HBA-JEK C.S.H.B. 1213 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1213 By: Maxey Human Services 3/28/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE According to the Health and Human Services Commission (HHSC), there are currently more than 1,200 Texas children with disabilities living in institutions. The Children's Long-Term Care Policy Council under the auspices of HHSC states that disabled children are more likely to thrive or meet their potential when living in a family-based setting. Current law requires HHSC to provide permanency planning with the goal of placing children in a enduring and nurturing parental relationship for each child residing in an institution. However, Texas does not have a specialized system for recruiting and developing family-based alternatives for children residing in institutions or at risk of institutional placement. C.S.H.B. 1213 requires HHSC to create and implement a system of family-based alternatives to the institutionalization of children. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 1213 amends the Government Code to create a system of family-based alternatives to the institutionalization of children (system) under which a child with a physical or developmental disability who cannot reside with the child's birth family may receive necessary services in a family-based alterative instead of an institution. The bill provides that the system is intended to be operated in a manner that recognizes that parents are a valued and integral part of the system (Sec. 531.055). C.S.H.B. 1213 requires the Health and Human Services Commission (HHSC) to contract with a nonprofit or community organization, including a faith-based organization, for the development and implementation of the system. The bill authorizes a contractor to subcontract for components of the system with community organizations, nonprofit organizations, governmental entities, and quasi-governmental entities. The system must provide for recruiting and training alternative families to provide services for children and identifying and assessing the service needs of each child and alternative family (Sec. 531.055). C.S.H.B. 1213 requires each affected health and human services agency to cooperate with the contractors and take all action necessary to implement the system, but provides that HHSC has final authority to make any decisions and resolve any disputes regarding the system. The bill requires HHSC, as necessary to implement the system, to ensure that an appropriate number of openings for community-based Medicaid services (waiver services) that become available for the purpose of transferring persons with disabilities into community-based services are available to both children and adults and that procedures are implemented to identify the most appropriate waiver service for each child. HHSC shall require the health and human service agency that is responsible for providing a specific waiver service to a child to also assume responsibility for any necessary transition activities or services (Sec. 531.055). C.S.H.B. 1213 requires HHSC to begin implementation of the system in areas of Texas with high numbers of children who reside in institutions. The bill requires HHSC to ensure that the procedures for providing information to a child's parents or a guardian regarding the availability of a family-based alternative permit and encourage the participation of an individual who is not affiliated with the institution in which the child resides or with an institution in which the child could be placed. The bill also requires HHSC to consider and, when appropriate, incorporate current research and recommendations developed by other public and private entities involved in analyzing public policy related to children residing in institutions (Sec. 531.055). The bill authorizes the system to use a variety of placement options when placing a child in a family-based alternative setting, including an arrangement in which shared parenting occurs between the alternative family and the child's birth family. The bill provides that a family-based alternative placement must be designed to be a long-term arrangement regardless of the option used. The bill specifies that adoption of a child by the child's alternative family is an available option if the birth family's parental rights are terminated (Sec. 531.055). C.S.H.B. 1213 requires HHSC to report to the legislature on the implementation of the system no later than January 1 of each year, beginning with January 1, 2003. The bill requires HHSC to take all action necessary to ensure that the requests for proposals necessary to implement these family-based alternatives for children are issued as soon as possible after September 1, 2001. The bill also requires HHSC to include implementation timelines in any contract it executes after receiving responses to the proposal requests (Sec. 531.055 and SECTIONS 3 and 4). EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1213 differs from the original by authorizing a contractor to subcontract for components of the system with community organizations, nonprofit organizations, governmental entities, and quasigovernmental entities. The substitute authorizes the system of family-based alternatives to the institutionalization of children (system) to use a variety of placement options when placing a child in a familybased alternative setting, including an arrangement in which shared parenting occurs between the alternative family and the child's birth family. The substitute also adds that a family-based alternative placement must be designed to be a long-term arrangement regardless of the option used and that adoption of a child by the child's alternative family is an available option if the birth family's parental rights are terminated. The substitute provides that the system is intended to be operated in a manner that recognizes that parents are a valued and integral part of the system The substitute requires the Health and Human Services Commission (HHSC) to ensure that an appropriate number of openings for waiver services that become available as a result of funding for the purpose of transferring persons with disabilities into community-based services are made available to both children and adults, rather than requiring HHSC to ensure that waiver services were available immediately to each eligible child (Sec. 531.055).