Amend CSHB 1 (house committee printing) as follows:                          
	1. Strike Rider 57 in the Health and Human Services 
Commission's bill pattern, page II-78.
	2. In Article II, add the following rider for the Health and 
Human Services Commission:
	____. Staffing and Capital Authorization in Lieu of 
Contracted Responsibilities. (a) Notwithstanding any other 
provision in this Act, if the executive commissioner of the Health 
and Human Services Commission determines that a service performed 
as of the effective date of this Act under a contract would be more 
effectively performed by state personnel, the executive 
commissioner is authorized to adjust the agency's FTE limitation to 
the extent necessary to ensure the successful assumption of such 
contracted duties. The commission must make corresponding 
adjustments in the scope of duties and responsibilities in the 
affected contract. An increase in agency staffing resulting from 
the executive commissioner's determination under this section is 
subject to the following requirements:
		1. The commission must notify the Legislative Budget 
Board and the Governor at least 10 days prior to adjusting the 
budgeted FTE levels.
		2. The commission must report on a quarterly basis 
beginning December 1, 2007 to the Legislative Budget Board and the 
Governor the number of eligibility and related support staff and 
any related costs in Strategy A.1.2, Integrated Eligibility and 
Enrollment.
	(b) Notwithstanding any other provision in this Act, if the 
executive commissioner of the Health and Human Services Commission 
determines that a service performed as of the effective date of this 
Act under a contract would be more effectively performed by state 
personnel, the Health and Human Services Commission is authorized 
to exceed the capital authority limitation provided elsewhere in 
this Act to the extent necessary to acquire hardware, software, 
office space, or other capital items to support any assumed 
contracted duties. The commission must make corresponding 
adjustments in the scope of the affected contract. An increase in a 
capital project is subject to the following requirements:
		1. The commission must notify the Legislative Budget 
Board and the Governor at least 10 days prior to acquiring capital 
equipment.
		2. The commission must include capital acquisitions in 
required financial reporting to the Legislative Budget Board and 
the Governor.
	Justification: This provision would authorize HHSC to exceed 
the agency's FTE cap and capital budget authority during the 
2008-09 biennium for purposes related to eligibility determination 
and related supports that would be performed by state workers in 
lieu of outsourced functions.