AN ACT
 1-1     relating to the provision of certain long-term care services, to
 1-2     the continuation and functions of the Texas Department on Aging,
 1-3     and to the eventual consolidation of the Texas Department of Human
 1-4     Services and the Texas Department on Aging into a new agency on
 1-5     aging and disability services.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7       ARTICLE 1.  LONG-TERM CARE SERVICES; TEXAS DEPARTMENT ON AGING
 1-8           SECTION 1.01.  Subchapter B, Chapter 531, Government Code, is
 1-9     amended by adding Section 531.02481 to read as follows:
1-10           Sec. 531.02481.  COMMUNITY-BASED SUPPORT AND SERVICE DELIVERY
1-11     SYSTEMS FOR LONG-TERM CARE SERVICES.  (a)  The commission, the
1-12     Texas Department of Human Services, and the Texas Department on
1-13     Aging shall assist communities in this state in developing
1-14     comprehensive, community-based support and service delivery systems
1-15     for long-term care services.  At the request of a community, the
1-16     commission shall provide resources and assistance to the community
1-17     to enable the community to:
1-18                 (1)  identify and overcome institutional barriers to
1-19     developing more comprehensive community support systems, including
1-20     barriers that result from the policies and procedures of state
1-21     health and human services agencies;
1-22                 (2)  develop a system of blended funds, consistent with
1-23     the requirements of federal law and the General Appropriations Act,
1-24     to allow the community to customize services to fit individual
 2-1     community needs; and
 2-2                 (3)  develop a local system of access and assistance to
 2-3     aid clients in accessing the full range of long-term care services.
 2-4           (b)  At the request of the commission, a health and human
 2-5     services agency shall provide resources and assistance to a
 2-6     community as necessary to perform the commission's duties under
 2-7     Subsection (a).
 2-8           (c)  A health and human services agency that receives or
 2-9     develops a proposal for a community initiative shall submit the
2-10     initiative to the commission for review and approval.  The
2-11     commission shall review the initiative to ensure that the
2-12     initiative is consistent with other similar programs offered in
2-13     communities and does not duplicate other services provided in the
2-14     community.
2-15           (d)  In implementing this section, the commission shall
2-16     consider models used in other service delivery systems.
2-17           (e)  The commissioner shall assure the maintenance of no
2-18     fewer than 28 area agencies on aging in order to assure the
2-19     continuation of a local system of access and assistance that is
2-20     sensitive to the aging population.
2-21           (f)  A community-based organization or a combination of
2-22     organizations may make a proposal under this section.  A
2-23     community-based organization includes:
2-24                 (1)  an area agency on aging;
2-25                 (2)  an independent living center;
2-26                 (3)  a municipality, county, or other local government;
 3-1                 (4)  a nonprofit or for-profit organization; or
 3-2                 (5)  a community mental health and mental retardation
 3-3     center.
 3-4           SECTION 1.02.  Chapter 22, Human Resources Code, is amended
 3-5     by adding Section 22.0011 to read as follows:
 3-6           Sec. 22.0011.  DEFINITION.  In this chapter, except in
 3-7     Section 22.032, "long-term care services" means the provision of
 3-8     personal care and assistance related to health and social services
 3-9     given episodically or over a sustained period to assist individuals
3-10     of all ages and their families to achieve the highest level of
3-11     functioning possible, regardless of the setting in which the
3-12     assistance is given.
3-13           SECTION 1.03.  Section 22.018, Human Resources Code, is
3-14     amended to read as follows:
3-15           Sec. 22.018.  COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE
3-16     HEARINGS [DIVISION].  (a)  The department and the chief
3-17     administrative law judge of the State Office of Administrative
3-18     Hearings shall adopt a memorandum of understanding under which the
3-19     State Office of Administrative Hearings, on behalf of the
3-20     department, conducts all contested case hearings authorized or
3-21     required by law to be conducted by the department under the
3-22     administrative procedure law, [shall establish and maintain a
3-23     hearings division that is separate from the legal division to
3-24     administer each hearing held under] Chapter 2001, Government Code.
3-25           (b)  The memorandum of understanding shall require the chief
3-26     administrative law judge, the department, and the commissioner to
 4-1     cooperate in connection with a contested case hearing and may
 4-2     authorize the State Office of Administrative Hearings to perform
 4-3     any administrative act, including giving of notice, that is
 4-4     required to be performed by the department or commissioner [Neither
 4-5     the department nor the department's legal division may directly or
 4-6     indirectly influence a decision or the decision-making process of
 4-7     the hearings division].
 4-8           (c)  The memorandum of understanding shall address whether
 4-9     the administrative law judge who conducts a contested case hearing
4-10     for the State Office of Administrative Hearings on behalf of the
4-11     department shall:
4-12                 (1)  enter the final decision in the case after
4-13     completion of the hearing; or
4-14                 (2)  propose a decision to the department or the
4-15     commissioner for final consideration.
4-16           (d)  The department by interagency contract shall reimburse
4-17     the State Office of Administrative Hearings for the costs incurred
4-18     in conducting contested case hearings for the department.  The
4-19     department may pay an hourly fee for the costs of conducting those
4-20     hearings or a fixed annual fee negotiated biennially by the
4-21     department and the State Office of Administrative Hearings to
4-22     coincide with the department's legislative appropriations request.
4-23           (e)  A reference in law to the hearings division of the
4-24     department is considered to be a reference to the State Office of
4-25     Administrative Hearings when used in relation to a contested case
4-26     hearing under the administrative procedure law, Chapter 2001,
 5-1     Government Code.
 5-2           SECTION 1.04.  Chapter 22, Human Resources Code, is amended
 5-3     by adding Sections 22.034 and 22.035 to read as follows:
 5-4           Sec. 22.034.  WORK GROUP ON LONG-TERM CARE SERVICES.  (a)  In
 5-5     this section, "long-term care services" includes community care
 5-6     services and support, and services provided by nursing facilities,
 5-7     assisted living facilities, group homes, intermediate care
 5-8     facilities for persons with mental retardation, and other
 5-9     institutional care facilities.
5-10           (b)  A work group is created to assist the department and the
5-11     Texas Department of Mental Health and Mental Retardation in
5-12     studying coordination of planning and services between the two
5-13     agencies in providing long-term care services.
5-14           (c)  The work group is composed of the following 20 members:
5-15                 (1)  two representatives of the department, appointed
5-16     by the commissioner;
5-17                 (2)  two representatives of the Texas Department of
5-18     Mental Health and Mental Retardation, appointed by the commissioner
5-19     of mental health and mental retardation;
5-20                 (3)  two representatives of the Texas Department on
5-21     Aging, appointed by the executive director of aging;
5-22                 (4)  one representative of the Health and Human
5-23     Services Commission, appointed by the commissioner of health and
5-24     human services;
5-25                 (5)  three consumers of long-term care services,
5-26     jointly appointed by the commissioner and the commissioner of
 6-1     mental health and mental retardation;
 6-2                 (6)  two advocates for elderly individuals, appointed
 6-3     by the commissioner;
 6-4                 (7)  two advocates for persons with disabilities,
 6-5     appointed by the commissioner;
 6-6                 (8)  two advocates for people with mental retardation
 6-7     and mental illness, appointed by the commissioner of mental health
 6-8     and mental retardation; and
 6-9                 (9)  four long-term care services providers, jointly
6-10     appointed by the commissioner and the commissioner of mental health
6-11     and mental retardation, representative of the broadest array of
6-12     settings listed in Subsection (a).
6-13           (d)  A member of the work group serves at the will of the
6-14     appointing agency.
6-15           (e)  The members of the work group shall elect a presiding
6-16     officer and any other necessary officers.
6-17           (f)  The work group shall meet at the call of the presiding
6-18     officer.
6-19           (g)  A member of the work group receives no additional
6-20     compensation for serving on the work group.  Persons serving on the
6-21     work group shall be reimbursed for travel and other expenses
6-22     necessary for participation as provided in the General
6-23     Appropriations Act.
6-24           (h)  The work group shall study and report on coordination of
6-25     planning and services between the department and the Texas
6-26     Department of Mental Health and Mental Retardation in providing
 7-1     long-term care services.  As part of its study and report on
 7-2     coordination, the work group shall also study and make
 7-3     recommendations on the development of consistent and standardized:
 7-4                 (1)  regulation of residential and community long-term
 7-5     care services;
 7-6                 (2)  rate-setting processes for long-term care
 7-7     providers and services;
 7-8                 (3)  contractor monitoring for long-term care providers
 7-9     and services;
7-10                 (4)  intake, assessment, referral, and coordinated case
7-11     management procedures for long-term care services; and
7-12                 (5)  administration of the In-Home and Family Support
7-13     Program operated by the department and the Texas Department of
7-14     Mental Health and Mental Retardation.
7-15           (i)  The work group shall report annually to the
7-16     commissioner, the commissioner of health and human services, and
7-17     the commissioner of mental health and mental retardation.  The
7-18     report must include any recommendations on subjects the work group
7-19     has studied.
7-20           (j)  The work group is not subject to Chapter 2110,
7-21     Government Code.
7-22           Sec. 22.035.  WORK GROUP ON CHILDREN'S LONG-TERM CARE AND
7-23     HEALTH PROGRAMS.  (a)  A work group is created to assist the
7-24     commissioner of health and human services, the department, and the
7-25     Texas Department of Health in the creation of a system for families
7-26     and children to administer long-term care and health programs for
 8-1     children.
 8-2           (b)  The commissioner of health and human services shall
 8-3     appoint the members of the work group, which must include the
 8-4     following:
 8-5                 (1)  a consumer of long-term care and health programs
 8-6     for children;
 8-7                 (2)  a relative of a consumer of long-term care and
 8-8     health programs for children;
 8-9                 (3)  a representative from an organization that is an
8-10     advocate for consumers of long-term care and health programs for
8-11     children;
8-12                 (4)  a representative from a state agency that provides
8-13     long-term care and health programs for children;
8-14                 (5)  a person from a private entity that provides
8-15     long-term care and health programs for children; and
8-16                 (6)  a person with expertise in the availability of
8-17     funding and the application of funding formulas for children's
8-18     long-term care and health services.
8-19           (c)  The department and the Texas Department of Health shall
8-20     equally provide administrative support, including staff, to the
8-21     work group.
8-22           (d)  A member of the work group serves at the will of the
8-23     commissioner of health and human services.
8-24           (e)  The commissioner of health and human services shall
8-25     appoint a member of the work group to serve as a presiding officer.
8-26           (f)  The work group shall meet at the call of the presiding
 9-1     officer.
 9-2           (g)  A member of the work group receives no additional
 9-3     compensation for serving on the work group.  Persons serving on the
 9-4     work group shall be reimbursed for travel and other expenses
 9-5     necessary for participation as provided in the General
 9-6     Appropriations Act.
 9-7           (h)  The work group shall study and make recommendations in
 9-8     the following areas:
 9-9                 (1)  access of a child or a child's family to services
9-10     with a single case manager;
9-11                 (2)  the transition needs of children who reach an age
9-12     at which they are no longer eligible for services at the Texas
9-13     Department of Health;
9-14                 (3)  the blending of funds, including case management
9-15     funding, for children needing long-term care and health services;
9-16                 (4)  collaboration and coordination of children's
9-17     services between the department, the Texas Department of Health,
9-18     and any other agency determined to be applicable by the work group;
9-19     and
9-20                 (5)  budgeting and the use of funds appropriated for
9-21     children's long-term care services and children's health services
9-22     from the Comprehensive Settlement Agreement and Release filed in
9-23     the case styled The State of Texas v. The American Tobacco Co., et
9-24     al., No. 5-96CV-91, in the United States District Court, Eastern
9-25     District of Texas.
9-26           (i)  Not later than September 1 of each even-numbered year,
 10-1    the work group shall report on its findings and recommendations to
 10-2    the commissioner of health and human services.
 10-3          (j)  After evaluating and considering recommendations
 10-4    reported under Subsection (i), the Health and Human Services
 10-5    Commission shall adopt rules to implement guidelines for providing
 10-6    long-term care and health services to children.
 10-7          (k)  The work group is not subject to Chapter 2110,
 10-8    Government Code.
 10-9          SECTION 1.05.  Chapter 113, Human Resources Code, is
10-10    transferred to Chapter 22, Human Resources Code, is redesignated as
10-11    Section 22.036, Human Resources Code, and is amended to read as
10-12    follows:
10-13          [CHAPTER 113.  PROGRAMS FOR DEAF-BLIND MULTIHANDICAPPED
10-14                      INDIVIDUALS AND THEIR PARENTS]
10-15          Sec. 22.036 [113.001].  PROGRAMS FOR DEAF-BLIND
10-16    MULTIHANDICAPPED INDIVIDUALS AND THEIR PARENTS.  (a)  The
10-17    department [commission] shall establish programs to serve
10-18    deaf-blind multihandicapped individuals by helping them attain
10-19    self-sufficiency and independent living.
10-20          (b)  The department [commission] shall establish a program of
10-21    parental counseling for the parents of deaf-blind multihandicapped
10-22    individuals.  The counseling program may be provided on an
10-23    individual or group basis and must include programs, activities,
10-24    and services necessary to foster greater understanding and to
10-25    improve relationships among professionals, parents, and deaf-blind
10-26    multihandicapped individuals.
 11-1          (c)  The department [commission] shall establish a summer
 11-2    outdoor training program for deaf-blind multihandicapped
 11-3    individuals.  The outdoor training program must be designed to help
 11-4    meet the unique needs of deaf-blind multihandicapped individuals
 11-5    for the purpose of broadening their educational experiences and
 11-6    improving their ability to function more independently.
 11-7          (d)  The department [commission] shall establish regulations
 11-8    for implementing and administering the programs.
 11-9          (e)  The department [commission] may contract for services or
11-10    goods with private or public entities for purposes of this section.
11-11          (f)  From information collected from the programs, the
11-12    department [commission] shall determine the need for related future
11-13    services and the most efficient and effective method of delivering
11-14    the future services.
11-15          SECTION 1.06.  Subsection (t), Section 32.024, Human
11-16    Resources Code, is amended to read as follows:
11-17          (t)  The department by rule shall require a physician,
11-18    nursing facility, health care provider, or other responsible party
11-19    to obtain authorization from the department or a person authorized
11-20    to act on behalf of the department before an ambulance is used to
11-21    transport a recipient of medical assistance under this chapter in
11-22    circumstances not involving an emergency.  The rules must provide
11-23    that:
11-24                (1)  except as provided by Subdivision (3), a request
11-25    for authorization must be evaluated based on the recipient's
11-26    medical needs and may be granted for a length of time appropriate
 12-1    to the recipient's medical condition;
 12-2                (2)  except as provided by Subdivision (3), a response
 12-3    to a request for authorization must be made not later than 48 hours
 12-4    after receipt of the request; [and]
 12-5                (3)  a request for authorization must be immediately
 12-6    granted and must be effective for a period of 180 days from the
 12-7    date of issuance if the request includes a written statement from a
 12-8    physician that:
 12-9                      (A)  states that alternative means of
12-10    transporting the recipient are contraindicated; and
12-11                      (B)  is dated not earlier than the 60th day
12-12    before the date on which the request for authorization is made; and
12-13                (4)  a person denied payment for services rendered
12-14    because of failure to obtain prior authorization or because a
12-15    request for prior authorization was denied is entitled to appeal
12-16    the denial of payment to the department.
12-17          SECTION 1.07.  Section 101.001, Human Resources Code, is
12-18    amended to read as follows:
12-19          Sec. 101.001.  DEPARTMENT AND BOARD ON AGING.  (a)  The Texas
12-20    Department on Aging is created.
12-21          (b)  The Texas Board on Aging is created as the governing
12-22    body of the Texas Department on Aging.  The board is composed of
12-23    nine members appointed by the governor with the advice and consent
12-24    of the senate.  Appointments to the board shall be made without
12-25    regard to the race, color, handicap, sex, religion, age, or
12-26    national origin of the appointees.  To be eligible for appointment
 13-1    to the board, a person must have demonstrated an interest in and
 13-2    knowledge of the problems of aging and must be a member of the
 13-3    general public.  The members must include the following:
 13-4                (1)  an expert in gerontology;
 13-5                (2)  a medical professional;
 13-6                (3)  a consumer advocate; and
 13-7                (4)  three members of the general public.
 13-8          (c)  A person is not eligible for appointment as a public
 13-9    member if the person or the person's spouse:
13-10                (1)  is employed by or participates in the management
13-11    of a business entity or other organization regulated by or
13-12    receiving funds from the department;
13-13                (2)  owns, controls, or has, directly or indirectly,
13-14    more than a 10 percent interest in a business entity or other
13-15    organization regulated by or receiving funds from the department;
13-16    or
13-17                (3)  uses or receives a substantial amount of tangible
13-18    goods, services, or funds from the department.
13-19          (d) [(c)]  Members of the board serve for staggered terms of
13-20    six years with the terms of three members expiring on February 1 of
13-21    each odd-numbered year.  A member may be reappointed to the board.
13-22          (e) [(d)]  Members of the board may receive the compensatory
13-23    per diem authorized by the General Appropriations Act for each day
13-24    spent engaged in the performance of their official duties.  Board
13-25    members are entitled to reimbursement for actual travel expenses
13-26    incurred in the performance of their duties.
 14-1          (f) [(e)  The board shall hold meetings quarterly and may
 14-2    hold other meetings called by the chairman.]  The board shall
 14-3    develop and implement policies that [will] provide the public with
 14-4    a reasonable opportunity to appear before the board and to speak on
 14-5    any issue under the jurisdiction of the department [board].
 14-6          SECTION 1.08.  Section 101.0011, Human Resources Code, is
 14-7    amended to read as follows:
 14-8          Sec. 101.0011.  REMOVAL OF BOARD MEMBERS.  (a)  It is a
 14-9    ground for removal from the board that [if] a member:
14-10                (1)  does not have at the time of taking office
14-11    [appointment] the qualifications required by [Subsection (b) of]
14-12    Section 101.001(b) [101.001 of this code for appointment to the
14-13    board];
14-14                (2)  does not maintain during [the] service on the
14-15    board the qualifications required by [Subsection (b) of] Section
14-16    101.001(b) [101.001 for appointment to the board];
14-17                (3)  is ineligible for membership under [violates a
14-18    prohibition established by] Section 101.0031 [of this code];
14-19                (4)  cannot, because of illness or disability, [is
14-20    unable to] discharge the member's [his] duties for a substantial
14-21    part [portion] of the member's term [for which he was appointed
14-22    because of illness or disability]; or
14-23                (5)  is absent from more than half of the regularly
14-24    scheduled board meetings that the member is eligible to attend
14-25    during a [each] calendar year without an excuse approved[, except
14-26    when the absence is excused] by a majority vote of the board.
 15-1          (b)  The validity of an action of the board is not affected
 15-2    by the fact that it is [was] taken when a ground for removal of a
 15-3    board member exists [of the board existed].
 15-4          (c)  If the executive director has knowledge that a potential
 15-5    ground for removal exists, the executive director [he] shall notify
 15-6    the presiding officer [chairman] of the board of the potential
 15-7    ground.  The presiding officer [chairman of the board] shall then
 15-8    notify the governor and the attorney general that a potential
 15-9    ground for removal exists.  If the potential ground for removal
15-10    involves the presiding officer, the executive director shall notify
15-11    the next highest ranking officer of the board, who shall then
15-12    notify the governor and the attorney general that a potential
15-13    ground for removal exists.
15-14          SECTION 1.09.  Subchapter A, Chapter 101, Human Resources
15-15    Code, is amended by adding Section 101.0012 to read as follows:
15-16          Sec. 101.0012.  TRAINING PROGRAM FOR BOARD MEMBERS.  (a)  A
15-17    person who is appointed to and qualifies for office as a member of
15-18    the board may not vote, deliberate, or be counted as a member in
15-19    attendance at a meeting of the board until the person completes a
15-20    training program that complies with this section.
15-21          (b)  The training program must provide the person with
15-22    information regarding:
15-23                (1)  the legislation that created the department and
15-24    the board;
15-25                (2)  the federal Older Americans Act of 1965 (42 U.S.C.
15-26    Section 3001 et seq.) and its subsequent amendments;
 16-1                (3)  the programs operated by the department;
 16-2                (4)  the role and functions of the department;
 16-3                (5)  the rules of the department, with an emphasis on
 16-4    the rules that relate to disciplinary and investigatory authority;
 16-5                (6)  the current budget for the department;
 16-6                (7)  the results of the most recent formal audit of the
 16-7    department;
 16-8                (8)  a history of funding sources for long-term care
 16-9    services;
16-10                (9)  the independent living philosophy;
16-11                (10)  the requirements of:
16-12                      (A)  the open meetings law, Chapter 551,
16-13    Government Code;
16-14                      (B)  the public information law, Chapter 552,
16-15    Government Code;
16-16                      (C)  the administrative procedure law, Chapter
16-17    2001, Government Code; and
16-18                      (D)  other laws relating to public officials,
16-19    including conflict-of-interest laws; and
16-20                (11)  any applicable ethics policies adopted by the
16-21    department or the Texas Ethics Commission.
16-22          (c)  A person appointed to the board is entitled to
16-23    reimbursement, as provided by the General Appropriations Act, for
16-24    the travel expenses incurred in attending the training program
16-25    regardless of whether the attendance at the program occurs before
16-26    or after the person qualifies for office.
 17-1          (d)  In this section, "independent living philosophy" means
 17-2    control over one's life based on the choice of acceptable options
 17-3    that minimize reliance on others in making a decision or in
 17-4    performing everyday activities.  The term includes:
 17-5                (1)  managing one's affairs;
 17-6                (2)  participating in day-to-day life in the community;
 17-7                (3)  fulfilling a range of social roles; and
 17-8                (4)  making decisions that lead to self-determination
 17-9    and the minimization of physical and psychological dependence upon
17-10    others.
17-11          SECTION 1.10.  Section 101.002, Human Resources Code, is
17-12    amended to read as follows:
17-13          Sec. 101.002.  SUNSET PROVISION.  The Texas Department on
17-14    Aging is subject to Chapter 325, Government Code (Texas Sunset
17-15    Act).  Unless continued in existence as provided by that chapter,
17-16    the department is abolished and this chapter expires September 1,
17-17    2004 [1999].
17-18          SECTION 1.11.  Section 101.003, Human Resources Code, is
17-19    amended to read as follows:
17-20          Sec. 101.003.  PRESIDING OFFICER [CHAIRMAN OF THE BOARD].
17-21    (a)  The governor shall designate a presiding officer [chairman] of
17-22    the board from among the members.
17-23          (b)  A member holds the position of presiding officer
17-24    [chairman] at the pleasure of the governor.
17-25          SECTION 1.12.  Section 101.0031, Human Resources Code, is
17-26    amended to read as follows:
 18-1          Sec. 101.0031.  RESTRICTIONS ON BOARD MEMBERSHIP AND
 18-2    EMPLOYMENT.  (a)  In this section, "Texas trade association" means
 18-3    a cooperative and voluntarily joined association of business or
 18-4    professional competitors in this state designed to assist its
 18-5    members and its industry or profession in dealing with mutual
 18-6    business or professional problems and in promoting their common
 18-7    interest.
 18-8          (b)  A person [An officer, employee, or paid consultant of an
 18-9    association that has as its primary interest the provision of
18-10    services to or other matters relating to the aged] may not be a
18-11    member [or employee] of the board and may not be a department
18-12    employee employed in a "bona fide executive, administrative, or
18-13    professional capacity," as that phrase is used for purposes of
18-14    establishing an exemption to the overtime provisions of the federal
18-15    Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.)
18-16    and its subsequent amendments, if:
18-17                (1)  the person is[, nor may a person who cohabits with
18-18    or is the spouse of] an officer, [managerial] employee, or paid
18-19    consultant of a Texas trade [such an] association in the field of
18-20    aging; or
18-21                (2)  the person's spouse is an officer, manager, or
18-22    paid consultant of a Texas trade association in the field of aging
18-23    [be a member of the board or an employee of the board grade 17 or
18-24    over, including exempt employees, according to the position
18-25    classification schedule under the General Appropriations Act].
18-26          (c) [(b)]  A person [who is required to register as a
 19-1    lobbyist under Chapter 305, Government Code, by virtue of his
 19-2    activities on behalf of a provider of services to the aged,] may
 19-3    not be [serve as] a member of the board or act as the general
 19-4    counsel to the board or the department if the person is required to
 19-5    register as a lobbyist under Chapter 305, Government Code, because
 19-6    of the person's activities for compensation on behalf of a
 19-7    profession related to the operation of the department.
 19-8          SECTION 1.13.  Subsection (d), Section 101.0061, Human
 19-9    Resources Code, is amended to read as follows:
19-10          (d)  The executive director or the executive director's
19-11    designee [board] shall provide to [its] members of the board and to
19-12    the agency [department] employees, as often as [is] necessary,
19-13    information regarding the requirements for office or employment
19-14    [their qualifications] under this chapter, including information
19-15    regarding a person's [and their] responsibilities under applicable
19-16    laws relating to standards of conduct for state officers or
19-17    employees.
19-18          SECTION 1.14.  Section 101.022, Human Resources Code, is
19-19    amended to read as follows:
19-20          Sec. 101.022.  GENERAL FUNCTIONS OF DEPARTMENT.  (a)  The
19-21    department shall provide expertise and advice to state agencies and
19-22    the legislature and other elected officials on aging issues,
19-23    including recommendations to  meet the needs of this state's
19-24    elderly population.
19-25          (b)  The department shall develop and strengthen the services
19-26    available for the aged in the state by coordinating services
 20-1    provided by governmental and private agencies and facilities.
 20-2          (c) [(b)]  The department shall extend and expand services
 20-3    for the aged by coordinating the interest and efforts of local
 20-4    communities in studying the problems of the aged citizens of this
 20-5    state.
 20-6          (d) [(c)]  The department shall encourage, promote, and aid
 20-7    in the establishment of area agencies on aging for the development
 20-8    of programs and services on a local level that improve the living
 20-9    conditions of the aged by enabling them to more fully enjoy and
20-10    participate in family and community life.
20-11          (e) [(d)]  The department shall sponsor voluntary community
20-12    rehabilitation and recreational facilities to improve the general
20-13    welfare of the aged.
20-14          (f) [(e)]  The department, through the executive director of
20-15    aging, shall cooperate with state and federal agencies and other
20-16    organizations in conducting studies and surveys on the special
20-17    problems of the aged in matters such as mental and physical health,
20-18    housing, family relationships, employment, income, vocational
20-19    rehabilitation, recreation, transportation, insurance, legal
20-20    rights, and education.  The department shall make appropriate
20-21    reports and recommendations to the governor and to state and
20-22    federal agencies.
20-23          (g)  The department shall conduct research and long-range
20-24    planning regarding long-term care, community care, and other issues
20-25    that affect elderly individuals.
20-26          (h)  The department shall make recommendations to the
 21-1    governor, the legislature, and state agencies regarding:
 21-2                (1)  opportunities to coordinate programs for elderly
 21-3    individuals;
 21-4                (2)  unnecessary duplication in providing services to
 21-5    elderly individuals; and
 21-6                (3)  gaps in services to elderly individuals.
 21-7          (i)  The department shall cooperate with the Texas Department
 21-8    of Housing and Community Affairs to provide affordable housing for
 21-9    elderly individuals and for families in which an elderly individual
21-10    is head of the household and shall:
21-11                (1)  assess the need for housing for elderly
21-12    individuals and for families in which an elderly individual is head
21-13    of the household in different localities;
21-14                (2)  set standards relating to the design and
21-15    construction of housing for elderly individuals;
21-16                (3)  provide planning assistance to builders; and
21-17                (4)  publicize the availability of the housing program
21-18    to potential developers and residents.
21-19          SECTION 1.15.  Subsections (a) and (d), Section 101.024,
21-20    Human Resources Code, are amended to read as follows:
21-21          (a)  The department shall disburse state funds appropriated
21-22    for the purpose to local public agencies or private, nonprofit
21-23    corporations that operate programs to recruit elderly [retired]
21-24    persons to perform voluntary community services or that operate
21-25    programs under the National Senior Service Corps [Foster
21-26    Grandparent Programs].
 22-1          (d)  State funds disbursed under this section may not be used
 22-2    to pay compensation to volunteer workers, except for participants
 22-3    in the Foster Grandparent and Senior Companion Programs, or for
 22-4    purposes other than financing the operation or administration of
 22-5    the volunteer programs, but it may be used to defray expenses
 22-6    incurred by volunteers in the performance of volunteer work.  The
 22-7    board by rules may further limit the purposes for which the state
 22-8    money may be spent.
 22-9          SECTION 1.16.  Section 101.0255, Human Resources Code, is
22-10    amended to read as follows:
22-11          Sec. 101.0255.  SERVICE STANDARDS AND AGREEMENTS.  (a)  The
22-12    department and the Texas Department of Human Services, with the
22-13    approval of the Health and Human Services Commission, shall work to
22-14    ensure consistency in service standards, reimbursement rates,
22-15    contract terms, and performance standards used by the respective
22-16    agency in the provision of the same or substantially similar
22-17    services under a community program on aging under Subchapter III,
22-18    Older Americans Act of 1965 (42 U.S.C. Section 3001 et seq.), or
22-19    the Options for Independent Living program and a community care
22-20    program of the Texas Department of Human Services.
22-21          (b)  The [Not later than January 1, 1994, the] department and
22-22    the Texas Department of Human Services, in accordance with federal
22-23    law, including the Older Americans Act of 1965 (42 U.S.C. Section
22-24    3001 et seq.), shall enter into an agreement that allows an area
22-25    agency on aging to[:]
22-26                [(1)]  jointly contract with a service provider that is
 23-1    under contract with the Texas Department of Human Services to
 23-2    provide services under a community care program.[; and]
 23-3          (c)  If cost-effective, the department shall [(2)]  use the
 23-4    billing system and audit procedures of the Texas Department of
 23-5    Human Services to eliminate unnecessary duplication and to secure
 23-6    reduced rates through economies of scale.  If required by the Texas
 23-7    Department of Human Services, the department shall reimburse the
 23-8    Texas Department of Human Services through an interagency contract
 23-9    for the cost of any use.
23-10          (d)  The department and the Texas Department of Human
23-11    Services shall coordinate the monitoring of providers who contract
23-12    with the respective agency to provide the same or a substantially
23-13    similar service.
23-14          SECTION 1.17.  Subchapter B, Chapter 101, Human Resources
23-15    Code, is amended by adding Section 101.0256 to read as follows:
23-16          Sec. 101.0256.  COORDINATED ACCESS TO LOCAL SERVICES.  The
23-17    department and the Texas Department of Human Services shall develop
23-18    standardized assessment procedures to share information on common
23-19    clients served in a similar service region.
23-20          SECTION 1.18.  Subchapter B, Chapter 101, Human Resources
23-21    Code, is amended by adding Section 101.033 to read as follows:
23-22          Sec. 101.033.  OLDER AMERICANS ACT; STATE PLAN.  (a)  The
23-23    department and the Texas Department of Human Services shall jointly
23-24    develop this state's plan on aging, as required by the federal
23-25    Older Americans Act of 1965 (42 U.S.C. Section 3001 et seq.) and
23-26    its subsequent amendments.
 24-1          (b)  The department and the Texas Department of Human
 24-2    Services shall jointly conduct a statewide needs assessment for
 24-3    long-term care services.  The assessment shall include input from:
 24-4                (1)  area agencies on aging;
 24-5                (2)  regional and local state agency staff; and
 24-6                (3)  community-based organizations.
 24-7          SECTION 1.19.  Subchapter B, Chapter 531, Government Code, is
 24-8    amended by adding Section 531.0235 to read as follows:
 24-9          Sec. 531.0235.  BIENNIAL DISABILITY REPORTS.  (a)  The
24-10    commissioner shall direct and require the Texas Planning Council
24-11    for Developmental Disabilities and the Office for the Prevention of
24-12    Developmental Disabilities to prepare a joint biennial report on
24-13    the state of services to persons with disabilities in this state.
24-14    The Texas Planning Council for Developmental Disabilities will
24-15    serve as the lead agency in convening working meetings and in
24-16    coordinating and completing the report.  Not later than December 1
24-17    of each even-numbered year, the agencies shall submit the report to
24-18    the commissioner, governor, lieutenant governor, and speaker of the
24-19    house of representatives.
24-20          (b)  The report will include recommendations addressing the
24-21    following:
24-22                (1)  fiscal and program barriers to consumer-friendly
24-23    services;
24-24                (2)  progress toward a service delivery system
24-25    individualized to each consumer based on functional needs;
24-26                (3)  progress on the development of local
 25-1    cross-disability access structures;
 25-2                (4)  projections of future long-term care services
 25-3    needs and availability; and
 25-4                (5)  consumer satisfaction, consumer preferences, and
 25-5    desired outcomes.
 25-6          (c)  The commission, Texas Department of Human Services, and
 25-7    other health and human services agencies shall cooperate with the
 25-8    agencies required to prepare the report under Subsection (a).
 25-9          SECTION 1.20.  Section 242.309, Health and Safety Code, as
25-10    added by Section 1.01, Chapter 1280, Acts of the 75th Legislature,
25-11    Regular Session, 1997 (effective until federal determination of
25-12    failure to comply with federal regulations), is amended to read as
25-13    follows:
25-14          Sec. 242.309.  PROVISIONAL LICENSE.  (a)  The board shall
25-15    issue [On application, the department shall grant] a provisional
25-16    license to an applicant currently licensed in another jurisdiction
25-17    who seeks a license in this state and who [under this subchapter.
25-18    An applicant for a provisional license under this section must]:
25-19                (1)  has been [be] licensed in good standing as a
25-20    nursing facility administrator for at least two years in another
25-21    jurisdiction, including a foreign country, [in another state, the
25-22    District of Columbia, or a territory of the United States] that has
25-23    licensing requirements that are substantially equivalent to the
25-24    requirements of this subchapter;
25-25                (2)  has [have] passed a national or other examination
25-26    recognized by the board relating to the practice of nursing
 26-1    facility administration; and
 26-2                (3)  is [be] sponsored by a person licensed by the
 26-3    board under this subchapter with whom the provisional license
 26-4    holder will [may] practice during the time the person holds a
 26-5    provisional license [under this section].
 26-6          (b)  The board may waive [An applicant for a provisional
 26-7    license may be excused from] the requirement of Subsection (a)(3)
 26-8    for an applicant if the board [department] determines that
 26-9    compliance with that subsection would be [constitutes] a hardship
26-10    to the applicant.
26-11          (c)  A provisional license is valid until the date the board
26-12    [department] approves or denies the provisional license holder's
26-13    application for a license.  The board [department] shall issue a
26-14    license under this subchapter to the provisional license holder [of
26-15    a provisional license under this section] if:
26-16                (1)  the provisional license holder is eligible to be
26-17    licensed under [passes the examination required by] Section 242.306
26-18    [242.306(c)]; or
26-19                (2)  the provisional license holder passes the part of
26-20    the examination under Section 242.307 that relates to the
26-21    applicant's knowledge and understanding of the laws and rules
26-22    relating to the practice of nursing facility administration in this
26-23    state and:
26-24                      (A)  the board [department] verifies that the
26-25    provisional license holder meets [has] the academic and experience
26-26    requirements for a license under this subchapter; and
 27-1                      (B) [(3)]  the provisional license holder
 27-2    satisfies all other license requirements under this subchapter.
 27-3          (d)  The board must approve or deny [department shall
 27-4    complete the processing of] a provisional license holder's
 27-5    application for a license not later than the 180th day after the
 27-6    date the provisional license is issued.  The board [department] may
 27-7    extend the 180-day period if the results of an examination have not
 27-8    been received by the board before the end of that period [this time
 27-9    in order to receive the results of a national examination or other
27-10    examination administered or graded by an outside organization
27-11    recognized by the department].
27-12          (e)  The board may establish a fee for provisional licenses
27-13    in an amount reasonable and necessary to cover the cost of issuing
27-14    the license.
27-15          SECTION 1.21.  Section 242.310, Health and Safety Code, as
27-16    added by Section 1.01, Chapter 1280, Acts of the 75th Legislature,
27-17    Regular Session, 1997 (effective until federal determination of
27-18    failure to comply with federal regulations), is amended to read as
27-19    follows:
27-20          Sec. 242.310.  LICENSE RENEWAL.  (a)  A person who is
27-21    otherwise eligible to renew a license may renew an unexpired
27-22    license by paying [to the department before the expiration of the
27-23    license] the required renewal fee to the department before the
27-24    expiration date of the license.  A person whose license has expired
27-25    may not engage in activities that require a license until the
27-26    license has been renewed.
 28-1          (b)  A person whose [If a person's] license has been expired
 28-2    for 90 days or less[, the person] may renew the license by paying
 28-3    to the department a [the required] renewal fee [and a fee] that is
 28-4    equal to 1-1/2 times the normally required renewal fee [one-half of
 28-5    the examination fee for the license].
 28-6          (c)  A person whose [If a person's] license has been expired
 28-7    for more [longer] than 90 days but less than one year[, the person]
 28-8    may renew the license by paying to the department a renewal fee
 28-9    that is equal to two times the normally required renewal fee [all
28-10    unpaid renewal fees and a fee that is equal to the examination fee
28-11    for the license].
28-12          (d)  A person whose [If a person's] license has been expired
28-13    for one year or more [longer, the person] may not renew the
28-14    license.  The person may obtain a new license by complying with the
28-15    requirements and procedures, including the examination
28-16    requirements, for obtaining an original license.
28-17          (e)  A [However, the department may renew without
28-18    reexamination an expired license of a] person who was licensed in
28-19    this state, moved to another state, and is currently licensed and
28-20    has been in practice in the other state for the two years preceding
28-21    the date of application may obtain a new license without
28-22    reexamination.  The [Such] person must pay to the department a fee
28-23    that is equal to two times the normally required renewal [the
28-24    examination] fee for the license.
28-25          (f)  Not later than the 31st day [(e) At least 30 days]
28-26    before the date [expiration of] a person's license is scheduled to
 29-1    expire, the department shall send written notice of the impending
 29-2    [license] expiration to the person at the person's [license
 29-3    holder's] last known address according to the records of the
 29-4    department.
 29-5          SECTION 1.22.  Section 242.314, Health and Safety Code, as
 29-6    added by Section 2.01, Chapter 1280, Acts of the 75th Legislature,
 29-7    Regular Session, 1997 (effective upon federal determination of
 29-8    failure to comply with federal regulations), is amended to read as
 29-9    follows:
29-10          Sec. 242.314.  PROVISIONAL LICENSE.  (a)  The [On
29-11    application, the] board shall issue [grant] a provisional license
29-12    to an applicant currently licensed in another jurisdiction who
29-13    seeks a license in this state and who [under this subchapter.  An
29-14    applicant for a provisional license under this section must]:
29-15                (1)  has been [be] licensed in good standing as a
29-16    nursing facility administrator for at least two years in another
29-17    jurisdiction, including a foreign country, [state, the District of
29-18    Columbia, or a territory of the United States] that has licensing
29-19    requirements that are substantially equivalent to the requirements
29-20    of this subchapter;
29-21                (2)  has [have] passed a national or other examination
29-22    recognized by the board relating to the practice of nursing
29-23    facility administration; and
29-24                (3)  is [be] sponsored by a person licensed by the
29-25    board under this subchapter with whom the provisional license
29-26    holder will [may] practice during the time the person holds a
 30-1    provisional license [under this section].
 30-2          (b)  The board may waive [An applicant for a provisional
 30-3    license may be excused from] the requirement of Subsection (a)(3)
 30-4    for an applicant if the board determines that compliance with that
 30-5    subsection would be [constitutes] a hardship to the applicant.
 30-6          (c)  A provisional license is valid until the date the board
 30-7    approves or denies the provisional license holder's application for
 30-8    a license.  The board shall issue a license under this subchapter
 30-9    to the provisional license holder [of a provisional license under
30-10    this section] if:
30-11                (1)  the provisional license holder is eligible to be
30-12    licensed under [passes the examination required by] Section 242.311
30-13    [242.311(c)]; or
30-14                (2)  the provisional license holder passes the part of
30-15    the examination under Section 242.312 that relates to the
30-16    applicant's knowledge and understanding of the laws and rules
30-17    relating to the practice of nursing facility administration in this
30-18    state and:
30-19                      (A)  the board verifies that the provisional
30-20    license holder meets [has] the academic and experience requirements
30-21    for a license under this subchapter; and
30-22                      (B) [(3)]  the provisional license holder
30-23    satisfies any other license requirements under this subchapter.
30-24          (d)  The board must approve or deny [shall complete the
30-25    processing of] a provisional license holder's application for a
30-26    license not later than the 180th day after the date the provisional
 31-1    license is issued.  The board may extend the 180-day period if the
 31-2    results of an examination have not been received by the board
 31-3    before the end of that period [this time in order to receive the
 31-4    results of a national examination or other examination administered
 31-5    or graded by an outside organization recognized by the board].
 31-6          (e)  The board may establish a fee for provisional licenses
 31-7    in an amount reasonable and necessary to cover the cost of issuing
 31-8    the license.
 31-9          SECTION 1.23.  Section 242.315, Health and Safety Code, as
31-10    added by Section 2.01, Chapter 1280, Acts of the 75th Legislature,
31-11    Regular Session, 1997 (effective upon federal determination of
31-12    failure to comply with federal regulations), is amended to read as
31-13    follows:
31-14          Sec. 242.315.  LICENSE RENEWAL.  (a)  A person who is
31-15    otherwise eligible to renew a license may renew an unexpired
31-16    license by paying [to the board before the expiration of the
31-17    license] the required renewal fee to the board before the
31-18    expiration date of the license.  A person whose license has expired
31-19    may not engage in activities that require a license until the
31-20    license has been renewed.
31-21          (b)  A person whose [If a person's] license has been expired
31-22    for 90 days or less[, the person] may renew the license by paying
31-23    to the board a [the required] renewal fee that is equal to 1-1/2
31-24    times the normally required fee [and a fee that is one-half of the
31-25    examination fee for the license].
31-26          (c)  A person whose [If a person's] license has been expired
 32-1    for more [longer] than 90 days but less than one year[, the person]
 32-2    may renew the license by paying to the board a [all unpaid] renewal
 32-3    [fees and a] fee that is equal to two times the normally required
 32-4    renewal fee [the examination fee for the license].
 32-5          (d)  A person whose [If a person's] license has been expired
 32-6    for one year or more [longer, the person] may not renew the
 32-7    license.  The person may obtain a new license by complying with the
 32-8    requirements and procedures, including the examination
 32-9    requirements, for obtaining an original license.
32-10          (e)  A [However, the board may renew without reexamination an
32-11    expired license of a] person who was licensed in this state, moved
32-12    to another state, and is currently licensed and has been in
32-13    practice in the other state for the two years preceding the date of
32-14    application may obtain a new license without reexamination.  The
32-15    person must pay to the board a fee that is equal to two times the
32-16    normally required renewal [the examination] fee for the license.
32-17          (f)  Not later than the 31st day [(e)  At least 30 days]
32-18    before the date [expiration of] a person's license is scheduled to
32-19    expire, the board shall send written notice of the impending
32-20    [license] expiration to the person at the person's [license
32-21    holder's] last known address according to the records of the board.
32-22          SECTION 1.24.  (a)  On September 1, 1999, the licensing and
32-23    regulation of home and community support services agencies and home
32-24    health medication aides under Chapter 142, Health and Safety Code,
32-25    and the certification of home and community support services
32-26    agencies on behalf of the United States Department of Health and
 33-1    Human Services for purposes of participation in the Medicare
 33-2    program are transferred from the Texas Department of Health to the
 33-3    Texas Department of Human Services.
 33-4          (b)  On September 1, 1999, all funds, obligations, and
 33-5    contracts of the Texas Department of Health related to a function
 33-6    listed in Subsection (a) of this section are transferred to the
 33-7    Texas Department of Human Services.
 33-8          (c)  On September 1, 1999, all property and records in the
 33-9    custody of the Texas Department of Health related to a function
33-10    listed in Subsection (a) of this section and all funds appropriated
33-11    by the legislature to the Texas Department of Health for a function
33-12    listed in Subsection (a) of this section are transferred to the
33-13    Texas Department of Human Services.
33-14          (d)  On September 1, 1999, all employees of the Texas
33-15    Department of Health who perform duties related to a function
33-16    listed in Subsection (a) of this section become employees of the
33-17    Texas Department of Human Services, to be assigned duties by the
33-18    Commissioner of Human Services.
33-19          (e)  A rule or form adopted by the Texas Department of Health
33-20    that relates to a function listed in Subsection (a) of this section
33-21    is a rule or form of the Texas Department of Human Services and
33-22    remains in effect until altered by the department.  The secretary
33-23    of state is authorized to adopt rules as necessary to expedite the
33-24    implementation of this subsection.
33-25          (f)  The transfer of the functions listed in Subsection (a)
33-26    of this section does not affect or impair any act done, any
 34-1    obligation, right, order, license, permit, rule, criterion,
 34-2    standard, or requirement existing, any investigation begun, or any
 34-3    penalty accrued under former law, and that law remains in effect
 34-4    for any action concerning those matters.
 34-5          (g)  An action brought or proceeding commenced before the
 34-6    transfer required by this section is effected, including a
 34-7    contested case or a remand of an action or proceeding by a
 34-8    reviewing court, is governed by the law and rules applicable to the
 34-9    action or proceeding before the date of the transfer.
34-10          (h)  After the transfer required by this section is effected,
34-11    a reference in law to the Texas Department of Health or the Texas
34-12    Board of Health that relates to a function listed in Subsection (a)
34-13    of this section means the Texas Department of Human Services and
34-14    the Texas Board of Human Services, respectively.
34-15          SECTION 1.25.  (a)  On September 1, 1999:
34-16                (1)  all functions and activities relating to the
34-17    following programs assigned to or performed by the Texas
34-18    Rehabilitation Commission immediately before that date are
34-19    transferred to the Texas Department of Human Services:
34-20                      (A)  blind/deaf/multiple disability waiver
34-21    program;
34-22                      (B)  personal attendant services program; and
34-23                      (C)  the voucher payment pilot project program
34-24    established under Section 22.032, Human Resources Code, as added by
34-25    Chapter 1094, Acts of the 75th Legislature, Regular Session, 1997,
34-26    and Section 22.033, Human Resources Code;
 35-1                (2)  all employees of the Texas Rehabilitation
 35-2    Commission who primarily perform duties related to a program listed
 35-3    in Subdivision (1) of this subsection become employees of the Texas
 35-4    Department of Human Services, to be assigned duties by the
 35-5    commissioner of that department;
 35-6                (3)  a rule or form adopted by the Texas Rehabilitation
 35-7    Commission that relates to a program listed in Subdivision (1) of
 35-8    this subsection is a rule or form of the Texas Department of Human
 35-9    Services and remains in effect until altered by the agency;
35-10                (4)  a reference in law or an administrative rule to
35-11    the Texas Rehabilitation Commission that relates to a program
35-12    listed in Subdivision (1) of this subsection means the Texas
35-13    Department of Human Services;
35-14                (5)  a license, permit, or certification in effect that
35-15    was issued by the Texas  Rehabilitation Commission for a program
35-16    listed in Subdivision (1) of this subsection is continued in effect
35-17    as a license, permit, or certification of the Texas Department of
35-18    Human Services; and
35-19                (6)  a complaint, investigation, or other proceeding
35-20    pending before the Texas Rehabilitation Commission that is related
35-21    to a program listed in Subdivision (1) of this subsection is
35-22    transferred without change in status to the Texas Department of
35-23    Human Services.
35-24          (b)  On October 1, 1999:
35-25                (1)  all funds, obligations, and contracts of the Texas
35-26    Rehabilitation Commission related to a program listed in Subsection
 36-1    (a) of this section are  transferred to the Texas Department of
 36-2    Human Services; and
 36-3                (2)  all property and records in the custody of the
 36-4    Texas Rehabilitation Commission related to a program listed in
 36-5    Subsection (a) of this section  and all funds appropriated by the
 36-6    legislature for a program listed in Subsection (a) of this section
 36-7    are transferred to the Texas Department of Human Services.
 36-8          SECTION 1.26.  (a)  The change in law made to Section 22.018,
 36-9    Human Resources Code, by this article relating to a contested case
36-10    hearing conducted by the State Office of Administrative Hearings on
36-11    behalf of the Texas Department of Human Services applies only to a
36-12    hearing that begins on or after January 1, 2000.  Notwithstanding
36-13    any other provision of this article, a hearing that begins before
36-14    that date is governed by the law in effect at the time the hearing
36-15    begins, and that law is continued in effect for that purpose.
36-16          (b)  The Commissioner of Human Services and the chief
36-17    administrative law judge of the State Office of Administrative
36-18    Hearings may agree to transfer contested cases pending before the
36-19    Texas Department of Human Services to the State Office of
36-20    Administrative Hearings before January 1, 2000.
36-21          SECTION 1.27.  Not later than December 1, 1999, the
36-22    commissioner of health and human services shall appoint the members
36-23    of the work group created by Section 22.035, Human Resources Code,
36-24    as added by this Act.
36-25          SECTION 1.28.  (a)  On September 1, 2001, all powers, duties,
36-26    functions, and activities relating to the Waiver Program for
 37-1    Medically Dependent Children assigned to or performed by the Texas
 37-2    Department of Health immediately before that date are transferred
 37-3    to the Texas Department of Human Services.
 37-4          (b)  All employees of the Texas Department of Health who
 37-5    primarily perform duties related to the program listed in
 37-6    Subsection (a) of this section become employees of the Texas
 37-7    Department of Human Services, to be assigned duties by the
 37-8    Commissioner of Human Services.
 37-9          (c)  A rule or form adopted by the Texas Department of Health
37-10    that relates to the program listed in Subsection (a) of this
37-11    section is a rule or form of the Texas Department of Human Services
37-12    and remains in effect until altered by the agency.
37-13          (d)  A reference in law or an administrative rule to the
37-14    Texas Department of Health that relates to the program listed in
37-15    Subsection (a) of this section means the Texas Department of Human
37-16    Services.
37-17          (e)  A license, permit, or certification in effect that was
37-18    issued by the Texas Department of Health for the program listed in
37-19    Subsection (a) of this section is continued in effect as a license,
37-20    permit, or certification of the Texas Department of Human Services.
37-21          (f)  A complaint, investigation, or other proceeding pending
37-22    before the Texas Department of Health that is related to the
37-23    program listed in Subsection (a) of this section is transferred
37-24    without change in status to the Texas Department of Human Services.
37-25          (g)  On October 1, 2001:
37-26                (1)  all funds, obligations, and contracts of the Texas
 38-1    Department of Health related to the program listed in Subsection
 38-2    (a) of this section are transferred to the Texas Department of
 38-3    Human Services; and
 38-4                (2)  all property and records in the custody of the
 38-5    Texas Department of Health related to the program listed in
 38-6    Subsection (a) of this section and all funds appropriated by the
 38-7    legislature for the program listed in Subsection (a) of this
 38-8    section are transferred to the Texas Department of Human Services.
 38-9          SECTION 1.29.  (a)  Not later than December 1, 1999, the
38-10    executive director of aging and the commissioners of the Texas
38-11    Department of Human Services, the Texas Department of Mental Health
38-12    and Mental Retardation, and the Health and Human Services
38-13    Commission shall appoint the members of the work group created by
38-14    Section 22.034, Human Resources Code, as added by this Act.
38-15          (b)  The work group shall report on the study and
38-16    recommendations required by Subsection (h), Section 22.034, Human
38-17    Resources Code, as added by this Act, to the commissioners of the
38-18    Texas Department of Human Services and the Texas Department of
38-19    Mental Health and Mental Retardation not later than September 1,
38-20    2000.
38-21          SECTION 1.30.  (a)  The Health and Human Services Commission
38-22    shall study the feasibility of a subacute care pilot project.  The
38-23    Texas Department of Human Services and the Texas Department of
38-24    Health shall cooperate with and assist the commission in this
38-25    study.  In conducting the study, the commission shall consider:
38-26                (1)  estimates of the potential fiscal impact,
 39-1    including the potential to save money;
 39-2                (2)  the impact of subacute care on quality of care;
 39-3                (3)  reimbursement under the state's reimbursement and
 39-4    regulatory policies;
 39-5                (4)  the capacity of facilities in this state to
 39-6    provide subacute care; and
 39-7                (5)  the impact of subacute care reimbursement on
 39-8    Medicaid, including managed care initiatives.
 39-9          (b)  Not later than September 1, 2000, the Health and Human
39-10    Services Commission shall submit a report on the feasibility of a
39-11    subacute care pilot project to the governor, lieutenant governor,
39-12    speaker of the house of representatives, and chair of each
39-13    legislative committee with jurisdiction over long-term care.
39-14          (c)  This section expires September 1, 2001.
39-15          SECTION 1.31.  Not later than November 1, 2000, the
39-16    commissioner of health and human services shall evaluate and report
39-17    to the lieutenant governor and the speaker of the house of
39-18    representatives on the results of service coordination between the
39-19    Texas Department on Aging and the Texas Department of Human
39-20    Services under Section 101.0255, Human Resources Code, as amended
39-21    by this Act.  The report shall include:
39-22                (1)  the amount of administrative consolidation;
39-23                (2)  savings from administrative consolidation; and
39-24                (3)  documented improvements in client services.
39-25          SECTION 1.32.  The changes in law made by this Act to Section
39-26    101.001, Human Resources Code, do not affect the entitlement of a
 40-1    member of the Texas Board on Aging serving on the board immediately
 40-2    before September 1, 1999, to continue to serve on the board for the
 40-3    term to which the member was appointed.  As the terms of members of
 40-4    the board expire or as vacancies occur on the board, the governor
 40-5    shall make appointments to the board to achieve, as soon as
 40-6    possible, the membership plan prescribed by Section 101.001, Human
 40-7    Resources Code, as amended by this Act.
 40-8          SECTION 1.33.  (a)  The Health and Human Services Commission
 40-9    shall evaluate the feasibility of establishing an integrated local
40-10    system of access and services for elderly persons and persons with
40-11    disabilities.
40-12          (b)  Not later than November 1, 2000, the Health and Human
40-13    Services Commission shall report to the lieutenant governor and the
40-14    speaker of the house of representatives on the results of the
40-15    study.  The report shall include the commission's recommendations
40-16    on how best to achieve integration.
40-17          SECTION 1.34.  This article takes effect September 1, 1999.
40-18          SECTION 1.35.  The changes in law made by this article to
40-19    Section 242.309, Health and Safety Code, as added by Section 1.01,
40-20    Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997,
40-21    Section 242.310, Health and Safety Code, as added by Section 1.01,
40-22    Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997,
40-23    Section 242.314, Health and Safety Code, as added by Section 2.01,
40-24    Chapter 1280, Acts of the 75th Legislature, Regular Session, 1997,
40-25    and Section 242.315, Health and Safety Code, as added by Section
40-26    2.01, Chapter 1280, Acts of the 75th Legislature, Regular Session,
 41-1    1997, relating to the qualifications for a license issued by the
 41-2    Texas Department of Human Services apply only to an application for
 41-3    a license made on or after the effective date of this article.  An
 41-4    application made for a license issued by the Texas Department of
 41-5    Human Services before the effective date of this article is
 41-6    governed by the law in effect on the date the application was made,
 41-7    and the former law is continued in effect for that purpose.
 41-8              ARTICLE 2.  LONG-TERM CARE SERVICES; DEPARTMENT
 41-9                     OF AGING AND DISABILITY SERVICES
41-10          SECTION 2.01.  Subdivisions (1), (2), and (3), Section
41-11    11.001, Human Resources Code, are amended to read as follows:
41-12                (1)  "Board" means the Texas Board of Aging and
41-13    Disability [Human] Services.
41-14                (2)  "Department" means the Texas Department of Aging
41-15    and Disability [Human] Services.
41-16                (3)  "Commissioner" means the Commissioner of Aging and
41-17    Disability [Human] Services.
41-18          SECTION 2.02.  Section 101.001, Human Resources Code, is
41-19    amended to read as follows:
41-20          Sec. 101.001.  DEFINITIONS [DEPARTMENT AND BOARD ON AGING].
41-21    In this chapter:
41-22                (1)  "Board" means the Texas Board of Aging and
41-23    Disability Services.
41-24                (2)  "Department" means the Texas Department of Aging
41-25    and Disability Services.  [(a)  The Texas Department on Aging is
41-26    created.]
 42-1          [(b)  The Texas Board on Aging is created as the governing
 42-2    body of the Texas Department on Aging.  The board is composed of
 42-3    nine members appointed by the governor with the advice and consent
 42-4    of the senate.  Appointments to the board shall be made without
 42-5    regard to the race, color, handicap, sex, religion, age, or
 42-6    national origin of the appointees.  To be eligible for appointment
 42-7    to the board, a person must have demonstrated an interest in and
 42-8    knowledge of the problems of aging and must be a member of the
 42-9    general public.  A person is not eligible for appointment as a
42-10    public member if the person or the person's spouse:]
42-11                [(1)  is employed by or participates in the management
42-12    of a business entity or other organization regulated by or
42-13    receiving funds from the department;]
42-14                [(2)  owns, controls, or has, directly or indirectly,
42-15    more than a 10 percent interest in a business entity or other
42-16    organization regulated by or receiving funds from the department;
42-17    or]
42-18                [(3)  uses or receives a substantial amount of tangible
42-19    goods, services, or funds from the department.]
42-20          [(c)  Members of the board serve for staggered terms of six
42-21    years with the terms of three members expiring on February 1 of
42-22    each odd-numbered year.  A member may be reappointed to the board.]
42-23          [(d)  Members of the board may receive the compensatory per
42-24    diem authorized by the General Appropriations Act for each day
42-25    spent engaged in the performance of their official duties.  Board
42-26    members are entitled to reimbursement for actual travel expenses
 43-1    incurred in the performance of their duties.]
 43-2          [(e)  The board shall hold meetings quarterly and may hold
 43-3    other meetings called by the chairman.  The board shall develop and
 43-4    implement policies that will provide the public with a reasonable
 43-5    opportunity to appear before the board and to speak on any issue
 43-6    under the jurisdiction of the board.]
 43-7          SECTION 2.03.  Subchapter A, Chapter 101, Human Resources
 43-8    Code, is amended by adding Section 101.0015 to read as follows:
 43-9          Sec. 101.0015.  AGING POLICY COUNCIL.  (a)  The department
43-10    shall appoint an advisory committee to be known as the Aging Policy
43-11    Council.  The council shall advise the department on matters
43-12    related to elderly persons, including policy, research, and
43-13    planning.
43-14          (b)  The council consists of nine members appointed by the
43-15    department to serve staggered two-year terms.  To be eligible for
43-16    appointment to the council, a person must have demonstrated an
43-17    interest in and knowledge of the problems of aging and must be a
43-18    member of the general public.
43-19          (c)  Not later than December 1 of each even-numbered year,
43-20    the council shall prepare a report and submit the report to the
43-21    governor, the lieutenant governor, and the speaker of the house of
43-22    representatives.  The report must include:
43-23                (1)  consumer satisfaction surveys;
43-24                (2)  long-term care insurance use reports;
43-25                (3)  demographics; and
43-26                (4)  other issues related to elderly persons.
 44-1          SECTION 2.04.  Subsection (a), Section 101.030, Human
 44-2    Resources Code, is amended to read as follows:
 44-3          (a)  The board [of the Texas Department on Aging], by rule,
 44-4    shall adopt a formula that meets the intent of the Older Americans
 44-5    Act, as amended, for allocating among area agencies on aging funds
 44-6    that the department receives under Title III, federal Older
 44-7    Americans Act.
 44-8          SECTION 2.05.  Section 101.059, Human Resources Code, is
 44-9    amended to read as follows:
44-10          Sec. 101.059.  REPORTING SYSTEM.  The office shall establish
44-11    a statewide ombudsman uniform reporting system to collect and
44-12    analyze information relating to complaints and conditions in
44-13    long-term care facilities as long as such system does not duplicate
44-14    other state reporting systems and shall provide the information to
44-15    the department and the[,] Texas Department of Health[, and Texas
44-16    Department of Human Services].
44-17          SECTION 2.06.  Chapter 21, Human Resources Code, is amended
44-18    by adding Section 21.0033 to read as follows:
44-19          Sec. 21.0033.  TRAINING PROGRAM FOR BOARD MEMBERS.  (a)  A
44-20    person who is appointed to and qualifies for office as a member of
44-21    the board may not vote, deliberate, or be counted as a member in
44-22    attendance at a meeting of the board until the person completes a
44-23    training program that complies with this section.
44-24          (b)  The training program must provide the person with
44-25    information regarding:
44-26                (1)  the legislation that created the department and
 45-1    the board;
 45-2                (2)  the federal Older Americans Act of 1965 (42 U.S.C.
 45-3    Section 3001 et seq.) and its subsequent amendments;
 45-4                (3)  the programs operated by the department;
 45-5                (4)  the role and functions of the department;
 45-6                (5)  the rules of the department with an emphasis on
 45-7    the rules that relate to disciplinary and investigatory authority;
 45-8                (6)  the current budget for the department;
 45-9                (7)  the results of the most recent formal audit of the
45-10    department;
45-11                (8)  a history of funding sources for long-term care
45-12    services;
45-13                (9)  the independent living philosophy;
45-14                (10)  the requirements of:
45-15                      (A)  the open meetings law, Chapter 551,
45-16    Government Code;
45-17                      (B)  the public information law, Chapter 552,
45-18    Government Code;
45-19                      (C)  the administrative procedure law, Chapter
45-20    2001, Government Code; and
45-21                      (D)  other laws relating to public officials,
45-22    including conflict-of-interest laws; and
45-23                (11)  any applicable ethics policies adopted by the
45-24    department or the Texas Ethics Commission.
45-25          (c)  A person appointed to the board is entitled to
45-26    reimbursement, as provided by the General Appropriations Act, for
 46-1    travel expenses incurred in attending the training program
 46-2    regardless of whether the attendance at the program occurs before
 46-3    or after the person qualifies for office.
 46-4          (d)  In this section, "independent living philosophy" means
 46-5    control over one's life based on the choice of acceptable options
 46-6    that minimize reliance on others in making a decision or in
 46-7    performing everyday activities.  The term includes:
 46-8                (1)  managing one's affairs;
 46-9                (2)  participating in day-to-day life in the community;
46-10                (3)  fulfilling a range of social roles; and
46-11                (4)  making decisions that lead to self-determination
46-12    and the minimization of physical and psychological dependence on
46-13    others.
46-14          SECTION 2.07.  Chapter 22, Human Resources Code, is amended
46-15    by adding Section 22.0245 to read as follows:
46-16          Sec. 22.0245.  OLDER AMERICANS ACT; STATE PLAN.  (a)  The
46-17    department shall develop the state's plan on aging, as required by
46-18    the federal Older Americans Act of 1965 (42 U.S.C. Section 3001 et
46-19    seq.) and its subsequent amendments.
46-20          (b)  The department shall conduct a statewide needs
46-21    assessment for long-term care services.  The assessment shall
46-22    include input from:
46-23                (1)  area agencies on aging;
46-24                (2)  regional and local state agency staff; and
46-25                (3)  community-based organizations.
46-26          SECTION 2.08.  The following are repealed:
 47-1                (1)  Section 101.0011, Human Resources Code;
 47-2                (2)  Section 101.0012, Human Resources Code, as added
 47-3    by Article 1 of this Act;
 47-4                (3)  Section 101.002, Human Resources Code;
 47-5                (4)  Section 101.003, Human Resources Code;
 47-6                (5)  Section 101.0031, Human Resources Code;
 47-7                (6)  Section 101.004, Human Resources Code;
 47-8                (7)  Section 101.006, Human Resources Code;
 47-9                (8)  Section 101.0061, Human Resources Code;
47-10                (9)  Section 101.007, Human Resources Code;
47-11                (10)  Section 101.008, Human Resources Code;
47-12                (11)  Section 101.021, Human Resources Code;
47-13                (12)  Section 101.0221, Human Resources Code;
47-14                (13)  Section 101.0255, Human Resources Code;
47-15                (14)  Section 101.0256, Human Resources Code, as added
47-16    by Article 1 of this Act;
47-17                (15)  Section 101.033, Human Resources Code, as added
47-18    by Article 1 of this Act; and
47-19                (16)  Subsection (b), Section 101.043, Human Resources
47-20    Code.
47-21          SECTION 2.09.  A person who is a member of the Texas Board on
47-22    Aging immediately before this article takes effect, unless
47-23    otherwise removed as provided by law, may continue to serve as a
47-24    member of the Aging Policy Council established by Section 101.0015,
47-25    Human Resources Code, as added by this article until the date on
47-26    which the person's term as a member of the Texas Board on Aging to
 48-1    which the person was originally appointed would otherwise expire.
 48-2          SECTION 2.10.  (a)  A reference in a law or rule to the Texas
 48-3    Department of Human Services means the Texas Department of Aging
 48-4    and Disability Services.
 48-5          (b)  A reference in a law or rule to the Texas Board of Human
 48-6    Services means the Texas Board of Aging and Disability Services.
 48-7          (c)  A reference in law to the commissioner of the Texas
 48-8    Department of Human Services means the commissioner of the Texas
 48-9    Department of Aging and Disability Services.
48-10          SECTION 2.11.  (a)  The Texas Department on Aging is
48-11    abolished.
48-12          (b)  On the effective date of this article:
48-13                (1)  all powers, duties, functions, and activities
48-14    performed by the  Texas Department on Aging immediately before this
48-15    section's effective date are transferred to the Texas Department of
48-16    Aging and Disability Services;
48-17                (2)  all employees of the Texas Department on Aging
48-18    become employees of the Texas Department of Aging and Disability
48-19    Services, to be assigned duties by the commissioner of that
48-20    department;
48-21                (3)  a rule or form adopted by the Texas Department on
48-22    Aging is a rule or form of the Texas Department of Aging and
48-23    Disability Services and remains in effect until altered by the
48-24    agency;
48-25                (4)  a reference in law or an administrative rule to
48-26    the Texas Department on Aging means the Texas Department of Aging
 49-1    and Disability Services;
 49-2                (5)  a license, permit, or certification in effect that
 49-3    was issued by the  Texas Department on Aging is continued in effect
 49-4    as a license, permit, or certification of the Texas Department of
 49-5    Aging and Disability Services; and
 49-6                (6)  a complaint, investigation, or other proceeding
 49-7    pending before the Texas Department on Aging is transferred without
 49-8    change in status to the Texas Department of Aging and Disability
 49-9    Services.
49-10          (c)  On the 30th day after the effective date of this
49-11    section:
49-12                (1)  all funds, obligations, and contracts of the Texas
49-13    Department on Aging are transferred to the Texas Department of
49-14    Aging and Disability Services; and
49-15                (2)  all property and records in the custody of the
49-16    Texas Department on Aging and all funds appropriated by the
49-17    legislature for the Texas Department  on Aging are transferred to
49-18    the Texas Department of Aging and Disability Services.
49-19          SECTION 2.12.  This article takes effect September 1, 2003.
49-20            ARTICLE 3.  CHILDREN WITH SPECIAL HEALTH CARE NEEDS
49-21          SECTION 3.01.  Section 35.001, Health and Safety Code, is
49-22    amended to read as follows:
49-23          Sec. 35.001.  SHORT TITLE.  This chapter may be cited as the
49-24    Children with Special Health Care Needs [Chronically Ill and
49-25    Disabled Children's] Services Act.
49-26          SECTION 3.02.  Chapter 35, Health and Safety Code, is amended
 50-1    by adding Sections 35.0021 and 35.0022 to read as follows:
 50-2          Sec. 35.0021.  DEFINITIONS.  In this chapter:
 50-3                (1)  "Case management services" includes:
 50-4                      (A)  coordinating medical services, marshaling
 50-5    available assistance, serving as a liaison between the child and
 50-6    the child's family and caregivers, insurance services, and other
 50-7    services needed to improve the well-being of the child and the
 50-8    child's family; and
 50-9                      (B)  counseling for the child and the child's
50-10    family about measures to prevent the transmission of AIDS or HIV
50-11    and the availability in the geographic area of any appropriate
50-12    health care services, such as mental health care, psychological
50-13    health care, and social and support services.
50-14                (2)  "Child with special health care needs" has the
50-15    meaning assigned by Section 35.0022.
50-16                (3)  "Dentist" means a person licensed by the State
50-17    Board of Dental Examiners to practice dentistry in this state.
50-18                (4)  "Facility" includes a hospital, an ambulatory
50-19    surgical center, and an outpatient clinic.
50-20                (5)  "Family support services" means support,
50-21    resources, or other assistance provided to the family of a child
50-22    with special health care needs. The term may include services
50-23    described by Part A of the Individuals with Disabilities Education
50-24    Act (20 U.S.C. Section 1400 et seq.), as amended, and permanency
50-25    planning, as that term is defined by Section 531.151, Government
50-26    Code.
 51-1                (6)  "Other benefit" means a benefit, other than a
 51-2    benefit provided under this chapter, to which a person is entitled
 51-3    for payment of the costs of services provided under the program,
 51-4    including benefits available from:
 51-5                      (A)  an insurance policy, group health plan,
 51-6    health maintenance organization, or prepaid medical or dental care
 51-7    plan;
 51-8                      (B)  Title XVIII, Title XIX, or Title XXI of the
 51-9    Social Security Act (42 U.S.C. Sections 1395 et seq., 1396 et seq.,
51-10    and 1397aa et seq.), as amended;
51-11                      (C)  the Department of Veterans Affairs;
51-12                      (D)  the Civilian Health and Medical Program of
51-13    the Uniformed Services;
51-14                      (E)  workers' compensation or any other
51-15    compulsory employers' insurance program;
51-16                      (F)  a public program created by federal or state
51-17    law or the ordinances or rules of a municipality or other political
51-18    subdivision of the state, excluding benefits created by the
51-19    establishment of a municipal or county hospital, a joint
51-20    municipal-county hospital, a county hospital authority, a hospital
51-21    district, or the facilities of a publicly supported medical school;
51-22    or
51-23                      (G)  a cause of action for the cost of care,
51-24    including medical care, dental care, facility care, and medical
51-25    supplies, required for a person applying for or receiving services
51-26    from the department, or a settlement or judgment based on the cause
 52-1    of action, if the expenses are related to the need for services
 52-2    provided under this chapter.
 52-3                (7)  "Physician" means a person licensed by the Texas
 52-4    State Board of Medical Examiners to practice medicine in this
 52-5    state.
 52-6                (8)  "Program" means the services program for children
 52-7    with special health care needs.
 52-8                (9)  "Provider" means a person who delivers services
 52-9    purchased by the department for the purposes of this chapter.
52-10                (10)  "Rehabilitation services" means the process of
52-11    the physical restoration, improvement, or maintenance of a body
52-12    function destroyed or impaired by congenital defect, disease, or
52-13    injury and includes:
52-14                      (A)  facility care, medical and dental care, and
52-15    occupational, speech, and physical therapy;
52-16                      (B)  the provision of braces, artificial
52-17    appliances, durable medical equipment, and other medical supplies;
52-18    and
52-19                      (C)  other types of care specified by the board
52-20    in the program rules.
52-21                (11)  "Services" means the care, activities, and
52-22    supplies provided under this chapter or program rules, including
52-23    medical care, dental care, facility care, medical supplies,
52-24    occupational, physical, and speech therapy, and other care
52-25    specified by program rules.
52-26                (12)  "Specialty center" means a facility and staff
 53-1    that meet minimum standards established under the program and are
 53-2    designated by the board for program use in the comprehensive
 53-3    diagnostic and treatment services for a specific medical condition.
 53-4                (13)  "Support" means to contribute money or services
 53-5    necessary for a person's maintenance, including food, clothing,
 53-6    shelter, transportation, and health care.
 53-7          Sec. 35.0022.  CHILD WITH SPECIAL HEALTH CARE NEEDS.  (a)  In
 53-8    this chapter, "child with special health care needs" means a person
 53-9    who:
53-10                (1)  is younger than 21 years of age and who has a
53-11    chronic physical or developmental condition; or
53-12                (2)  has cystic fibrosis, regardless of the person's
53-13    age.
53-14          (b)  The term "child with special health care needs" may
53-15    include a person who has a behavioral or emotional condition that
53-16    accompanies the person's physical or developmental condition.  The
53-17    term does not include a person who has a behavioral or emotional
53-18    condition without having an accompanying physical or developmental
53-19    condition.
53-20          SECTION 3.03.  Section 35.003, Health and Safety Code, is
53-21    amended to read as follows:
53-22          Sec. 35.003.  [CHRONICALLY ILL AND DISABLED CHILDREN'S]
53-23    SERVICES PROGRAM FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS.
53-24    (a)  The program is in the department to provide services to
53-25    eligible [chronically ill and disabled] children with special
53-26    health care needs.  The program shall provide:
 54-1                (1)  early identification of [chronically ill and
 54-2    disabled] children with special health care needs;
 54-3                (2)  diagnosis and evaluation of [chronically ill and
 54-4    disabled] children with special health care needs;
 54-5                (3)  rehabilitation services to [chronically ill and
 54-6    disabled] children with special health care needs;
 54-7                (4)  development and improvement of standards and
 54-8    services for [chronically ill and disabled] children with special
 54-9    health care needs; [and]
54-10                (5)  case management services;
54-11                (6)  other family support services; and
54-12                (7)  access to health benefits plan coverage under
54-13    Section 35.0031.
54-14          (b)  The board by rule shall:
54-15                (1)  specify the type, amount, and duration of services
54-16    to be provided under this chapter;
54-17                [(2)  specify the diseases and conditions covered by
54-18    the program;] and
54-19                (2) [(3)]  permit the payment of insurance premiums for
54-20    eligible children.
54-21          (c)  If budgetary limitations exist, the board by rule shall
54-22    establish a system of priorities relating to the types of services
54-23    or the classes of persons eligible for the services.  A waiting
54-24    list of eligible persons may be established if necessary for the
54-25    program to remain within the budgetary limitations.  The department
54-26    shall collect from each applicant for services who is placed on a
 55-1    waiting list appropriate information to facilitate contacting the
 55-2    applicant when services become available and to allow efficient
 55-3    enrollment of the applicant in those services.  The information
 55-4    collected must include:
 55-5                (1)  the applicant's name, address, and phone number;
 55-6                (2)  the name, address, and phone number of a contact
 55-7    person other than the applicant;
 55-8                (3)  the date of the applicant's earliest application
 55-9    for services;
55-10                (4)  the applicant's functional needs;
55-11                (5)  the range of services needed by the applicant; and
55-12                (6)  a date on which the applicant is scheduled for
55-13    reassessment.
55-14          (d)  The program may provide:
55-15                (1)  transportation and subsistence for an eligible
55-16    [chronically ill and disabled] child with special health care needs
55-17    and the child's parent, managing conservator, guardian, or other
55-18    adult caretaker approved by the program to obtain services provided
55-19    by the program; and
55-20                (2)  the following services to an eligible child with
55-21    special health care needs [chronically ill and disabled children]
55-22    who dies [die] in an approved facility outside the child's
55-23    municipality of residence while receiving program services [for a
55-24    condition covered by the program]:
55-25                      (A)  the transportation of the child's remains,
55-26    and the transportation of a parent or other person accompanying the
 56-1    remains, from the facility to the place of burial in this state
 56-2    that is designated by the parent or other person legally
 56-3    responsible for interment;
 56-4                      (B)  the expense of embalming, if required for
 56-5    transportation;
 56-6                      (C)  the cost of a coffin purchased at a minimum
 56-7    price, if a coffin is required for transportation; and
 56-8                      (D)  any other necessary expenses directly
 56-9    related to the care and return of the child's remains to the place
56-10    of burial in this state.
56-11          (e)  The department may:
56-12                (1)  develop methods to improve the efficiency and
56-13    effectiveness of the program; and
56-14                (2)  conduct pilot studies[; and]
56-15                [(3)  provide services only for conditions specified by
56-16    this chapter or by the board].
56-17          (f)  The program is separate from the financial or medical
56-18    assistance program established by Chapters 31 and 32, Human
56-19    Resources Code.
56-20          SECTION 3.04.  Chapter 35, Health and Safety Code, is amended
56-21    by adding Sections 35.0031, 35.0032, 35.0033, 35.0034, and 35.0035
56-22    to read as follows:
56-23          Sec. 35.0031.  HEALTH BENEFITS PLAN COVERAGE FOR CERTAIN
56-24    ELIGIBLE CHILDREN.  The department shall obtain coverage under a
56-25    health benefits plan for a child who:
56-26                (1)  is eligible for services under this chapter; and
 57-1                (2)  is not eligible for assistance under:
 57-2                      (A)  a program established under Title XXI of the
 57-3    Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended;
 57-4    or
 57-5                      (B)  the medical assistance program under Chapter
 57-6    32, Human Resources Code.
 57-7          Sec. 35.0032.  BENEFITS COVERAGE REQUIRED.  To the extent
 57-8    possible, the health benefits plan required by Section 35.0031 must
 57-9    provide benefits comparable to the benefits provided under the
57-10    state child health plan established by this state to implement
57-11    Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et
57-12    seq.), as amended.
57-13          Sec. 35.0033.  HEALTH BENEFITS PLAN PROVIDER.  (a)  A health
57-14    benefits plan provider who provides coverage for benefits under
57-15    Section 35.0031 must:
57-16                (1)  hold a certificate of authority or other
57-17    appropriate license issued by the Texas Department of Insurance
57-18    that authorizes the health benefits plan provider to provide the
57-19    type of coverage to be offered under Section 35.0031; and
57-20                (2)  satisfy, except as provided by Subsection (b), any
57-21    other applicable requirement of the Insurance Code or another
57-22    insurance law of this state.
57-23          (b)  Except as required by the department, a health benefits
57-24    plan provider under this chapter is not subject to a law that
57-25    requires coverage or the offer of coverage of a health care service
57-26    or benefit.
 58-1          Sec. 35.0034.  COST-SHARING PAYMENTS.  (a)  Except as
 58-2    provided by Subsection (b), the department may not require a child
 58-3    who is provided health benefits plan coverage under Section 35.0031
 58-4    and who meets the income eligibility requirement of the medical
 58-5    assistance program under Chapter 32, Human Resources Code, to pay a
 58-6    premium, deductible, coinsurance, or other cost-sharing payment as
 58-7    a condition of health benefits plan coverage under this chapter.
 58-8          (b)  The department may require a child described by
 58-9    Subsection (a) to pay a copayment as a condition of health benefits
58-10    plan coverage under Section 35.0031 that is equal to any copayment
58-11    required under the state child health plan established by this
58-12    state to implement Title XXI of the Social Security Act (42 U.S.C.
58-13    Section 1397aa et seq.), as amended.
58-14          (c)  The department may require a child who is provided
58-15    health benefits plan coverage under Section 35.0031 and who meets
58-16    the income eligibility requirement of a program established under
58-17    Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et
58-18    seq.), as amended, to pay a premium, deductible, coinsurance, or
58-19    other cost-sharing payment as a condition of health benefits plan
58-20    coverage.  The payment must be equal to any premium, deductible,
58-21    coinsurance, or other cost-sharing payment required under the state
58-22    child health plan established by this state to implement Title XXI
58-23    of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as
58-24    amended.
58-25          Sec. 35.0035.  DISALLOWANCE OF MATCHING FUNDS FROM FEDERAL
58-26    GOVERNMENT.  Expenditures made to provide health benefits plan
 59-1    coverage under Section 35.0031 may not be included for the purpose
 59-2    of determining the state children's health insurance expenditures,
 59-3    as that term is defined by 42 U.S.C. Section 1397ee(d)(2)(B), as
 59-4    amended.
 59-5          SECTION 3.05.  Section 35.004, Health and Safety Code, is
 59-6    amended by adding Subsection (j) to read as follows:
 59-7          (j)  This section does not apply to services for which
 59-8    coverage is provided under the health benefits plan established
 59-9    under Section 35.0031.
59-10          SECTION 3.06.  Section 35.005, Health and Safety Code, is
59-11    amended to read as follows:
59-12          Sec. 35.005.  ELIGIBILITY FOR SERVICES.  (a)  The board by
59-13    rule shall:
59-14                (1)  define medical, financial, and other criteria for
59-15    eligibility to receive services; and
59-16                (2)  establish a system for verifying eligibility
59-17    information submitted by an applicant for or recipient of services.
59-18          (b)  In defining medical and financial criteria for
59-19    eligibility under Subsection (a), the board may not:
59-20                (1)  establish an exclusive list of coverable medical
59-21    conditions; or
59-22                (2)  consider as a source of support to provide
59-23    services assets legally owned or available to a child's household.
59-24          (c)  A child is not eligible to receive rehabilitation
59-25    services unless:
59-26                (1)  the child is a resident of this state;
 60-1                (2)  at least one physician or dentist certifies to the
 60-2    department that the physician or dentist has examined the child and
 60-3    finds the child to be a [chronically ill and disabled] child with
 60-4    special health care needs whose disability meets the medical
 60-5    criteria established by the board;
 60-6                (3)  [the certifying physician or dentist has reason to
 60-7    expect that services will improve the child's condition or will
 60-8    extend the child's ability to function independently;]
 60-9                [(4)]  the department determines that the persons who
60-10    have any legal obligation to provide services for the child are
60-11    unable to pay for the entire cost of the services;
60-12                (4)  the child has a family income that is less than or
60-13    equal to 200 percent of the federal poverty level; and
60-14                (5)  the child meets all other eligibility criteria
60-15    established by board rules.
60-16          (d) [(c)]  A child is not eligible to receive services, other
60-17    than rehabilitation services, unless the child:
60-18                (1)  is a resident of this state; and
60-19                (2)  meets all other eligibility criteria established
60-20    by board rules.
60-21          (e)  Notwithstanding Subsection (c)(4), a child with special
60-22    health care needs who has a family income that is greater than 200
60-23    percent of the federal poverty level and who meets all other
60-24    eligibility criteria established by this section and by board rules
60-25    is eligible for services if the department determines that the
60-26    child's family is or will be responsible for medical expenses that
 61-1    are equal to or greater than the amount by which the family's
 61-2    income exceeds 200 percent of the federal poverty level.
 61-3          SECTION 3.07.  Chapter 35, Health and Safety Code, is amended
 61-4    by adding Section 35.0061 to read as follows:
 61-5          Sec. 35.0061.  REFERRAL FOR BEHAVIORAL OR EMOTIONAL
 61-6    CONDITIONS.  If a child with special health care needs who is
 61-7    eligible for services under this chapter has a behavioral or
 61-8    emotional condition and the child is eligible for services from
 61-9    another provider of services that would address the behavioral or
61-10    emotional condition, the department shall refer the child to that
61-11    provider for those services.
61-12          SECTION 3.08.  Subsection (e), Section 35.007, Health and
61-13    Safety Code, is amended to read as follows:
61-14          (e)  The department may collect the cost of services provided
61-15    under this chapter directly:
61-16                (1)  in accordance with [from] Title XVIII, [or] Title
61-17    XIX, or Title XXI of the Social Security Act (42 U.S.C. Sections
61-18    1395 et seq., [and] 1396 et seq., and 1397aa et seq.), as amended;
61-19    or
61-20                (2)  from any personal insurance, a health maintenance
61-21    organization, or any other third party who has a legal obligation
61-22    to pay other benefits.
61-23          SECTION 3.09.  Subsections (a) and (b), Section 35.012,
61-24    Health and Safety Code, are amended to read as follows:
61-25          (a)  The department may take a census, make surveys, and
61-26    establish permanent records of [chronically ill and disabled]
 62-1    children with special health care needs.
 62-2          (b)  The department shall maintain a record of orthotic and
 62-3    prosthetic devices, durable medical equipment, and medical supplies
 62-4    purchased by the department for [chronically ill and disabled]
 62-5    children with special health care needs.  Those items are not
 62-6    state-owned personal property and are exempt from the personal
 62-7    property inventory requirements of Subtitle D, Title 10, Government
 62-8    Code.
 62-9          SECTION 3.10.  The heading of Chapter 35, Health and Safety
62-10    Code, is amended to read as follows:
62-11           CHAPTER 35.  CHILDREN WITH SPECIAL HEALTH CARE NEEDS
62-12            [CHRONICALLY ILL AND DISABLED CHILDREN'S SERVICES]
62-13          SECTION 3.11.  Section 33.031, Health and Safety Code, is
62-14    amended to read as follows:
62-15          Sec. 33.031.  COORDINATION WITH CHILDREN WITH SPECIAL HEALTH
62-16    CARE NEEDS [CHRONICALLY ILL AND DISABLED CHILDREN'S] SERVICES.
62-17    (a)  All newborn children and other individuals under 21 years of
62-18    age who have been screened, have been found to be presumptively
62-19    positive through the newborn screening program, and may be
62-20    financially eligible may be referred to the department's
62-21    [chronically ill and disabled children's] services program for
62-22    children with special health care needs.
62-23          (b)  An individual who is determined to be eligible for
62-24    services under the [chronically ill and disabled children's]
62-25    services program for children with special health care needs shall
62-26    be given approved services through that program.  An individual who
 63-1    does not meet that eligibility criteria shall be referred to the
 63-2    newborn screening program for a determination of eligibility for
 63-3    newborn screening program services.
 63-4          SECTION 3.12.  Section 109.066, Health and Safety Code, is
 63-5    amended to read as follows:
 63-6          Sec. 109.066.  TEXAS DEPARTMENT OF HEALTH PROGRAMS.  (a)  The
 63-7    department may use appropriated funds, in accordance with the
 63-8    General Appropriations Act, to purchase coverage under a health
 63-9    benefit plan provided through the program for children who are
63-10    eligible for coverage for the program if:
63-11                (1)  the children receive health care benefits under
63-12    the services [chronically ill and disabled children's] program for
63-13    children with special health care needs or another federally funded
63-14    or state-funded program, other than the state Medicaid program,
63-15    that is administered by the department;
63-16                (2)  provision of the benefits through a health benefit
63-17    plan provided through the program is a more cost-effective means of
63-18    providing some or all of the benefits described by Subdivision (1);
63-19    and
63-20                (3)  no benefit or service provided to the children is
63-21    eliminated or adversely affected as a result of the provision of
63-22    the benefits through the program.
63-23          (b)  Services provided to children under a federally funded
63-24    or state-funded program administered by the department, including
63-25    the [chronically ill and disabled children's] program for children
63-26    with special health care needs, may not be reduced or eliminated
 64-1    because some or all of the services are provided through the
 64-2    program or otherwise provided because of the establishment of the
 64-3    corporation or the program.
 64-4          SECTION 3.13.  Subdivision (2), Subsection (b), Section 14,
 64-5    Article 21.58A, Insurance Code, is amended to read as follows:
 64-6                (2)  Except as provided by Subsection (g) of this
 64-7    section, this article shall not apply to the Texas Medicaid
 64-8    Program, the [chronically ill and disabled children's] services
 64-9    program for children with special health care needs created
64-10    pursuant to Chapter 35, Health and Safety Code, any program
64-11    administered under Title 2, Human Resources Code, any program of
64-12    the Texas Department of Mental Health and Mental Retardation, or
64-13    any program of the Texas Department of Criminal Justice.
64-14          SECTION 3.14.  Section 35.002, Health and Safety Code, is
64-15    repealed.
64-16          SECTION 3.15.  (a)  The change in law made by this article to
64-17    Chapter 35, Health and Safety Code, applies only to delivery of
64-18    services under that chapter on or after July 1, 2001.
64-19          (b)  The Texas Department of Health shall implement the
64-20    health benefits plan required by Section 35.0031, Health and Safety
64-21    Code, as added by this article, not later than July 1, 2001.
64-22          (c)  The Texas Board of Health shall adopt all rules
64-23    necessary to implement the changes in law made by this article not
64-24    later than July 1, 2001.
64-25          SECTION 3.16.  A state agency is required to implement the
64-26    article related to children with special health care needs only if
 65-1    the legislature appropriates money specifically for that purpose.
 65-2    If the legislature does not appropriate money specifically for that
 65-3    purpose, an agency may, but it is not required to, implement the
 65-4    article using other appropriations available for the purpose.
 65-5                   ARTICLE 4.  EFFECTIVE DATE; EMERGENCY
 65-6          SECTION 4.01.  Except as otherwise provided by this Act, this
 65-7    Act takes effect September 1, 1999.
 65-8          SECTION 4.02.  If, before implementing any provision of this
 65-9    Act, the Texas Department of Human Services or another state agency
65-10    determines that a waiver or authorization from a federal agency is
65-11    necessary for implementation, the department or other state agency
65-12    shall request the waiver or authorization and may delay
65-13    implementing that provision until the waiver or authorization is
65-14    granted.
65-15          SECTION 4.03.  If, before implementing any provision of this
65-16    Act, a state agency determines that a waiver or authorization from
65-17    a federal agency is necessary for implementation of that provision,
65-18    the agency affected by the provision shall request the waiver or
65-19    authorization and may delay implementing that provision until the
65-20    waiver or authorization is granted.
65-21          SECTION 4.04.  The importance of this legislation and the
65-22    crowded condition of the calendars in both houses create an
65-23    emergency and an imperative public necessity that the
65-24    constitutional rule requiring bills to be read on three several
65-25    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 374 passed the Senate on
         April 29, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 28, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 374 passed the House, with
         amendments, on May 21, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor