By:  Brown                                             S.B. No. 372
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the continuation and functions of the Health and Human
 1-2     Services Commission.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4          ARTICLE 1.  GENERAL POWERS AND DUTIES OF HEALTH AND HUMAN
 1-5                             SERVICES COMMISSION
 1-6           SECTION 1.01.  Section 531.004, Government Code, is amended
 1-7     to read as follows:
 1-8           Sec. 531.004.  SUNSET PROVISION.  The Health and Human
 1-9     Services Commission is subject to Chapter 325 (Texas Sunset Act).
1-10     Unless continued in existence as provided by that chapter, the
1-11     commission is abolished and this chapter expires September 1, 2007
1-12     [1999].
1-13           SECTION 1.02.  Section 531.009, Government Code, is amended
1-14     to read as follows:
1-15           Sec. 531.009.  PERSONNEL.  (a)  The commissioner shall employ
1-16     a medical director to provide medical expertise to the commissioner
1-17     and the commission and may employ other personnel necessary to
1-18     administer the commission's duties.
1-19           (b)  The commissioner or the commissioner's designated
1-20     representative shall develop an intra-agency career ladder program,
1-21     one part of which must require the intra-agency posting of all
1-22     non-entry-level positions concurrently with any public posting.
 2-1           (c)  The commissioner or the commissioner's designated
 2-2     representative shall develop a system of annual performance
 2-3     evaluations based on measurable job tasks.  All merit pay for
 2-4     commission employees must be based on the system established under
 2-5     this subsection.
 2-6           (d)  The commissioner shall provide to commission employees
 2-7     as often as is necessary information regarding their qualifications
 2-8     under this chapter and their responsibilities under applicable laws
 2-9     relating to standards of conduct for state employees.
2-10           (e)  The commissioner or the commissioner's designated
2-11     representative shall prepare and maintain a written policy
2-12     statement that implements [to ensure implementation of] a program
2-13     of equal employment opportunity to ensure that [under which] all
2-14     personnel transactions are made without regard to race, color,
2-15     disability, sex, religion, age, or national origin.
2-16           (f)  The policy statement described by Subsection (e) must
2-17     include:
2-18                 (1)  personnel policies, including policies relating to
2-19     recruitment, evaluation, selection, [appointment,] training, and
2-20     promotion of personnel, that show the intent of the commission to
2-21     avoid the unlawful employment practices described by Chapter 21,
2-22     Labor Code; and
2-23                 (2)  an analysis of the extent to which the composition
2-24     of the commission's personnel is in accordance with state and
2-25     federal law and a description of reasonable methods to achieve
2-26     compliance with state and federal law [a comprehensive analysis of
 3-1     the commission workforce that meets federal and state guidelines;]
 3-2                 [(3)  procedures by which a determination can be made
 3-3     of significant underuse in the commission workforce of all persons
 3-4     for whom federal or state guidelines encourage a more equitable
 3-5     balance; and]
 3-6                 [(4)  reasonable methods to appropriately address areas
 3-7     of significant underuse in the commission workforce of all persons
 3-8     for whom federal or state guidelines encourage a more equitable
 3-9     balance].
3-10           (g)  The policy statement described by Subsection (e) must:
3-11                 (1)  be updated annually;
3-12                 (2)  be reviewed by the state Commission on Human
3-13     Rights for compliance with Subsection (f)(1); and
3-14                 (3)  be filed with the governor's office.
3-15           SECTION 1.03.  Section 531.011, Government Code, is amended
3-16     by adding Subsection (g) to read as follows:
3-17           (g)  In addition to the information file maintained under
3-18     Subsection (e), the commission shall maintain an information file
3-19     on a complaint received by the commission relating to any matter or
3-20     agency under the jurisdiction of the commission.
3-21           SECTION 1.04.  Subchapter A, Chapter 531, Government Code, is
3-22     amended by adding Section 531.014 to read as follows:
3-23           Sec. 531.014.  CONSOLIDATION OF REPORTS.  The commission may
3-24     consolidate any annual or biennial reports required to be made
3-25     under this chapter or another law if:
3-26                 (1)  the consolidated report is submitted not later
 4-1     than the earliest deadline for the submission of any component of
 4-2     the consolidated report; and
 4-3                 (2)  each person required to receive a component of the
 4-4     consolidated report receives the consolidated report and the
 4-5     consolidated report identifies the component of the report the
 4-6     person was required to receive.
 4-7               ARTICLE 2.  RELATIONSHIP WITH HEALTH AND HUMAN
 4-8                              SERVICES AGENCIES
 4-9           SECTION 2.01.  Subchapter A, Chapter 531, Government Code, is
4-10     amended by adding Section 531.0055 to read as follows:
4-11           Sec. 531.0055.  COMMISSIONER:  RESPONSIBILITY RELATING TO
4-12     CERTAIN FUNCTIONS OF HEALTH AND HUMAN SERVICES AGENCIES.  (a)  In
4-13     this section:
4-14                 (1)  "Agency director" means the director, executive
4-15     director, or commissioner of a health and human services agency.
4-16                 (2)  "Policymaking body" means the board or commission
4-17     with policymaking authority over a health and human services
4-18     agency.
4-19           (b)  The commission shall:
4-20                 (1)  supervise the administration and operation of the
4-21     Medicaid program, including the administration and operation of the
4-22     Medicaid managed care system in accordance with Section 531.021;
4-23                 (2)  supervise information systems planning and
4-24     management for health and human services agencies under Section
4-25     531.0273;
4-26                 (3)  manage and distribute all federal funds received
 5-1     by a health and human services agency in accordance with Section
 5-2     531.028; and
 5-3                 (4)  implement Texas Integrated Enrollment Services as
 5-4     required by Subchapter F.
 5-5           (c)  After implementation of the commission's duties under
 5-6     Subsection (b), the commission shall implement the powers and
 5-7     duties given to the commission under Sections 531.0246, 531.0247,
 5-8     2155.144, as added by Chapter 1045, Acts of the 75th Legislature,
 5-9     Regular Session, 1997, and 2167.004.
5-10           (d)  After implementation of the commission's duties under
5-11     Subsections (b) and (c), the commission shall implement the powers
5-12     and duties given to the commission under Section 531.0248.
5-13           (e)  Notwithstanding any other law, the commissioner, as
5-14     necessary to perform the functions described by Subsections (b),
5-15     (c), and (d) in implementation of the policies established by each
5-16     agency's policymaking body, shall:
5-17                 (1)  manage and direct the operations of each health
5-18     and human services agency; and
5-19                 (2)  supervise and direct the activities of each agency
5-20     director.
5-21           (f)  The operational authority of the commissioner for
5-22     purposes of Subsection (e) at each health and human services agency
5-23     includes authority over the:
5-24                 (1)  management of the daily operations of the agency,
5-25     including the organization and management of the agency and agency
5-26     operating procedures;
 6-1                 (2)  allocation of resources within the agency,
 6-2     including use of federal funds received by the agency;
 6-3                 (3)  personnel and employment policies;
 6-4                 (4)  contracting, purchasing, and related policies,
 6-5     subject to this chapter and other laws relating to contracting and
 6-6     purchasing by a state agency;
 6-7                 (5)  information resources systems used by the agency;
 6-8                 (6)  location of agency facilities; and
 6-9                 (7)  coordination of agency activities with activities
6-10     of other state agencies, including other health and human services
6-11     agencies.
6-12           (g)  Notwithstanding any other law, the operational authority
6-13     of the commissioner for purposes of Subsection (e) at each health
6-14     and human services agency includes the authority to adopt or
6-15     approve, subject to applicable limitations, any rate of payment or
6-16     similar provision required by law to be adopted or approved by the
6-17     agency.
6-18           (h)  For each health and human services agency, the
6-19     commissioner shall implement a program to evaluate and supervise
6-20     the daily operations of the agency.  The program must include
6-21     measurable performance objectives for each agency director and
6-22     adequate reporting requirements to permit the commissioner to
6-23     perform the duties assigned to the commissioner under this section.
6-24           (i)  To facilitate the operations of a health and human
6-25     services agency in accordance with this section, the commissioner
6-26     may delegate a specific power or duty given under Subsection (f) or
 7-1     (g) to an agency director.
 7-2           (j)  The commissioner may adopt rules to implement the
 7-3     commissioner's authority under this section.
 7-4           (k)  The commissioner and each agency director shall enter
 7-5     into a memorandum of understanding that:
 7-6                 (1)  clearly defines the responsibilities of the agency
 7-7     director and the commissioner;
 7-8                 (2)  establishes the program of evaluation and
 7-9     supervision of daily operations required by Subsection (h); and
7-10                 (3)  describes each delegation of a power or duty made
7-11     under Subsection (i).
7-12           (l)  Notwithstanding any other provision of this section, a
7-13     policymaking body has the authority provided by law to adopt
7-14     policies and rules governing the delivery of services to persons
7-15     who are served by the agency and the rights and duties of persons
7-16     who are served or regulated by the agency.  The commissioner and
7-17     each policymaking body shall enter into a memorandum of
7-18     understanding that clearly defines:
7-19                 (1)  the policymaking authority of the policymaking
7-20     body; and
7-21                 (2)  the operational authority of the commissioner.
7-22           SECTION 2.02.  Section 21.004(b), Human Resources Code, is
7-23     amended to read as follows:
7-24           (b)  The commissioner is appointed by the board with the
7-25     concurrence of the commissioner of health and human services and
7-26     the approval of the governor.  The commissioner [and] serves at the
 8-1     pleasure of the board.
 8-2           SECTION 2.03.  Chapter 22, Human Resources Code, is amended
 8-3     by adding Section 22.0001 to read as follows:
 8-4           Sec. 22.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 8-5     AND HUMAN SERVICES.  The commissioner of health and human services
 8-6     has the powers and duties relating to the board and commissioner as
 8-7     provided by Section 531.0055, Government Code.  To the extent a
 8-8     power or duty given to the board or commissioner by this title or
 8-9     another law conflicts with Section 531.0055, Government Code,
8-10     Section 531.0055 controls.
8-11           SECTION 2.04.  Section 40.027(a), Human Resources Code, is
8-12     amended to read as follows:
8-13           (a)  The board shall appoint [employ] the executive director
8-14     with the concurrence of the commissioner of health and human
8-15     services and the approval of the governor.  The executive director
8-16     serves at the pleasure of the board.
8-17           SECTION 2.05.  Subchapter C, Chapter 40, Human Resources
8-18     Code, is amended by adding Section 40.0505 to read as follows:
8-19           Sec. 40.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
8-20     AND HUMAN SERVICES.  The commissioner of health and human services
8-21     has the powers and duties relating to the board and executive
8-22     director as provided by Section 531.0055, Government Code.  To the
8-23     extent a power or duty given to the board or executive director by
8-24     this chapter or another law conflicts with Section 531.0055,
8-25     Government Code, Section 531.0055 controls.
8-26           SECTION 2.06.  Chapter 73, Human Resources Code, is amended
 9-1     by adding Section 73.0045 to read as follows:
 9-2           Sec. 73.0045.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 9-3     AND HUMAN SERVICES.  The commissioner of health and human services
 9-4     has the powers and duties relating to the board and the executive
 9-5     director of the board as provided by Section 531.0055, Government
 9-6     Code.  To the extent a power or duty given to the board or
 9-7     executive director by this chapter or another law conflicts with
 9-8     Section 531.0055, Government Code, Section 531.0055 controls.
 9-9           SECTION 2.07.  Section 73.0052(b), Human Resources Code, is
9-10     amended to read as follows:
9-11           (b)  The board shall appoint [employ] an executive director
9-12     with the concurrence of the commissioner of health and human
9-13     services and the approval of the governor.  The executive director
9-14     serves at the pleasure of the board.  The[, and the] executive
9-15     director shall establish necessary administrative units, and hire
9-16     other necessary employees.
9-17           SECTION 2.08.  Chapter 81, Human Resources Code, is amended
9-18     by adding Section 81.0055 to read as follows:
9-19           Sec. 81.0055.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
9-20     AND HUMAN SERVICES.  The commissioner of health and human services
9-21     has the powers and duties relating to the commission and the
9-22     executive director of the commission as provided by Section
9-23     531.0055, Government Code.  To the extent a power or duty given to
9-24     the commission or executive director by this chapter or another law
9-25     conflicts with Section 531.0055, Government Code, Section 531.0055
9-26     controls.
 10-1          SECTION 2.09.  Section 81.008(a), Human Resources Code, is
 10-2    amended to read as follows:
 10-3          (a)  The commission shall appoint an executive director with
 10-4    the concurrence of the commissioner of health and human services
 10-5    and the approval of the governor.  The executive director serves at
 10-6    the pleasure of the commission.
 10-7          SECTION 2.10.  Section 91.012(a), Human Resources Code, is
 10-8    amended to read as follows:
 10-9          (a)  The commission shall [annually] appoint an executive
10-10    director with the concurrence of the commissioner of health and
10-11    human services and the approval of the governor.  The executive
10-12    director serves at the pleasure of the commission.
10-13          SECTION 2.11.  Subchapter C, Chapter 91, Human Resources
10-14    Code, is amended by adding Section 91.0205 to read as follows:
10-15          Sec. 91.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
10-16    AND HUMAN SERVICES.  The commissioner of health and human services
10-17    has the powers and duties relating to the commission and executive
10-18    director as provided by Section 531.0055, Government Code.  To the
10-19    extent a power or duty given to the commission or executive
10-20    director by this chapter or another law conflicts with Section
10-21    531.0055, Government Code, Section 531.0055 controls.
10-22          SECTION 2.12.  Section 101.004(a), Human Resources Code, is
10-23    amended to read as follows:
10-24          (a)  The board shall appoint an executive director of aging
10-25    with the concurrence of the commissioner of health and human
10-26    services and the approval of the governor.  The executive director
 11-1    shall discharge all executive and administrative functions of the
 11-2    department.  The executive director must be a person with executive
 11-3    ability and experience in the area of aging.  The executive
 11-4    director serves at the pleasure of the board.
 11-5          SECTION 2.13.  Subchapter B, Chapter 101, Human Resources
 11-6    Code, is amended by adding Section 101.0205 to read as follows:
 11-7          Sec. 101.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 11-8    AND HUMAN SERVICES.  The commissioner of health and human services
 11-9    has the powers and duties relating to the board and executive
11-10    director as provided by Section 531.0055, Government Code.  To the
11-11    extent a power or duty given to the board or executive director by
11-12    this chapter or another law conflicts with Section 531.0055,
11-13    Government Code, Section 531.0055 controls.
11-14          SECTION 2.14.  Section 111.017, Human Resources Code, is
11-15    amended to read as follows:
11-16          Sec. 111.017.  COMMISSIONER.  This chapter is administered by
11-17    the commissioner under operational policies established by the
11-18    board.  The commissioner is appointed by the board, with the
11-19    concurrence of the commissioner of health and human services and
11-20    the approval of the governor, on the basis of education, training,
11-21    experience, and demonstrated ability.  The commissioner serves at
11-22    the pleasure of the board and is secretary to the board, as well as
11-23    chief administrative officer of the agency.
11-24          SECTION 2.15.  Subchapter C, Chapter 111, Human Resources
11-25    Code, is amended by adding Section 111.0505 to read as follows:
11-26          Sec. 111.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 12-1    AND HUMAN SERVICES.  The commissioner of health and human services
 12-2    has the powers and duties relating to the commission and
 12-3    commissioner as provided by Section 531.0055, Government Code.  To
 12-4    the extent a power or duty given to the commission or commissioner
 12-5    by this chapter or another law conflicts with Section 531.0055,
 12-6    Government Code, Section 531.0055 controls.
 12-7          SECTION 2.16.  Subchapter C, Chapter 141, Human Resources
 12-8    Code, is amended by adding Section 141.0405 to read as follows:
 12-9          Sec. 141.0405.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
12-10    AND HUMAN SERVICES.  The commissioner of health and human services
12-11    has the powers and duties relating to the commission and director
12-12    as provided by Section 531.0055, Government Code.  To the extent a
12-13    power or duty given to the commission or director by this chapter
12-14    or another law conflicts with Section 531.0055, Government Code,
12-15    Section 531.0055 controls.
12-16          SECTION 2.17.  Section 11.012(a), Health and Safety Code, is
12-17    amended to read as follows:
12-18          (a)  The board shall appoint [employ] the commissioner with
12-19    the concurrence of the commissioner of health and human services
12-20    and the approval of the governor.  The commissioner serves at the
12-21    will of the board.
12-22          SECTION 2.18.  Subchapter A, Chapter 12, Health and Safety
12-23    Code, is amended by adding Section 12.0001 to read as follows:
12-24          Sec. 12.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
12-25    AND HUMAN SERVICES.  The commissioner of health and human services
12-26    has the powers and duties relating to the board and commissioner as
 13-1    provided by Section 531.0055, Government Code.  To the extent a
 13-2    power or duty given to the board or commissioner by this title or
 13-3    another law conflicts with Section 531.0055, Government Code,
 13-4    Section 531.0055 controls.
 13-5          SECTION 2.19.  Section 461.011(a), Health and Safety Code, is
 13-6    amended to read as follows:
 13-7          (a)  The commission shall appoint [employ] an executive
 13-8    director with the concurrence of the commissioner of health and
 13-9    human services and the approval of the governor.  The executive
13-10    director shall hire other necessary employees.
13-11          SECTION 2.20.  Chapter 461, Health and Safety Code, is
13-12    amended by adding Section 461.0115 to read as follows:
13-13          Sec. 461.0115.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
13-14    AND HUMAN SERVICES.  The commissioner of health and human services
13-15    has the powers and duties relating to the commission and executive
13-16    director as provided by Section 531.0055, Government Code.  To the
13-17    extent a power or duty given to the commission or executive
13-18    director by this chapter or another law conflicts with Section
13-19    531.0055, Government Code, Section 531.0055 controls.
13-20          SECTION 2.21.  Section 532.011(a), Health and Safety Code, is
13-21    amended to read as follows:
13-22          (a)  The board shall appoint a commissioner with the
13-23    concurrence of the commissioner of health and human services and
13-24    the approval of the governor.
13-25          SECTION 2.22.  Subchapter A, Chapter 533, Health and Safety
13-26    Code, is amended by adding Section 533.0001 to read as follows:
 14-1          Sec. 533.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH
 14-2    AND HUMAN SERVICES.  The commissioner of health and human services
 14-3    has the powers and duties relating to the board and commissioner as
 14-4    provided by Section 531.0055, Government Code.  To the extent a
 14-5    power or duty given to the board or commissioner by this title or
 14-6    another law conflicts with Section 531.0055, Government Code,
 14-7    Section 531.0055 controls.
 14-8          SECTION 2.23.  (a)  In this section, "agency director" has
 14-9    the meaning assigned by Section 531.0055, Government Code, as added
14-10    by this Act.
14-11          (b)  An agency director serving on the effective date of this
14-12    Act continues to serve in that position until the expiration of the
14-13    term of that person's appointment or employment or until removed
14-14    from the position as provided by law.  A vacancy in the position of
14-15    an agency director that occurs on or after the effective date of
14-16    this Act shall be filled by the respective appointing authority
14-17    with the concurrence of the commissioner of health and human
14-18    services and the approval of the governor as required by the change
14-19    in law made by this Act.
14-20                 ARTICLE 3.  SPECIFIC FUNCTIONS OF HEALTH
14-21                       AND HUMAN SERVICES COMMISSION
14-22          SECTION 3.01.  Section 531.021(b), Government Code, is
14-23    amended to read as follows:
14-24          (b)  The commission shall:
14-25                (1)  plan and direct the Medicaid program in each
14-26    agency that operates a portion of the Medicaid program, including
 15-1    the management of the Medicaid managed care system and the
 15-2    development, procurement, management, and monitoring of contracts
 15-3    necessary to implement the Medicaid managed care system;
 15-4                (2)  adopt [is responsible for adopting] reasonable
 15-5    rules and standards governing the determination of fees, charges,
 15-6    and rates for medical assistance payments under Chapter 32, Human
 15-7    Resources Code, in consultation[.  In adopting these rules and
 15-8    standards, the commission shall consult] with the agencies that
 15-9    operate the Medicaid program; and
15-10                (3)  evaluate the Medicaid managed care system in
15-11    conjunction with the Texas Health Care Information Council under
15-12    Section 108.0065, Health and Safety Code.
15-13          SECTION 3.02.  Subchapter B, Chapter 531, Government Code, is
15-14    amended by adding Sections 531.0246, 531.0247, 531.0248, and
15-15    531.0249 to read as follows:
15-16          Sec. 531.0246.  REGIONAL MANAGEMENT OF HEALTH AND HUMAN
15-17    SERVICES AGENCIES.  Subject to Section 531.0055(c), the commission
15-18    may require a health and human services agency, under the direction
15-19    of the commission, to:
15-20                (1)  locate all or a portion of the agency's employees
15-21    and programs in the same building as another health and human
15-22    services agency or at a location near or adjacent to the location
15-23    of another health and human services agency; and
15-24                (2)  consolidate agency support services, including
15-25    clerical and administrative support services and information
15-26    resources support services, with support services provided to or by
 16-1    another health and human services agency.
 16-2          Sec. 531.0247.  ANNUAL PLAN.  Subject to Section 531.0055(c),
 16-3    the commission shall develop and implement an annual services plan
 16-4    for each health and human services region that establishes
 16-5    performance objectives for all health and human services agencies
 16-6    providing services in the region and measures agency effectiveness
 16-7    and efficiency in achieving those objectives.
 16-8          Sec. 531.0248.  COMMUNITY-BASED SUPPORT SYSTEMS.  (a)
 16-9    Subject to Section 531.0055(d), the commission shall assist
16-10    communities in this state in developing comprehensive,
16-11    community-based support systems for health and human services. At
16-12    the request of a community, the commission shall provide resources
16-13    and assistance to the community to enable the community to:
16-14                (1)  identify and overcome institutional barriers to
16-15    developing more comprehensive community support systems, including
16-16    barriers that result from the policies and procedures of state
16-17    health and human services agencies; and
16-18                (2)  develop a system of blended funds to allow the
16-19    community to customize services to fit individual community needs.
16-20          (b)  At the request of the commission, a health and human
16-21    services agency shall provide resources and assistance to a
16-22    community as necessary to perform the commission's duties under
16-23    Subsection (a).
16-24          (c)  A health and human services agency that receives or
16-25    develops a proposal for a community initiative shall submit the
16-26    initiative to the commission for review and approval. The
 17-1    commission shall review the initiative to ensure that the
 17-2    initiative is consistent with other similar programs offered in
 17-3    communities and does not duplicate other services provided in the
 17-4    community.
 17-5          (d)  In implementing this section, the commission shall
 17-6    consider models used in other service delivery systems, including
 17-7    the mental health and mental retardation service delivery system.
 17-8          Sec. 531.0249.  ADVISORY COMMITTEE FOR LOCAL GOVERNMENTAL
 17-9    ENTITIES.  (a)  The commission shall appoint an advisory committee
17-10    composed of representatives of governmental entities identified
17-11    under Section 531.022(e).
17-12          (b)  The advisory committee:
17-13                (1)  shall advise the commission with respect to
17-14    establishing flexible and responsive strategies for blending
17-15    federal, state, and other available funding sources to meet local
17-16    program needs and service priorities, in implementation of Sections
17-17    531.022, 531.024, and 531.0248; and
17-18                (2)  may assist the commission in performing its other
17-19    functions under Sections 531.022, 531.024, 531.0248, and
17-20    531.028(b)(6).
17-21          (c)  A member of the advisory committee may not receive
17-22    compensation, but is entitled to reimbursement of the travel
17-23    expenses incurred by the member while conducting the business of
17-24    the committee, as provided by the General Appropriations Act.
17-25          (d)  The advisory committee is not subject to Chapter 2110.
17-26          SECTION 3.03.  Section 531.0273, Government Code, is amended
 18-1    to read as follows:
 18-2          Sec. 531.0273.  INFORMATION RESOURCES PLANNING AND
 18-3    MANAGEMENT; ADVISORY COMMITTEE [AUTOMATED SYSTEMS].  (a)  The
 18-4    commission is responsible for strategic planning for information
 18-5    resources at each health and human services agency and shall direct
 18-6    the management of information resources at each health and human
 18-7    services agency.  The commission shall:
 18-8                (1)  develop a coordinated strategic plan for
 18-9    information resources management that:
18-10                      (A)  covers a five-year period;
18-11                      (B)  defines objectives for information resources
18-12    management at each health and human services agency;
18-13                      (C)  prioritizes information resources projects
18-14    and implementation of new technology for all health and human
18-15    services agencies;
18-16                      (D)  integrates planning and development of each
18-17    information resources system used by a health and human services
18-18    agency into a coordinated information resources management planning
18-19    and development system established by the commission;
18-20                      (E)  establishes standards for information
18-21    resources system security and that promotes the ability of
18-22    information resources systems to operate with each other; and
18-23                      (F)  achieves economies of scale and related
18-24    benefits in purchasing for health and human services information
18-25    resources systems;
18-26                (2)  establish information resources management
 19-1    policies, procedures, and technical standards and ensure compliance
 19-2    with those policies, procedures, and standards; and
 19-3                (3)  review and approve the information resources
 19-4    management and biennial operating plan of each health and human
 19-5    services agency.
 19-6          (b)  Not later than December 15 of each even-numbered year,
 19-7    the commission shall file the coordinated information resources
 19-8    strategic plan with the governor, the lieutenant governor, and the
 19-9    speaker of the house of representatives.
19-10          (c)  A health and human services agency may not submit its
19-11    plans to the Department of Information Resources under Subchapter
19-12    E, Chapter 2054, until those plans are approved by the commission.
19-13          (d)  The commission shall appoint an advisory committee
19-14    composed of:
19-15                (1)  information resources managers for state agencies
19-16    and for private employers; and
19-17                (2)  the directors, executive directors, and
19-18    commissioners of health and human services agencies.
19-19          (e)  The advisory committee appointed under Subsection (d)
19-20    shall advise the commission with respect to the implementation of
19-21    the commission's duties under Subsection (a)(1) and:
19-22                (1)  shall advise the commission about:
19-23                      (A)  overall goals and objectives for information
19-24    resources management for all health and human services agencies;
19-25                      (B)  coordination of agency information resources
19-26    management plans;
 20-1                      (C)  development of short-term and long-term
 20-2    strategies for:
 20-3                            (i)  implementing information resources
 20-4    management policies, procedures, and technical standards; and
 20-5                            (ii)  ensuring compatibility of information
 20-6    resources systems across health and human services agencies as
 20-7    technology changes;
 20-8                      (D)  information resources training and skill
 20-9    development for health and human services agency employees and
20-10    policies to facilitate recruitment and retention of trained
20-11    employees;
20-12                      (E)  standards for determining:
20-13                            (i)  the circumstances in which obtaining
20-14    information resources services under contract is appropriate;
20-15                            (ii)  the information resources services
20-16    functions that must be performed by health and human services
20-17    agency information resources services employees; and
20-18                            (iii)  the information resources services
20-19    skills that must be maintained by health and human services agency
20-20    information resources services employees;
20-21                      (F)  optimization of the use of information
20-22    resources technology that is in place at health and human services
20-23    agencies; and
20-24                      (G)  existing and potential future information
20-25    resources technologies and practices and the usefulness of those
20-26    technologies and practices to health and human services agencies;
 21-1    and
 21-2                (2)  shall review and make recommendations to the
 21-3    commission relating to the consolidation and improved efficiency of
 21-4    information resources management functions, including:
 21-5                      (A)  cooperative leasing of information resources
 21-6    systems equipment;
 21-7                      (B)  consolidation of data centers;
 21-8                      (C)  improved network operations;
 21-9                      (D)  technical support functions, including help
21-10    desk services, call centers, and data warehouses;
21-11                      (E)  administrative applications;
21-12                      (F)  purchases of standard software;
21-13                      (G)  joint training efforts;
21-14                      (H)  recruitment and retention of trained agency
21-15    employees;
21-16                      (I)  video conferencing; and
21-17                      (J)  other related opportunities for improved
21-18    efficiency.
21-19          (f)  A member of the advisory committee may not receive
21-20    compensation, but is entitled to reimbursement of the travel
21-21    expenses incurred by the member while conducting the business of
21-22    the committee, as provided by the General Appropriations Act.
21-23          (g)  The advisory committee is not subject to Chapter 2110.
21-24          SECTION 3.04.  Section 531.028, Government Code, is amended
21-25    to read as follows:
21-26          Sec. 531.028.  MANAGEMENT AND DISTRIBUTION OF FUNDS.
 22-1    (a)  The commission shall manage and distribute all federal funds
 22-2    received by health and human services agencies.
 22-3          (b)  The commissioner shall establish a federal money
 22-4    management system to coordinate and monitor the use of federal
 22-5    money that is received by health and human services agencies to
 22-6    ensure that the money is spent in the most efficient manner and
 22-7    shall:
 22-8                (1)  establish priorities for use of federal money by
 22-9    all health and human services agencies, in coordination with the
22-10    coordinated strategic plan established under Section 531.022 and
22-11    the budget prepared under Section 531.026;
22-12                (2)  coordinate and monitor the use of federal money
22-13    for health and human services to ensure that the money is spent in
22-14    the most cost-effective manner throughout the health and human
22-15    services system;
22-16                (3)  review and approve all federal funding plans for
22-17    health and human services in this state;
22-18                (4)  estimate available federal money, including earned
22-19    federal money, and monitor unspent money;
22-20                (5)  ensure that the state meets federal requirements
22-21    relating to receipt of federal money for health and human services,
22-22    including requirements relating to state matching money and
22-23    maintenance of effort;
22-24                (6)  transfer appropriated amounts, within the limits
22-25    established by the General Appropriations Act, to enhance the
22-26    receipt of federal money and the delivery of health and human
 23-1    services; and
 23-2                (7)  ensure that each governmental entity identified
 23-3    under Section 531.022(e) has access to complete and timely
 23-4    information about all sources of federal money for health and human
 23-5    services programs and that technical assistance is available to
 23-6    governmental entities seeking grants of federal money to provide
 23-7    health and human services.
 23-8          (c)  The commission shall prepare an annual report with
 23-9    respect to the results of the implementation of this section. The
23-10    report must identify strategies to maximize the receipt and use of
23-11    federal funds and to improve federal funds management. The
23-12    commission shall file the report with the governor, the lieutenant
23-13    governor, and the speaker of the house of representatives not later
23-14    than December 15 of each year [request budget execution for the
23-15    transfer of funds from one agency to another;]
23-16                [(2)  establish a federal health and human services
23-17    funds management system and maximize the availability of those
23-18    funds; and]
23-19                [(3)  review and comment on health and human services
23-20    agency formulas for the distribution of funds to ensure that the
23-21    formulas, to the extent permitted by federal law, consider such
23-22    need factors as client base, population, and economic and
23-23    geographic factors within the regions of the state].
23-24          SECTION 3.05.  Section 531.0312, Government Code, is amended
23-25    to read as follows:
23-26          Sec. 531.0312.  TEXAS INFORMATION AND REFERRAL NETWORK.
 24-1    (a)  The Texas Information and Referral Network at the commission
 24-2    is the program responsible for the development, coordination, and
 24-3    implementation of a statewide information and referral network that
 24-4    integrates existing community-based structures with state and local
 24-5    agencies.  The network must include information relating to
 24-6    transportation services provided to clients of state and local
 24-7    agencies.
 24-8          (b)  The commission shall cooperate with the Records
 24-9    Management Interagency Coordinating Council and the General
24-10    Services Commission to establish a single method of categorizing
24-11    information about health and human services to be used by the
24-12    Records Management Interagency Coordinating Council and the Texas
24-13    Information and Referral Network. The network, in cooperation with
24-14    the council and the General Services Commission, shall ensure that:
24-15                (1)  information relating to health and human services
24-16    is included in each residential telephone directory published by a
24-17    for-profit publisher and distributed to the public at minimal or no
24-18    cost; and
24-19                (2)  the single method of categorizing information
24-20    about health and human services is used in a residential telephone
24-21    directory described by Subdivision (1).
24-22          (c)  A health and human services agency shall provide the
24-23    Texas Information and Referral Network and the Records Management
24-24    Interagency Coordinating Council with information about the health
24-25    and human services provided by the agency for inclusion in the
24-26    statewide information and referral network, residential telephone
 25-1    directories described by Subsection (b), and any other materials
 25-2    produced under the direction of the network or the council.  The
 25-3    agency shall provide the information in the format required by the
 25-4    Texas Information and Referral Network or the Records Management
 25-5    Interagency Coordinating Council and shall update the information
 25-6    at least quarterly or as required by the network or the council.
 25-7          SECTION 3.06.  Section 441.053(j), Government Code,  is
 25-8    redesignated as Subsection (j) of Section 441.203, Government Code,
 25-9    as added by Chapter 873, Acts of the 75th Legislature, Regular
25-10    Session, 1997, and is amended to read as follows:
25-11          (j)  The council shall categorize state agency programs and
25-12    telephone numbers by subject matter as well as by agency.  The
25-13    council shall cooperate with the Texas Information and Referral
25-14    Network under Section 531.0312 to ensure that the council and the
25-15    network use a single method of defining and organizing information
25-16    about health and human services.  State agencies shall cooperate
25-17    with the council by providing the council with the information it
25-18    needs to perform this function.
25-19          SECTION 3.07.  Section 9.12, Chapter 655, Acts of the 74th
25-20    Legislature, Regular Session, 1995, as amended by Section 1,
25-21    Chapter 1116, Acts of the 75th Legislature, Regular Session, 1997,
25-22    is redesignated as Subchapter F, Chapter 531, Government Code, and
25-23    amended to read as follows:
25-24            SUBCHAPTER F.  TEXAS INTEGRATED ENROLLMENT SERVICES
25-25          Sec. 531.191 [9.12].  INTEGRATED ELIGIBILITY DETERMINATION.
25-26    (a)  The commission [In consultation and coordination with the
 26-1    Texas Integrated Enrollment Services Legislative Oversight
 26-2    Committee established under Section 531.202, Government Code, the
 26-3    Health and Human Services Commission], subject to the approval of
 26-4    the governor and the Legislative Budget Board, shall develop and
 26-5    implement a plan for the integration of services and functions
 26-6    relating to eligibility determination and service delivery by
 26-7    health and human services agencies, the Texas Workforce Commission,
 26-8    and other agencies.  The plan must include a reengineering of
 26-9    eligibility determination business processes, streamlined service
26-10    delivery, a unified and integrated process for the transition from
26-11    welfare to work, and improved access to benefits and services for
26-12    clients. In developing and implementing the plan, the commission
26-13    [Health and Human Services Commission]:
26-14                (1)  shall give priority to the design and development
26-15    of computer hardware and software for and provide technical support
26-16    relating to the integrated eligibility determination system;
26-17                (2)  shall consult with agencies whose programs are
26-18    included in the plan, including the Texas Department of Human
26-19    Services, the Texas Department of Health, and the Texas Workforce
26-20    Commission;
26-21                (3)  may contract for appropriate professional and
26-22    technical assistance; and
26-23                (4)  may use the staff and resources of agencies whose
26-24    programs are included in the plan.
26-25          (b)  The integrated eligibility determination and service
26-26    delivery system shall be developed and implemented to achieve
 27-1    increased quality of and client access to services and savings in
 27-2    the cost of providing administrative and other services and staff
 27-3    resulting from streamlining and eliminating duplication of
 27-4    services. The commission, subject to any spending limitation
 27-5    prescribed in the General Appropriations Act, may use the resulting
 27-6    savings to further develop the integrated system and to provide
 27-7    other health and human services.
 27-8          (c)  The commission shall examine cost-effective methods to
 27-9    address:
27-10                (1)  fraud in the assistance programs; and
27-11                (2)  the error rate in eligibility determination.
27-12          (d)  On receipt by the state of any necessary federal
27-13    approval and subject to the approval of the governor and the
27-14    Legislative Budget Board, the commission may contract for
27-15    implementation of all or part of the plan required by Subsection
27-16    (a) [of this section] if the commission determines that contracting
27-17    may advance the objectives of Subsections (a) and (b) [of this
27-18    section] and meets the criteria set out in the cost-benefit
27-19    analysis described in this subsection.  Before the awarding of a
27-20    contract, the commission shall provide a detailed cost-benefit
27-21    analysis to the governor and[,] the Legislative Budget Board[, and
27-22    the Texas Integrated Enrollment Services Legislative Oversight
27-23    Committee established under Section 531.202, Government Code]. The
27-24    analysis must demonstrate the cost-effectiveness of the plan,
27-25    mechanisms for monitoring performance under the plan, and specific
27-26    improvements to the service delivery system and client access made
 28-1    by the plan. The commission shall make the analysis available to
 28-2    the public. Within 10 days after the release of a request for bids,
 28-3    proposals, offers, or other applicable expressions of interest
 28-4    relating to the development or implementation of the plan required
 28-5    by Subsection (a) [of this section], the commission shall hold a
 28-6    public hearing and receive public comment on the request. [The
 28-7    commission may coordinate with a legislative committee to hold the
 28-8    hearings.]
 28-9          (e)  [Not later than October 1, 1996, the commission shall
28-10    develop a plan to consolidate administrative and service delivery
28-11    functions in addition to the integrated eligibility determination
28-12    and service delivery system in order to minimize duplication. The
28-13    commission shall prepare a report of the plan for submission to the
28-14    governor, the lieutenant governor, the speaker of the house of
28-15    representatives, the comptroller, and the 75th Legislature when it
28-16    convenes.]
28-17          [(f)]  If requested by the commission [Health and Human
28-18    Services Commission], the agencies whose programs are included in
28-19    the plan required by Subsection (a) [of this section] shall
28-20    cooperate with the commission to provide available staff and
28-21    resources that will be subject to the direction of the commission.
28-22          (f) [(g)]  The design, development, and operation of an
28-23    automated data processing system to support the plan required by
28-24    Subsection (a) [of this section] may be financed through the
28-25    issuance of bonds or other obligations under the Texas Public
28-26    Finance Authority Act (Article 601d, Vernon's Texas Civil
 29-1    Statutes).
 29-2          Sec. 531.192.  COORDINATION WITH LEGISLATIVE OVERSIGHT
 29-3    COMMITTEE.  (a)  The commission shall develop and implement the
 29-4    plan required by Section 531.191 in consultation and coordination
 29-5    with the Texas Integrated Enrollment Services Legislative Oversight
 29-6    Committee established by Section 531.202.
 29-7          (b)  Before awarding a contract under Section 531.191(d), the
 29-8    commission shall provide the detailed cost-benefit analysis
 29-9    described by that subsection to the legislative oversight
29-10    committee.  The commission may coordinate with the the legislative
29-11    oversight committee to hold any hearing required under Section
29-12    531.191(d).
29-13          (c)  This section expires September 1, 2002.
29-14          SECTION 3.08.  Subchapter D, Chapter 531, Government Code, as
29-15    added by Chapter 1116, Acts of the 75th Legislature, Regular
29-16    Session, 1997, is redesignated as Subchapter G, Chapter 531,
29-17    Government Code, and the subchapter heading is amended to read as
29-18    follows:
29-19            SUBCHAPTER G [D].  LEGISLATIVE OVERSIGHT FOR TEXAS
29-20                      INTEGRATED ENROLLMENT SERVICES
29-21          SECTION 3.09.  Section 531.203(a), Government Code, is
29-22    amended to read as follows:
29-23          (a)  The committee shall:
29-24                (1)  meet at the call of the presiding officer;
29-25                (2)  receive information about rules proposed or
29-26    adopted by the commission;
 30-1                (3)  review specific recommendations for legislation
 30-2    proposed by the commission; and
 30-3                (4)  hold public hearings concerning the development
 30-4    and implementation of the plan required by Subchapter F [Section
 30-5    9.12(a), Chapter 655, Acts of the 74th Legislature, Regular
 30-6    Session, 1995,] in at least four geographically diverse locations
 30-7    in the state.
 30-8          SECTION 3.10.  Section 2155.144, Government Code, as added by
 30-9    Chapter 1045, Acts of the 75th Legislature, Regular Session, 1997,
30-10    is amended to read as follows:
30-11          Sec. 2155.144.  PROCUREMENTS BY HEALTH AND HUMAN SERVICES
30-12    AGENCIES.  (a)  This section applies only to the Health and Human
30-13    Services Commission and to each health and human services agency.
30-14          (b)  An agency to which this section applies is delegated the
30-15    authority to procure its goods and services, except as provided by
30-16    this section.
30-17          (c)  An agency to which this section applies shall acquire
30-18    goods or services by any procurement method approved by the Health
30-19    and Human Services Commission that provides the best value to the
30-20    agency.  The agency shall document that it considered all relevant
30-21    factors under Subsection (d) in making the acquisition.
30-22          (d)  Subject to Subsection (e), the agency may consider all
30-23    relevant factors in determining the best value, including:
30-24                (1)  any installation costs;
30-25                (2)  the delivery terms;
30-26                (3)  the quality and reliability of the vendor's goods
 31-1    or services;
 31-2                (4)  the extent to which the goods or services meet the
 31-3    agency's needs;
 31-4                (5)  indicators of probable vendor performance under
 31-5    the contract such as past vendor performance, the vendor's
 31-6    financial resources and ability to perform, the vendor's experience
 31-7    and responsibility, and the vendor's ability to provide reliable
 31-8    maintenance agreements;
 31-9                (6)  the impact on the ability of the agency to comply
31-10    with laws and rules relating to historically underutilized
31-11    businesses or relating to the procurement of goods and services
31-12    from persons with disabilities;
31-13                (7)  the total long-term cost to the agency of
31-14    acquiring the vendor's goods or services;
31-15                (8)  the cost of any employee training associated with
31-16    the acquisition;
31-17                (9)  the effect of an acquisition on agency
31-18    productivity;
31-19                (10)  the acquisition price; and
31-20                (11)  any other factor relevant to determining the best
31-21    value for the agency in the context of a particular acquisition.
31-22          (e)  If an agency to which this section applies acquires
31-23    goods or services with a value that exceeds $100,000, the agency
31-24    shall notify the state auditor and shall consult with and receive
31-25    approval from the Health and Human Services Commission before
31-26    considering factors other than price and meeting specifications.
 32-1          (f)  The state auditor may audit the agency's acquisitions of
 32-2    goods and services before or after a warrant is issued to pay for
 32-3    an acquisition.
 32-4          (g)  The agency may adopt rules and procedures for the
 32-5    acquisition of goods and services under this section.
 32-6          (h)  The Health and Human Services Commission shall adopt
 32-7    rules and procedures for the acquisition of goods and services
 32-8    under this section that apply to all health and human services
 32-9    agencies, including rules adopted with the commission's assistance
32-10    that allow an agency to make purchases through a group purchasing
32-11    program except when a better value is available through another
32-12    procurement method.  The rules of the health and human services
32-13    agencies must be consistent with the rules of the Health and Human
32-14    Services Commission.
32-15          (i)  Subject to Section 531.0055(c), the Health and Human
32-16    Services Commission shall develop a single statewide risk analysis
32-17    procedure.  Each health and human services agency shall comply with
32-18    the procedure.  The procedure must provide for:
32-19                (1)  assessing the risk of fraud, abuse, or waste in
32-20    health and human services agencies contractor selection processes,
32-21    contract provisions, and payment and reimbursement rates and
32-22    methods for the different types of goods and services for which
32-23    health and human services agencies contract;
32-24                (2)  identifying contracts that require enhanced
32-25    contract monitoring; and
32-26                (3)  coordinating contract monitoring efforts among
 33-1    health and human services agencies.
 33-2          (j)  Subject to Section 531.0055(c), the Health and Human
 33-3    Services Commission shall publish a contract management handbook
 33-4    that establishes consistent contracting policies and practices to
 33-5    be followed by health and human services agencies.  The handbook
 33-6    may include standard contract provisions and formats for health and
 33-7    human services agencies to incorporate as applicable in their
 33-8    contracts.
 33-9          (k)  Subject to Section 531.0055(c), the Health and Human
33-10    Services Commission, in cooperation with the comptroller, shall
33-11    establish a central contract management database that identifies
33-12    each contract made with a health and human services agency.  The
33-13    commission may use the database to monitor health and human
33-14    services agency contracts, and health and human services agencies
33-15    may use the database in contracting.  A state agency shall send to
33-16    the commission in the manner prescribed by the commission the
33-17    information the agency possesses that the commission requires for
33-18    inclusion in the database.
33-19          (l)  The Health and Human Services Commission shall
33-20    coordinate the procurement practices of all health and human
33-21    services agencies and encourage those agencies to use efficient
33-22    procurement practices such as the use of a group purchasing
33-23    program, combining maintenance contracts into one contract, and
33-24    obtaining prompt payment discounts.  In implementing this duty, the
33-25    Health and Human Services Commission may review the procurement and
33-26    rate-setting procedures of each health and human services agency to
 34-1    ensure that amounts paid to contractors are consistent and
 34-2    represent the best value for the state.  The Health and Human
 34-3    Services Commission may disapprove a procurement and rate-setting
 34-4    procedure of a health and human services agency.  A health and
 34-5    human services agency may not use a procurement or rate-setting
 34-6    procedure that has been disapproved by the commission.  The Health
 34-7    and Human Services Commission may transfer the procurement
 34-8    functions of a health and human services agency to another
 34-9    appropriate state agency if it determines that transferring those
34-10    functions would be advantageous to the state.  Other state agencies
34-11    and institutions with experience in acquiring goods and services
34-12    using the procedures allowed under Subsections (c) and (d) shall on
34-13    request assist the Health and Human Services Commission to perform
34-14    its functions under this section.
34-15          (m)  Subject to Section 531.0055(c), the Health and Human
34-16    Services Commission shall develop and implement a statewide plan to
34-17    ensure that each entity that contracts with a health and human
34-18    services agency and any subcontractor of the entity complies with
34-19    the accessibility requirements of the Americans with Disabilities
34-20    Act of 1990 (42 U.S.C. Section 12101 et seq.).
34-21          (n) [(j)]  To the extent of any conflict, this section
34-22    prevails over any other state law relating to the procurement of
34-23    goods and services except a law relating to contracting with
34-24    historically underutilized businesses or relating to the
34-25    procurement of goods and services from persons with disabilities.
34-26          (o)  The Health and Human Services Commission, with the
 35-1    assistance of the state auditor, shall prepare an annual report
 35-2    that assesses the compliance of each health and human services
 35-3    agency with the requirements imposed under this section and that
 35-4    identifies any material risk to the state or to the clients of the
 35-5    health and human services agency that results from the agency's
 35-6    procurement and contracting practices. The commission shall file
 35-7    the report with the governor, the lieutenant governor, and the
 35-8    speaker of the house of representatives not later than December 15
 35-9    of each year.
35-10          (p) [(k)]  In this section, "health and human services
35-11    agency" has the meaning assigned by Section 531.001.
35-12          SECTION 3.11.  Section 2167.004, Government Code, is amended
35-13    to read as follows:
35-14          Sec. 2167.004.  LEASING SPACE FOR HEALTH AND HUMAN SERVICES
35-15    AGENCIES.  (a)  Notwithstanding any other provision of this chapter
35-16    or of Subchapter C, Chapter 2165, the commission may not lease
35-17    office space to serve the needs of any health and human services
35-18    agency unless the Health and Human Services Commission has approved
35-19    the office space for the agency.
35-20          (b)  The commission may not enter into an emergency lease to
35-21    serve the needs of a health and human services agency  unless the
35-22    emergency lease is entered into under criteria adopted by the
35-23    Health and Human Services Commission in consultation with the
35-24    commission.  The criteria must:
35-25                (1)  encourage advance planning by the health and human
35-26    services agency to facilitate regional management of health and
 36-1    human services agencies by the Health and Human Services Commission
 36-2    under Section 531.0246; and
 36-3                (2)  ensure that the circumstances that require an
 36-4    emergency lease are outside of the control of the agency and that
 36-5    the agency could not reasonably have been expected to foresee the
 36-6    circumstances.
 36-7          (c)  In this section, "health and human services agency" has
 36-8    the meaning assigned by Section 531.001 [means the:]
 36-9                [(1)  Interagency Council on Early Childhood
36-10    Intervention Services;]
36-11                [(2)  Texas Department on Aging;]
36-12                [(3)  Texas Commission on Alcohol and Drug Abuse;]
36-13                [(4)  Texas Commission for the Blind;]
36-14                [(5)  Texas Commission for the Deaf and Hearing
36-15    Impaired;]
36-16                [(6)  Texas Department of Health;]
36-17                [(7)  Texas Department of Human Services;]
36-18                [(8)  Texas Juvenile Probation Commission;]
36-19                [(9)  Texas Department of Mental Health and Mental
36-20    Retardation;]
36-21                [(10)  Texas Rehabilitation Commission; or]
36-22                [(11)  Department of Protective and Regulatory
36-23    Services].
36-24          SECTION 3.12.  (a)  Not later than December 15, 2000, the
36-25    Health and Human Services Commission shall submit a report relating
36-26    to the delivery of mental health and substance abuse services in
 37-1    this state to the governor, the lieutenant governor, the speaker of
 37-2    the house of representatives, and the presiding officer of the
 37-3    Health and Human Services Legislative Oversight Committee.  The
 37-4    report must include:
 37-5                (1)  a comprehensive inventory of all mental health and
 37-6    substance abuse services provided by state agencies;
 37-7                (2)  the populations to which the services are
 37-8    provided;
 37-9                (3)  the amount of state resources expended on the
37-10    services;
37-11                (4)  a comprehensive description of interagency
37-12    coordination and collaborative initiatives related to those
37-13    services; and
37-14                (5)  an assessment of whether any of those services are
37-15    redundant of other services provided by state agencies.
37-16          (b)  A health and human services agency or any other state
37-17    agency that provides mental health or substance abuse services
37-18    shall provide the Health and Human Services Commission any
37-19    information, other than confidential information, requested by the
37-20    commission relating to mental health and substance abuse services
37-21    provided by the agency.
37-22          (c)  This section expires December 31, 2000.
37-23          SECTION 3.13.  (a)  Not later than December 15, 2000, the
37-24    Health and Human Services Commission shall submit a report relating
37-25    to regulatory programs conducted by the Texas Department of Health
37-26    to the governor, the lieutenant governor, the speaker of the house
 38-1    of representatives, and the presiding officer of the Health and
 38-2    Human Services Legislative Oversight Committee.  In preparing the
 38-3    report, the commission must consider whether:
 38-4                (1)  health-related regulatory programs conducted by
 38-5    the Texas Department of Health should be consolidated or
 38-6    restructured;
 38-7                (2)  a new agency, similar to the Texas Department of
 38-8    Licensing and Regulation, should be established to administer all
 38-9    or some of the health-related regulatory programs;
38-10                (3)  a new agency should be established to administer
38-11    regulatory programs related to health-related professions;
38-12                (4)  a new agency should be established to regulate
38-13    health-related facilities;
38-14                (5)  the duties of the Health Professions Council
38-15    should be expanded to encompass all or some of the health-related
38-16    regulatory programs; or
38-17                (6)  health-related regulatory programs administered by
38-18    the Texas Department of Health should continue to be administered
38-19    by the department without consolidation or restructuring.
38-20          (b)  This section expires December 31, 2000.
38-21          SECTION 3.14.  (a)  The Health and Human Services Commission
38-22    shall:
38-23                (1)  assess the benefits of consolidating support
38-24    services provided to health and human services agencies in agency
38-25    headquarters and in regional offices; and
38-26                (2)  develop a proposed plan and schedule for
 39-1    colocating offices and consolidating support services in accordance
 39-2    with Section 531.0246, Government Code, as added by this Act.
 39-3          (b)  Not later than September 1, 2000, the Health and Human
 39-4    Services Commission shall report the results of the assessment,
 39-5    together with the proposed plan and schedule, to the governor, the
 39-6    lieutenant governor, the speaker of the house of representatives,
 39-7    and the presiding officer of the Health and Human Services
 39-8    Legislative Oversight Committee.
 39-9          SECTION 3.15.  The Health and Human Services Commission, the
39-10    General Services Commission, and the Records Management Interagency
39-11    Coordinating Council shall ensure that information about health and
39-12    human services presented in the format required by Section
39-13    531.0312, Government Code, as amended by this Act, is available for
39-14    publication in residential telephone directories to be distributed
39-15    to the public after December 1, 2000. Not later than December 31,
39-16    2000, the Health and Human Services Commission, the General
39-17    Services Commission, and the Records Management Interagency
39-18    Coordinating Council shall each report to the governor, the
39-19    lieutenant governor, the speaker of the house of representatives,
39-20    and the presiding officer of the Health and Human Services
39-21    Legislative Oversight Committee with respect to the implementation
39-22    of this section.
39-23              ARTICLE 4.  INVESTIGATIONS OF ABUSE AND NEGLECT
39-24          SECTION 4.01.  Subchapter B, Chapter 531, Government Code, is
39-25    amended by adding Section 531.053 to read as follows:
39-26          Sec. 531.053.  INVESTIGATIONS OF ABUSE AND NEGLECT; UNIFORM
 40-1    USE OF TERMS.  (a)  Each health and human services agency that may
 40-2    be required to conduct an investigation of abuse, neglect, or
 40-3    exploitation of a client of the agency at a facility operated by or
 40-4    under contract with the agency shall use uniform definitions of
 40-5    "abuse," "neglect," and "exploitation" adopted by the commission
 40-6    under this section.
 40-7          (b)  The definitions of "abuse," "neglect," and
 40-8    "exploitation" adopted under this section must be at least as
 40-9    stringent as any definition that would otherwise be applicable to
40-10    the investigation under law.
40-11          SECTION 4.02.  Section 261.401, Family Code, is amended to
40-12    read as follows:
40-13          Sec. 261.401.  AGENCY INVESTIGATION.  (a)  A state agency
40-14    that operates, licenses, certifies, or registers a facility in
40-15    which children are located shall make a prompt, thorough
40-16    investigation of a report that a child has been or may be abused,
40-17    [or] neglected, or exploited in the facility.  The primary purpose
40-18    of the investigation  shall be the protection of the child.
40-19          (b)  For purposes of an investigation conducted under this
40-20    section, "abuse," "neglect,"  and "exploitation" have the meanings
40-21    assigned by rules of the Health and Human Services Commission under
40-22    Section 531.053, Government Code.  The meanings assigned to "abuse"
40-23    and "neglect" by Section 261.001 do not apply to an investigation
40-24    under this section.
40-25          (c)  A state agency shall adopt rules relating to the
40-26    investigation and resolution of reports received as provided by
 41-1    this subchapter.  The Health and Human Services Commission shall
 41-2    review and approve the rules to ensure that all agencies implement
 41-3    appropriate standards for the conduct of investigations and that
 41-4    uniformity exists among agencies in the investigation and
 41-5    resolution of reports.
 41-6          SECTION 4.03.  Section 48.081, Human Resources Code, is
 41-7    amended to read as follows:
 41-8          Sec. 48.081.  INVESTIGATION OF REPORTS IN MHMR FACILITIES AND
 41-9    IN COMMUNITY CENTERS.  (a)  The department shall receive and
41-10    investigate reports of the abuse, neglect, or exploitation of an
41-11    individual:
41-12                (1)  receiving services in a facility operated by the
41-13    Texas Department of Mental Health and Mental Retardation; or
41-14                (2)  being provided services through a program under
41-15    contract with a facility operated by the Texas Department of Mental
41-16    Health and Mental Retardation.
41-17          (b)  The department and the Texas Department of Mental Health
41-18    and Mental Retardation shall develop joint rules to facilitate
41-19    investigations in state mental health and mental retardation
41-20    facilities.
41-21          (c)  The department shall receive and investigate a report of
41-22    the alleged abuse, neglect, or exploitation of an individual
41-23    receiving services in a community center or from a program
41-24    providing services under contract with a community center.
41-25          (d)  The department shall forward to a state mental health or
41-26    mental retardation facility, a community center, or a program
 42-1    providing mental health or mental retardation services under
 42-2    contract with such a facility or community center:
 42-3                (1)  a copy of any report the department receives
 42-4    relating to alleged or suspected abuse, neglect, or exploitation of
 42-5    an individual receiving services from that facility, community
 42-6    center, or program; and
 42-7                (2)  a copy of the department's investigation findings
 42-8    and report.
 42-9          (e)  The department and the Texas Department of Mental Health
42-10    and Mental Retardation by joint rules shall establish procedures
42-11    for resolving disagreements between the department and the Texas
42-12    Department of Mental Health and Mental Retardation concerning the
42-13    department's investigation findings.  A confirmed investigation
42-14    finding by the department may not be changed by a superintendent of
42-15    a state mental health or mental retardation facility or a director
42-16    of a community center.
42-17          (f)  After completion of the appeals process, the department
42-18    shall refer a complaint relating to an investigation conducted by
42-19    the department under this section to the department's ombudsman
42-20    office for appropriate action.
42-21          (g)  If the department's investigation under this section
42-22    reveals that an elderly or disabled person has been abused by
42-23    another person in a manner that constitutes a criminal offense
42-24    under any law, including Section 22.04, Penal Code, a copy of the
42-25    investigation shall be submitted to the appropriate law enforcement
42-26    agency.
 43-1          (h)  The department by rule may assign priorities to an
 43-2    investigation conducted by the department under this section.  The
 43-3    primary criterion used by the department in assigning a priority
 43-4    must be the risk that a delay in the investigation will impede the
 43-5    collection of evidence.
 43-6          (i)  The department and the Texas Department of Mental Health
 43-7    and Mental Retardation shall jointly develop and implement a single
 43-8    system to track reports and investigations under this section.  To
 43-9    facilitate implementation of the system, the department and the
43-10    Texas Department of Mental Health and Mental Retardation shall use
43-11    appropriate methods of measuring the number and outcome of reports
43-12    and investigations under this section.
43-13          (j)  For purposes of an investigation conducted under this
43-14    section, "abuse," "neglect,"  and "exploitation" have the meanings
43-15    assigned by rules of the Health and Human Services Commission under
43-16    Section 531.053, Government Code.
43-17          (k)  In this section, "community center" has the meaning
43-18    assigned by Section 531.002, Health and Safety Code.
43-19          SECTION 4.04.  (a)  To implement Section 531.053, Government
43-20    Code, as added by this Act, the Health and Human Services
43-21    Commission shall identify each health and human services agency
43-22    that may be required to conduct an investigation described by that
43-23    section and shall convene a working group of representatives of
43-24    those agencies.  The working group shall develop proposed
43-25    definitions of "abuse," "neglect," and "exploitation" for purposes
43-26    of those investigations not later than June 1, 2000.
 44-1          (b)  The Health and Human Services Commission shall by rule
 44-2    adopt uniform definitions of "abuse," "neglect," and "exploitation"
 44-3    not later than August 1, 2000.
 44-4          (c)  A health and human services agency is not required to
 44-5    use the uniform definitions adopted under this section before
 44-6    September 1, 2000.
 44-7                  ARTICLE 5.  GUARDIANSHIP ADVISORY BOARD
 44-8          SECTION 5.01.  Sections 531.122(b), (c), and (d), Government
 44-9    Code, are amended to read as follows:
44-10          (b)  The advisory board is composed of one representative
44-11    from each of the health and human services regions, as defined by
44-12    the commission, three public representatives, and one
44-13    representative of the Department of Protective and Regulatory
44-14    Services.  The representatives of the health and human services
44-15    regions are appointed by a majority vote of the judges of the
44-16    statutory probate courts in each region.  If a health and human
44-17    services region does not contain a statutory probate court, the
44-18    representative shall be appointed by a majority vote of the judges
44-19    of the statutory probate courts in the state.  The public
44-20    representatives and representative of the Department of Protective
44-21    and Regulatory Services are appointed by the Health and Human
44-22    Services Commissioner and the Board of the Department of Protective
44-23    and Regulatory Services, respectively.
44-24          (c)  To be eligible for an appointment under this section, an
44-25    individual must have demonstrated experience working with:
44-26                (1)  a guardianship program;
 45-1                (2)  an organization that advocates on behalf of or in
 45-2    the interest of elderly individuals or individuals with mental
 45-3    illness or mental retardation; or
 45-4                (3)  incapacitated individuals.
 45-5          (d)  A member of the advisory board serves at the pleasure of
 45-6    a majority of the judges of the statutory probate courts that
 45-7    appointed the member or of the Health and Human Services
 45-8    Commissioner and the Board of the Department of Protective and
 45-9    Regulatory Services, as appropriate.
45-10          SECTION 5.02.  Subchapter D, Chapter 531, Government Code, as
45-11    added by Chapter 1033, Acts of the 75th Legislature, Regular
45-12    Session, 1997, is amended by adding Section 531.1235 to read as
45-13    follows:
45-14          Sec. 531.1235.  ADVISORY BOARD; ADDITIONAL DUTIES; STATEWIDE
45-15    GUARDIANSHIP SYSTEM.  (a)  In addition to performing the duties
45-16    described by Section 531.122, the advisory board shall:
45-17                (1)  advise the commission and the Department of
45-18    Protective and Regulatory Services with respect to a statewide
45-19    guardianship program and develop a proposal for a statewide
45-20    guardianship program; and
45-21                (2)  review and comment on the guardianship policies of
45-22    all health and human services agencies and recommend changes to the
45-23    policies the advisory board considers necessary or advisable.
45-24          (b)  The advisory board shall prepare an annual report with
45-25    respect to the recommendations of the advisory board under
45-26    Subsection (a).  The advisory board shall file the report with the
 46-1    commission, the Department of Protective and Regulatory Services,
 46-2    the governor, the lieutenant governor, and the speaker of the house
 46-3    of representatives not later than December 15 of each year.
 46-4          SECTION 5.03.  Section 531.124, Government Code, is amended
 46-5    by adding Subsection (c) to read as follows:
 46-6          (c)  The advisory board shall annually review and comment on
 46-7    the minimum standards adopted under Subsection (a)(1) and the plan
 46-8    implemented under Subsection (a)(2) and shall include its
 46-9    conclusions in the report submitted under Section 531.1235.
46-10          SECTION 5.04.  Not later than October 1, 1999, the Board of
46-11    Protective and Regulatory Services shall appoint the additional
46-12    members of the Guardianship Advisory Board, as required by Section
46-13    531.122, Government Code, as amended by this Act.
46-14         ARTICLE 6.  EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES
46-15          SECTION 6.01.  Subchapter B, Chapter 481, Government Code, is
46-16    amended by adding Section 481.025 to read as follows:
46-17          Sec. 481.025.  EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY
46-18    PROGRAM.  The department is the agency of this state responsible
46-19    for administering the Empowerment Zone and Enterprise Community
46-20    grant program in this state. The department shall cooperate with
46-21    appropriate federal and local agencies as necessary to administer
46-22    the grant program.
46-23          SECTION 6.02.  Effective January 1, 2000, administration of
46-24    the Empowerment Zone and Enterprise Community grant program in this
46-25    state is transferred from the Health and Human Services Commission
46-26    to the Texas Department of Economic Development. The commissioner
 47-1    of health and human services and the governing board of the Texas
 47-2    Department of Economic Development shall enter into a memorandum of
 47-3    understanding as necessary to implement the transfer required by
 47-4    this section.
 47-5                ARTICLE 7.  HEALTH CARE INFORMATION COUNCIL
 47-6          SECTION 7.01.  Section 531.001(4), Government Code, is
 47-7    amended to read as follows:
 47-8                (4)  "Health and human services agencies" includes the:
 47-9                      (A)  Interagency Council on Early Childhood
47-10    Intervention [Services];
47-11                      (B)  Texas Department on Aging;
47-12                      (C)  Texas Commission on Alcohol and Drug Abuse;
47-13                      (D)  Texas Commission for the Blind;
47-14                      (E)  Texas Commission for the Deaf and Hard of
47-15    Hearing;
47-16                      (F)  Texas Department of Health;
47-17                      (G)  Texas Department of Human Services;
47-18                      (H)  Texas Juvenile Probation Commission;
47-19                      (I)  Texas Department of Mental Health and Mental
47-20    Retardation;
47-21                      (J)  Texas Rehabilitation Commission; [and]
47-22                      (K)  Department of Protective and Regulatory
47-23    Services; and
47-24                      (L)  Texas Health Care Information Council.
47-25          SECTION 7.02.  Section 108.002(4), Health and Safety Code, is
47-26    amended to read as follows:
 48-1                (4)  "Data" means information collected under Section
 48-2    108.0065 or 108.009 in the form initially received.
 48-3          SECTION 7.03.  Chapter 108, Health and Safety Code, is
 48-4    amended by adding Section 108.0065 to read as follows:
 48-5          Sec. 108.0065.  POWERS AND DUTIES OF COUNCIL RELATING TO
 48-6    MEDICAID MANAGED CARE.  (a)  In this section:
 48-7                (1)  "Commission" means the Health and Human Services
 48-8    Commission.
 48-9                (2)  "Medicaid managed care organization" means a
48-10    managed care organization, as defined by Section 533.001,
48-11    Government Code, that is contracting with the commission to
48-12    implement the Medicaid managed care program under Chapter 533,
48-13    Government Code.
48-14          (b)  The council, in consultation with the commission, shall
48-15    collect data under this chapter with respect to Medicaid managed
48-16    care organizations. The council may coordinate the collection of
48-17    the data with the collection of data for health benefit plan
48-18    providers, but may collect data in addition to the data otherwise
48-19    required of health benefit plan providers.
48-20          (c)  Each Medicaid managed care organization shall provide
48-21    the data required by the council in the form required by the
48-22    council.
48-23          (d)  Dissemination of data collected under this section is
48-24    subject to Sections 108.010, 108.011, 108.012, 108.013, 108.014,
48-25    and 108.0141.
48-26          (e)  The council, in consultation with the commission, shall
 49-1    analyze the data collected in accordance with this section and
 49-2    shall use the data to:
 49-3                (1)  evaluate the effectiveness and efficiency of the
 49-4    Medicaid managed care system;
 49-5                (2)  determine the extent to which Medicaid managed
 49-6    care does or does not serve the needs of Medicaid recipients in
 49-7    this state; and
 49-8                (3)  assess the cost-effectiveness of the Medicaid
 49-9    managed care system in comparison to the fee-for-service system,
49-10    considering any improvement in the quality of care provided.
49-11          (f)  Not later than December 15 of each even-numbered year,
49-12    the council shall report to the commission, the governor, the
49-13    lieutenant governor, and the speaker of the house of
49-14    representatives with respect to:
49-15                (1)  the council's conclusions under Subsection (e) and
49-16    any improvement made in the delivery of services under the Medicaid
49-17    managed care system since the date of the council's last report
49-18    under this section;
49-19                (2)  recommendations for implementation by the state
49-20    agencies operating the Medicaid managed care system for improvement
49-21    to the Medicaid managed care system; and
49-22                (3)  any recommendations for legislation.
49-23          (g)  The report made under Subsection (f) may be consolidated
49-24    with any report made under Section 108.006(a)(9).
49-25          SECTION 7.04.  Not later than December 15, 1999, the Texas
49-26    Health Care Information Council, in consultation with the Health
 50-1    and Human Services Commission and the presiding officer of the
 50-2    Health and Human Services Legislative Oversight Committee, shall
 50-3    develop a plan for implementing the council's duties under Section
 50-4    108.0065, Health and Safety Code, as added by this Act.
 50-5                     ARTICLE 8.  LEGISLATIVE OVERSIGHT
 50-6          SECTION 8.01.  Chapter 531, Government Code, is amended by
 50-7    adding Subchapter E to read as follows:
 50-8      SUBCHAPTER E.  HEALTH AND HUMAN SERVICES LEGISLATIVE OVERSIGHT
 50-9          Sec. 531.171.  DEFINITION.  In this subchapter, "committee"
50-10    means the Health and Human Services Legislative Oversight
50-11    Committee.
50-12          Sec. 531.172.  COMPOSITION OF COMMITTEE; PRESIDING OFFICER.
50-13    (a)  The committee is composed of:
50-14                (1)  five persons appointed by the lieutenant governor
50-15    as follows:
50-16                      (A)  four persons who are members of the senate
50-17    or the lieutenant governor; and
50-18                      (B)  one member of the public; and
50-19                (2)  five persons appointed by the speaker of the house
50-20    of representatives as follows:
50-21                      (A)  four members of the house of
50-22    representatives, one of whom may be the speaker of the house of
50-23    representatives; and
50-24                      (B)  one member of the public.
50-25          (b)  A member of the committee serves at the pleasure of the
50-26    appointing official.
 51-1          (c)  The lieutenant governor and the speaker of the house of
 51-2    representatives shall designate, from the committee members, the
 51-3    presiding officer of the committee on an alternating basis.  The
 51-4    presiding officer shall serve in that capacity for a two-year
 51-5    period expiring February 1 of each odd-numbered year.
 51-6          Sec. 531.173.  COMMITTEE POWERS AND DUTIES.  (a)  The
 51-7    committee shall:
 51-8                (1)  meet at the call of the presiding officer;
 51-9                (2)  monitor the commission's implementation of Section
51-10    531.0055 and the commission's other duties in consolidating and
51-11    integrating health and human services to ensure implementation
51-12    consistent with law;
51-13                (3)  recommend, as needed, adjustments to the
51-14    implementation of Section 531.0055 and the commission's other
51-15    duties in consolidating and integrating health and human services;
51-16                (4)  collect, analyze, and report information relating
51-17    to the health and human services system in this state, including
51-18    information relating to statewide health and human services needs;
51-19    and
51-20                (5)  hold meetings and take public testimony in
51-21    different regions of the state to ensure input from the public and
51-22    appropriate advocacy groups in the implementation of Section
51-23    531.0055 and the commission's other duties in consolidating and
51-24    integrating health and human services.
51-25          (b)  At the committee's request, the commission shall
51-26    provide:
 52-1                (1)  staff and resources to support the committee,
 52-2    including sufficient resources to analyze the committee's
 52-3    recommendations with respect to the health and human services
 52-4    system and to propose additional changes consistent with the
 52-5    objectives and directives of the committee;
 52-6                (2)  information as requested by the committee; and
 52-7                (3)  an annual plan that addresses the topics
 52-8    identified by the committee.
 52-9          (c)  At the committee's request, a health and human services
52-10    agency shall:
52-11                (1)  provide information to the committee relating to
52-12    the health and human services system; and
52-13                (2)  report on agency progress in implementing
52-14    statutory directives identified by the committee and the directives
52-15    of the commission.
52-16          (d)  The committee may also use staff of standing committees
52-17    in the senate and the house of representatives with appropriate
52-18    jurisdiction, the Department of Information Resources, the state
52-19    auditor, the Texas Legislative Council, and the Legislative Budget
52-20    Board in carrying out its responsibilities.
52-21          Sec. 531.174.  REPORT.  (a)  The committee shall report to
52-22    the governor, the lieutenant governor, and the speaker of the house
52-23    of representatives not later than December 31 of each year.
52-24          (b)  The report must include:
52-25                (1)  identification of significant problems in the
52-26    implementation of Section 531.0055 and the commission's other
 53-1    duties in consolidating and integrating health and human services,
 53-2    with recommendations for action by the commissioner;
 53-3                (2)  the status of the implementation of Section
 53-4    531.0055 and the commission's other duties in consolidating and
 53-5    integrating health and human services; and
 53-6                (3)  recommendations for legislative action, including
 53-7    legislation to further consolidate health and human services agency
 53-8    functions as appropriate.
 53-9          Sec. 531.175.  DURATION OF COMMITTEE.  The committee is
53-10    abolished September 1, 2001.
53-11              ARTICLE 9.  REPEALER; EFFECTIVE DATE; EMERGENCY
53-12          SECTION 9.01.  The following laws are repealed:
53-13                (1)  Section 441.053(k), Government Code; and
53-14                (2)  Section 531.0272, Government Code.
53-15          SECTION 9.02.  This Act takes effect September 1, 1999.
53-16          SECTION 9.03.  The importance of this legislation and the
53-17    crowded condition of the calendars in both houses create an
53-18    emergency and an imperative public necessity that the
53-19    constitutional rule requiring bills to be read on three several
53-20    days in each house be suspended, and this rule is hereby suspended.