1-1                                   AN ACT
 1-2     relating to the lease of certain facilities and the retirement
 1-3     options and health coverage of certain employees in connection with
 1-4     implementation of integrated enrollment services for health and
 1-5     human services programs.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Subchapter B, Chapter 531, Government Code, is
 1-8     amended by adding Sections 531.051 and 531.052 to read as follows:
 1-9           Sec. 531.051.  LEASES AND SUBLEASES OF CERTAIN OFFICE SPACE.
1-10     (a)  A health and human services agency, with the approval of the
1-11     commission, or the Texas Workforce Commission or any other state
1-12     agency that administers employment services programs may sublease
1-13     office space to a private service entity or lease office space from
1-14     a private service entity that provides publicly funded health,
1-15     human, or workforce services to enable agency eligibility and
1-16     enrollment personnel to work with the entity if:
1-17                 (1)  client access to services would be enhanced; and
1-18                 (2)  the colocation of offices would improve the
1-19     efficiency of the administration and delivery of services.
1-20           (b)  Subchapters D and E, Chapter 2165, do not apply to a
1-21     state agency that leases office space to a private service entity
1-22     or subleases office space to a private service entity under this
1-23     section.
1-24           (c)  Subchapter B, Chapter 2167, does not apply to a state
 2-1     agency that leases office space from a private service entity or
 2-2     subleases office space from a private service entity under this
 2-3     section.
 2-4           (d)  A state agency is delegated the authority to enter into
 2-5     a lease or sublease under this section and may negotiate the terms
 2-6     of the lease or sublease.
 2-7           (e)  To the extent authorized by federal law, a state agency
 2-8     may share business resources with a private service entity that
 2-9     enters into a lease or sublease agreement with the agency under
2-10     this section.
2-11           Sec. 531.052.  ASSUMPTION OF LEASES FOR IMPLEMENTATION OF
2-12     INTEGRATED ENROLLMENT SERVICES INITIATIVE. (a) A health and human
2-13     services agency, with the approval of the commission, or the Texas
2-14     Workforce Commission or any other state agency that administers
2-15     employment services programs may assume a lease from an integrated
2-16     enrollment services initiative contractor or subcontractor for the
2-17     purpose of implementing the initiative at one development center,
2-18     one mail center, or 10 or more call or change centers.
2-19           (b)  Subchapter B, Chapter 2167, does not apply to a state
2-20     agency that assumes a lease from a contractor or subcontractor
2-21     under this section.
2-22           SECTION 2.  Section 814.1041, Government Code, is amended by
2-23     amending Subsections (a) and (f) and adding Subsection (g) to read
2-24     as follows:
2-25           (a)  This section applies only to members of the employee
2-26     class whose positions with the Texas Workforce Commission, the
2-27     Texas Department of Health, the Texas Department of Human Services,
 3-1     or the Texas Department of Mental Health and Mental Retardation are
 3-2     eliminated as a result of contracts with private service providers
 3-3     or other reductions in services provided by those agencies and who
 3-4     separate from state service at that time.
 3-5           (f)  The retirement option under this section is not
 3-6     available to an employee of the Texas Department of Health or the
 3-7     Texas Department of Human Services who receives a cash payment
 3-8     under an incentive program implemented by either agency with
 3-9     respect to certain employees whose positions are eliminated because
3-10     of privatization or other reductions in services provided by the
3-11     agency.
3-12           (g)  This section applies only to positions eliminated by
3-13     privatization or other reductions in workforce before September 1,
3-14     2003 [1999].
3-15           SECTION 3.  The Texas Employees Uniform Group Insurance
3-16     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
3-17     amended by adding Section 3B to read as follows:
3-18           Sec. 3B.  CERTAIN EMPLOYEES MAY ELECT TO PARTICIPATE.  (a)
3-19     This section applies only to a person who separates from state
3-20     service and receives a cash payment under an incentive program
3-21     implemented by the Texas Department of Human Services or the Texas
3-22     Department of Health with respect to certain employees whose
3-23     positions are eliminated as a result of privatization or other
3-24     reductions in services provided by those agencies.
3-25           (b)  A person is entitled to receive state contributions
3-26     required to provide health coverage under the program administered
3-27     by the trustee under this Act for two months after the effective
 4-1     date of the person's separation from state service.
 4-2           SECTION 4.  This Act takes effect September 1, 1999.
 4-3           SECTION 5.  The importance of this legislation and the
 4-4     crowded condition of the calendars in both houses create an
 4-5     emergency and an imperative public necessity that the
 4-6     constitutional rule requiring bills to be read on three several
 4-7     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2877 was passed by the House on May
         4, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2877 on May 22, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2877 was passed by the Senate, with
         amendments, on May 20, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor