HBA-PDH H.B. 937 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 937 By: Maxey Public Education 3/23/1999 Introduced BACKGROUND AND PURPOSE Currently, two different state agencies administer federally-funded food service programs. The Texas Education Agency (TEA) administers the National School Lunch Program and the School Breakfast Program for public schools and the Texas Department of Human Services (DHS) administers the Summer Food Service Program. Recent federal legislation (H.R. 3874) requires a state agency that administers any combination of child nutrition programs to maintain a single application and reimbursement procedure for all of the programs. H.B. 937 transfers the administration of the Summer Food Services Program from the DHS to the TEA, allowing school districts to take advantage of a single application and reimbursement procedure for all three programs. Additionally, the TEA will be required to seek sponsors for the summer food programs in order to make the program available to as many children as possible. DHS also administers the federally funded Child and Adult Care Food Program (CACFP). Currently, DHS will not accept any form electronically. H.B. 937 requires the DHS to accept applications and other pertinent information electronically and to accept electronically created forms, thus easing the burden on the sponsoring organizations. This bill also requires a change or clarification in DHS's interpretation of policy to be reviewed by the CACFP Advisory Committee. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly granted to the Texas Education Agency in SECTION 1 (Subchapter B, Chapter 7, Section 7.025(e), Education Code) and to the Texas Secretary of State in SECTION 4 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 7.021, Education Code, by adding Subsection (d), to require the Texas Education Agency (TEA) to administer federal nutrition programs as otherwise required by law. SECTION 2. Amends Subchapter B, Chapter 7, Education Code, by adding Section 7.025, as follows: Sec. 7.025. SUMMER FOOD SERVICE PROGRAM. (a) Requires the TEA to ensure that children have access to meals provided through the federal Summer Food Service Program (SFSP) if at least 60 percent of the children in a school district are educationally disadvantaged. Requires the TEA to make the program available to as many eligible children as possible by obtaining SFSP sponsors. Requires the commissioner of education (commissioner) to designate a TEA employee to coordinate activities necessary to comply with this subsection. (b) Requires the TEA to annually identify each school district that qualifies for the SFSP. Requires the TEA to notify, by November 30 of each year, each identified district without a SFSP sponsor of the district's responsibility to provide or arrange for a SFSP the following year. (c) Requires each notified school district to respond to the TEA and indicate the district's intent to operate a SFSP or request a waiver by January 31 of the following year. (d) Authorizes the commissioner to waive the requirement that a school district operate a SFSP if the district demonstrates a specific enumerated hardship and works with the TEA to identify other persons and agencies in the district who were contacted as potential providers or sites for the SFSP. (e) Requires the TEA to adopt and publish rules and procedures for obtaining a waiver. Provides that a waiver is valid for one year. (f) Requires the TEA to continue efforts to locate an alternative SFSP sponsor if a school district has requested a waiver and has been unable to provide a list of possible sponsors to the TEA. (g) Requires school district facilities to be used for the SFSP unless the district provides documentation, verified by the TEA, showing that the cost to the district exceeds the funds available for the SFSP, or the TEA verifies that the SFSP will operate at adequate alternative facilities. (h) Requires the TEA to coordinate and combine administrative procedures of the school district and TEA to create a single administrative system for all nutritional programs. (i) Requires the TEA to provide to the Governor's Office of Budget and Planning, the Legislative Budget Board, and the state auditor, a report identifying the school districts that have become SFSP sponsors, the school districts failing to comply with the SFSP requirements, and the costs, in addition to federal funds, incurred by the school districts and the state to comply with the SFSP, by November 1 of each even-numbered year. (j) Requires the TEA to notify members of the legislature and standing committees of the senate and house of representatives that have primary jurisdiction over the TEA about the filing of the report. SECTION 3. Amends Chapter 33, Human Resources Code, by adding Section 33.026, as follows: Sec. 33.026. CHILD AND ADULT CARE FOOD PROGRAM. (a) Requires the Texas Department of Human Services (DHS) to permit Child and Adult Care Food Program (CACFP) sponsors and participants to submit applications and other required information electronically, unless prohibited by federal law. (b) Authorizes the DHS to develop the necessary computer systems or use a computer system developed or made available by a sponsoring organization or other appropriate person to accommodate electronic transmissions. (c) Requires the DHS to submit any proposed action that alters current DHS rules, policy, or policy interpretation relating to the federal CACFP, to the DHS's advisory committee unless immediate action is required by federal law. Requires the DHS to submit the action for comment at the earliest possible date if immediate action is required by federal law. (d) Requires the DHS to provide written notice to each sponsoring organization of any modification or clarification of DHS rules, policies, or policy interpretations relating to the federal CACFP. (e) Authorizes the DHS advisory committee on the federal CACFP to conduct public hearings in accordance with DHS procedures, refer issues relating to the CACFP to the Texas Board of Human Services for discussion, and recommend modifications to DHS training programs for sponsoring organizations and other persons participating in the CACFP. SECTION 4. (a) Provides that by January 1, 2000, all powers, duties, functions, activities, funds, obligations, contracts, property, and records of the DHS related to the federal SFSP be transferred to the TEA and that all employees of the DHS who primarily perform duties related to the federal SFSP become employees of the TEA. (b) Requires the DHS and TEA by interagency agreement to transfer electronic information and automated information systems related to the SFSP from the DHS to the TEA, or make other arrangements for the use of these systems by the TEA, and minimize the changes in the geographic employment locations of persons transferred from the DHS to the TEA. (c) Provides that a rule or form adopted by the DHS remains in effect under the TEA until altered by the TEA. Authorizes the secretary of state to adopt rules as necessary to expedite the implementation of this subsection. (d) Provides that a reference in law to the DHS that relates to the SFSP means the TEA. SECTION 5.Makes application of this Act prospective. SECTION 6.Repealer: Section 33.024 (Summer Food Service Program), Human Resources Code. SECTION 7. Provides that this Act takes effect September 1, 1999, except for Sections 2 and 6, which take effect January 1, 2000. SECTION 8.Emergency clause.