The House Committee on Appropriations 79th Legislature March 15, 2005 7:00 a.m. Capitol Extension, E1.030 Pursuant to a notice posted on March 9, 2005, and revised on March 14, 2005, the House Committee on Appropriations met in a public hearing and was called to order by the chair, Representative Pitts, at 7:08 a.m. The roll was answered as follows: Present: Representatives Pitts; Luna; Berman; Brown, Betty; Brown, Fred; Chisum; Crownover; Davis, John; Edwards; Guillen; Haggerty; Hamric; Hegar; Hopson; Isett; Martinez; Pickett; Smith, Todd; Truitt (19). Absent: Representatives Branch; Dukes; Gattis; Hope; King, Tracy; Kolkhorst; McClendon; Menendez; Pena; Turner (10). A quorum was present. (Representative Turner now present.) The chair recognized Representative John Davis to give an overview of the Health and Human Services Subcommittee recommendations. (Representative McClendon now present.) The chair recognized Representative Isett to lay out the recommendations for the Department of Assistive and Rehabilitative Services. The chair recognized Representative John Davis to lay out the recommendations for the Department of Aging and Disability Services. The chair recognized Legislative Budget Board staff to explain the recommendations of the Health and Human Services Subcommittee. Testimony was taken. (See attached witness list.) (Representative Hope now present.) (Representative Branch now present.) (Representative Dukes now present.) (Representative Kolkhorst now present.) (Representative King, Tracy now present.) The chair recognized Representative John Davis to lay out the proposed riders for the Department of Aging and Disability Services. The chair recognized Representative Hopson to lay out the proposed riders for the Department of State Health Services. (Representative Luna in chair.) The chair recognized Representative Dukes to lay out the recommendations for the Department of Family and Protective Services. (Representative Pitts in chair.) At 9:58 a.m., on the motion of the chair and without objection, the meeting was recessed until adjournment of the house. The committee reconvened at 12:04 p.m. and was called to order by the chair, Representative Pitts. The roll was answered as follows: Present: Representatives Pitts; Luna; Berman; Brown, Fred; Davis, John; Dukes; Edwards; Guillen; Haggerty; Hamric; Hegar; Hope; Hopson; Isett; King, Tracy; Martinez; Pena; Pickett; Truitt (19). Absent: Representatives Branch; Brown, Betty; Chisum; Crownover; Gattis; Kolkhorst; McClendon; Menendez; Smith, Todd; Turner (10). A quorum was present. (Representative Smith, Todd now present.) The chair recognized Representative Truitt to lay out the recommendations for the Health and Human Services Commission. (Representative Crownover now present.) (Representative Branch now present.) (Representative Brown, Betty now present.) (Representative Chisum now present.) The chair recognized Representative John Davis to lay out the recommendations for the Special Provisions Relating to All Health and Human Services Agencies. (Representative Turner now present.) (Representative Kolkhorst now present.) (Representative McClendon now present.) Representatives John Davis, Isett, Hopson, Dukes and Truitt moved the adoption of the Legislative Budget Board recommendations for the Department of Assistive and Rehabilitative Services [hereinafter: "DARS"], Department of State Health Services [hereinafter: "DSHS"], Department of Family and Protective Services [hereinafter: "DFPS"], Department of Aging and Disability Services [hereinafter: "DADS"], Health and Human Services Commission [hereinafter: "HHSC"], and Special Provisions Relating to All Health and Human Services Agencies [hereinafter: "Special Provisions"] with the following changes: 2 House Committee on Appropriations 3/15/2005 Proposed Fiscal Changes: HHSC - Medicaid Caseload and Cost DFPS - Foster Care Caseload Growth DFPS - Foster Care--Replace Crime Victims Fund Funding DFPS - Adoption Subsidies Caseload Growth DFPS - APS--Replace Crime Victims Fund Funding DADS - LTC Caseload Growth DADS - LTC Functional Eligibility HHSC - CHIP Caseload Growth and Cost HHSC - Apply New CHIP Cost Sharing HHSC -Add CHIP Hospice Benefit DSHS - Civil Commitment Program DADS - LTC Waiver Cost DSHS - HIV Program DSHS - State Mental Health Hospital Capacity Growth DFPS - CPS Reform DFPS - Maintain APS MH/MR Current Caseload per Worker DADS - Promoting Independence DSHS - MH Hospitals DSHS - Maintain Service Levels Strategies Restored: 1.1.1 Coordinated Public Health Services 1.1.3. Maintain Vital Records 1.1.4 Special Health Initiatives 1.1.5 Registries, Information and Analysis 1.2.5 Infectious Disease Epidemiology/Surveillance 1.3.1 Cardiovascular Disease, Diabetes, and Injury Prevention 1.3.2 Abstinence Education 1.3.5 Epilepsy, Hemophilia, and Alzheimer's 1.4.1 Laboratory Services 2.1.3 Family Planning Services 2.1.5 Community Primary Care Services 2.2.4 Substance Abuse Prevention 2.2.5 Substance Abuse Intervention 2.2.6 Substance Abuse Prevention 2.3.2 FQHC Infrastructure Grants 3.1.1 Texas Center for Infectious Disease 4.1.1. Food (Meat) and Drug Safety 4.1.2. Environmental Health 4.1.3. Radiation Control 4.1.4. Health Care Professionals 4.1.5. Health Care Facilities 5.1.1 Central Administration 5.1.2 Information Technology Program Support 5.1.3 Other Support Services 5.1.4 Regional Administration HHSC - Reduce HHS Waiting List Demographic Growth DFPS - Restore Foster Care Rates to FY02-03 DFPS - Increase Foster Care Rates over FY02-03 DSHS - Childhood Vaccinations (Hepatitis A) DFPS - Increase Monitoring of Licensed Facilities 3 House Committee on Appropriations 3/15/2005 HHSC - Medicaid Buy-In DSHS - Newborn Screening DSHS - Childhood Vaccines (PCV-7) HHSC - Expand Family Violence Services HHSC - 2-1-1 Information and Referral DADS - State School Cost Allocation Issue HHSC - Maintain Program Admin and Support HHSC - Maintain Technology Critical for Agency Functions HHSC - Maintain Support of Integrated Eligibility DFPS - Fund Technology (MLPP) DFPS - Fund IMPACT DFPS - Fund Statewide Intake Technology Needs (MLPP) DFPS - Fund Stemmons Office Relocation HHSC- Improve HHS Contract Management and Oversight DADS - Critical State School Renovations DADS - Technology and Equipment (includes MLPP) DADS - Critical Accountability and Oversight DSHS - MH Hospital Critical Renovations DSHS - Laboratory Information System DSHS - Technology and Equipment (includes MLPP) DFPS - Restore Prevention Services FY04-05 (TANF) DFPS - Restore Prevention Services FY02-03 (TANF) DADS - Title XX Community Care Services (Title XX) DSHS - Cancer Registry Technical Adjustments and Movements of Appropriations to Conform to Subcommittee Recommendations: DSHS--align dedicated tobacco to BRE DSHS--bond refunding DSHS--add FTEs to MH State Hospitals DSHS--shift funding from Health Care Facility Strategy DSHS--shift funding from Parkland Senior Care DSHS--increase for FQHC FPS--APS Reform Plan FPS--back out unavailable CCDF from CPS Reform FPS--back-out Crime Victim Fund HHSC - Deferral of Medicaid August 2007 Payment to HMOs HHSC - Deferral of CHIP August 2007 Payment to HMOs DADS--Title XX for Guardianship DARS--increase in GR-D for BET DARS--Increase in IAC and FF for transition services DFPS--One Month Deferral for Foster Care DADS--Deferral for Com. MR and Reduction for Cash Accounting FTE Changes: Increase the FTE cap for DADS, DFPS, DSHS, and HHSC. Align funding decisions among agency strategies and adjust FTE levels and make technical adjustments to measure targets, capital budgets, and riders to reflect funding decisions. Also align funding among agencies for decisions that impact more than one agency. Items for Future Consideration: 4 House Committee on Appropriations 3/15/2005 HHSC - Restore Optional Medicaid Services HHSC - Maintain Technology Critical for Agency Functions HHSC - Maintain Program Admin and Support HHSC - Reduce Waiting/Interest Lists HHSC - Office of Inspector General Staff Increases DADS - LTC Acuity Cost Increase DADS - LTC - Rate Restoration to FY03 DADS - LTC - Rebase and Rate Increase DADS - LTC- TILES to RUGS HHSC - Medically Needy HHSC - Medicaid & CHIP Provider Rate Restorations HHSC - Fund Urban-Non Public Upper Payment Limit (UPL) Program HHSC - Graduate Medical Education (GME) HHSC - Provide Funding Hospital Financing HHSC - Provide Medicaid & CHIP Rate Increases HHSC - Revise TEFRA Rider HHSC - State Facilities HR Staff DSHS - Parkland Senior Care Project DARS- Expand Independent Living Centers FPS - Critical Accountability & Oversight Motions, Riders and Rider Revisions for DARS: Technical 28. GR-Dedicated Account No. 492 Business Enterprises of Texas 4. Reimbursement of Advisory Council Members. New or Modified Riders 2. Capital Budget 9. Amend Reporting on Early Childhood Intervention Rider 30. GR-Dedicated Account No. 107 Comprehensive Rehabilitation Fund 31. Contingency for House Bill 2 Motions, Riders and Rider Revisions for DADS: Technical Adjust Informational Item 8. Accounting of Support Costs 36. Revolving Fund Services: Canteen Services and Sheltered Workshops 46. Contingency Appropriation out of the Quality Assurance Account 44. Reimbursement of Advisory Council Members New or Modified Riders 5. Nursing Home Program Provisions 7. Appropriations Limited to Revenue Collections 17. Survey of Nursing Facility Residents Delete 22. Community Care Waiver Slots 32. Disposition of Construction Appropriation Related to Mental Retardation Delete 43. Area Agencies on Aging Retain Struck Rider 72. Pilot Project for Persons with developmental Disabilities 5 House Committee on Appropriations 3/15/2005 New Rider - Dual Diagnosis Pilot New Rider - Additional Program of All-Inclusive Care for the Elderly (PACE) Sites New Rider - Contingency Appropriation for Senate Bill 6 - Transfer of Guardianship Contracts New Rider - Cost Comparison Report New Rider - HCSSA Monitoring and Oversight Study New Rider - Use of State Schools New Rider - Study of the Utilization Review and Level of Need Determination Processes for Home and Community-based Services, Texas Home Living Waiver Programs, and Intermediate Care Facilities/Mental Retardation Program. New Rider - Study of Community Care Services Eligibility Determination and Hours Allocation. Motions, Riders and Rider Revisions for DSHS: Technical Fully appropriate interest earnings in permanent tobacco endowments to conform to Biennial Revenue Estimate. Adjust FTES to conform to State Hospital restoration. Adjust Bond Debt Service due to refunding of revenue bonds. 16. Transfers of Appropriations - State Owned Hospitals 18. Community Hospital Funding for Galveston Community Hospital 25. New Generation Medications Delete 27. Expenditures on Bond Homes 30. Use of Timber Receipts for Capital Projects 45. Reimbursement of Advisory Council Members 47. Unexpended Balances - Preparedness and Prevention and Consumer Protection Services 69. Estimated Appropriation and Unexpended Balance 79. Nuisance Surveys for the Economically Disadvantaged Communities Program 80. Medically Fragile Children New or Modified Riders 2. Capital Budget Delete 4. Priority Populations Defined Delete 5. Youth at Risk of Selling Controlled Substances Delete 6. Coordination of Support Services 10. Limitation of Specific Strategy Transfers 36. Medical Treatment 44. Reimbursement of Advisory Committee Members 59. Rabies Control 62. Use of Community Primary Care Services, FQHC, and Special Health Initiatives Funds 65. Emergency Care Attendant (ECA) Training Delete 76. Small Urban Hospitals 82. Renovations at the Texas Center for Infectious Disease 142. Estimated Appropriation: Perpetual Care Account New Rider - Contingent Appropriation of Additional Fee Revenue New Rider - Exemption from Article IX, Section 11.04, Efficient Use of State Owned and Leased Space 6 House Committee on Appropriations 3/15/2005 New Rider - Federal Funds and Capital Budget Expenditures New Rider - Contingent Appropriation and Authority to Expend Funds for Texas Cancer Registry Motions, Riders and Rider Revisions for DFPS: Technical 23. Reimbursement of Advisory Council Members New or Modified Riders Delete 8. Fund Transfers for Funds Consolidation 13. Appropriation Transfer Between Fiscal Years 16. Use of Personal Cellular Telephones New Rider - Reporting Requirement on Minority Child Removals New Rider - Prevention and Early Intervention Program Grants New Rider - Funding for At-Risk Prevention Services Motions, Riders and Rider Revisions for HHSC: Technical Make Method of Finance substitution of tobacco for General Revenue Match for Medicaid in order to fully reflect available Tobacco funds in accordance with the Biennial Revenue Estimate. Replace General Revenue Match for Medicaid with GR Dedicated Permanent Fund Tobacco Education and Enforcement to align with Biennial Revenue Estimate. 4. Reimbursement of Advisory Committee Members. 47. Reimbursement of Advisory Council Members. New or Modified Riders 16. Risk Stabilization Reserve Delete 24. Medicaid Reimbursement Rates for Texas State Veterans Homes Delete 30. Evaluation of Mental Retardation Services 57. Collection of Rebates on Physician Administered Drugs 58. Medicaid Quality Initiative Pilot Project New Rider - Medicaid Provider Reimbursement New Rider - Review Process for Injectable Drugs New Rider - Medicaid Reimbursement for Immunizations 28. Medicaid Support and Information Services New Rider - Unexpended Balance Authority for Eligibility Determination Services Motions, Riders and Rider Revisions for Special Provisions: Technical 26. Texas Capital Trust Account No. 543 37. Collection of Fees from the Copyright of Training Materials and Patent of Technologies 39. Maximum Security Salaries 49. Efficiencies at Local Mental Health and Mental Retardation Authorities New or Modified Riders 11. Medicaid Managed Care Contracts 13. Limitation on Transfer Authority 17. Limitation on Use of Tobacco Funds 7 House Committee on Appropriations 3/15/2005 20. Rate Analysis and Reporting Requirements 29. Funding Equity Among Local Mental Health and Mental Retardation Authorities Delete 30. Report on Local Authorities 44. Professional Trainees and Interns 45. Limit on Spending New Generation Medication Funds New Rider - Limitation on Appropriations for Long-term Care Waiver Slots. Substitute New Rider 50. Appropriation Reduction for Care Management of the Medicaid Aged/Blind/Disabled Population Various: Motion and Riders Motion and Riders to implement: deferral of one month for Foster Care, shift to cash-basis accounting for nursing home and other Medicaid strategies at DADS, deferral of one month for MR Community, deferral of one month for Medicaid HMOs, and deferral of one month for CHIP HMOs. Riders for the Items for Future Consideration for HHSC: New or Modified Riders 19. Payments to Rural Hospitals Under Managed Care. New Rider - State Facilities Human Resources Staff New Rider - Direct Care Staff and Assisted Living Facilities Riders for the Items for Future Consideration for Special Provisions: 50. Appropriation Reduction for STAR+PLUS Expansion. Without objection, the motion was adopted. Testimony was taken. (See attached witness list.) (Representative Luna in chair.) (Representative Pitts in chair.) At 2:47 p.m., on the motion of the chair and without objection, the meeting was adjourned until 7:00 a.m., March 16, 2005. ________________________ Rep. Pitts, Chair ________________________ Cristina Self, Clerk 8 House Committee on Appropriations 3/15/2005 9