By Gray                                               H.B. No. 2641
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                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 531.009, Government Code, is amended
1-15     to read as follows:
1-16           Sec. 531.009.  PERSONNEL.  (a)  The commissioner shall employ
1-17     a medical director to provide medical expertise to the commissioner
1-18     and the commission and may employ other personnel necessary to
1-19     administer the commission's duties.
1-20           (b)  The commissioner or the commissioner's designated
1-21     representative shall develop an intra-agency career ladder program,
 2-1     one part of which must require the intra-agency posting of all
 2-2     non-entry-level positions concurrently with any public posting.
 2-3           (c)  The commissioner or the commissioner's designated
 2-4     representative shall develop a system of annual performance
 2-5     evaluations based on measurable job tasks.  All merit pay for
 2-6     commission employees must be based on the system established under
 2-7     this subsection.
 2-8           (d)  The commissioner shall provide to commission employees
 2-9     as often as is necessary information regarding their qualifications
2-10     under this chapter and their responsibilities under applicable laws
2-11     relating to standards of conduct for state employees.
2-12           (e)  The commissioner or the commissioner's designated
2-13     representative shall prepare and maintain a written policy
2-14     statement that implements [to ensure implementation of] a program
2-15     of equal employment opportunity to ensure that [under which] all
2-16     personnel transactions are made without regard to race, color,
2-17     disability, sex, religion, age, or national origin.
2-18           (f)  The policy statement described by Subsection (e) must
2-19     include:
2-20                 (1)  personnel policies, including policies relating to
2-21     recruitment, evaluation, selection, [appointment,] training, and
2-22     promotion of personnel, that show the intent of the commission to
2-23     avoid the unlawful employment practices described by Chapter 21,
2-24     Labor Code; and
2-25                 (2)  an analysis of the extent to which the composition
 3-1     of the commission's personnel is in accordance with state and
 3-2     federal law and a description of reasonable methods to achieve
 3-3     compliance with state and federal law [a comprehensive analysis of
 3-4     the commission workforce that meets federal and state guidelines;]
 3-5                 [(3)  procedures by which a determination can be made
 3-6     of significant underuse in the commission workforce of all persons
 3-7     for whom federal or state guidelines encourage a more equitable
 3-8     balance; and]
 3-9                 [(4)  reasonable methods to appropriately address areas
3-10     of significant underuse in the commission workforce of all persons
3-11     for whom federal or state guidelines encourage a more equitable
3-12     balance].
3-13           (g)  The policy statement described by Subsection (e) must:
3-14                 (1)  be updated annually;
3-15                 (2)  be reviewed by the state Commission on Human
3-16     Rights for compliance with Subsection (f)(1); and
3-17                 (3)  be filed with the governor's office.
3-18           SECTION 1.03.  Section 531.011, Government Code, is amended
3-19     by adding Subsection (g) to read as follows:
3-20           (g)  In addition to the information file maintained under
3-21     Subsection (e), the commission shall maintain an information file
3-22     on a complaint received by the commission relating to any matter or
3-23     agency under the jurisdiction of the commission.
3-24           SECTION 1.04.  Subchapter A, Chapter 531, Government Code, is
3-25     amended by adding Section 531.014 to read as follows:
 4-1           Sec. 531.014.  CONSOLIDATION OF REPORTS.  The commission may
 4-2     consolidate any annual or biennial reports required to be made
 4-3     under this chapter or another law if:
 4-4                 (1)  the consolidated report is submitted not later
 4-5     than the earliest deadline for the submission of any component of
 4-6     the consolidated report; and
 4-7                 (2)  each person required to receive a component of the
 4-8     consolidated report receives the consolidated report and the
 4-9     consolidated report identifies the component of the report the
4-10     person was required to receive.
4-11      ARTICLE 2.  RELATIONSHIP WITH HEALTH AND HUMAN SERVICES AGENCIES
4-12           SECTION 2.01.  Subchapter A, Chapter 531, Government Code, is
4-13     amended by adding Section 531.0055 to read as follows:
4-14           Sec. 531.0055.  COMMISSIONER: RESPONSIBILITY RELATING TO
4-15     CERTAIN FUNCTIONS OF HEALTH AND HUMAN SERVICES AGENCIES.  (a)  In
4-16     this section:
4-17                 (1)  "Agency director" means the director, executive
4-18     director, or commissioner of a health and human services agency.
4-19                 (2)  "Policymaking body" means the board or commission
4-20     with policymaking authority over a health and human services
4-21     agency.
4-22           (b)  The commission shall:
4-23                 (1)  supervise the administration and operation of the
4-24     Medicaid program, including the administration and operation of the
4-25     Medicaid managed care system in accordance with Section 531.021;
 5-1                 (2)  supervise information systems planning and
 5-2     management for health and human services agencies under Section
 5-3     531.0273;
 5-4                 (3)  manage and distribute all federal funds received
 5-5     by a health and human services agency in accordance with Section
 5-6     531.028; and
 5-7                 (4)  implement Texas Integrated Enrollment Services as
 5-8     required by Subchapter F.
 5-9           (c)  After implementation of the commission's duties under
5-10     Subsection (b), the commission shall implement the powers and
5-11     duties given to the commission under Sections 531.0246, 531.0247,
5-12     2155.144, as added by Chapter 1045, Acts of the 75th Legislature,
5-13     Regular Session, 1997, and 2167.004.
5-14           (d)  After implementation of the commission's duties under
5-15     Subsections (b) and (c), the commission shall implement the powers
5-16     and duties given to the commission under Section 531.0248.
5-17           (e)  Notwithstanding any other law, the commissioner, as
5-18     necessary to perform the functions described by Subsections (b),
5-19     (c), and (d) in implementation of the policies established by each
5-20     agency's policymaking body, shall:
5-21                 (1)  manage and direct the operations of each health
5-22     and human services agency; and
5-23                 (2)  supervise and direct the activities of each agency
5-24     director.
5-25           (f)  The operational authority of the commissioner for
 6-1     purposes of Subsection (e) at each health and human services agency
 6-2     includes authority over the:
 6-3                 (1)  management of the daily operations of the agency,
 6-4     including the organization and management of the agency and agency
 6-5     operating procedures;
 6-6                 (2)  allocation of resources within the agency,
 6-7     including use of federal funds received by the agency;
 6-8                 (3)  personnel and employment policies;
 6-9                 (4)  contracting, purchasing, and related policies,
6-10     subject to this chapter and other laws relating to contracting and
6-11     purchasing by a state agency;
6-12                 (5)  information resources systems used by the agency;
6-13                 (6)  location of agency facilities; and
6-14                 (7)  coordination of agency activities with activities
6-15     of other state agencies, including other health and human services
6-16     agencies.
6-17           (g)  Notwithstanding any other law, the operational authority
6-18     of the commissioner for purposes of Subsection (e) at each health
6-19     and human services agency includes the authority to adopt or
6-20     approve, subject to applicable limitations, any rate of payment or
6-21     similar provision required by law to be adopted or approved by the
6-22     agency.
6-23           (h)  For each health and human services agency, the
6-24     commissioner shall implement a program to evaluate and supervise
6-25     the daily operations of the agency.  The program must include
 7-1     measurable performance objectives for each agency director and
 7-2     adequate reporting requirements to permit the commissioner to
 7-3     perform the duties assigned to the commissioner under this section.
 7-4           (i)  To facilitate the operations of a health and human
 7-5     services agency in accordance with this section, the commissioner
 7-6     may delegate a specific power or duty given under Subsection (f) or
 7-7     (g) to an agency director.
 7-8           (j)  The commissioner may adopt rules to implement the
 7-9     commissioner's authority under this section.
7-10           (k)  The commissioner and each agency director shall enter
7-11     into a memorandum of understanding that:
7-12                 (1)  clearly defines the responsibilities of the agency
7-13     director and the commissioner;
7-14                 (2)  establishes the program of evaluation and
7-15     supervision of daily operations required by Subsection (h); and
7-16                 (3)  describes each delegation of a power or duty made
7-17     under Subsection (i).
7-18           (l)  Notwithstanding any other provision of this section, a
7-19     policymaking body has the authority provided by law to adopt
7-20     policies and rules governing the delivery of services to persons
7-21     who are served by the agency and the rights and duties of persons
7-22     who are served or regulated by the agency.  The commissioner and
7-23     each policymaking body shall enter into a memorandum of
7-24     understanding that clearly defines:
7-25                 (1)  the policymaking authority of the policymaking
 8-1     body; and
 8-2                 (2)  the operational authority of the commissioner.
 8-3           SECTION 2.02.  Section 21.004(b), Human Resources Code, is
 8-4     amended to read as follows:
 8-5           (b)  The commissioner is appointed by the board with the
 8-6     concurrence of the commissioner of health and human services and
 8-7     the approval of the governor.  The commissioner [and] serves at the
 8-8     pleasure of the board.
 8-9           SECTION 2.03.  Chapter 22, Human Resources Code, is amended
8-10     by adding Section 22.0001 to read as follows:
8-11           Sec. 22.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
8-12     AND HUMAN SERVICES.  The commissioner of health and human services
8-13     has the powers and duties relating to the board and commissioner as
8-14     provided by Section 531.0055, Government Code.  To the extent a
8-15     power or duty given to the board or commissioner by this title or
8-16     another law conflicts with Section 531.0055, Government Code,
8-17     Section 531.0055 controls.
8-18           SECTION 2.04.  Section 40.027(a), Human Resources Code, is
8-19     amended to read as follows:
8-20           (a)  The board shall appoint [employ] the executive director
8-21     with the concurrence of the commissioner of health and human
8-22     services and the approval of the governor.  The executive director
8-23     serves at the pleasure of the board.
8-24           SECTION 2.05.  Subchapter C, Chapter 40, Human Resources
8-25     Code, is amended by adding Section 40.0505 to read as follows:
 9-1           Sec. 40.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 9-2     AND HUMAN SERVICES.  The commissioner of health and human services
 9-3     has the powers and duties relating to the board and executive
 9-4     director as provided by Section 531.0055, Government Code.  To the
 9-5     extent a power or duty given to the board or executive director by
 9-6     this chapter or another law conflicts with Section 531.0055,
 9-7     Government Code, Section 531.0055 controls.
 9-8           SECTION 2.06.  Chapter 73, Human Resources Code, is amended
 9-9     by adding Section 73.0045 to read as follows:
9-10           Sec. 73.0045.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
9-11     AND HUMAN SERVICES.  The commissioner of health and human services
9-12     has the powers and duties relating to the board and the executive
9-13     director of the board as provided by Section 531.0055, Government
9-14     Code.  To the extent a power or duty given to the board or
9-15     executive director by this chapter or another law conflicts with
9-16     Section 531.0055, Government Code, Section 531.0055 controls.
9-17           SECTION 2.07.  Section 73.0052(b), Human Resources Code, is
9-18     amended to read as follows:
9-19           (b)  The board shall appoint [employ] an executive director
9-20     with the concurrence of the commissioner of health and human
9-21     services and the approval of the governor.  The executive director
9-22     serves at the pleasure of the board.  The [, and the] executive
9-23     director shall establish necessary administrative units, and hire
9-24     other necessary employees.
9-25           SECTION 2.08.  Chapter 81, Human Resources Code, is amended
 10-1    by adding Section 81.0055 to read as follows:
 10-2          Sec. 81.0055.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 10-3    AND HUMAN SERVICES.  The commissioner of health and human services
 10-4    has the powers and duties relating to the commission and the
 10-5    executive director of the commission as provided by Section
 10-6    531.0055, Government Code.  To the extent a power or duty given to
 10-7    the commission or executive director by this chapter or another law
 10-8    conflicts with Section 531.0055, Government Code, Section 531.0055
 10-9    controls.
10-10          SECTION 2.09.  Section 81.008(a), Human Resources Code, is
10-11    amended to read as follows:
10-12          (a)  The commission shall appoint an executive director with
10-13    the concurrence of the commissioner of health and human services
10-14    and the approval of the governor.  The executive director serves at
10-15    the pleasure of the commission.
10-16          SECTION 2.10.  Section 91.012(a), Human Resources Code, is
10-17    amended to read as follows:
10-18          (a)  The commission shall [annually] appoint an executive
10-19    director with the concurrence of the commissioner of health and
10-20    human services and the approval of the governor.  The executive
10-21    director serves at the pleasure of the commission.
10-22          SECTION 2.11.  Subchapter C, Chapter 91, Human Resources
10-23    Code, is amended by adding Section 91.0205 to read as follows:
10-24          Sec. 91.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
10-25    AND HUMAN SERVICES.  The commissioner of health and human services
 11-1    has the powers and duties relating to the commission and executive
 11-2    director as provided by Section 531.0055, Government Code.  To the
 11-3    extent a power or duty given to the commission or executive
 11-4    director by this chapter or another law conflicts with Section
 11-5    531.0055, Government Code, Section 531.0055 controls.
 11-6          SECTION 2.12.  Section 101.004(a), Human Resources Code, is
 11-7    amended to read as follows:
 11-8          (a)  The board shall appoint an executive director of aging
 11-9    with the concurrence of the commissioner of health and human
11-10    services and the approval of the governor.  The executive director
11-11    shall discharge all executive and administrative functions of the
11-12    department.  The executive director must be a person with executive
11-13    ability and experience in the area of aging.  The executive
11-14    director serves at the pleasure of the board.
11-15          SECTION 2.13.  Subchapter B, Chapter 101, Human Resources
11-16    Code, is amended by adding Section 101.0205 to read as follows:
11-17          Sec. 101.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
11-18    AND HUMAN SERVICES.  The commissioner of health and human services
11-19    has the powers and duties relating to the board and executive
11-20    director as provided by Section 531.0055, Government Code.  To the
11-21    extent a power or duty given to the board or executive director by
11-22    this chapter or another law conflicts with Section 531.0055,
11-23    Government Code, Section 531.0055 controls.
11-24          SECTION 2.14.  Section 111.017, Human Resources Code, is
11-25    amended to read as follows:
 12-1          Sec. 111.017.  COMMISSIONER.  This chapter is administered by
 12-2    the commissioner under operational policies established by the
 12-3    board.  The commissioner is appointed by the board, with the
 12-4    concurrence of the commissioner of health and human services and
 12-5    the approval of the governor, on the basis of education, training,
 12-6    experience, and demonstrated ability.  The commissioner serves at
 12-7    the pleasure of the board and is secretary to the board, as well as
 12-8    chief administrative officer of the agency.
 12-9          SECTION 2.15.  Subchapter C, Chapter 111, Human Resources
12-10    Code, is amended by adding Section 111.0505 to read as follows:
12-11          Sec. 111.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
12-12    AND HUMAN SERVICES.  The commissioner of health and human services
12-13    has the powers and duties relating to the commission and
12-14    commissioner as provided by Section 531.0055, Government Code.  To
12-15    the extent a power or duty given to the commission or commissioner
12-16    by this chapter or another law conflicts with Section 531.0055,
12-17    Government Code, Section 531.0055 controls.
12-18          SECTION 2.16.  Subchapter C, Chapter 141, Human Resources
12-19    Code, is amended by adding Section 141.0405 to read as follows:
12-20          Sec. 141.0405.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
12-21    AND HUMAN SERVICES.  The commissioner of health and human services
12-22    has the powers and duties relating to the commission and director
12-23    as provided by Section 531.0055, Government Code.  To the extent a
12-24    power or duty given to the commission or director by this chapter
12-25    or another law conflicts with Section 531.0055, Government Code,
 13-1    Section 531.0055 controls.
 13-2          SECTION 2.17.  Section 11.012(a), Health and Safety Code, is
 13-3    amended to read as follows:
 13-4          (a)  The board shall appoint [employ] the commissioner with
 13-5    the concurrence of the commissioner of health and human services
 13-6    and the approval of the governor.  The commissioner serves at the
 13-7    will of the board.
 13-8          SECTION 2.18.  Subchapter A, Chapter 12, Health and Safety
 13-9    Code, is amended by adding Section 12.0001 to read as follows:
13-10          Sec. 12.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
13-11    AND HUMAN SERVICES.  The commissioner of health and human services
13-12    has the powers and duties relating to the board and commissioner as
13-13    provided by Section 531.0055, Government Code.  To the extent a
13-14    power or duty given to the board or commissioner by this title or
13-15    another law conflicts with Section 531.0055, Government Code,
13-16    Section 531.0055 controls.
13-17          SECTION 2.19.  Section 461.011(a), Health and Safety Code, is
13-18    amended to read as follows:
13-19          (a)  The commission shall appoint [employ] an executive
13-20    director with the concurrence of the commissioner of health and
13-21    human services and the approval of the governor.  The executive
13-22    director shall hire other necessary employees.
13-23          SECTION 2.20.  Chapter 461, Health and Safety Code, is
13-24    amended by adding Section 461.0115 to read as follows:
13-25          Sec. 461.0115.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 14-1    AND HUMAN SERVICES.  The commissioner of health and human services
 14-2    has the powers and duties relating to the commission and executive
 14-3    director as provided by Section 531.0055, Government Code.  To the
 14-4    extent a power or duty given to the commission or executive
 14-5    director by this chapter or another law conflicts with Section
 14-6    531.0055, Government Code, Section 531.0055 controls.
 14-7          SECTION 2.21.  Section 532.011(a), Health and Safety Code, is
 14-8    amended to read as follows:
 14-9          (a)  The board shall appoint a commissioner with the
14-10    concurrence of the commissioner of health and human services and
14-11    the approval of the governor.
14-12          SECTION 2.22.  Subchapter A, Chapter 533, Health and Safety
14-13    Code, is amended by adding Section 533.0001 to read as follows:
14-14          Sec. 533.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
14-15    AND HUMAN SERVICES.  The commissioner of health and human services
14-16    has the powers and duties relating to the board and commissioner as
14-17    provided by Section 531.0055, Government Code.  To the extent a
14-18    power or duty given to the board or commissioner by this title or
14-19    another law conflicts with Section 531.0055, Government Code,
14-20    Section 531.0055 controls.
14-21          SECTION 2.23.  (a)  In this section, "agency director" has
14-22    the meaning assigned by Section 531.0055, Government Code, as added
14-23    by this Act.
14-24          (b)  An agency director serving on the effective date of this
14-25    Act continues to serve in that position until the expiration of the
 15-1    term of that person's appointment or employment or until removed
 15-2    from the position as provided by law.  A vacancy in the position of
 15-3    an agency director that occurs on or after the effective date of
 15-4    this Act shall be filled by the respective appointing authority
 15-5    with the concurrence of the commissioner of health and human
 15-6    services and the approval of the governor as required by the change
 15-7    in law made by this Act.
 15-8                 ARTICLE 3.  SPECIFIC FUNCTIONS OF HEALTH
 15-9                       AND HUMAN SERVICES COMMISSION
15-10          SECTION 3.01.  Section 531.021(b), Government Code, is
15-11    amended to read as follows:
15-12          (b)  The commission shall:
15-13                (1)  plan and direct the Medicaid program in each
15-14    agency that operates a portion of the Medicaid program, including
15-15    the management of the Medicaid managed care system and the
15-16    development, procurement, management, and monitoring of contracts
15-17    necessary to implement the Medicaid managed care system;
15-18                (2)  adopt [is responsible for adopting] reasonable
15-19    rules and standards governing the determination of fees, charges,
15-20    and rates for medical assistance payments under Chapter 32, Human
15-21    Resources Code, in consultation[.  In adopting these rules and
15-22    standards, the commission shall consult] with the agencies that
15-23    operate the Medicaid program; and
15-24                (3)  evaluate the Medicaid managed care system in
15-25    conjunction with the Texas Health Care Information Council under
 16-1    Section 108.0065, Health and Safety Code.
 16-2          SECTION 3.02.  Subchapter B, Chapter 531, Government Code, is
 16-3    amended by adding Sections 531.0246, 531.0247, 531.0248, and
 16-4    531.0249 to read as follows:
 16-5          Sec. 531.0246.  REGIONAL MANAGEMENT OF HEALTH AND HUMAN
 16-6    SERVICES AGENCIES.  Subject to Section 531.0055(c), the commission
 16-7    may require a health and human services agency, under the direction
 16-8    of the commission, to:
 16-9                (1)  locate all or a portion of the agency's employees
16-10    and programs in the same building as another health and human
16-11    services agency or at a location near or adjacent to the location
16-12    of another health and human services agency; and
16-13                (2)  consolidate agency support services, including
16-14    clerical and administrative support services and information
16-15    resources support services, with support services provided to or by
16-16    another health and human services agency.
16-17          Sec. 531.0247.  ANNUAL PLAN.  Subject to Section 531.0055(c),
16-18    the commission shall develop and implement an annual services plan
16-19    for each health and human services region that establishes
16-20    performance objectives for all health and human services agencies
16-21    providing services in the region and measures agency effectiveness
16-22    and efficiency in achieving those objectives.
16-23          Sec. 531.0248.  COMMUNITY-BASED SUPPORT SYSTEMS.  (a)
16-24    Subject to Section 531.0055(d), the commission shall assist
16-25    communities in this state in developing comprehensive,
 17-1    community-based support systems for health and human services. At
 17-2    the request of a community, the commission shall provide resources
 17-3    and assistance to the community to enable the community to:
 17-4                (1)  identify and overcome institutional barriers to
 17-5    developing more comprehensive community support systems, including
 17-6    barriers that result from the policies and procedures of state
 17-7    health and human services agencies; and
 17-8                (2)  develop a system of blended funds to allow the
 17-9    community to customize services to fit individual community needs.
17-10          (b)  At the request of the commission, a health and human
17-11    services agency shall provide resources and assistance to a
17-12    community as necessary to perform the commission's duties under
17-13    Subsection (a).
17-14          (c)  A health and human services agency that receives or
17-15    develops a proposal for a community initiative shall submit the
17-16    initiative to the commission for review and approval. The
17-17    commission shall review the initiative to ensure that the
17-18    initiative is consistent with other similar programs offered in
17-19    communities and does not duplicate other services provided in the
17-20    community.
17-21          (d)  In implementing this section, the commission shall
17-22    consider models used in other service delivery systems, including
17-23    the mental health and mental retardation service delivery system.
17-24          Sec. 531.0249.  ADVISORY COMMITTEE FOR LOCAL GOVERNMENTAL
17-25    ENTITIES.  (a)  The commission shall appoint an advisory committee
 18-1    composed of representatives of governmental entities identified
 18-2    under Section 531.022(e).
 18-3          (b)  The advisory committee:
 18-4                (1)  shall advise the commission with respect to
 18-5    establishing flexible and responsive strategies for blending
 18-6    federal, state, and other available funding sources to meet local
 18-7    program needs and service priorities, in implementation of Sections
 18-8    531.022, 531.024, and 531.0248; and
 18-9                (2)  may assist the commission in performing its other
18-10    functions under Sections 531.022, 531.024, 531.0248, and
18-11    531.028(b)(6).
18-12          (c)  A member of the advisory committee may not receive
18-13    compensation, but is entitled to reimbursement of the travel
18-14    expenses incurred by the member while conducting the business of
18-15    the committee, as provided by the General Appropriations Act.
18-16          (d)  The advisory committee is not subject to Chapter 2110.
18-17          SECTION 3.03.  Section 531.0273, Government Code, is amended
18-18    to read as follows:
18-19          Sec. 531.0273.  INFORMATION RESOURCES PLANNING AND
18-20    MANAGEMENT; ADVISORY COMMITTEE [AUTOMATED SYSTEMS].  (a)  The
18-21    commission is responsible for strategic planning for information
18-22    resources at each health and human services agency and shall direct
18-23    the management of information resources at each health and human
18-24    services agency.  The commission shall:
18-25                (1)  develop a coordinated strategic plan for
 19-1    information resources management that:
 19-2                      (A)  covers a five-year period;
 19-3                      (B)  defines objectives for information resources
 19-4    management at each health and human services agency;
 19-5                      (C)  prioritizes information resources projects
 19-6    and implementation of new technology for all health and human
 19-7    services agencies;
 19-8                      (D)  integrates planning and development of each
 19-9    information resources system used by a health and human services
19-10    agency into a coordinated information resources management planning
19-11    and development system established by the commission;
19-12                      (E)  establishes standards for information
19-13    resources system security and that promotes the ability of
19-14    information resources systems to operate with each other; and
19-15                      (F)  achieves economies of scale and related
19-16    benefits in purchasing for health and human services information
19-17    resources systems;
19-18                (2)  establish information resources management
19-19    policies, procedures, and technical standards and ensure compliance
19-20    with those policies, procedures, and standards; and
19-21                (3)  review and approve the information resources
19-22    management and biennial operating plan of each health and human
19-23    services agency.
19-24          (b)  Not later than December 15 of each even-numbered year,
19-25    the commission shall file the coordinated information resources
 20-1    strategic plan with the governor, the lieutenant governor, and the
 20-2    speaker of the house of representatives.
 20-3          (c)  A health and human services agency may not submit its
 20-4    plans to the Department of Information Resources under Subchapter
 20-5    E, Chapter 2054, until those plans are approved by the commission.
 20-6          (d)  The commission shall appoint an advisory committee
 20-7    composed of:
 20-8                (1)  information resources managers for state agencies
 20-9    and for private employers; and
20-10                (2)  the directors, executive directors, and
20-11    commissioners of health and human services agencies.
20-12          (e)  The advisory committee appointed under Subsection (d)
20-13    shall advise the commission with respect to the implementation of
20-14    the commission's duties under Subsection (a)(1) and:
20-15                (1)  shall advise the commission about:
20-16                      (A)  overall goals and objectives for information
20-17    resources management for all health and human services agencies;
20-18                      (B)  coordination of agency information resources
20-19    management plans;
20-20                      (C)  development of short-term and long-term
20-21    strategies for:
20-22                            (i)  implementing information resources
20-23    management policies, procedures, and technical standards; and
20-24                            (ii)  ensuring compatibility of information
20-25    resources systems across health and human services agencies as
 21-1    technology changes;
 21-2                      (D)  information resources training and skill
 21-3    development for health and human services agency employees and
 21-4    policies to facilitate recruitment and retention of trained
 21-5    employees;
 21-6                      (E)  standards for determining:
 21-7                            (i)  the circumstances in which obtaining
 21-8    information resources services under contract is appropriate;
 21-9                            (ii)  the information resources services
21-10    functions that must be performed by health and human services
21-11    agency information resources services employees; and
21-12                            (iii)  the information resources services
21-13    skills that must be maintained by health and human services agency
21-14    information resources services employees;
21-15                      (F)  optimization of the use of information
21-16    resources technology that is in place at health and human services
21-17    agencies; and
21-18                      (G)  existing and potential future information
21-19    resources technologies and practices and the usefulness of those
21-20    technologies and practices to health and human services agencies;
21-21    and
21-22                (2)  shall review and make recommendations to the
21-23    commission relating to the consolidation and improved efficiency of
21-24    information resources management functions, including:
21-25                      (A)  cooperative leasing of information resources
 22-1    systems equipment;
 22-2                      (B)  consolidation of data centers;
 22-3                      (C)  improved network operations;
 22-4                      (D)  technical support functions, including help
 22-5    desk services, call centers, and data warehouses;
 22-6                      (E)  administrative applications;
 22-7                      (F)  purchases of standard software;
 22-8                      (G)  joint training efforts;
 22-9                      (H)  recruitment and retention of trained agency
22-10    employees;
22-11                      (I)  video conferencing; and
22-12                      (J)  other related opportunities for improved
22-13    efficiency.
22-14          (f)  A member of the advisory committee may not receive
22-15    compensation, but is entitled to reimbursement of the travel
22-16    expenses incurred by the member while conducting the business of
22-17    the committee, as provided by the General Appropriations Act.
22-18          (g)  The advisory committee is not subject to Chapter 2110.
22-19          SECTION 3.04.  Section 531.028, Government Code, is amended
22-20    to read as follows:
22-21          Sec. 531.028.  MANAGEMENT AND DISTRIBUTION OF FUNDS.  (a)
22-22    The commission shall manage and distribute all federal funds
22-23    received by health and human services agencies.
22-24          (b)  The commissioner shall establish a federal money
22-25    management system to coordinate and monitor the use of federal
 23-1    money that is received by health and human services agencies to
 23-2    ensure that the money is spent in the most efficient manner and
 23-3    shall:
 23-4                (1)  establish priorities for use of federal money by
 23-5    all health and human services agencies, in coordination with the
 23-6    coordinated strategic plan established under Section 531.022 and
 23-7    the budget prepared under Section 531.026;
 23-8                (2)  coordinate and monitor the use of federal money
 23-9    for health and human services to ensure that the money is spent in
23-10    the most cost-effective manner throughout the health and human
23-11    services system;
23-12                (3)  review and approve all federal funding plans for
23-13    health and human services in this state;
23-14                (4)  estimate available federal money, including earned
23-15    federal money, and monitor unspent money;
23-16                (5)  ensure that the state meets federal requirements
23-17    relating to receipt of federal money for health and human services,
23-18    including requirements relating to state matching money and
23-19    maintenance of effort;
23-20                (6)  transfer appropriated amounts, within the limits
23-21    established by the General Appropriations Act, to enhance the
23-22    receipt of federal money and the delivery of health and human
23-23    services; and
23-24                (7)  ensure that each governmental entity identified
23-25    under Section 531.022(e) has access to complete and timely
 24-1    information about all sources of federal money for health and human
 24-2    services programs and that technical assistance is available to
 24-3    governmental entities seeking grants of federal money to provide
 24-4    health and  human services.
 24-5          (c)  The commission shall prepare an annual report with
 24-6    respect to the results of the implementation of this section. The
 24-7    report must identify strategies to maximize the receipt and use of
 24-8    federal funds and to improve federal funds management. The
 24-9    commission shall file the report with the governor, the lieutenant
24-10    governor, and the speaker of the house of representatives not later
24-11    than December 15 of each year [request budget execution for the
24-12    transfer of funds from one agency to another;]
24-13                [(2)  establish a federal health and human services
24-14    funds management system and maximize the availability of those
24-15    funds; and]
24-16                [(3)  review and comment on health and human services
24-17    agency formulas for the distribution of funds to ensure that the
24-18    formulas, to the extent permitted by federal law, consider such
24-19    need factors as client base, population, and economic and
24-20    geographic factors within the regions of the state].
24-21          SECTION 3.05.  Section 531.0312, Government Code, is amended
24-22    to read as follows:
24-23          Sec. 531.0312.  TEXAS INFORMATION AND REFERRAL NETWORK.
24-24    (a)  The Texas Information and Referral Network at the commission
24-25    is the program responsible for the development, coordination, and
 25-1    implementation of a statewide information and referral network that
 25-2    integrates existing community-based structures with state and local
 25-3    agencies.  The network must include information relating to
 25-4    transportation  services provided to clients of state and local
 25-5    agencies.
 25-6          (b)  The commission shall cooperate with the Records
 25-7    Management Interagency Coordinating Council and the General
 25-8    Services Commission to establish a single method of categorizing
 25-9    information about health and human services to be used by the
25-10    Records Management Interagency Coordinating Council and the Texas
25-11    Information and Referral Network. The network, in cooperation with
25-12    the council and the General Services Commission, shall ensure that:
25-13                (1)  information relating to health and human services
25-14    is included in each residential telephone directory published by a
25-15    for-profit publisher and distributed to the public at minimal or no
25-16    cost; and
25-17                (2)  the single method of categorizing information
25-18    about health and human services is used in a residential telephone
25-19    directory described by Subdivision (1).
25-20          (c)  A health and human services agency shall provide the
25-21    Texas Information and Referral Network and the Records Management
25-22    Interagency  Coordinating Council with information about the health
25-23    and human services provided by the agency for inclusion in the
25-24    statewide information and referral network, residential telephone
25-25    directories described by Subsection (b), and any other materials
 26-1    produced under the direction of the network or the council.  The
 26-2    agency shall provide the information in the format required by the
 26-3    Texas  Information and Referral Network or the Records Management
 26-4    Interagency Coordinating Council and shall update the information
 26-5    at least quarterly or as required by the network or the council.
 26-6          SECTION 3.06.  Section 441.053(j), Government Code,  is
 26-7    redesignated as Subsection (j) of Section 441.203, Government Code,
 26-8    as added by Chapter 873, Acts of the 75th Legislature, Regular
 26-9    Session, 1997, and is amended to read as follows:
26-10          (j)  The council shall categorize state agency programs and
26-11    telephone numbers by subject matter as well as by agency.  The
26-12    council  shall cooperate with the Texas Information and Referral
26-13    Network under Section 531.0312 to ensure that the council and the
26-14    network use a single method of defining and organizing information
26-15    about health and human services.  State agencies shall cooperate
26-16    with the council by providing the council with the information it
26-17    needs to perform this function.
26-18          SECTION 3.07.  Section 9.12, Chapter 655, Acts of the 74th
26-19    Legislature, Regular Session, 1995, as amended by Section 1,
26-20    Chapter 1116, Acts of the 75th Legislature, Regular Session, 1997,
26-21    is redesignated as Subchapter F, Chapter 531, Government Code, and
26-22    amended to read as follows:
26-23            SUBCHAPTER F.  TEXAS INTEGRATED ENROLLMENT SERVICES
26-24          Sec. 531.191 [9.12].  INTEGRATED ELIGIBILITY DETERMINATION.
26-25    (a)  The commission [In consultation and coordination with the
 27-1    Texas Integrated Enrollment Services Legislative Oversight
 27-2    Committee established under Section 531.202, Government Code, the
 27-3    Health and Human Services Commission], subject to the approval of
 27-4    the governor and the Legislative Budget Board, shall develop and
 27-5    implement a plan for the integration of services and functions
 27-6    relating to eligibility determination and service delivery by
 27-7    health and human services agencies, the Texas Workforce Commission,
 27-8    and other agencies.  The plan must include a reengineering of
 27-9    eligibility determination business processes, streamlined service
27-10    delivery, a unified and integrated process for the transition from
27-11    welfare to work, and improved access to benefits and services for
27-12    clients.  In developing and implementing the plan, the commission
27-13    [Health and Human Services Commission]:
27-14                (1)  shall give priority to the design and development
27-15    of computer hardware and software for and provide technical support
27-16    relating to the integrated eligibility determination system;
27-17                (2)  shall consult with agencies whose programs are
27-18    included in the plan, including the Texas Department of Human
27-19    Services, the Texas Department of Health, and the Texas Workforce
27-20    Commission;
27-21                (3)  may contract for appropriate professional and
27-22    technical assistance; and
27-23                (4)  may use the staff and resources of agencies whose
27-24    programs are included in the plan.
27-25          (b)  The integrated eligibility determination and service
 28-1    delivery system shall be developed and implemented to achieve
 28-2    increased quality of and client access to services and savings in
 28-3    the cost of providing administrative and other services and staff
 28-4    resulting from streamlining and eliminating duplication of
 28-5    services. The commission, subject to any spending limitation
 28-6    prescribed in the General Appropriations Act, may use the resulting
 28-7    savings to further develop the integrated system and to provide
 28-8    other health and human services.
 28-9          (c)  The commission shall examine cost-effective methods to
28-10    address:
28-11                (1)  fraud in the assistance programs; and
28-12                (2)  the error rate in eligibility determination.
28-13          (d)  On receipt by the state of any necessary federal
28-14    approval and subject to the approval of the governor and the
28-15    Legislative Budget Board, the commission may contract for
28-16    implementation of all or part of the plan required by Subsection
28-17    (a) [of this section] if the commission determines that contracting
28-18    may advance the objectives of Subsections (a) and (b) [of this
28-19    section] and meets the criteria set out in the cost-benefit
28-20    analysis described in this subsection.  Before the awarding of a
28-21    contract, the commission shall provide a detailed cost-benefit
28-22    analysis to the governor and[,] the Legislative Budget Board[, and
28-23    the Texas Integrated Enrollment Services Legislative Oversight
28-24    Committee established under Section 531.202, Government Code]. The
28-25    analysis must demonstrate the cost-effectiveness of the plan,
 29-1    mechanisms for monitoring performance under the plan, and specific
 29-2    improvements to the service delivery system and client access made
 29-3    by the plan. The commission shall make the analysis available to
 29-4    the public. Within 10 days after the release of a request for bids,
 29-5    proposals, offers, or other applicable expressions of interest
 29-6    relating to the development or implementation of the plan required
 29-7    by Subsection (a) [of this section], the commission shall hold a
 29-8    public hearing and receive public comment on the request. [The
 29-9    commission may coordinate with a legislative committee to hold the
29-10    hearings.]
29-11          (e)  [Not later than October 1, 1996, the commission shall
29-12    develop a plan to consolidate administrative and service delivery
29-13    functions in addition to the integrated eligibility determination
29-14    and service delivery system in order to minimize duplication. The
29-15    commission shall prepare a report of the plan for submission to the
29-16    governor, the lieutenant governor, the speaker of the house of
29-17    representatives, the comptroller, and the 75th Legislature when it
29-18    convenes.]
29-19          [(f)]  If requested by the commission [Health and Human
29-20    Services Commission], the agencies whose programs are included in
29-21    the plan required by Subsection (a) [of this section] shall
29-22    cooperate with the commission to provide available staff and
29-23    resources that will be subject to the direction of the commission.
29-24          (f) [(g)]  The design, development, and operation of an
29-25    automated data processing system to support the plan required by
 30-1    Subsection (a) [of this section] may be financed through the
 30-2    issuance of bonds or other obligations under the Texas Public
 30-3    Finance Authority Act (Article 601d, Vernon's Texas Civil
 30-4    Statutes).
 30-5          Sec. 531.192.  COORDINATION WITH LEGISLATIVE OVERSIGHT
 30-6    COMMITTEE.  (a)  The commission shall develop and implement the
 30-7    plan required by Section 531.191 in consultation and coordination
 30-8    with the Texas Integrated Enrollment Services Legislative Oversight
 30-9    Committee established by Section 531.202.
30-10          (b)  Before awarding a contract under Section 531.191(d), the
30-11    commission shall provide the detailed cost-benefit analysis
30-12    described by that subsection to the legislative oversight
30-13    committee.  The commission may coordinate with the the legislative
30-14    oversight committee to hold any hearing required under Section
30-15    531.191(d).
30-16          (c)  This section expires September 1, 2002.
30-17          SECTION 3.08.  Subchapter D, Chapter 531, Government Code, as
30-18    added by Chapter 1116, Acts of the 75th Legislature, Regular
30-19    Session, 1997, is redesignated as Subchapter G, Chapter 531,
30-20    Government Code, and the subchapter heading is amended to read as
30-21    follows:
30-22       SUBCHAPTER G [D].  LEGISLATIVE OVERSIGHT FOR TEXAS INTEGRATED
30-23                            ENROLLMENT SERVICES
30-24          SECTION 3.09.  Section 531.203(a), Government Code, is
30-25    amended to read as follows:
 31-1          (a)  The committee shall:
 31-2                (1)  meet at the call of the presiding officer;
 31-3                (2)  receive information about rules proposed or
 31-4    adopted by the commission;
 31-5                (3)  review specific recommendations for legislation
 31-6    proposed by the commission; and
 31-7                (4)  hold public hearings concerning the development
 31-8    and implementation of the plan required by Subchapter F [Section
 31-9    9.12(a), Chapter 655, Acts of the 74th Legislature, Regular
31-10    Session, 1995,] in at least four geographically diverse locations
31-11    in the state.
31-12          SECTION 3.10.  Section 2155.144, Government Code, as added by
31-13    Chapter 1045, Acts of the 75th Legislature, Regular Session, 1997,
31-14    is amended to read as follows:
31-15          Sec. 2155.144.  PROCUREMENTS BY HEALTH AND HUMAN SERVICES
31-16    AGENCIES.  (a)  This section applies only to the Health and Human
31-17    Services Commission and to each health and human services agency.
31-18          (b)  An agency to which this section applies is delegated the
31-19    authority to procure its goods and services, except as provided by
31-20    this section.
31-21          (c)  An agency to which this section applies shall acquire
31-22    goods or services by any procurement method approved by the Health
31-23    and Human Services Commission that provides the best value to the
31-24    agency.  The agency shall document that it considered all relevant
31-25    factors under Subsection (d) in making the acquisition.
 32-1          (d)  Subject to Subsection (e), the agency may consider all
 32-2    relevant factors in determining the best value, including:
 32-3                (1)  any installation costs;
 32-4                (2)  the delivery terms;
 32-5                (3)  the quality and reliability of the vendor's goods
 32-6    or services;
 32-7                (4)  the extent to which the goods or services meet the
 32-8    agency's needs;
 32-9                (5)  indicators of probable vendor performance under
32-10    the contract such as past vendor performance, the vendor's
32-11    financial resources and ability to perform, the vendor's experience
32-12    and responsibility, and the vendor's ability to provide reliable
32-13    maintenance agreements;
32-14                (6)  the impact on the ability of the agency to comply
32-15    with laws and rules relating to historically underutilized
32-16    businesses or relating to the procurement of goods and services
32-17    from persons with disabilities;
32-18                (7)  the total long-term cost to the agency of
32-19    acquiring the vendor's goods or services;
32-20                (8)  the cost of any employee training associated with
32-21    the acquisition;
32-22                (9)  the effect of an acquisition on agency
32-23    productivity;
32-24                (10)  the acquisition price; and
32-25                (11)  any other factor relevant to determining the best
 33-1    value for the agency in the context of a particular acquisition.
 33-2          (e)  If an agency to which this section applies acquires
 33-3    goods or services with a value that exceeds $100,000, the agency
 33-4    shall notify the state auditor and shall consult with and receive
 33-5    approval from the Health and Human Services Commission before
 33-6    considering factors other than price and meeting specifications.
 33-7          (f)  The state auditor may audit the agency's acquisitions of
 33-8    goods and services before or after a warrant is issued to pay for
 33-9    an acquisition.
33-10          (g)  The agency may adopt rules and procedures for the
33-11    acquisition of goods and services under this section.
33-12          (h)  The Health and Human Services Commission shall adopt
33-13    rules and procedures for the acquisition of goods and services
33-14    under this section that apply to all health and human services
33-15    agencies, including rules adopted with the commission's assistance
33-16    that allow an agency to make purchases through a group purchasing
33-17    program except when a better value is available through another
33-18    procurement method.  The rules of the health and human services
33-19    agencies must be consistent with the rules of the Health and Human
33-20    Services Commission.
33-21          (i)  Subject to Section 531.0055(c), the Health and Human
33-22    Services Commission shall develop a single statewide risk analysis
33-23    procedure.  Each health and human services agency shall comply with
33-24    the procedure.  The procedure must provide for:
33-25                (1)  assessing the risk of fraud, abuse, or waste in
 34-1    health and human services agencies contractor selection processes,
 34-2    contract provisions, and payment and reimbursement rates and
 34-3    methods for the different types of goods and services for which
 34-4    health and human services agencies contract;
 34-5                (2)  identifying contracts that require enhanced
 34-6    contract monitoring; and
 34-7                (3)  coordinating contract monitoring efforts among
 34-8    health and human services agencies.
 34-9          (j)  Subject to Section 531.0055(c), the Health and Human
34-10    Services Commission shall publish a contract management handbook
34-11    that establishes consistent contracting policies and practices to
34-12    be followed by health and human services agencies.   The handbook
34-13    may include standard contract provisions and formats for health and
34-14    human services agencies to incorporate as applicable in their
34-15    contracts.
34-16          (k)  Subject to Section 531.0055(c), the Health and Human
34-17    Services Commission, in cooperation with the comptroller, shall
34-18    establish a central contract management database that identifies
34-19    each contract made with a health and human services agency.  The
34-20    commission may use the database to monitor health and human
34-21    services agency contracts, and health and human services agencies
34-22    may use the database in contracting.  A state agency shall send to
34-23    the commission in the manner prescribed by the commission the
34-24    information the agency possesses that the commission requires for
34-25    inclusion in the database.
 35-1          (l)  The Health and Human Services Commission shall
 35-2    coordinate the procurement practices of all health and human
 35-3    services agencies and encourage those agencies to use efficient
 35-4    procurement practices such as the use of a group purchasing
 35-5    program, combining maintenance contracts into one contract, and
 35-6    obtaining prompt payment discounts.  In implementing this duty, the
 35-7    Health and Human Services Commission may review the procurement and
 35-8    rate-setting procedures of each health and human services agency to
 35-9    ensure that amounts paid to contractors are consistent and
35-10    represent the best value for the state.  The Health and Human
35-11    Services Commission may disapprove a procurement and rate-setting
35-12    procedure of a health and human services agency.  A health and
35-13    human services agency may not use a procurement or rate-setting
35-14    procedure that has been disapproved by the commission.  The Health
35-15    and Human Services Commission may transfer the procurement
35-16    functions of a health and human services agency to another
35-17    appropriate state agency if it determines that transferring those
35-18    functions would be advantageous to the state.  Other state agencies
35-19    and institutions with experience in acquiring goods and services
35-20    using the procedures allowed under Subsections (c) and (d) shall on
35-21    request assist the Health and Human Services Commission to perform
35-22    its functions under this section.
35-23          (m)  Subject to Section 531.0055(c), the Health and Human
35-24    Services Commission shall develop and implement a statewide plan to
35-25    ensure that each entity that contracts with a health and human
 36-1    services agency and any subcontractor of the entity complies with
 36-2    the accessibility requirements of the Americans with Disabilities
 36-3    Act of 1990 (42 U.S.C. Section 12101 et seq.).
 36-4          (n) [(j)]  To the extent of any conflict, this section
 36-5    prevails over any other state law relating to the procurement of
 36-6    goods and services except a law relating to contracting with
 36-7    historically underutilized businesses or relating to the
 36-8    procurement of goods and services from persons with disabilities.
 36-9          (o)  The Health and Human Services Commission, with the
36-10    assistance of the state auditor, shall prepare an annual report
36-11    that assesses the compliance of each health and human services
36-12    agency with the requirements imposed under this section and that
36-13    identifies any material risk to the state or to the clients of the
36-14    health and human services agency that results from the agency's
36-15    procurement and contracting practices. The commission shall file
36-16    the report with the governor, the lieutenant governor, and the
36-17    speaker of the house of representatives not later than December 15
36-18    of each year.
36-19          (p) [(k)]  In this section, "health and human services
36-20    agency" has the meaning assigned by Section 531.001.
36-21          SECTION 3.11.  Section 2167.004, Government Code, is amended
36-22    to read as follows:
36-23          Sec. 2167.004.  LEASING SPACE FOR HEALTH AND HUMAN SERVICES
36-24    AGENCIES.  (a)  Notwithstanding any other provision of this chapter
36-25    or of Subchapter C, Chapter 2165, the commission may not lease
 37-1    office space to serve the needs of any health and human services
 37-2    agency unless the Health and Human Services Commission has approved
 37-3    the office space for the agency.
 37-4          (b)  The commission may not enter into an emergency lease to
 37-5    serve the needs of a health and human services agency  unless the
 37-6    emergency lease is entered into under criteria adopted by the
 37-7    Health and Human Services Commission in consultation with the
 37-8    commission.  The criteria must:
 37-9                (1)  encourage advance planning by the health and human
37-10    services agency to facilitate regional management of health and
37-11    human services agencies by the Health and Human Services Commission
37-12    under Section 531.0246; and
37-13                (2)  ensure that the circumstances that require an
37-14    emergency lease are outside of the control of the agency and that
37-15    the agency could not reasonably have been expected to foresee the
37-16    circumstances.
37-17          (c)  In this section, "health and human services agency" has
37-18    the meaning assigned by Section 531.001 [means the:]
37-19                [(1)  Interagency Council on Early Childhood
37-20    Intervention Services;]
37-21                [(2)  Texas Department on Aging;]
37-22                [(3)  Texas Commission on Alcohol and Drug Abuse;]
37-23                [(4)  Texas Commission for the Blind;]
37-24                [(5)  Texas Commission for the Deaf and Hearing
37-25    Impaired;]
 38-1                [(6)  Texas Department of Health;]
 38-2                [(7)  Texas Department of Human Services;]
 38-3                [(8)  Texas Juvenile Probation Commission;]
 38-4                [(9)  Texas Department of Mental Health and Mental
 38-5    Retardation;]
 38-6                [(10)  Texas Rehabilitation Commission; or]
 38-7                [(11)  Department of Protective and Regulatory
 38-8    Services].
 38-9          SECTION 3.12.  (a)  Not later than December 15, 2000, the
38-10    Health and Human Services Commission shall submit a report relating
38-11    to the delivery of mental health and substance abuse services in
38-12    this state to the governor, the lieutenant governor, the speaker of
38-13    the house of representatives, and the presiding officer of the
38-14    Health and Human Services Legislative Oversight Committee. The
38-15    report must include:
38-16                (1)  a comprehensive inventory of all mental health and
38-17    substance abuse services provided by state agencies;
38-18                (2)  the populations to which the services are
38-19    provided;
38-20                (3)  the amount of state resources expended on the
38-21    services;
38-22                (4)  a comprehensive description of interagency
38-23    coordination and collaborative initiatives related to those
38-24    services; and
38-25                (5)  an assessment of whether any of those services are
 39-1    redundant of other services provided by state agencies.
 39-2          (b)  A health and human services agency or any other state
 39-3    agency that provides mental health or substance abuse services
 39-4    shall  provide the Health and Human Services Commission any
 39-5    information, other than confidential information, requested by the
 39-6    commission relating to mental health and substance abuse services
 39-7    provided by the agency.
 39-8          (c)  This section expires December 31, 2000.
 39-9          SECTION 3.13.  (a)  Not later than December 15, 2000, the
39-10    Health and Human Services Commission shall submit a report relating
39-11    to regulatory programs conducted by the Texas Department of Health
39-12    to the governor, the lieutenant governor, the speaker of the house
39-13    of representatives, and the presiding officer of the Health and
39-14    Human Services Legislative Oversight Committee. In preparing the
39-15    report, the commission must consider whether:
39-16                (1)  health-related regulatory programs conducted by
39-17    the Texas Department of Health should be consolidated or
39-18    restructured;
39-19                (2)  a new agency, similar to the Texas Department of
39-20    Licensing and Regulation, should be established to administer all
39-21    or some of the health-related regulatory programs;
39-22                (3)  a new agency should be established to administer
39-23    regulatory programs related to health-related professions;
39-24                (4)  a new agency should be established to regulate
39-25    health-related facilities;
 40-1                (5)  the duties of the Health Professions Council
 40-2    should be expanded to encompass all or some of the health-related
 40-3    regulatory programs; or
 40-4                (6)  health-related regulatory programs administered by
 40-5    the Texas Department of Health should continue to be administered
 40-6    by the department without consolidation or restructuring.
 40-7          (b)  This section expires December 31, 2000.
 40-8          SECTION 3.14.  (a)  The Health and Human Services Commission
 40-9    shall:
40-10                (1)  assess the benefits of consolidating support
40-11    services provided to health and human services agencies in agency
40-12    headquarters and in regional offices; and
40-13                (2)  develop a proposed plan and schedule for
40-14    colocating offices and consolidating support services in accordance
40-15    with Section 531.0246, Government Code, as added by this Act.
40-16          (b)  Not later than September 1, 2000, the Health and Human
40-17    Services Commission shall report the results of the assessment,
40-18    together with the proposed plan and schedule, to the governor, the
40-19    lieutenant governor, the speaker of the house of representatives,
40-20    and the presiding officer of the Health and Human Services
40-21    Legislative Oversight Committee.
40-22          SECTION 3.15.  The Health and Human Services Commission, the
40-23    General Services Commission, and the Records Management Interagency
40-24    Coordinating Council shall  ensure that information about health
40-25    and human services presented in the format required by Section
 41-1    531.0312, Government Code, as amended by this Act, is available for
 41-2    publication in residential telephone directories to be distributed
 41-3    to the public after December 1, 2000. Not later than December 31,
 41-4    2000, the Health and Human Services Commission, the General
 41-5    Services Commission, and the Records Management Interagency
 41-6    Coordinating Council shall each report to the governor, the
 41-7    lieutenant governor, the speaker of the house of representatives,
 41-8    and the presiding officer of the Health and Human Services
 41-9    Legislative Oversight Committee with respect to the implementation
41-10    of this section.
41-11              ARTICLE 4. INVESTIGATIONS OF ABUSE AND NEGLECT
41-12          SECTION 4.01.  Subchapter B, Chapter 531, Government Code, is
41-13    amended by adding Section 531.053 to read as follows:
41-14          Sec. 531.053.  INVESTIGATIONS OF ABUSE AND NEGLECT; UNIFORM
41-15    USE OF TERMS.  (a)  Each health and human services agency that may
41-16    be required to conduct an investigation of abuse, neglect, or
41-17    exploitation of a client of the agency at a facility operated by or
41-18    under contract with the agency shall use uniform definitions of
41-19    "abuse," "neglect," and "exploitation" adopted by the commission
41-20    under this section.
41-21          (b)  The definitions of "abuse," "neglect," and
41-22    "exploitation" adopted under this section must be at least as
41-23    stringent as any definition that would otherwise be applicable to
41-24    the investigation under law.
41-25          SECTION 4.02.  Section 261.401, Family Code, is amended to
 42-1    read as follows:
 42-2          Sec. 261.401.  AGENCY INVESTIGATION.  (a)  A state agency
 42-3    that operates, licenses, certifies, or registers a facility in
 42-4    which children are located shall make a prompt, thorough
 42-5    investigation of a report that a child has been or may be abused,
 42-6    [or] neglected, or exploited in the facility.  The primary purpose
 42-7    of the investigation  shall be the protection of the child.
 42-8          (b)  For purposes of an investigation conducted under this
 42-9    section, "abuse," "neglect,"  and "exploitation" have the meanings
42-10    assigned by rules of the Health and Human Services Commission under
42-11    Section 531.053, Government Code.  The meanings assigned to "abuse"
42-12    and "neglect" by Section 261.001 do not apply to an investigation
42-13    under this section.
42-14          (c)  A state agency shall adopt rules relating to the
42-15    investigation and resolution of reports received as provided by
42-16    this subchapter.  The Health and Human Services Commission shall
42-17    review and approve the rules to ensure that all agencies implement
42-18    appropriate standards for the conduct of investigations and that
42-19    uniformity exists among agencies in the investigation and
42-20    resolution of reports.
42-21          SECTION 4.03.  Section 48.081, Human Resources Code, is
42-22    amended to read as follows:
42-23          Sec. 48.081.  INVESTIGATION OF REPORTS IN MHMR FACILITIES AND
42-24    IN COMMUNITY CENTERS.  (a)  The department shall receive and
42-25    investigate reports of the abuse, neglect, or exploitation of an
 43-1    individual:
 43-2                (1)  receiving services in a facility operated by the
 43-3    Texas Department of Mental Health and Mental Retardation; or
 43-4                (2)  being provided services through a program under
 43-5    contract with a facility operated by the Texas Department of Mental
 43-6    Health and Mental Retardation.
 43-7          (b)  The department and the Texas Department of Mental Health
 43-8    and Mental Retardation shall develop joint rules to facilitate
 43-9    investigations in state mental health and mental retardation
43-10    facilities.
43-11          (c)  The department shall receive and investigate a report of
43-12    the alleged abuse, neglect, or exploitation of an individual
43-13    receiving services in a community center or from a program
43-14    providing services under contract with a community center.
43-15          (d)  The department shall forward to a state mental health or
43-16    mental retardation facility, a community center, or a program
43-17    providing mental health or mental retardation services under
43-18    contract with such a facility or community center:
43-19                (1)  a copy of any report the department receives
43-20    relating to alleged or suspected abuse, neglect, or exploitation of
43-21    an individual receiving services from that facility, community
43-22    center, or program; and
43-23                (2)  a copy of the department's investigation findings
43-24    and report.
43-25          (e)  The department and the Texas Department of Mental Health
 44-1    and Mental Retardation by joint rules shall establish procedures
 44-2    for resolving disagreements between the department and the Texas
 44-3    Department of Mental Health and Mental Retardation concerning the
 44-4    department's investigation findings.  A confirmed investigation
 44-5    finding by the department may not be changed by a superintendent of
 44-6    a state mental health or mental retardation facility or a director
 44-7    of a community center.
 44-8          (f)  After completion of the appeals process, the department
 44-9    shall refer a complaint relating to an investigation conducted by
44-10    the department under this section to the department's ombudsman
44-11    office for appropriate action.
44-12          (g)  If the department's investigation under this section
44-13    reveals that an elderly or disabled person has been abused by
44-14    another person in a manner that constitutes a criminal offense
44-15    under any law, including Section 22.04, Penal Code, a copy of the
44-16    investigation shall be submitted to the appropriate law enforcement
44-17    agency.
44-18          (h)  The department by rule may assign priorities to an
44-19    investigation conducted by the department under this section.  The
44-20    primary criterion used by the department in assigning a priority
44-21    must be the risk that a delay in the investigation will impede the
44-22    collection of evidence.
44-23          (i)  The department and the Texas Department of Mental Health
44-24    and Mental Retardation shall jointly develop and implement a single
44-25    system to track reports and investigations under this section.  To
 45-1    facilitate implementation of the system, the department and the
 45-2    Texas Department of Mental Health and Mental Retardation shall use
 45-3    appropriate methods of measuring the number and outcome of reports
 45-4    and investigations under this section.
 45-5          (j)  For purposes of an investigation conducted under this
 45-6    section, "abuse," "neglect,"  and "exploitation" have the meanings
 45-7    assigned by rules of the Health and Human Services Commission under
 45-8    Section 531.053, Government Code.
 45-9          (k)  In this section, "community center" has the meaning
45-10    assigned by Section 531.002, Health and Safety Code.
45-11          SECTION 4.04.  (a)  To implement Section 531.053, Government
45-12    Code, as added by this Act, the Health and Human Services
45-13    Commission shall identify each health and human services agency
45-14    that may be required to conduct an investigation described by that
45-15    section and shall convene a working group of representatives of
45-16    those agencies.  The working group shall develop proposed
45-17    definitions of "abuse," "neglect," and "exploitation" for purposes
45-18    of those investigations not later than June 1, 2000.
45-19          (b)  The Health and Human Services Commission shall by rule
45-20    adopt uniform definitions of "abuse," "neglect," and "exploitation"
45-21    not later than August 1, 2000.
45-22          (c)  A health and human services agency is not required to
45-23    use the uniform definitions adopted under this section before
45-24    September 1, 2000.
45-25                  ARTICLE 5. GUARDIANSHIP ADVISORY BOARD
 46-1          SECTION 5.01.  Sections 531.122(b), (c), and (d), Government
 46-2    Code, are amended to read as follows:
 46-3          (b)  The advisory board is composed of one representative
 46-4    from each of the health and human services regions, as defined by
 46-5    the commission, three public representatives, and one
 46-6    representative of the Department of Protective and Regulatory
 46-7    Services.  The representatives of the health and human services
 46-8    regions are appointed by a majority vote of the judges of the
 46-9    statutory probate courts in each region.  If a health and human
46-10    services region does not contain a statutory probate court, the
46-11    representative shall be appointed by a majority vote of the judges
46-12    of the statutory probate courts in the state.  The public
46-13    representatives and representative of the Department of Protective
46-14    and Regulatory Services are appointed by the Health and Human
46-15    Services Commissioner and the Board of the Department of Protective
46-16    and Regulatory Services, respectively.
46-17          (c)  To be eligible for an appointment under this section, an
46-18    individual must have demonstrated experience working with:
46-19                (1)  a guardianship program;
46-20                (2)  an organization that advocates on behalf of or in
46-21    the interest of elderly individuals or individuals with mental
46-22    illness or mental retardation; or
46-23                (3)  incapacitated individuals.
46-24          (d)  A member of the advisory board serves at the pleasure of
46-25    a majority of the judges of the statutory probate courts that
 47-1    appointed the member or of the Health and Human Services
 47-2    Commissioner and the Board of the Department of Protective and
 47-3    Regulatory Services, as appropriate.
 47-4          SECTION 5.02.  Subchapter D, Chapter 531, Government Code, as
 47-5    added by Chapter 1033, Acts of the 75th Legislature, Regular
 47-6    Session, 1997, is amended by adding Section 531.1235 to read as
 47-7    follows:
 47-8          Sec. 531.1235.  ADVISORY BOARD; ADDITIONAL DUTIES; STATEWIDE
 47-9    GUARDIANSHIP SYSTEM.  (a)  In addition to performing the duties
47-10    described by Section 531.122, the advisory board shall:
47-11                (1)  advise the commission and the Department of
47-12    Protective and Regulatory Services with respect to a statewide
47-13    guardianship program and develop a proposal for a statewide
47-14    guardianship program; and
47-15                (2)  review and comment on the guardianship policies of
47-16    all health and human services agencies and recommend changes to the
47-17    policies the advisory board considers necessary or advisable.
47-18          (b)  The advisory board shall prepare an annual report with
47-19    respect to the recommendations of the advisory board under
47-20    Subsection (a).  The advisory board shall file the report with the
47-21    commission, the Department of Protective and Regulatory Services,
47-22    the governor, the lieutenant governor, and the speaker of the house
47-23    of representatives not later than December 15 of each year.
47-24          SECTION 5.03.  Section 531.124, Government Code, is  amended
47-25    by adding Subsection (c) to read as follows:
 48-1          (c)  The advisory board shall annually review and comment on
 48-2    the minimum standards adopted under Subsection (a)(1) and the plan
 48-3    implemented under Subsection (a)(2) and shall include its
 48-4    conclusions in the report submitted under Section 531.1235.
 48-5          SECTION 5.04.  Not later than October 1, 1999, the Board of
 48-6    Protective and Regulatory Services shall appoint the additional
 48-7    members of the Guardianship Advisory Board, as required by Section
 48-8    531.122, Government Code, as amended by this Act.
 48-9         ARTICLE 6.  EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES
48-10          SECTION 6.01.  Subchapter B, Chapter 481, Government Code, is
48-11    amended by adding Section 481.025 to read as follows:
48-12          Sec. 481.025.  EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY
48-13    PROGRAM.  The department is the agency of this state responsible
48-14    for administering the Empowerment Zone and Enterprise Community
48-15    grant program in this state. The department shall cooperate with
48-16    appropriate federal and local agencies as necessary to administer
48-17    the grant program.
48-18          SECTION 6.02.  Effective January 1, 2000, administration of
48-19    the Empowerment Zone and Enterprise Community grant program in this
48-20    state is transferred from the Health and Human Services Commission
48-21    to the Texas Department of Economic Development. The commissioner
48-22    of health and human services and the governing board of the Texas
48-23    Department of Economic Development shall enter into a memorandum of
48-24    understanding as necessary to implement the transfer required by
48-25    this section.
 49-1                ARTICLE 7. HEALTH CARE INFORMATION COUNCIL
 49-2          SECTION 7.01.  Section 531.001(4), Government Code, is
 49-3    amended to read as follows:
 49-4                (4)  "Health and human services agencies" includes the:
 49-5                      (A)  Interagency Council on Early Childhood
 49-6    Intervention [Services];
 49-7                      (B)  Texas Department on Aging;
 49-8                      (C)  Texas Commission on Alcohol and Drug Abuse;
 49-9                      (D)  Texas Commission for the Blind;
49-10                      (E)  Texas Commission for the Deaf and Hard of
49-11    Hearing;
49-12                      (F)  Texas Department of Health;
49-13                      (G)  Texas Department of Human Services;
49-14                      (H)  Texas Juvenile Probation Commission;
49-15                      (I)  Texas Department of Mental Health and Mental
49-16    Retardation;
49-17                      (J)  Texas Rehabilitation Commission; [and]
49-18                      (K)  Department of Protective and Regulatory
49-19    Services; and
49-20                      (L)  Texas Health Care Information Council.
49-21          SECTION 7.02.  Section 108.002(4), Health and Safety Code, is
49-22    amended to read as follows:
49-23                (4)  "Data" means information collected under Section
49-24    108.0065 or 108.009 in the form initially received.
49-25          SECTION 7.03.  Chapter 108, Health and Safety Code,  is
 50-1    amended by adding Section 108.0065 to read as follows:
 50-2          Sec. 108.0065.  POWERS AND DUTIES OF COUNCIL RELATING TO
 50-3    MEDICAID MANAGED CARE.  (a)  In this section:
 50-4                (1)  "Commission" means the Health and Human Services
 50-5    Commission.
 50-6                (2)  "Medicaid managed care organization" means a
 50-7    managed care organization, as defined by Section 533.001,
 50-8    Government Code, that is contracting with the commission to
 50-9    implement the Medicaid managed care program under Chapter 533,
50-10    Government Code.
50-11          (b)  The council, in consultation with the commission, shall
50-12    collect data under this chapter with respect to Medicaid managed
50-13    care organizations. The council may coordinate the collection of
50-14    the data with the collection of data for health benefit plan
50-15    providers, but may collect data in addition to the data otherwise
50-16    required of health benefit plan providers.
50-17          (c)  Each Medicaid managed care organization shall provide
50-18    the data required by the council in the form required by the
50-19    council.
50-20          (d)  Dissemination of data collected under this section is
50-21    subject to Sections 108.010, 108.011, 108.012, 108.013, 108.014,
50-22    and 108.0141.
50-23          (e)  The council, in consultation with the commission, shall
50-24    analyze the data collected in accordance with this section and
50-25    shall use the data to:
 51-1                (1)  evaluate the effectiveness and efficiency of the
 51-2    Medicaid managed care system;
 51-3                (2)  determine the extent to which Medicaid managed
 51-4    care does or does not serve the needs of Medicaid recipients in
 51-5    this state; and
 51-6                (3)  assess the cost-effectiveness of the Medicaid
 51-7    managed care system in comparison to the fee-for-service system,
 51-8    considering  any improvement in the quality of care provided.
 51-9          (f)  Not later than December 15 of each even-numbered year,
51-10    the council shall report to the commission, the governor, the
51-11    lieutenant governor, and the speaker of the house of
51-12    representatives with respect to:
51-13                (1)  the council's conclusions under Subsection (e) and
51-14    any improvement made in the delivery of services under the Medicaid
51-15    managed care system since the date of the council's last report
51-16    under this section;
51-17                (2)  recommendations for implementation by the state
51-18    agencies operating the Medicaid managed care system for improvement
51-19    to the Medicaid managed care system; and
51-20                (3)  any recommendations for legislation.
51-21          (g)  The report made under Subsection (f) may be consolidated
51-22    with any report made under Section 108.006(a)(9).
51-23          SECTION 7.04.  Not later than December 15, 1999, the Texas
51-24    Health Care Information Council, in consultation with the Health
51-25    and Human Services Commission and the presiding officer of the
 52-1    Health and Human Services Legislative Oversight Committee, shall
 52-2    develop a plan for implementing the council's duties under Section
 52-3    108.0065, Health and Safety Code, as added by this Act.
 52-4                     ARTICLE 8. LEGISLATIVE OVERSIGHT
 52-5          SECTION 8.01.  Chapter 531, Government Code, is amended by
 52-6    adding Subchapter E to read as follows:
 52-7      SUBCHAPTER E.  HEALTH AND HUMAN SERVICES LEGISLATIVE OVERSIGHT
 52-8          Sec. 531.171.  DEFINITION.  In this subchapter, "committee"
 52-9    means the Health and Human Services Legislative Oversight
52-10    Committee.
52-11          Sec. 531.172.  COMPOSITION OF COMMITTEE;  PRESIDING OFFICER.
52-12    (a)  The committee is composed of:
52-13                (1)  five persons appointed by the lieutenant governor
52-14    as follows:
52-15                      (A)  four persons who are members of the senate
52-16    or the lieutenant governor; and
52-17                      (B)  one member of the public; and
52-18                (2)  five persons appointed by the speaker of the house
52-19    of representatives as follows:
52-20                      (A)  four members of the house of
52-21    representatives, one of whom may be the speaker of the house of
52-22    representatives; and
52-23                      (B)  one member of the public.
52-24          (b)  A member of the committee serves at the pleasure of the
52-25    appointing official.
 53-1          (c)  The lieutenant governor and the speaker of the house of
 53-2    representatives shall designate, from the committee members, the
 53-3    presiding officer of the committee on an alternating basis.  The
 53-4    presiding officer shall serve in that capacity for a two-year
 53-5    period expiring February 1 of each odd-numbered year.
 53-6          Sec. 531.173.  COMMITTEE POWERS AND DUTIES.  (a)  The
 53-7    committee shall:
 53-8                (1)  meet at the call of the presiding officer;
 53-9                (2)  monitor the commission's implementation of Section
53-10    531.0055  and the commission's other duties in consolidating and
53-11    integrating health and human services to ensure implementation
53-12    consistent with law;
53-13                (3)  recommend, as needed, adjustments to the
53-14    implementation of Section 531.0055 and the commission's other
53-15    duties in consolidating and integrating health and human services;
53-16                (4)  collect, analyze, and report information relating
53-17    to the health and human services system in this state, including
53-18    information relating to statewide health and human services needs;
53-19    and
53-20                (5)  hold meetings and take public testimony in
53-21    different regions of the state to ensure input from the public and
53-22    appropriate advocacy groups in the implementation of Section
53-23    531.0055 and the commission's other duties in consolidating and
53-24    integrating health and human services.
53-25          (b)  At the committee's request, the commission shall
 54-1    provide:
 54-2                (1)  staff and resources to support the committee,
 54-3    including sufficient resources to analyze the committee's
 54-4    recommendations with respect to the health and human services
 54-5    system and to propose additional changes consistent with the
 54-6    objectives and directives of the committee;
 54-7                (2)  information as requested by the committee; and
 54-8                (3)  an annual plan that addresses the topics
 54-9    identified by the committee.
54-10          (c)  At the committee's request, a health and human services
54-11    agency shall:
54-12                (1)  provide information to the committee relating to
54-13    the health and human services system; and
54-14                (2)  report on agency progress in implementing
54-15    statutory directives identified by the committee and the directives
54-16    of the commission.
54-17          (d)  The committee may also use staff of standing committees
54-18    in the senate and the house of representatives with appropriate
54-19    jurisdiction, the Department of Information Resources, the state
54-20    auditor, the Texas Legislative Council, and the Legislative Budget
54-21    Board in carrying out its responsibilities.
54-22          Sec. 531.174.  REPORT.  (a)  The committee shall report to
54-23    the governor, the lieutenant governor, and the speaker of the house
54-24    of representatives not later than December 31 of each year.
54-25          (b)  The report must include:
 55-1                (1)  identification of significant problems in the
 55-2    implementation of Section 531.0055 and the commission's other
 55-3    duties in consolidating and integrating health and human services,
 55-4    with recommendations for action by the commissioner;
 55-5                (2)  the status of the implementation of Section
 55-6    531.0055 and the commission's other duties in consolidating and
 55-7    integrating health and human services; and
 55-8                (3)  recommendations for legislative action, including
 55-9    legislation to further consolidate health and human services agency
55-10    functions as appropriate.
55-11          Sec. 531.175.  DURATION OF COMMITTEE.  The committee is
55-12    abolished September 1, 2001.
55-13              ARTICLE 9.  REPEALER; EFFECTIVE DATE; EMERGENCY
55-14          SECTION 9.01.  The following laws are repealed:
55-15                (1)  Section 441.053(k), Government Code; and
55-16                (2)  Section 531.0272, Government Code.
55-17          SECTION 9.02.  This Act takes effect September 1, 1999.
55-18          SECTION 9.03.  The importance of this legislation and the
55-19    crowded condition of the calendars in both houses create an
55-20    emergency and an imperative public necessity that the
55-21    constitutional rule requiring bills to be read on three several
55-22    days in each house be suspended, and this rule is hereby suspended.