Texas 2015 84th Regular

Texas Senate Bill SB200 Comm Sub / Bill

Filed 04/07/2015

                    By: Nelson, et al. S.B. No. 200
 (In the Senate - Filed March 4, 2015; March 4, 2015, read
 first time and referred to Committee on Health and Human Services;
 April 7, 2015, reported adversely, with favorable Committee
 Substitute by the following vote:  Yeas 8, Nays 0; April 7, 2015,
 sent to printer.)
Click here to see the committee vote
 COMMITTEE SUBSTITUTE FOR S.B. No. 200 By:  Schwertner


 A BILL TO BE ENTITLED
 AN ACT
 relating to the continuation and functions of the Health and Human
 Services Commission and the provision of health and human services
 in this state.
 ARTICLE 1.  CONSOLIDATION OF HEALTH AND HUMAN SERVICES SYSTEM
 SECTION 1.01.  (a)  Chapter 531, Government Code, is amended
 by adding Subchapter A-1 to read as follows:
 SUBCHAPTER A-1.  CONSOLIDATION OF HEALTH AND HUMAN SERVICES SYSTEM
 Sec. 531.02001.  CONSOLIDATION OF HEALTH AND HUMAN SERVICES
 SYSTEM GENERALLY. In accordance with this subchapter, the
 functions of each state agency and entity subject to abolition
 under Section 531.0202 are consolidated in the commission through a
 two-phase transfer of those functions under which:
 (1)  the initial transfers required under Section
 531.0201 occur:
 (A)  on or after September 1, 2015; and
 (B)  not later than September 1, 2016; and
 (2)  the final transfers required under Section
 531.02011 occur:
 (A)  on or after September 1, 2018; and
 (B)  not later than September 1, 2019.
 Sec. 531.02002.  MEANING OF FUNCTION IN RELATION TO
 TRANSFERS.  For purposes of the transfers mandated by this
 subchapter, "function" includes a power, duty, program, or activity
 of a state agency or entity.
 Sec. 531.0201.  PHASE ONE:  INITIAL TRANSFERS TO COMMISSION.
 On the dates specified in the transition plan required under
 Section 531.0204, the functions of each state agency or entity
 subject to abolition under Section 531.0202, other than the
 functions that will be transferred under Section 531.02011, are
 transferred to the commission as provided by this subchapter.
 Sec. 531.02011.  PHASE TWO:  FINAL TRANSFERS TO COMMISSION.
 On the dates specified in the transition plan required under
 Section 531.0204, the following functions are transferred to the
 commission as provided by this subchapter:
 (1)  the functions of the Department of Family and
 Protective Services related to the following:
 (A)  child protective services, including
 services that are required by federal law to be provided by this
 state's child welfare agency; and
 (B)  adult protective services, other than
 investigations of the alleged abuse, neglect, or exploitation of an
 elderly person or person with a disability:
 (i)  in a facility operated or in a facility
 or by a person licensed, certified, or registered by a state agency;
 or
 (ii)  by a provider that has contracted to
 provide home and community-based services; and
 (2)  the public health functions of the Department of
 State Health Services, including health care data collection and
 maintenance of the Texas Health Care Information Collection
 program.
 Sec. 531.02012.  RELATED TRANSFERS; EFFECT OF
 CONSOLIDATION. (a)  All of the following that relate to a function
 that is transferred under Section 531.0201 or 531.02011 are
 transferred to the commission on the date the related function is
 transferred as specified in the transition plan required under
 Section 531.0204:
 (1)  all obligations and contracts;
 (2)  all property and records in the custody of the
 state agency or entity from which the function is transferred;
 (3)  all funds appropriated by the legislature; and
 (4)  all complaints, investigations, or contested
 cases that are pending before the state agency or entity from which
 the function is transferred or a governing person or entity of the
 state agency or entity, without change in status.
 (b)  A rule, policy, or form adopted by or on behalf of a
 state agency or entity subject to abolition under Section 531.0202
 that relates to a function that is transferred under Section
 531.0201 or 531.02011 becomes a rule, policy, or form of the
 commission upon transfer of the related function and remains in
 effect:
 (1)  until altered by the commission; or
 (2)  unless it conflicts with a rule, policy, or form of
 the commission.
 (c)  A license, permit, or certification in effect that was
 issued by a state agency or entity subject to abolition under
 Section 531.0202 is continued in effect as a license, permit, or
 certification of the commission upon transfer of the function to
 which the license, permit, or certification relates until the
 license, permit, or certification expires, is suspended or revoked,
 or otherwise becomes invalid.
 Sec. 531.0202.  ABOLITION OF STATE AGENCIES AND ENTITIES.
 (a)  Each of the following state agencies and entities is abolished
 on a date that is within the period prescribed by Section
 531.02001(1), that is specified in the transition plan required
 under Section 531.0204 for the abolition of the state agency or
 entity, and that occurs after all of the state agency's or entity's
 functions have been transferred to the commission in accordance
 with Section 531.0201:
 (1)  the Department of Aging and Disability Services;
 (2)  the Department of Assistive and Rehabilitative
 Services;
 (3)  the Health and Human Services Council;
 (4)  the Aging and Disability Services Council;
 (5)  the Assistive and Rehabilitative Services
 Council;
 (6)  the Family and Protective Services Council;
 (7)  the State Health Services Council;
 (8)  the Office for the Prevention of Developmental
 Disabilities; and
 (9)  the Texas Council on Autism and Pervasive
 Developmental Disorders.
 (b)  Each of the following state agencies is abolished on a
 date that is within the period prescribed by Section 531.02001(2),
 that is specified in the transition plan required under Section
 531.0204 for the abolition of the state agency or entity, and that
 occurs after all of the state agency's or entity's functions have
 been transferred to the commission in accordance with Sections
 531.0201 and 531.02011:
 (1)  the Department of Family and Protective Services;
 and
 (2)  the Department of State Health Services.
 (c)  The abolition of a state agency or entity listed in
 Subsection (a) or (b) and the transfer of its functions and related
 obligations, rights, contracts, records, property, and funds to the
 commission as provided by this subchapter do not affect or impair an
 act done, any obligation, right, order, permit, certificate, rule,
 criterion, standard, or requirement existing, or any penalty
 accrued under former law, and that law remains in effect for any
 action concerning those matters.
 Sec. 531.0203.  HEALTH AND HUMAN SERVICES TRANSITION
 LEGISLATIVE OVERSIGHT COMMITTEE. (a)  In this section,
 "committee" means the Health and Human Services Transition
 Legislative Oversight Committee established under this section.
 (b)  The Health and Human Services Transition Legislative
 Oversight Committee is created to facilitate the transfer of
 functions from the state agencies and entities subject to abolition
 under Section 531.0202 to the commission as provided by this
 subchapter with a minimal negative effect on the delivery of
 services provided by those state agencies and entities.
 (c)  The committee is composed of 11 voting members, as
 follows:
 (1)  four members of the senate, appointed by the
 lieutenant governor;
 (2)  four members of the house of representatives,
 appointed by the speaker of the house of representatives; and
 (3)  three members of the public, appointed by the
 governor.
 (d)  The executive commissioner serves as an ex officio,
 nonvoting member of the committee.
 (e)  A member of the committee serves at the pleasure of the
 appointing official.
 (f)  The lieutenant governor and the speaker of the house of
 representatives shall each designate a presiding co-chair from
 among their respective appointments.
 (g)  A member of the committee may not receive compensation
 for serving on the committee but is entitled to reimbursement for
 travel expenses incurred by the member while conducting the
 business of the committee as provided by the General Appropriations
 Act.
 (h)  The committee shall:
 (1)  facilitate the transfer of functions from the
 state agencies and entities subject to abolition under Section
 531.0202 to the commission as provided by this subchapter with a
 minimal negative effect on the delivery of services provided by
 those agencies and entities;
 (2)  with assistance from the commission and the state
 agencies and entities subject to abolition under Section 531.0202,
 advise the executive commissioner concerning:
 (A)  the functions to be transferred under this
 subchapter and the funds and obligations that are related to the
 functions;
 (B)  the transfer of the functions and related
 records, property, funds, and obligations by the state agencies and
 entities as provided by this subchapter; and
 (C)  the reorganization of the commission's
 administrative structure in accordance with this subchapter,
 Sections 531.0055, 531.00561, 531.00562, and 531.008, and other
 provisions enacted by the 84th Legislature that become law; and
 (3)  meet:
 (A)  during the period between the establishment
 of the committee and December 31, 2016, at least quarterly at the
 call of either chair, in addition to meeting at other times as
 determined appropriate by either chair;
 (B)  during the period between January 1, 2017,
 and December 31, 2019, at least semiannually at the call of either
 chair, in addition to meeting at other times as determined
 appropriate by either chair; and
 (C)  during the period between January 1, 2020,
 and August 31, 2023, at least annually at the call of either chair,
 in addition to meeting at other times as determined appropriate by
 either chair.
 (i)  Chapter 551 applies to the committee.
 (j)  The committee shall submit a report to the governor,
 lieutenant governor, and speaker of the house of representatives
 not later than December 1 of each even-numbered year. The report
 must include an update on the progress of and issues related to:
 (1)  the transfer of functions from the state agencies
 and entities subject to abolition under Section 531.0202 to the
 commission as provided by this subchapter; and
 (2)  the reorganization of the commission's
 administrative structure in accordance with this subchapter,
 Sections 531.0055, 531.00561, 531.00562, and 531.008, and other
 provisions enacted by the 84th Legislature that become law.
 (k)  The committee is abolished September 1, 2023.
 Sec. 531.0204.  TRANSITION AND WORK PLAN FOR IMPLEMENTATION
 OF CONSOLIDATION. (a)  The transfers of functions under Sections
 531.0201 and 531.02011 to the commission must be accomplished in
 accordance with a transition plan developed by the executive
 commissioner. The transition plan must:
 (1)  include an outline of the commission's reorganized
 structure, including its divisions, in accordance with this
 subchapter, Sections 531.00561, 531.00562, and 531.008, and other
 provisions enacted by the 84th Legislature that become law; and
 (2)  include a broad plan and schedule that, subject to
 the periods prescribed by Section 531.02001, specify the dates on
 which:
 (A)  the transfers under Sections 531.0201 and
 531.02011 are to be made;
 (B)  each state agency or entity subject to
 abolition under Section 531.0202 is abolished; and
 (C)  each division of the commission is created
 and the division's director is appointed.
 (b)  In developing the transition plan, the executive
 commissioner shall hold public hearings in various geographic areas
 in this state before submitting the plan to the Health and Human
 Services Transition Legislative Oversight Committee, the governor,
 and the Legislative Budget Board as required by Subsection (d).
 (c)  Within the periods prescribed by Section 531.02001, the
 commission shall begin administering the respective functions
 assigned to the commission under Sections 531.0201 and 531.02011,
 as applicable.  The assumption of the administration of the
 functions must be accomplished in accordance with a detailed work
 plan designed by the commission to ensure that the transfer and
 provision of health and human services in this state are
 accomplished in a careful and deliberative manner.  The work plan
 must include details regarding the movement and specific timelines
 for the transfer of functions performed by the state agencies and
 entities subject to abolition under Section 531.0202 to the
 commission under this subchapter.
 (d)  The executive commissioner shall submit the transition
 plan and the work plan to the Health and Human Services Transition
 Legislative Oversight Committee, the governor, and the Legislative
 Budget Board not later than December 1, 2015.  The committee shall
 comment on and make recommendations to the executive commissioner
 regarding any concerns or adjustments to the transition plan the
 committee determines appropriate.  The executive commissioner may
 not finalize any transition or work plan until the executive
 commissioner has reviewed and considered the comments and
 recommendations of the committee regarding the transition plan.
 (e)  The executive commissioner shall publish in the Texas
 Register:
 (1)  the transition plan developed under this section;
 (2)  any adjustments to the transition plan recommended
 by the Health and Human Services Transition Legislative Oversight
 Committee;
 (3)  whether the executive commissioner adopted or
 otherwise incorporated the recommended adjustments; and
 (4)  if the executive commissioner did not adopt a
 recommended adjustment, the justification for not adopting the
 adjustment.
 Sec. 531.0205.  APPLICABILITY OF FORMER LAW. An action
 brought or proceeding commenced before the date of a transfer
 prescribed by this subchapter in accordance with the transition
 plan required under Section 531.0204, including a contested case or
 a remand of an action or proceeding by a reviewing court, is
 governed by the laws and rules applicable to the action or
 proceeding before the transfer.
 Sec. 531.0206.  LIMITED-SCOPE SUNSET REVIEW. (a)  The
 Sunset Advisory Commission shall conduct a limited-scope review of
 the commission during the state fiscal biennium ending August 31,
 2023, in the manner provided by Chapter 325 (Texas Sunset Act). The
 review must provide:
 (1)  an update on the commission's progress with
 respect to the consolidation of the health and human services
 system mandated by this subchapter, including the commission's
 compliance with the transition and work plans required under
 Section 531.0204; and
 (2)  any additional information the Sunset Advisory
 Commission determines appropriate, including information regarding
 any additional organizational changes the Sunset Advisory
 Commission recommends.
 (b)  The commission is not abolished solely because the
 commission is not explicitly continued following the review
 required by this section.
 Sec. 531.0207.  EXPIRATION OF SUBCHAPTER.  This subchapter
 expires September 1, 2023.
 (b)  Not later than October 1, 2015:
 (1)  the lieutenant governor, the speaker of the house
 of representatives, and the governor shall make the appointments to
 the Health and Human Services Transition Legislative Oversight
 Committee as required by Section 531.0203(c), Government Code, as
 added by this article; and
 (2)  the lieutenant governor and the speaker of the
 house of representatives shall each designate a presiding co-chair
 of the Health and Human Services Transition Legislative Oversight
 Committee in accordance with Section 531.0203(f), Government Code,
 as added by this article.
 (c)  As soon as appropriate under the consolidation under
 Subchapter A-1, Chapter 531, Government Code, as added by this
 article, and in a manner that minimizes disruption of services, the
 Health and Human Services Commission shall take appropriate action
 to be designated as the state agency responsible under federal law
 for any state or federal program for which federal law requires the
 designation of a responsible state agency and for which an agency
 subject to abolition under Section 531.0202, Government Code, as
 added by this article, is responsible.
 (d)  Notwithstanding Section 531.0201, Government Code, as
 added by this article, a power, duty, program, function, or
 activity of the Department of Assistive and Rehabilitative Services
 may not be transferred to the Health and Human Services Commission
 under that section if:
 (1)  H.B. No. 3294 or S.B. No. 208, 84th Legislature,
 Regular Session, 2015, or similar legislation of the 84th
 Legislature, Regular Session, 2015, is enacted, becomes law, and
 provides for the transfer of the power, duty, program, function, or
 activity to the Texas Workforce Commission subject to receipt of
 any necessary federal approval or other authorization for the
 transfer to occur; and
 (2)  the Department of Assistive and Rehabilitative
 Services or the Texas Workforce Commission receives the necessary
 federal approval or other authorization to enable the transfer to
 occur not later than September 1, 2016.
 (e)  If neither the Department of Assistive and
 Rehabilitative Services nor the Texas Workforce Commission
 receives the federal approval or other authorization described by
 Subsection (d) of this section to enable the transfer of the power,
 duty, program, function, or activity to the Texas Workforce
 Commission to occur not later than September 1, 2016, as provided by
 the legislation described by Subsection (d) of this section, the
 power, duty, program, function, or activity of the Department of
 Assistive and Rehabilitative Services transfers to the Health and
 Human Services Commission in accordance with Section 531.0201,
 Government Code, as added by this article, and the transition plan
 required under Section 531.0204, Government Code, as added by this
 article.
 SECTION 1.02.  Subchapter A, Chapter 531, Government Code,
 is amended by adding Sections 531.0011 and 531.0012 to read as
 follows:
 Sec. 531.0011.  REFERENCES IN LAW MEANING COMMISSION OR
 APPROPRIATE DIVISION. (a)  In this code or in any other law, a
 reference to any of the following state agencies or entities in
 relation to a function transferred under Section 531.0201 or
 531.02011, as applicable, means the commission or the division of
 the commission performing the function previously performed by the
 state agency or entity before the transfer, as appropriate:
 (1)  health and human services agency;
 (2)  the Department of State Health Services;
 (3)  the Department of Aging and Disability Services;
 (4)  the Department of Family and Protective Services;
 or
 (5)  the Department of Assistive and Rehabilitative
 Services.
 (b)  In this code or in any other law and notwithstanding any
 other law, a reference to any of the following state agencies or
 entities in relation to a function transferred under Section
 531.0201 or 531.02011, as applicable, from the state agency that
 assumed the relevant function in accordance with Chapter 198 (H.B.
 2292), Acts of the 78th Legislature, Regular Session, 2003, means
 the commission or the division of the commission performing the
 function previously performed by the agency that assumed the
 function before the transfer, as appropriate:
 (1)  the Texas Department on Aging;
 (2)  the Texas Commission on Alcohol and Drug Abuse;
 (3)  the Texas Commission for the Blind;
 (4)  the Texas Commission for the Deaf and Hard of
 Hearing;
 (5)  the Texas Department of Health;
 (6)  the Texas Department of Human Services;
 (7)  the Texas Department of Mental Health and Mental
 Retardation;
 (8)  the Texas Rehabilitation Commission;
 (9)  the Texas Health Care Information Council; or
 (10)  the Interagency Council on Early Childhood
 Intervention.
 (c)  In this code or in any other law and notwithstanding any
 other law, a reference to the Department of Protective and
 Regulatory Services in relation to a function transferred under
 Section 531.0201 or 531.02011, as applicable, from the Department
 of Family and Protective Services means the commission or the
 division of the commission performing the function previously
 performed by the Department of Family and Protective Services
 before the transfer.
 (d)  This section applies notwithstanding Section
 531.001(4).  This subsection and Section 531.001(4) expire on the
 last day of the period prescribed by Section 531.02001(2).
 Sec. 531.0012.  REFERENCES IN LAW MEANING EXECUTIVE
 COMMISSIONER OR DESIGNEE. (a)  In this code or in any other law, a
 reference to any of the following persons in relation to a function
 transferred under Section 531.0201 or 531.02011, as applicable,
 means the executive commissioner, the executive commissioner's
 designee, or the director appointed under Section 531.00561 of the
 division of the commission performing the function previously
 performed by the state agency from which it was transferred and that
 the person represented, as appropriate:
 (1)  the commissioner of aging and disability services;
 (2)  the commissioner of assistive and rehabilitative
 services;
 (3)  the commissioner of state health services; or
 (4)  the commissioner of the Department of Family and
 Protective Services.
 (b)  In this code or in any other law and notwithstanding any
 other law, a reference to any of the following persons or entities
 in relation to a function transferred under Section 531.0201 or
 531.02011, as applicable, from the state agency that assumed or
 continued to perform the function in accordance with Chapter 198
 (H.B. 2292), Acts of the 78th Legislature, Regular Session, 2003,
 means the executive commissioner or the director appointed under
 Section 531.00561 of the division of the commission performing the
 function performed before the enactment of Chapter 198 (H.B. 2292)
 by the state agency that was abolished or renamed by Chapter 198
 (H.B. 2292) and that the person or entity represented:
 (1)  an executive director or other chief
 administrative officer of a state agency listed in Section
 531.0011(b) or of the Department of Protective and Regulatory
 Services; or
 (2)  the governing body of a state agency listed in
 Section 531.0011(b) or of the Department of Protective and
 Regulatory Services.
 (c)  A reference to any of the following councils means the
 executive commissioner or the executive commissioner's designee,
 as appropriate, and a function of any of the following councils is a
 function of that appropriate person:
 (1)  the Health and Human Services Council;
 (2)  the State Health Services Council;
 (3)  the Aging and Disability Services Council;
 (4)  the Family and Protective Services Council; or
 (5)  the Assistive and Rehabilitative Services
 Council.
 SECTION 1.03.  (a)  Subchapter A, Chapter 531, Government
 Code, is amended by adding Section 531.0051 to read as follows:
 Sec. 531.0051.  HEALTH AND HUMAN SERVICES COMMISSION
 EXECUTIVE COUNCIL. (a)  The Health and Human Services Commission
 Executive Council is established to receive public input and advise
 the executive commissioner regarding the operation of the
 commission.  The council shall seek and receive public comment on:
 (1)  proposed rules;
 (2)  recommendations of advisory committees;
 (3)  legislative appropriations requests or other
 documents related to the appropriations process;
 (4)  the operation of health and human services
 programs; and
 (5)  other items the executive commissioner determines
 appropriate.
 (a-1)  The council shall also receive public input and advise
 the executive commissioner regarding the operation of the health
 and human services agencies.  This subsection expires on the last
 day of the period prescribed by Section 531.02001(2).
 (b)  The council does not have authority to make
 administrative or policy decisions.
 (c)  The council is composed of:
 (1)  the executive commissioner;
 (2)  the director of each division established by the
 executive commissioner under Section 531.008(c); and
 (3)  other individuals appointed by the executive
 commissioner as the executive commissioner determines necessary.
 (d)  The executive commissioner serves as the chair of the
 council and shall adopt rules for the operation of the council.
 (e)  Members of the council appointed under Subsection
 (c)(3) serve at the pleasure of the executive commissioner.
 (f)  The council shall meet at the call of the executive
 commissioner at least quarterly.  The executive commissioner may
 call additional meetings as the executive commissioner determines
 necessary.
 (g)  The council shall give public notice of the date, time,
 and place of each meeting held by the council.  A live video
 transmission of each meeting must be publicly available through the
 Internet.
 (h)  A majority of the members of the council constitute a
 quorum for the transaction of business.
 (i)  A council member appointed under Subsection (c)(3) may
 not receive compensation for service as a member of the council but
 is entitled to reimbursement for travel expenses incurred by the
 member while conducting the business of the council as provided by
 the General Appropriations Act.
 (j)  The executive commissioner shall develop and implement
 policies that provide the public with a reasonable opportunity to
 appear before the council and to speak on any issue under the
 jurisdiction of the commission.
 (k)  A meeting of individual members of the council that
 occurs in the ordinary course of commission operation is not a
 meeting of the council, and the requirements of Subsection (g) do
 not apply.
 (l)  This section does not limit the authority of the
 executive commissioner to establish additional advisory committees
 or councils.
 (m)  Chapters 551 and 2110 do not apply to the council.
 (b)  As soon as possible after the executive commissioner of
 the Health and Human Services Commission appoints division
 directors in accordance with Section 531.00561, Government Code, as
 added by this article, the Health and Human Services Commission
 Executive Council established under Section 531.0051, Government
 Code, as added by this article, shall begin operation.
 SECTION 1.04.  The heading to Section 531.0055, Government
 Code, is amended to read as follows:
 Sec. 531.0055.  EXECUTIVE COMMISSIONER: GENERAL
 RESPONSIBILITY FOR HEALTH AND HUMAN SERVICES SYSTEM [AGENCIES].
 SECTION 1.05.  Section 531.0055, Government Code, is amended
 by amending Subsection (b), as amended by S.B. 219, Acts of the 84th
 Legislature, Regular Session, 2015, amending Subsections (d), (e),
 (f), (g), (h), and (l), and adding Subsection (n) to read as
 follows:
 (b)  The commission shall:
 (1)  supervise the administration and operation of
 Medicaid, including the administration and operation of the
 Medicaid managed care system in accordance with Section 531.021;
 (2)  perform information systems planning and
 management for the health and human services system [agencies]
 under Section 531.0273, with:
 (A)  the provision of information technology
 services for the [at] health and human services system [agencies]
 considered to be a centralized administrative support service
 either performed by commission personnel or performed under a
 contract with the commission; and
 (B)  an emphasis on research and implementation on
 a demonstration or pilot basis of appropriate and efficient uses of
 new and existing technology to improve the operation of the health
 and human services system [agencies] and delivery of health and
 human services;
 (3)  monitor and ensure the effective use of all
 federal funds received for the [by a] health and human services
 system [agency] in accordance with Section 531.028 and the General
 Appropriations Act;
 (4)  implement Texas Integrated Enrollment Services as
 required by Subchapter F, except that notwithstanding Subchapter F,
 determining eligibility for benefits under the following programs
 is the responsibility of and must be centralized by the commission:
 (A)  the child health plan program;
 (B)  the financial assistance program under
 Chapter 31, Human Resources Code;
 (C)  Medicaid;
 (D)  the supplemental nutrition assistance
 program under Chapter 33, Human Resources Code;
 (E)  long-term care services, as defined by
 Section 22.0011, Human Resources Code;
 (F)  community-based support services identified
 or provided in accordance with Section 531.02481; and
 (G)  other health and human services programs, as
 appropriate; and
 (5)  implement programs intended to prevent family
 violence and provide services to victims of family violence.
 (d)  After implementation of the commission's duties under
 Subsections (b) and (c), the commission shall implement the powers
 and duties given to the commission under Section 531.0248. Nothing
 in the priorities established by this section is intended to limit
 the authority of the commission to work simultaneously to achieve
 the multiple tasks assigned to the commission in this section, when
 such an approach is beneficial in the judgment of the commission.
 The commission shall plan and implement an efficient and effective
 centralized system of administrative support services for the
 health and human services system [agencies]. The performance of
 administrative support services for the health and human services
 system [agencies] is the responsibility of the commission. The
 term "administrative support services" includes, but is not limited
 to, strategic planning and evaluation, audit, legal, human
 resources, information resources, purchasing, contract management,
 financial management, and accounting services.
 (e)  Notwithstanding any other law, the executive
 commissioner shall adopt rules and policies for the operation of
 and provision of health and human services by the health and human
 services system [agencies]. In addition, the executive
 commissioner, as necessary to perform the functions described by
 Subsections (b), (c), and (d) in implementation of applicable
 policies established for a health and human services system [an]
 agency or division, as applicable, by the executive commissioner,
 shall:
 (1)  manage and direct the operations of each [health
 and human services] agency or division, as applicable;
 (2)  supervise and direct the activities of each agency
 or division director, as applicable; and
 (3)  be responsible for the administrative supervision
 of the internal audit program for the [all] health and human
 services system agencies, if applicable, including:
 (A)  selecting the director of internal audit;
 (B)  ensuring that the director of internal audit
 reports directly to the executive commissioner; and
 (C)  ensuring the independence of the internal
 audit function.
 (f)  The operational authority and responsibility of the
 executive commissioner for purposes of Subsection (e) for [at] each
 health and human services system agency or division, as applicable,
 includes authority over and responsibility for the:
 (1)  management of the daily operations of the agency
 or division, including the organization and management of the
 agency or division and its [agency] operating procedures;
 (2)  allocation of resources within the agency or
 division, including use of federal funds received by the agency or
 division;
 (3)  personnel and employment policies;
 (4)  contracting, purchasing, and related policies,
 subject to this chapter and other laws relating to contracting and
 purchasing by a state agency;
 (5)  information resources systems used by the agency
 or division;
 (6)  location of [agency] facilities; and
 (7)  coordination of agency or division activities with
 activities of other components of the health and human services
 system and state agencies[, including other health and human
 services agencies].
 (g)  Notwithstanding any other law, the operational
 authority and responsibility of the executive commissioner for
 purposes of Subsection (e) for [at] each health and human services
 system agency or division, as applicable, includes the authority
 and responsibility to adopt or approve, subject to applicable
 limitations, any rate of payment or similar provision required by
 law to be adopted or approved by a health and human services system
 [the] agency.
 (h)  For each health and human services system agency and
 division, as applicable, the executive commissioner shall
 implement a program to evaluate and supervise [the] daily
 operations [of the agency]. The program must include measurable
 performance objectives for each agency or division director and
 adequate reporting requirements to permit the executive
 commissioner to perform the duties assigned to the executive
 commissioner under this section.
 (l)  Notwithstanding any other law, the executive
 commissioner has the authority to adopt policies and rules
 governing the delivery of services to persons who are served by the
 [each] health and human services system [agency] and the rights and
 duties of persons who are served or regulated by the system [each
 agency].
 (n)  This subsection and Subsections (a), (i), and (k) expire
 on the last day of the period prescribed by Section 531.02001(2).
 SECTION 1.06.  Section 531.00551, Government Code, as added
 by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
 amended by adding Subsection (c) to read as follows:
 (c)  This section expires on the last day of the period
 prescribed by Section 531.02001(2).
 SECTION 1.07.  Section 531.0056, Government Code, is amended
 by adding Subsections (g) and (h) to read as follows:
 (g)  The requirements of this section apply with respect to a
 state agency listed in Section 531.001(4) only until the agency is
 abolished under Section 531.0202.
 (h)  This section expires on the last day of the period
 prescribed by Section 531.02001(2).
 SECTION 1.08.  (a) Subchapter A, Chapter 531, Government
 Code, is amended by adding Sections 531.00561 and 531.00562 to read
 as follows:
 Sec. 531.00561.  APPOINTMENT AND QUALIFICATIONS OF DIVISION
 DIRECTORS. (a)  The executive commissioner shall appoint a
 director for each division established within the commission under
 Section 531.008.
 (b)  The executive commissioner shall:
 (1)  develop clear qualifications for the director of
 each division appointed under this section that ensure that an
 individual appointed director has:
 (A)  demonstrated experience in fields relevant
 to the director position; and
 (B)  executive-level administrative and
 leadership experience; and
 (2)  ensure the qualifications developed under
 Subdivision (1) are publicly available.
 Sec. 531.00562.  DIVISION DIRECTOR DUTIES.  (a)  The
 executive commissioner shall clearly define the duties and
 responsibilities of a division director appointed under Section
 531.00561, and develop clear policies for the delegation of
 specific decision-making authority, including budget authority, to
 division directors.
 (b)  The delegation of decision-making authority should be
 significant enough to ensure the efficient administration of the
 commission's programs and services.
 (b)  The executive commissioner of the Health and Human
 Services Commission shall implement Sections 531.00561 and
 531.00562, Government Code, as added by this article, on the date
 specified in the transition plan required under Section 531.0204,
 Government Code, as added by this article.
 SECTION 1.09.  (a)  Section 531.008, Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 Sec. 531.008.  DIVISIONS OF COMMISSION. (a)  The [Subject
 to Subsection (c), the] executive commissioner shall [may]
 establish divisions within the commission along functional lines as
 necessary for effective administration and for the discharge of the
 commission's functions.
 (b)  The [Subject to Subsection (c), the] executive
 commissioner may allocate and reallocate functions among the
 commission's divisions.
 (c)  Notwithstanding Subsections (a) and (b), the [The]
 executive commissioner shall establish the following divisions and
 offices within the commission:
 (1)  a medical and social services division [the
 eligibility services division to make eligibility determinations
 for services provided through the commission or a health and human
 services agency related to:
 [(A)  the child health plan program;
 [(B)     the financial assistance program under
 Chapter 31, Human Resources Code;
 [(C)  Medicaid;
 [(D)     the supplemental nutrition assistance
 program under Chapter 33, Human Resources Code;
 [(E)     long-term care services, as defined by
 Section 22.0011, Human Resources Code;
 [(F)     community-based support services identified
 or provided in accordance with Section 531.02481; and
 [(G)     other health and human services programs, as
 appropriate];
 (2)  the office of inspector general to perform fraud
 and abuse investigation and enforcement functions as provided by
 Subchapter C and other law;
 (3)  a regulatory division [the office of the ombudsman
 to:
 [(A)     provide dispute resolution services for the
 commission and the health and human services agencies; and
 [(B)     perform consumer protection functions
 related to health and human services];
 (4)  an administrative division [a purchasing division
 as provided by Section 531.017]; and
 (5)  a facilities division for the purpose of
 administering state facilities, including state hospitals and
 state-supported living centers [an internal audit division to
 conduct a program of internal auditing in accordance with Chapter
 2102].
 (d)  Subsection (c) does not prohibit the executive
 commissioner from establishing additional divisions under
 Subsection (a) as the executive commissioner determines
 appropriate.  This subsection and Subsection (c) expire September
 1, 2023.
 (b)  The executive commissioner of the Health and Human
 Services Commission shall establish divisions within the
 commission as required under Section 531.008, Government Code, as
 amended by this article, on the date specified in the transition
 plan required under Section 531.0204, Government Code, as added by
 this article.
 SECTION 1.10.  (a)  Subchapter A, Chapter 531, Government
 Code, is amended by adding Section 531.0083 to read as follows:
 Sec. 531.0083.  OFFICE OF POLICY AND PERFORMANCE. (a)  In
 this section, "office" means the office of policy and performance
 established by this section.
 (b)  The executive commissioner shall establish the office
 of policy and performance as an executive-level office designed to
 coordinate policy and performance efforts across the health and
 human services system.  To coordinate those efforts, the office
 shall:
 (1)  develop a performance management system;
 (2)  take the lead in supporting and providing
 oversight for the implementation of major policy changes and in
 managing organizational changes; and
 (3)  act as a centralized body of experts within the
 commission that offers program evaluation and process improvement
 expertise.
 (c)  In developing a performance management system under
 Subsection (b)(1), the office shall:
 (1)  gather, measure, and evaluate performance
 measures and accountability systems used by the health and human
 services system;
 (2)  develop new and refined performance measures as
 appropriate; and
 (3)  establish targeted, high-level system metrics
 that are capable of measuring and communicating overall performance
 and achievement of goals by the health and human services system to
 both internal and public audiences through various mechanisms,
 including the Internet.
 (d)  In providing support and oversight for the
 implementation of policy or organizational changes within the
 health and human services system under Subsection (b)(2), the
 office shall:
 (1)  ensure individuals receiving services from or
 participating in programs administered through the health and human
 services system do not lose visibility or attention during the
 implementation of any new policy or organizational change by:
 (A)  establishing timelines and milestones for
 any transition;
 (B)  supporting staff of the health and human
 services system in any change between service delivery methods; and
 (C)  providing feedback to executive management
 on technical assistance and other support needed to achieve a
 successful transition;
 (2)  address cultural differences among staff of the
 health and human services system; and
 (3)  track and oversee changes in policy or
 organization mandated by legislation or administrative rule.
 (e)  In acting as a centralized body of experts under
 Subsection (b)(3), the office shall:
 (1)  for the health and human services system, provide
 program evaluation and process improvement guidance both generally
 and for specific projects identified with executive or stakeholder
 input or through risk analysis; and
 (2)  identify and monitor cross-functional efforts
 involving different administrative components within the health
 and human services system and the establishment of cross-functional
 teams when necessary to improve the coordination of services
 provided through the system.
 (f)  The executive commissioner may otherwise develop the
 office's structure and duties as the executive commissioner
 determines appropriate.
 (b)  As soon as practicable after the effective date of this
 article but not later than October 1, 2015, the executive
 commissioner of the Health and Human Services Commission shall
 establish the office of policy and performance as an executive
 office within the commission as required under Section 531.0083,
 Government Code, as added by this article.
 (c)  The office of policy and performance required under
 Section 531.0083, Government Code, as added by this article, shall
 assist the Health and Human Services Transition Legislative
 Oversight Committee created under Section 531.0203, Government
 Code, as added by this article, by performing the functions
 required of the office under Section 531.0083(b)(2), Government
 Code, as added by this article, with respect to the consolidation
 mandated by Subchapter A-1, Chapter 531, Government Code, as added
 by this article.
 SECTION 1.11.  Section 531.017, Government Code, is amended
 to read as follows:
 Sec. 531.017.  PURCHASING UNIT [DIVISION]. (a)  The
 commission shall establish a purchasing unit [division] for the
 management of administrative activities related to the purchasing
 functions within [of the commission and] the health and human
 services system [agencies].
 (b)  The purchasing unit [division] shall:
 (1)  seek to achieve targeted cost reductions, increase
 process efficiencies, improve technological support and customer
 services, and enhance purchasing support within the [for each]
 health and human services system [agency]; and
 (2)  if cost-effective, contract with private entities
 to perform purchasing functions for the [commission and the] health
 and human services system [agencies].
 SECTION 1.12.  (a)  Sections 40.0515(d) and (e), Human
 Resources Code, are amended to read as follows:
 (d)  A performance review conducted under Subsection (b)(3)
 is considered a performance evaluation for purposes of Section
 40.032(c) of this code or Section 531.009(c), Government Code, as
 applicable.  The department shall ensure that disciplinary or other
 corrective action is taken against a supervisor or other managerial
 employee who is required to conduct a performance evaluation for
 adult protective services personnel under Section 40.032(c) of this
 code or Section 531.009(c), Government Code, as applicable, or a
 performance review under Subsection (b)(3) and who fails to
 complete that evaluation or review in a timely manner.
 (e)  The annual performance evaluation required under
 Section 40.032(c) of this code or Section 531.009(c), Government
 Code, as applicable, of the performance of a supervisor in the adult
 protective services division must:
 (1)  be performed by an appropriate program
 administrator; and
 (2)  include:
 (A)  an evaluation of the supervisor with respect
 to the job performance standards applicable to the supervisor's
 assigned duties; and
 (B)  an evaluation of the supervisor with respect
 to the compliance of employees supervised by the supervisor with
 the job performance standards applicable to those employees'
 assigned duties.
 (b)  Effective September 1, 2019, Sections 40.0515(d) and
 (e), Human Resources Code, are amended to read as follows:
 (d)  A performance review conducted under Subsection (b)(3)
 is considered a performance evaluation for purposes of Section
 531.009(c), Government Code [40.032(c)].  The department shall
 ensure that disciplinary or other corrective action is taken
 against a supervisor or other managerial employee who is required
 to conduct a performance evaluation for adult protective services
 personnel under Section 531.009(c), Government Code, [40.032(c)]
 or a performance review under Subsection (b)(3) and who fails to
 complete that evaluation or review in a timely manner.
 (e)  The annual performance evaluation required under
 Section 531.009(c), Government Code, [40.032(c)] of the
 performance of a supervisor in the adult protective services
 division must:
 (1)  be performed by an appropriate program
 administrator; and
 (2)  include:
 (A)  an evaluation of the supervisor with respect
 to the job performance standards applicable to the supervisor's
 assigned duties; and
 (B)  an evaluation of the supervisor with respect
 to the compliance of employees supervised by the supervisor with
 the job performance standards applicable to those employees'
 assigned duties.
 SECTION 1.13.  (a)  The heading to Subchapter C, Chapter
 112, Human Resources Code, is amended to read as follows:
 SUBCHAPTER C.  [OFFICE FOR THE] PREVENTION OF DEVELOPMENTAL
 DISABILITIES
 (b)  Section 112.042, Human Resources Code, is amended by
 amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
 read as follows:
 (1)  "Commission" means the Health and Human Services
 Commission.
 (1-a)  "Developmental disability" means a severe,
 chronic disability that:
 (A)  is attributable to a mental or physical
 impairment or to a combination of a mental and physical impairment;
 (B)  is manifested before a person reaches the age
 of 22;
 (C)  is likely to continue indefinitely;
 (D)  results in substantial functional
 limitations in three or more major life activities, including:
 (i)  self-care;
 (ii)  receptive and expressive language;
 (iii)  learning;
 (iv)  mobility;
 (v)  self-direction;
 (vi)  capacity for independent living; and
 (vii)  economic sufficiency; and
 (E)  reflects the person's needs for a combination
 and sequence of special interdisciplinary or generic care,
 treatment, or other lifelong or extended services that are
 individually planned and coordinated.
 (1-b)  "Executive commissioner" means the executive
 commissioner of the Health and Human Services Commission.
 (c)  Subchapter C, Chapter 112, Human Resources Code, is
 amended by adding Sections 112.0421 and 112.0431 to read as
 follows:
 Sec. 112.0421.  APPLICABILITY AND EXPIRATION OF CERTAIN
 PROVISIONS. (a)  Sections 112.041(a), 112.043, 112.045, 112.0451,
 112.0452, 112.0453, 112.0454, 112.046, 112.047, 112.0471, and
 112.0472 apply only until the date the executive commissioner
 begins to administer this subchapter and the commission assumes the
 duties and functions of the Office for the Prevention of
 Developmental Disabilities in accordance with Section 112.0431.
 (b)  On the date the provisions listed in Subsection (a)
 cease to apply, the executive committee under Section 112.045 and
 the board of advisors under Section 112.046 are abolished.
 (c)  This section and Sections 112.041(a), 112.043, 112.045,
 112.0451, 112.0452, 112.0453, 112.0454, 112.046, 112.047,
 112.0471, and 112.0472 expire on the last day of the period
 prescribed by Section 531.02001(1), Government Code.
 Sec. 112.0431.  ADMINISTRATION OF SUBCHAPTER; CERTAIN
 REFERENCES.  (a)  Notwithstanding any other provision in this
 subchapter, the executive commissioner shall administer this
 subchapter beginning on the date specified in the transition plan
 under Section 531.0204, Government Code, and the commission shall
 perform the duties and functions of the Office for the Prevention of
 Developmental Disabilities in the organizational form the
 executive commissioner determines appropriate.
 (b)  Following the assumption of the administration of this
 subchapter by the executive commissioner and the duties and
 functions by the commission in accordance with Subsection (a):
 (1)  a reference in this subchapter to the office, the
 Office for the Prevention of Developmental Disabilities, or the
 executive committee of that office means the commission, the
 division or other organizational unit within the commission
 designated by the executive commissioner, or the executive
 commissioner, as appropriate; and
 (2)  a reference in any other law to the Office for the
 Prevention of Developmental Disabilities has the meaning assigned
 by Subdivision (1).
 (d)  Section 112.044, Human Resources Code, is amended to
 read as follows:
 Sec. 112.044.  DUTIES. The office shall:
 (1)  educate the public and attempt to promote sound
 public policy regarding the prevention of developmental
 disabilities;
 (2)  identify, collect, and disseminate information
 and data concerning the causes, frequency of occurrence, and
 preventability of developmental disabilities;
 (3)  work with appropriate divisions within the
 commission, state agencies, and other entities to develop a
 coordinated long-range plan to effectively monitor and reduce the
 incidence or severity of developmental disabilities;
 (4)  promote and facilitate the identification,
 development, coordination, and delivery of needed prevention
 services;
 (5)  solicit, receive, and spend grants and donations
 from public, private, state, and federal sources;
 (6)  identify and encourage establishment of needed
 reporting systems to track the causes and frequencies of occurrence
 of developmental disabilities;
 (7)  develop, operate, and monitor programs created
 under Section 112.048 addressing [task forces to address] the
 prevention of specific targeted developmental disabilities;
 (8)  monitor and assess the effectiveness of divisions
 within the commission and of state agencies in preventing [to
 prevent] developmental disabilities;
 (9)  recommend the role each division within the
 commission and each state agency should have with regard to
 prevention of developmental disabilities;
 (10)  facilitate coordination of state agency
 prevention services and activities within the commission and among
 appropriate state agencies; and
 (11)  encourage cooperative, comprehensive, and
 complementary planning among public, private, and volunteer
 individuals and organizations engaged in prevention activities,
 providing prevention services, or conducting related research.
 (e)  Sections 112.048 and 112.049, Human Resources Code, are
 amended to read as follows:
 Sec. 112.048.  PREVENTION PROGRAMS FOR TARGETED
 DEVELOPMENTAL DISABILITIES [TASK FORCES]. (a)  The executive
 committee shall establish guidelines for:
 (1)  selecting targeted disabilities;
 (2)  assessing prevention services needs; and
 (3)  reviewing [task force] plans, budgets, and
 operations for programs under this section.
 (b)  The executive committee shall [create task forces made
 up of members of the board of advisors to] plan and implement
 prevention programs for specifically targeted developmental
 disabilities. [A task force operates as an administrative division
 of the office and can be abolished when it is ineffective or is no
 longer needed.]
 (c)  A program under this section [task force shall]:
 (1)  must include [develop] a plan designed to reduce
 the incidence of a specifically targeted disability;
 (2)  must include [prepare] a budget for implementing a
 plan;
 (3)  must be funded [arrange for funds] through:
 (A)  contracts for services from participating
 agencies;
 (B)  grants and gifts from private persons and
 consumer and advocacy organizations; and
 (C)  foundation support; and
 (4)  must be approved by [submit the plan, budget, and
 evidence of funding commitments to] the executive committee [for
 approval].
 [(d)     A task force shall regularly report to the executive
 committee, as required by the committee, the operation, progress,
 and results of the task force's prevention plan.]
 Sec. 112.049.  EVALUATION. (a)  The office shall identify
 or encourage the establishment of needed statistical bases for each
 targeted group against which the office can measure how effectively
 a [task force] program under Section 112.048 is reducing the
 frequency or severity of a targeted developmental disability.
 (b)  The executive committee shall regularly monitor and
 evaluate the results of [task force prevention] programs under
 Section 112.048.
 (f)  The heading to Section 112.050, Human Resources Code, is
 amended to read as follows:
 Sec. 112.050.  GRANTS AND OTHER FUNDING.
 (g)  Section 112.050, Human Resources Code, is amended by
 amending Subsection (c) and adding Subsection (d) to read as
 follows:
 (c)  The executive committee may not submit a legislative
 appropriation request for general revenue funds for purposes of
 this subchapter.
 (d)  In addition to funding under Subsection (a), the office
 may accept and solicit gifts, donations, and grants of money from
 public and private sources, including the federal government, local
 governments, and private entities, to assist in financing the
 duties and functions of the office.  The commission shall support
 office fund-raising efforts authorized by this subsection.  Funds
 raised under this subsection may only be spent in furtherance of a
 duty or function of the office or in accordance with rules
 applicable to the office.
 (h)  Section 112.051, Human Resources Code, is amended to
 read as follows:
 Sec. 112.051.  REPORTS TO LEGISLATURE. The office shall
 submit by February 1 of each odd-numbered year biennial reports to
 the legislature detailing findings of the office and the results of
 [task force prevention] programs under Section 112.048 and
 recommending improvements in the delivery of developmental
 disability prevention services.
 (i)  Notwithstanding the changes in law made by this section,
 the Office for the Prevention of Developmental Disabilities and any
 administrative entity of the Office for the Prevention of
 Developmental Disabilities shall continue to operate under the law
 as it existed before the effective date of this article, and that
 law is continued in effect for that purpose, until the executive
 commissioner of the Health and Human Services Commission begins
 administering Subchapter C, Chapter 112, Human Resources Code, as
 amended by this article, and the commission begins performing the
 duties and functions of the Office for the Prevention of
 Developmental Disabilities as required by Section 112.0431, Human
 Resources Code, as added by this article, on the date specified in
 the transition plan required under Section 531.0204, Government
 Code, as added by this article.
 (j)  The executive commissioner of the Health and Human
 Services Commission shall begin administering Subchapter C,
 Chapter 112, Human Resources Code, as amended by this article, and
 the commission shall begin performing the duties and functions of
 the Office for the Prevention of Developmental Disabilities as
 required by Section 112.0431, Human Resources Code, as added by
 this article, on the date specified in the transition plan required
 under Section 531.0204, Government Code, as added by this article.
 SECTION 1.14.  (a)  The heading to Chapter 114, Human
 Resources Code, is amended to read as follows:
 CHAPTER 114.  [TEXAS COUNCIL ON] AUTISM AND PERVASIVE
 DEVELOPMENTAL DISORDERS
 (b)  Section 114.002, Human Resources Code, is amended by
 adding Subdivisions (1-a) and (3) to read as follows:
 (1-a)  "Commission" means the Health and Human Services
 Commission.
 (3)  "Executive commissioner" means the executive
 commissioner of the Health and Human Services Commission.
 (c)  Chapter 114, Human Resources Code, is amended by adding
 Sections 114.0021 and 114.0031 to read as follows:
 Sec. 114.0021.  APPLICABILITY AND EXPIRATION OF CERTAIN
 PROVISIONS. (a)  Sections 114.001, 114.003, 114.004, 114.005,
 114.007(a), and 114.010(d) apply only until the date the executive
 commissioner begins to administer this chapter and the commission
 assumes the duties and functions of the Texas Council on Autism and
 Pervasive Developmental Disorders in accordance with Section
 114.0031.
 (b)  On the date the provisions listed in Subsection (a)
 cease to apply, the Texas Council on Autism and Pervasive
 Developmental Disorders is abolished.
 (c)  This section and Sections 114.001, 114.003, 114.004,
 114.005, 114.007(a), and 114.010(d) expire on the last day of the
 period prescribed by Section 531.02001(1), Government Code.
 Sec. 114.0031.  ADMINISTRATION OF CHAPTER; CERTAIN
 REFERENCES.  (a)  Notwithstanding any other provision in this
 chapter, the executive commissioner shall administer this chapter
 beginning on the date specified in the transition plan under
 Section 531.0204, Government Code, and the commission shall perform
 the duties and functions of the Texas Council on Autism and
 Pervasive Developmental Disorders in the organizational form the
 executive commissioner determines appropriate.
 (b)  Following the assumption of the administration of this
 chapter by the executive commissioner and the duties and functions
 by the commission in accordance with Subsection (a):
 (1)  a reference in this chapter to the council, the
 Texas Council on Autism and Pervasive Developmental Disorders, or
 an agency represented on the council means the commission, the
 division or other organizational unit within the commission
 designated by the executive commissioner, or the executive
 commissioner, as appropriate; and
 (2)  a reference in any other law to the Texas Council
 on Autism and Pervasive Developmental Disorders has the meaning
 assigned by Subdivision (1).
 (d)  Section 114.006(b), Human Resources Code, is amended to
 read as follows:
 (b)  The council shall make written recommendations on the
 implementation of this chapter. If the council considers a
 recommendation that will affect another state [an] agency [not
 represented on the council], the council shall seek the advice and
 assistance of the agency before taking action on the
 recommendation. On approval of the governing body of the agency,
 each agency affected by a council recommendation shall implement
 the recommendation. If an agency does not have sufficient funds to
 implement a recommendation, the agency shall request funds for that
 purpose in its next budget proposal.
 (e)  Sections 114.007(b) and (c), Human Resources Code, are
 amended to read as follows:
 (b)  The council with [the advice of the advisory task force
 and] input from people with autism and other pervasive
 developmental disorders, their families, and related advocacy
 organizations shall address contemporary issues affecting services
 available to persons with autism or other pervasive developmental
 disorders in this state, including:
 (1)  successful intervention and treatment strategies,
 including transitioning;
 (2)  personnel preparation and continuing education;
 (3)  referral, screening, and evaluation services;
 (4)  day care, respite care, or residential care
 services;
 (5)  vocational and adult training programs;
 (6)  public awareness strategies;
 (7)  contemporary research;
 (8)  early identification strategies;
 (9)  family counseling and case management; and
 (10)  recommendations for monitoring autism service
 programs.
 (c)  The council with [the advice of the advisory task force
 and] input from people with autism and other pervasive
 developmental disorders, their families, and related advocacy
 organizations shall advise the legislature on legislation that is
 needed to develop further and to maintain a statewide system of
 quality intervention and treatment services for all persons with
 autism or other pervasive developmental disorders.  The council may
 develop and recommend legislation to the legislature or comment on
 pending legislation that affects those persons.
 (f)  Section 114.008, Human Resources Code, is amended to
 read as follows:
 Sec. 114.008.  REPORT. (a)  [The agencies represented on
 the council and the public members shall report to the council any
 requirements identified by the agency or person to provide
 additional or improved services to persons with autism or other
 pervasive developmental disorders.]  Not later than November 1 of
 each even-numbered year, the council shall:
 (1)  prepare a report summarizing requirements the
 council identifies and recommendations for providing additional or
 improved services to persons with autism or other pervasive
 developmental disorders; and
 (2)  deliver the report to the executive commissioner
 [of the Health and Human Services Commission], the governor, the
 lieutenant governor, and the speaker of the house of
 representatives [a report summarizing the recommendations].
 (b)  The council shall develop a strategy for establishing
 new programs to meet the requirements identified through the
 council's review and assessment and from input from [the task
 force,] people with autism and related pervasive developmental
 disorders, their families, and related advocacy organizations.
 (g)  Section 114.013, Human Resources Code, is amended to
 read as follows:
 Sec. 114.013.  COORDINATION OF RESOURCES FOR INDIVIDUALS
 WITH AUTISM SPECTRUM DISORDERS [RESOURCE CENTER]. (a)  The
 commission [Health and Human Services Commission] shall [establish
 and administer an autism spectrum disorders resource center to]
 coordinate resources for individuals with autism and other
 pervasive developmental disorders and their families.  In
 coordinating those resources [establishing and administering the
 center], the commission [Health and Human Services Commission]
 shall consult with [the council and coordinate with] appropriate
 state agencies[, including each agency represented on the council].
 (b)  As part of coordinating resources under Subsection (a),
 the commission [The Health and Human Services Commission] shall
 [design the center to]:
 (1)  collect and distribute information and research
 regarding autism and other pervasive developmental disorders;
 (2)  conduct training and development activities for
 persons who may interact with an individual with autism or another
 pervasive developmental disorder in the course of their employment,
 including school, medical, or law enforcement personnel;
 (3)  coordinate with local entities that provide
 services to an individual with autism or another pervasive
 developmental disorder; and
 (4)  provide support for families affected by autism
 and other pervasive developmental disorders.
 (h)  Notwithstanding the changes in law made by this section,
 the Texas Council on Autism and Pervasive Developmental Disorders
 and any administrative entity of the Texas Council on Autism and
 Pervasive Developmental Disorders shall continue to operate under
 the law as it existed before the effective date of this article, and
 that law is continued in effect for that purpose, until the
 executive commissioner of the Health and Human Services Commission
 begins administering Chapter 114, Human Resources Code, as amended
 by this article, and the commission begins performing the duties
 and functions of the Texas Council on Autism and Pervasive
 Developmental Disorders as required by Section 114.0031, Human
 Resources Code, as added by this article, on the date specified in
 the transition plan required under Section 531.0204, Government
 Code, as added by this article.
 (i)  The executive commissioner of the Health and Human
 Services Commission shall begin administering Chapter 114, Human
 Resources Code, as amended by this article, and the commission
 shall begin performing the duties and functions of the Texas
 Council on Autism and Pervasive Developmental Disorders as required
 by Section 114.0031, Human Resources Code, as added by this
 article, on the date specified in the transition plan required
 under Section 531.0204, Government Code, as added by this article.
 SECTION 1.15.  (a)  Effective September 1, 2016, Subchapter
 K, Chapter 531, Government Code, including provisions amended by
 S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
 repealed.
 (b)  Effective September 1, 2016, the following provisions
 of the Health and Safety Code are repealed:
 (1)  Section 1001.021;
 (2)  Section 1001.022;
 (3)  Section 1001.023;
 (4)  Section 1001.024;
 (5)  Section 1001.025;
 (6)  Section 1001.026; and
 (7)  Section 1001.027.
 (c)  Effective September 1, 2016, the following provisions
 of the Human Resources Code, including provisions amended by S.B.
 219, Acts of the 84th Legislature, Regular Session, 2015, are
 repealed:
 (1)  Section 40.021;
 (2)  Section 40.022;
 (3)  Section 40.0226;
 (4)  Section 40.024;
 (5)  Section 40.025;
 (6)  Section 40.026;
 (7)  Section 117.002;
 (8)  Section 117.021;
 (9)  Section 117.022;
 (10)  Section 117.023;
 (11)  Section 117.024;
 (12)  Section 117.025;
 (13)  Section 117.026;
 (14)  Section 117.027;
 (15)  Section 117.028;
 (16)  Section 117.029;
 (17)  Section 117.030;
 (18)  Section 117.032;
 (19)  Section 117.051;
 (20)  Section 117.052;
 (21)  Section 117.053;
 (22)  Section 117.054;
 (23)  Section 117.055;
 (24)  Section 117.056;
 (25)  Section 117.072;
 (26)  Section 161.002;
 (27)  Subchapter B, Chapter 161;
 (28)  Section 161.051;
 (29)  Section 161.052;
 (30)  Section 161.053;
 (31)  Section 161.054;
 (32)  Section 161.055;
 (33)  Section 161.056; and
 (34)  Section 161.072.
 SECTION 1.16.  (a)  Effective September 1, 2019, Section
 531.0163, Government Code, is repealed.
 (b)  Effective September 1, 2019, the following provisions
 of the Health and Safety Code, including provisions amended by S.B.
 219, Acts of the 84th Legislature, Regular Session, 2015, are
 repealed:
 (1)  Section 1001.002;
 (2)  Section 1001.028;
 (3)  Section 1001.029;
 (4)  Section 1001.030;
 (5)  Section 1001.032;
 (6)  Subchapter C, Chapter 1001; and
 (7)  Section 1001.074.
 (c)  Effective September 1, 2019, the following provisions
 of the Human Resources Code, including provisions amended by S.B.
 219, Acts of the 84th Legislature, Regular Session, 2015, are
 repealed:
 (1)  Section 40.002(a);
 (2)  Section 40.004;
 (3)  Section 40.0041;
 (4)  Section 40.027;
 (5)  Section 40.032; and
 (6)  Section 40.033.
 SECTION 1.17.  Notwithstanding Sections 1.15 and 1.16 of
 this article, the implementation of a provision repealed by those
 sections ceases on the date the responsible state agency or entity
 listed in Section 531.0202, Government Code, as added by this
 article, is abolished as provided by Subchapter A-1, Chapter 531,
 Government Code, as added by this article.
 ARTICLE 2.  HEALTH AND HUMAN SERVICES SYSTEM OPERATIONS
 SECTION 2.01.  Section 531.001, Government Code, is amended
 by adding Subdivision (3-a) to read as follows:
 (3-a)  "Health and human services system" means the
 system for providing or otherwise administering health and human
 services in this state by the commission, including through an
 office or division of the commission or through another entity
 under the administrative and operational control of the executive
 commissioner.
 SECTION 2.02.  Subchapter A, Chapter 531, Government Code,
 is amended by adding Section 531.00552 to read as follows:
 Sec. 531.00552.  CONSOLIDATED INTERNAL AUDIT PROGRAM.
 (a)  Notwithstanding Section 2102.005, the commission shall
 operate the internal audit program required under Chapter 2102 for
 the commission and each health and human services agency as a
 consolidated internal audit program.
 (b)  For purposes of this section, a reference in Chapter
 2102 to the administrator of a state agency with respect to a health
 and human services agency means the executive commissioner.
 (c)  This section expires on the last day of the period
 prescribed by Section 531.02001(2).
 SECTION 2.03.  Section 531.006, Government Code, as amended
 by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
 amended to read as follows:
 Sec. 531.006.  ELIGIBILITY FOR APPOINTMENT AS EXECUTIVE
 COMMISSIONER; EMPLOYEE RESTRICTIONS.  (a)  In this section, "Texas
 trade association" means a cooperative and voluntarily joined
 statewide association of business or professional competitors in
 this state designed to assist its members and its industry or
 profession in dealing with mutual business or professional problems
 and in promoting their common interest.
 (a-1)  A person may not be appointed [is not eligible for
 appointment] as executive commissioner, may not serve on the
 commission's executive council, and may not be a commission
 employee employed in a "bona fide executive, administrative, or
 professional capacity," as that phrase is used for purposes of
 establishing an exemption to the overtime provisions of the federal
 Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
 (1)  the person is an officer, employee, or paid
 consultant of a Texas trade association in the field of health and
 human services; or
 (2)  the person's spouse is an [employee,] officer,
 manager, or paid consultant of a Texas trade association in the [a]
 field of health and human services [under the commission's
 jurisdiction].
 (b)  A person may not be appointed as executive commissioner
 or act as general counsel of the commission if the person [who] is
 required to register as a lobbyist under Chapter 305 because of the
 person's activities for compensation [in or] on behalf of a
 profession related to the operation of the commission [a field
 under the commission's jurisdiction may not serve as executive
 commissioner].
 (c)  A person may not be appointed [is not eligible for
 appointment] as executive commissioner if the person has a
 financial interest in a corporation, organization, or association
 under contract with:
 (1)  the commission or a health and human services
 agency [Department of State Health Services, if the contract
 involves mental health services];
 (2)  [the Department of Aging and Disability Services,
 if the contract involves intellectual and developmental disability
 services;
 [(3)]  a local mental health or intellectual and
 developmental disability authority; or
 (3) [(4)]  a community center.
 SECTION 2.04.  Section 531.0161, Government Code, is amended
 by adding Subsection (c) to read as follows:
 (c)  The commission shall:
 (1)  coordinate the implementation of the policy
 developed under Subsection (a);
 (2)  provide training as needed to implement the
 procedures for negotiated rulemaking or alternative dispute
 resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures.
 SECTION 2.05.  (a)  Subchapter A, Chapter 531, Government
 Code, is amended by adding Section 531.0164 to read as follows:
 Sec. 531.0164.  HEALTH AND HUMAN SERVICES SYSTEM INTERNET
 WEBSITE COORDINATION. The commission shall establish a process to
 ensure Internet websites across the health and human services
 system are developed and maintained according to standard criteria
 for uniformity, efficiency, and technical capabilities.  Under the
 process, the commission shall:
 (1)  develop and maintain an inventory of all health
 and human services system Internet websites;
 (2)  on an ongoing basis, evaluate the inventory
 maintained under Subdivision (1) to:
 (A)  determine whether any of the Internet
 websites should be consolidated to improve public access to those
 websites' content; and
 (B)  ensure the Internet websites comply with the
 standard criteria; and
 (3)  if appropriate, consolidate the websites
 identified under Subdivision (2)(A).
 (b)  As soon as possible after the effective date of this
 article, the Health and Human Services Commission shall implement
 Section 531.0164, Government Code, as added by this article.
 (c)  As soon as possible after a state agency or entity is
 abolished as provided by Section 531.0202, Government Code, as
 added by this Act, the Health and Human Services Commission shall,
 in accordance with Section 531.0164, Government Code, as added by
 this article, ensure that an Internet website operated by or
 related to the abolished state agency or entity is updated,
 transferred, or consolidated to reflect the consolidation mandated
 by Subchapter A-1, Chapter 531, Government Code, as added by this
 Act.
 SECTION 2.06.  (a)  Subchapter A, Chapter 531, Government
 Code, is amended by adding Section 531.0171 to read as follows:
 Sec. 531.0171.  OFFICE OF OMBUDSMAN. (a)  The executive
 commissioner shall establish the commission's office of the
 ombudsman with authority and responsibility over the health and
 human services system in performing the following functions:
 (1)  providing dispute resolution services for the
 health and human services system;
 (2)  performing consumer protection and advocacy
 functions related to health and human services, including assisting
 a consumer or other interested person with:
 (A)  raising a matter within the health and human
 services system that the person feels is being ignored; and
 (B)  obtaining information regarding a filed
 complaint; and
 (3)  collecting inquiry and complaint data related to
 the health and human services system.
 (b)  The office of the ombudsman does not have the authority
 to provide a separate process for resolving complaints or appeals.
 (c)  The executive commissioner shall develop a standard
 process for tracking and reporting received inquiries and
 complaints within the health and human services system.  The
 process must provide for the centralized tracking of inquiries and
 complaints submitted to field, regional, or other local health and
 human services system offices.
 (d)  Using the process developed under Subsection (c), the
 office of the ombudsman shall collect inquiry and complaint data
 from all offices, agencies, divisions, and other entities within
 the health and human services system.  To assist with the collection
 of data under this subsection, the office may access any system or
 process for recording inquiries and complaints used or maintained
 within the health and human services system.
 (b)  As soon as possible after the effective date of this
 article, the executive commissioner of the Health and Human
 Services Commission shall implement Section 531.0171, Government
 Code, as added by this article.
 (c)  Notwithstanding any other provision of state law, each
 office of an ombudsman established before the effective date of
 this section that performs ombudsman duties for a state agency or
 entity subject to abolition under Section 531.0202, Government
 Code, as added by this Act, is abolished on the date the state
 agency or entity for which the office performs ombudsman duties is
 abolished in accordance with the transition plan under Section
 531.0204, Government Code, as added by this Act, except that the
 following are not abolished and continue in existence:
 (1)  the office of independent ombudsman for state
 supported living centers established under Subchapter C, Chapter
 555, Health and Safety Code;
 (2)  the office of the state long-term care ombudsman;
 and
 (3)  any other ombudsman office serving all or part of
 the health and human services system that is required by federal
 law.
 (d)  The executive commissioner of the Health and Human
 Services Commission shall certify which offices of ombudsman are
 abolished, and which are exempt from abolition, under Subsection
 (c) of this section and shall publish that certification in the
 Texas Register not later than September 1, 2016.
 SECTION 2.07.  (a)  Subchapter A, Chapter 531, Government
 Code, is amended by adding Section 531.0192 to read as follows:
 Sec. 531.0192.  HEALTH AND HUMAN SERVICES SYSTEM HOTLINE AND
 CALL CENTER COORDINATION. (a)  The commission shall establish a
 process to ensure all health and human services system hotlines and
 call centers are necessary and appropriate.  Under the process, the
 commission shall:
 (1)  develop criteria for use in assessing whether a
 hotline or call center serves an ongoing purpose;
 (2)  develop and maintain an inventory of all system
 hotlines and call centers;
 (3)  use the inventory and assessment criteria
 developed under this subsection to periodically consolidate
 hotlines and call centers along appropriate functional lines; and
 (4)  develop an approval process designed to ensure
 that a newly established hotline or call center, including the
 telephone system and contract terms for the hotline or call center,
 meets policies and standards established by the commission.
 (b)  In consolidating hotlines and call centers under
 Subsection (a)(3), the commission shall seek to maximize the use
 and effectiveness of the commission's 2-1-1 telephone number.
 (b)  As soon as possible after the effective date of this
 article, the Health and Human Services Commission shall implement
 Section 531.0192, Government Code, as added by this article.
 (c)  Not later than March 1, 2016, the Health and Human
 Services Commission shall complete an initial assessment and
 consolidation of hotlines and call centers, as required by Section
 531.0192, Government Code, as added by this article.
 (d)  As soon as possible after a state agency or entity is
 abolished as provided by Section 531.0202, Government Code, as
 added by this Act, the Health and Human Services Commission shall,
 in accordance with Section 531.0192, Government Code, as added by
 this article, ensure a hotline or call center operated or
 administered by the abolished state agency or entity is transferred
 or consolidated to reflect the consolidation mandated by Subchapter
 A-1, Chapter 531, Government Code, as added by this Act.
 SECTION 2.08.  (a)  Section 531.02111(b), Government Code,
 as amended by S.B. 219, Acts of the 84th Legislature, Regular
 Session, 2015, is amended to read as follows:
 (b)  The report must include:
 (1)  for each state agency described by Subsection (a):
 (A)  a description of each of the components of
 Medicaid operated by the agency; and
 (B)  an accounting of all funds related to
 Medicaid received and disbursed by the agency during the period
 covered by the report, including:
 (i)  the amount of any federal Medicaid
 funds allocated to the agency for the support of each of the
 Medicaid components operated by the agency;
 (ii)  the amount of any funds appropriated
 by the legislature to the agency for each of those components; and
 (iii)  the amount of Medicaid payments and
 related expenditures made by or in connection with each of those
 components; and
 (2)  for each Medicaid component identified in the
 report:
 (A)  the amount and source of funds or other
 revenue received by or made available to the agency for the
 component; [and]
 (B)  the amount spent on each type of service or
 benefit provided by or under the component;
 (C)  the amount spent on component operations,
 including eligibility determination, claims processing, and case
 management; and
 (D)  the amount spent on any other administrative
 costs [information required by Section 531.02112(b)].
 (b)  The following provisions, including provisions amended
 by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015,
 are repealed:
 (1)  Section 531.02112, Government Code;
 (2)  Sections 531.03131(f) and (g), Government Code;
 (3)  Section 2155.144(o), Government Code; and
 (4)  Section 22.0251(b), Human Resources Code.
 SECTION 2.09.  (a)  Subchapter B, Chapter 531, Government
 Code, is amended by adding Section 531.02118 to read as follows:
 Sec. 531.02118.  STREAMLINING MEDICAID PROVIDER ENROLLMENT
 AND CREDENTIALING PROCESSES. (a)  The commission shall streamline
 provider enrollment and credentialing processes under Medicaid.
 (b)  In streamlining the Medicaid provider enrollment
 process, the commission shall establish a centralized Internet
 portal through which providers may enroll in Medicaid.  The
 commission may use the Internet portal created under this
 subsection to create a single, consolidated Medicaid provider
 enrollment and credentialing process.
 (c)  In streamlining the Medicaid provider credentialing
 process under this section, the commission may designate a
 centralized credentialing entity and may:
 (1)  share information in the database established
 under Subchapter C, Chapter 32, Human Resources Code, with the
 centralized credentialing entity; and
 (2)  require all managed care organizations
 contracting with the commission to provide health care services to
 Medicaid recipients under a managed care plan issued by the
 organization to use the centralized credentialing entity as a hub
 for the collection and sharing of information.
 (d)  If cost-effective, the commission may contract with a
 third party to develop the single, consolidated Medicaid provider
 enrollment and credentialing process authorized under Subsection
 (b).
 (b)  The Health and Human Services Commission shall
 streamline provider enrollment and credentialing processes as
 required under Section 531.02118, Government Code, as added by this
 article, not later than September 1, 2016.
 SECTION 2.10.  (a)  Section 531.02141, Government Code, is
 amended by adding Subsections (c), (d), and (e) to read as follows:
 (c)  The commission shall regularly evaluate data submitted
 by managed care organizations that contract with the commission
 under Chapter 533 to determine whether:
 (1)  the data continues to serve a useful purpose; and
 (2)  additional data is needed to oversee contracts or
 evaluate the effectiveness of Medicaid.
 (d)  The commission shall collect Medicaid managed care data
 that effectively captures the quality of services received by
 Medicaid recipients.
 (e)  The commission shall develop a dashboard for agency
 leadership that is designed to assist leadership with overseeing
 Medicaid and comparing the performance of managed care
 organizations participating in Medicaid.  The dashboard must
 identify a concise number of important Medicaid indicators,
 including key data, performance measures, trends, and problems.
 (b)  Not later than March 1, 2016, the Health and Human
 Services Commission shall develop the dashboard required by Section
 531.02141(e), Government Code, as added by this article.
 SECTION 2.11.  Subchapter B, Chapter 531, Government Code,
 is amended by adding Section 531.02731 to read as follows:
 Sec. 531.02731.  REPORT OF INFORMATION RESOURCES MANAGER TO
 COMMISSION. (a)  Notwithstanding Section 2054.075(b), the
 information resources manager of a health and human services agency
 shall report directly to the executive commissioner or a deputy
 executive commissioner designated by the executive commissioner.
 (b)  This section expires on the last day of the period
 prescribed by Section 531.02001(2).
 SECTION 2.12.  Section 531.102, Government Code, is amended
 by adding Subsections (p) and (q) to read as follows:
 (p)  In accordance with Section 533.015(b), the office shall
 consult with the executive commissioner regarding the adoption of
 rules defining the office's role in and jurisdiction over, and the
 frequency of, audits of managed care organizations participating in
 Medicaid that are conducted by the office and the commission.
 (q)  The office shall coordinate all audit and oversight
 activities, including the development of audit plans, risk
 assessments, and findings, with the commission to minimize the
 duplication of activities. In coordinating activities under this
 subsection, the office shall:
 (1)  on an annual basis, seek input from the commission
 and consider previous audits and onsite visits made by the
 commission for purposes of determining whether to audit a managed
 care organization participating in Medicaid; and
 (2)  request the results of any informal audit or
 onsite visit performed by the commission that could inform the
 office's risk assessment when determining whether to conduct, or
 the scope of, an audit of a managed care organization participating
 in Medicaid.
 SECTION 2.13.  (a)  Section 531.1031(a), Government Code,
 as amended by S.B. 219, Acts of the 84th Legislature, Regular
 Session, 2015, is amended to read as follows:
 (a)  In this section and Sections 531.1032, 531.1033, and
 531.1034:
 (1)  "Health care professional" means a person issued a
 license[, registration, or certification] to engage in a health
 care profession.
 (1-a)  "License" means a license, certificate,
 registration, permit, or other authorization that:
 (A)  is issued by a licensing authority; and
 (B)  must be obtained before a person may practice
 or engage in a particular business, occupation, or profession.
 (1-b)  "Licensing authority" means a department,
 commission, board, office, or other agency of the state that issues
 a license.
 (1-c)  "Office" means the commission's office of
 inspector general unless a different meaning is plainly required by
 the context in which the term appears.
 (2)  "Participating agency" means:
 (A)  the Medicaid fraud enforcement divisions of
 the office of the attorney general;
 (B)  each licensing authority [board or agency]
 with authority to issue a license to[, register, regulate, or
 certify] a health care professional or managed care organization
 that may participate in Medicaid; and
 (C)  the [commission's] office [of inspector
 general].
 (3)  "Provider" has the meaning assigned by Section
 531.1011(10)(A).
 (b)  Subchapter C, Chapter 531, Government Code, is amended
 by adding Sections 531.1032, 531.1033, and 531.1034 to read as
 follows:
 Sec. 531.1032.  OFFICE OF INSPECTOR GENERAL:  CRIMINAL
 HISTORY RECORD INFORMATION CHECK.  (a)  The office and each
 licensing authority that requires the submission of fingerprints
 for the purpose of conducting a criminal history record information
 check of a health care professional shall enter into a memorandum of
 understanding to ensure that only persons who are licensed and in
 good standing as health care professionals participate as providers
 in Medicaid. The memorandum under this section may be combined with
 a memorandum authorized under Section 531.1031(c-1) and must
 include a process by which:
 (1)  the office may confirm with a licensing authority
 that a health care professional is licensed and in good standing for
 purposes of determining eligibility to participate in Medicaid; and
 (2)  the licensing authority immediately notifies the
 office if:
 (A)  a provider's license has been revoked or
 suspended; or
 (B)  the licensing authority has taken
 disciplinary action against a provider.
 (b)  The office may not, for purposes of determining a health
 care professional's eligibility to participate in Medicaid as a
 provider, conduct a criminal history record information check of a
 health care professional who the office has confirmed under
 Subsection (a) is licensed and in good standing. This subsection
 does not prohibit the office from performing a criminal history
 record information check of a provider that is required or
 appropriate for other reasons, including for conducting an
 investigation of fraud, waste, or abuse.
 (c)  For purposes of determining eligibility to participate
 in Medicaid and subject to Subsection (d), the office, after
 seeking public input, shall establish and the executive
 commissioner by rule shall adopt guidelines for the evaluation of
 criminal history record information of providers and potential
 providers.  The guidelines must outline conduct, by provider type,
 that may be contained in criminal history record information that
 will result in exclusion of a person from Medicaid as a provider,
 taking into consideration:
 (1)  the extent to which the underlying conduct relates
 to the services provided under Medicaid;
 (2)  the degree to which the person would interact with
 Medicaid recipients as a provider; and
 (3)  any previous evidence that the person engaged in
 fraud, waste, or abuse under Medicaid.
 (d)  The guidelines adopted under Subsection (c) may not
 impose stricter standards for the eligibility of a person to
 participate in Medicaid than a licensing authority described by
 Subsection (a) requires for the person to engage in a health care
 profession without restriction in this state.
 (e)  The office and the commission shall use the guidelines
 adopted under Subsection (c) to determine whether a provider
 participating in Medicaid continues to be eligible to participate
 in Medicaid as a provider.
 (f)  The provider enrollment contractor, if applicable, and
 a managed care organization participating in Medicaid shall defer
 to the office regarding whether a person's criminal history record
 information precludes the person from participating in Medicaid as
 a provider.
 Sec. 531.1033.  MONITORING OF CERTAIN FEDERAL DATABASES.
 The office shall routinely check appropriate federal databases,
 including databases referenced in 42 C.F.R. Section 455.436, to
 ensure that a person who is excluded from participating in Medicaid
 or in the Medicare program by the federal government is not
 participating as a provider in Medicaid.
 Sec. 531.1034.  TIME TO DETERMINE PROVIDER ELIGIBILITY;
 PERFORMANCE METRICS.  (a)  Not later than the 10th day after the
 date the office receives the complete application of a health care
 professional seeking to participate in Medicaid, the office shall
 inform the commission or the health care professional, as
 appropriate, of the office's determination regarding whether the
 health care professional should be excluded from participating in
 Medicaid based on:
 (1)  information concerning the licensing status of the
 health care professional obtained as described by Section
 531.1032(a);
 (2)  information contained in the criminal history
 record information check that is evaluated in accordance with
 guidelines adopted under Section 531.1032(c);
 (3)  a review of federal databases under Section
 531.1033;
 (4)  the pendency of an open investigation by the
 office; or
 (5)  any other reason the office determines
 appropriate.
 (b)  Completion of an on-site visit of a health care
 professional during the period prescribed by Subsection (a) is not
 required.
 (c)  The office shall develop performance metrics to measure
 the length of time for conducting a determination described by
 Subsection (a) with respect to applications that are complete when
 submitted and all other applications.
 (c)  Not later than September 1, 2016, the executive
 commissioner of the Health and Human Services Commission shall
 adopt the guidelines required under Section 531.1032(c),
 Government Code, as added by this section.
 SECTION 2.14.  (a) Chapter 531, Government Code, is amended
 by adding Subchapter M to read as follows:
 SUBCHAPTER M.  COORDINATION OF QUALITY INITIATIVES
 Sec. 531.451.  OPERATIONAL PLAN TO COORDINATE INITIATIVES.
 (a)  The commission shall develop and implement a comprehensive,
 coordinated operational plan to ensure a consistent approach across
 the major quality initiatives of the health and human services
 system for improving the quality of health care.
 (b)  The operational plan developed under this section must
 include broad goals for the improvement of the quality of health
 care in this state, including health care services provided through
 Medicaid.
 Sec. 531.452.  REVISION OF MAJOR INITIATIVES.
 Notwithstanding any other law, the commission shall revise major
 quality initiatives of the health and human services system in
 accordance with the operational plan and health care quality
 improvement goals developed under Section 531.451.  To the extent
 it is possible, the commission shall ensure that outcome measure
 data is collected and reported consistently across all major
 quality initiatives to improve the evaluation of the initiatives'
 statewide impact.
 Sec. 531.453.  INCENTIVES FOR INITIATIVE COORDINATION. The
 commission shall consider and, if the commission determines it
 appropriate, develop incentives that promote coordination among
 the various major quality initiatives in accordance with this
 subchapter, including projects and initiatives approved under the
 Texas Health Care Transformation and Quality Improvement Program
 waiver issued under Section 1115 of the federal Social Security Act
 (42 U.S.C. Section 1315).
 Sec. 531.454.  RENEWAL OF FEDERAL AUTHORIZATION FOR MEDICAID
 REFORM.  (a)  When the commission seeks to renew the Texas Health
 Care Transformation and Quality Improvement Program waiver issued
 under Section 1115 of the federal Social Security Act (42 U.S.C.
 Section 1315), the commission shall, to the extent permitted under
 federal law:
 (1)  seek to reduce the number of approved project
 options that may be funded under the waiver using delivery system
 reform incentive payments to include only those projects that are:
 (A)  the most critical for improving the quality
 of health care, including behavioral health services; and
 (B)  consistent with the operational plan and
 health care quality improvement goals developed under Section
 531.451; and
 (2)  allow a delivery system reform incentive payment
 project that, as a result of Subdivision (1), is no longer an option
 under the waiver, to continue operating as long as the project meets
 funding requirements and outcome objectives.
 (b)  In reducing the number of approved project options under
 Subsection (a), the commission shall take into consideration the
 diversity of local and regional health care needs in this state.
 (c)  This section expires September 1, 2017.
 (b)  As soon as possible after the effective date of this
 article, the Health and Human Services Commission shall develop the
 operational plan and perform the other actions corresponding with
 the operational plan as required under Subchapter M, Chapter 531,
 Government Code, as added by this article.
 SECTION 2.15.  Section 533.00255(a), Government Code, is
 amended to read as follows:
 (a)  In this section, "behavioral health services" means
 mental health and substance abuse disorder services[, other than
 those provided through the NorthSTAR demonstration project].
 SECTION 2.16.  Subchapter A, Chapter 533, Government Code,
 is amended by adding Section 533.002551 to read as follows:
 Sec. 533.002551.  MONITORING OF COMPLIANCE WITH BEHAVIORAL
 HEALTH INTEGRATION. (a)  In this section, "behavioral health
 services" has the meaning assigned by Section 533.00255.
 (b)  In monitoring contracts the commission enters into with
 managed care organizations under this chapter, the commission
 shall:
 (1)  ensure managed care organizations fully integrate
 behavioral health services into a recipient's primary care
 coordination;
 (2)  use performance audits and other oversight tools
 to improve monitoring of the provision and coordination of
 behavioral health services; and
 (3)  establish performance measures that may be used to
 determine the effectiveness of the integration of behavioral health
 services.
 (c)  In monitoring a managed care organization's compliance
 with behavioral health services integration requirements under
 this section, the commission shall give particular attention to a
 managed care organization that provides behavioral health services
 through a contract with a third party.
 SECTION 2.17.  Subchapter A, Chapter 533, Government Code,
 is amended by adding Section 533.0061 to read as follows:
 Sec. 533.0061.  FREQUENCY OF PROVIDER CREDENTIALING. A
 managed care organization that contracts with the commission to
 provide health care services to Medicaid recipients under a managed
 care plan issued by the organization shall formally recredential a
 physician or other provider with the frequency required by the
 single, consolidated Medicaid provider enrollment and
 credentialing process, if that process is created under Section
 531.02118.  The required frequency of recredentialing may be less
 frequent than once in any three-year period, notwithstanding any
 other law.
 SECTION 2.18.  Subchapter A, Chapter 533, Government Code,
 is amended by adding Section 533.0077 to read as follows:
 Sec. 533.0077.  STATEWIDE EFFORT TO PROMOTE MAINTENANCE OF
 ELIGIBILITY. (a)  The commission shall develop and implement a
 statewide effort to assist recipients who satisfy Medicaid
 eligibility requirements and who receive Medicaid services through
 a managed care organization with maintaining eligibility and
 avoiding lapses in coverage under Medicaid.
 (b)  As part of its effort under Subsection (a), the
 commission shall:
 (1)  require each managed care organization providing
 health care services to recipients to assist those recipients with
 maintaining eligibility;
 (2)  if the commission determines it is cost-effective,
 develop specific strategies for assisting recipients who receive
 Supplemental Security Income (SSI) benefits under 42 U.S.C. Section
 1381 et seq. with maintaining eligibility; and
 (3)  ensure information that is relevant to a
 recipient's eligibility status is provided to the managed care
 organization through which the recipient receives Medicaid
 services.
 SECTION 2.19.  (a)  Section 533.015, Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 Sec. 533.015.  COORDINATION OF EXTERNAL OVERSIGHT
 ACTIVITIES. (a)  To the extent possible, the commission shall
 coordinate all external oversight activities to minimize
 duplication of oversight of managed care plans under Medicaid and
 disruption of operations under those plans.
 (b)  The executive commissioner, after consulting with the
 commission's office of inspector general, shall, by rule, define
 the commission's and office's roles in and jurisdiction over, and
 frequency of, audits of managed care organizations participating in
 Medicaid that are conducted by the commission and the commission's
 office of inspector general.
 (c)  In accordance with Section 531.102(q), the commission
 shall share with the commission's office of inspector general, at
 the request of the office, the results of any informal audit or
 onsite visit that could inform that office's risk assessment when
 determining whether to conduct, or the scope of, an audit of a
 managed care organization participating in Medicaid.
 (b)  Not later than September 1, 2016, the executive
 commissioner of the Health and Human Services Commission shall
 adopt rules required by Section 533.015(b), Government Code, as
 added by this article.
 SECTION 2.20.  Section 533.041(a), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (a)  The executive commissioner shall appoint a state
 Medicaid managed care advisory committee.  The advisory committee
 consists of representatives of:
 (1)  hospitals;
 (2)  managed care organizations and participating
 health care providers;
 (3)  primary care providers and specialty care
 providers;
 (4)  state agencies;
 (5)  low-income recipients or consumer advocates
 representing low-income recipients;
 (6)  recipients with disabilities, including
 recipients with an intellectual or developmental disability or with
 physical disabilities, or consumer advocates representing those
 recipients;
 (7)  parents of children who are recipients;
 (8)  rural providers;
 (9)  advocates for children with special health care
 needs;
 (10)  pediatric health care providers, including
 specialty providers;
 (11)  long-term services and supports providers,
 including nursing facility providers and direct service workers;
 (12)  obstetrical care providers;
 (13)  community-based organizations serving low-income
 children and their families;
 (14)  community-based organizations engaged in
 perinatal services and outreach;
 (15)  recipients who are 65 years of age or older;
 (16)  recipients with mental illness;
 (17)  nonphysician mental health providers
 participating in the Medicaid managed care program; and
 (18)  entities with responsibilities for the delivery
 of long-term services and supports or other Medicaid service
 delivery, including:
 (A)  independent living centers;
 (B)  area agencies on aging;
 (C)  aging and disability resource centers
 established under the Aging and Disability Resource Center
 initiative funded in part by the federal Administration on Aging
 and the Centers for Medicare and Medicaid Services; and
 (D)  community mental health and intellectual
 disability centers[; and
 [(E)     the NorthSTAR Behavioral Health Program
 provided under Chapter 534, Health and Safety Code].
 SECTION 2.21.  (a) Chapter 533, Government Code, is amended
 by adding Subchapter E to read as follows:
 SUBCHAPTER E.  PILOT PROGRAM TO INCREASE INCENTIVE-BASED PROVIDER
 PAYMENTS
 Sec. 533.081.  DEFINITION.  In this subchapter, "pilot
 program" means the pilot program to increase incentive-based
 provider payments established under Section 533.082.
 Sec. 533.082.  PILOT PROGRAM TO INCREASE INCENTIVE-BASED
 PROVIDER PAYMENTS.  With the assistance of the work group
 established under Section 533.083, the commission shall develop a
 pilot program to increase the use and effectiveness of
 incentive-based provider payments by managed care organizations
 providing services under the Medicaid managed care program.  The
 pilot program must:
 (1)  be operated in one managed care service delivery
 area selected in accordance with Section 533.083(a)(1)(A);
 (2)  require all managed care organizations in the
 selected service delivery area to participate in the program; and
 (3)  pilot incentive-based provider payment structures
 determined in accordance with Section 533.083(a)(2).
 Sec. 533.083.  PILOT PROGRAM DEVELOPMENT WORK GROUP.
 (a)  The executive commissioner shall establish a work group to
 assist the commission with developing the pilot program required
 under this subchapter.  The work group shall assist the commission
 with:
 (1)  selecting:
 (A)  the managed care service delivery area in
 which the pilot program will be implemented; and
 (B)  managed care programs to be included in the
 pilot program;
 (2)  determining the types of incentive-based provider
 payment structures to pilot and the services that most
 appropriately fit into those payment structures; and
 (3)  determining a timeline for implementation of the
 pilot program that requires implementation to begin not later than
 January 1, 2017.
 (b)  The executive commissioner shall determine the number
 of members of the work group and ensure that the work group consists
 of representatives from:
 (1)  the commission;
 (2)  managed care organizations providing services
 under the Medicaid managed care program; and
 (3)  professional associations composed of health care
 providers.
 (c)  A member of the work group serves at the pleasure of the
 executive commissioner and without compensation.
 Sec. 533.084.  ASSESSMENT AND IMPLEMENTATION OF PILOT
 PROGRAM FINDINGS. Not later than September 1, 2018, and
 notwithstanding any other law, the commission shall:
 (1)  based on the results of the pilot program,
 identify which types of incentive-based provider payment
 structures are most appropriate for statewide implementation and
 the services that can be provided under those structures; and
 (2)  require that a managed care organization that has
 contracted with the commission to provide health care services to
 recipients implement the payment structures identified under
 Subdivision (1).
 Sec. 533.085.  EXPIRATION. Sections 533.081, 533.082, and
 533.083 and this section expire September 1, 2018.
 (b)  As soon as possible after the effective date of this
 article, the executive commissioner of the Health and Human
 Services Commission shall establish the work group and the
 commission shall develop the pilot program required under
 Subchapter E, Chapter 533, Government Code, as added by this
 article.
 (c)  The Health and Human Services Commission, in a contract
 between the commission and a managed care organization under
 Chapter 533, Government Code, that is entered into or renewed on or
 after September 1, 2018, shall require that the managed care
 organization implement the incentive-based provider payment
 structures identified by the commission under Section 533.084,
 Government Code, as added by this article.
 (d)  The Health and Human Services Commission shall seek to
 amend contracts entered into with managed care organizations under
 Chapter 533, Government Code, before September 1, 2018, to require
 that those managed care organizations implement the
 incentive-based provider payment structures identified by the
 commission under Section 533.084, Government Code, as added by this
 article. To the extent of a conflict between that section and a
 provision of a contract with a managed care organization entered
 into before September 1, 2018, the contract provision prevails.
 SECTION 2.22.  Section 1001.080(b), Health and Safety Code,
 is amended to read as follows:
 (b)  This section applies to health or mental health
 benefits, services, or assistance provided by the department that
 the department anticipates will be impacted by a health insurance
 exchange as defined by Section 1001.081(a), including:
 (1)  community primary health care services provided
 under Chapter 31;
 (2)  women's and children's health services provided
 under Chapter 32;
 (3)  services for children with special health care
 needs provided under Chapter 35;
 (4)  epilepsy program assistance provided under
 Chapter 40;
 (5)  hemophilia program assistance provided under
 Chapter 41;
 (6)  kidney health care services provided under Chapter
 42;
 (7)  human immunodeficiency virus infection and
 sexually transmitted disease prevention programs and services
 provided under Chapter 85;
 (8)  immunization programs provided under Chapter 161;
 (9)  programs and services provided by the Rio Grande
 State Center under Chapter 252;
 (10)  mental health services for adults provided under
 Chapter 534;
 (11)  mental health services for children provided
 under Chapter 534;
 (12)  [the NorthSTAR Behavioral Health Program
 provided under Chapter 534;
 [(13)]  programs and services provided by community
 mental health hospitals under Chapter 552;
 (13) [(14)]  programs and services provided by state
 mental health hospitals under Chapter 552; and
 (14) [(15)]  any other health or mental health program
 or service designated by the department.
 SECTION 2.23.  Section 1001.201(2), Health and Safety Code,
 as added by Chapter 1306 (H.B. 3793), Acts of the 83rd Legislature,
 Regular Session, 2013, is amended to read as follows:
 (2)  "Local mental health authority" has the meaning
 assigned by Section 531.002 [and includes the local behavioral
 health authority for the NorthSTAR Behavioral Health Program].
 ARTICLE 3.  HEALTH AND HUMAN SERVICES SYSTEM ADVISORY ENTITIES
 SECTION 3.01.  Section 262.353(d), Family Code, is amended
 to read as follows:
 (d)  Not later than September 30, 2014, the department and
 the Department of State Health Services shall file a report with the
 legislature [and the Council on Children and Families] on the
 results of the study required by Subsection (a).  The report must
 include:
 (1)  each option to prevent relinquishment of parental
 custody that was considered during the study;
 (2)  each option recommended for implementation, if
 any;
 (3)  each option that is implemented using existing
 resources;
 (4)  any policy or statutory change needed to implement
 a recommended option;
 (5)  the fiscal impact of implementing each option, if
 any;
 (6)  the estimated number of children and families that
 may be affected by the implementation of each option; and
 (7)  any other significant information relating to the
 study.
 SECTION 3.02.  (a)  Section 531.012, Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 Sec. 531.012.  ADVISORY COMMITTEES. (a)  The executive
 commissioner shall establish and maintain [may appoint] advisory
 committees to consider issues and solicit public input across all
 major areas of the health and human services system, including
 relating to the following issues:
 (1)  Medicaid and other social services programs;
 (2)  managed care under Medicaid and the child health
 plan program;
 (3)  health care quality initiatives;
 (4)  aging;
 (5)  persons with disabilities, including persons with
 autism;
 (6)  rehabilitation, including for persons with brain
 injuries;
 (7)  children;
 (8)  public health;
 (9)  behavioral health;
 (10)  regulatory matters;
 (11)  protective services;
 (12)  prevention efforts; and
 (13)  faith- and community-based initiatives.
 (b)  Chapter 2110 applies to an advisory committee
 established under this section.
 (c)  The executive commissioner shall adopt rules:
 (1)  in compliance with Chapter 2110 to govern an
 advisory committee's purpose, tasks, reporting requirements, and
 date of abolition; and
 (2)  related to an advisory committee's:
 (A)  size and quorum requirements;
 (B)  membership, including:
 (i)  qualifications to be a member,
 including any experience requirements;
 (ii)  required geographic representation;
 (iii)  appointment procedures; and
 (iv)  terms of members; and
 (C)  duty to comply with the requirements for open
 meetings under Chapter 551.
 (d)  An advisory committee established under this section
 shall report any recommendations to the executive commissioner at a
 meeting of the Health and Human Services Commission Executive
 Council established under Section 531.0051 [as needed].
 (b)  Not later than March 1, 2016, the executive commissioner
 of the Health and Human Services Commission shall adopt rules under
 Section 531.012, Government Code, as amended by this article.
 SECTION 3.03.  Subchapter A, Chapter 531, Government Code,
 is amended by adding Section 531.0121 to read as follows:
 Sec. 531.0121.  PUBLIC ACCESS TO ADVISORY COMMITTEE
 MEETINGS.  (a)  This section applies to an advisory committee
 established under Section 531.012.
 (b)  The commission shall create a master calendar that
 includes all advisory committee meetings across the health and
 human services system.
 (c)  The commission shall make available on the commission's
 Internet website:
 (1)  the master calendar;
 (2)  all meeting materials for an advisory committee
 meeting; and
 (3)  streaming live video of each advisory committee
 meeting.
 (d)  The commission shall provide Internet access in each
 room used for a meeting that appears on the master calendar.
 SECTION 3.04.  Section 531.0216(b), Government Code, is
 amended to read as follows:
 (b)  In developing the system, the executive commissioner by
 rule shall:
 (1)  review programs and pilot projects in other states
 to determine the most effective method for reimbursement;
 (2)  establish billing codes and a fee schedule for
 services;
 (3)  provide for an approval process before a provider
 can receive reimbursement for services;
 (4)  consult with the Department of State Health
 Services [and the telemedicine and telehealth advisory committee]
 to establish procedures to:
 (A)  identify clinical evidence supporting
 delivery of health care services using a telecommunications system;
 and
 (B)  annually review health care services,
 considering new clinical findings, to determine whether
 reimbursement for particular services should be denied or
 authorized;
 (5)  establish a separate provider identifier for
 telemedicine medical services providers, telehealth services
 providers, and home telemonitoring services providers; and
 (6)  establish a separate modifier for telemedicine
 medical services, telehealth services, and home telemonitoring
 services eligible for reimbursement.
 SECTION 3.05.  Section 531.02443(e), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (e)  The department, with the advice and assistance of [the
 interagency task force on ensuring appropriate care settings for
 persons with disabilities and] representatives of family members or
 legally authorized representatives of adult residents, persons
 with an intellectual disability, state supported living centers,
 and local intellectual and developmental disability authorities,
 shall:
 (1)  develop an effective community living options
 information process;
 (2)  create uniform procedures for the implementation
 of the community living options information process; and
 (3)  minimize any potential conflict of interest
 regarding the community living options information process between
 a state supported living center and an adult resident, an adult
 resident's legally authorized representative, or a local
 intellectual and developmental disability authority.
 SECTION 3.06.  Section 531.051(c), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (c)  In adopting rules for the consumer direction models, the
 executive commissioner shall:
 (1)  [with assistance from the work group established
 under Section 531.052,] determine which services are appropriate
 and suitable for delivery through consumer direction;
 (2)  ensure that each consumer direction model is
 designed to comply with applicable federal and state laws;
 (3)  maintain procedures to ensure that a potential
 consumer or the consumer's legally authorized representative has
 adequate and appropriate information, including the
 responsibilities of a consumer or representative under each service
 delivery option, to make an informed choice among the types of
 consumer direction models;
 (4)  require each consumer or the consumer's legally
 authorized representative to sign a statement acknowledging
 receipt of the information required by Subdivision (3);
 (5)  maintain procedures to monitor delivery of
 services through consumer direction to ensure:
 (A)  adherence to existing applicable program
 standards;
 (B)  appropriate use of funds; and
 (C)  consumer satisfaction with the delivery of
 services;
 (6)  ensure that authorized program services that are
 not being delivered to a consumer through consumer direction are
 provided by a provider agency chosen by the consumer or the
 consumer's legally authorized representative; and
 (7)  [work in conjunction with the work group
 established under Section 531.052 to] set a timetable to complete
 the implementation of the consumer direction models.
 SECTION 3.07.  Section 531.067, Government Code, as amended
 by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
 amended to read as follows:
 Sec. 531.067.  PROGRAM TO IMPROVE AND MONITOR CERTAIN
 OUTCOMES OF RECIPIENTS UNDER CHILD HEALTH PLAN PROGRAM AND MEDICAID
 [PUBLIC ASSISTANCE HEALTH BENEFIT REVIEW AND DESIGN COMMITTEE].
 The [(a)     The commission shall appoint a Public Assistance Health
 Benefit Review and Design Committee. The committee consists of
 nine representatives of health care providers participating in
 Medicaid or the child health plan program, or both. The committee
 membership must include at least three representatives from each
 program.
 [(b)     The executive commissioner shall designate one member
 to serve as presiding officer for a term of two years.
 [(c)     The committee shall meet at the call of the presiding
 officer.
 [(d)     The committee shall review and provide recommendations
 to the commission regarding health benefits and coverages provided
 under Medicaid, the child health plan program, and any other
 income-based health care program administered by the commission or
 a health and human services agency. In performing its duties under
 this subsection, the committee must:
 [(1)     review benefits provided under each of the
 programs; and
 [(2)     review procedures for addressing high
 utilization of benefits by recipients.
 [(e)     The commission shall provide administrative support
 and resources as necessary for the committee to perform its duties
 under this section.
 [(f)  Section 2110.008 does not apply to the committee.
 [(g)  In performing the duties under this section, the]
 commission may design and implement a program to improve and
 monitor clinical and functional outcomes of a recipient of services
 under Medicaid or the state child health plan program. The program
 may use financial, clinical, and other criteria based on pharmacy,
 medical services, and other claims data related to Medicaid or the
 child health plan program. [The commission must report to the
 committee on the fiscal impact, including any savings associated
 with the strategies utilized under this section.]
 SECTION 3.08.  (a)  Section 531.0691, Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is redesignated as Section 531.0735, Government Code, to read
 as follows:
 Sec. 531.0735 [531.0691].  MEDICAID DRUG UTILIZATION REVIEW
 PROGRAM:  DRUG USE REVIEWS AND ANNUAL REPORT. (a)  In this section:
 (1)  "Medicaid Drug Utilization Review Program" means
 the program operated by the vendor drug program to improve the
 quality of pharmaceutical care under Medicaid.
 (2)  "Prospective drug use review" means the review of
 a patient's drug therapy and prescription drug order or medication
 order before dispensing or distributing a drug to the patient.
 (3)  "Retrospective drug use review" means the review
 of prescription drug claims data to identify patterns of
 prescribing.
 (b)  The commission shall provide for an increase in the
 number and types of retrospective drug use reviews performed each
 year under the Medicaid Drug Utilization Review Program, in
 comparison to the number and types of reviews performed in the state
 fiscal year ending August 31, 2009.
 (c)  In determining the number and types of drug use reviews
 to be performed, the commission shall:
 (1)  allow for the repeat of retrospective drug use
 reviews that address ongoing drug therapy problems and that, in
 previous years, improved client outcomes and reduced Medicaid
 spending;
 (2)  consider implementing disease-specific
 retrospective drug use reviews that address ongoing drug therapy
 problems in this state and that reduced Medicaid prescription drug
 use expenditures in other states; and
 (3)  regularly examine Medicaid prescription drug
 claims data to identify occurrences of potential drug therapy
 problems that may be addressed by repeating successful
 retrospective drug use reviews performed in this state and other
 states.
 (d)  In addition to any other information required by federal
 law, the commission shall include the following information in the
 annual report regarding the Medicaid Drug Utilization Review
 Program:
 (1)  a detailed description of the program's
 activities; and
 (2)  estimates of cost savings anticipated to result
 from the program's performance of prospective and retrospective
 drug use reviews.
 (e)  The cost-saving estimates for prospective drug use
 reviews under Subsection (d) must include savings attributed to
 drug use reviews performed through the vendor drug program's
 electronic claims processing system and clinical edits screened
 through the prior authorization system implemented under Section
 531.073.
 (f)  The commission shall post the annual report regarding
 the Medicaid Drug Utilization Review Program on the commission's
 website.
 (b)  Subchapter B, Chapter 531, Government Code, is amended
 by adding Section 531.0736 to read as follows:
 Sec. 531.0736.  DRUG UTILIZATION REVIEW BOARD.  (a)  In this
 section, "board" means the Drug Utilization Review Board.
 (b)  In addition to performing any other duties required by
 federal law, the board shall:
 (1)  develop and submit to the commission
 recommendations for preferred drug lists adopted by the commission
 under Section 531.072;
 (2)  suggest to the commission restrictions or clinical
 edits on prescription drugs;
 (3)  recommend to the commission educational
 interventions for Medicaid providers;
 (4)  review drug utilization across Medicaid; and
 (5)  perform other duties that may be specified by law
 and otherwise make recommendations to the commission.
 (c)  The executive commissioner shall determine the
 composition of the board, which must:
 (1)  comply with applicable federal law, including 42
 C.F.R. Section 456.716; and
 (2)  include two representatives of managed care
 organizations as nonvoting members, one of whom must be a physician
 and one of whom must be a pharmacist.
 (d)  Members appointed under Subsection (c)(2) may attend
 quarterly and other regularly scheduled meetings, but may not:
 (1)  attend executive sessions; or
 (2)  otherwise access confidential drug pricing
 information.
 (e)  Members of the board serve staggered four-year terms.
 (f)  The voting members of the board shall elect from among
 the voting members a presiding officer.
 (g)  The board shall hold a public meeting quarterly at the
 call of the presiding officer and shall permit public comment
 before voting on any changes in the preferred drug lists.  The board
 shall hold public meetings at other times at the call of the
 presiding officer.  Minutes of each meeting shall be made available
 to the public not later than the 10th business day after the date
 the minutes are approved.  The board may meet in executive session
 to discuss confidential information as described by Subsection (i).
 (h)  In developing its recommendations for the preferred
 drug lists, the board shall consider the clinical efficacy, safety,
 and cost-effectiveness of and any program benefit associated with a
 product.
 (i)  The executive commissioner shall adopt rules governing
 the operation of the board, including rules governing the
 procedures used by the board for providing notice of a meeting and
 rules prohibiting the board from discussing confidential
 information described by Section 531.071 in a public meeting.  The
 board shall comply with the rules adopted under this subsection and
 Subsection (j).
 (j)  In addition to the rules under Subsection (i), the
 executive commissioner by rule shall require the board or the
 board's designee to present a summary of any clinical efficacy and
 safety information or analyses regarding a drug under consideration
 for a preferred drug list that is provided to the board by a private
 entity that has contracted with the commission to provide the
 information.  The board or the board's designee shall provide the
 summary in electronic form before the public meeting at which
 consideration of the drug occurs.  Confidential information
 described by Section 531.071 must be omitted from the summary.  The
 summary must be posted on the commission's Internet website.
 (k)  To the extent feasible, the board shall review all drug
 classes included in the preferred drug lists adopted under Section
 531.072 at least once every 12 months and may recommend inclusions
 to and exclusions from the lists to ensure that the lists provide
 for cost-effective medically appropriate drug therapies for
 Medicaid recipients, children receiving health benefits coverage
 under the child health plan program, and any other affected
 individuals.
 (l)  The commission shall provide administrative support and
 resources as necessary for the board to perform its duties.
 (m)  Chapter 2110 does not apply to the board.
 (n)  The commission or the commission's agent shall publicly
 disclose, immediately after the board's deliberations conclude,
 each specific drug recommended for or against preferred drug list
 status for each drug class included in the preferred drug list for
 the Medicaid vendor drug program.  The disclosure must be posted on
 the commission's Internet website not later than the 10th business
 day after the date of conclusion of board deliberations that result
 in recommendations made to the executive commissioner regarding the
 placement of drugs on the preferred drug list.  The public
 disclosure must include:
 (1)  the general basis for the recommendation for each
 drug class; and
 (2)  for each recommendation, whether a supplemental
 rebate agreement or a program benefit agreement was reached under
 Section 531.070.
 (c)  Section 531.0692, Government Code, is redesignated as
 Section 531.0737, Government Code, and amended to read as follows:
 Sec. 531.0737 [531.0692].  [MEDICAID] DRUG UTILIZATION
 REVIEW BOARD:  CONFLICTS OF INTEREST. (a)  A member of the [board
 of the Medicaid] Drug Utilization Review Board [Program] may not
 have a contractual relationship, ownership interest, or other
 conflict of interest with a pharmaceutical manufacturer or labeler
 or with an entity engaged by the commission to assist in the
 administration of the Medicaid Drug Utilization Review Program.
 (b)  The executive commissioner may implement this section
 by adopting rules that identify prohibited relationships and
 conflicts or requiring the board to develop a conflict-of-interest
 policy that applies to the board.
 (d)  Sections 531.072(c) and (e), Government Code, are
 amended to read as follows:
 (c)  In making a decision regarding the placement of a drug
 on each of the preferred drug lists, the commission shall consider:
 (1)  the recommendations of the Drug Utilization Review
 Board [Pharmaceutical and Therapeutics Committee established]
 under Section 531.0736 [531.074];
 (2)  the clinical efficacy of the drug;
 (3)  the price of competing drugs after deducting any
 federal and state rebate amounts; and
 (4)  program benefit offerings solely or in conjunction
 with rebates and other pricing information.
 (e)  In this subsection, "labeler" and "manufacturer" have
 the meanings assigned by Section 531.070. The commission shall
 ensure that:
 (1)  a manufacturer or labeler may submit written
 evidence supporting the inclusion of a drug on the preferred drug
 lists before a supplemental agreement is reached with the
 commission; and
 (2)  any drug that has been approved or has had any of
 its particular uses approved by the United States Food and Drug
 Administration under a priority review classification will be
 reviewed by the Drug Utilization Review Board [Pharmaceutical and
 Therapeutics Committee] at the next regularly scheduled meeting of
 the board [committee]. On receiving notice from a manufacturer or
 labeler of the availability of a new product, the commission, to the
 extent possible, shall schedule a review for the product at the next
 regularly scheduled meeting of the board [committee].
 (e)  Section 531.073(b), Government Code, is amended to read
 as follows:
 (b)  The commission shall establish procedures for the prior
 authorization requirement under the Medicaid vendor drug program to
 ensure that the requirements of 42 U.S.C. Section 1396r-8(d)(5) and
 its subsequent amendments are met. Specifically, the procedures
 must ensure that:
 (1)  a prior authorization requirement is not imposed
 for a drug before the drug has been considered at a meeting of the
 Drug Utilization Review Board [Pharmaceutical and Therapeutics
 Committee established] under Section 531.0736 [531.074];
 (2)  there will be a response to a request for prior
 authorization by telephone or other telecommunications device
 within 24 hours after receipt of a request for prior authorization;
 and
 (3)  a 72-hour supply of the drug prescribed will be
 provided in an emergency or if the commission does not provide a
 response within the time required by Subdivision (2).
 (f)  Section 531.0741, Government Code, is amended to read as
 follows:
 Sec. 531.0741.  PUBLICATION OF INFORMATION REGARDING
 COMMISSION DECISIONS ON PREFERRED DRUG LIST PLACEMENT. The
 commission shall publish on the commission's Internet website any
 decisions on preferred drug list placement, including:
 (1)  a list of drugs reviewed and the commission's
 decision for or against placement on a preferred drug list of each
 drug reviewed;
 (2)  for each recommendation, whether a supplemental
 rebate agreement or a program benefit agreement was reached under
 Section 531.070; and
 (3)  the rationale for any departure from a
 recommendation of the Drug Utilization Review Board
 [pharmaceutical and therapeutics committee established] under
 Section 531.0736 [531.074].
 (g)  Section 531.074, Government Code, as amended by S.B.
 219, Acts of the 84th Legislature, Regular Session, 2015, is
 repealed.
 (h)  The term of a member serving on the Medicaid Drug
 Utilization Review Board on September 1, 2015, expires on that
 date.  Not later than September 1, 2015, the executive commissioner
 of the Health and Human Services Commission shall appoint members
 to the Drug Utilization Review Board in accordance with Section
 531.0736, Government Code, as added by this article, for terms
 beginning September 2, 2015. In making the initial appointments
 and notwithstanding Section 531.0736(e), Government Code, as added
 by this article, the executive commissioner shall designate as
 close to one-half as possible of the members to serve for terms
 expiring September 1, 2017, and the remaining members to serve for
 terms expiring September 1, 2019.
 (i)  Not later than January 1, 2016, the executive
 commissioner of the Health and Human Services Commission shall
 adopt or amend rules as necessary to reflect the changes in law made
 to the Drug Utilization Review Board under Section 531.0736,
 Government Code, as added by this article, including rules that
 reflect the changes to the board's functions and composition.
 SECTION 3.09.  The heading to Subchapter D, Chapter 531,
 Government Code, is amended to read as follows:
 SUBCHAPTER D.  PLAN TO SUPPORT GUARDIANSHIPS [GUARDIANSHIP
 ADVISORY BOARD]
 SECTION 3.10.  Section 531.124, Government Code, is amended
 to read as follows:
 Sec. 531.124.  COMMISSION DUTIES.  The [(a)    With the advice
 of the advisory board, the] commission shall develop and, subject
 to appropriations, implement a plan to:
 (1)  ensure that each incapacitated individual in this
 state who needs a guardianship or another less restrictive type of
 assistance to make decisions concerning the incapacitated
 individual's own welfare and financial affairs receives that
 assistance; and
 (2)  foster the establishment and growth of local
 volunteer guardianship programs.
 [(b)     The advisory board shall biennially review and comment
 on the minimum standards adopted under Section 111.041 and the plan
 implemented under Subsection (a) and shall include its conclusions
 in the report submitted under Section 531.1235.]
 SECTION 3.11.  Section 531.159(f), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (f)  The executive commissioner by rule shall develop
 procedures by which to conduct the reviews required by Subsections
 (c), (d), and (e).  [In developing the procedures, the commission
 may seek input from the work group on children's long-term
 services, health services, and mental health services established
 under Section 22.035, Human Resources Code.]
 SECTION 3.12.  Section 531.907(a), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (a)  Based on [the recommendations of the advisory committee
 established under Section 531.904 and] feedback provided by
 interested parties, the commission in stage two of implementing the
 health information exchange system may expand the system by:
 (1)  providing an electronic health record for each
 child enrolled in the child health plan program;
 (2)  including state laboratory results information in
 an electronic health record, including the results of newborn
 screenings and tests conducted under the Texas Health Steps
 program, based on the system developed for the health passport
 under Section 266.006, Family Code;
 (3)  improving data-gathering capabilities for an
 electronic health record so that the record may include basic
 health and clinical information in addition to available claims
 information, as determined by the executive commissioner;
 (4)  using evidence-based technology tools to create a
 unique health profile to alert health care providers regarding the
 need for additional care, education, counseling, or health
 management activities for specific patients; and
 (5)  continuing to enhance the electronic health record
 created for each Medicaid recipient as technology becomes available
 and interoperability capabilities improve.
 SECTION 3.13.  Section 531.909, Government Code, is amended
 to read as follows:
 Sec. 531.909.  INCENTIVES. The commission [and the advisory
 committee established under Section 531.904] shall develop
 strategies to encourage health care providers to use the health
 information exchange system, including incentives, education, and
 outreach tools to increase usage.
 SECTION 3.14.  Section 533.00251(c), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (c)  Subject to Section 533.0025 and notwithstanding any
 other law, the commission [, in consultation with the advisory
 committee,] shall provide benefits under Medicaid to recipients who
 reside in nursing facilities through the STAR + PLUS Medicaid
 managed care program.  In implementing this subsection, the
 commission shall ensure:
 (1)  that the commission is responsible for setting the
 minimum reimbursement rate paid to a nursing facility under the
 managed care program, including the staff rate enhancement paid to
 a nursing facility that qualifies for the enhancement;
 (2)  that a nursing facility is paid not later than the
 10th day after the date the facility submits a clean claim;
 (3)  the appropriate utilization of services
 consistent with criteria established by the commission;
 (4)  a reduction in the incidence of potentially
 preventable events and unnecessary institutionalizations;
 (5)  that a managed care organization providing
 services under the managed care program provides discharge
 planning, transitional care, and other education programs to
 physicians and hospitals regarding all available long-term care
 settings;
 (6)  that a managed care organization providing
 services under the managed care program:
 (A)  assists in collecting applied income from
 recipients; and
 (B)  provides payment incentives to nursing
 facility providers that reward reductions in preventable acute care
 costs and encourage transformative efforts in the delivery of
 nursing facility services, including efforts to promote a
 resident-centered care culture through facility design and
 services provided;
 (7)  the establishment of a portal that is in
 compliance with state and federal regulations, including standard
 coding requirements, through which nursing facility providers
 participating in the STAR + PLUS Medicaid managed care program may
 submit claims to any participating managed care organization;
 (8)  that rules and procedures relating to the
 certification and decertification of nursing facility beds under
 Medicaid are not affected; and
 (9)  that a managed care organization providing
 services under the managed care program, to the greatest extent
 possible, offers nursing facility providers access to:
 (A)  acute care professionals; and
 (B)  telemedicine, when feasible and in
 accordance with state law, including rules adopted by the Texas
 Medical Board.
 SECTION 3.15.  Section 533.00253(b), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (b)  Subject to Section 533.0025, the commission shall[, in
 consultation with the advisory committee and the Children's Policy
 Council established under Section 22.035, Human Resources Code,]
 establish a mandatory STAR Kids capitated managed care program
 tailored to provide Medicaid benefits to children with
 disabilities.  The managed care program developed under this
 section must:
 (1)  provide Medicaid benefits that are customized to
 meet the health care needs of recipients under the program through a
 defined system of care;
 (2)  better coordinate care of recipients under the
 program;
 (3)  improve the health outcomes of recipients;
 (4)  improve recipients' access to health care
 services;
 (5)  achieve cost containment and cost efficiency;
 (6)  reduce the administrative complexity of
 delivering Medicaid benefits;
 (7)  reduce the incidence of unnecessary
 institutionalizations and potentially preventable events by
 ensuring the availability of appropriate services and care
 management;
 (8)  require a health home; and
 (9)  coordinate and collaborate with long-term care
 service providers and long-term care management providers, if
 recipients are receiving long-term services and supports outside of
 the managed care organization.
 SECTION 3.16.  Section 533.00256(a), Government Code, is
 amended to read as follows:
 (a)  In consultation with [the Medicaid and CHIP
 Quality-Based Payment Advisory Committee established under Section
 536.002 and other] appropriate stakeholders with an interest in the
 provision of acute care services and long-term services and
 supports under the Medicaid managed care program, the commission
 shall:
 (1)  establish a clinical improvement program to
 identify goals designed to improve quality of care and care
 management and to reduce potentially preventable events, as defined
 by Section 536.001; and
 (2)  require managed care organizations to develop and
 implement collaborative program improvement strategies to address
 the goals.
 SECTION 3.17.  Section 534.052, Government Code, as amended
 by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
 amended to read as follows:
 Sec. 534.052.  IMPLEMENTATION OF SYSTEM REDESIGN.  The
 commission and department shall[, in consultation with the advisory
 committee,] jointly implement the acute care services and long-term
 services and supports system for individuals with an intellectual
 or developmental disability in the manner and in the stages
 described in this chapter.
 SECTION 3.18.  Section 534.104(d), Government Code, is
 amended to read as follows:
 (d)  The department[, in consultation with the advisory
 committee,] shall evaluate each submitted managed care strategy
 proposal and determine whether:
 (1)  the proposed strategy satisfies the requirements
 of this section; and
 (2)  the private services provider that submitted the
 proposal has a demonstrated ability to provide the long-term
 services and supports appropriate to the individuals who will
 receive services through the pilot program based on the proposed
 strategy, if implemented.
 SECTION 3.19.  Section 534.105, Government Code, is amended
 to read as follows:
 Sec. 534.105.  PILOT PROGRAM:  MEASURABLE GOALS. (a)  The
 department[, in consultation with the advisory committee,] shall
 identify measurable goals to be achieved by each pilot program
 implemented under this subchapter.  The identified goals must:
 (1)  align with information that will be collected
 under Section 534.108(a); and
 (2)  be designed to improve the quality of outcomes for
 individuals receiving services through the pilot program.
 (b)  The department[, in consultation with the advisory
 committee,] shall propose specific strategies for achieving the
 identified goals.  A proposed strategy may be evidence-based if
 there is an evidence-based strategy available for meeting the pilot
 program's goals.
 SECTION 3.20.  Section 534.108(d), Government Code, is
 amended to read as follows:
 (d)  On or before December 1, 2016, and December 1, 2017, the
 commission and the department[, in consultation with the advisory
 committee,] shall review and evaluate the progress and outcomes of
 each pilot program implemented under this subchapter and submit a
 report to the legislature during the operation of the pilot
 programs.  Each report must include recommendations for program
 improvement and continued implementation.
 SECTION 3.21.  Section 534.201(d), Government Code, is
 amended to read as follows:
 (d)  In implementing the transition described by Subsection
 (b), the commission shall develop a process to receive and evaluate
 input from interested statewide stakeholders [that is in addition
 to the input provided by the advisory committee].
 SECTION 3.22.  Section 534.202(d), Government Code, is
 amended to read as follows:
 (d)  In implementing the transition described by Subsection
 (b), the commission shall develop a process to receive and evaluate
 input from interested statewide stakeholders [that is in addition
 to the input provided by the advisory committee].
 SECTION 3.23.  Section 535.051(c), Government Code, is
 amended to read as follows:
 (c)  The commissioner of higher education[, in consultation
 with the presiding officer of the interagency coordinating group,]
 shall designate one employee from an institution of higher
 education, as that term is defined under Section 61.003, Education
 Code, to serve as a liaison for faith- and community-based
 organizations.
 SECTION 3.24.  Section 535.104(a), Government Code, is
 amended to read as follows:
 (a)  The commission shall:
 (1)  contract with the State Commission on National and
 Community Service to administer funds appropriated from the account
 in a manner that:
 (A)  consolidates the capacity of and strengthens
 national service and community and faith- and community-based
 initiatives; and
 (B)  leverages public and private funds to benefit
 this state;
 (2)  develop a competitive process to be used in
 awarding grants from account funds that is consistent with state
 law and includes objective selection criteria;
 (3)  oversee the delivery of training and other
 assistance activities under this subchapter;
 (4)  develop criteria limiting awards of grants under
 Section 535.105(1)(A) to small and medium-sized faith- and
 community-based organizations that provide charitable services to
 persons in this state;
 (5)  establish general state priorities for the
 account;
 (6)  establish and monitor performance and outcome
 measures for persons to whom grants are awarded under this
 subchapter; and
 (7)  establish policies and procedures to ensure that
 any money appropriated from the account to the commission that is
 allocated to build the capacity of a faith-based organization or
 for a faith-based initiative [, including money allocated for the
 establishment of the advisory committee under Section 535.108,] is
 not used to advance a sectarian purpose or to engage in any form of
 proselytization.
 SECTION 3.25.  Section 535.106(b), Government Code, is
 amended to read as follows:
 (b)  If awarded a contract or grant under Section 535.104,
 the State Commission on National and Community Service must provide
 to the commission periodic reports on a schedule determined by the
 executive commissioner.  The schedule of periodic reports must
 include an annual report that includes:
 (1)  a specific accounting with respect to the use by
 that entity of money appropriated from the account, including the
 names of persons to whom grants have been awarded and the purposes
 of those grants; and
 (2)  a summary of the efforts of the faith- and
 community-based liaisons designated under Section 535.051 to
 comply with the duties imposed by and the purposes of Section
 [Sections] 535.052 [and 535.053].
 SECTION 3.26.  Section 536.001(20), Government Code, is
 amended to read as follows:
 (20)  "Potentially preventable readmission" means a
 return hospitalization of a person within a period specified by the
 commission that may have resulted from deficiencies in the care or
 treatment provided to the person during a previous hospital stay or
 from deficiencies in post-hospital discharge follow-up.  The term
 does not include a hospital readmission necessitated by the
 occurrence of unrelated events after the discharge.  The term
 includes the readmission of a person to a hospital for:
 (A)  the same condition or procedure for which the
 person was previously admitted;
 (B)  an infection or other complication resulting
 from care previously provided;
 (C)  a condition or procedure that indicates that
 a surgical intervention performed during a previous admission was
 unsuccessful in achieving the anticipated outcome; or
 (D)  another condition or procedure of a similar
 nature, as determined by the executive commissioner [after
 consulting with the advisory committee].
 SECTION 3.27.  Section 536.003(a), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (a)  The commission[, in consultation with the advisory
 committee,] shall develop quality-based outcome and process
 measures that promote the provision of efficient, quality health
 care and that can be used in the child health plan program and
 Medicaid to implement quality-based payments for acute care
 services and long-term services and supports across all delivery
 models and payment systems, including fee-for-service and managed
 care payment systems.  Subject to Subsection (a-1), the commission,
 in developing outcome and process measures under this section, must
 include measures that are based on potentially preventable events
 and that advance quality improvement and innovation.  The
 commission may change measures developed:
 (1)  to promote continuous system reform, improved
 quality, and reduced costs; and
 (2)  to account for managed care organizations added to
 a service area.
 SECTION 3.28.  Section 536.004(a), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (a)  Using quality-based outcome and process measures
 developed under Section 536.003 and subject to this section, the
 commission, after consulting with [the advisory committee and
 other] appropriate stakeholders with an interest in the provision
 of acute care and long-term services and supports under the child
 health plan program and Medicaid, shall develop quality-based
 payment systems, and require managed care organizations to develop
 quality-based payment systems, for compensating a physician or
 other health care provider participating in the child health plan
 program or Medicaid that:
 (1)  align payment incentives with high-quality,
 cost-effective health care;
 (2)  reward the use of evidence-based best practices;
 (3)  promote the coordination of health care;
 (4)  encourage appropriate physician and other health
 care provider collaboration;
 (5)  promote effective health care delivery models; and
 (6)  take into account the specific needs of the child
 health plan program enrollee and Medicaid recipient populations.
 SECTION 3.29.  Section 536.006(a), Government Code, is
 amended to read as follows:
 (a)  The commission [and the advisory committee] shall:
 (1)  ensure transparency in the development and
 establishment of:
 (A)  quality-based payment and reimbursement
 systems under Section 536.004 and Subchapters B, C, and D,
 including the development of outcome and process measures under
 Section 536.003; and
 (B)  quality-based payment initiatives under
 Subchapter E, including the development of quality of care and
 cost-efficiency benchmarks under Section 536.204(a) and efficiency
 performance standards under Section 536.204(b);
 (2)  develop guidelines establishing procedures for
 providing notice and information to, and receiving input from,
 managed care organizations, health care providers, including
 physicians and experts in the various medical specialty fields, and
 other stakeholders, as appropriate, for purposes of developing and
 establishing the quality-based payment and reimbursement systems
 and initiatives described under Subdivision (1);
 (3)  in developing and establishing the quality-based
 payment and reimbursement systems and initiatives described under
 Subdivision (1), consider that as the performance of a managed care
 organization or physician or other health care provider improves
 with respect to an outcome or process measure, quality of care and
 cost-efficiency benchmark, or efficiency performance standard, as
 applicable, there will be a diminishing rate of improved
 performance over time; and
 (4)  develop web-based capability to provide managed
 care organizations and health care providers with data on their
 clinical and utilization performance, including comparisons to
 peer organizations and providers located in this state and in the
 provider's respective region.
 SECTION 3.30.  Section 536.052(b), Government Code, is
 amended to read as follows:
 (b)  The commission [, after consulting with the advisory
 committee,] shall develop quality of care and cost-efficiency
 benchmarks, including benchmarks based on a managed care
 organization's performance with respect to reducing potentially
 preventable events and containing the growth rate of health care
 costs.
 SECTION 3.31.  Section 536.102(a), Government Code, is
 amended to read as follows:
 (a)  Subject to this subchapter, the commission [, after
 consulting with the advisory committee,] may develop and implement
 quality-based payment systems for health homes designed to improve
 quality of care and reduce the provision of unnecessary medical
 services.  A quality-based payment system developed under this
 section must:
 (1)  base payments made to a participating enrollee's
 health home on quality and efficiency measures that may include
 measurable wellness and prevention criteria and use of
 evidence-based best practices, sharing a portion of any realized
 cost savings achieved by the health home, and ensuring quality of
 care outcomes, including a reduction in potentially preventable
 events; and
 (2)  allow for the examination of measurable wellness
 and prevention criteria, use of evidence-based best practices, and
 quality of care outcomes based on the type of primary or specialty
 care provider practice.
 SECTION 3.32.  Section 536.152(a), Government Code, is
 amended to read as follows:
 (a)  Subject to Subsection (b), using the data collected
 under Section 536.151 and the diagnosis-related groups (DRG)
 methodology implemented under Section 536.005, if applicable, the
 commission [, after consulting with the advisory committee,] shall
 to the extent feasible adjust child health plan and Medicaid
 reimbursements to hospitals, including payments made under the
 disproportionate share hospitals and upper payment limit
 supplemental payment programs, based on the hospital's performance
 with respect to exceeding, or failing to achieve, outcome and
 process measures developed under Section 536.003 that address the
 rates of potentially preventable readmissions and potentially
 preventable complications.
 SECTION 3.33.  Section 536.202(a), Government Code, is
 amended to read as follows:
 (a)  The commission shall [, after consulting with the
 advisory committee,] establish payment initiatives to test the
 effectiveness of quality-based payment systems, alternative
 payment methodologies, and high-quality, cost-effective health
 care delivery models that provide incentives to physicians and
 other health care providers to develop health care interventions
 for child health plan program enrollees or Medicaid recipients, or
 both, that will:
 (1)  improve the quality of health care provided to the
 enrollees or recipients;
 (2)  reduce potentially preventable events;
 (3)  promote prevention and wellness;
 (4)  increase the use of evidence-based best practices;
 (5)  increase appropriate physician and other health
 care provider collaboration;
 (6)  contain costs; and
 (7)  improve integration of acute care services and
 long-term services and supports, including discharge planning from
 acute care services to community-based long-term services and
 supports.
 SECTION 3.34.  Section 536.204(a), Government Code, is
 amended to read as follows:
 (a)  The executive commissioner shall [:
 [(1)  consult with the advisory committee to] develop
 quality of care and cost-efficiency benchmarks and measurable goals
 that a payment initiative must meet to ensure high-quality and
 cost-effective health care services and healthy outcomes [; and
 [(2)     approve benchmarks and goals developed as
 provided by Subdivision (1)].
 SECTION 3.35.  Section 536.251(a), Government Code, is
 amended to read as follows:
 (a)  Subject to this subchapter, the commission, after
 consulting with [the advisory committee and other] appropriate
 stakeholders representing nursing facility providers with an
 interest in the provision of long-term services and supports, may
 develop and implement quality-based payment systems for Medicaid
 long-term services and supports providers designed to improve
 quality of care and reduce the provision of unnecessary services.  A
 quality-based payment system developed under this section must base
 payments to providers on quality and efficiency measures that may
 include measurable wellness and prevention criteria and use of
 evidence-based best practices, sharing a portion of any realized
 cost savings achieved by the provider, and ensuring quality of care
 outcomes, including a reduction in potentially preventable events.
 SECTION 3.36.  Section 538.052(a), Government Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (a)  Subject to Subsection (b), the commission shall solicit
 and accept suggestions for clinical initiatives, in either written
 or electronic form, from:
 (1)  a member of the state legislature;
 (2)  the executive commissioner;
 (3)  the commissioner of aging and disability services;
 (4)  the commissioner of state health services;
 (5)  the commissioner of the Department of Family and
 Protective Services;
 (6)  the commissioner of assistive and rehabilitative
 services;
 (7)  the medical care advisory committee established
 under Section 32.022, Human Resources Code; and
 (8)  the physician payment advisory committee created
 under Section 32.022(d), Human Resources Code[; and
 [(9)     the Electronic Health Information Exchange
 System Advisory Committee established under Section 531.904].
 SECTION 3.37.  Sections 533A.0335(c) and (d), Health and
 Safety Code, as redesignated from Sections 533.0335(c) and (d),
 Health and Safety Code, by S.B. 219, Acts of the 84th Legislature,
 Regular Session, 2015, are amended to read as follows:
 (c)  The department[, in consultation with the advisory
 committee,] shall establish a prior authorization process for
 requests for supervised living or residential support services
 available in the home and community-based services (HCS) Medicaid
 waiver program.  The process must ensure that supervised living or
 residential support services available in the home and
 community-based services (HCS) Medicaid waiver program are
 available only to individuals for whom a more independent setting
 is not appropriate or available.
 (d)  The department shall [cooperate with the advisory
 committee to] establish the prior authorization process required by
 Subsection (c).  This subsection expires January 1, 2024.
 SECTION 3.38.  Section 533A.03551(b), Health and Safety
 Code, as redesignated from Section 533.03551(b), Health and Safety
 Code, and amended by S.B. 219, Acts of the 84th Legislature, Regular
 Session, 2015, is amended to read as follows:
 (b)  The department, in cooperation with the Texas
 Department of Housing and Community Affairs, the Department of
 Agriculture, and the Texas State Affordable Housing Corporation[,
 and the Intellectual and Developmental Disability System Redesign
 Advisory Committee established under Section 534.053, Government
 Code], shall coordinate with federal, state, and local public
 housing entities as necessary to expand opportunities for
 accessible, affordable, and integrated housing to meet the complex
 needs of individuals with disabilities, including individuals with
 intellectual and developmental disabilities.
 SECTION 3.39.  Sections 1002.060(c) and (e), Health and
 Safety Code, are amended to read as follows:
 (c)  The commission, department, or institute or an officer
 or employee of the commission, department, or institute[, including
 a board member,] may not disclose any information that is
 confidential under this section.
 (e)  An officer or employee of the commission, department, or
 institute[, including a board member,] may not be examined in a
 civil, criminal, special, administrative, or other proceeding as to
 information that is confidential under this section.
 SECTION 3.40.  Section 1002.061, Health and Safety Code, is
 amended by amending Subsection (c) and adding Subsection (c-1) to
 read as follows:
 (c)  Except as otherwise provided by law, each of the
 following state agencies or systems [agency represented on the
 board as a nonvoting member] shall provide funds to support the
 institute and implement this chapter:
 (1)  the department;
 (2)  the commission;
 (3)  the Texas Department of Insurance;
 (4)  the Employees Retirement System of Texas;
 (5)  the Teacher Retirement System of Texas;
 (6)  the Texas Medical Board;
 (7)  the Department of Aging and Disability Services;
 (8)  the Texas Workforce Commission;
 (9)  the Texas Higher Education Coordinating Board; and
 (10)  each state agency or system of higher education
 that purchases or provides health care services, as determined by
 the governor.
 (c-1)  The commission shall establish a funding formula to
 determine the level of support each state agency or system listed in
 Subsection (c) is required to provide.
 SECTION 3.41.  (a)  Section 32.022(b), Human Resources
 Code, as amended by S.B. 219, Acts of the 84th Legislature, Regular
 Session, 2015, is amended to read as follows:
 (b)  The executive commissioner shall appoint the committee
 in compliance with the requirements of the federal agency
 administering medical assistance. The appointments shall:
 (1)  provide for a balanced representation of the
 general public, providers, consumers, and other persons, state
 agencies, or groups with knowledge of and interest in the
 committee's field of work; and
 (2)  include one member who is the representative of a
 managed care organization.
 (b)  Not later than September 1, 2015, the executive
 commissioner of the Health and Human Services Commission shall
 appoint an additional member to the medical care advisory committee
 in accordance with Section 32.022(b)(2), Human Resources Code, as
 added by this article.
 SECTION 3.42.  Section 32.0641(a), Human Resources Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 (a)  To the extent permitted under and in a manner that is
 consistent with Title XIX, Social Security Act (42 U.S.C. Section
 1396 et seq.) and any other applicable law or regulation or under a
 federal waiver or other authorization, the executive commissioner
 shall adopt [, after consulting with the Medicaid and CHIP
 Quality-Based Payment Advisory Committee established under Section
 536.002, Government Code,] cost-sharing provisions that encourage
 personal accountability and appropriate utilization of health care
 services, including a cost-sharing provision applicable to a
 recipient who chooses to receive a nonemergency medical service
 through a hospital emergency room.
 SECTION 3.43.  Section 1352.004(b), Insurance Code, is
 amended to read as follows:
 (b)  The commissioner by rule shall require a health benefit
 plan issuer to provide adequate training to personnel responsible
 for preauthorization of coverage or utilization review under the
 plan.  The purpose of the training is to prevent denial of coverage
 in violation of Section 1352.003 and to avoid confusion of medical
 benefits with mental health benefits.  The commissioner [, in
 consultation with the Texas Traumatic Brain Injury Advisory
 Council,] shall prescribe by rule the basic requirements for the
 training described by this subsection.
 SECTION 3.44.  Section 1352.005(b), Insurance Code, is
 amended to read as follows:
 (b)  The commissioner [, in consultation with the Texas
 Traumatic Brain Injury Advisory Council,] shall prescribe by rule
 the specific contents and wording of the notice required under this
 section.
 SECTION 3.45.  (a)  The following provisions of the
 Government Code, including provisions amended by S.B. 219, Acts of
 the 84th Legislature, Regular Session, 2015, are repealed:
 (1)  Section 531.0217(j);
 (2)  Section 531.02172;
 (3)  Section 531.02173(c);
 (4)  Section 531.02441;
 (5)  Section 531.052;
 (6)  Section 531.0571;
 (7)  Section 531.068;
 (8)  Sections 531.121(1), (5), and (6);
 (9)  Section 531.122;
 (10)  Section 531.123;
 (11)  Section 531.1235;
 (12)  Section 531.251;
 (13)  Subchapters R and T, Chapter 531;
 (14)  Section 531.904;
 (15)  Section 533.00251(a)(1);
 (16)  Section 533.00252;
 (17)  Sections 533.00253(a)(1) and (f);
 (18)  Section 533.00254;
 (19)  Sections 533.00255(e) and (f);
 (20)  Section 533.00285;
 (21)  Subchapters B and C, Chapter 533;
 (22)  Section 534.001(1);
 (23)  Section 534.053;
 (24)  Section 535.053;
 (25)  Section 535.054;
 (26)  Section 535.055;
 (27)  Section 535.108;
 (28)  Section 536.001(1);
 (29)  Section 536.002; and
 (30)  Section 536.007(b).
 (b)  The following provisions of the Health and Safety Code,
 including provisions amended by S.B. 219, Acts of the 84th
 Legislature, Regular Session, 2015, are repealed:
 (1)  Subchapter C, Chapter 32;
 (2)  Section 62.151(e);
 (3)  Section 62.1571(c);
 (4)  Section 81.010;
 (5)  Section 92.011;
 (6)  Subchapter B, Chapter 92;
 (7)  Chapter 115;
 (8)  Section 241.187;
 (9)  Section 533A.0335(a)(1);
 (10)  Section 1002.001(1);
 (11)  Section 1002.051;
 (12)  Section 1002.052;
 (13)  Section 1002.053;
 (14)  Section 1002.055;
 (15)  Section 1002.056;
 (16)  Section 1002.057;
 (17)  Section 1002.058; and
 (18)  Section 1002.059.
 (c)  The following provisions of the Human Resources Code,
 including provisions amended by S.B. 219, Acts of the 84th
 Legislature, Regular Session, 2015, are repealed:
 (1)  Section 22.035; and
 (2)  Section 32.022(e).
 SECTION 3.46.  On the effective date of this article, the
 following advisory committees are abolished:
 (1)  the advisory committee on Medicaid and child
 health plan program rate and expenditure disparities;
 (2)  the Advisory Committee on Qualifications for
 Health Care Translators and Interpreters;
 (3)  the Behavioral Health Integration Advisory
 Committee;
 (4)  the Children's Policy Council;
 (5)  the Consumer Direction Work Group;
 (6)  the Council on Children and Families;
 (7)  the Electronic Health Information Exchange System
 Advisory Committee;
 (8)  the Guardianship Advisory Board;
 (9)  the hospital payment advisory committee;
 (10)  the Intellectual and Developmental Disability
 System Redesign Advisory Committee;
 (11)  the Interagency Coordinating Council for HIV and
 Hepatitis;
 (12)  the interagency coordinating group for faith- and
 community-based initiatives;
 (13)  the interagency task force on ensuring
 appropriate care settings for persons with disabilities;
 (14)  the Medicaid and CHIP Quality-Based Payment
 Advisory Committee;
 (15)  each Medicaid managed care advisory committee
 appointed for a health care service region under Subchapter B,
 Chapter 533, Government Code;
 (16)  the Perinatal Advisory Council;
 (17)  the Public Assistance Health Benefit Review and
 Design Committee;
 (18)  the renewing our communities account advisory
 committee;
 (19)  the STAR + PLUS Nursing Facility Advisory
 Committee;
 (20)  the STAR + PLUS Quality Council;
 (21)  the STAR Kids Managed Care Advisory Committee;
 (22)  the state Medicaid managed care advisory
 committee;
 (23)  the task force on domestic violence;
 (24)  the Interagency Task Force for Children With
 Special Needs;
 (25)  the telemedicine and telehealth advisory
 committee;
 (26)  the board of directors of the Texas Institute of
 Health Care Quality and Efficiency;
 (27)  the Texas Nonprofit Council;
 (28)  the Texas System of Care Consortium;
 (29)  the Texas Traumatic Brain Injury Advisory
 Council; and
 (30)  the volunteer advocate program advisory
 committee.
 ARTICLE 4.  CONTINUATION OF HEALTH AND HUMAN SERVICES POWERS AND
 DUTIES
 SECTION 4.01.  Section 531.004, Government Code, is amended
 to read as follows:
 Sec. 531.004.  SUNSET PROVISION.  The Health and Human
 Services Commission is subject to Chapter 325 (Texas Sunset Act).
 Unless continued in existence as provided by that chapter, the
 commission is abolished and this chapter expires September 1, 2027
 [2015].
 SECTION 4.02.  Section 108.016, Health and Safety Code, is
 amended to read as follows:
 Sec. 108.016.  SUNSET REVIEW.  Unless the commission is
 continued in existence in accordance with Chapter 325, Government
 Code (Texas Sunset Act), after the review required by Section
 531.004, Government Code [11.003(b)], this chapter expires on the
 date the commission is abolished under that section [September 1,
 2015].
 SECTION 4.03.  Section 1001.003, Health and Safety Code, is
 amended to read as follows:
 Sec. 1001.003.  SUNSET PROVISION.  Unless the commission is
 [The Department of State Health Services is subject to Chapter 325,
 Government Code (Texas Sunset Act).    Unless] continued in existence
 as provided by Chapter 325, Government Code [that chapter], after
 the review required by Section 531.004, Government Code, [the
 department is abolished and] this chapter expires on the date the
 commission is abolished under that section [September 1, 2015].
 SECTION 4.04.  Section 40.003, Human Resources Code, is
 amended to read as follows:
 Sec. 40.003.  SUNSET PROVISION.  Unless the commission is
 [The Department of Family and Protective Services is subject to
 Chapter 325, Government Code (Texas Sunset Act).    Unless] continued
 in existence as provided by Chapter 325, Government Code [that
 chapter], after the review required by Section 531.004, Government
 Code, [the department is abolished and] this chapter expires on the
 date the commission is abolished under that section [September 1,
 2015].
 SECTION 4.05.  Section 117.003, Human Resources Code, is
 amended to read as follows:
 Sec. 117.003.  SUNSET PROVISION.  Unless the commission
 is [The Department of Assistive and Rehabilitative Services is
 subject to Chapter 325, Government Code (Texas Sunset Act).   Unless]
 continued in existence as provided by Chapter 325, Government Code
 [that chapter], after the review required by Section 531.004,
 Government Code, [the department is abolished and] this chapter
 expires on the date the commission is abolished under that section
 [September 1, 2015].
 SECTION 4.06.  Section 161.003, Human Resources Code, as
 amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
 2015, is amended to read as follows:
 Sec. 161.003.  SUNSET PROVISION.  Unless the commission is
 [The department is subject to Chapter 325, Government Code (Texas
 Sunset Act).    Unless] continued in existence as provided by Chapter
 325, Government Code [that chapter], after the review required by
 Section 531.004, Government Code, [the department is abolished and]
 this chapter expires on the date the commission is abolished under
 that section [September 1, 2015].
 ARTICLE 5.  FEDERAL AUTHORIZATION AND EFFECTIVE DATE
 SECTION 5.01.  If before implementing any provision of this
 Act a state agency determines that a waiver or authorization from a
 federal agency is necessary for implementation of that provision,
 the agency affected by the provision shall request the waiver or
 authorization and may delay implementing that provision until the
 waiver or authorization is granted.
 SECTION 5.02.  Except as otherwise provided by this Act,
 this Act takes effect September 1, 2015.
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