1-1     By:  Gray, Bosse, McCall (Senate Sponsor - Brown)     H.B. No. 2641
 1-2           (In the Senate - Received from the House April 21, 1999;
 1-3     April 22, 1999, read first time and referred to Committee on Human
 1-4     Services; May 12, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 3, Nays 1;
 1-6     May 12, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2641                By:  Gallegos
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the continuation and functions of the Health and Human
1-11     Services Commission.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13          ARTICLE 1.  GENERAL POWERS AND DUTIES OF HEALTH AND HUMAN
1-14                             SERVICES COMMISSION
1-15           SECTION 1.01.  Section 531.004, Government Code, is amended
1-16     to read as follows:
1-17           Sec. 531.004.  SUNSET PROVISION.  The Health and Human
1-18     Services Commission is subject to Chapter 325 (Texas Sunset Act).
1-19     Unless continued in existence as provided by that chapter, the
1-20     commission is abolished and this chapter expires September 1, 2007
1-21     [1999].
1-22           SECTION 1.02.  Section 531.009, Government Code, is amended
1-23     to read as follows:
1-24           Sec. 531.009.  PERSONNEL.  (a)  The commissioner shall employ
1-25     a medical director to provide medical expertise to the commissioner
1-26     and the commission and may employ other personnel necessary to
1-27     administer the commission's duties.
1-28           (b)  The commissioner or the commissioner's designated
1-29     representative shall develop an intra-agency career ladder program,
1-30     one part of which must require the intra-agency posting of all
1-31     non-entry-level positions concurrently with any public posting.
1-32           (c)  The commissioner or the commissioner's designated
1-33     representative shall develop a system of annual performance
1-34     evaluations based on measurable job tasks.  All merit pay for
1-35     commission employees must be based on the system established under
1-36     this subsection.
1-37           (d)  The commissioner shall provide to commission employees
1-38     as often as is necessary information regarding their qualifications
1-39     under this chapter and their responsibilities under applicable laws
1-40     relating to standards of conduct for state employees.
1-41           (e)  The commissioner or the commissioner's designated
1-42     representative shall prepare and maintain a written policy
1-43     statement that implements [to ensure implementation of] a program
1-44     of equal employment opportunity to ensure that [under which] all
1-45     personnel transactions are made without regard to race, color,
1-46     disability, sex, religion, age, or national origin.
1-47           (f)  The policy statement described by Subsection (e) must
1-48     include:
1-49                 (1)  personnel policies, including policies relating to
1-50     recruitment, evaluation, selection, [appointment,] training, and
1-51     promotion of personnel, that show the intent of the commission to
1-52     avoid the unlawful employment practices described by Chapter 21,
1-53     Labor Code; and
1-54                 (2)  an analysis of the extent to which the composition
1-55     of the commission's personnel is in accordance with state and
1-56     federal law and a description of reasonable methods to achieve
1-57     compliance with state and federal law [a comprehensive analysis of
1-58     the commission workforce that meets federal and state guidelines;]
1-59                 [(3)  procedures by which a determination can be made
1-60     of significant underuse in the commission workforce of all persons
1-61     for whom federal or state guidelines encourage a more equitable
1-62     balance; and]
1-63                 [(4)  reasonable methods to appropriately address areas
1-64     of significant underuse in the commission workforce of all persons
 2-1     for whom federal or state guidelines encourage a more equitable
 2-2     balance].
 2-3           (g)  The policy statement described by Subsection (e) must:
 2-4                 (1)  be updated annually;
 2-5                 (2)  be reviewed by the state Commission on Human
 2-6     Rights for compliance with Subsection (f)(1); and
 2-7                 (3)  be filed with the governor's office.
 2-8           SECTION 1.03.  Section 531.011, Government Code, is amended
 2-9     by adding Subsection (g) to read as follows:
2-10           (g)  In addition to the information file maintained under
2-11     Subsection (e), the commission shall maintain an information file
2-12     on a complaint received by the commission relating to any matter or
2-13     agency under the jurisdiction of the commission.
2-14           SECTION 1.04.  Subchapter A, Chapter 531, Government Code, is
2-15     amended by adding Section 531.014 to read as follows:
2-16           Sec. 531.014.  CONSOLIDATION OF REPORTS.  The commission may
2-17     consolidate any annual or biennial reports required to be made
2-18     under this chapter or another law if:
2-19                 (1)  the consolidated report is submitted not later
2-20     than the earliest deadline for the submission of any component of
2-21     the consolidated report; and
2-22                 (2)  each person required to receive a component of the
2-23     consolidated report receives the consolidated report and the
2-24     consolidated report identifies the component of the report the
2-25     person was required to receive.
2-26      ARTICLE 2.  RELATIONSHIP WITH HEALTH AND HUMAN SERVICES AGENCIES
2-27           SECTION 2.01.  Subchapter A, Chapter 531, Government Code, is
2-28     amended by adding Sections 531.0055, 531.0056, and 531.0057 to read
2-29     as follows:
2-30           Sec. 531.0055.  COMMISSIONER: RESPONSIBILITY RELATING TO
2-31     CERTAIN FUNCTIONS OF HEALTH AND HUMAN SERVICES AGENCIES.  (a)  In
2-32     this section and in Section 531.0056:
2-33                 (1)  "Agency director" means the director, executive
2-34     director, or commissioner of a health and human services agency.
2-35                 (2)  "Policymaking body" means the board or commission
2-36     with policymaking authority over a health and human services
2-37     agency.
2-38           (b)  The commission shall:
2-39                 (1)  supervise the administration and operation of the
2-40     Medicaid program, including the administration and operation of the
2-41     Medicaid managed care system in accordance with Section 531.021;
2-42                 (2)  supervise information systems planning and
2-43     management for health and human services agencies under Section
2-44     531.0273;
2-45                 (3)  monitor and ensure the effective use of all
2-46     federal funds received by a health and human services agency in
2-47     accordance with Section 531.028 and the General Appropriations Act;
2-48     and
2-49                 (4)  implement Texas Integrated Enrollment Services as
2-50     required by Subchapter F.
2-51           (c)  After implementation of the commission's duties under
2-52     Subsection (b), the commission shall implement the powers and
2-53     duties given to the commission under Sections 531.0246, 531.0247,
2-54     2155.144, as added by Chapter 1045, Acts of the 75th Legislature,
2-55     Regular Session, 1997, and 2167.004.
2-56           (d)  After implementation of the commission's duties under
2-57     Subsections (b) and (c), the commission shall implement the powers
2-58     and duties given to the commission under Section 531.0248.  Nothing
2-59     in the priorities established by this section is intended to limit
2-60     the authority of the commission to work simultaneously to achieve
2-61     the multiple tasks assigned to the commission in this section, when
2-62     such an approach is beneficial in the judgment of the commission.
2-63     The commission shall plan and implement an efficient and effective
2-64     system of administrative support services for health and human
2-65     services agencies.  The term "administrative support services"
2-66     includes, but is not limited to, strategic planning, audit, legal,
2-67     human resources, and accounting services.
2-68           (e)  Notwithstanding any other law, the commissioner, as
2-69     necessary to perform the functions described by Subsections (b),
 3-1     (c), and (d) in implementation of the policies established by each
 3-2     agency's policymaking body, shall:
 3-3                 (1)  manage and direct the operations of each health
 3-4     and human services agency; and
 3-5                 (2)  supervise and direct the activities of each agency
 3-6     director.
 3-7           (f)  The operational authority of the commissioner for
 3-8     purposes of Subsection (e) at each health and human services agency
 3-9     includes authority over the:
3-10                 (1)  management of the daily operations of the agency,
3-11     including the organization and management of the agency and agency
3-12     operating procedures;
3-13                 (2)  allocation of resources within the agency,
3-14     including use of federal funds received by the agency;
3-15                 (3)  personnel and employment policies;
3-16                 (4)  contracting, purchasing, and related policies,
3-17     subject to this chapter and other laws relating to contracting and
3-18     purchasing by a state agency;
3-19                 (5)  information resources systems used by the agency;
3-20                 (6)  location of agency facilities; and
3-21                 (7)  coordination of agency activities with activities
3-22     of other state agencies, including other health and human services
3-23     agencies.
3-24           (g)  Notwithstanding any other law, the operational authority
3-25     of the commissioner for purposes of Subsection (e) at each health
3-26     and human services agency includes the authority to adopt or
3-27     approve, subject to applicable limitations, any rate of payment or
3-28     similar provision required by law to be adopted or approved by the
3-29     agency.
3-30           (h)  For each health and human services agency, the
3-31     commissioner shall implement a program to evaluate and supervise
3-32     the daily operations of the agency.  The program must include
3-33     measurable performance objectives for each agency director and
3-34     adequate reporting requirements to permit the commissioner to
3-35     perform the duties assigned to the commissioner under this section.
3-36           (i)  To facilitate the operations of a health and human
3-37     services agency in accordance with this section, the commissioner
3-38     may delegate a specific power or duty given under Subsection (f) or
3-39     (g) to an agency director.
3-40           (j)  The commissioner may adopt rules to implement the
3-41     commissioner's authority under this section.
3-42           (k)  The commissioner and each agency director shall enter
3-43     into a memorandum of understanding that:
3-44                 (1)  clearly defines the responsibilities of the agency
3-45     director and the commissioner;
3-46                 (2)  establishes the program of evaluation and
3-47     supervision of daily operations required by Subsection (h); and
3-48                 (3)  describes each delegation of a power or duty made
3-49     under Subsection (i).
3-50           (l)  Notwithstanding any other provision of this section, a
3-51     policymaking body has the authority provided by law to adopt
3-52     policies and rules governing the delivery of services to persons
3-53     who are served by the agency and the rights and duties of persons
3-54     who are served or regulated by the agency.  The commissioner and
3-55     each policymaking body shall enter into a memorandum of
3-56     understanding that clearly defines:
3-57                 (1)  the policymaking authority of the policymaking
3-58     body; and
3-59                 (2)  the operational authority of the commissioner.
3-60           Sec. 531.0056.  EMPLOYMENT OF AGENCY DIRECTOR.  (a)  This
3-61     section applies only to an agency director employed by the
3-62     commissioner.
3-63           (b)  An agency director employed by the commissioner may be
3-64     employed only with the concurrence of the agency's policymaking
3-65     body and the approval of the governor.
3-66           (c)  Notwithstanding any other provision of law, the
3-67     commissioner shall obtain the services of an agency director
3-68     through a personal services contract and may establish terms and
3-69     conditions of employment in the contract.  Contracts entered into
 4-1     under this subsection expire on January 1 of each even-numbered
 4-2     year.
 4-3           (d)  An agency director employed by the commissioner serves
 4-4     at the pleasure of the commissioner but may be discharged only with
 4-5     the concurrence of the agency's policymaking body and only in
 4-6     accordance with the contract.
 4-7           (e)  On expiration of the contract, the commissioner shall
 4-8     employ or reemploy an agency director in accordance with Subsection
 4-9     (b).  The commissioner shall employ the agency director on a timely
4-10     basis in a manner that ensures that the services of the agency
4-11     director are expediently obtained.
4-12           Sec. 531.0057.  AUTHORITY OVER RULEMAKING AT HEALTH AND HUMAN
4-13     SERVICES AGENCY.  (a)  Notwithstanding any other law, a health and
4-14     human services agency must notify the commissioner before proposing
4-15     a rule.  A rule adopted in violation of this section is void.
4-16           (b)  The commissioner may waive the requirement of this
4-17     section as necessary to permit emergency rulemaking in accordance
4-18     with Section 2001.034.
4-19           SECTION 2.02.  Section 21.004, Human Resources Code, is
4-20     amended to read as follows:
4-21           Sec. 21.004.  COMMISSIONER.  (a)  The Commissioner of Human
4-22     Services is the executive and administrative officer of the
4-23     department.  The commissioner exercises all rights, powers, and
4-24     duties imposed or conferred by law on the department unless the
4-25     right, power, or duty is specifically delegated by the commissioner
4-26     of health and human services [board] to the department's agents or
4-27     employees.
4-28           (b)  The commissioner is employed [appointed] by the
4-29     commissioner of health and human services in accordance with
4-30     Section 531.0056, Government Code [board with the approval of the
4-31     governor and serves at the pleasure of the board].
4-32           (c)  To be eligible for employment [appointment] as
4-33     commissioner, a person must be at least 35 years old, have had
4-34     experience as an executive or administrator, and not have served as
4-35     an elected state officer as defined by Chapter 572, Government
4-36     Code, during the six-month period preceding the date of the
4-37     employment [appointment].
4-38           SECTION 2.03.  Chapter 22, Human Resources Code, is amended
4-39     by adding Section 22.0001 to read as follows:
4-40           Sec. 22.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
4-41     AND HUMAN SERVICES.  The commissioner of health and human services
4-42     has the powers and duties relating to the board and commissioner as
4-43     provided by Section 531.0055, Government Code.  To the extent a
4-44     power or duty given to the board or commissioner by this title or
4-45     another law conflicts with Section 531.0055, Government Code,
4-46     Section 531.0055 controls.
4-47           SECTION 2.04.  Section 40.027, Human Resources Code, is
4-48     amended to read as follows:
4-49           Sec. 40.027.  EXECUTIVE DIRECTOR.  (a)  The commissioner of
4-50     health and human services [board] shall employ the executive
4-51     director in accordance with Section 531.0056, Government Code [with
4-52     the approval of the governor.  The executive director serves at the
4-53     pleasure of the board].
4-54           (b)  The executive director is the executive head of the
4-55     department.  The executive director shall perform the duties
4-56     assigned by the commissioner of health and human services [board]
4-57     and state law.
4-58           SECTION 2.05.  Subchapter C, Chapter 40, Human Resources
4-59     Code, is amended by adding Section 40.0505 to read as follows:
4-60           Sec. 40.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
4-61     AND HUMAN SERVICES.  The commissioner of health and human services
4-62     has the powers and duties relating to the board and executive
4-63     director as provided by Section 531.0055, Government Code.  To the
4-64     extent a power or duty given to the board or executive director by
4-65     this chapter or another law conflicts with Section 531.0055,
4-66     Government Code, Section 531.0055 controls.
4-67           SECTION 2.06.  Chapter 73, Human Resources Code, is amended
4-68     by adding Section 73.0045 to read as follows:
4-69           Sec. 73.0045.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 5-1     AND HUMAN SERVICES.  The commissioner of health and human services
 5-2     has the powers and duties relating to the board and the executive
 5-3     director of the board as provided by Section 531.0055, Government
 5-4     Code.  To the extent a power or duty given to the board or
 5-5     executive director by this chapter or another law conflicts with
 5-6     Section 531.0055, Government Code, Section 531.0055 controls.
 5-7           SECTION 2.07.  Sections 73.0052(b) and (c), Human Resources
 5-8     Code, are amended to read as follows:
 5-9           (b)  The commissioner of health and human services [board]
5-10     shall employ an executive director in accordance with Section
5-11     531.0056, Government Code.  The[, and the] executive director shall
5-12     establish necessary administrative units[,] and hire other
5-13     necessary employees.
5-14           (c)  Utilizing established standards, the commissioner of
5-15     health and human services [board] shall evaluate the performance of
5-16     the executive director annually.
5-17           SECTION 2.08.  Chapter 81, Human Resources Code, is amended
5-18     by adding Section 81.0055 to read as follows:
5-19           Sec. 81.0055.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
5-20     AND HUMAN SERVICES.  The commissioner of health and human services
5-21     has the powers and duties relating to the commission and the
5-22     executive director of the commission as provided by Section
5-23     531.0055, Government Code.  To the extent a power or duty given to
5-24     the commission or executive director by this chapter or another law
5-25     conflicts with Section 531.0055, Government Code, Section 531.0055
5-26     controls.
5-27           SECTION 2.09.  Sections 81.008(a) and (b), Human Resources
5-28     Code, are amended to read as follows:
5-29           (a)  The commissioner of health and human services
5-30     [commission] shall employ [appoint] an executive director in
5-31     accordance with Section 531.0056, Government Code [with the
5-32     approval of the governor].
5-33           (b)  In selecting an executive director, the commissioner of
5-34     health and human services [commission] shall give preference to a
5-35     deaf or hard of hearing person.
5-36           SECTION 2.10.  Sections 91.012(a), (b), and (d), Human
5-37     Resources Code, are amended to read as follows:
5-38           (a)  The commissioner of health and human services
5-39     [commission] shall employ [annually appoint] an executive director
5-40     in accordance with Section 531.0056, Government Code [with the
5-41     approval of the governor].
5-42           (b)  The commissioner of health and human services
5-43     [commission] shall select the executive director, according to
5-44     established personnel standards, on the basis of education,
5-45     training, experience, and demonstrated ability.
5-46           (d)  The [On commission approval, the] executive director:
5-47                 (1)  shall appoint personnel necessary to efficiently
5-48     accomplish commission purposes;
5-49                 (2)  may delegate to an employee a power of the
5-50     executive director except the power to adopt rules or appoint
5-51     personnel;
5-52                 (3)  shall establish appropriate administrative units
5-53     within commission programs;
5-54                 (4)  may accept and use gifts and grants to the
5-55     commission to carry out the purposes of this title, if the
5-56     commission determines that the conditions of the gift or grant are
5-57     consistent with this title; and
5-58                 (5)  may take other actions that the executive director
5-59     considers necessary or appropriate to carry out commission
5-60     purposes.
5-61           SECTION 2.11.  Subchapter C, Chapter 91, Human Resources
5-62     Code, is amended by adding Section 91.0205 to read as follows:
5-63           Sec. 91.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
5-64     AND HUMAN SERVICES.  The commissioner of health and human services
5-65     has the powers and duties relating to the commission and executive
5-66     director as provided by Section 531.0055, Government Code.  To the
5-67     extent a power or duty given to the commission or executive
5-68     director by this chapter or another law conflicts with Section
5-69     531.0055, Government Code, Section 531.0055 controls.
 6-1           SECTION 2.12.  Section 101.004(a), Human Resources Code, is
 6-2     amended to read as follows:
 6-3           (a)  The commissioner of health and human services [board]
 6-4     shall employ [appoint] an executive director of aging in accordance
 6-5     with Section 531.0056, Government Code [with the approval of the
 6-6     governor].  The executive director shall discharge all executive
 6-7     and administrative functions of the department.  The executive
 6-8     director must be a person with executive ability and experience in
 6-9     the area of aging.  [The executive director serves at the pleasure
6-10     of the board.]
6-11           SECTION 2.13.  Subchapter B, Chapter 101, Human Resources
6-12     Code, is amended by adding Section 101.0205 to read as follows:
6-13           Sec. 101.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
6-14     AND HUMAN SERVICES.  The commissioner of health and human services
6-15     has the powers and duties relating to the board and executive
6-16     director as provided by Section 531.0055, Government Code.  To the
6-17     extent a power or duty given to the board or executive director by
6-18     this chapter or another law conflicts with Section 531.0055,
6-19     Government Code, Section 531.0055 controls.
6-20           SECTION 2.14.  Section 111.017, Human Resources Code, is
6-21     amended to read as follows:
6-22           Sec. 111.017.  COMMISSIONER.  (a)  This chapter is
6-23     administered by the commissioner under operational policies
6-24     established by the commissioner of health and human services
6-25     [board].  The commissioner is employed [appointed] by the
6-26     commissioner of health and human services in accordance with
6-27     Section 531.0056, Government Code [board, with the approval of the
6-28     governor], on the basis of education, training, experience, and
6-29     demonstrated ability.
6-30           (b)  The commissioner serves as [at the pleasure of the board
6-31     and is] secretary to the board, as well as chief administrative
6-32     officer of the agency.
6-33           SECTION 2.15.  Subchapter C, Chapter 111, Human Resources
6-34     Code, is amended by adding Section 111.0505 to read as follows:
6-35           Sec. 111.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
6-36     AND HUMAN SERVICES.  The commissioner of health and human services
6-37     has the powers and duties relating to the commission and
6-38     commissioner as provided by Section 531.0055, Government Code.  To
6-39     the extent a power or duty given to the commission or commissioner
6-40     by this chapter or another law conflicts with Section 531.0055,
6-41     Government Code, Section 531.0055 controls.
6-42           SECTION 2.16.  Subchapter C, Chapter 141, Human Resources
6-43     Code, is amended by adding Section 141.0405 to read as follows:
6-44           Sec. 141.0405.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
6-45     AND HUMAN SERVICES.  The commissioner of health and human services
6-46     has the powers and duties relating to the commission and director
6-47     as provided by Section 531.0055, Government Code.  To the extent a
6-48     power or duty given to the commission or director by this chapter
6-49     or another law conflicts with Section 531.0055, Government Code,
6-50     Section 531.0055 controls.
6-51           SECTION 2.17.  Sections 11.012(a), (b), (c), and (d), Health
6-52     and Safety Code, are amended to read as follows:
6-53           (a)  The commissioner of health and human services [board]
6-54     shall employ the commissioner in accordance with Section 531.0056,
6-55     Government Code [with the approval of the governor.  The
6-56     commissioner serves at the will of the board].
6-57           (b)  Except as provided in Subsection (c), the commissioner
6-58     must:
6-59                 (1)  have at least five years of experience in the
6-60     administration of public health systems; and
6-61                 (2)  be a person licensed to practice medicine in this
6-62     state.
6-63           (c)  The commissioner of health and human services [board]
6-64     may, based on the qualifications and experience in administering
6-65     public health systems [and on two thirds vote of the board], employ
6-66     a person other than a physician as the commissioner.
6-67           (d)  If the commissioner of health and human services [board]
6-68     employs a person as commissioner who is not a physician, then the
6-69     board shall designate a person licensed to practice medicine in
 7-1     this state as chief medical executive.
 7-2           SECTION 2.18.  Subchapter A, Chapter 12, Health and Safety
 7-3     Code, is amended by adding Section 12.0001 to read as follows:
 7-4           Sec. 12.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 7-5     AND HUMAN SERVICES.  The commissioner of health and human services
 7-6     has the powers and duties relating to the board and commissioner as
 7-7     provided by Section 531.0055, Government Code.  To the extent a
 7-8     power or duty given to the board or commissioner by this title or
 7-9     another law conflicts with Section 531.0055, Government Code,
7-10     Section 531.0055 controls.
7-11           SECTION 2.19.  Section 461.011(a), Health and Safety Code, is
7-12     amended to read as follows:
7-13           (a)  The commissioner of health and human services
7-14     [commission] shall employ an executive director in accordance with
7-15     Section 531.0056, Government Code [with the approval of the
7-16     governor].  The executive director shall hire other necessary
7-17     employees.
7-18           SECTION 2.20.  Chapter 461, Health and Safety Code, is
7-19     amended by adding Section 461.0115 to read as follows:
7-20           Sec. 461.0115.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
7-21     AND HUMAN SERVICES.  The commissioner of health and human services
7-22     has the powers and duties relating to the commission and executive
7-23     director as provided by Section 531.0055, Government Code.  To the
7-24     extent a power or duty given to the commission or executive
7-25     director by this chapter or another law conflicts with Section
7-26     531.0055, Government Code, Section 531.0055 controls.
7-27           SECTION 2.21.  Sections 532.011(a), (b), (d), and (f), Health
7-28     and Safety Code, are amended to read as follows:
7-29           (a)  The commissioner of health and human services [board]
7-30     shall employ [appoint] a commissioner in accordance with Section
7-31     531.0056, Government Code [with the approval of the governor].
7-32           (b)  To be qualified for employment [appointment] as
7-33     commissioner, a person must have:
7-34                 (1)  professional training and experience in the
7-35     administration or management of comprehensive health care or human
7-36     service operations; and
7-37                 (2)  proven administrative and management ability,
7-38     preferably in the health care area.
7-39           (d)  The [Subject to board rules and basic and general
7-40     policies, the] commissioner:
7-41                 (1)  has the administrative and decisional powers
7-42     granted under this subtitle; and
7-43                 (2)  shall administer the department and this subtitle
7-44     and ensure [assure] the effective administration of the department
7-45     and its programs and services.
7-46           (f)  The [With the board's approval, the] commissioner shall:
7-47                 (1)  establish an organizational structure within the
7-48     department that will promote the effective administration of this
7-49     subtitle; and
7-50                 (2)  establish the duties and functions of the
7-51     department's staff.
7-52           SECTION 2.22.  Subchapter A, Chapter 533, Health and Safety
7-53     Code, is amended by adding Section 533.0001 to read as follows:
7-54           Sec. 533.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
7-55     AND HUMAN SERVICES.  The commissioner of health and human services
7-56     has the powers and duties relating to the board and commissioner as
7-57     provided by Section 531.0055, Government Code.  To the extent a
7-58     power or duty given to the board or commissioner by this title or
7-59     another law conflicts with Section 531.0055, Government Code,
7-60     Section 531.0055 controls.
7-61           SECTION 2.23.  (a)  In this section, "agency director" and
7-62     "policymaking body" have the meanings assigned by Section 531.0055,
7-63     Government Code, as added by this Act.
7-64           (b)  An agency director serving on the effective date of this
7-65     Act continues to serve in that position until the earlier of the
7-66     date that:
7-67                 (1)  the director is removed from the position under
7-68     Subsection (c) of this section;
7-69                 (2)  the term provided by statute or contract for that
 8-1     person's appointment or employment expires; or
 8-2                 (3)  the director is removed from the position as
 8-3     provided by law.
 8-4           (c)  An agency director serving immediately before January 1,
 8-5     2000, is removed from the position on that date.
 8-6           (d)  The commissioner shall fill a position that becomes
 8-7     vacant as described by Subsections (b)(1)-(3) of this section, with
 8-8     the concurrence of the appropriate policymaking body and the
 8-9     approval of the governor, as required by  Section 531.0056,
8-10     Government Code, as added by this Act.
8-11           (e)  With the concurrence of the appropriate policymaking
8-12     body and the approval of the governor, the commissioner of health
8-13     and human services is authorized to employ the agency director of
8-14     an agency added to those agencies defined as health and human
8-15     services agencies by Section 531.001, Government Code, by any other
8-16     Act of the 76th Legislature.  The agency director is employed and
8-17     serves in accordance with Section 531.0056, Government Code, as
8-18     added by this Act.
8-19                  ARTICLE 3.  SPECIFIC FUNCTIONS OF HEALTH
8-20                        AND HUMAN SERVICES COMMISSION
8-21           SECTION 3.01.  Section 531.021(b), Government Code, is
8-22     amended to read as follows:
8-23           (b)  The commission shall:
8-24                 (1)  plan and direct the Medicaid program in each
8-25     agency that operates a portion of the Medicaid program, including
8-26     the management of the Medicaid managed care system and the
8-27     development, procurement, management, and monitoring of contracts
8-28     necessary to implement the Medicaid managed care system;
8-29                 (2)  adopt [is responsible for adopting] reasonable
8-30     rules and standards governing the determination of fees, charges,
8-31     and rates for medical assistance payments under Chapter 32, Human
8-32     Resources Code, in consultation[.  In adopting these rules and
8-33     standards, the commission shall consult] with the agencies that
8-34     operate the Medicaid program; and
8-35                 (3)  establish requirements for and define the scope of
8-36     the ongoing evaluation of the Medicaid managed care system
8-37     conducted in conjunction with the Texas Health Care Information
8-38     Council under Section 108.0065, Health and Safety Code.
8-39           SECTION 3.02.  Subchapter B, Chapter 531, Government Code, is
8-40     amended by adding Sections 531.0246, 531.0247, 531.0248, and
8-41     531.0249 to read as follows:
8-42           Sec. 531.0246.  REGIONAL MANAGEMENT OF HEALTH AND HUMAN
8-43     SERVICES AGENCIES.  Subject to Section 531.0055(c), the commission
8-44     may require a health and human services agency, under the direction
8-45     of the commission, to:
8-46                 (1)  locate all or a portion of the agency's employees
8-47     and programs in the same building as another health and human
8-48     services agency or at a location near or adjacent to the location
8-49     of another health and human services agency;
8-50                 (2)  ensure that the agency's location is accessible to
8-51     disabled employees and agency clients; and
8-52                 (3)  consolidate agency support services, including
8-53     clerical and administrative support services and information
8-54     resources support services, with support services provided to or by
8-55     another health and human services agency.
8-56           Sec. 531.0247.  ANNUAL BUSINESS PLAN.  Subject to Section
8-57     531.0055(c), the commission shall develop and implement an annual
8-58     business services plan for each health and human services region
8-59     that establishes performance objectives for all health and human
8-60     services agencies providing services in the region and measures
8-61     agency effectiveness and efficiency in achieving those objectives.
8-62           Sec. 531.0248.  COMMUNITY-BASED SUPPORT SYSTEMS.
8-63     (a)  Subject to Section 531.0055(d), the commission shall assist
8-64     communities in this state in developing comprehensive,
8-65     community-based support systems for health and human services.  At
8-66     the request of a community, the commission shall provide resources
8-67     and assistance to the community to enable the community to:
8-68                 (1)  identify and overcome institutional barriers to
8-69     developing more comprehensive community support systems, including
 9-1     barriers that result from the policies and procedures of state
 9-2     health and human services agencies; and
 9-3                 (2)  develop a system of blended funds to allow the
 9-4     community to customize services to fit individual community needs.
 9-5           (b)  At the request of the commission, a health and human
 9-6     services agency shall provide resources and assistance to a
 9-7     community as necessary to perform the commission's duties under
 9-8     Subsection (a).
 9-9           (c)  A health and human services agency that receives or
9-10     develops a proposal for a community initiative shall submit the
9-11     initiative to the commission for review and approval.  The
9-12     commission shall review the initiative to ensure that the
9-13     initiative is consistent with other similar programs offered in
9-14     communities and does not duplicate other services provided in the
9-15     community.
9-16           (d)  In implementing this section, the commission shall
9-17     consider models used in other service delivery systems, including
9-18     the mental health and mental retardation service delivery system.
9-19           Sec. 531.0249.  ADVISORY COMMITTEE FOR LOCAL GOVERNMENTAL
9-20     ENTITIES.  (a)  The commission shall appoint an advisory committee
9-21     composed of representatives of governmental entities identified
9-22     under Section 531.022(e).
9-23           (b)  The advisory committee:
9-24                 (1)  shall advise the commission with respect to
9-25     establishing flexible and responsive strategies for blending
9-26     federal, state, and other available funding sources to meet local
9-27     program needs and service priorities, in implementation of Sections
9-28     531.022, 531.024, and 531.0248; and
9-29                 (2)  may assist the commission in performing its other
9-30     functions under Sections 531.022, 531.024, 531.0248, and
9-31     531.028(b)(6).
9-32           (c)  A member of the advisory committee may not receive
9-33     compensation, but is entitled to reimbursement of the travel
9-34     expenses incurred by the member while conducting the business of
9-35     the committee, as provided by the General Appropriations Act.
9-36           (d)  The advisory committee is not subject to Chapter 2110.
9-37           SECTION 3.03.  Sections 531.0271 and 531.0273, Government
9-38     Code, are amended to read as follows:
9-39           Sec. 531.0271.  HEALTH AND HUMAN SERVICES AGENCIES OPERATING
9-40     BUDGETS.  The commission may, within the limits established by and
9-41     subject to [(a)  In addition to the provisions of] the General
9-42     Appropriations Act, transfer amounts appropriated to health and
9-43     human services agencies among the agencies to [the commission shall
9-44     review and comment on]:
9-45                 (1)  enhance the receipt of federal money under the
9-46     federal funds management system established under Section 531.028;
9-47                 (2)  achieve efficiencies in the administrative support
9-48     functions of the agencies; and
9-49                 (3)  perform the functions assigned to the commissioner
9-50     under Section 531.0055 [the annual operating budget of each health
9-51     and human services agency; and]
9-52                 [(2)  the transfer of funds between budget strategies
9-53     made by each health and human services agency before that transfer.]
9-54           [(b)  The commission shall issue a quarterly report regarding
9-55     the projected expenditures by budget strategy of each health and
9-56     human services agency compared to each agency's operating budget].
9-57           Sec. 531.0273.  INFORMATION RESOURCES PLANNING AND
9-58     MANAGEMENT; ADVISORY COMMITTEE [AUTOMATED SYSTEMS].  (a)  The
9-59     commission is responsible for strategic planning for information
9-60     resources at each health and human services agency and shall direct
9-61     the management of information resources at each health and human
9-62     services agency.  The commission shall:
9-63                 (1)  develop a coordinated strategic plan for
9-64     information resources management that:
9-65                       (A)  covers a five-year period;
9-66                       (B)  defines objectives for information resources
9-67     management at each health and human services agency;
9-68                       (C)  prioritizes information resources projects
9-69     and implementation of new technology for all health and human
 10-1    services agencies;
 10-2                      (D)  integrates planning and development of each
 10-3    information resources system used by a health and human services
 10-4    agency into a coordinated information resources management planning
 10-5    and development system established by the commission;
 10-6                      (E)  establishes standards for information
 10-7    resources system security and that promotes the ability of
 10-8    information resources systems to operate with each other; and
 10-9                      (F)  achieves economies of scale and related
10-10    benefits in purchasing for health and human services information
10-11    resources systems;
10-12                (2)  establish information resources management
10-13    policies, procedures, and technical standards and ensure compliance
10-14    with those policies, procedures, and standards; and
10-15                (3)  review and approve the information resources
10-16    management and biennial operating plan of each health and human
10-17    services agency.
10-18          (b)  Not later than December 15 of each even-numbered year,
10-19    the commission shall file the coordinated information resources
10-20    strategic plan with the governor, the lieutenant governor, and the
10-21    speaker of the house of representatives.
10-22          (c)  A health and human services agency may not submit its
10-23    plans to the Department of Information Resources under Subchapter
10-24    E, Chapter 2054, until those plans are approved by the commission.
10-25          (d)  The commission shall appoint an advisory committee
10-26    composed of:
10-27                (1)  information resources managers for state agencies
10-28    and for private employers; and
10-29                (2)  the directors, executive directors, and
10-30    commissioners of health and human services agencies.
10-31          (e)  The advisory committee appointed under Subsection (d)
10-32    shall advise the commission with respect to the implementation of
10-33    the commission's duties under Subsection (a)(1) and:
10-34                (1)  shall advise the commission about:
10-35                      (A)  overall goals and objectives for information
10-36    resources management for all health and human services agencies;
10-37                      (B)  coordination of agency information resources
10-38    management plans;
10-39                      (C)  development of short-term and long-term
10-40    strategies for:
10-41                            (i)  implementing information resources
10-42    management policies, procedures, and technical standards; and
10-43                            (ii)  ensuring compatibility of information
10-44    resources systems across health and human services agencies as
10-45    technology changes;
10-46                      (D)  information resources training and skill
10-47    development for health and human services agency employees and
10-48    policies to facilitate recruitment and retention of trained
10-49    employees;
10-50                      (E)  standards for determining:
10-51                            (i)  the circumstances in which obtaining
10-52    information resources services under contract is appropriate;
10-53                            (ii)  the information resources services
10-54    functions that must be performed by health and human services
10-55    agency information resources services employees; and
10-56                            (iii)  the information resources services
10-57    skills that must be maintained by health and human services agency
10-58    information resources services employees;
10-59                      (F)  optimization of the use of information
10-60    resources technology that is in place at health and human services
10-61    agencies; and
10-62                      (G)  existing and potential future information
10-63    resources technologies and practices and the usefulness of those
10-64    technologies and practices to health and human services agencies;
10-65    and
10-66                (2)  shall review and make recommendations to the
10-67    commission relating to the consolidation and improved efficiency of
10-68    information resources management functions, including:
10-69                      (A)  cooperative leasing of information resources
 11-1    systems equipment;
 11-2                      (B)  consolidation of data centers;
 11-3                      (C)  improved network operations;
 11-4                      (D)  technical support functions, including help
 11-5    desk services, call centers, and data warehouses;
 11-6                      (E)  administrative applications;
 11-7                      (F)  purchases of standard software;
 11-8                      (G)  joint training efforts;
 11-9                      (H)  recruitment and retention of trained agency
11-10    employees;
11-11                      (I)  video conferencing; and
11-12                      (J)  other related opportunities for improved
11-13    efficiency.
11-14          (f)  A member of the advisory committee may not receive
11-15    compensation, but is entitled to reimbursement of the travel
11-16    expenses incurred by the member while conducting the business of
11-17    the committee, as provided by the General Appropriations Act.
11-18          (g)  The advisory committee is not subject to Chapter 2110.
11-19          SECTION 3.04.  Section 531.028, Government Code, is amended
11-20    to read as follows:
11-21          Sec. 531.028.  MONITORING AND EFFECTIVE MANAGEMENT [AND
11-22    DISTRIBUTION] OF FUNDS.  (a)  The commission, within the limits
11-23    established by and subject to the General Appropriations Act, shall
11-24    be responsible for planning for, and managing the use of, all
11-25    federal funds in a manner that maximizes the federal funding
11-26    available to the state while promoting the delivery of services.
11-27          (b)  The commissioner shall establish a federal money
11-28    management system to coordinate and monitor the use of federal
11-29    money that is received by health and human services agencies to
11-30    ensure that the money is spent in the most efficient manner and
11-31    shall:
11-32                (1)  establish priorities for use of federal money by
11-33    all health and human services agencies, in coordination with the
11-34    coordinated strategic plan established under Section 531.022 and
11-35    the budget prepared under Section 531.026;
11-36                (2)  coordinate and monitor the use of federal money
11-37    for health and human services to ensure that the money is spent in
11-38    the most cost-effective manner throughout the health and human
11-39    services system;
11-40                (3)  review and approve all federal funding plans for
11-41    health and human services in this state;
11-42                (4)  estimate available federal money, including earned
11-43    federal money, and monitor unspent money;
11-44                (5)  ensure that the state meets federal requirements
11-45    relating to receipt of federal money for health and human services,
11-46    including requirements relating to state matching money and
11-47    maintenance of effort;
11-48                (6)  transfer appropriated amounts as described by
11-49    Section 531.0271; and
11-50                (7)  ensure that each governmental entity identified
11-51    under Section 531.022(e) has access to complete and timely
11-52    information about all sources of federal money for health and human
11-53    services programs and that technical assistance is available to
11-54    governmental entities seeking grants of federal money to provide
11-55    health and human services.
11-56          (c)  The commission shall prepare an annual report with
11-57    respect to the results of the implementation of this section.  The
11-58    report must identify strategies to maximize the receipt and use of
11-59    federal funds and to improve federal funds management.  The
11-60    commission shall file the report with the governor, the lieutenant
11-61    governor, and the speaker of the house of representatives not later
11-62    than December 15 of each year [request budget execution for the
11-63    transfer of funds from one agency to another;]
11-64                [(2)  establish a federal health and human services
11-65    funds management system and maximize the availability of those
11-66    funds; and]
11-67                [(3)  review and comment on health and human services
11-68    agency formulas for the distribution of funds to ensure that the
11-69    formulas, to the extent permitted by federal law, consider such
 12-1    need factors as client base, population, and economic and
 12-2    geographic factors within the regions of the state].
 12-3          SECTION 3.05.  Section 531.0312, Government Code, is amended
 12-4    to read as follows:
 12-5          Sec. 531.0312.  TEXAS INFORMATION AND REFERRAL NETWORK.
 12-6    (a)  The Texas Information and Referral Network at the commission
 12-7    is the program responsible for the development, coordination, and
 12-8    implementation of a statewide information and referral network that
 12-9    integrates existing community-based structures with state and local
12-10    agencies.  The network must include information relating to
12-11    transportation services provided to clients of state and local
12-12    agencies.
12-13          (b)  The commission shall cooperate with the Records
12-14    Management Interagency Coordinating Council and the General
12-15    Services Commission to establish a single method of categorizing
12-16    information about health and human services to be used by the
12-17    Records Management Interagency Coordinating Council and the Texas
12-18    Information and Referral Network.  The network, in cooperation with
12-19    the council and the General Services Commission, shall ensure that:
12-20                (1)  information relating to health and human services
12-21    is included in each residential telephone directory published by a
12-22    for-profit publisher and distributed to the public at minimal or no
12-23    cost; and
12-24                (2)  the single method of categorizing information
12-25    about health and human services is used in a residential telephone
12-26    directory described by Subdivision (1).
12-27          (c)  A health and human services agency shall provide the
12-28    Texas Information and Referral Network and the Records Management
12-29    Interagency Coordinating Council with information about the health
12-30    and human services provided by the agency for inclusion in the
12-31    statewide information and referral network, residential telephone
12-32    directories described by Subsection (b), and any other materials
12-33    produced under the direction of the network or the council.  The
12-34    agency shall provide the information in the format required by the
12-35    Texas Information and Referral Network or the Records Management
12-36    Interagency Coordinating Council and shall update the information
12-37    at least quarterly or as required by the network or the council.
12-38          SECTION 3.06.  Section 531.034, Government Code, is amended
12-39    by amending Subsection (b) and adding Subsection (d) to read as
12-40    follows:
12-41          (b)  The commission shall review agency rules:
12-42                (1)  for compliance with:
12-43                      (A) [(1)]  the coordinated strategic plan;
12-44                      (B) [(2)]  existing statutory authority;
12-45                      (C) [(3)]  rules of other health and human
12-46    services agencies; and
12-47                      (D) [(4)]  budgetary implications; and
12-48                (2)  to ensure that the rules do not:
12-49                      (A)  discourage marriage; or
12-50                      (B)  encourage divorce.
12-51          (d)  The commission shall adopt rules to establish criteria
12-52    for determining, as required by Subsection (b), whether an agency
12-53    rule discourages marriage or encourages divorce.
12-54          SECTION 3.07.  Section 441.053(j), Government Code,  is
12-55    redesignated as Subsection (j) of Section 441.203, Government Code,
12-56    as added by Chapter 873, Acts of the 75th Legislature, Regular
12-57    Session, 1997, and is amended to read as follows:
12-58          (j)  The council shall categorize state agency programs and
12-59    telephone numbers by subject matter as well as by agency.  The
12-60    council shall cooperate with the Texas Information and Referral
12-61    Network under Section 531.0312 to ensure that the council and the
12-62    network use a single method of defining and organizing information
12-63    about health and human services.  State agencies shall cooperate
12-64    with the council by providing the council with the information it
12-65    needs to perform this function.
12-66          SECTION 3.08.  Section 9.12, Chapter 655, Acts of the 74th
12-67    Legislature, Regular Session, 1995, as amended by Section 1,
12-68    Chapter 1116, Acts of the 75th Legislature, Regular Session, 1997,
12-69    is redesignated as Subchapter F, Chapter 531, Government Code, and
 13-1    amended to read as follows:
 13-2            SUBCHAPTER F.  TEXAS INTEGRATED ENROLLMENT SERVICES
 13-3          Sec. 531.191 [9.12].  INTEGRATED ELIGIBILITY DETERMINATION.
 13-4    (a)  The commission [In consultation and coordination with the
 13-5    Texas Integrated Enrollment Services Legislative Oversight
 13-6    Committee established under Section 531.202, Government Code, the
 13-7    Health and Human Services Commission], subject to the approval of
 13-8    the governor and the Legislative Budget Board, shall develop and
 13-9    implement a plan for the integration of services and functions
13-10    relating to eligibility determination and service delivery by
13-11    health and human services agencies, the Texas Workforce Commission,
13-12    and other agencies.  The plan must include a reengineering of
13-13    eligibility determination business processes, streamlined service
13-14    delivery, a unified and integrated process for the transition from
13-15    welfare to work, and improved access to benefits and services for
13-16    clients.  In developing and implementing the plan, the commission
13-17    [Health and Human Services Commission]:
13-18                (1)  shall give priority to the design and development
13-19    of computer hardware and software for and provide technical support
13-20    relating to the integrated eligibility determination system;
13-21                (2)  shall consult with agencies whose programs are
13-22    included in the plan, including the Texas Department of Human
13-23    Services, the Texas Department of Health, and the Texas Workforce
13-24    Commission;
13-25                (3)  may contract for appropriate professional and
13-26    technical assistance; and
13-27                (4)  may use the staff and resources of agencies whose
13-28    programs are included in the plan.
13-29          (b)  The integrated eligibility determination and service
13-30    delivery system shall be developed and implemented to achieve
13-31    increased quality of and client access to services and savings in
13-32    the cost of providing administrative and other services and staff
13-33    resulting from streamlining and eliminating duplication of
13-34    services.  The commission, subject to any spending limitation
13-35    prescribed in the General Appropriations Act, may use the resulting
13-36    savings to further develop the integrated system and to provide
13-37    other health and human services.
13-38          (c)  The commission shall examine cost-effective methods to
13-39    address:
13-40                (1)  fraud in the assistance programs; and
13-41                (2)  the error rate in eligibility determination.
13-42          (d)  On receipt by the state of any necessary federal
13-43    approval and subject to the approval of the governor and the
13-44    Legislative Budget Board, the commission may contract for
13-45    implementation of all or part of the plan required by Subsection
13-46    (a) [of this section] if the commission determines that contracting
13-47    may advance the objectives of Subsections (a) and (b) [of this
13-48    section] and meets the criteria set out in the cost-benefit
13-49    analysis described in this subsection.  Before the awarding of a
13-50    contract, the commission shall provide a detailed cost-benefit
13-51    analysis to the governor and[,] the Legislative Budget Board[, and
13-52    the Texas Integrated Enrollment Services Legislative Oversight
13-53    Committee established under Section 531.202, Government Code].  The
13-54    analysis must demonstrate the cost-effectiveness of the plan,
13-55    mechanisms for monitoring performance under the plan, and specific
13-56    improvements to the service delivery system and client access made
13-57    by the plan.  The commission shall make the analysis available to
13-58    the public.  Within 10 days after the release of a request for
13-59    bids, proposals, offers, or other applicable expressions of
13-60    interest relating to the development or implementation of the plan
13-61    required by Subsection (a) [of this section], the commission shall
13-62    hold a public hearing and receive public comment on the request.
13-63    [The commission may coordinate with a legislative committee to hold
13-64    the hearings.]
13-65          (e)  [Not later than October 1, 1996, the commission shall
13-66    develop a plan to consolidate administrative and service delivery
13-67    functions in addition to the integrated eligibility determination
13-68    and service delivery system in order to minimize duplication.  The
13-69    commission shall prepare a report of the plan for submission to the
 14-1    governor, the lieutenant governor, the speaker of the house of
 14-2    representatives, the comptroller, and the 75th Legislature when it
 14-3    convenes.]
 14-4          [(f)]  If requested by the commission [Health and Human
 14-5    Services Commission], the agencies whose programs are included in
 14-6    the plan required by Subsection (a) [of this section] shall
 14-7    cooperate with the commission to provide available staff and
 14-8    resources that will be subject to the direction of the commission.
 14-9          (f) [(g)]  The design, development, and operation of an
14-10    automated data processing system to support the plan required by
14-11    Subsection (a) [of this section] may be financed through the
14-12    issuance of bonds or other obligations under the Texas Public
14-13    Finance Authority Act (Article 601d, Vernon's Texas Civil
14-14    Statutes).
14-15          Sec. 531.192.  COORDINATION WITH LEGISLATIVE OVERSIGHT
14-16    COMMITTEE.  (a)  The commission shall develop and implement the
14-17    plan required by Section 531.191 in consultation and coordination
14-18    with the Texas Integrated Enrollment Services Legislative Oversight
14-19    Committee established by Section 531.202.
14-20          (b)  Before awarding a contract under Section 531.191(d), the
14-21    commission shall provide the detailed cost-benefit analysis
14-22    described by that subsection to the legislative oversight
14-23    committee.  The commission may coordinate with the legislative
14-24    oversight committee to hold any hearing required under Section
14-25    531.191(d).
14-26          (c)  This section expires September 1, 2002.
14-27          SECTION 3.09.  Subchapter D, Chapter 531, Government Code, as
14-28    added by Chapter 1116, Acts of the 75th Legislature, Regular
14-29    Session, 1997, is redesignated as Subchapter G, Chapter 531,
14-30    Government Code, and the subchapter heading is amended to read as
14-31    follows:
14-32       SUBCHAPTER G [D].  LEGISLATIVE OVERSIGHT FOR TEXAS INTEGRATED
14-33                            ENROLLMENT SERVICES
14-34          SECTION 3.10.  Section 531.203(a), Government Code, is
14-35    amended to read as follows:
14-36          (a)  The committee shall:
14-37                (1)  meet at the call of the presiding officer;
14-38                (2)  receive information about rules proposed or
14-39    adopted by the commission;
14-40                (3)  review specific recommendations for legislation
14-41    proposed by the commission; and
14-42                (4)  hold public hearings concerning the development
14-43    and implementation of the plan required by Subchapter F [Section
14-44    9.12(a), Chapter 655, Acts of the 74th Legislature, Regular
14-45    Session, 1995,] in at least four geographically diverse locations
14-46    in the state.
14-47          SECTION 3.11.  Section 2155.144, Government Code, as added by
14-48    Chapter 1045, Acts of the 75th Legislature, Regular Session, 1997,
14-49    is amended to read as follows:
14-50          Sec. 2155.144.  PROCUREMENTS BY HEALTH AND HUMAN SERVICES
14-51    AGENCIES.  (a)  This section applies only to the Health and Human
14-52    Services Commission and to each health and human services agency.
14-53          (b)  An agency to which this section applies is delegated the
14-54    authority to procure its goods and services, except as provided by
14-55    this section.
14-56          (c)  An agency to which this section applies shall acquire
14-57    goods or services by any procurement method approved by the Health
14-58    and Human Services Commission that provides the best value to the
14-59    agency.  The agency shall document that it considered all relevant
14-60    factors under Subsection (d) in making the acquisition.
14-61          (d)  Subject to Subsection (e), the agency may consider all
14-62    relevant factors in determining the best value, including:
14-63                (1)  any installation costs;
14-64                (2)  the delivery terms;
14-65                (3)  the quality and reliability of the vendor's goods
14-66    or services;
14-67                (4)  the extent to which the goods or services meet the
14-68    agency's needs;
14-69                (5)  indicators of probable vendor performance under
 15-1    the contract such as past vendor performance, the vendor's
 15-2    financial resources and ability to perform, the vendor's experience
 15-3    and responsibility, and the vendor's ability to provide reliable
 15-4    maintenance agreements;
 15-5                (6)  the impact on the ability of the agency to comply
 15-6    with laws and rules relating to historically underutilized
 15-7    businesses or relating to the procurement of goods and services
 15-8    from persons with disabilities;
 15-9                (7)  the total long-term cost to the agency of
15-10    acquiring the vendor's goods or services;
15-11                (8)  the cost of any employee training associated with
15-12    the acquisition;
15-13                (9)  the effect of an acquisition on agency
15-14    productivity;
15-15                (10)  the acquisition price; and
15-16                (11)  any other factor relevant to determining the best
15-17    value for the agency in the context of a particular acquisition.
15-18          (e)  If an agency to which this section applies acquires
15-19    goods or services with a value that exceeds $100,000, the agency
15-20    shall notify the state auditor and shall consult with and receive
15-21    approval from the Health and Human Services Commission before
15-22    considering factors other than price and meeting specifications.
15-23          (f)  The state auditor may audit the agency's acquisitions of
15-24    goods and services before or after a warrant is issued to pay for
15-25    an acquisition.
15-26          (g)  The agency may adopt rules and procedures for the
15-27    acquisition of goods and services under this section.
15-28          (h)  The Health and Human Services Commission shall adopt
15-29    rules and procedures for the acquisition of goods and services
15-30    under this section that apply to all health and human services
15-31    agencies, including rules adopted with the commission's assistance
15-32    that allow an agency to make purchases through a group purchasing
15-33    program except when a better value is available through another
15-34    procurement method.  The rules of the health and human services
15-35    agencies must be consistent with the rules of the Health and Human
15-36    Services Commission.
15-37          (i)  Subject to Section 531.0055(c), the Health and Human
15-38    Services Commission shall develop a single statewide risk analysis
15-39    procedure.  Each health and human services agency shall comply with
15-40    the procedure.  The procedure must provide for:
15-41                (1)  assessing the risk of fraud, abuse, or waste in
15-42    health and human services agencies contractor selection processes,
15-43    contract provisions, and payment and reimbursement rates and
15-44    methods for the different types of goods and services for which
15-45    health and human services agencies contract;
15-46                (2)  identifying contracts that require enhanced
15-47    contract monitoring; and
15-48                (3)  coordinating contract monitoring efforts among
15-49    health and human services agencies.
15-50          (j)  Subject to Section 531.0055(c), the Health and Human
15-51    Services Commission shall publish a contract management handbook
15-52    that establishes consistent contracting policies and practices to
15-53    be followed by health and human services agencies.   The handbook
15-54    may include standard contract provisions and formats for health and
15-55    human services agencies to incorporate as applicable in their
15-56    contracts.
15-57          (k)  Subject to Section 531.0055(c), the Health and Human
15-58    Services Commission, in cooperation with the comptroller, shall
15-59    establish a central contract management database that identifies
15-60    each contract made with a health and human services agency.  The
15-61    commission may use the database to monitor health and human
15-62    services agency contracts, and health and human services agencies
15-63    may use the database in contracting.  A state agency shall send to
15-64    the commission in the manner prescribed by the commission the
15-65    information the agency possesses that the commission requires for
15-66    inclusion in the database.
15-67          (l)  The Health and Human Services Commission shall
15-68    coordinate the procurement practices of all health and human
15-69    services agencies and encourage those agencies to use efficient
 16-1    procurement practices such as the use of a group purchasing
 16-2    program, combining maintenance contracts into one contract, and
 16-3    obtaining prompt payment discounts.  In implementing this duty, the
 16-4    Health and Human Services Commission may review the procurement and
 16-5    rate-setting procedures of each health and human services agency to
 16-6    ensure that amounts paid to contractors are consistent and
 16-7    represent the best value for the state.  The Health and Human
 16-8    Services Commission may disapprove a procurement and rate-setting
 16-9    procedure of a health and human services agency.  A health and
16-10    human services agency may not use a procurement or rate-setting
16-11    procedure that has been disapproved by the commission.  The Health
16-12    and Human Services Commission may transfer the procurement
16-13    functions of a health and human services agency to another
16-14    appropriate state agency if it determines that transferring those
16-15    functions would be advantageous to the state.  Other state agencies
16-16    and institutions with experience in acquiring goods and services
16-17    using the procedures allowed under Subsections (c) and (d) shall on
16-18    request assist the Health and Human Services Commission to perform
16-19    its functions under this section.
16-20          (m)  Subject to Section 531.0055(c), the Health and Human
16-21    Services Commission shall develop and implement a statewide plan to
16-22    ensure that each entity that contracts with a health and human
16-23    services agency and any subcontractor of the entity complies with
16-24    the accessibility requirements of the Americans with Disabilities
16-25    Act of 1990 (42 U.S.C. Section 12101 et seq.).
16-26          (n) [(j)]  To the extent of any conflict, this section
16-27    prevails over any other state law relating to the procurement of
16-28    goods and services except a law relating to contracting with
16-29    historically underutilized businesses or relating to the
16-30    procurement of goods and services from persons with disabilities.
16-31          (o)  The Health and Human Services Commission shall prepare
16-32    an annual report that assesses the compliance of each health and
16-33    human services agency with the requirements imposed under this
16-34    section and that identifies any material risk to the state or to
16-35    the clients of the health and human services agency that results
16-36    from the agency's procurement and contracting practices.  The
16-37    commission may request the assistance of the state auditor in
16-38    preparing the report.  The state auditor shall conduct reviews as
16-39    necessary to assess compliance under this subsection as determined
16-40    by the Legislative Audit Committee.  The commission shall file the
16-41    report with the governor, the lieutenant governor, and the speaker
16-42    of the house of representatives not later than December 15 of each
16-43    year.
16-44          (p) [(k)]  In this section, "health and human services
16-45    agency" has the meaning assigned by Section 531.001.
16-46          SECTION 3.12.  Section 2167.004, Government Code, is amended
16-47    to read as follows:
16-48          Sec. 2167.004.  LEASING SPACE FOR HEALTH AND HUMAN SERVICES
16-49    AGENCIES.  (a)  Notwithstanding any other provision of this chapter
16-50    or of Subchapter C, Chapter 2165, the commission may not lease
16-51    office space to serve the needs of any health and human services
16-52    agency unless the Health and Human Services Commission has approved
16-53    the office space for the agency.
16-54          (b)  The commission may not enter into an emergency lease to
16-55    serve the needs of a health and human services agency  unless the
16-56    emergency lease is entered into under criteria adopted by the
16-57    Health and Human Services Commission in consultation with the
16-58    commission.  The criteria must:
16-59                (1)  encourage advance planning by the health and human
16-60    services agency to facilitate regional management of health and
16-61    human services agencies by the Health and Human Services Commission
16-62    under Section 531.0246; and
16-63                (2)  ensure that the circumstances that require an
16-64    emergency lease are outside of the control of the agency and that
16-65    the agency could not reasonably have been expected to foresee the
16-66    circumstances.
16-67          (c)  In this section, "health and human services agency" has
16-68    the meaning assigned by Section 531.001 [means the:]
16-69                [(1)  Interagency Council on Early Childhood
 17-1    Intervention Services;]
 17-2                [(2)  Texas Department on Aging;]
 17-3                [(3)  Texas Commission on Alcohol and Drug Abuse;]
 17-4                [(4)  Texas Commission for the Blind;]
 17-5                [(5)  Texas Commission for the Deaf and Hearing
 17-6    Impaired;]
 17-7                [(6)  Texas Department of Health;]
 17-8                [(7)  Texas Department of Human Services;]
 17-9                [(8)  Texas Juvenile Probation Commission;]
17-10                [(9)  Texas Department of Mental Health and Mental
17-11    Retardation;]
17-12                [(10)  Texas Rehabilitation Commission; or]
17-13                [(11)  Department of Protective and Regulatory
17-14    Services].
17-15          SECTION 3.13.  Not later than January 1, 2000, the Health and
17-16    Human Services Commission shall adopt the rules required by Section
17-17    531.034(d), Government Code, as added by this article.
17-18          SECTION 3.14.  (a)  Not later than December 15, 2000, the
17-19    Health and Human Services Commission shall submit a report relating
17-20    to the delivery of mental health and substance abuse services in
17-21    this state to the governor, the lieutenant governor, and the
17-22    speaker of the house of representatives.  The report must include:
17-23                (1)  a comprehensive inventory of all mental health and
17-24    substance abuse services provided by state agencies;
17-25                (2)  the populations to which the services are
17-26    provided;
17-27                (3)  the amount of state resources expended on the
17-28    services;
17-29                (4)  a comprehensive description of interagency
17-30    coordination and collaborative initiatives related to those
17-31    services; and
17-32                (5)  an assessment of whether any of those services are
17-33    redundant of other services provided by state agencies.
17-34          (b)  A health and human services agency or any other state
17-35    agency that provides mental health or substance abuse services
17-36    shall provide the Health and Human Services Commission any
17-37    information, other than confidential information, requested by the
17-38    commission relating to mental health and substance abuse services
17-39    provided by the agency.
17-40          (c)  This section expires December 31, 2000.
17-41          SECTION 3.15.  (a)  Not later than December 15, 2000, the
17-42    Health and Human Services Commission shall submit a report relating
17-43    to regulatory programs conducted by the Texas Department of Health
17-44    to the governor, the lieutenant governor, and the speaker of the
17-45    house of representatives.  In preparing the report, the commission
17-46    must consider whether:
17-47                (1)  health-related regulatory programs conducted by
17-48    the Texas Department of Health should be consolidated or
17-49    restructured;
17-50                (2)  a new agency, similar to the Texas Department of
17-51    Licensing and Regulation, should be established to administer all
17-52    or some of the health-related regulatory programs;
17-53                (3)  a new agency should be established to administer
17-54    regulatory programs related to health-related professions;
17-55                (4)  a new agency should be established to regulate
17-56    health-related facilities;
17-57                (5)  the duties of the Health Professions Council
17-58    should be expanded to encompass all or some of the health-related
17-59    regulatory programs; or
17-60                (6)  health-related regulatory programs administered by
17-61    the Texas Department of Health should continue to be administered
17-62    by the department without consolidation or restructuring.
17-63          (b)  This section expires December 31, 2000.
17-64          SECTION 3.16.  (a)  The Health and Human Services Commission
17-65    shall:
17-66                (1)  assess the benefits of consolidating support
17-67    services provided to health and human services agencies in agency
17-68    headquarters and in regional offices; and
17-69                (2)  develop a proposed plan and schedule for
 18-1    colocating offices and consolidating support services in accordance
 18-2    with Section 531.0246, Government Code, as added by this article.
 18-3          (b)  Not later than September 1, 2000, the Health and Human
 18-4    Services Commission shall report the results of the assessment,
 18-5    together with the proposed plan and schedule, to the governor, the
 18-6    lieutenant governor, and the speaker of the house of
 18-7    representatives.
 18-8          SECTION 3.17.  The Health and Human Services Commission, the
 18-9    General Services Commission, and the Records Management Interagency
18-10    Coordinating Council shall  ensure that information about health
18-11    and human services presented in the format required by Section
18-12    531.0312, Government Code, as amended by this article, is available
18-13    for publication in residential telephone directories to be
18-14    distributed to the public after December 1, 2000.  Not later than
18-15    December 31, 2000, the Health and Human Services Commission, the
18-16    General Services Commission, and the Records Management Interagency
18-17    Coordinating Council shall each report to the governor, the
18-18    lieutenant governor, and the speaker of the house of
18-19    representatives with respect to the implementation of this section.
18-20          SECTION 3.18.  Notwithstanding Section 2155.144(o),
18-21    Government Code, as added by this article, the state auditor shall
18-22    conduct initial reviews as necessary to assess compliance under
18-23    that subsection and complete those reviews not later than September
18-24    1, 2001.
18-25          SECTION 3.19.  (a)  The Health and Human Services Commission
18-26    shall study the feasibility of a subacute care pilot project.  The
18-27    Texas Department of Human Services and the Texas Department of
18-28    Health shall cooperate with and assist the commission in this
18-29    study.  In conducting the study, the Health and Human Services
18-30    Commission shall consider:
18-31                (1)  estimates of the potential fiscal impact,
18-32    including the potential to save money;
18-33                (2)  the impact of subacute care on quality of care;
18-34                (3)  reimbursement under the state's reimbursement and
18-35    regulatory policies;
18-36                (4)  the capacity of facilities in this state to
18-37    provide subacute care; and
18-38                (5)  the impact of subacute care reimbursement on
18-39    Medicaid, including managed care initiatives.
18-40          (b)  Not later than September 1, 2000, the commission shall
18-41    submit a report on the feasibility of a subacute care pilot project
18-42    to the governor, the lieutenant governor, the speaker of the house
18-43    of representatives, and the chair of each legislative committee
18-44    with jurisdiction over long-term care.
18-45          (c)  This section expires September 1, 2001.
18-46       ARTICLE 4.  INVESTIGATIONS OF FRAUD, ABUSE, AND EXPLOITATION
18-47          SECTION 4.01.  In this article:
18-48                (1)  "Commission" means the Health and Human Services
18-49    Commission.
18-50                (2)  "Working group" means the working group convened
18-51    under Section 4.02 of this article.
18-52          SECTION 4.02.  Except as provided by Section 4.05 of this
18-53    article, the commission shall identify each health and human
18-54    services agency that may be required to conduct an investigation of
18-55    abuse, neglect, or exploitation of a client of the agency at a
18-56    facility operated by or under contract with the agency and any
18-57    agency covered under Section 261.401, Family Code, or Section
18-58    48.082, Human Resources Code, and shall convene a working group of
18-59    representatives of those agencies and advocates for the affected
18-60    clients.
18-61          SECTION 4.03.  Not later than August 1, 2000, the working
18-62    group shall develop:
18-63                (1)  proposed definitions of "abuse," "neglect," and
18-64    "exploitation";
18-65                (2)  proposed minimum standards for investigatory
18-66    techniques for investigations of abuse, neglect, or exploitation of
18-67    a client; and
18-68                (3)  proposed uniform data collection procedures,
18-69    including procedures for collection of information on deaths that
 19-1    occur in the affected facilities.
 19-2          SECTION 4.04.  (a)  The commission shall present a report on
 19-3    the results of the working group to the governor, the lieutenant
 19-4    governor, and the speaker of the house of representatives not later
 19-5    than November 1, 2000.
 19-6          (b)  The report must include any recommendations, based on
 19-7    the results of the working group, for changes in law the commission
 19-8    considers necessary.
 19-9          SECTION 4.05.  The working group may not include a
19-10    representative of the Texas Juvenile Probation Commission and may
19-11    not include recommendations relating to facilities operated by or
19-12    under contract with the Texas Juvenile Probation Commission.
19-13                  ARTICLE 5.  GUARDIANSHIP ADVISORY BOARD
19-14          SECTION 5.01.  Sections 531.122(b) and (d), Government Code,
19-15    are amended to read as follows:
19-16          (b)  The advisory board is composed of one representative
19-17    from each of the health and human services regions, as defined by
19-18    the commission, three public representatives, and one
19-19    representative of the Department of Protective and Regulatory
19-20    Services.  The representatives of the health and human services
19-21    regions are appointed by a majority vote of the judges of the
19-22    statutory probate courts in each region.  If a health and human
19-23    services region does not contain a statutory probate court, the
19-24    representative shall be appointed by a majority vote of the judges
19-25    of the statutory probate courts in the state. The public
19-26    representatives are appointed by the commissioner and the
19-27    representative of the Department of Protective and Regulatory
19-28    Services is appointed by the Board of Protective and Regulatory
19-29    Services.
19-30          (d)  A member of the advisory board serves at the pleasure of
19-31    a majority of the judges of the statutory probate courts that
19-32    appointed the member, of the commissioner, or of the Board of
19-33    Protective and Regulatory Services, as appropriate.
19-34          SECTION 5.02.  Subchapter D, Chapter 531, Government Code, as
19-35    added by Chapter 1033, Acts of the 75th Legislature, Regular
19-36    Session, 1997, is amended by adding Section 531.1235 to read as
19-37    follows:
19-38          Sec. 531.1235.  ADVISORY BOARD; ADDITIONAL DUTIES; STATEWIDE
19-39    GUARDIANSHIP SYSTEM.  (a)  In addition to performing the duties
19-40    described by Section 531.122, the advisory board shall:
19-41                (1)  advise the commission and the Department of
19-42    Protective and Regulatory Services with respect to a statewide
19-43    guardianship program and develop a proposal for a statewide
19-44    guardianship program; and
19-45                (2)  review and comment on the guardianship policies of
19-46    all health and human services agencies and recommend changes to the
19-47    policies the advisory board considers necessary or advisable.
19-48          (b)  The advisory board shall prepare an annual report with
19-49    respect to the recommendations of the advisory board under
19-50    Subsection (a).  The advisory board shall file the report with the
19-51    commission, the Department of Protective and Regulatory Services,
19-52    the governor, the lieutenant governor, and the speaker of the house
19-53    of representatives not later than December 15 of each year.
19-54          SECTION 5.03.  Section 531.124, Government Code, is amended
19-55    by adding Subsection (c) to read as follows:
19-56          (c)  The advisory board shall annually review and comment on
19-57    the minimum standards adopted under Subsection (a)(1) and the plan
19-58    implemented under Subsection (a)(2) and shall include its
19-59    conclusions in the report submitted under Section 531.1235.
19-60          SECTION 5.04.  Not later than October 1, 1999, the Board of
19-61    Protective and Regulatory Services shall appoint the additional
19-62    members of the Guardianship Advisory Board, as required by Section
19-63    531.122, Government Code, as amended by this article.
19-64               ARTICLE 6.  HEALTH AND HUMAN SERVICES OFFICE
19-65                   OF COMMUNITY TRANSPORTATION SERVICES
19-66          SECTION 6.01.  Chapter 131, Human Resources Code, is amended
19-67    to read as follows:
19-68        CHAPTER 131.  HEALTH AND HUMAN SERVICES OFFICE OF COMMUNITY
19-69               TRANSPORTATION SERVICES [AND PLANNING OFFICE]
 20-1          Sec. 131.001.  OFFICE.  The Health and Human Services
 20-2    [Transportation and Planning] Office of Community Transportation
 20-3    Services is in the Health and Human Services Commission.
 20-4          Sec. 131.002.  DEFINITIONS.  In this chapter:
 20-5                (1)  "Commissioner" means the commissioner of health
 20-6    and human services.
 20-7                (2)  "Health and human services agency" has the meaning
 20-8    assigned by Section 531.001, Government Code.
 20-9                (3)  "Office" means the Health and Human Services
20-10    Office of Community Transportation Services.
20-11          Sec. 131.003.  POWERS AND DUTIES.  (a)  The office, with
20-12    assistance from the commissioner, shall:
20-13                (1)  collect data on health and human services client
20-14    transportation needs, services, and expenditures;
20-15                (2)  create a statewide coordination plan regarding a
20-16    system of transportation for clients of health and human services
20-17    agencies that provides for coordinated, community-based services,
20-18    including the designation of local transportation coordinators;
20-19                (3)  establish a standardized system [standards] of
20-20    reporting and accounting to be used by [methods for] all health and
20-21    human services agencies providing [health and human services]
20-22    client transportation, and ensure that information reported under
20-23    that system is available through the Texas Information and Referral
20-24    Network;
20-25                (4)  maximize federal funds for client transportation
20-26    through the use of available state funds for matching purposes and
20-27    the possible use of oil overcharge money and planning funds
20-28    available through the federal department of transportation;
20-29                (5)  evaluate the effectiveness of pooling client
20-30    transportation resources for capital acquisition and the joint
20-31    purchase of liability insurance;
20-32                (6)  assist state agencies in coordinating
20-33    transportation resources;
20-34                (7)  ensure coordination between the office and the
20-35    Texas Department of Transportation with regard to the use of funds
20-36    received by the department under 49 U.S.C. Section 1612(b)(1);
20-37                (8)  examine the feasibility of consolidating all
20-38    funding for health and human services client transportation and
20-39    creating a transportation system through which clients of a state
20-40    or local agency or program could be matched with the most
20-41    cost-effective and appropriate transportation services for their
20-42    needs, including, to the extent practicable, use of private,
20-43    nonprofit entities that provide services at little or no cost
20-44    beyond reimbursement for insurance, fuel, mileage, or other
20-45    expenses that might deter the entities from otherwise providing
20-46    services;
20-47                (9)  evaluate the use of existing computer software for
20-48    use at the local level in client transportation services; and
20-49                (10)  review the feasibility of taking medical care to
20-50    those in need, including the use of mobile clinics, and review the
20-51    possibility of using federal highway funds for those transportation
20-52    needs.
20-53          (b)  The office [Health and Human Services Transportation and
20-54    Planning Office] shall coordinate with the Health and Human
20-55    Services Commission and health and human services agencies in
20-56    implementing the goals listed in Section 531.022(c), Government
20-57    Code [10(b), Article 4413(502), Revised Statutes].  The office
20-58    shall report its findings and proposals to the governor, the
20-59    Legislative Budget Board, the secretary of state, and the
20-60    commissioner [of health and human services] not later than
20-61    September 1 of each even-numbered year.
20-62          Sec. 131.004 [131.003].  OFFICE STAFF.  The commissioner [of
20-63    health and human services] shall employ staff needed to carry out
20-64    the duties of the office.
20-65          Sec. 131.005.  REPORTING AND ACCOUNTING SYSTEM.  Each health
20-66    and human services agency that provides, purchases, or otherwise
20-67    funds transportation services for clients shall:
20-68                (1)  comply with the standardized system of reporting
20-69    and accounting established by the office under Section
 21-1    131.003(a)(3);
 21-2                (2)  make any changes to agency data collection systems
 21-3    that are necessary to enable  the agency to comply with the
 21-4    standardized system; and
 21-5                (3)  not later than August 31 of each year, submit to
 21-6    the office a report relating to transportation services that
 21-7    complies with the standardized system.
 21-8          Sec. 131.006.  IMPLEMENTATION OF STATEWIDE COORDINATION PLAN.
 21-9    In order to implement the statewide coordination plan created by
21-10    the office under Section 131.003(a)(2), the office shall:
21-11                (1)  review rules, policies, contracts, grants, and
21-12    funding mechanisms relating to transportation services of each
21-13    health and human services agency that provides, purchases, or
21-14    otherwise funds transportation services for clients to determine
21-15    whether the rules, policies, contracts, grants, and funding
21-16    mechanisms are consistent with the plan;
21-17                (2)  make recommendations for revisions to rules,
21-18    policies, contracts, grants, and funding mechanisms determined
21-19    under Subdivision (1) to be inconsistent  with the plan; and
21-20                (3)  not later than September 30 of each even-numbered
21-21    year, submit a report by electronic mail and by hand delivery to
21-22    the governor, the secretary of state, the  Legislative Budget
21-23    Board, and the commissioner relating to the results of the review
21-24    conducted by the office under this section.
21-25          Sec. 131.007.  ADVISORY COMMITTEE ON COORDINATED
21-26    TRANSPORTATION.  The office may create an advisory committee
21-27    consisting of representatives of state agencies, transportation
21-28    agencies, and nonprofit consumer groups.
21-29          Sec. 131.008.  MEMORANDUM OF UNDERSTANDING.  (a)  The Health
21-30    and Human Services Commission and the Texas Department of
21-31    Transportation shall enter into a memorandum of understanding
21-32    relating to functions performed by each agency that relate to the
21-33    duties of the office.
21-34          (b)  The agencies shall include provisions in the memorandum
21-35    of understanding necessary to ensure that the agencies do not have
21-36    duplicative authority, responsibilities, or activities in the area
21-37    of transportation services for clients of health and human services
21-38    agencies.  Specifically, the memorandum of understanding must
21-39    include the following provisions:
21-40                (1)  an acknowledgement that the data collection and
21-41    analysis activities of the office and the Health and Human Services
21-42    Commission are comprehensive in scope, with the goal of developing
21-43    a statewide coordination plan for the provision of transportation
21-44    services for clients of health and human services agencies;
21-45                (2)  an acknowledgement that the data collection and
21-46    analysis activities of the Texas Department of Transportation are
21-47    focused on providing more accurate social service contracting
21-48    information to transit providers;
21-49                (3)  a requirement that the Texas Department of
21-50    Transportation participate and assist in the collection of
21-51    information about transportation service funding from local social
21-52    service providers and make any database with that information
21-53    available to the Health and Human Services Commission; and
21-54                (4)  a requirement that the Health and Human Services
21-55    Commission:
21-56                      (A)  develop standardized reporting methods for
21-57    health and human services agencies and social service providers to
21-58    use when reporting information about transportation services,
21-59    funding, contracting, and all other information needed to develop a
21-60    statewide coordination plan for transportation services; and
21-61                      (B)  make the information collected under
21-62    Paragraph (A) available to the Texas Department of Transportation.
21-63          SECTION 6.02.  Not later than January 1, 2001, the Health and
21-64    Human Services Office of Community Transportation Services and the
21-65    commissioner of health and human services shall create the
21-66    statewide  coordination plan required by Section 131.003(a)(2),
21-67    Human Resources Code, as amended by this article.
21-68         ARTICLE 7.  EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES
21-69          SECTION 7.01.  Subchapter B, Chapter 481, Government Code, is
 22-1    amended by adding Section 481.025 to read as follows:
 22-2          Sec. 481.025.  EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY
 22-3    PROGRAM.  The department is the agency of this state responsible
 22-4    for administering the Empowerment Zone and Enterprise Community
 22-5    grant program in this state.  The department shall cooperate with
 22-6    appropriate federal and local agencies as necessary to administer
 22-7    the grant program.
 22-8          SECTION 7.02.  Effective September 1, 1999, administration of
 22-9    the Empowerment Zone and Enterprise Community grant program in this
22-10    state is transferred from the Health and Human Services Commission
22-11    to the Texas Department of Economic Development.  The commissioner
22-12    of health and human services and the governing board of the Texas
22-13    Department of Economic Development shall enter into a memorandum of
22-14    understanding as necessary to implement the transfer required by
22-15    this section.
22-16                ARTICLE 8.  HEALTH CARE INFORMATION COUNCIL
22-17          SECTION 8.01.  Section 531.001(4), Government Code, is
22-18    amended to read as follows:
22-19                (4)  "Health and human services agencies" includes the:
22-20                      (A)  Interagency Council on Early Childhood
22-21    Intervention [Services];
22-22                      (B)  Texas Department on Aging;
22-23                      (C)  Texas Commission on Alcohol and Drug Abuse;
22-24                      (D)  Texas Commission for the Blind;
22-25                      (E)  Texas Commission for the Deaf and Hard of
22-26    Hearing;
22-27                      (F)  Texas Department of Health;
22-28                      (G)  Texas Department of Human Services;
22-29                      (H)  Texas Juvenile Probation Commission;
22-30                      (I)  Texas Department of Mental Health and Mental
22-31    Retardation;
22-32                      (J)  Texas Rehabilitation Commission; [and]
22-33                      (K)  Department of Protective and Regulatory
22-34    Services; and
22-35                      (L)  Texas Health Care Information Council.
22-36          SECTION 8.02.  Section 108.002(4), Health and Safety Code, is
22-37    amended to read as follows:
22-38                (4)  "Data" means information collected under Section
22-39    108.0065 or 108.009 in the form initially received.
22-40          SECTION 8.03.  Chapter 108, Health and Safety Code,  is
22-41    amended by adding Section 108.0065 to read as follows:
22-42          Sec. 108.0065.  POWERS AND DUTIES OF COUNCIL RELATING TO
22-43    MEDICAID MANAGED CARE.  (a)  In this section:
22-44                (1)  "Commission" means the Health and Human Services
22-45    Commission.
22-46                (2)  "Medicaid managed care organization" means a
22-47    managed care organization, as defined by Section 533.001,
22-48    Government Code, that is contracting with the commission to
22-49    implement the Medicaid managed care program under Chapter 533,
22-50    Government Code.
22-51          (b)  The commission may direct the council to collect data
22-52    under this chapter with respect to Medicaid managed care
22-53    organizations.  The council shall coordinate the collection of the
22-54    data with the collection of data for health benefit plan providers,
22-55    but with the approval of the commission may collect data in
22-56    addition to the data otherwise required of health benefit plan
22-57    providers.
22-58          (c)  Each Medicaid managed care organization shall provide
22-59    the data required by the council in the form required by the
22-60    council or, if the data is also being submitted to the commission
22-61    or Medicaid operating agency, in the form required by the
22-62    commission or Medicaid operating agency.
22-63          (d)  Dissemination of data collected under this section is
22-64    subject to Sections 108.010, 108.011, 108.012, 108.013, 108.014,
22-65    and 108.0141.
22-66          (e)  The commission shall analyze the data collected in
22-67    accordance with this section and shall use the data to:
22-68                (1)  evaluate the effectiveness and efficiency of the
22-69    Medicaid managed care system;
 23-1                (2)  determine the extent to which Medicaid managed
 23-2    care does or does not serve the needs of Medicaid recipients in
 23-3    this state; and
 23-4                (3)  assess the cost-effectiveness of the Medicaid
 23-5    managed care system in comparison to the fee-for-service system,
 23-6    considering any improvement in the quality of care provided.
 23-7          (f)  Not later than October 1 of each even-numbered year, the
 23-8    commission shall report to the governor, the lieutenant governor,
 23-9    and the speaker of the house of representatives with respect to:
23-10                (1)  the commission's conclusions under Subsection (e)
23-11    and any improvement made in the delivery of services under the
23-12    Medicaid managed care system since the date of the commission's
23-13    last report under this section;
23-14                (2)  recommendations for implementation by the state
23-15    agencies operating the Medicaid managed care system for improvement
23-16    to the Medicaid managed care system; and
23-17                (3)  any recommendations for legislation.
23-18          (g)  The report made under Subsection (f) may be consolidated
23-19    with any report made under Section 108.006(a)(9).
23-20          (h)  The commission, using existing funds, may contract with
23-21    an entity to comply with the requirements under Subsections (e) and
23-22    (f).
23-23           ARTICLE 9.  FINANCIAL ASSISTANCE AND SERVICE PROGRAMS
23-24          SECTION 9.01.  Subchapter A, Chapter 31, Human Resources
23-25    Code, is amended by adding Section 31.0127 to read as follows:
23-26          Sec. 31.0127.  COORDINATION OF SERVICES TO CERTAIN CLIENTS.
23-27    (a)  In order to ensure efficient delivery of appropriate programs
23-28    and services, the Health and Human Services Commission is the state
23-29    agency designated to coordinate between the department and another
23-30    state agency providing child care services, Temporary Assistance
23-31    for Needy Families work programs, and Food Stamp Employment and
23-32    Training services to an individual or family who has been referred
23-33    for programs and services by the department.
23-34          (b)  The Health and Human Services Commission shall require a
23-35    state agency that is providing programs and services subject to
23-36    coordination under Subsection (a) to comply with Chapter 531,
23-37    Government Code, with regard to:
23-38                (1)  planning for the coordinated delivery of programs
23-39    and services; and
23-40                (2)  rulemaking, expenditure of funds, data collection
23-41    and reporting, and evaluations in connection with those programs
23-42    and services.
23-43          (c)  The Health and Human Services Commission and a state
23-44    agency that is providing programs and services subject to
23-45    coordination under Subsection (a) shall jointly develop and adopt a
23-46    memorandum of understanding outlining measures to be taken to
23-47    increase the number of individuals receiving Temporary Assistance
23-48    for Needy Families cash assistance who are using the Job Training
23-49    Partnership Act program or its successor program.
23-50          (d)  Not later than January 15 of each odd-numbered year, the
23-51    Health and Human Services Commission shall provide a report to the
23-52    governor, the lieutenant governor, and the speaker of the house of
23-53    representatives that:
23-54                (1)  evaluates the efficiency and effectiveness of
23-55    Temporary Assistance for Needy Families;
23-56                (2)  evaluates the status of the coordination among
23-57    agencies and the compliance with this section;
23-58                (3)  recommends measures to increase self-sufficiency
23-59    of recipients of Temporary Assistance for Needy Families and to
23-60    improve the delivery of services to this population; and
23-61                (4)  evaluates the effectiveness of the Job Training
23-62    Partnership Act program, or its successor program, in obtaining
23-63    employment outcomes for individuals receiving Temporary Assistance
23-64    for Needy Families cash assistance.
23-65          (e)  If the change in law made by this section with regard to
23-66    any program or service conflicts with federal law or would have the
23-67    effect of invalidating an exemption granted under federal law, the
23-68    state agency is not required to comply with this section with
23-69    regard to that program or service.
 24-1          (f)  This section does not authorize the Health and Human
 24-2    Services Commission to change the allocation or disbursement of
 24-3    funds allocated to the state under the Workforce Investment Act of
 24-4    1998 (29 U.S.C. Section 2801 et seq.) in a manner that would result
 24-5    in the loss of exemption status.
 24-6          SECTION 9.02.  Not later than October 1, 1999, the Health and
 24-7    Human Services Commission and each state agency that is subject to
 24-8    Section 31.0127(c), Human Resources Code, as added by this article,
 24-9    shall develop and adopt the memorandum of understanding required by
24-10    that subsection.
24-11                    ARTICLE 10.  LEGISLATIVE OVERSIGHT
24-12          SECTION 10.01.  Chapter 531, Government Code, is amended by
24-13    adding Subchapter E to read as follows:
24-14      SUBCHAPTER E.  HEALTH AND HUMAN SERVICES LEGISLATIVE OVERSIGHT
24-15          Sec. 531.171.  COMMITTEE DUTIES.  (a)  The standing or other
24-16    committees of the house of representatives and the senate that have
24-17    jurisdiction over the Health and Human Services Commission and
24-18    other agencies relating to implementation of this chapter, as
24-19    identified by the speaker of the house of representatives and the
24-20    lieutenant governor, shall:
24-21                (1)  monitor the commission's implementation of Section
24-22    531.0055 and the commission's other duties in consolidating and
24-23    integrating health and human services to ensure implementation
24-24    consistent with law; and
24-25                (2)  recommend, as needed, adjustments to the
24-26    implementation of Section 531.0055 and the commission's other
24-27    duties in consolidating and integrating health and human services.
24-28          (b)  The commission shall provide copies of all required
24-29    reports to the committees and shall provide the committees with
24-30    other information upon request.  At the request of a committee or
24-31    the commissioner, a health and human services agency shall provide
24-32    information to the committee relating to the health and human
24-33    services system and report on agency progress in implementing
24-34    statutory directives identified by the committee and the directives
24-35    of the commission.
24-36                      ARTICLE 11.  APPLICATION OF ACT
24-37          SECTION 11.01.  If a change in law made by this Act with
24-38    regard to any program or service conflicts with federal law, the
24-39    Health and Human Services Commission may not require an agency to
24-40    comply with the change with regard to that program or service.
24-41          SECTION 11.02.  Notwithstanding any provision of this Act,
24-42    the Health and Human Services Commission, in consultation with the
24-43    appropriate policymaking body, shall ensure that:
24-44                (1)  all necessary federal waivers and approvals have
24-45    been obtained to implement the provisions of this Act;
24-46                (2)  direct client services are not decreased as a
24-47    direct result of the implementation of this Act;
24-48                (3)  any colocation of offices between health and human
24-49    services agencies complies with state and federal laws relating to
24-50    building accessibility for the disabled;
24-51                (4)  a public comment process on agency operations is
24-52    established for each agency and that at least one meeting of the
24-53    policy board provides an opportunity for public input on agency
24-54    operations;
24-55                (5)  allocations of federal funding conform to the
24-56    General Appropriations Act and other applicable law; and
24-57                (6)  each agency's priorities, in addition to the
24-58    overall priorities of the Health and Human Services Commission, are
24-59    communicated to the legislature and the governor before and during
24-60    the biennial appropriations process.
24-61             ARTICLE 12.  REPEALER; EFFECTIVE DATE; EMERGENCY
24-62          SECTION 12.01.  The following laws are repealed:
24-63                (1)  Section 441.053(k), Government Code;
24-64                (2)  Section 531.0272, Government Code; and
24-65                (3)  Section 532.011(c), Health and Safety Code.
24-66          SECTION 12.02.  This Act takes effect September 1, 1999.
24-67          SECTION 12.03.  The importance of this legislation and the
24-68    crowded condition of the calendars in both houses create an
24-69    emergency and an imperative public necessity that the
 25-1    constitutional rule requiring bills to be read on three several
 25-2    days in each house be suspended, and this rule is hereby suspended.
 25-3                                 * * * * *