By: Naishtat H.B. No. 3259
A BILL TO BE ENTITLED
AN ACT
relating to contracting by health and human services agencies with
private entities for eligibility determination and service
delivery.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 531, Government Code, is amended by
adding Subchapter K to read as follows:
SUBCHAPTER K. ELIGIBILITY DETERMINATION AND SERVICE DELIVERY OF
HEALTH AND HUMAN SERVICES
Sec. 531.401. DEFINITION. In this subchapter, "advisory
board" means the privatization advisory board established under
Section 531.406.
Sec. 531.402. CONTRACTING FOR ELIGIBILITY DETERMINATION OR
SERVICE DELIVERY. A health and human services agency may contract
with a private entity to perform certain functions relating to
eligibility determination or service delivery performed by the
agency only if:
(1) the agency determines that contracting may advance
the objectives of:
(A) achieving increased quality of and client
access to services;
(B) achieving increased savings in the cost of
providing administrative and other services and staff resulting
from streamlining and eliminating duplication of services;
(C) improving fraud detection and prevention;
and
(D) reducing errors in eligibility and benefits
determinations;
(2) the private entity and the agency satisfy the
criteria adopted by the commission under Section 531.403; and
(3) the results of the cost-benefit analysis and
readiness review required by Sections 531.404 and 531.405,
respectively, indicate that the objectives specified in Section
531.404(a) can be achieved under the contract.
Sec. 531.403. CONTRACTING CRITERIA. The commission, in
consultation with the advisory board, by rule shall develop
criteria that identify the circumstances under which a health and
human services agency may contract with a private entity to provide
eligibility determination services or service delivery. The
criteria, at a minimum, must include:
(1) the circumstances under which a request for bids,
offers, proposals, or other expressions of interest relating to the
contract may occur;
(2) procurement standards and procedures;
(3) performance standards that must be met by a
private entity that contracts with a health and human services
agency under this subchapter, including:
(A) standards relating to employee compensation
and benefits; and
(B) standards relating to the minimum level of
savings to be realized under the contract; and
(4) measures for use in conducting a readiness review
under Section 531.405.
Sec. 531.404. COST-BENEFIT ANALYSIS. (a) Before a
contract is awarded under this subchapter, the commission shall
provide a detailed cost-benefit analysis to the governor, the
Legislative Budget Board, and the advisory board. The analysis
must indicate that the contract:
(1) will comply with the standards relating to the
minimum level of savings required to be realized under Section
531.403(3)(B);
(2) will include effective mechanisms for monitoring
performance under the contract; and
(3) will result in specific improvements in service
delivery and client access to services.
(b) The commission shall make the analysis available to the
public.
(c) A member of the advisory board may review and comment on
the analysis at the member's individual discretion.
Sec. 531.405. READINESS REVIEW. (a) Before a contract is
awarded under this subchapter, the private entity must undergo a
readiness review conducted by an independent entity to determine
whether the private entity is capable of performing its obligations
under the contract and to confirm the findings of the cost-benefit
analysis performed under Section 531.404.
(b) A soon as practicable after the date on which the
readiness review is completed, the commission shall make any report
relating to the readiness review available to the public and to the
advisory board.
(c) A member of the advisory board may review and comment on
a report received under Subsection (b) at the member's individual
discretion.
Sec. 531.406. PRIVATIZATION ADVISORY BOARD. (a) The
privatization advisory board is composed of:
(1) three members of the senate appointed by the
lieutenant governor;
(2) three members of the house of representatives
appointed by the speaker of the house of representatives;
(3) one representative from each of the appropriate
health and human services agencies, appointed by the executive
director or commissioner of each respective agency;
(4) one representative of consumer advocates,
appointed jointly by the lieutenant governor and the speaker of the
house of representatives;
(5) one representative of businesses, appointed
jointly by the lieutenant governor and the speaker of the house of
representatives; and
(6) one representative of eligibility and service
delivery personnel of affected health and human services agencies,
appointed jointly by the lieutenant governor and the speaker of the
house of representatives.
(b) The lieutenant governor and the speaker of the house of
representatives on an alternating basis shall appoint the presiding
officer of the board. The presiding officer shall serve a two-year
term expiring February 1 of each odd-numbered year.
(c) A member of the board serves at the pleasure of the
appointing official.
(d) Each member of the board is entitled to reimbursement
for actual and necessary expenses incurred in performing functions
as a member of the board. A legislative member is entitled to
reimbursement from the appropriate fund of the member's house.
Other members of the board are entitled to reimbursement from funds
appropriated or made available to the board.
(e) The board shall meet at the call of the presiding
officer of the board and as provided by the rules of the board.
(f) The board shall:
(1) provide input to the commission regarding the
criteria required to be developed under Section 531.403; and
(2) monitor state agency activities relating to the
procurement of a contract under this subchapter.
(g) The board is not subject to Chapter 2110, Government
Code.
Sec. 531.407. PUBLIC INPUT. (a) The commission shall hold
a public hearing and receive public comment regarding the criteria
adopted under Section 531.403. The hearing must be held not later
than the 10th day after the date on which the criteria are adopted.
(b) The commission may coordinate with a legislative
committee in holding a hearing required by this section.
Sec. 531.408. PROCUREMENT OF CONTRACT. The advisory board
may review and comment, at the discretion of each individual
member, on each request for bids, offers, proposals, or other
expressions of interest relating to a contract under this
subchapter.
Sec. 531.409. CONFLICT WITH OTHER LAW. To the extent of any
conflict between this subchapter and any other law, this subchapter
controls.
SECTION 2. If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation, the agency shall
request the waiver or authorization and may delay implementing that
provision until the waiver or authorization is granted.
SECTION 3. Not later than October 1, 2003, the lieutenant
governor, the speaker of the house of representatives, and the
executive director or commissioner of each respective health and
human services agency shall appoint members to the privatization
advisory board established under Section 531.406, Government Code,
as added by this Act.
SECTION 4. Not later than November 1, 2003, the Health and
Human Services Commission shall develop the criteria required by
Section 531.403, Government Code, as added by this Act.
SECTION 5. This Act takes effect September 1, 2003.