84R4531 JSL/ADM-D
	By: Price	H.B. No. 2304

	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. 531.0201.  TRANSFERS TO COMMISSION.  (a) On the dates
	specified in the transition plan required under Section 531.0204,
	the powers, duties, functions, programs, and activities of each
	state agency or entity abolished by Section 531.0202 are
	transferred to the commission as provided by this subchapter.
	(b)  On the dates described by Subsection (a):
	(1)  all obligations and contracts of a state agency or
	entity abolished by Section 531.0202 are transferred to the
	commission;
	(2)  all property and records in the custody of a state
	agency or entity abolished by Section 531.0202 and all funds
	appropriated by the legislature to the state agency or entity shall
	be transferred to the commission; and
	(3)  all complaints, investigations, or contested
	cases that are pending before a state agency or entity abolished by
	Section 531.0202 or a governing person or entity of the state agency
	or entity are transferred without change in status to the
	commission.
	(c)  A rule, policy, or form adopted by or on behalf of a
	state agency or entity abolished by Section 531.0202 is a rule,
	policy, or form of the commission and remains in effect:
	(1)  until altered by the commission; or
	(2)  unless it conflicts with a rule, policy, or form of
	the commission.
	(d)  A license, permit, or certification in effect that was
	issued by a state agency or entity abolished by Section 531.0202 is
	continued in effect as a license, permit, or certification of the
	commission.
	Sec. 531.0202.  ABOLITION OF STATE AGENCIES AND ENTITIES.
	(a) On the dates specified in the transition plan required under
	Section 531.0204, the following state agencies and entities are
	abolished and their respective powers, duties, functions,
	programs, and activities are 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 Department of Family and Protective Services;
	(4)  the Department of State Health Services;
	(5)  the Health and Human Services Council;
	(6)  the Aging and Disability Services Council;
	(7)  the Assistive and Rehabilitative Services
	Council;
	(8)  the Family and Protective Services Council;
	(9)  the State Health Services Council;
	(10)  the Office for the Prevention of Developmental
	Disabilities; and
	(11)  the Texas Council on Autism and Pervasive
	Developmental Disorders.
	(b)  The abolition of a state agency or entity listed in
	Subsection (a) and the transfer of its powers, duties, functions,
	programs, activities, obligations, rights, contracts, records,
	property, funds, and employees 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
	powers, duties, functions, programs, and activities 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 powers, duties,
	functions, programs, and activities 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 powers, duties, functions, programs, and
	activities to be transferred under this subchapter and the funds
	and obligations that are related to the powers, duties, functions,
	programs, or activities;
	(B)  the transfer of the powers, duties,
	functions, programs, activities, records, property, funds,
	obligations, and employees 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, and 531.00562, 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 August 31, 2016, at least quarterly at the call
	of either chair, in addition to meeting at other times as determined
	appropriate by either chair; and
	(B)  during the period between September 1, 2016,
	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 powers, duties, functions,
	programs, and activities 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, and 531.00562, 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 transfer of powers, duties, functions,
	programs, and activities under Section 531.0201 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 and 531.00562, and other provisions
	enacted by the 84th Legislature that become law;
	(2)  include a broad plan and schedule that specify the
	date on which each state agency or entity subject to abolition under
	Section 531.0202 is abolished and the respective transfers under
	Section 531.0201 are accomplished, and the date on which each
	division of the commission is created and its director is
	appointed; and
	(3)  require all transfers under Section 531.0201 to be
	accomplished not later than September 1, 2016.
	(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)  Not later than the deadline specified by Subsection
	(a)(3), the commission shall begin administering the powers,
	duties, functions, programs, and activities assigned to the
	commission under this subchapter. The assumption of the
	administration of the powers, duties, functions, programs, and
	activities 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 programs administered 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 must
	approve the transition plan before the transition and work plans
	may be implemented.
	(e)  The executive commissioner shall publish in the Texas
	Register:
	(1)  the transition plan developed under this section;
	and
	(2)  any changes to the transition plan required by the
	Health and Human Services Transition Legislative Oversight
	Committee.
	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.
	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 after
	its abolition under Section 531.0202 means the commission or the
	division of the commission performing a function previously
	performed by the state agency or entity before its abolition, 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, after the abolition under Section 531.0202 of 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 its abolition, 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, after the abolition under Section 531.0202 of
	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 its abolition.
	(d)  This section applies notwithstanding Section
	531.001(4).  This subsection and Section 531.001(4) expire on the
	deadline specified in Section 531.0204(a)(3).
	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 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 relevant function previously performed
	by the state agency abolished by Section 531.0202 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,
	after the abolition under Section 531.0202 of the state agency that
	assumed or continued to perform a relevant 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 previously performed by the state agency
	abolished or renamed by Chapter 198 (H.B. 2292) 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 (c); and
	(2)  the governing body of a state agency listed in
	Section 531.0011(b) or (c).
	(c)  A reference to any of the following councils means the
	executive commissioner or the executive commissioner's designee,
	as appropriate, and a power, duty, function, program, or other
	activity of any of the following councils is a power, duty,
	function, program, or other activity 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
	deadline specified in Section 531.0204(a)(3).
	(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(d); 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 Subsections (b), (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 the
	Medicaid program, 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)  the medical assistance program under Chapter
	32, Human Resources Code;
	(D)  the nutritional assistance programs 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 deadline specified by Section 531.0204(a)(3).
	SECTION 1.06.  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 deadline specified by
	Section 531.0204(a)(3).
	SECTION 1.07.  (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
	Sections 531.008(a) and (d).
	(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 1.08.  Section 531.007, Government Code, is amended
	to read as follows:
	Sec. 531.007.  TERM. The executive commissioner serves a
	two-year term expiring February 1 of each odd-numbered year.
	SECTION 1.09.  (a)  Section 531.008, Government Code, is
	amended by amending Subsections (a) and (b) and adding Subsections
	(d) and (e) to read as follows:
	(a)  Subject to the requirements of this section [Subsection
	(c)], the executive commissioner shall [may] establish divisions
	within the commission as necessary for effective administration and
	for the discharge of the commission's functions.
	(b)  Subject to the requirements of this section [Subsection
	(c)], the executive commissioner may allocate and reallocate
	functions among the commission's divisions.
	(d)  In establishing divisions under this section, the
	executive commissioner shall:
	(1)  ensure that the commission is organized along
	functional lines; and
	(2)  consider creating a division within the commission
	for each of the following:
	(A)  medical and social services;
	(B)  state institutions and facilities functions;
	(C)  family and protective services;
	(D)  public health services;
	(E)  regulatory functions;
	(F)  centralized administrative services; and
	(G)  inspector general responsibilities.
	(e)  Subsection (c) applies only until the executive
	commissioner establishes divisions in accordance with Subsections
	(a) and (d).  This subsection and Subsection (c) expire on the
	deadline specified by Section 531.0204(a)(3).
	(b)  The executive commissioner of the Health and Human
	Services Commission shall establish divisions within the
	commission as required under Section 531.008(a), Government Code,
	as amended by this article, and Section 531.008(d), 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 1.10.  (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 divisions within
	the commission.  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 commission or a
	division within the commission;
	(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 commission 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
	commission under Subsection (b)(2), the office shall:
	(1)  ensure individuals receiving services from or
	participating in programs administered by the commission 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 commission staff 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 commission
	staff; 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 commission and divisions within the
	commission, 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 divisions or offices within the commission and
	the establishment of cross-functional teams when necessary to
	improve the coordination of services provided by the commission.
	(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
	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.
	(b)  The changes in law made by this section apply to a
	performance review performed on or after the date that the powers
	and duties of the Department of Family and Protective Services are
	transferred to the Health and Human Services Commission in
	accordance with Subchapter A-1, Chapter 531, Government Code, as
	added by this article.  A performance review to which Sections
	40.0515(d) and (e), Human Resources Code, as amended by this
	article, apply that is performed before that date is governed by the
	law in effect before the effective date of this article, and the
	former law is continued in effect for that purpose.
	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 deadline specified by Section
	531.0204(a)(3), 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 deadline
	specified by Section 531.0204(a)(3), 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, the
	following provisions of the Government Code are repealed:
	(1)  Section 531.0163; and
	(2)  Subchapter K, Chapter 531.
	(b)  Effective September 1, 2016, the following provisions
	of the Health and Safety Code are repealed:
	(1)  Section 1001.002;
	(2)  Section 1001.021;
	(3)  Section 1001.022;
	(4)  Section 1001.023;
	(5)  Section 1001.024;
	(6)  Section 1001.025;
	(7)  Section 1001.026;
	(8)  Section 1001.027;
	(9)  Section 1001.028;
	(10)  Section 1001.029;
	(11)  Section 1001.030;
	(12)  Section 1001.032;
	(13)  Subchapter C, Chapter 1001; and
	(14)  Section 1001.074.
	(c)  Effective September 1, 2016, the following provisions
	of the Human Resources Code are repealed:
	(1)  Section 40.002(a);
	(2)  Section 40.004;
	(3)  Section 40.0041;
	(4)  Section 40.021;
	(5)  Section 40.022;
	(6)  Section 40.0226;
	(7)  Section 40.024;
	(8)  Section 40.025;
	(9)  Section 40.026;
	(10)  Section 40.027;
	(11)  Section 40.032;
	(12)  Section 40.033;
	(13)  Section 117.002;
	(14)  Section 117.021;
	(15)  Section 117.022;
	(16)  Section 117.023;
	(17)  Section 117.024;
	(18)  Section 117.025;
	(19)  Section 117.026;
	(20)  Section 117.027;
	(21)  Section 117.028;
	(22)  Section 117.029;
	(23)  Section 117.030;
	(24)  Section 117.032;
	(25)  Section 117.051;
	(26)  Section 117.052;
	(27)  Section 117.053;
	(28)  Section 117.054;
	(29)  Section 117.055;
	(30)  Section 117.056;
	(31)  Section 117.072;
	(32)  Section 161.002;
	(33)  Subchapter B, Chapter 161;
	(34)  Section 161.051;
	(35)  Section 161.052;
	(36)  Section 161.053;
	(37)  Section 161.054;
	(38)  Section 161.055;
	(39)  Section 161.056; and
	(40)  Section 161.072.
	(d)  Notwithstanding Subsections (a), (b), and (c) of this
	section, the implementation of a provision repealed by this section
	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 531.00551 to read as follows:
	Sec. 531.00551.  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 deadline specified by
	Section 531.0204(a)(3).
	SECTION 2.03.  Section 531.006, Government Code, 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 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 the commission or a health and human services
	agency [the Texas Department of Mental Health and Mental
	Retardation], a local mental health or intellectual and
	developmental disability [mental retardation] authority, or a
	community center.
	SECTION 2.04.  Section 531.008(c), Government Code, is
	amended to read as follows:
	(c)  The executive commissioner shall establish the
	following divisions and offices within the commission:
	(1)  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)  the medical assistance program under Chapter
	32, Human Resources Code;
	(D)  the nutritional assistance programs 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)  the office of the ombudsman as provided by Section
	531.0171 [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)  a purchasing division as provided by Section
	531.017; and
	(5)  an internal audit division to conduct a program of
	internal auditing in accordance with [Government Code,] Chapter
	2102.
	SECTION 2.05.  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 2.06.  (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 2.07.  (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.
	(e)  Section 533.039, Health and Safety Code, is repealed.
	SECTION 2.08.  (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 2.09.  (a)  Section 531.02111(b), Government Code,
	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 Medicaid
	programs administered or operated by the agency; and
	(B)  an accounting of all funds related to the
	state Medicaid program received and disbursed by the agency during
	the period covered by the report, including:
	(i)  the amount of any federal medical
	assistance funds allocated to the agency for the support of each of
	the Medicaid programs operated or administered by the agency;
	(ii)  the amount of any funds appropriated
	by the legislature to the agency for each of those programs; and
	(iii)  the amount of medical assistance
	payments and related expenditures made by or in connection with
	each of those programs; and
	(2)  for each Medicaid program identified in the
	report:
	(A)  the amount and source of funds or other
	revenue received by or made available to the agency for the program;
	[and]
	(B)  the amount spent on each type of service or
	benefit provided by or under the program;
	(C)  the amount spent on program 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 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 2.10.  (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 the Medicaid
	program.
	(b)  In streamlining the Medicaid provider enrollment
	process, the commission shall establish a centralized Internet
	portal through which providers may enroll in the Medicaid program.
	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 2.11.  (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 the Medicaid program.
	(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
	the Medicaid program and comparing the performance of managed care
	organizations participating in the program.  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 2.12.  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 deadline specified by
	Section 531.0204(a)(3).
	SECTION 2.13.  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
	the Medicaid program 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 the Medicaid program; 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 the Medicaid program.
	SECTION 2.14.  (a)  Section 531.1031(a), Government Code, 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 the [state] Medicaid program; 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 the Medicaid program. 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 the Medicaid
	program; 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 the Medicaid
	program 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 the Medicaid program, 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 not subject to a
	criminal history record information check by a licensing authority
	described by Subsection (a).  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 the
	Medicaid program, taking into consideration:
	(1)  the extent to which the underlying conduct relates
	to the services provided under the program;
	(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 the Medicaid program.
	(d)  The office and the commission shall use the guidelines
	adopted under Subsection (c) to determine whether a provider about
	whom the office is notified as provided by Subsection (a)(2) may
	continue participating in the Medicaid program as a provider.
	(e)  The provider enrollment contractor, if applicable, and
	a managed care organization participating in the Medicaid program
	shall defer to the office regarding whether a person's criminal
	history record information precludes the person from participating
	in the Medicaid program 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 the
	Medicaid or Medicare program by the federal government is not
	participating as a provider in the program.
	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 the Medicaid program, 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
	the Medicaid program 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 2.15.  (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
	the Medicaid program.
	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 2.16.  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 2.17.  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 2.18.  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 2.19.  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 the Medicaid program.
	(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 2.20.  (a)  Section 533.015, Government Code, 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 the state
	Medicaid program 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
	the Medicaid program 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 the Medicaid program.
	(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 2.21.  Section 533.041(a), Government Code, 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 intellectual and developmental disabilities or
	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 program
	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 2.22.  (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 2.23.  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 2.24.  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, 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, 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 [mental retardation], state
	supported living centers [schools], and local intellectual and
	developmental disability [mental retardation] 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 [school] and an adult resident, an
	adult resident's legally authorized representative, or a local
	intellectual and developmental disability [mental retardation]
	authority.
	SECTION 3.06.  The heading to Section 531.0273, Government
	Code, is amended to read as follows:
	Sec. 531.0273.  INFORMATION RESOURCES PLANNING AND
	MANAGEMENT [; ADVISORY COMMITTEE].
	SECTION 3.07.  Section 531.051(c), Government Code, is
	amended to read as follows:
	(c)  In adopting rules for the consumer direction models, the
	executive commissioner [commission] 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 3.08.  Sections 531.057(b) and (c), Government Code,
	are amended to read as follows:
	(b)  The executive commissioner shall [coordinate with the
	advisory committee established under Section 531.0571 to] develop a
	volunteer advocate program for the elderly receiving services from
	or under the direction of the commission or a health and human
	services agency.
	(c)  In developing the program, the executive commissioner
	[and the advisory committee] shall adhere to the following
	principles:
	(1)  the intent of the program is to evaluate, through
	operation of pilot projects, whether providing the services of a
	trained volunteer advocate selected by an elderly individual or the
	individual's designated caregiver is effective in achieving the
	following goals:
	(A)  extend the time the elderly individual can
	remain in an appropriate home setting;
	(B)  maximize the efficiency of services
	delivered to the elderly individual by focusing on services needed
	to sustain family caregiving;
	(C)  protect the elderly individual by providing a
	knowledgeable third party to review the quality of care and
	services delivered to the individual and the care options available
	to the individual and the individual's family; and
	(D)  facilitate communication between the elderly
	individual or the individual's designated caregiver and providers
	of health care and other services;
	(2)  a volunteer advocate curriculum must be
	established that incorporates best practices as determined and
	recognized by a professional organization recognized in the elder
	health care field;
	(3)  the use of pro bono assistance from qualified
	professionals must be maximized in developing the volunteer
	advocate curriculum and designing the program;
	(4)  trainers must be certified on the ability to
	deliver training;
	(5)  training shall be offered through multiple
	community-based organizations; and
	(6)  participation in the program is voluntary and must
	be initiated by the elderly individual or the individual's
	designated caregiver.
	SECTION 3.09.  Section 531.067, Government Code, is amended
	to read as follows:
	Sec. 531.067.  PROGRAM TO IMPROVE AND MONITOR CERTAIN
	OUTCOMES OF RECIPIENTS UNDER CHILD HEALTH PLAN AND MEDICAID
	PROGRAMS [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 the Medicaid program or the child health plan
	program, or both. The committee membership must include at least
	three representatives from each program.
	[(b)     The 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 the state Medicaid program, 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 the state child health plan or medical assistance program.
	The program may use financial, clinical, and other criteria based
	on pharmacy, medical services, and other claims data related to the
	child health plan or the state medical assistance program. [The
	commission must report to the committee on the fiscal impact,
	including any savings associated with the strategies utilized under
	this section.]
	SECTION 3.10.  (a)  Section 531.0691, Government Code, is
	redesignated as Section 531.0735, Government Code, and amended 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 the Medicaid program.
	(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 the Medicaid
	program; 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, 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 3.11.  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 3.12.  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 3.13.  Section 531.159(f), Government Code, is
	amended to read as follows:
	(f)  The executive commissioner [commission] 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 3.14.  Section 531.551(a), Government Code, is
	amended to read as follows:
	(a)  The executive commissioner shall adopt rules providing
	for:
	(1)  a standard definition of "uncompensated hospital
	care";
	(2)  a methodology to be used by hospitals in this state
	to compute the cost of that care that incorporates a [the] standard
	set of adjustments to a hospital's initial computation of the cost
	of uncompensated hospital care that account for all funding streams
	that:
	(A)  are not patient-specific; and
	(B)  are used to offset the hospital's initially
	computed amount of uncompensated care [described by Section
	531.552(g)(4)]; and
	(3)  procedures to be used by those hospitals to report
	the cost of that care to the commission and to analyze that cost.
	SECTION 3.15.  Section 531.907(a), Government Code, 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 under Section 531.905 as technology becomes available and
	interoperability capabilities improve.
	SECTION 3.16.  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 3.17.  Section 533.0025(a), Government Code, is
	amended to read as follows:
	(a)  In this section and Sections 533.00251, 533.002515, and
	[533.00252,] 533.00253, [and 533.00254,] "medical assistance" has
	the meaning assigned by Section 32.003, Human Resources Code.
	SECTION 3.18.  Section 533.00251(c), Government Code, 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 the medical assistance
	program 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 adopted 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
	the medical assistance program 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 3.19.  Section 533.00253(b), Government Code, 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 medical assistance benefits to children with
	disabilities.  The managed care program developed under this
	section must:
	(1)  provide medical assistance 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 medical assistance 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 3.20.  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 3.21.  Section 534.052, Government Code, 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
	intellectual and developmental disabilities in the manner and in
	the stages described in this chapter.
	SECTION 3.22.  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 3.23.  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 3.24.  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 3.25.  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 3.26.  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 3.27.  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 3.28.  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 3.29.  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 3.30.  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 3.31.  Section 536.003(a), Government Code, 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 and Medicaid
	programs 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 3.32.  Section 536.004(a), Government Code, 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 and Medicaid programs, 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
	or Medicaid program 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 3.33.  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 3.34.  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 3.35.  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 3.36.  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 3.37.  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 3.38.  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 3.39.  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 3.40.  Section 538.052(a), Government Code, 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 [the Department of
	Aging] and disability services [Disability Services];
	(4)  the commissioner of state health services [the
	Department of State Health Services];
	(5)  the commissioner of the Department of Family and
	Protective Services;
	(6)  the commissioner of assistive and rehabilitative
	services [the Department 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 3.41.  Sections 533.0335(c) and (d), Health and
	Safety Code, 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 3.42.  Section 533.03551(b), Health and Safety Code,
	is amended to read as follows:
	(b)  The Department of Aging and Disability Services, 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 3.43.  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 3.44.  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 listed in
	Subsection (c) is required to provide.
	SECTION 3.45.  Section 22.038(b), Human Resources Code, is
	amended to read as follows:
	(b)  The memorandum of understanding must:
	(1)  define the responsibilities of each agency in
	implementing the components of the pilot program; and
	(2)  provide for interagency coordination and
	integration with respect to appropriate components of the pilot
	program, including any components:
	(A)  that serve persons for whom each of the
	agencies otherwise provides services; or
	(B)  for which coordination and integration among
	the agencies will result in the more efficient accomplishment of
	the goals of the comprehensive, effectively working plan
	implemented under Section 531.0244, Government Code [; or
	[(C)     that are recommended by the interagency task
	force under Section 531.02441, Government Code, for coordination
	and integration].
	SECTION 3.46.  (a)  Section 32.022(b), Human Resources Code,
	is amended to read as follows:
	(b)  The executive commissioner [board] 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 3.47.  Section 32.0641(a), Human Resources Code, 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
	of the Health and Human Services Commission 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 3.48.  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 3.49.  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 3.50.  (a) The following provisions of the
	Government Code are repealed:
	(1)  Section 531.0217(j);
	(2)  Section 531.02172;
	(3)  Section 531.02173(c);
	(4)  Section 531.02441;
	(5)  Sections 531.0273(d), (e), (f), and (g);
	(6)  Section 531.052;
	(7)  Section 531.0571;
	(8)  Section 531.068;
	(9)  Sections 531.121(1), (5), and (6);
	(10)  Section 531.122;
	(11)  Section 531.123;
	(12)  Section 531.1235;
	(13)  Section 531.251;
	(14)  Section 531.552;
	(15)  Subchapters R and T, Chapter 531;
	(16)  Section 531.904;
	(17)  Section 533.00251(a)(1);
	(18)  Section 533.00252;
	(19)  Sections 533.00253(a)(1) and (f);
	(20)  Section 533.00254;
	(21)  Sections 533.00255(e) and (f);
	(22)  Section 533.00285;
	(23)  Subchapters B and C, Chapter 533;
	(24)  Section 534.001(1);
	(25)  Section 534.053;
	(26)  Section 535.053;
	(27)  Section 535.054;
	(28)  Section 535.055;
	(29)  Section 535.108;
	(30)  Section 536.001(1);
	(31)  Section 536.002; and
	(32)  Section 536.007(b).
	(b)  The following provisions of the Health and Safety Code
	are repealed:
	(1)  Subchapter C, Chapter 32;
	(2)  Section 62.151(e);
	(3)  Section 62.157(c), as added by Chapter 1255 (S.B.
	789), Acts of the 77th Legislature, Regular Session, 2001;
	(4)  Section 81.010;
	(5)  Section 92.011;
	(6)  Subchapter B, Chapter 92;
	(7)  Chapter 115;
	(8)  Section 241.187;
	(9)  Section 533.0335(a)(1);
	(10)  Section 1002.001(1);
	(11)  Section 1002.052;
	(12)  Section 1002.053;
	(13)  Section 1002.055;
	(14)  Section 1002.056;
	(15)  Section 1002.057;
	(16)  Section 1002.058; and
	(17)  Section 1002.059.
	(c)  The following provisions of the Human Resources Code are
	repealed:
	(1)  Section 22.035; and
	(2)  Section 32.022(e).
	SECTION 3.51.  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 advisory committee for information resources
	planning and management;
	(11)  the Intellectual and Developmental Disability
	System Redesign Advisory Committee;
	(12)  the Interagency Coordinating Council for HIV and
	Hepatitis;
	(13)  the interagency coordinating group for faith- and
	community-based initiatives;
	(14)  the interagency task force on ensuring
	appropriate care settings for persons with disabilities;
	(15)  the Medicaid and CHIP Quality-Based Payment
	Advisory Committee;
	(16)  each Medicaid managed care advisory committee
	appointed for a health care service region under Subchapter B,
	Chapter 533, Government Code;
	(17)  the Perinatal Advisory Council;
	(18)  the Public Assistance Health Benefit Review and
	Design Committee;
	(19)  the renewing our communities account advisory
	committee;
	(20)  the STAR + PLUS Nursing Facility Advisory
	Committee;
	(21)  the STAR + PLUS Quality Council;
	(22)  the STAR Kids Managed Care Advisory Committee;
	(23)  the state Medicaid managed care advisory
	committee;
	(24)  the task force on domestic violence;
	(25)  the Interagency Task Force for Children With
	Special Needs;
	(26)  the telemedicine and telehealth advisory
	committee;
	(27)  the board of directors of the Texas Institute of
	Health Care Quality and Efficiency;
	(28)  the Texas Nonprofit Council;
	(29)  the Texas System of Care Consortium;
	(30)  the Texas Traumatic Brain Injury Advisory
	Council;
	(31)  the volunteer advocate program advisory
	committee; and
	(32)  the work group on uncompensated hospital care.
	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 11.003(a), Health and Safety Code, is
	amended to read as follows:
	(a)  The Texas Board of Health and the Texas Department of
	Health were abolished by Section 1.26, Chapter 198 (H.B. 2292),
	Acts of the 78th Legislature, Regular Session, 2003.  The [, and
	the] powers and duties [of those entities] under this chapter of
	those entities' successor in function are [were] transferred under
	Subchapter A-1, Chapter 531, Government Code, to the Health and
	Human Services Commission [other agencies], which is [are] subject
	to Chapter 325, Government Code (Texas Sunset Act).  Unless the
	commission is [agencies to which those powers and duties are
	transferred are] continued in existence as provided by that
	chapter, this chapter expires on the date the commission is
	abolished under Section 531.004, Government Code [September 1,
	2015].
	SECTION 4.03.  Section 108.016, Health and Safety Code, is
	amended to read as follows:
	Sec. 108.016.  SUNSET REVIEW.  Unless 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 4.04.  Section 532.002, Health and Safety Code, is
	amended to read as follows:
	Sec. 532.002.  SUNSET PROVISION.  The Texas Department of
	Mental Health and Mental Retardation was abolished by Section 1.26,
	Chapter 198 (H.B. 2292), Acts of the 78th Legislature, Regular
	Session, 2003.  The [, and the] powers and duties [of that agency]
	under this chapter of that agency's successors in function are
	[were] transferred under Subchapter A-1, Chapter 531, Government
	Code, to the Health and Human Services Commission [other agencies],
	which is [are] subject to Chapter 325, Government Code (Texas
	Sunset Act).  Unless the commission is [agencies to which those
	powers and duties are transferred are] continued in existence as
	provided by that Act, this chapter expires on the date the
	commission is abolished under Section 531.004, Government Code
	[September 1, 2015].
	SECTION 4.05.  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 4.06.  Section 21.002, Human Resources Code, is
	amended to read as follows:
	Sec. 21.002.  SUNSET PROVISION.  The Texas Department of
	Human Services was abolished by Section 1.26, Chapter 198 (H.B.
	2292), Acts of the 78th Legislature, Regular Session, 2003.  The [,
	and the] powers and duties [of that agency] under this chapter of
	that agency's successors in function are [were] transferred under
	Subchapter A-1, Chapter 531, Government Code, to the Health and
	Human Services Commission [other agencies], which is [are] subject
	to Chapter 325, Government Code (Texas Sunset Act).  Unless the
	commission is [agencies to which those powers and duties are
	transferred are] continued in existence as provided by that
	chapter, this title expires on the date the commission is abolished
	under Section 531.004, Government Code [September 1, 2015, except
	that Chapter 40 expires as provided by Section 40.003].
	SECTION 4.07.  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 4.08.  Section 81.004, Human Resources Code, is
	amended to read as follows:
	Sec. 81.004.  SUNSET PROVISION.  The Texas Commission for
	the Deaf and Hard of Hearing was abolished by Section 1.26, Chapter
	198 (H.B. 2292), Acts of the 78th Legislature, Regular Session,
	2003.  The [, and the] powers and duties [of that agency] under this
	chapter of that agency's successor in function are [were]
	transferred under Subchapter A-1, Chapter 531, Government Code, to
	the Health and Human Services Commission [other agencies], which is
	[are] subject to Chapter 325, Government Code (Texas Sunset Act).
	Unless the commission is [agencies to which those powers and duties
	are transferred are] continued in existence as provided by that
	chapter, this chapter expires on the date the commission is
	abolished under Section 531.004, Government Code [September 1,
	2015].
	SECTION 4.09.  Section 91.001, Human Resources Code, is
	amended to read as follows:
	Sec. 91.001.  SUNSET PROVISION.  The Texas Commission for
	the Blind was abolished by Section 1.26, Chapter 198 (H.B. 2292),
	Acts of the 78th Legislature, Regular Session, 2003.  The [, and
	the] powers and duties [of that agency] under this chapter of that
	agency's successor in function are [were] transferred under
	Subchapter A-1, Chapter 531, Government Code, to the Health and
	Human Services Commission [other agencies], which is [are] subject
	to Chapter 325, Government Code (Texas Sunset Act).  Unless the
	commission is [agencies to which those powers and duties are
	transferred are] continued in existence as provided by that
	chapter, this chapter expires on the date the commission is
	abolished under Section 531.004, Government Code [effective
	September 1, 2015].
	SECTION 4.10.  Section 111.012, Human Resources Code, is
	amended to read as follows:
	Sec. 111.012.  SUNSET PROVISION.  The Texas Rehabilitation
	Commission was abolished by Section 1.26, Chapter 198 (H.B. 2292),
	Acts of the 78th Legislature, Regular Session, 2003.  The [, and
	the] powers and duties [of that agency] under this chapter of that
	agency's successor in function are [were] transferred under
	Subchapter A-1, Chapter 531, Government Code, to the Health and
	Human Services Commission [other agencies], which is [are] subject
	to Chapter 325, Government Code (Texas Sunset Act).  Unless the
	commission is [agencies to which those powers and duties are
	transferred are] continued in existence as provided by that
	chapter, this chapter expires on the date the commission is
	abolished under Section 531.004, Government Code [September 1,
	2015].
	SECTION 4.11.  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 4.12.  Section 161.003, Human Resources Code, is
	amended to read as follows:
	Sec. 161.003.  SUNSET PROVISION.  Unless the commission
	is [The Department of Aging and Disability 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].
	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.