HBA-DMD, NLM H.B. 1402 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1402
By: Gray
Human Services
7/30/1999
Enrolled




BACKGROUND AND PURPOSE 

The Texas Rehabilitation Commission (commission) is the state's primary
authority for the rehabilitation of people with disabilities, with an
emphasis on vocational rehabilitation to help persons with physical or
mental disabilities seek and maintain employment. In addition, the
commission operates related programs to provide assistance to disabled
persons in need of intensive support to obtain or maintain employment.   

The commission is also responsible for providing other programs which focus
on increasing the ability of persons with severe disabilities to live more
independently in their home or community, and for determining initial
eligibility for Social Security disability benefits. 

The commission is subject to the Texas Sunset Act and will be abolished on
September 1, 1999, unless continued in existence by the legislature.   

H.B. 1402 continues the existence of the commission by establishing a new
expiration date of September 1, 2011, and makes statutory modifications
recommended by the Sunset Advisory Commission. This bill clarifies the
powers and duties of the commission and provides for better guidance and
monitoring of the commission's vocational rehabilitation counselors. In
addition, this bill requires the commission to target extended
rehabilitation services to those individuals who are not eligible to
receive similar services from the Texas Department of Mental Health and
Mental Retardation or another agency.  

H.B. 1402 also requires the commission to develop and implement agency-wide
procurement procedures to ensure compliance with state law governing
best-value procurement practice; and develops a rate-setting methodology
tying rates to established rates for medical services and health care
services. This bill requires the commission to meet health care industry
standards in the approval of medical services for clients and to conduct an
analysis of the risk associated with funding medical procedures and
maintain a risk management plan. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the board of the Texas Rehabilitation
Commission in SECTION 7 (Section 111.0161, Human Resources Code), SECTION 9
(Section 111.018, Human Resources Code), SECTION 20 (Section 111.0552,
Human Resources Code), SECTION 22 (Section 111.0581, Human Resources Code),
and SECTION 23 (Sections 111.070 and 111.071, Human Resources Code) of this
bill.   

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 111.002, Human Resources Code, by amending
Subdivision (7) and by adding Subdivision (8), as follows: 

(7) Redefines "extended rehabilitation services program" which provides for
rehabilitation services to an individual with a significant, rather than
severe, disability.  

(8) Defines "board" as the board of the Texas Rehabilitation Commission.
 
SECTION 2. Amends Section 111.012, Human Resources Code, to establish that
the Texas Rehabilitation Commission (commission) is subject to the Texas
Sunset Act and changes the expiration date of this chapter to September 1,
2011, rather than September 1, 1999. 

SECTION 3.  Amends Section 111.013(b), Human Resources Code, to update
standard Sunset language by replacing the word "handicap" with
"disability." 

SECTION 4.  Amends Section 111.0131, Human Resources Code, to update
standard Sunset language specifying the grounds for removal of a board
member and to require notification of the board's presiding officer, the
governor, and the attorney general if knowledge that a potential ground for
removal exists.  Makes conforming and nonsubstantive changes.   

SECTION 5.  Amends Subchapter B, Chapter 111, Human Resources Code, by
adding Section 111.0132, as follows: 

Sec. 111.0132.  TRAINING OF BOARD MEMBERS.  Requires the members of the
board to complete training before assuming their duties.  Provides that the
training program must provide the person with information regarding the
creation of the commission and the board, programs operated by the
commission, and the role and functions of the commission, and other
statutory requirements and procedures.  Provides that the person appointed
to the board is entitled to reimbursement for travel expenses incurred in
attending the training program. 

SECTION 6.  Amends Section 111.016, Human Resources Code, as follows:

Sec. 111.016. New title: REHABILITATION COUNCIL OF TEXAS. Provides that the
Rehabilitation Council of Texas is created in accordance with the federal
Rehabilitation Act Amendments of 1998, Pub. L. 105-220. 

SECTION 7.  Amends Subchapter B, Chapter 111, Human Resources Code, by
adding Section 111.0161, as follows: 

Sec. 111.0161.  ADVISORY COMMITTEES REPORT TO BOARD. Requires each advisory
committee to report to and advise the board on its activities, and to work
with the commissioner, board, and staff to perform its duties.  Requires
the board to adopt rules to implement this section. 

SECTION 8.  Amends Section 111.017, Human Resources Code, to clarify that
the commissioner is appointed by the board and serves at the pleasure of
the board, and that the commissioner is the executive head of the agency.
Deletes existing languages regarding the responsibility of the commissioner
to serve as secretary to the board, as well as the chief administrative
officer of the agency.  Makes nonsubstantive changes. 

SECTION 9.  Amends Section 111.018, Human Resources Code, as follows:

Sec. 111.018.  ADMINISTRATIVE REGULATIONS AND POLICIES. (a)  Requires the
board to adopt policies and rules to carry out the purposes of this chapter
and to supervise the commissioner's administration of this chapter.
Clarifies that the commissioner implements policies, rather than makes
regulations. Updates standard Sunset language requiring the board to
clearly separate its policymaking responsibilities from the management
responsibilities of the commissioner and staff of the commission.
Authorizes the board to delegate to the commissioner or his designee any
power or duty imposed on the board except the power to adopt rules.
Provides that a delegation of the board's authority must be adopted by the
board in a public meeting. Updates standard Sunset language to require the
commissioner or commissioner's designee to implement an equal employment
opportunity policy that is updated annually, reviewed by the Commission on
Human Rights, and filed with the governor's office.  Deletes existing
policy statement requirements.  Redesignates existing Subsections (b)-(f)
to Subsections (c)-(g).  Makes conforming and nonsubstantive changes. 
 
SECTION 10.  Amends Section 111.019, Human Resources Code, as follows:

Sec. 111.019.  PLANNING.  Requires the commission, rather than the
commissioner, to make long-range and intermediate plans for the program and
make decisions regarding the allocation of resources in carrying out the
plans. Makes nonsubstantive changes. 

SECTION 11.  Amends Section 111.021, Human Resources Code, by adding
Subsection (c), to require the commission to post on the Internet reports
and performance data required to be reported to the state or federal
government. Requires the commission to remove confidential information
contained in the report or performance data before posting the report or
performance data to the Internet. 

SECTION 12.  Amends Section 111.022, Human Resources Code, to require the
commission, rather than the commissioner, to make certification for
disbursement of funds. 

SECTION 13.  Amends Section 111.023, Human Resources Code, to require the
board, rather than the commissioner, to take other action as necessary or
appropriate to carry out the purposes of this chapter. 

SECTION 14.  Amends Section 111.024, Human Resources Code, to authorize the
commissioner to delegate responsibilities as necessary to any officer or
employee, with the approval of the board. Makes nonsubstantive changes. 

SECTION 15. Amends Section 111.025, Human Resources Code, to define "Texas
trade association." Updates standard Sunset language to prohibit board
members or their spouses and exempt employees or their spouses from being
an officer or employee of a related Texas trade association.  Prohibits
registered lobbyists from serving as a member of the board or from being
employed as the board or commission's general counsel. Deletes existing
text regarding the employment or board membership of an officer, employee,
or paid consultant of an organization that receives funds from the
commission for the provision of rehabilitative services. 

SECTION 16. Amends Section 111.026, Human Resources Code, to include
standard Sunset language to require the commission to maintain information
on written complaints filed with the commission.  Requires the commission
to notify the parties regarding the commission's policies and procedures
for complaint investigation. Requires the commission to notify the parties
regarding the status of the complaint quarterly until disposition. 

SECTION 17. Amends Section 111.052, Human Resources Code, to require the
commission, rather than the commissioner, to determine eligibility
standards for services under a vocational rehabilitation program, an
extended rehabilitation service program, or other program established to
provide rehabilitative services.  Makes a conforming change. 

SECTION 18. Amends  Subchapter C, Chapter 111, Human Resources Code, by
adding Section 111.0525, as follows: 

Sec. 111.0525.  COORDINATION WITH STATE AGENCIES. Requires the commission
to target extended rehabilitation services to those individuals who are not
eligible to receive similar services from the Texas Department of Mental
Health and Mental Retardation (TDMHMR) or another agency. Requires the
commission to enter into an agreement with TDMHMR to reduce duplication and
fragmentation of employment services by defining each agency's roles and
responsibilities.  Require the commission to establish a formal referral
process with the Texas Workforce Commission (TWC) for services by TWC or
local workforce development agencies. 

SECTION 19.  Amends Subchapter C, Chapter 111, Human Resources Code, by
adding Section 111.0551, as follows: 

Sec. 111.0551.  PROVISION OF MEDICAL SERVICES.  Requires the commission to
meet  health care industry standards in the approval of medical services
for clients, including need for second opinions; adopt a system of quality
control that includes medical consultation; where applicable, include an
assessment of whether the medical services will benefit the client's
ability to return to work; and conduct an analysis of the risk associated
with funding medical procedures and maintain a risk management plan. 

SECTION 20. Amends Subchapter C, Chapter 111, Human Resource Code, by
adding Section 111.0552, as follows: 

Sec. 111.0552.  RATES FOR MEDICAL SERVICES.  Requires the board to adopt
rules and standards governing the determination of rates the commission
will pay for medical services and health care services. Requires the board
to annually adopt a schedule of rates by comparing the proposed rate
schedule to other cost based rates, including Medicaid and Medicare rates,
and requires the board to document the reasons why the adopted rate is
necessary for any rate adopted that exceeds the Medicaid or Medicare rate.
Requires the board to hold a public hearing prior to adopting rates to
allow the public to present comments. 

SECTION 21. Amends Subchapter C, Chapter 111, Human Resources Code, by
adding Section 111.0553, as follows: 

Sec. 111.0553. PROCUREMENT METHODS. Requires the commission to develop and
implement agency-wide procurement procedures to ensure compliance with
state law governing best-value purchasing; document that a best-value
review of vendors has occurred; document the reasons for selecting a
vendor; negotiate price discounts with high-volume vendors; consolidate
purchases with other agencies; and provide public notification to potential
vendors of planned commission purchases. Requires nothing in this section
to be construed to limit the commission's ability to procure goods and
services from persons with disabilities.  

SECTION 22.  Amends Subchapter C, Chapter 111, Human Resources Code, by
adding Section 111.0581, as follows: 

Sec. 111.0581.  CRIMINAL HISTORY RECORD INFORMATION.  (a) Requires the
board by rule to establish criteria for denying a person's application for
employment based on criminal history background information obtained under
Section 411.117, Government Code.  
(b) Requires the commission to treat all criminal history record
information as privileged and confidential and for commission use only.  

SECTION 23.  Amends Chapter 111, Human Resources Code, by adding Subchapter
D, as follows: 

SUBCHAPTER D.  VOCATIONAL REHABILITATION SERVICES

Sec. 111.070. PROVISION OF SERVICES. Requires the board by rule to
establish and maintain guidelines, consistent with state and federal
regulations, for providing vocational rehabilitation services.  Provides
that these guidelines include a system of organization for the delivery of
services; eligibility requirements for services; requirements for the
rehabilitation planning process; the types of services that may be provided
to a client; and requirements for client participation in the costs of
vocational rehabilitation  services. Requires the board to assess the
effectiveness of the program annually. 

Sec. 111.071. TRAINING AND SUPERVISION OF COUNSELORS. Requires the
commission to provide specific guidance to counselors in selecting
vocational objectives; documenting a client's impediment to employment;
selecting rehabilitation services that are reasonable to achieve a client's
vocational objective; measuring client progress toward the objective; and
determining eligibility of employed and unemployed applicants for services
using criteria defined by a rule adopted by the board to document
substantial underemployment or risk of losing employment.  Requires the
board by rule to require  monitoring and oversight of counselor performance
and decision making.  

Sec. 111.072. CLIENT ORIENTATION MATERIALS.  Requires the commission to
develop and distribute at intake client orientation materials for the
vocational rehabilitation program that include information on the
commission's decision making criteria. 

Sec.  111.073.  TRANSITION PLANNING. Requires the commission to assess the
statewide need for services necessary to prepare students with disabilities
for a successful transition to employment; establish collaborative
relationships with each school district and with education service centers
to the maximum extent possible within available resources; and develop
strategies to assist vocational rehabilitation counselors in identifying
and reaching students in need of transition planning. 

SECTION 24.  Amends Section 302.021, Labor Code, by adding Subsection (d),
to require the division of workforce development of  TWC, in a manner
consistent with federal law, to promote and monitor services provided to
persons with disabilities, including those persons referred to the Texas
Rehabilitation Commission. 

SECTION 25.  Amends Section 411.117, Government Code, to entitle the
commission to obtain from the Department of Public Safety (department)
criminal history record information maintained by the department that
relates to a person who is an applicant for employment whose potential
duties include direct contact with clients of the commission.  

SECTION 26.  Effective date: September 1, 1999.

SECTION 27. Requires the board to adopt rules by January 1, 2000, as
necessary to implement the changes made by this Act.  Makes application of
Section 111.0132, Human Resources Code, as added by this Act, prospective. 

SECTION 28.  Emergency clause.