By: Nelson S.B. No. 127 (King of Taylor) A BILL TO BE ENTITLED AN ACT relating to the creation of certain funding formulas and policies and to certain public health evaluations by the Department of State Health Services. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 1001, Health and Safety Code, is amended by adding Sections 1001.078 and 1001.079 to read as follows: Sec. 1001.078. FUNDING FORMULA; PUBLIC HEALTH EVALUATION. (a) In this section: (1) "Health service region" means a public health region designated under Section 121.007. (2) "Local health department" means a local health department established under Subchapter D, Chapter 121. (3) "Local health unit" has the meaning assigned by Section 121.004. (4) "Public health district" means a health district established under Subchapter E, Chapter 121. (b) The department, in collaboration with the Public Health Funding and Policy Committee established under Section 117.051, shall: (1) develop funding formulas for federal and state funds appropriated to the department to be allocated to local health departments, local health units, public health districts, and health service regions' regional headquarters, based on population, population density, disease burden, social determinants of health, local efforts to prevent disease, and other relevant factors as determined by the department and committee; (2) evaluate the feasibility and benefits of placing a cap on the percentage of public health funds that can be used on administrative costs at local health departments, local health units, public health districts, and health service regions' regional headquarters; and (3) evaluate public health functions provided by the department, local health departments, local health units, public health districts, and health service regions' regional headquarters and determine if another entity, including a private entity, can provide those functions more effectively. Sec. 1001.079. PUBLIC HEALTH THREAT POLICY. (a) In this section, "local health department" means a local health department established under Subchapter D, Chapter 121. (b) The department shall create a policy to allow a local health department flexibility, to the extent allowed under federal law, in the use of personnel and other resources during disaster response activities, outbreaks, and other appropriate public health threats. SECTION 2. Not later than October 1, 2014, the Department of State Health Services shall: (1) develop the funding formulas required by Subdivision (1), Subsection (b), Section 1001.078, Health and Safety Code, as added by this Act; (2) submit to the governor, the lieutenant governor, the speaker of the house of representatives, and appropriate standing committees of the legislature a report on the findings required by Subdivisions (2) and (3), Subsection (b), Section 1001.078, Health and Safety Code, as added by this Act; and (3) create the policy required by Section 1001.079, Health and Safety Code, as added by this Act. SECTION 3. This Act takes effect September 1, 2013.