HBA-NMO H.B. 2641 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2641
By: Gray
Public Health
11/2/1999
Enrolled


BACKGROUND AND PURPOSE 

In 1991, the 72nd Texas Legislature created the Health and Human Services
Commission (HHSC) to coordinate the delivery of health and human services
in this state.  Currently, fourteen state agencies, with an appropriation
of approximately $26 billion for the 1998-1999 biennium, are responsible
for delivering these services.  HHSC is subject to the Texas Sunset Act and
will be abolished on September 1, 1999, unless continued by the
legislature. 

H.B. 2641 continues  HHSC until September 1, 2007.  This bill also
increases HHSC's operational control over health and human services,
including  supervision of the Medicaid program, supervision of information
systems planning and management, management and distribution of certain
federal funds, and implementation of the Texas Integrated Enrollment
Services.  This bill additionally implements several other recommendations
of the Sunset Advisory Commission.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of health and human
services in SECTION 2.01 (Section 531.0055, Government Code) and the Health
and Human Services Commission in SECTION 3.06 (Section 531.034, Government
Code, SECTION 9.08 (Section 533.014, Government Code), and SECTION 9.10
(Section 2.07(c), Chapter 1153, Acts of the 75th Legislature, Regular
Session, 1997). 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  GENERAL POWERS AND DUTIES OF THE HEALTH 
AND HUMAN SERVICES COMMISSION

SECTION 1.01.  Amends Section 531.004, Government Code, to continue the
Health and Human 
Services Commission (HHSC) until September 1, 2007, rather than 1999.

SECTION 1.02.  Amends Section 531.009, Government Code, to require the
commissioner of health and human services (commissioner) to employ a
medical director to provide medical expertise to the commissioner and HHSC.
Amends existing language to conform to standard Sunset language regarding
equal opportunity.  Makes conforming changes. 

SECTION 1.03.  Amends Section 531.011, Government Code, by adding
Subsection (g), to set forth standard Sunset language regarding complaint
information. 

SECTION 1.04.  Amends Subchapter A, Chapter 531, Government Code, by adding
Section 531.014, as follows: 

Sec. 531.014.  CONSOLIDATION OF REPORTS.  Authorizes HHSC to consolidate
any annual or biennial reports required to be made under this chapter
(Health and Human Services Commission) or any other law if the consolidated
report is submitted not later than the earliest deadline for the submission
of any component of the consolidated report, and each person required to
receive a component of the report receives the report and it identifies the
component of the report the person was required to receive. 

SECTION 1.05.  Amends Subchapter A, Chapter 531, Government Code, by adding
Section  531.015, as follows: 

Sec. 531.015.  NEW FACILITIES IN CERTAIN COUNTIES.  Provides that a health
and human services agency is prohibited from establishing a new facility in
a county with a population of less than 200,000 until the agency provides
notification about the facility, its location, and its purpose to each
state representative and state senator that represents all or part of the
county, the county judge that represents the county, and the mayor of any
municipality in which the facility would be located. 

ARTICLE 2.  RELATIONSHIP WITH HEALTH AND HUMAN 
SERVICES AGENCIES 

SECTION 2.01.  Amends Subchapter A, Chapter 531, Government Code, by adding
Section 531.0055, as follows: 

Sec. 531.0055.  COMMISSIONER:  RESPONSIBILITY RELATING TO CERTAIN FUNCTIONS
OF HEALTH AND HUMAN SERVICES AGENCIES.  (a) Defines "agency director" and
"policymaking body."      

(b) Requires HHSC to supervise the administration and operation of the
Medicaid program, including the administration and operation of the
Medicaid managed care system in accordance with Section 531.021
(Administration of Medicaid Program); supervise information systems
planning and management for certain health and human services agencies
(agencies) under Section 531.0273 (Information Resources Planning and
Management; Advisory Committee); monitor and ensure the effective use of
all federal funds received by an agency in accordance with Section 531.028
(Management and Distribution of Funds) and the General Appropriations Act;
and implement Texas Integrated Enrollment Services as required by
Subchapter F (Texas Integrated Enrollment Services). 

(c) Requires HHSC, after implementation of HHSC's duties under Subsection
(b), to implement the powers and duties given to HHSC under Sections
531.0246 (Regional Management of Health and Human Services Agencies),
531.0247 (Annual Plan), 2155.144 (Procurements by Health and Human Services
Agencies), as added by Chapter 1045, Acts of the 75th Legislature, Regular
Session, 1997, and 2167.004 (Leasing Space for Health and Human Services
Agencies). 

(d) Requires HHSC, after the implementation of HHSC's duties under
Subsections (b) and (c), to implement the powers and duties given to HHSC
under Section 531.0248 (Community-Based Support Systems).  Provides that
nothing in the priorities established by this section is intended to limit
the authority of HHSC to work simultaneously to achieve the multiple tasks
assigned to HHSC in this section, when such an approach is beneficial in
the judgment of HHSC.  Requires HHSC to plan and implement an efficient and
effective system of administrative support services for health and human
services agencies.  Defines "administrative support services." 

(e) Requires the commissioner, as necessary to perform the functions
described in Subsections (b), (c), and (d) in implementation of the
policies established by each agency's policymaking body, to manage and
direct the operations of each agency, and supervise and direct the
activities of each agency director. 

(f) Sets forth the operational authority of the commissioner at each agency
for the purposes of Subsection (e). 

(g) Provides that the operational authority of the commissioner for the
purposes of Subsection (e) at each agency includes the authority to adopt
or approve, subject to applicable limitations, any rate of payment or
similar provision required by law to be adopted or approved by the agency. 

 (h) Requires the commissioner, at each agency, to implement a program to
evaluate and supervise the daily operations of the agency.  Provides that
the program must include measurable performance objectives for each agency
director and adequate reporting requirements to permit the commissioner to
perform the duties assigned to the commissioner under this section. 

(i) Authorizes the commissioner, to facilitate the operations of a health
and human services agency in accordance with this section, to delegate a
specific power or duty given in Subsection (f) to an agency director. 

(j) Authorizes the commissioner to adopt rules to implement the
commissioner's authority under this section. 

(k) Requires the commissioner and each agency director to enter into a
memorandum of understanding that clearly defines the responsibilities of
the agency director and the commissioner, establishes the program of
evaluation and supervision of daily operations required by Subsection (h),
and describes each delegation of a power or duty made under Subsection (i). 

(l) Provides that a policymaking body has the authority provided by law to
adopt policies and rules governing the delivery of services to persons who
are served by the agency and the rights and duties of persons who are
served or regulated by the agency.  Requires the commissioner and the
policymaking body to enter into a memorandum of understanding that clearly
defines the policymaking authority of the policymaking body and the
operational authority of the commissioner. 

Sec. 531.0056.  EMPLOYMENT OF AGENCY DIRECTOR.  (a) Provides that this
section applies only to an agency director employed by the commissioner. 

(b) Authorizes the employment of an agency director employed by the
commissioner only with the concurrence of the agency's policymaking body
and the approval of the governor. 

(c) Requires the commissioner and agency director to enter into a
memorandum of understanding that clearly defines the responsibilities of
the agency director and authorizes the commissioner and agency director to
establish terms and conditions of employment in the memorandum of
understanding. 

(d) Requires that the terms of the memorandum of understanding outline
specific performance objectives, as defined jointly by the commissioner and
the policymaking body, to be fulfilled by the agency director. 

(e) Requires the commissioner, based upon the performance objectives
outlined in the memorandum of understanding, to perform an employment
evaluation of the agency director. 

(f) Requires the commissioner to submit the evaluation, along with any
recommendation regarding the employment of the agency director, to the
agency's policymaking body and the governor not later than January 1 of
each even-numbered year. 

(g) Requires the policymaking body to consider the evaluation in a meeting
of the policymaking body and take necessary action, if any, not later than
90 days after the date of the receipt of the evaluation. 

(h) Provides that an agency director employed by the commissioner serves at
the pleasure of the commissioner but authorizes the discharge of the agency
director only with the concurrence of the agency's policymaking body. 

Sec. 531.0057.  AUTHORITY OVER RULEMAKING AT HEALTH AND HUMAN SERVICES
AGENCY.  Provides that a health and human services agency, notwithstanding
any other law, must notify the commissioner before proposing a rule.
Provides that a rule adopted in violation of this section is void.
Authorizes the commissioner to waive the requirement of this section as
necessary to permit emergency rulemaking in accordance with Section
2001.034 (Emergency Rulemaking). 

SECTION 2.02. Amends Section 21.004, Human Resources Code, to make
conforming changes as the changes relate to the appointment of the
commissioner of human services.   

SECTION 2.03.  Amends Chapter 22, Human Resources Code, by adding Section
22.0001, as follows: 

Sec. 22.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Provides that the commissioner  has the powers and duties
relating to the Board of Human Services and commissioner of human services
as provided by Section 531.0055, Government Code.  Provides that Section
531.0055 controls, to the extent a power or duty given to the Board of
Human Services or the commissioner of human services by another law
conflicts with Section 531.0055.   

SECTION 2.04.  Amends Section 40.027(a), Human Resources Code, to make
conforming changes as the changes relate to the appointment of the
executive director of the Department of Protective and Regulatory Services. 

SECTION 2.05.  Amends Subchapter C, Chapter 40, Human Resources Code, to
add Section 40.0505, as follows: 

Sec. 40.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes conforming changes as the changes relate to the Board of
Protective and Regulatory Services and the executive director of the
Department of Protective and Regulatory Services. 

SECTION 2.06.  Amends Chapter 73, Human Resources Code, by adding Section
73.0045, as follows: 

Sec. 73.0045.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the board of the
Interagency Council on Early Childhood Intervention and the executive
director of the Interagency Council on Early Childhood Intervention. 

SECTION 2.07.  Amends Sections 73.0052(b) and (c), Human Resources Code, to
make conforming changes as the changes relate to the appointment of the
executive director of the Interagency Council on Early Childhood
Intervention.  

SECTION 2.08.  Amends Chapter 81, Human Resources Code, by adding Section
81.0055, as follows: 

Sec. 81.0055.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas Commission
for the Deaf and Hard of Hearing and its executive director. 

SECTION 2.09.  Amends Sections 81.008(a) and (b), Human Resources Code, to
make conforming changes as the changes relate to the appointment of the
executive director of the Texas Commission for the Deaf and Hard of
Hearing. 

SECTION 2.10.  Amends Sections 91.012(a), (b), and (d), Human Resources
Code, to make conforming changes as the changes relate to the appointment
of the executive director of the Texas Commission for the Blind. 

SECTION 2.11.  Amends Subchapter C, Chapter 91, Human Resources Code, by
adding Section 91.0205, as follows: 
 
Sec. 91.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas Commission
for the Blind and its executive director. 

SECTION 2.12.  Amends Section 101.004(a), Human Resources Code, to make
conforming changes as the changes relate to the appointment of the
executive director of aging. 

SECTION 2.13.  Amends Subchapter B, Chapter 101, Human Resources Code, by
adding Section 101.0205, as follows: 

Sec. 101.0205.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas Board on
Aging and its executive director of aging. 

SECTION 2.14.  Amends Section 111.017, Human Resources Code, to make
conforming changes as the changes relate to appointment of the chief
administrative officer of the Texas Rehabilitation Commission. 

SECTION 2.15.  Amends Subchapter C, Chapter 111, Human Resources Code, by
adding Section 111.0505, as follows: 

Sec. 111.0505.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas
Rehabilitation Commission and its chief administrative officer. 

SECTION 2.16.  Amends Subchapter C, Chapter 141, Human Resources Code, by
adding Section 141.0405, as follows: 

Sec. 141.0405.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas Juvenile
Probation Commission and its executive director. 

SECTION 2.17.  Amends Sections 11.012(a), (b), (c), and (d), Health and
Safety Code, to make conforming changes as the changes relate to the
appointment of the commissioner of public health. 

SECTION 2.18.  Amends Subchapter A, Chapter 12, Health and Safety Code, by
adding Section 12.0001, as follows: 

Sec. 12.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas Board of
Health and the commissioner of public health. 

SECTION 2.19.  Amends Section 461.011(a), Health and Safety Code, to make
conforming changes as the changes relate to the appointment of the
executive director of the Texas Commission on Alcohol and Drug Abuse. 

SECTION 2.20.  Amends Chapter 461, Health and Safety Code, by adding
Section 461.0115, as follows: 

Sec. 461.0115.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas Commission
on Alcohol and Drug Abuse and its executive director. 

SECTION 2.21.  Amends Sections 532.011(a), (b), (d), and (f), Health and
Safety Code, to make conforming changes as the changes relate to the
appointment of the commissioner of the Texas Department of Mental Health
and Mental Retardation. 

SECTION 2.22.  Amends Subchapter A, Chapter 533, Health and Safety Code, by
adding Section 533.0001, as follows: 
 
Sec. 533.0001.  POWERS AND DUTIES OF COMMISSIONER OF HEALTH AND HUMAN
SERVICES.  Makes a conforming change as it relates to the Texas Department
of Mental Health and Mental Retardation and its commissioner. 

SECTION 2.23.  Defines "agency director" and "policymaking body."  Makes
application of this Act prospective, as it relates to the term of an agency
director.  Makes conforming changes.   

ARTICLE 3.  SPECIFIC FUNCTIONS OF HEALTH AND HUMAN 
SERVICES COMMISSION

SECTION 3.01.  Amends Section 531.021(b), Government Code, to require HHSC
to plan and direct the Medicaid program in each agency that operates a
portion of the Medicaid program, including the management of the Medicaid
managed care system and the development, procurement, management, and
monitoring of contracts necessary to implement the Medicaid managed care
system.  Requires HHSC to establish requirements for and define the scope
of the ongoing evaluation of the Medicaid managed care system in
conjunction with the Texas Health Care Information Council under Section
108.0065, Health and Safety Code.  Makes conforming changes. 

SECTION 3.02.  Amends Subchapter B, Chapter 531, Government Code, by adding
Sections 531.0246-531.0249, as follows: 

Sec.  531.0246.  REGIONAL MANAGEMENT OF HEALTH AND HUMAN SERVICES AGENCIES.
Authorizes HHSC, subject to Section 531.0055(c), to require an agency,
under the direction of HHSC, to locate all or a portion of the agency's
employees and programs in the same building as another agency or at a
location near or adjacent to the location of another agency; ensure that
the agency's location is accessible to disabled employees and agency
clients; and consolidate agency support services, including clerical and
administrative support services and information resources support services,
with support services provided to or by another agency. 

Sec. 531.0247.  ANNUAL BUSINESS PLAN.  Requires HHSC, subject to Section
531.0055(c), to develop and implement an annual business services plan for
each health and human services region that establishes performance
objectives for all agencies providing services in the region and measures
agency effectiveness and efficiency in achieving those objectives. 

Sec.  531.0248.  COMMUNITY-BASED SUPPORT SYSTEMS.  (a) Requires HHSC,
subject to Section 531.0055(d), to assist communities in this state in
developing comprehensive, community-based support systems for health and
human services.  Requires HHSC, at the request of a community, to provide
resources and assistance to the community to enable the community to
identify and overcome institutional barriers to developing more
comprehensive community support systems, including barriers that result
from the policies and procedures of agencies; and to develop a system of
blended funds to allow the community to customize services to fit
individual community needs. 

(b) Requires an agency, at the request of HHSC, to provide resources and
assistance to a community as necessary to perform HHSC's duties under
Subsection (a). 

(c) Requires an agency that receives or develops a proposal for a community
initiative to submit the initiative to HHSC for review and approval.
Requires HHSC to review the initiative to ensure that the initiative is
consistent with other similar programs offered in communities and does not
duplicate other services provided in the community. 

(d) Requires HHSC, in implementing this section, to consider models used in
other service delivery systems, including the mental health and mental
retardation system. 

Sec. 531.0249.  ADVISORY COMMITTEE FOR LOCAL GOVERNMENTAL ENTITIES.
Requires HHSC to appoint an advisory committee composed of representatives
of governmental entities under Section 531.022(e) (Coordinated Strategic
Plan for Health and  Human Services).  Sets forth the duties of the
advisory committee.  Prohibits a member of the advisory committee from
receiving compensation, but entitles a member to reimbursement of the
travel expenses incurred by the member while conducting the business of the
committee, as provided by the General Appropriations Act.  Provides that
the advisory committee in not subject to Chapter 2110 (State Agency
Advisory Committees), Government Code. 

SECTION 3.03.  Amends Sections 531.0271 and 531.0273, Government Code, as
follows: 

Sec.  531.0271.  HEALTH AND HUMAN SERVICES AGENCIES OPERATING BUDGETS.
Authorizes HHSC, within the limits established by and subject to the
General Appropriations Act, to transfer amounts appropriated to agencies
among the agencies to enhance the receipt of federal money under the
federal funds management system established under Section 531.028; achieve
efficiencies in the administrative support functions of the agencies; and
perform the functions assigned to the commissioner under Section 531.0055.
Deletes language that requires HHSC to review and comment on the operating
budgets of each agency and the transfer of funds. 

Sec. 531.0273.  New Title: INFORMATION RESOURCES PLANNING AND MANAGEMENT;
ADVISORY COMMITTEE.  Provides that HHSC is responsible for strategic
planning for information resources at each health and human services agency
and requires HHSC to direct the management of information resources at each
agency.  Requires HHSC to develop a coordinated strategic plan for
information resources management, establish information resources
management policies, procedures and technical standards that ensure
compliance with them, and review and approve the information resources
management and biennial operating plan of each agency.  Requires HHSC, not
later than December 15 of each even-numbered year, to file a coordinated
information resources strategic plan with the governor, lieutenant
governor, and the speaker of the house of representatives.  Requires HHSC
to appoint an advisory committee.  Sets forth the composition and
appointment of the advisory committee.  Requires the advisory committee to
advise HHSC on certain information resource issues.  Prohibits a member of
the advisory committee from receiving compensation, but entitles a member
to reimbursement of the travel expenses incurred by the member while
conducting the business of the committee, as provided by the General
Appropriations Act.  Provides that the advisory committee is not subject to
Chapter 2110.  Makes conforming changes. 

SECTION 3.04.  Amends Section 531.028, Government Code, as follows:

Sec. 531.028. New Title:  MONITORING AND EFFECTIVE MANAGEMENT OF FUNDS.
Requires HHSC, within the limits established by and subject to the General
Appropriations Act, to be responsible for planning for, and managing the
use of, all federal funds in a manner that maximizes the federal funding
available to the state while promoting the delivery of services.  Requires
the commissioner to establish a federal money management system to
coordinate and monitor the use of federal money that is received by
agencies to ensure that the money is spent in the most efficient manner.
Requires the commissioner to address certain federal money management
issues.  Requires HHSC to prepare an annual report with respect to the
results of the implementation of this section. Provides that the report
must identify strategies to maximize the receipt and use of federal funds
and to improve federal funds management.  Requires HHSC to file the report
with the governor, the lieutenant governor, and the speaker of the house of
representatives not later than December 15 of each year.  Deletes existing
text. 

SECTION 3.05.  Amends Section 531.0312, Government Code, as follows:

Sec. 531.0312.  TEXAS INFORMATION AND REFERRAL NETWORK.  (a) Provides that
the Texas Information and Referral Network (network) must include
information relating to transportation services provided to clients of
state and local agencies.   

(b) Requires HHSC to cooperate with the Records Management Interagency
Coordinating  Council (council) and the General Services Commission (GSC)
to establish a single method of categorizing information about health and
human services to be used by the council and the network.  Requires the
network, in cooperation with the council and GSC, to ensure that
information relating to health human services is included in each
residential telephone directory, and the single method of categorizing
information about health and human services is used in each residential
telephone directory.   

(c) Requires an agency to provide the council, in addition to the network,
with information about the health and human services provided by the agency
for inclusion in the statewide information and referral network,
residential telephone directories described by Subsection (b), and any
other materials produced under the direction of the network or the council.
Requires the agency to provide the information in the format required by
the network or the council and requires the agency to update the
information at least quarterly or as required by the network or the
council. 

SECTION 3.06.  Amends Section 531.034, Government Code, by amending
Subsection (b) and adding Subsection (d), as follows: 

(b) Requires HHSC to review agency rules to ensure that the rules do not
discourage marriage or encourage divorce.   

(d) Requires HHSC to adopt rules to establish criteria for determining, as
required by Subsection (b), whether an agency rule discourages marriage or
encourages divorce.    

SECTION 3.07.  Redesignates Section 441.053(j), Government Code, as
Subsection (j) of Section 441.203, Government Code, as added by Chapter
873, Acts of the 75th Legislature, Regular Session, 1997,  and amends it,
to require the council to cooperate with the network under Section 531.0312
to ensure that the council and the network use a single method of defining
and organizing information about health and human services. 

SECTION 3.08.  Redesignates Section 9.12, Chapter 655, Acts of the 74th
Legislature, Regular Session, 1995, as amended by Section 1, Chapter 1116,
Acts of the 75th Legislature, Regular Session, 1997, as Subchapter F,
Chapter 531, Government Code, and amends it, as follows: 

SUBCHAPTER F.  TEXAS INTEGRATED ENROLLMENT SERVICES

Sec. 531.191.  INTEGRATED ELIGIBILITY DETERMINATION.  Makes conforming and
nonsubstantive changes. 

Sec. 531.192.  COORDINATION WITH LEGISLATIVE OVERSIGHT COMMITTEE. Requires
HHSC to develop and implement the plan required by Section 531.191 in
consultation and coordination with the Texas Integrated Enrollment Services
Legislative Oversight Committee (legislative oversight committee)
established by Section 531.202. Requires HHSC, before awarding a contract
under Section 531.191, to provide the detailed cost-benefit analysis
described by that subsection to the legislative oversight committee.
Authorizes HHSC to coordinate with the legislative oversight committee to
hold any hearing as required under Section 531.191.  Provides that this
section expires on September 1, 2002. 

SECTION 3.09.  Redesignates Subchapter D, Chapter 531, Government Code, as
added by Chapter 1116, Acts of the 75th Legislature, Regular Session, 1997,
as Subchapter G, Chapter 531, Government Code, and the subchapter heading
is amended as follows: 

  SUBCHAPTER G. New Title:  LEGISLATIVE OVERSIGHT FOR TEXAS INTEGRATED 
ENROLLMENT SERVICES

SECTION 3.10.  Amends Section 531.203(a), Government Code, to make a
conforming change. 

SECTION 3.11.  Amends Section 2155.144, Government Code, as added by
Chapter 1045, Acts of the 75th Legislature, Regular Session, 1997, as
follows: 
 
(a)-(h) Makes no change.

(i) Requires HHSC to develop a single statewide risk analysis procedure.
Requires each agency to comply with the procedure.  Sets forth the
necessary factors for the procedure. 

(j) Requires HHSC to publish a contract management handbook that
establishes consistent contracting policies and practices to be followed by
agencies.  Authorizes the handbook to contain standard contract provisions
and formats for agencies to incorporate as applicable in their contracts. 

(k) Requires HHSC, in cooperation with the comptroller, to establish a
central contract management database that identifies each contract made
with an agency.  Authorizes HHSC to use the database to monitor agency
contracts, and authorizes agencies to use the database in contracting.
Requires a state agency to send to HHSC in the manner prescribed by HHSC
the information the agency possesses that HHSC requires for inclusion in
the database. 

(l) Authorizes HHSC to review the procurement and rate-setting procedures
of each agency to ensure that amounts paid to contractors are consistent
and represent the best value for the state.  Authorizes HHSC to disapprove
a procurement and rate-setting procedure of an agency.  Prohibits an agency
from using a procurement or rate-setting procedure that has been
disapproved by HHSC. 

(m) Requires HHSC to develop and implement a statewide plan to ensure that
each entity that contracts with an agency and any subcontractor of the
entity complies with the accessibility requirements of the Americans with
Disabilities Act  of 1990 (42 U.S.C. Section 12101 et seq.). 


(n) Redesignated from Subsection (j).

(o) Requires HHSC to prepare an annual report that assesses the compliance
of each agency with the requirements imposed under this section and that
identifies any material risk to the state or to the clients of the agency
that results from the agency's procurement and contracting practices.
Authorizes HHSC to request the assistance of the state auditor in preparing
the report.  Requires the state auditor to conduct reviews as necessary to
assess compliance under this subsection as determined by the Legislative
Audit Committee. Requires HHSC to file the report with the governor, the
lieutenant governor, and the speaker of the house of representatives not
later than December 15 of each year. 

(p) Redesignated from Subsection (k).

SECTION 3.12.  Amends Section 2167.004, Government Code, to prohibit the
General Services Commission from entering into an emergency lease to serve
the needs of an agency unless the emergency lease is entered into under
criteria adopted by HHSC in consultation with the General Services
Commission.  Sets forth the criteria.  Redefines "health and human services
agency." 

SECTION 3.13.  Requires HHSC, not later than January1, 2000, to adopt rules
required by Section 531.034(d), Government Code. 

SECTION 3.14.  Requires HHSC to submit a report, not later than December
15, 2000, relating to the delivery of mental health and substance abuse
services in this state to the governor, the lieutenant governor, the
speaker of the house of representatives, and the committees of the house of
representatives and senate identified under Section 531.171, Government
Code .  Sets forth the required contents of the report.  Requires an agency
or any other state agency that provides mental health or substance abuse
services to provide HHSC any information, other than confidential
information, requested by HHSC relating to mental health and substance
abuse services provided by the agency.  Provides that this section expires
December 31, 2000.  

SECTION 3.15.  Requires HHSC to submit a report by December 15, 2000,
relating to regulatory  programs conducted by the Texas Department of
Health to the governor, the lieutenant governor, the speaker of the house
of representatives, and the committees of the house of representatives and
senate identified under Section 531.171, Government Code.  Sets forth the
factors HHSC must consider in preparing the report.  Provides that this
section expires on December 31, 2000.   

SECTION 3.16.  Requires HHSC to assess the benefits of consolidating
support services provided to agencies in agency headquarters and in
regional offices and develop a proposed plan and schedule for colocating
offices and consolidating support services in accordance with Section
531.0246. Requires HHSC to report the results of the assessment by
September 1, 2000, to the governor, the lieutenant governor, the speaker of
the house of representatives, and the committees of the house of
representatives and senate identified under Section 531.171, Government
Code. 

SECTION 3.17.  Requires HHSC, the General Services Commission, and the
Records Management Interagency Coordinating Council to ensure that
information about health and human services presented in the format
required by Section 531.0312, Government Code, is available for publication
in residential telephone directories to be distributed to the public after
December 1, 2000.  Requires HHSC, the General Services Commission, and the
Records Management Interagency Coordinating Council to report by December
31, 2000, to the governor, the lieutenant governor, the speaker of the
house of representatives, and the committees of the house of
representatives and senate identified under Section 531.171, Government
Code. 

SECTION 3.18.  Requires the state auditor, notwithstanding Section
2155.144(o), Government Code, to conduct initial reviews as necessary to
assess compliance under that subsection and complete those reviews not
later than September 1, 2001. 

SECTION 3.19.  Requires HHSC to study the feasibility of a subacute care
pilot project.  Requires the Texas Department of Human Services (DHS) and
the Texas Department of Health (TDH) to cooperate with and assist HHSC in
this study.  Requires HHSC, in conducting the study, to consider certain
subjects.  Requires HHSC, not later than September 1, 2000, to submit a
report on the feasibility of a subacute care pilot project to the governor,
lieutenant governor, the speaker of the house of representatives, and the
chair of each legislative committee with jurisdiction over long-term care.
Provides that this section expires on September 1, 2001. 

ARTICLE 4.  INVESTIGATIONS OF FRAUD, ABUSE, AND EXPLOITATION

SECTION 4.01.  Defines "commission" and "working group."

SECTION 4.02.  Requires HHSC, except as provided by Section 4.05 of this
article, to identify each agency that may be required to conduct an
investigation of abuse, neglect, or exploitation of a client of the agency
at a facility operated by or under contract with the agency and any agency
covered under Section 261.401 (Agency Investigation), Family Code, or
Section 48.082 (Investigation of Reports in Other State Agencies), and to
convene a working group of representatives of those agencies and advocates
for the affected clients. 

SECTION 4.03.  Requires the working group, not later than August 1, 2000,
to develop certain proposed definitions, standards, and procedures. 

SECTION 4.04.  Requires HHSC to present a report on the results of the
working group to the governor, the lieutenant governor, and the speaker of
the house of representatives not later than November 1, 2000.  Provides
that the report must include any recommendations, based on the results of
the working group, for changes in law HHSC considers necessary. 

SECTION 4.05.  Prohibits the working group from including a representative
of the Texas Juvenile Probation Commission and from including
recommendations relating to facilities operated by or under contract with
the Texas Juvenile Probation Commission. 

ARTICLE 5.  GUARDIANSHIP ADVISORY BOARD

SECTION 5.01.  Amends Sections 531.122(b) and (d), Government Code, to
include three public  representatives, and one representative of the
Department of Protective and Regulatory Services in the composition of the
Guardianship Advisory Board (advisory board).  Provides that the public
representatives and representatives of the Department of Protective and
Regulatory Services are appointed by the commissioner and the Board of
Protective and Regulatory Services, respectively. Makes conforming changes. 

SECTION 5.02.  Amends Subchapter D, Chapter 531, Government Code, as added
by Chapter 1033, Acts of the 75th Legislature, Regular Session, 1997, by
adding Section 531.1235, as follows: 

Sec.  531.1235.  ADVISORY BOARD; ADDITIONAL DUTIES; STATEWIDE GUARDIANSHIP
SYSTEM.  Requires the advisory board to advise HHSC and the Department of
Protective and Regulatory Services with respect to a statewide guardianship
program and develop a proposal for a statewide guardianship program, and
review and comment on the guardianship policies of all agencies and
recommend changes to the policies the advisory board considers necessary or
advisable.  Requires the advisory board to prepare an annual report with
respect to the recommendations of the advisory board.  Requires the
advisory board to file the report with HHSC, the Department of Protective
and Regulatory Services, the governor, the lieutenant governor, and the
speaker of the house of representatives by December 15, of each year. 

SECTION 5.03.  Amends Section 531.124, Government Code, by adding
Subsection (c), to require the advisory board to annually review and
comment on the minimum standards adopted under this section and the plan
implemented under this section and is required to include its conclusions
in the report submitted under Section 531.1235. 

SECTION 5.04.  Requires the Board of Protective and Regulatory Services to
appoint the additional members of the advisory board by October 1, 1999. 

ARTICLE 6.  HEALTH AND HUMAN SERVICES OFFICE
OF COMMUNITY TRANSPORTATION SERVICES

SECTION 6.01.  Amends Chapter 131, Human Resource Code, as follows:

CHAPTER 131.  New title:  HEALTH AND HUMAN SERVICES OFFICE 
OF COMMUNITY TRANSPORTATION SERVICES

Sec. 131.001.  OFFICE.  Provides that the Health and Human Services Office
of Community Transportation Service (office), rather than Transportation
and Planning Office, is in HHSC. 

Sec. 131.002.  DEFINITIONS.  Defines "commissioner," "health and human
services agency," and "office." 

Sec. 131.003.  POWERS AND DUTIES.  Requires the office, with the assistance
of the commissioner to exercise certain powers and duties, including
creating a statewide coordination plan regarding a system of transportation
for clients of agencies that provides for coordinated community-based
services; establishing a standardized system of reporting and accounting to
be used by all agencies providing client transportation; ensuring that
information reported under a standardized system of reporting and
accounting is available through the Texas Information and Referral Network;
and coordinating the use of private, nonprofit entities that provide
services at little or no cost beyond reimbursement for certain expenses.
Redesignated from Section 131.002.  Makes conforming changes. 

Sec. 131.004.  OFFICE STAFF.  Redesignated from Section 131.003.  Makes
conforming changes. 

Sec. 131.005.  REPORTING AND ACCOUNTING SYSTEM.  Requires each agency that
provides, purchases, or otherwise funds transportation services for clients
to comply with the standardized system of reporting and accounting, make
changes to enable compliance, and submit an annual report of compliance.  
 
Sec. 131.006.  IMPLEMENTATION OF STATEWIDE COORDINATION PLAN. Requires the
office, in order to implement the statewide coordination plan, to review
the rules, policies, contracts, grants, and funding mechanisms relating to
transportation services of each agency that provides client transportation
services to determine their consistency with the plan;  make
recommendations for revisions of those rules, policies, contracts, grants,
and funding mechanisms inconsistent with the plan; and submit a biennial
report to the governor, secretary of state,  Legislative Budget Board, and
the commissioner relating to the results of the review. 

Sec. 131.007.  ADVISORY COMMITTEE ON COORDINATED TRANSPORTATION. Authorizes
the office to create an advisory committee consisting of representatives of
state agencies, transportation agencies, and nonprofit consumer groups. 

Sec. 131.008.  MEMORANDUM OF UNDERSTANDING.  Requires HHSC and the Texas
Department of Transportation (TxDOT) to enter into a memorandum of
understanding relating to functions performed by each agency that relate to
the duties of the office. Requires the agencies to include provisions in
the memorandum of understanding necessary to ensure that the agencies do
not have duplicative authority, responsibilities, or activities in the area
of transportation services for clients of health and human services
agencies. Provides that the memorandum must include certain provisions. 

SECTION 6.02.  Amends Section 459.003, Transportation Code, by amending
Subsection (c) and adding Subsection (e), as follows: 

(c) Makes a conforming change.

(e) Requires TxDOT to compile a statewide database to document
transportation expenses and track the number of instances in which social
service contract dollars are actually awarded to a transit operator as a
result of compliance with this section.  Requires TxDOT to make the
information in the database available to HHSC. 

SECTION 6.03.  Requires the office and the commissioner, not later than
January 1, 2001, to create the statewide coordination plan required by
Section 131.003, Human Resources Code.    

ARTICLE 7.  EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES

SECTION 7.01.  Amends Subchapter B, Chapter 481, Government Code, by adding
Section 481.025, as follows: 

Sec.  481.025.  EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY PROGRAM.
Provides that the Texas Department of Economic Development (department) is
responsible for administering the Empowerment Zone and Enterprise Community
grant program in this state.  Requires the department to cooperate with
appropriate federal and local agencies as necessary to administer the grant
program. 

SECTION 7.02.  Provides that effective September 1, 1999, administration of
the Empowerment Zone and Enterprise Community grant program in this state
is transferred from HHSC to the department.  Requires the commissioner of
health and human services and the governing board of the Texas Department
of Economic Development to enter in to a memorandum of understanding as
necessary to implement the transfer required by this section. 

ARTICLE 8.  HEALTH CARE INFORMATION COUNCIL

SECTION 8.01.  Amends Section 531.001(4), Government Code, to redefine
"health and human services agencies." 

SECTION 8.02.  Amends section 108.002(4), Health and Safety Code, to
redefine "data." 

 SECTION 8.03.  Amends Chapter 108, Health and Safety Code, by adding
Section 108.0065, as follows: 

Sec.  108.0065.  POWERS AND DUTIES OF COUNCIL RELATING TO MEDICAID MANAGED
CARE.  (a) Defines "commission" and "Medicaid managed care organization."  
(b) Authorizes HHSC to direct the Texas Health Care Information Council
(council) to collect data under this chapter with respect to Medicaid
managed care organizations. Requires the council to coordinate the
collection of the data with the collection of data for health benefit plan
providers, but authorizes the council, with approval of HHSC, to collect
data in addition to the data otherwise required of health benefit  plan
providers.   
(c) Requires each Medicaid managed care organization to provide the data
required by the council in the form required by the council or, if the data
is also being submitted to HHSC or Medicaid operating agency, in the form
required by the HHSC or Medicaid operating agency. 

(d) Provides that dissemination of data collected under this section is
subject to Sections 108.010 (Collection and Dissemination of Provider
Quality Data), 108.011 (Dissemination of Public Use Data and Council
Publications), 108.012, (Computer Access to Data), 108.013 (Confidentiality
and General Access to Data), 108.014 (Civil Penalty), and 108.0141
(Criminal Penalty),  Health and Safety Code. 

(e) Requires HHSC to analyze the data collected in accordance with this
section and sets forth the required use of the data. 

(f) Requires HHSC to report, no later than October 1 of each even-numbered
year, to HHSC, the governor, the lieutenant governor, and the speaker of
the house of representative with respect to the HHSC's conclusions under
Subsection (e), recommendations for the improvement to the Medicaid managed
care system, and any recommendations for legislation. 

(g) Authorizes the report made under Subsection (f) to be consolidated with
any report made under Section 108.006(a)(9) (relating to assessing the
quality of health care services). 

(h) Authorizes HHSC, using existing funds, to contract with an entity to
comply with the requirements under Subsections (e) and (f). 


ARTICLE 9. MEDICAID

SECTION 9.01.  Amends Subchapter B, Chapter 12, Health and Safety Code, by
adding Section 12.0123, as follows: 

Sec. 12.0123.  EXTERNAL AUDITS OF CERTAIN MEDICAID CONTRACTORS.  (a)
Defines "Medicaid contractor." 

(b) Requires TDH to contract with an independent auditor to perform annual
independent external financial and performance audits of any Medicaid
contractor used by TDH in TDH's operation of a part of the state Medicaid
program. 

(c) Requires TDH to ensure that audit procedures related to financial
audits and performance audits are used consistently in audits under this
section. 

(d) Provides that an audit required by this section must be completed
before the end of the fiscal year immediately following the fiscal year for
which the audit is performed. 

SECTION 9.02.  Amends Section 533.003, Government Code, to require HHSC, in
awarding contracts to managed care organizations, to consider the ability
of organizations to process Medicaid  claims electronically. 

SECTION 9.03.  Amends Section 533.004, Government Code, by amending
Subsection (a) and adding Subsection (e), as follows: 

(a) Makes conforming changes.

(e) Requires HHSC, in providing health care services through Medicaid
managed care to recipients in a health care service region, with the
exception of the Harris service area for the STAR Medicaid managed care
program, to contract with a managed care organization that meets certain
criteria. 

SECTION 9.04.  Amends Section 533.005, Government Code, to provide that a
contract between a managed care organization and HHSC for the organization
to provide health care services to recipients must contain a requirement
that HHSC, on a certain date, inform the organization of the recipient's
Medicaid certification, rather than recertification, date. 

SECTION 9.05.  Amends Section 533.006(a), Government Code, to require HHSC
to require that each managed care organization that contracts with HHSC to
provide health care services to recipients in a region seek participation
in the organization's provider network from each specialized pediatric
laboratory in the region, including those laboratories located in
children's hospitals, in addition to certain other health care providers. 

SECTION 9.06.  Amends Section 533.007(e), Government Code, to make a
conforming change. 

SECTION 9.07.  Amends Section 533.0075, Government Code, to require HHSC to
develop and implement an expedited process for determining eligibility for
and enrolling pregnant women and newborn infants in managed care plans,
ensure immediate access to prenatal services and newborn care for pregnant
women and newborn infants enrolled in managed care plans, and temporarily
assign Medicaid-eligible newborn infants to the traditional fee-for-service
component of the state Medicaid program for a period not to exceed the
earlier of 60 days or the date on which DHS has completed the newborn's
Medicaid eligibility determination. 

SECTION 9.08.  Amends Subchapter A, Chapter 533, Government Code, by adding
Sections 533.012-533.015, as follows: 

Sec. 533.012.  MORATORIUM ON IMPLEMENTATION OF CERTAIN PILOT PROGRAMS;
REVIEW; REPORT.  (a) Prohibits HHSC from implementing certain Medicaid
pilot programs in a region for which HHSC has not met certain guidelines. 

(b) Requires HHSC to review any outstanding administrative and financial
issues with respect to certain Medicaid pilot programs, review the impact
of the Medicaid managed care delivery system on certain subjects, and
evaluate the feasibility of developing a separate reimbursement methodology
for public hospitals under a Medicaid managed care delivery system. 

(c) Requires HHSC, in performing its duties under Subsection (b), to seek
input from the state Medicaid managed care advisory committee.  Authorizes
HHSC to coordinate the review required under Subsection (b) with any other
study or review HHSC is required to complete. 

(d) Authorizes HHSC, notwithstanding Subsection (a), to implement certain
Medicaid pilot programs in regions described by Subsection (a) if HHSC
finds that outstanding administrative and financial issues with respect to
the implementation of those programs in health care service regions have
been resolved, and implementation of those programs in a region described
by Subsection (a) would benefit both recipients and providers. 

(e) Requires HHSC, not later than November 1, 2000, to submit a report to
the governor and the legislature that conveys certain information and makes
recommendations with  respect to certain Medicaid programs and systems. 

(f) Prohibits this section, to the extent possible, from being construed to
affect the duty of HHSC to plan the continued expansion of certain Medicaid
pilot programs in health care service regions described by Subsection (a)
after July 1, 2001. 

(g) Provides that this section expires July 1, 2001.

Sec. 533.013.  PREMIUM PAYMENT RATE DETERMINATION; REVIEW AND COMMENT.  (a)
Requires HHSC, in determining premium payment rates paid to a managed care
organization under a managed care plan, to consider costs and types of
health care services, the number of plans and recipients, and the adequacy
of specified premiums and fees.  

(b) Requires HHSC,  in determining the maximum premium payment rates paid
to a managed care organization that is licensed under the Texas Health
Maintenance Organization Act, to consider and adjust for the regional
variation in costs of services under the traditional fee-for-service
component of the state Medicaid program, utilization patterns, and other
factors that influence the potential for cost savings, with certain
prohibitions.   

(c) Requires that the premium payment rate paid to a managed care
organization that is licensed under the Texas Health Maintenance
Organization Act be established by a competitive bid process but prohibits
the rate from exceeding the maximum premium payment rates established by
HHSC under Subsection (b). 

(d) Provides that Subsection (b) applies only to a managed care
organization with respect to certain Medicaid managed care programs
implemented in a health care service region after June 1, 1999. 

Sec. 533.014.  PROFIT SHARING.  Requires HHSC to adopt rules regarding the
sharing of profits earned by a managed care organization through managed
care plan providing health care services under a contract with HHSC under
this chapter.  Requires the deposit of any amount received by the state
under this section in the general revenue fund for the purpose of funding
the state Medicaid program. 

Sec. 533.015.  COORDINATION OF EXTERNAL OVERSIGHT ACTIVITIES.  Requires
HHSC to coordinate all external oversight activities to minimize
duplication of oversight of managed care plans under the state Medicaid
program and disruption of operations under those plans. 

SECTION 9.09.  Amends Chapter 533, Government Code, by adding Subchapter C,
as follows: 

SUBCHAPTER C.  STATEWIDE ADVISORY COMMITTEE
 
Sec. 533.041.  APPOINTMENT AND COMPOSITION.  Requires HHSC to appoint a
state Medicaid managed care advisory committee.  Sets forth the composition
of the advisory committee.  Provides that the advisory committee must
include a member of each regional Medicaid managed care advisory committee
appointed by HHSC under Subchapter B. 

Sec. 533.042.  MEETINGS.  Requires the advisory committee to meet at least
quarterly and provides that it is subject to Chapter 551 (Open Meetings),
Government Code. 

Sec. 533.043.  POWERS AND DUTIES.  Requires the advisory committee to
recommend to and assist HHSC and disseminate information to regional
advisory committees. 

Sec. 533.044.  OTHER LAW.  Provides that the advisory committee, except as
provided by this subchapter, is subject to Chapter 2110, Government Code. 

 SECTION 9.10.  Amends Section 2.07(c), Chapter 1153, Acts of the 75th
Legislature, Regular Session, 1997, to require HHSC to study the
feasibility of authorizing providers to reenroll in the program online or
through other electronic means.  Requires HHSC, if it determines that an
online or other electronic method of reenrollment for providers is
feasible, to develop and implement the electronic method of reenrollment
for providers not later than September 1, 2000.  Provides that a provider
must reenroll in the state Medicaid program or make the necessary contract
modifications not later than March 31, 2000, rather than September 1, 1999,
to retain eligibility to participate in the program, unless HHSC implements
under this subsection an electronic method of reenrollment for providers,
in which event a provider must reenroll or make the contractual
modifications not later than September 1, 2000.  Authorizes HHSC, by rule,
to extend a reenrollment deadline prescribed by this subsection if a
significant number of providers, as determined by HHSC, have not met the
reenrollment requirements by the applicable deadline. 

SECTION 9.11.  Requires HHSC, not later than January 1, 2000, to implement
the expedited process for determining eligibility for and enrollment of
certain recipients in Medicaid managed care plans required by Section
533.0075, Government Code.  Requires HHSC to report quarterly to the
standing committees of the senate and house of representatives with primary
jurisdiction over Medicaid managed care regarding the status of the
expedited process described by this section.  Requires HHSC to submit
quarterly reports under this section until HHSC determines the process is
fully implemented and functioning successfully. 

SECTION 9.12.  Provides that this article, if no specific appropriation for
it is provided in the General Appropriations Act, has no effect.        

ARTICLE 10.  FINANCIAL ASSISTANCE AND SERVICE PROGRAMS

SECTION 10.01.  Amends Subchapter A, Chapter 31, Human Resources Code, by
adding Section 31.0127, as follows: 

Sec. 31.0127.  COORDINATION OF SERVICES TO CERTAIN CLIENTS.  (a) Provides
that HHSC is the state agency designated to coordinate between DHS and
another state agency providing child care services, Temporary Assistance
for Needy Families work programs, and Food Stamp Employment and Training
services to an individual or family who has been referred for programs and
services by DHS.  Sets forth the purpose of this section. 

(b) Requires HHSC to require a state agency providing program services
described in Subsection (a) to comply with Chapter 531 (Health and Human
Services Commission), Government Code, solely for the promulgation of rules
relating to the programs described by Subsection (a); the expenditure of
funds relating to the programs described by Subsection (a), within certain
legal limitations; data collection and reporting relating to the programs
described by Subsection (a); and evaluation of services relating to the
programs described by Subsection (a). 

(c) Requires DHS and a state agency providing program services described by
Subsection (a) to jointly develop and adopt a memorandum of understanding,
subject to the approval of HHSC.  Sets forth the required contents of the
memorandum of understanding. 

(d) Requires HHSC, not later than January 15 of each odd-numbered year, to
provide a report to the governor, lieutenant governor, and the speaker of
the house of representatives that makes certain evaluations and
recommendations. 

(e) Provides that Subsection (b) does not authorize HHSC to require a state
agency, other than a health and human services agency, to comply with
Chapter 531, Government Code, except as provided by Subsection (b).
Provides that the authority granted under Subsection (b) does not affect
Section 301.041 (Executive Director; Agency Personnel), Labor Code. 

(f) Provides that a state agency is not required to comply with this
section, if the change  in law made by this section with regard to a
program or service conflicts with federal law or would have the effect of
invalidating a waiver granted under federal law. 

(g) Provides that this section does not authorize HHSC to change the
allocation or disbursement of funds allocated to the state under the
Workforce Investment Act of 1998 in a manner that would result in the loss
of exemption status. 

(h) Provides that this section does not authorize HHSC to transfer programs
to or from DHS and another agency serving clients of the Temporary
Assistance for Needy Families program or the federal food stamp program
administered under Chapter 33 (Nutritional Assistance Programs) without
explicit legislative authorization. 

(i) Prohibits HHSC and any state agency providing program services
described by Subsection (a) from promulgating rules in accordance with
Subsection (b) without holding a public hearing. 

SECTION 10.02.  Requires HHSC and each state agency subject to Section
31.0127, Human Resources Code, to develop and adopt the memorandum of
understanding required by that section. 

ARTICLE 11.  LEGISLATIVE OVERSIGHT

SECTION 11.01.  Amends Chapter 531, Government Code, by adding Subchapter
E, as follows: 

SUBCHAPTER E.  HEALTH AND HUMAN SERVICES 
LEGISLATIVE OVERSIGHT

Sec. 531.171.  COMMITTEE DUTIES.  (a) Requires the standing or other
committees of the house of representatives and the senate that have
jurisdiction over HHSC and other agencies relating to the implementation of
this chapter, as identified by the speaker of the house of representatives
and the lieutenant governor to perform certain duties.  

(b) Requires HHSC to provide copies of all required reports to the
committees and provide the committees with copies of proposed rules before
the rules are published in the Texas Register.  Requires a health and human
services agency, at the request of a committee or the commissioner, to
provide other information to the committee, and report on agency progress
in implementing statutory directives identified by the committee and the
directives of HHSC  

SECTION 11.02.  Requires the committees of the house of representatives and
senate identified under Section 531.171, Government Code, to report to the
governor, lieutenant governor, and the speaker of the house of
representatives not later than December 31, 2000.  Sets forth the required
contents of the report. 

ARTICLE 12.  APPLICATION OF ACT

SECTION 12.01.  Prohibits HHSC, if a change in law made by this Act with
regard to any program or service conflicts with federal law, from requiring
an agency to comply with the change with regard to that program or service,
unless an appropriate federal waiver has been granted. 

SECTION 12.02.  Requires HHSC, in consultation with the appropriate
policymaking body, to ensure that certain obligations and guidelines are
met in the application of this Act. 

ARTICLE 13. REPEALER; EFFECTIVE DATE; EMERGENCY

SECTION 13.01.  Repealer:  Section 441.053(k) (defines "member agency"),
Government Code; Section 531.0272 (Federal Funds), Government Code; and
Section 532.011(c) (regarding the commissioner of the Texas Board of Mental
Health and Mental Retardation), Health and Safety Code. 

 SECTION 13.02.  Effective date: September 1, 1999.

SECTION 13.03.  Emergency clause.