HBA-DMD H.B. 2955 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2955 By: Gray Human Services 4/27/1999 Introduced BACKGROUND AND PURPOSE H.B. 2955 sets forth provisions for the creation and transfer of certain programs to a long-term care agency on human services, aging, health, and rehabilitation, and for the transfer of certain functions from the Department on Aging to the Independent Aging Policy Council. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Board of Long-term Care Service in SECTION 1 (Sections 181.032, 181.064, 181.104, and 181.106, Health and Safety Code) and to the Independent Aging Policy Council in SECTION 3 (Sections 182.033 and 182.035, Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 2, Health and Safety Code, by adding Subtitle I, as follows: SUBTITLE I. LONG-TERM CARE CHAPTER 181. DEPARTMENT OF LONG-TERM CARE SERVICES SUBCHAPTER A. GENERAL PROVISIONS; ORGANIZATION OF DEPARTMENT Sec. 181.001. DEFINITIONS. Defines "board," "commissioner," "department," and "elderly person." Sec. 181.002. TEXAS DEPARTMENT OF LONG-TERM CARE. Sets forth that the Texas Department of Long-term Care Services (department) is an agency of this state. Sec. 181.003. SUNSET PROVISION. Subjects the department to Chapter 325, Government Code (Texas Sunset Act). Provides that unless continued in existence as provided by that chapter, the department is abolished and this subtitle expires September 1, 2007. Sec. 181.004. BOARD OF LONG-TERM CARE SERVICES. (a) Sets forth that the Texas Board of Long-term Care Services (board) is responsible for the adoption of policies and rules for the government of the department. (b) Sets forth the board's composition and sets qualifications for appointment to the board. (c) Sets forth standard Sunset language regarding public membership. Sets forth standard Sunset language regarding prohibitions against conflict of interest. (d) Sets forth board member (member) terms. (e) Sets forth standard Sunset language regarding designation of the presiding officer by the governor. (f) Sets forth standard Sunset language regarding equal opportunity. (g) Provides that a member is not entitled to compensation but is entitled to reimbursement of the travel expenses incurred by the member while conducting the business of the board, as provided in the General Appropriations Act. Sec. 181.005. COMMISSIONER. (a) Requires the board to appoint a commissioner of long-term care services with the approval of the Health and Human Services Commissioner and the governor. Sets forth that the commissioner is the executive and administrative officer of the department and is required to serve at the will of the board. (b) Sets forth standard Sunset language regarding equal opportunity. Sec. 181.006. ELIGIBILITY. Defines "Texas trade association." Sets forth standard Sunset language regarding prohibitions against conflicts of interest. Sec. 181.007. REMOVAL. Sets forth standard Sunset language regarding grounds for removal. Sec. 181.008. BOARD TRAINING. Sets forth standard Sunset language regarding board member training. Sec. 181.009. SEPARATION OF RESPONSIBILITIES. Requires the board to develop and implement policies that clearly separate the policymaking responsibilities of the board and the management responsibilities of the commissioner and staff of the department. Sec. 181.010. DIVISIONS OF DEPARTMENT. Authorizes the commissioner to establish divisions within the department as necessary for effective administration and for the discharge of the department's functions. Authorizes the commissioner to allocate and reallocate functions among the department's divisions. Sec. 181.011. PERSONNEL. Authorizes the commissioner to employ personnel necessary to administer the department's duties. Requires the commissioner or the commissioner's designated representative to develop an intra-agency career ladder program, one part of which must require the intra-agency posting of all non-entry-level positions concurrently with any public posting. Sec. 181.012. EQUAL EMPLOYMENT OPPORTUNITY. Sets forth standard Sunset language regarding equal opportunity. Sec. 181.013. STANDARDS OF CONDUCT. Sets forth standard Sunset language regarding board member and department employee standards of conduct. Sec. 181.014. MERIT SYSTEM. Authorizes the department to establish a merit system for its employees. Authorizes the merit system to be maintained in conjunction with other state agencies that are required by federal law to operate under a merit system. Sec. 181.015. PUBLIC INPUT INFORMATION AND COMPLAINTS. (a) Requires the department to develop and implement policies that provide the public a reasonable opportunity to appear before the board and to speak on any issue under the department's jurisdiction. (b) Requires the department to maintain a file on each written complaint filed with the department. Specifies the inclusions of the file. (c) Requires the department to provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the department's policies and procedures relating to complaint investigation and resolution. (d) Requires the department, at least quarterly until final disposition of the complaint, to notify the person filing the complaint and each person who is a subject of the complaint of the status of the investigation unless the notice would jeopardize an undercover investigation. Sec. 181.016. ADVISORY COMMITTEES. Authorizes the board to appoint, on the commissioner's recommendation, advisory committees as needed. SUBCHAPTER B. POWERS AND DUTIES Sec. 181.031. GENERAL POWERS AND DUTIES. Sets forth that the department has all the powers and duties necessary to administer this chapter. Requires the department to administer this state's long-term care services programs, and conduct a statewide needs assessment for long-term care services. Sec. 181.032. RULES. Requires the board to adopt rules necessary to carry out the department's powers and duties under this chapter. Sec. 181.033. CONTRACTS. Authorizes the department to enter into contracts as necessary to perform any of the department's powers or duties. Sec. 181.034. LONG-TERM CARE SERVICES. Provides that the department is responsible for long-term care regulation and rate setting, including licensing, certification, surveys, and investigations of abuse, neglect, or exploitation. Sec. 181.035. INVESTIGATIONS AND ENFORCEMENT. Provides that the department is responsible for the investigation of fraud in the provision of long-term care services and the enforcement of state law relating to the provision of those services. Sec. 181.036. SERVICES FOR ELDERLY PERSONS. Requires the department to develop, strengthen, extend, and expand services available for elderly persons to the extent funds are appropriated and available for that purpose. Sec. 181.037. AREA AGENCIES ON AGING. Requires the department to encourage, promote, and aid in the establishment and maintenance of area agencies on aging for the development of programs and services on a local level that improve the living conditions of the aged by enabling them to more fully enjoy and participate in family and community life. Provides that the department must receive approval from the Health and Human Services Commission before it may alter an area agency planning service area in effect on September 1, 1999. Sec. 181.038. TRUSTS FOR CERTAIN RECIPIENTS OF MEDICAL ASSISTANCE. Authorizes an area agency on aging to contract with one or more private attorneys to establish trusts described by 42 U.S.C. Section 1396p(d)(4)(B), as amended, for the benefit of recipients of medical assistance under Chapter 32, Human Resources Code, who, without the establishment of these trusts, would become ineligible for medical assistance. Requires the department to allocate available state funds to the area agencies on aging for use in contracting for the establishment of trusts under Subsection (a). Sec. 181.039. INFORMATION ON COMMUNITY SERVICES. Requires the department, if the department determines that a person is not eligible for a level of care in a nursing home, to inform the person that community services might be available under the community care for the aged and disabled program administered by the department. Requires the department to provide to the person a list of services available under the program and information on the services. SUBCHAPTER C. FINANCIAL PROVISIONS Sec. 181.061. ANNUAL REPORT. Requires the department to file annually with the governor and the presiding officer of each house of the legislature a report accounting for money received and disbursed by the department during the preceding fiscal year. Sec. 181.062. FINANCIAL AUDIT. Provides that the financial transactions of the department are subject to audit by the state auditor in accordance with Chapter 321, Government Code. Sec. 181.063. DONATIONS. Authorizes the department to accept a donation from any source to perform any of the department's powers or duties. Sec. 181.064. REVIEW OF ADMINISTRATIVE COSTS AND PROGRAMS. (a) Requires the board by rule to define "administrative costs" as used in this section. Requires the board, if a standard definition of administrative costs is required by law to be used by state agencies, to use that definition. (b) Requires the department, to determine the administrative costs incurred by an entity, including an area agency on aging and including an entity that spends money distributed by the department under Section 312.001, Labor Code, or Section 181.104, in engaging in a program that is funded in any part by money derived from the department, to request appropriate information from the entity. (c) Requires the board to establish the maximum amount of administrative costs that may be incurred by the entity in engaging in the program. Sec. 181.065. REPORT ON UNIT COSTS. Requires the department to file with the Legislative Budget Board and the Governor's Office of Budget and Planning a report that clearly identifies the unit cost of each service, other than services related to community service volunteering and subsidized employment services, provided by an area agency on aging. Provides that the report must be filed twice each year on or before the date specified by the Legislative Budget Board and must be in the form required by the Legislative Budget Board. SUBCHAPTER D. PROGRAMS Sec. 181.101. GENERAL. Sets forth that the department is responsible for administering the programs in this subchapter as well as any other programs designated for the department in other laws. Sec. 181.102. COOPERATION WITH FEDERAL AND STATE AGENCIES. (a) Sets forth that the department is the state agency designated to handle federal programs relating to the aged that require action within the state and that are not the specific responsibility of another state agency under federal or state law. (b) Provides that the department is not intended to supplant or to take over from the counties and municipalities of this state or from other state agencies or facilities any of the specific responsibilities that they hold. Requires the department to cooperate with federal and state agencies, counties, and municipalities and private agencies or facilities in this state to accomplish the purposes of this chapter. (c) Requires the department to cooperate with the Texas Department of Housing and Community Affairs to provide affordable housing for elderly individuals and for families in which an elderly individual is head of the household and to: (1) assess the need for housing for elderly individuals and for families in which an elderly individual is head of the household in different localities; (2) set standards relating to the design and construction of housing for elderly individuals; (3) provide planning assistance to builders; and (4) publicize the availability of the housing program to potential developers and residents. Sec. 181.103. WORK GROUP. (a) Defines "long-term care facilities" to include nursing facilities, personal care homes, group homes, and intermediate care facilities and other institutional care facilities for persons with mental retardation. (b) Provides that a work group is created to assist the department and the Texas Department of Mental Health and Mental Retardation (MHMR) in studying coordination of planning and services between the two agencies in providing long-term care services. (c) Specifies the composition of the work group. (d) Sets forth that a member of the work group serves at the will of the appointing agency. (e) Requires the commissioner and the commissioner of MHMR to jointly appoint a member of the work group to serve as presiding officer, and members of the work group are required to elect any other necessary officers. (f) Requires the work group to meet at the call of the presiding officer. (g) Provides that a member of the work group receives no additional compensation for serving on the work group. (h) Requires the work group to study and report on coordination of planning and services between the two agencies in providing long-term care services. Requires the work group, as part of its study and report on coordination, to additionally study and make recommendations on the development of consistent and standardized: (1) regulation of residential and community long-term care facilities; (2) rate-setting processes for long-term care providers and facilities; (3) contractor monitoring for long-term care providers and facilities; and (4) intake, assessment, referral, and coordinated case management procedures for Medicaid waiver programs. (i) Requires the work group to report annually to the commissioner and the commissioner of MHMR. Provides that the report must include any recommendations on subjects the work group has studied. (j) Provides that the work group is not subject to Chapter 2110, Government Code. Sec. 181.104. VOLUNTARY COMMUNITY SERVICES PROGRAMS. (a) Requires the department to disburse state funds appropriated for that purpose to local public agencies or private, nonprofit corporations that operate programs to recruit retired persons to perform voluntary community services or that operate Foster Grandparent Programs. (b) Prohibits a public agency or private, nonprofit corporation from receiving state money under this section if it is not able to qualify for federal matching money for the same purpose. (c) Requires the board by rule to establish guidelines or formulas to determine the proportion of state money distributed to each public agency or private, nonprofit corporation. Authorizes the board by rule to establish additional qualifications to receive the state money. (d) Prohibits state funds disbursed under this section from being used to pay compensation to volunteer workers, except for participants in the Foster Grandparent Programs, or for purposes other than financing the operation or administration of the volunteer programs, but state funds are authorized to be used to defray expenses incurred by volunteers in the performance of volunteer work. Authorizes the board, by rule, to further limit the purposes for which the state money may be spent. Sec. 181.105. PUBLIC INFORMATION ON COST OF LONG-TERM CARE. Requires the department to develop programs to provide certain information to the public. Sec. 181.106. PROGRAMS FOR DEAF-BLIND MULTIHANDICAPPED INDIVIDUALS AND THEIR PARENTS. (a) Requires the department to establish programs to serve deaf-blind multihandicapped individuals by helping them attain self-sufficiency and independent living. (b) Requires the department to establish a program of parental counseling for the parents of deaf-blind multihandicapped individuals. Authorizes the counseling program to be provided on an individual or group basis and must include programs, activities, and services necessary to foster greater understanding and to improve relationships among professionals, parents, and deaf-blind multihandicapped individuals. (c) Requires the department to establish a summer outdoor training program for deaf-blind multihandicapped individuals. Provides that the outdoor training program must be designed to help meet the unique needs of deaf-blind multihandicapped individuals for the purpose of broadening their educational experiences and improving their ability to function more independently. (d) Requires the department to adopt rules for implementing and administering the programs. (e) Authorizes the department to contract for services or goods with private or public entities for purposes of this section. (f) Requires the department, from information collected from the programs, to determine the need for related future services and the most efficient and effective method of delivering the future services. SECTION 2. Sets forth that effective September 1, 2000, Subchapter C, Chapter 101, Human Resources Code, is transferred to Chapter 181, Health and Safety Code, as added by this Act, is redesignated as Subchapter E, Chapter 181, Health and Safety Code, and is amended as follows: SUBCHAPTER E, rather than C. OPTIONS FOR INDEPENDENT LIVING Sec. 181.201. DEFINITIONS. Redesignated from Section 101.041, Human Resources Code. Sec. 181.202. OPTIONS FOR INDEPENDENT LIVING. Redesignated from Section 101.042, Human Resources Code. Sec. 181.203. PERSONS TO BE SERVED. (a) Deletes the requirement of the Texas Department on Aging to maintain a memorandum of agreement with the Texas Department of Human Services. Redesignates existing Subsection (c) to Subsection (b). Redesignated from Section 101.043, Human Resources Code. Sec. 181.204. PROVISION OF SERVICES. Redesignated from Section 101.044, Human Resources Code. Sec. 181.205. CASE MANAGEMENT UNITS. Redesignated from Section 101.045, Human Resources Code. Sec. 181.206. ADMINISTRATION OF PROGRAM. Redesignated from Section 101.046, Human Resources Code. Sec. 181.207. ADVISORY COMMITTEE. Redesignated from Section 101.047, Human Resources Code. Sec. 181.208. FEES. Redesignated from existing Section 101.048, Human Resources Code. Requires an elderly person whose income exceeds the basic income and resources requirements for eligibility for the department's community care for aged and disabled program, rather than disabled program of the Department of Human Services, but whose income is less than 200 percent of that level to pay a portion of the cost of support services provided to the person by a case management unit according to the fee scale. Makes a conforming change. Sec. 181.209. ANNUAL REPORT. Redesignated from existing Section 101.049, Human Resources Code. Provides that an annual report must include information concerning the manner in which the department has provided services under the program to elderly persons entitled to priority under Section 181.203(a), rather than 101.043(a), Health and Safety Code. Deletes text authorizing the report to be combined with the report required by Section 101.008, Human Resources Code. SECTION 3. Amends Title 2I, Health and Safety Code, as added by this Act, by adding Chapter 182, as follows: CHAPTER 182. INDEPENDENT AGING POLICY COUNCIL SUBCHAPTER A. GENERAL PROVISIONS Sec. 182.001. DEFINITIONS. Defines "board," "commissioner," "council," "department," and "elderly person." Sec. 182.002. SUNSET PROVISION. Provides that the Independent Aging Policy Council (council) is abolished and this chapter expires on September 1, 2007, unless continued in existence as provided by Chapter 325, Government Code. Sec. 182.003. INDEPENDENT AGING POLICY COUNCIL. (a) Provides that the council is created to provide expertise and advice to the department on aging, long-term care, and community policy issues relating to the needs of elderly persons and to recommend actions by the department to meet the needs of the state's elderly population. (b) Provides that the council is administratively attached to the department. Requires the department to provide the facilities for the council, but the council is independent of the department or board's direction. (c) Provides that the council is composed of six members appointed by the governor with the consent of the senate. Requires a person, to qualify for appointment to the council, to have demonstrated an interest in a knowledge of the special needs of elderly persons and on aging issues. Sets forth the persons required to be included as members. (d) Prohibits a person from being a public member of the council if the person or the person's spouse meet certain conditions. (e) Provides that members of the council serve for staggered terms of six years with the terms of one-third of the members expiring on February 1 of each odd-numbered year. (f) Requires appointments to the council to be made without regard to race, color, disability, sex, religion, age, or national origin of the appointees. (g) Provides that a member is not entitled to compensation but is entitled to reimbursement of the travel expenses incurred by the member while conducting the business of the council, as provided in the General Appropriations Act. Sec. 182.004. PRESIDING OFFICER OF THE COUNCIL. Requires the governor to designate a presiding officer from among the council members. Provides that a member holds the position of presiding officer at the will of the governor. Sec. 182.005. RESTRICTIONS ON COUNCIL MEMBERSHIP AND EMPLOYMENT. Defines "Texas trade association" in this section. Sets forth standard Sunset language regarding prohibitions against conflicts of interest. Sec. 182.006. REMOVAL. Sets forth standard Sunset language regarding removal. Sec. 182.007. STANDARDS OF CONDUCT. Sets forth standard Sunset language regarding standards of conduct. Sec. 182.008. COUNCIL TRAINING. Sets forth standard Sunset language regarding council training. Entitles a council appointee to reimbursement for travel expenses incurred in attending the training program. Sec. 182.009. EXECUTIVE DIRECTOR; PERSONNEL. Sets forth standard Sunset language regarding the executive director and personnel. Sec. 182.010. SEPARATION OF RESPONSIBILITIES. Sets forth standard Sunset language regarding separation of responsibilities. Sec. 182.011. PUBLIC INPUT INFORMATION AND COMPLAINTS. Sets forth standard Sunset language regarding public input information and complaints. Sec. 182.012. CITIZENS ADVISORY COUNCIL. Provides that the Citizens Advisory Council (CAC) is composed of one member appointed by the council from each designated area agency on aging. Provides that each CAC member must also be a member of the local advisory council advising the area agency. Provides that CAC council members are entitled to the compensatory per diem authorized by the General Appropriations Act for each day spent engaged in the performance of their duties as directed by the council and are entitled to the same travel allowance authorized by the General Appropriations Act for state employees. Requires the council to appoint one member of CAC to service as the presiding officer. Requires CAC to work under the council's direction. Requires CAC to inform policymakers and administrators at the state level of local needs and concerns relating to the aged. Requires CAC to meet at least quarterly and authorizes it to hold other meetings called by the presiding officer. Provides that CAC members serve for staggered terms of three years with the terms of one-third of the membership expiring on January 31 of each year. SUBCHAPTER B. POWERS AND DUTIES Sec. 182.031. GENERAL POWERS AND DUTIES. Provides that the council has all the powers and duties necessary to administer this chapter. Sets forth the required activities of the council. Requires the council to work with area agencies on aging as necessary to carry out the purposes of this chapter. Sec. 182.032. COOPERATION WITH FEDERAL AND STATE AGENCIES. Requires the council to cooperate with federal and state agencies and other organizations in conducting studies and surveys on the special problems of the aged in matters such as mental and physical health, housing, family relationships, employment, income, vocational rehabilitation, recreation, and education. Requires the council to make appropriate reports and recommendations to the governor and to the department and other state or federal agencies. Sec. 182.033. RULES. Authorizes the council to adopt rules necessary to carry out the council's powers and duties under this chapter. Sec. 182.034. OLDER AMERICANS ACT: STATE UNIT AND PLAN; MONEY. Provides that the council is the state unit on aging under the federal Older Americans Act of 1965 (42 U.S.C. 3001 et seq.) and its subsequent amendments. Requires the council to develop this state's plan on aging as required by the federal Older Americans Act. Requires the department to provide information to the council and otherwise assist as requested by the council in developing this plan. Requires the council to determine priorities for money received under the Older Americans Act. Requires the council to transfer money for services to the department within guidelines established by the General Appropriations Act. Sec. 182.035. FUNDING TO AREA AGENCIES ON AGING. Requires the council, by rule, to adopt a formula that meets the intent of the Older Americans Act, as amended, for allocating among area agencies on aging funds that the department receives under Title III, federal Older Americans Act (42 U.S.C. Section 3021 et seq.) and its subsequent amendments. Provides that the formula must provide for allocation of the funds among the area agencies according to the most recent population estimates available from the U.S. Bureau of the Census or the Texas Department of Health. Requires the council to update the formula biennially and to include the formula and the population estimates in each state plan on aging. Requires, unless otherwise provided for by council rules regarding the carryover of unexpended Title III funds, at the end of a fiscal year, unexpended Title III funds of an area agency on aging's allocations for that fiscal year to be deducted from the allocation for the new fiscal year and that same amount of new fiscal year funds shall be reallocated. Requires the council, by rule, to adopt a reallocation formula that includes performance as a criterion, in addition to other criteria adopted by the department. Requires the funds that the council receives under Title III, federal Older Americans Act, on or after September 1, 1999, to be allocated and reallocated to area agencies on aging under the formulas adopted under this section. SECTION 4. Amends Section 531.001(4), Government Code, to redefine "health and human services agencies." SECTION 5. Transfers, effective September 1, 2000, Chapter 101D, Human Resources Code, to Chapter 40, Human Resources Code, and redesignates and amends Chapter 40, Human Resources Code, a follows: SUBCHAPTER D. OFFICE OF LONG-TERM CARE OMBUDSMAN Sec. 40.071. DEFINITIONS. Redesignated from existing Section 101.051. Redefines "long-term care facility." Sec. 40.072. ESTABLISHMENT OF OFFICE. Redesignated from existing Section 101.052. Sec. 40.073. ROLE OF OFFICE. Redesignated from existing Section 101.053. Provides that this subchapter does not affect the authority of the Texas Department of Long-term Care Services, rather than the Texas Department of Health and the Texas Department of Human Services, to regulate long-term care facilities. Sec. 40.074. POWERS AND DUTIES. Redesignated from existing Section 101.054. Sec. 40.075. LEGAL ASSISTANCE. Redesignated from existing Section 101.055. Sec. 40.076. OMBUDSMEN. Redesignated from existing Section 101.056. Sec. 40.077. INVESTIGATIONS. Redesignated from existing Section 101.057. Sec. 40.078. ACCESS TO RECORDS AND CONFIDENTIALITY. Redesignated from existing Section 101.058. Requires the state ombudsman or the ombudsman's designee, specifically identified by the executive director, to have access to patient care records of elderly residents of long-term care facilities. Deletes text regarding defining elderly residents of long-term care facilities. Makes conforming and nonsubstantive changes. Sec. 40.079. REPORTING SYSTEM. Redesignated from existing Section 101.059. Makes conforming changes. Sec. 40.080. ANALYSIS OF LAWS. Redesignated from existing Section 101.060. Sec. 40.081. PUBLIC INFORMATION. Redesignated from existing Section 101.061. Sec. 40.082. ANNUAL REPORT. Redesignated from existing Section 101.062. Authorizes the annual report to be combined with the report required by Section 40.0565, rather than Section 101.008. Sec. 40.083. LIMITATION OF LIABILITY. Redesignated from existing Section 101.063. Sec. 40.084. CRIMINAL PENALTY. Redesignated from existing Section 101.064. SECTION 6. Redesignates, effective September 1, 2000, Section 101.023, Human Resources Code, as Chapter 312, Labor Code, as follows: CHAPTER 312. COMMUNITY SENIOR CITIZENS EMPLOYMENT Sec. 312.001. COMMUNITY SENIOR CITIZENS EMPLOYMENT PROGRAMS. Redesignated from existing Section 101.023, Human Resources Code. Authorizes the commission, rather than Texas Workforce Commission, to establish and administer a community program for persons 55 years or older who lack suitable employment and have family incomes under federal poverty guidelines. Makes conforming changes. SECTION 7. Repealers: effective September 1, 2000: (1) Section 12.015, Health and Safety Code (Information on Community Services). (2) Chapter 101, Human Resources Code (Texas Department on Aging). (3) Chapter 113, Human Resources Code (Programs for Deaf-Blind Multihandicapped Individuals and Their Parents). SECTION 8. (a) Requires the department to study the feasibility of a subacute care pilot project. Requires the Health and Human Services Commission (HHSC) and the Texas Department of Health (TDH) to cooperate with and assist the department in this study. Sets forth the department's required considerations in conducting the study. (b) Requires the department, not later than September 1, 2000, to submit a report on the feasibility of a subacute care pilot project to HHSC. (c) Provides that this section expires on September 1, 2001. SECTION 9. (a) Requires the commissioners of the department and MHMR to appoint the members of the work group created by Section 181.103, Health and Safety Code, as added by this Act, not later than December 1, 1999. (b) Requires the work group to report on the study and recommendations required by Section 181.103(h), Health and Safety Code, as added by this Act, to the commissioners of the department and MHMR not later than September 1, 2000. SECTION 10. Requires the governor, not later than September 30, 1999, to appoint the initial members of the board created by Section 181.004, Health and Safety Code, as added by this article. Requires the governor to designate two members for a term expiring on February 1, 2001, two members for a term expiring on February 1, 2003, and two members for a term expiring on February 1, 2005. SECTION 11. Requires the governor, not later than September 30, 1999, to appoint the initial members of the Independent Aging Policy Council created by Section 182.003, Health and Safety Code, as added by this Act. Requires the governor to designate two members for a term expiring on February 1, 2001, two members for a term expiring on February 1, 2003, and two members for a term expiring on February 1, 2005. SECTION 12. Requires the state auditor, not later than December 1, 2000, to evaluate and report to the governor, the lieutenant governor, the speaker of the house of representatives, and HHSC on its recommendations for improvements in the management and fiscal control systems of the department. SECTION 13. (a) Sets forth the topics HHSC is required to study. (b) Requires HHSC, based on the study in Subsection (a) of this section, and not later than December 1, 1999, to report its recommendations to the governor, the lieutenant governor, the speaker of the house of representatives, and the Health and Human Services Legislative Oversight Committee. (c) Requires, after review of the report required by Subsection (b) of this section by the governor, the lieutenant governor, the speaker of the house of representatives, the Health and Human Services Legislative Oversight Committee, and the department, to the extent practicable, to implement programs transferred to it under this Act in a manner consistent with the commission's report. (d) Requires, consistent with the report required by Subsection (b) of this section, the commissioner, for each program, to determine the date on which a program administered by another state agency must be transferred to the department or the Department of Protective and Regulatory Services, as required by this Act. Prohibits the date on which a program must be transferred from being later than September 1, 2000. (e) Requires each state agency affected by this Act to cooperate with HHSC and the department in formulating and implementing the study required by Subsection (a) of this section, the report required by Subsection (b) of this section, and the transition under Subsection (d) of this section. Requires this cooperation to include assistance in program transition plans, the creation of an interim operating budget, and the temporary assignment of staff as necessary to ensure an orderly transition. SECTION 14. (a) Provides that on September 1, 2000, or at an earlier date as determined by HHSC under Section 13(d) of this Act: (1) all powers, duties, functions, and activities relating to certain programs assigned to or performed by the Texas Department of Human Services (TDHS) immediately before that date, are transferred to the department; (2) all employees of TDHS who primarily perform duties related to a program listed under Subdivision (1) of this subsection become employees of the department; (3) a rule or form adopted by TDHS that relates to a program listed in Subdivision (1) of this subsection is a rule or form of the department and remains in effect until altered by the agency; (4) a reference in law or an administrative rule to TDHS that relates to a program listed in Subdivision (1) of this subsection means the department; (5) a license, permit, or certification in effect that was issued by TDHS for a program listed in Subdivision (1) of this subsection is continued in effect as a license, permit, or certification of the department; and (6) a complaint, investigation, or other proceeding pending before TDHS that is related to a program listed in Subdivision (1) of this subsection is transferred without change in status to the department. (b) Provides that on the 30th day after the date specified in Subsection (a) of this section: (1) all funds, obligations, and contracts of TDHS related to a program listed in Subsection (a) of this section are transferred to the department; and (2) all property and records in the custody of TDHS related to a program listed in Subsection (a) of this section and all funds appropriated by the legislature for a program listed in Subsection (a) of this section are transferred to the department. SECTION 15. (a) Provides that on September 1, 2000, or an earlier date as determined by HHSC under Subsection 13(d) of this Act: (1) all powers, duties, functions, and activities relating to certain programs assigned or performed by the TDH immediately before that date are transferred to the department; (2) all employees of the TDH who primarily perform duties related to a program listed in Subdivision (1) of this subsection become employees of the department; (3) a rule or form adopted by TDH that relates to a program listed in Subdivision (1) of this subsection is a rule or form of the department and remains in effect until altered by the agency; (4) a reference in law or an administrative rule to TDH that relates to a program listed in Subdivision (1) of this subsection means the department; (5) a license, permit, or certification in effect that was issued by TDH for a program listed in Subdivision (1) of this subsection is continued in effect as a license, permit, or certification of the department; and (6) a complaint, investigation, or other proceeding pending before TDH that is related to a program listed in Subdivision (1) of this subsection is transferred without change in status to the department. (b) Provides that on the 30th day after the date specified in Subsection (a) of this section: (1) all funds, obligations, and contracts of TDH related to a program listed in Subsection (a) of this section are transferred to the department; and (2) all property and records in the custody of TDH related to a program listed in Subsection (a) of this section and all funds appropriated by the legislature for a program listed in Subsection (a) of this section are transferred to the department. SECTION 16. (a) Provides that on September 1, 2000, or an earlier date as determined by HHSC under Subsection 13(d) of this Act: (1) all powers, duties, functions, and activities relating to certain programs assigned or performed by the Texas Rehabilitation Commission (TRC) immediately before that date are transferred to the department; (2) all employees of the TRC who primarily perform duties related to a program listed in Subdivision (1) of this subsection become employees of the department; (3) a rule or form adopted by TRC that relates to a program listed in Subdivision (1) of this subsection is a rule or form of the department and remains in effect until altered by the agency; (4) a reference in law or an administrative rule to TRC that relates to a program listed in Subdivision (1) of this subsection means the department; (5) a license, permit, or certification in effect that was issued by TRC for a program listed in Subdivision (1) of this subsection is continued in effect as a license, permit, or certification of the department; and (6) a complaint, investigation, or other proceeding pending before TRC that is related to a program listed in Subdivision (1) of this subsection is transferred without change in status to the department. (b) Provides that on the 30th day after the date specified in Subsection (a) of this section: (1) all funds, obligations, and contracts of TRC related to a program listed in Subsection (a) of this section are transferred to the department; and (2) all property and records in the custody of TRC related to a program listed in Subsection (a) of this section and all funds appropriated by the legislature for a program listed in Subsection (a) of this section are transferred to the department. SECTION 17. (a) Provides that on September 1, 2000, or an earlier date as determined by HHSC under Subsection 13(d) of this Act: (1) all powers, duties, functions, and activities relating to the Office of Long-term Care Ombudsman administered by the Texas Department on Aging (TDoA) immediately before that date are transferred to the Texas Department of Protective and Regulatory Services (DPRS); (2) all employees of TDoA who primarily perform duties related to a program listed in Subdivision (1) of this subsection become employees of DPRS; (3) a rule or form adopted by TDoA that relates to a program listed in Subdivision (1) of this subsection is a rule or form of DPRS and remains in effect until altered by the agency; (4) a reference in law or an administrative rule to TDoA that relates to the ombudsman program described by Subdivision (1) of this subsection means the DPRS; (5) a license, permit, or certification in effect that was issued by TDoA that relates to the ombudsman program described by Subdivision (1) of this subsection is continued in effect as a license, permit, or certification of DPRS; and (6) a complaint, investigation, or other proceeding pending before TDoA that relates to ombudsman program described by Subdivision (1) of this subsection is transferred without change in status to the DPRS. (b) Provides that on the 30th day after the date specified in Subsection (a) of this section: (1) all funds, obligations, and contracts of TDoA related to the ombudsman program described by Subsection (a) of this section are transferred to DPRS; and (2) all property and records in the custody of TDoA related to the ombudsman program described by Subsection (a) of this section and all funds appropriated by the legislature for a program listed in Subsection (a) of this section are transferred to the DPRS. SECTION 18. (a) Provides that this section takes effect on September 1, 2000, or an earlier date as determined by HHSC under SECTION 13(d) of this Act. (b) Provides that the TDoA is abolished. (c) Provides that except as provided by SECTION 17 of this Act: (1) all powers, duties, functions, and activities performed by TDoA immediately before that date are transferred to the department; (2) all employees of TDoA become employees of the department; (3) a rule or form adopted by TDoA is a rule or form of department and remains in effect until altered by the agency; (4) a reference in law or an administrative rule to TDoA means the department; (5) a license, permit, or certification in effect that was issued by TDoA is continued in effect as a license, permit, or certification of the department; and (6) a complaint, investigation, or other proceeding pending before TDoA is transferred without change in status to the department. (d) Provides that, except as provided by SECTION 17 of this Act, on the 30th day after the effective date of this section: (1) all funds, obligations, and contracts of TDoA related to the department; and (2) all property and records in the custody of TDoA and all funds appropriated by the legislature for the TDoA are transferred to the department. SECTION 19. Requires the department or any other state agency to request a waiver or authorization and authorizes it to delay implementing that provision until the waiver or authorization is granted, if, before implementing any provision of this Act, the department or another state agency determines that a waiver or authorization from a federal agency is necessary for implementation. SECTION 20. Effective date, except as otherwise provided in this Act: September 1, 1999. SECTION 21.Emergency clause.