HBA-DMD, NLM H.B. 1402 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1402 By: Gray Human Services 7/30/1999 Enrolled BACKGROUND AND PURPOSE The Texas Rehabilitation Commission (commission) is the state's primary authority for the rehabilitation of people with disabilities, with an emphasis on vocational rehabilitation to help persons with physical or mental disabilities seek and maintain employment. In addition, the commission operates related programs to provide assistance to disabled persons in need of intensive support to obtain or maintain employment. The commission is also responsible for providing other programs which focus on increasing the ability of persons with severe disabilities to live more independently in their home or community, and for determining initial eligibility for Social Security disability benefits. The commission is subject to the Texas Sunset Act and will be abolished on September 1, 1999, unless continued in existence by the legislature. H.B. 1402 continues the existence of the commission by establishing a new expiration date of September 1, 2011, and makes statutory modifications recommended by the Sunset Advisory Commission. This bill clarifies the powers and duties of the commission and provides for better guidance and monitoring of the commission's vocational rehabilitation counselors. In addition, this bill requires the commission to target extended rehabilitation services to those individuals who are not eligible to receive similar services from the Texas Department of Mental Health and Mental Retardation or another agency. H.B. 1402 also requires the commission to develop and implement agency-wide procurement procedures to ensure compliance with state law governing best-value procurement practice; and develops a rate-setting methodology tying rates to established rates for medical services and health care services. This bill requires the commission to meet health care industry standards in the approval of medical services for clients and to conduct an analysis of the risk associated with funding medical procedures and maintain a risk management plan. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the board of the Texas Rehabilitation Commission in SECTION 7 (Section 111.0161, Human Resources Code), SECTION 9 (Section 111.018, Human Resources Code), SECTION 20 (Section 111.0552, Human Resources Code), SECTION 22 (Section 111.0581, Human Resources Code), and SECTION 23 (Sections 111.070 and 111.071, Human Resources Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 111.002, Human Resources Code, by amending Subdivision (7) and by adding Subdivision (8), as follows: (7) Redefines "extended rehabilitation services program" which provides for rehabilitation services to an individual with a significant, rather than severe, disability. (8) Defines "board" as the board of the Texas Rehabilitation Commission. SECTION 2. Amends Section 111.012, Human Resources Code, to establish that the Texas Rehabilitation Commission (commission) is subject to the Texas Sunset Act and changes the expiration date of this chapter to September 1, 2011, rather than September 1, 1999. SECTION 3. Amends Section 111.013(b), Human Resources Code, to update standard Sunset language by replacing the word "handicap" with "disability." SECTION 4. Amends Section 111.0131, Human Resources Code, to update standard Sunset language specifying the grounds for removal of a board member and to require notification of the board's presiding officer, the governor, and the attorney general if knowledge that a potential ground for removal exists. Makes conforming and nonsubstantive changes. SECTION 5. Amends Subchapter B, Chapter 111, Human Resources Code, by adding Section 111.0132, as follows: Sec. 111.0132. TRAINING OF BOARD MEMBERS. Requires the members of the board to complete training before assuming their duties. Provides that the training program must provide the person with information regarding the creation of the commission and the board, programs operated by the commission, and the role and functions of the commission, and other statutory requirements and procedures. Provides that the person appointed to the board is entitled to reimbursement for travel expenses incurred in attending the training program. SECTION 6. Amends Section 111.016, Human Resources Code, as follows: Sec. 111.016. New title: REHABILITATION COUNCIL OF TEXAS. Provides that the Rehabilitation Council of Texas is created in accordance with the federal Rehabilitation Act Amendments of 1998, Pub. L. 105-220. SECTION 7. Amends Subchapter B, Chapter 111, Human Resources Code, by adding Section 111.0161, as follows: Sec. 111.0161. ADVISORY COMMITTEES REPORT TO BOARD. Requires each advisory committee to report to and advise the board on its activities, and to work with the commissioner, board, and staff to perform its duties. Requires the board to adopt rules to implement this section. SECTION 8. Amends Section 111.017, Human Resources Code, to clarify that the commissioner is appointed by the board and serves at the pleasure of the board, and that the commissioner is the executive head of the agency. Deletes existing languages regarding the responsibility of the commissioner to serve as secretary to the board, as well as the chief administrative officer of the agency. Makes nonsubstantive changes. SECTION 9. Amends Section 111.018, Human Resources Code, as follows: Sec. 111.018. ADMINISTRATIVE REGULATIONS AND POLICIES. (a) Requires the board to adopt policies and rules to carry out the purposes of this chapter and to supervise the commissioner's administration of this chapter. Clarifies that the commissioner implements policies, rather than makes regulations. Updates standard Sunset language requiring the board to clearly separate its policymaking responsibilities from the management responsibilities of the commissioner and staff of the commission. Authorizes the board to delegate to the commissioner or his designee any power or duty imposed on the board except the power to adopt rules. Provides that a delegation of the board's authority must be adopted by the board in a public meeting. Updates standard Sunset language to require the commissioner or commissioner's designee to implement an equal employment opportunity policy that is updated annually, reviewed by the Commission on Human Rights, and filed with the governor's office. Deletes existing policy statement requirements. Redesignates existing Subsections (b)-(f) to Subsections (c)-(g). Makes conforming and nonsubstantive changes. SECTION 10. Amends Section 111.019, Human Resources Code, as follows: Sec. 111.019. PLANNING. Requires the commission, rather than the commissioner, to make long-range and intermediate plans for the program and make decisions regarding the allocation of resources in carrying out the plans. Makes nonsubstantive changes. SECTION 11. Amends Section 111.021, Human Resources Code, by adding Subsection (c), to require the commission to post on the Internet reports and performance data required to be reported to the state or federal government. Requires the commission to remove confidential information contained in the report or performance data before posting the report or performance data to the Internet. SECTION 12. Amends Section 111.022, Human Resources Code, to require the commission, rather than the commissioner, to make certification for disbursement of funds. SECTION 13. Amends Section 111.023, Human Resources Code, to require the board, rather than the commissioner, to take other action as necessary or appropriate to carry out the purposes of this chapter. SECTION 14. Amends Section 111.024, Human Resources Code, to authorize the commissioner to delegate responsibilities as necessary to any officer or employee, with the approval of the board. Makes nonsubstantive changes. SECTION 15. Amends Section 111.025, Human Resources Code, to define "Texas trade association." Updates standard Sunset language to prohibit board members or their spouses and exempt employees or their spouses from being an officer or employee of a related Texas trade association. Prohibits registered lobbyists from serving as a member of the board or from being employed as the board or commission's general counsel. Deletes existing text regarding the employment or board membership of an officer, employee, or paid consultant of an organization that receives funds from the commission for the provision of rehabilitative services. SECTION 16. Amends Section 111.026, Human Resources Code, to include standard Sunset language to require the commission to maintain information on written complaints filed with the commission. Requires the commission to notify the parties regarding the commission's policies and procedures for complaint investigation. Requires the commission to notify the parties regarding the status of the complaint quarterly until disposition. SECTION 17. Amends Section 111.052, Human Resources Code, to require the commission, rather than the commissioner, to determine eligibility standards for services under a vocational rehabilitation program, an extended rehabilitation service program, or other program established to provide rehabilitative services. Makes a conforming change. SECTION 18. Amends Subchapter C, Chapter 111, Human Resources Code, by adding Section 111.0525, as follows: Sec. 111.0525. COORDINATION WITH STATE AGENCIES. Requires the commission to target extended rehabilitation services to those individuals who are not eligible to receive similar services from the Texas Department of Mental Health and Mental Retardation (TDMHMR) or another agency. Requires the commission to enter into an agreement with TDMHMR to reduce duplication and fragmentation of employment services by defining each agency's roles and responsibilities. Require the commission to establish a formal referral process with the Texas Workforce Commission (TWC) for services by TWC or local workforce development agencies. SECTION 19. Amends Subchapter C, Chapter 111, Human Resources Code, by adding Section 111.0551, as follows: Sec. 111.0551. PROVISION OF MEDICAL SERVICES. Requires the commission to meet health care industry standards in the approval of medical services for clients, including need for second opinions; adopt a system of quality control that includes medical consultation; where applicable, include an assessment of whether the medical services will benefit the client's ability to return to work; and conduct an analysis of the risk associated with funding medical procedures and maintain a risk management plan. SECTION 20. Amends Subchapter C, Chapter 111, Human Resource Code, by adding Section 111.0552, as follows: Sec. 111.0552. RATES FOR MEDICAL SERVICES. Requires the board to adopt rules and standards governing the determination of rates the commission will pay for medical services and health care services. Requires the board to annually adopt a schedule of rates by comparing the proposed rate schedule to other cost based rates, including Medicaid and Medicare rates, and requires the board to document the reasons why the adopted rate is necessary for any rate adopted that exceeds the Medicaid or Medicare rate. Requires the board to hold a public hearing prior to adopting rates to allow the public to present comments. SECTION 21. Amends Subchapter C, Chapter 111, Human Resources Code, by adding Section 111.0553, as follows: Sec. 111.0553. PROCUREMENT METHODS. Requires the commission to develop and implement agency-wide procurement procedures to ensure compliance with state law governing best-value purchasing; document that a best-value review of vendors has occurred; document the reasons for selecting a vendor; negotiate price discounts with high-volume vendors; consolidate purchases with other agencies; and provide public notification to potential vendors of planned commission purchases. Requires nothing in this section to be construed to limit the commission's ability to procure goods and services from persons with disabilities. SECTION 22. Amends Subchapter C, Chapter 111, Human Resources Code, by adding Section 111.0581, as follows: Sec. 111.0581. CRIMINAL HISTORY RECORD INFORMATION. (a) Requires the board by rule to establish criteria for denying a person's application for employment based on criminal history background information obtained under Section 411.117, Government Code. (b) Requires the commission to treat all criminal history record information as privileged and confidential and for commission use only. SECTION 23. Amends Chapter 111, Human Resources Code, by adding Subchapter D, as follows: SUBCHAPTER D. VOCATIONAL REHABILITATION SERVICES Sec. 111.070. PROVISION OF SERVICES. Requires the board by rule to establish and maintain guidelines, consistent with state and federal regulations, for providing vocational rehabilitation services. Provides that these guidelines include a system of organization for the delivery of services; eligibility requirements for services; requirements for the rehabilitation planning process; the types of services that may be provided to a client; and requirements for client participation in the costs of vocational rehabilitation services. Requires the board to assess the effectiveness of the program annually. Sec. 111.071. TRAINING AND SUPERVISION OF COUNSELORS. Requires the commission to provide specific guidance to counselors in selecting vocational objectives; documenting a client's impediment to employment; selecting rehabilitation services that are reasonable to achieve a client's vocational objective; measuring client progress toward the objective; and determining eligibility of employed and unemployed applicants for services using criteria defined by a rule adopted by the board to document substantial underemployment or risk of losing employment. Requires the board by rule to require monitoring and oversight of counselor performance and decision making. Sec. 111.072. CLIENT ORIENTATION MATERIALS. Requires the commission to develop and distribute at intake client orientation materials for the vocational rehabilitation program that include information on the commission's decision making criteria. Sec. 111.073. TRANSITION PLANNING. Requires the commission to assess the statewide need for services necessary to prepare students with disabilities for a successful transition to employment; establish collaborative relationships with each school district and with education service centers to the maximum extent possible within available resources; and develop strategies to assist vocational rehabilitation counselors in identifying and reaching students in need of transition planning. SECTION 24. Amends Section 302.021, Labor Code, by adding Subsection (d), to require the division of workforce development of TWC, in a manner consistent with federal law, to promote and monitor services provided to persons with disabilities, including those persons referred to the Texas Rehabilitation Commission. SECTION 25. Amends Section 411.117, Government Code, to entitle the commission to obtain from the Department of Public Safety (department) criminal history record information maintained by the department that relates to a person who is an applicant for employment whose potential duties include direct contact with clients of the commission. SECTION 26. Effective date: September 1, 1999. SECTION 27. Requires the board to adopt rules by January 1, 2000, as necessary to implement the changes made by this Act. Makes application of Section 111.0132, Human Resources Code, as added by this Act, prospective. SECTION 28. Emergency clause.