HBA-NLM H.B. 2877 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2877 By: Maxey Human Services 10/5/1999 Enrolled BACKGROUND AND PURPOSE The Texas Integrated Enrollment and Services (TIES) project is part of the state's effort to improve the delivery of critical health, human, and employment services by integrating eligibility and enrollment functions of many health and human service agencies. Because TIES is a complex information technology project, one which widely impacts programs across health and human services agencies, this project requires oversight and approval from a variety of federal and state authorities as it is implemented. Prior to the 76th Legislature, the TIES interagency management team recommended that temporary service retirement options be considered by the legislature in order to lessen the impact of staff reductions associated with the implementation of TIES. Implementation of such options would have extended the option for employees of the Texas Department of Human Service (DHS) and the Texas Workforce Commission (TWC) to add three or five years to age and service to allow them to meet the total of 80 combined years to retire because of the elimination of their positions due to privatization or other reductions in services provided by these agencies. In addition, TIES recommended that the option be extended to Texas Department of Health (TDH) workers who might be impacted by privatization or other reductions in services provided by TDH. H.B. 2877 proposes collocation of TIES and other state eligibility and enrollment staff with providers of corresponding health, human, and workforce services. It authorizes a health and human services agency, with the approval of certain entities, to sublease office space to a private service entity or lease office space from a private service entity that provides publicly funded health, human, or workforce services to enable agency eligibility and enrollment personnel to work with the provider under certain provisions. This bill provides that a state agency is delegated the authority to enter into a lease or sublease under this section and is authorized to negotiate the terms of the lease or sublease. This bill also authorizes a state agency to share business resources with a private service entity that enters into a lease or sublease agreement with the agency under this section. H.B. 2877 also includes employees of TDH as persons eligible for the retirement option if their positions are lost because of privatization or other reductions in services provided by TDH. However, the retirement option is not available to an employee of TDH or DHS who receives a cash payment under an incentive program implemented by either agency with respect to certain employees whose positions are eliminated because of privatization or other reductions in services provided by the agency. Nevertheless, these people are entitled to receive state contributions required to provide health coverage for two months after the effective date of their separation from state service. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 531, Government Code, by adding Sections 531.051 and 531.052, as follows: Sec. 531.051. LEASES AND SUBLEASES OF CERTAIN OFFICE SPACE. Authorizes a health and human services agency, with the approval of certain entities, to sublease office space to a private service entity or lease office space from a private service entity that provides publicly funded health, human, or workforce services to enable agency eligibility and enrollment personnel to work with the provider under certain provisions. Provides that Subchapters D (Lease of Public Grounds) and E (Lease of Space in State-Owned Buildings to Private Tenants), Chapter 2165 (State Buildings, Grounds, Property), do not apply to a state agency that leases or subleases office space to a private service entity under this section. Provides that Subchapter B (Procedures for Leasing Space; Lease Contract), Chapter 2167 (Lease of Space for State Agencies), does not apply to a state agency that leases or subleases office space from a private service entity under this section. Provides that a state agency is delegated the authority to enter into a lease or sublease under this section and is authorized to negotiate the terms of the lease or sublease. Authorizes a state agency to share business resources with a private service entity that enters into a lease or sublease agreement with the agency under this section. Sec. 531.052. ASSUMPTION OF LEASES FOR IMPLEMENTATION OF INTEGRATED ENROLLMENT SERVICES INITIATIVE. Authorizes a health and human services agency, with approval of certain entities that administer employment services programs, to assume a lease from an integrated enrollment services initiative contractor or subcontractor for the purpose of implementing the initiative at one development center, one mail center, or 10 or more call or change centers. Provides that Subchapter B, Chapter 2167, Government Code, does not apply to a state agency that assumes a lease from a contractor or subcontractor under this section. SECTION 2. Amends Section 814.1041, Government Code, by amending Subsections (a) and (f) and by adding Subsection (g), as follows: (a) Applies the provisions of this section to employees of the Texas Department of Health (TDH), among other state agencies, whose positions are eliminated for specified reasons. (f) Provides that the retirement option under this section is not available to an employee of TDH or the Texas Department of Human Services (DHS) who receives a cash payment under an incentive program implemented by either agency with respect to certain employees whose positions are eliminated because of privatization or other reductions in services provided by the agency. (g) Provides that this section applies only to positions eliminated by privatization or other reductions in workforce before September 1, 2003, rather than September 1, 1999. Creates this section from existing text. SECTION 3. Amends Article 3.50-2, V.T.C.S. (Texas Employees Uniform Group Insurance Benefits Act), by adding Section 3B, as follows: Sec. 3B. CERTAIN EMPLOYEES MAY ELECT TO PARTICIPATE. Provides that this section applies only to a person who separates from state service and receives a cash payment under an incentive program implemented by DHS or TDH with respect to certain employees whose positions are eliminated as a result of privatization or other reductions in services provided by those agencies. Entitles a person, after the effective date of the person's separation from state service, to receive state contributions required to provide health coverage for two months as described. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.