services in accordance
 44-5    with Section 531.0246, Government Code, as added by this Act.
 44-6          (b)  Not later than September 1, 2000, the Health and Human
 44-7    Services Commission shall report the results of the assessment,
 44-8    together with the proposed plan and schedule, to the governor, the
 44-9    lieutenant governor, the speaker of the house of representatives,
44-10    and the presiding officer of the Health and Human Services
44-11    Legislative Oversight Committee.
44-12          SECTION 3.17.  The Health and Human Services Commission, the
44-13    General Services Commission, and the Records Management Interagency
44-14    Coordinating Council shall  ensure that information about health
44-15    and human services presented in the format required by Section
44-16    531.0312, Government Code, as amended by this Act, is available for
44-17    publication in residential telephone directories to be distributed
44-18    to the public after December 1, 2000. Not later than December 31,
44-19    2000, the Health and Human Services Commission, the General
44-20    Services Commission, and the Records Management Interagency
44-21    Coordinating Council shall each report to the governor, the
44-22    lieutenant governor, the speaker of the house of representatives,
44-23    and the presiding officer of the Health and Human Services
44-24    Legislative Oversight Committee with respect to the implementation
44-25    of this section.
44-26          SECTION 3.18.  Notwithstanding Section 2155.144(o),
44-27    Government Code, as added by this article, the state auditor shall
 45-1    conduct initial reviews as necessary to assess compliance under
 45-2    that subsection and complete those reviews not later than September
 45-3    1, 2001.
 45-4              ARTICLE 4. INVESTIGATIONS OF ABUSE AND NEGLECT
 45-5          SECTION 4.01.  Subchapter B, Chapter 531, Government Code, is
 45-6    amended by adding Section 531.053 to read as follows:
 45-7          Sec. 531.053.  INVESTIGATIONS OF ABUSE AND NEGLECT; UNIFORM
 45-8    USE OF TERMS.  (a)  Each health and human services agency that may
 45-9    be required to conduct an investigation of abuse, neglect, or
45-10    exploitation of a client of the agency at a facility operated by or
45-11    under contract with the agency shall use uniform definitions of
45-12    "abuse," "neglect," and "exploitation" adopted by the commission
45-13    under this section.
45-14          (b)  The definitions of "abuse," "neglect," and
45-15    "exploitation" adopted under this section must be at least as
45-16    stringent as any definition that would otherwise be applicable to
45-17    the investigation under law.
45-18          SECTION 4.02.  Section 261.401, Family Code, is amended to
45-19    read as follows:
45-20          Sec. 261.401.  AGENCY INVESTIGATION.  (a)  A state agency
45-21    that operates, licenses, certifies, or registers a facility in
45-22    which children are located shall make a prompt, thorough
45-23    investigation of a report that a child has been or may be abused,
45-24    [or] neglected, or exploited in the facility.  The primary purpose
45-25    of the investigation  shall be the protection of the child.
45-26          (b)  For purposes of an investigation conducted under this
45-27    section, "abuse," "neglect,"  and "exploitation" have the meanings
 46-1    assigned by rules of the Health and Human Services Commission under
 46-2    Section 531.053, Government Code.  The meanings assigned to "abuse"
 46-3    and "neglect" by Section 261.001 do not apply to an investigation
 46-4    under this section.
 46-5          (c)  A state agency shall adopt rules relating to the
 46-6    investigation and resolution of reports received as provided by
 46-7    this subchapter.  The Health and Human Services Commission shall
 46-8    review and approve the rules to ensure that all agencies implement
 46-9    appropriate standards for the conduct of investigations and that
46-10    uniformity exists among agencies in the investigation and
46-11    resolution of reports.
46-12          SECTION 4.03.  Section 48.081, Human Resources Code, is
46-13    amended to read as follows:
46-14          Sec. 48.081.  INVESTIGATION OF REPORTS IN MHMR FACILITIES AND
46-15    IN COMMUNITY CENTERS.  (a)  The department shall receive and
46-16    investigate reports of the abuse, neglect, or exploitation of an
46-17    individual:
46-18                (1)  receiving services in a facility operated by the
46-19    Texas Department of Mental Health and Mental Retardation; or
46-20                (2)  being provided services through a program under
46-21    contract with a facility operated by the Texas Department of Mental
46-22    Health and Mental Retardation.
46-23          (b)  The department and the Texas Department of Mental Health
46-24    and Mental Retardation shall develop joint rules to facilitate
46-25    investigations in state mental health and mental retardation
46-26    facilities.
46-27          (c)  The department shall receive and investigate a report of
 47-1    the alleged abuse, neglect, or exploitation of an individual
 47-2    receiving services in a community center or from a program
 47-3    providing services under contract with a community center.
 47-4          (d)  The department shall forward to a state mental health or
 47-5    mental retardation facility, a community center, or a program
 47-6    providing mental health or mental retardation services under
 47-7    contract with such a facility or community center:
 47-8                (1)  a copy of any report the department receives
 47-9    relating to alleged or suspected abuse, neglect, or exploitation of
47-10    an individual receiving services from that facility, community
47-11    center, or program; and
47-12                (2)  a copy of the department's investigation findings
47-13    and report.
47-14          (e)  The department and the Texas Department of Mental Health
47-15    and Mental Retardation by joint rules shall establish procedures
47-16    for resolving disagreements between the department and the Texas
47-17    Department of Mental Health and Mental Retardation concerning the
47-18    department's investigation findings.  A confirmed investigation
47-19    finding by the department may not be changed by a superintendent of
47-20    a state mental health or mental retardation facility or a director
47-21    of a community center.
47-22          (f)  After completion of the appeals process, the department
47-23    shall refer a complaint relating to an investigation conducted by
47-24    the department under this section to the department's ombudsman
47-25    office for appropriate action.
47-26          (g)  If the department's investigation under this section
47-27    reveals that an elderly or disabled person has been abused by
 48-1    another person in a manner that constitutes a criminal offense
 48-2    under any law, including Section 22.04, Penal Code, a copy of the
 48-3    investigation shall be submitted to the appropriate law enforcement
 48-4    agency.
 48-5          (h)  The department by rule may assign priorities to an
 48-6    investigation conducted by the department under this section.  The
 48-7    primary criterion used by the department in assigning a priority
 48-8    must be the risk that a delay in the investigation will impede the
 48-9    collection of evidence.
48-10          (i)  The department and the Texas Department of Mental Health
48-11    and Mental Retardation shall jointly develop and implement a single
48-12    system to track reports and investigations under this section.  To
48-13    facilitate implementation of the system, the department and the
48-14    Texas Department of Mental Health and Mental Retardation shall use
48-15    appropriate methods of measuring the number and outcome of reports
48-16    and investigations under this section.
48-17          (j)  For purposes of an investigation conducted under this
48-18    section, "abuse," "neglect,"  and "exploitation" have the meanings
48-19    assigned by rule of the Health and Human Services Commission under
48-20    Section 531.053, Government Code.
48-21          (k)  In this section, "community center" has the meaning
48-22    assigned by Section 531.002, Health and Safety Code.
48-23          SECTION 4.04.  (a)  To implement Section 531.053, Government
48-24    Code, as added by this Act, the Health and Human Services
48-25    Commission shall identify each health and human services agency
48-26    that may be required to conduct an investigation described by that
48-27    section and shall convene a working group of representatives of
 49-1    those agencies.  The working group shall develop proposed
 49-2    definitions of "abuse," "neglect," and "exploitation" for purposes
 49-3    of those investigations not later than June 1, 2000.
 49-4          (b)  The Health and Human Services Commission shall by rule
 49-5    adopt uniform definitions of "abuse," "neglect," and "exploitation"
 49-6    not later than August 1, 2000.
 49-7          (c)  A health and human services agency is not required to
 49-8    use the uniform definitions adopted under this section before
 49-9    September 1, 2000.
49-10                  ARTICLE 5. GUARDIANSHIP ADVISORY BOARD
49-11          SECTION 5.01.  Sections 531.122(b) and (d), Government Code,
49-12    are amended to read as follows:
49-13          (b)  The advisory board is composed of one representative
49-14    from each of the health and human services regions, as defined by
49-15    the commission, three public representatives, and one
49-16    representative of the Department of Protective and Regulatory
49-17    Services. The representatives of the health and human services
49-18    regions are appointed by a majority vote of the judges of the
49-19    statutory probate courts in each region.  If a health and human
49-20    services region does not contain a statutory probate court, the
49-21    representative shall be appointed by a majority vote of the judges
49-22    of the statutory probate courts in the state. The public
49-23    representatives are appointed by the commissioner and the
49-24    representative of the Department of Protective and Regulatory
49-25    Services is appointed by the Board of Protective and Regulatory
49-26    Services.
49-27          (d)  A member of the advisory board serves at the pleasure of
 50-1    a majority of the judges of the statutory probate courts that
 50-2    appointed the member, of the commissioner, or of the Board of
 50-3    Protective and Regulatory Services, as appropriate.
 50-4          SECTION 5.02.  Subchapter D, Chapter 531, Government Code, as
 50-5    added by Chapter 1033, Acts of the 75th Legislature, Regular
 50-6    Session, 1997, is amended by adding Section 531.1235 to read as
 50-7    follows:
 50-8          Sec. 531.1235.  ADVISORY BOARD; ADDITIONAL DUTIES; STATEWIDE
 50-9    GUARDIANSHIP SYSTEM.  (a)  In addition to performing the duties
50-10    described by Section 531.122, the advisory board shall:
50-11                (1)  advise the commission and the Department of
50-12    Protective and Regulatory Services with respect to a statewide
50-13    guardianship program and develop a proposal for a statewide
50-14    guardianship program; and
50-15                (2)  review and comment on the guardianship policies of
50-16    all health and human services agencies and recommend changes to the
50-17    policies the advisory board considers necessary or advisable.
50-18          (b)  The advisory board shall prepare an annual report with
50-19    respect to the recommendations of the advisory board under
50-20    Subsection (a).  The advisory board shall file the report with the
50-21    commission, the Department of Protective and Regulatory Services,
50-22    the governor, the lieutenant governor, and the speaker of the house
50-23    of representatives not later than December 15 of each year.
50-24          SECTION 5.03.  Section 531.124, Government Code, is amended
50-25    by adding Subsection (c) to read as follows:
50-26          (c)  The advisory board shall annually review and comment on
50-27    the minimum standards adopted under Subsection (a)(1) and the plan
 51-1    implemented under Subsection (a)(2) and shall include its
 51-2    conclusions in the report submitted under Section 531.1235.
 51-3          SECTION 5.04.  Not later than October 1, 1999, the Board of
 51-4    Protective and Regulatory Services shall appoint the additional
 51-5    members of the Guardianship Advisory Board, as required by Section
 51-6    531.122, Government Code, as amended by this Act.
 51-7               ARTICLE 6.  HEALTH AND HUMAN SERVICES OFFICE
 51-8                   OF COMMUNITY TRANSPORTATION SERVICES
 51-9          SECTION 6.01.  Chapter 131, Human Resources Code, is amended
51-10    to read as follows:
51-11        CHAPTER 131.  HEALTH AND HUMAN SERVICES OFFICE OF COMMUNITY
51-12               TRANSPORTATION SERVICES [AND PLANNING OFFICE]
51-13          Sec. 131.001.  OFFICE.  The Health and Human Services
51-14    [Transportation and Planning] Office of Community Transportation
51-15    Services is in the Health and Human Services Commission.
51-16          Sec. 131.002.  DEFINITIONS.  In this chapter:
51-17                (1)  "Commissioner" means the commissioner of health
51-18    and human services.
51-19                (2)  "Health and human services agency" has the meaning
51-20    assigned by Section 531.001, Government Code.
51-21                (3)  "Office" means the Health and Human Services
51-22    Office of Community Transportation Services.
51-23          Sec. 131.003.  POWERS AND DUTIES.  (a)  The office, with
51-24    assistance from the commissioner, shall:
51-25                (1)  collect data on health and human services client
51-26    transportation needs, services, and expenditures;
51-27                (2)  create a statewide coordination plan regarding a
 52-1    system of transportation for clients of health and human services
 52-2    agencies that provides for coordinated, community-based services,
 52-3    including the designation of local transportation coordinators;
 52-4                (3)  establish a standardized system [standards] of
 52-5    reporting and accounting to be used by [methods for] all health and
 52-6    human services agencies providing [health and human services]
 52-7    client transportation, and ensure that information reported under
 52-8    that system is available through the Texas Information and Referral
 52-9    Network;
52-10                (4)  maximize federal funds for client transportation
52-11    through the use of available state funds for matching purposes and
52-12    the possible use of oil overcharge money and planning funds
52-13    available through the federal department of transportation;
52-14                (5)  evaluate the effectiveness of pooling client
52-15    transportation resources for capital acquisition and the joint
52-16    purchase of liability insurance;
52-17                (6)  assist state agencies in coordinating
52-18    transportation resources;
52-19                (7)  ensure coordination between the office and the
52-20    Texas Department of Transportation with regard to the use of funds
52-21    received by the department under 49 U.S.C.  Section 1612(b)(1);
52-22                (8)  examine the feasibility of consolidating all
52-23    funding for health and human services client transportation and
52-24    creating a transportation system through which clients of a state
52-25    or local agency or program could be matched with the most
52-26    cost-effective and appropriate transportation services for their
52-27    needs, including, to the extent practicable, use of private,
 53-1    nonprofit entities that provide services at little or no cost
 53-2    beyond reimbursement for insurance, fuel, mileage, or other
 53-3    expenses that might deter the entities from otherwise providing
 53-4    services;
 53-5                (9)  evaluate the use of existing computer software for
 53-6    use at the local level in client transportation services; and
 53-7                (10)  review the feasibility of taking medical care to
 53-8    those in need, including the use of mobile clinics, and review the
 53-9    possibility of using federal highway funds for those transportation
53-10    needs.
53-11          (b)  The office [Health and Human Services Transportation and
53-12    Planning Office] shall coordinate with the Health and Human
53-13    Services Commission and health and human services agencies in
53-14    implementing the goals listed in Section 531.022(c), Government
53-15    Code [10(b), Article 4413(502), Revised Statutes].  The office
53-16    shall report its findings and proposals to the governor, the
53-17    Legislative Budget Board, the secretary of state, and the
53-18    commissioner [of health and human services] not later than
53-19    September 1 of each even-numbered year.
53-20          Sec. 131.004 [131.003].  OFFICE STAFF.  The commissioner [of
53-21    health and human services] shall employ staff needed to carry out
53-22    the duties of the office.
53-23          Sec. 131.005.  REPORTING AND ACCOUNTING SYSTEM.  Each health
53-24    and human services agency that provides, purchases, or otherwise
53-25    funds transportation services for clients shall:
53-26                (1)  comply with the standardized system of reporting
53-27    and accounting established by the office under Section
 54-1    131.003(a)(3);
 54-2                (2)  make any changes to agency data collection systems
 54-3    that are necessary to enable  the agency to comply with the
 54-4    standardized system; and
 54-5                (3)  not later than August 31 of each year, submit to
 54-6    the office a report relating to transportation services that
 54-7    complies with the standardized system.
 54-8          Sec. 131.006.  IMPLEMENTATION OF STATEWIDE COORDINATION PLAN.
 54-9    In order to implement the statewide coordination plan created by
54-10    the office under Section 131.003(a)(2), the office shall:
54-11                (1)  review rules, policies, contracts, grants, and
54-12    funding mechanisms relating to transportation services of each
54-13    health and human services agency that provides, purchases, or
54-14    otherwise funds transportation services for clients to determine
54-15    whether the rules, policies, contracts, grants, and funding
54-16    mechanisms are consistent with the plan;
54-17                (2)  make recommendations for revisions to rules,
54-18    policies, contracts, grants, and funding mechanisms determined
54-19    under Subdivision (1) to be inconsistent  with the plan; and
54-20                (3)  not later than September 30 of each even-numbered
54-21    year, submit a report by electronic mail and by hand delivery to
54-22    the governor, the secretary of state, the  Legislative Budget
54-23    Board, and the commissioner relating to the results of the review
54-24    conducted by the office under this section.
54-25          Sec. 131.007.  ADVISORY COMMITTEE ON COORDINATED
54-26    TRANSPORTATION.  The office may create an advisory committee
54-27    consisting of representatives of state agencies, transportation
 55-1    agencies, and nonprofit consumer groups.
 55-2          Sec. 131.008.  MEMORANDUM OF UNDERSTANDING.  (a)  The Health
 55-3    and Human Services Commission and the Texas Department of
 55-4    Transportation shall enter into a memorandum of understanding
 55-5    relating to functions performed by each agency that relate to the
 55-6    duties of the office.
 55-7          (b)  The agencies shall include provisions in the memorandum
 55-8    of understanding necessary to ensure that the agencies do not have
 55-9    duplicative authority, responsibilities, or activities in the area
55-10    of transportation services for clients of health and human services
55-11    agencies.  Specifically, the memorandum of understanding must
55-12    include the following provisions:
55-13                (1)  an acknowledgement that the data collection and
55-14    analysis activities of the office and the Health and Human Services
55-15    Commission are comprehensive in scope, with the goal of developing
55-16    a statewide coordination plan for the provision of transportation
55-17    services for clients of health and human services agencies;
55-18                (2)  an acknowledgement that the data collection and
55-19    analysis activities of the Texas Department of Transportation are
55-20    focused on providing more accurate social service contracting
55-21    information to transit providers;
55-22                (3)  a requirement that the Texas Department of
55-23    Transportation collect information about transportation service
55-24    funding from local social service providers and make the database
55-25    with that information available to the Health and Human Services
55-26    Commission; and
55-27                (4)  a requirement that the Health and Human Services
 56-1    Commission:
 56-2                      (A)  develop standardized reporting methods for
 56-3    health and human services agencies and social service providers to
 56-4    use when reporting information about transportation services,
 56-5    funding, contracting, and all other information needed to develop a
 56-6    statewide coordination plan for transportation services; and
 56-7                      (B)  make the information collected under
 56-8    Paragraph (A) available to the Texas Department of Transportation.
 56-9          SECTION 6.02.  Not later than January 1, 2001, the Health and
56-10    Human Services Office of Community Transportation Services and the
56-11    Commissioner of Health and Human Services shall create the
56-12    statewide  coordination plan required by Section 131.003(a)(2),
56-13    Human Resources Code, as amended by this article.
56-14         ARTICLE 7.  EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES
56-15          SECTION 7.01.  Subchapter B, Chapter 481, Government Code, is
56-16    amended by adding Section 481.025 to read as follows:
56-17          Sec. 481.025.  EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY
56-18    PROGRAM.  The department is the agency of this state responsible
56-19    for administering the Empowerment Zone and Enterprise Community
56-20    grant program in this state. The department shall cooperate with
56-21    appropriate federal and local agencies as necessary to administer
56-22    the grant program.
56-23          SECTION 7.02.  Effective September 1, 1999, administration of
56-24    the Empowerment Zone and Enterprise Community grant program in this
56-25    state is transferred from the Health and Human Services Commission
56-26    to the Texas Department of Economic Development. The commissioner
56-27    of health and human services and the governing board of the Texas
 57-1    Department of Economic Development shall enter into a memorandum of
 57-2    understanding as necessary to implement the transfer required by
 57-3    this section.
 57-4                ARTICLE 8.  HEALTH CARE INFORMATION COUNCIL
 57-5          SECTION 8.01.  Section 531.001(4), Government Code, is
 57-6    amended to read as follows:
 57-7                (4)  "Health and human services agencies" includes the:
 57-8                      (A)  Interagency Council on Early Childhood
 57-9    Intervention [Services];
57-10                      (B)  Texas Department on Aging;
57-11                      (C)  Texas Commission on Alcohol and Drug Abuse;
57-12                      (D)  Texas Commission for the Blind;
57-13                      (E)  Texas Commission for the Deaf and Hard of
57-14    Hearing;
57-15                      (F)  Texas Department of Health;
57-16                      (G)  Texas Department of Human Services;
57-17                      (H)  Texas Juvenile Probation Commission;
57-18                      (I)  Texas Department of Mental Health and Mental
57-19    Retardation;
57-20                      (J)  Texas Rehabilitation Commission; [and]
57-21                      (K)  Department of Protective and Regulatory
57-22    Services; and
57-23                      (L)  Texas Health Care Information Council.
57-24          SECTION 8.02.  Section 108.002(4), Health and Safety Code, is
57-25    amended to read as follows:
57-26                (4)  "Data" means information collected under Section
57-27    108.0065 or 108.009 in the form initially received.
 58-1          SECTION 8.03.  Chapter 108, Health and Safety Code,  is
 58-2    amended by adding Section 108.0065 to read as follows:
 58-3          Sec. 108.0065.  POWERS AND DUTIES OF COUNCIL RELATING TO
 58-4    MEDICAID MANAGED CARE.  (a)  In this section:
 58-5                (1)  "Commission" means the Health and Human Services
 58-6    Commission.
 58-7                (2)  "Medicaid managed care organization" means a
 58-8    managed care organization, as defined by Section 533.001,
 58-9    Government Code, that is contracting with the commission to
58-10    implement the Medicaid managed care program under Chapter 533,
58-11    Government Code.
58-12          (b)  The council, in consultation with the commission, shall
58-13    collect data under this chapter with respect to Medicaid managed
58-14    care organizations. The council may coordinate the collection of
58-15    the data with the collection of data for health benefit plan
58-16    providers, but may collect data in addition to the data otherwise
58-17    required of health benefit plan providers.
58-18          (c)  Each Medicaid managed care organization shall provide
58-19    the data required by the council in the form required by the
58-20    council.
58-21          (d)  Dissemination of data collected under this section is
58-22    subject to Sections 108.010, 108.011, 108.012, 108.013, 108.014,
58-23    and 108.0141.
58-24          (e)  The council, in consultation with the commission, shall
58-25    analyze the data collected in accordance with this section and
58-26    shall use the data to:
58-27                (1)  evaluate the effectiveness and efficiency of the
 59-1    Medicaid managed care system;
 59-2                (2)  determine the extent to which Medicaid managed
 59-3    care does or does not serve the needs of Medicaid recipients in
 59-4    this state; and
 59-5                (3)  assess the cost-effectiveness of the Medicaid
 59-6    managed care system in comparison to the fee-for-service system,
 59-7    considering any improvement in the quality of care provided.
 59-8          (f)  Not later than December 15 of each even-numbered year,
 59-9    the council shall report to the commission, the governor, the
59-10    lieutenant governor, and the speaker of the house of
59-11    representatives with respect to:
59-12                (1)  the council's conclusions under Subsection (e) and
59-13    any improvement made in the delivery of services under the Medicaid
59-14    managed care system since the date of the council's last report
59-15    under this section;
59-16                (2)  recommendations for implementation by the state
59-17    agencies operating the Medicaid managed care system for improvement
59-18    to the Medicaid managed care system; and
59-19                (3)  any recommendations for legislation.
59-20          (g)  The report made under Subsection (f) may be consolidated
59-21    with any report made under Section 108.006(a)(9).
59-22          SECTION 8.04.  Not later than December 15, 1999, the Texas
59-23    Health Care Information Council, in consultation with the Health
59-24    and Human Services Commission and the presiding officer of the
59-25    Health and Human Services Legislative Oversight Committee, shall
59-26    develop a plan for implementing the council's duties under Section
59-27    108.0065, Health and Safety Code, as added by this Act.
 60-1                     ARTICLE 9.  LEGISLATIVE OVERSIGHT
 60-2          SECTION 9.01.  Chapter 531, Government Code, is amended by
 60-3    adding Subchapter E to read as follows:
 60-4      SUBCHAPTER E.  HEALTH AND HUMAN SERVICES LEGISLATIVE OVERSIGHT
 60-5          Sec. 531.171.  DEFINITION.  In this subchapter, "committee"
 60-6    means the Health and Human Services Legislative Oversight
 60-7    Committee.
 60-8          Sec. 531.172.  COMPOSITION OF COMMITTEE; PRESIDING OFFICER.
 60-9    (a)  The committee is composed of:
60-10                (1)  six persons who are members of the senate or the
60-11    lieutenant governor, appointed by the lieutenant governor; and
60-12                (2)  six persons who are members of the house of
60-13    representatives, one of whom may be the speaker of the house of
60-14    representatives, appointed by the speaker of the house of
60-15    representatives.
60-16          (b)  A member of the committee serves at the pleasure of the
60-17    appointing official.
60-18          Sec. 531.173.  COMMITTEE POWERS AND DUTIES.  (a)  The
60-19    committee shall:
60-20                (1)  meet at the call of the presiding officer;
60-21                (2)  monitor the commission's implementation of Section
60-22    531.0055 and the commission's other duties in consolidating and
60-23    integrating health and human services to ensure implementation
60-24    consistent with law;
60-25                (3)  recommend, as needed, adjustments to the
60-26    implementation of Section 531.0055 and the commission's other
60-27    duties in consolidating and integrating health and human services;
 61-1    and
 61-2                (4)  collect, analyze, and report information relating
 61-3    to the health and human services system in this state, including
 61-4    information relating to statewide health and human services needs.
 61-5          (b)  At the committee's request, the commission shall
 61-6    provide:
 61-7                (1)  staff and resources to support the committee,
 61-8    including sufficient resources to analyze the committee's
 61-9    recommendations with respect to the health and human services
61-10    system and to propose additional changes consistent with the
61-11    objectives and directives of the committee;
61-12                (2)  information as requested by the committee; and
61-13                (3)  an annual plan that addresses the topics
61-14    identified by the committee.
61-15          (c)  At the committee's request, a health and human services
61-16    agency shall:
61-17                (1)  provide information to the committee relating to
61-18    the health and human services system; and
61-19                (2)  report on agency progress in implementing
61-20    statutory directives identified by the committee and the directives
61-21    of the commission.
61-22          (d)  The committee may also use staff of standing committees
61-23    in the senate and the house of representatives with appropriate
61-24    jurisdiction, the Department of Information Resources, the state
61-25    auditor, the Texas Legislative Council, and the Legislative Budget
61-26    Board in carrying out its responsibilities.
61-27          Sec. 531.174.  REPORT.  (a)  The committee shall report to
 62-1    the governor, the lieutenant governor, and the speaker of the house
 62-2    of representatives not later than December 31 of each year.
 62-3          (b)  The report must include:
 62-4                (1)  identification of significant problems in the
 62-5    implementation of Section 531.0055 and the commission's other
 62-6    duties in consolidating and integrating health and human services,
 62-7    with recommendations for action by the commissioner;
 62-8                (2)  the status of the implementation of Section
 62-9    531.0055 and the commission's other duties in consolidating and
62-10    integrating health and human services; and
62-11                (3)  recommendations for legislative action, including
62-12    legislation to further consolidate health and human services agency
62-13    functions as appropriate.
62-14          Sec. 531.175.  DURATION OF COMMITTEE.  The committee is
62-15    abolished September 1, 2001.
62-16             ARTICLE 10.  REPEALER; EFFECTIVE DATE; EMERGENCY
62-17          SECTION 10.01.  The following laws are repealed:
62-18                (1)  Section 441.053(k), Government Code; and
62-19                (2)  Section 531.0272, Government Code.
62-20          SECTION 10.02.  This Act takes effect September 1, 1999.
62-21          SECTION 10.03.  The importance of this legislation and the
62-22    crowded condition of the calendars in both houses create an
62-23    emergency and an imperative public necessity that the
62-24    constitutional rule requiring bills to be read on three several
62-25    days in each house be suspended, and this rule is hereby suspended.