By: Nelson, et al.	S.B. No. 200
	(Price, Raymond, Dutton, Burkett, Gonzales)

	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.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1.  CONSOLIDATION OF HEALTH AND HUMAN SERVICES SYSTEM
	SECTION 1.01.  (a)  Chapter 531, Government Code, is amended
	by adding Subchapter A-1 to read as follows:
	SUBCHAPTER A-1.  CONSOLIDATION OF HEALTH AND HUMAN SERVICES SYSTEM
	Sec. 531.02001.  CONSOLIDATION OF HEALTH AND HUMAN SERVICES
	SYSTEM GENERALLY. In accordance with this subchapter, the
	functions of the health and human services system described under
	Sections 531.0201, 531.02011, and 531.02012 are consolidated
	through a phased transfer of those functions under which:
	(1)  the initial transfers required under Section
	531.0201 occur:
	(A)  on or after the date on which the executive
	commissioner submits the transition plan to the required persons
	under Section 531.0204(e); and
	(B)  not later than September 1, 2016;
	(2)  the final transfers required under Section
	531.02011 occur:
	(A)  on or after September 1, 2016; and
	(B)  not later than September 1, 2017; and
	(3)  transfers of administrative support services
	functions occur in accordance with Section 531.02012.
	Sec. 531.02002.  MEANING OF FUNCTION IN RELATION TO
	TRANSFERS.  For purposes of the transfers mandated by this
	subchapter, "function" includes a power, duty, program, or activity
	of a state agency or entity.
	Sec. 531.0201.  PHASE ONE:  INITIAL TRANSFERS. (a)  On the
	dates specified in the transition plan required under Section
	531.0204, the following functions are transferred to the commission
	as provided by this subchapter:
	(1)  all functions, including any remaining
	administrative support services functions, of each state agency and
	entity subject to abolition under Section 531.0202(a); and
	(2)  except as provided by Section 531.02013, all
	client services of the health and human services system, including
	client services functions performed by the following:
	(A)  the state agency subject to abolition under
	Section 531.0202(b);
	(B)  the Department of Family and Protective
	Services; and
	(C)  the Department of State Health Services.
	(b)  On the dates specified in the transition plan required
	under Section 531.0204, all functions in the health and human
	services system related to prevention and early intervention
	services, including the Nurse-Family Partnership Competitive Grant
	Program under Subchapter C, Chapter 265, Family Code, are
	transferred to the Department of Family and Protective Services.
	Sec. 531.02011.  PHASE TWO: FINAL TRANSFERS TO COMMISSION.
	On the dates specified in the transition plan required under
	Section 531.0204, the following functions are transferred to the
	commission as provided by this subchapter:
	(1)  all functions of the state agency subject to
	abolition under Section 531.0202(b) that remained with the agency
	after the initial transfer of functions under Section 531.0201 or a
	transfer of administrative support services functions under
	Section 531.02012;
	(2)  regulatory functions and functions related to
	state-operated institutions of the Department of State Health
	Services; and
	(3)  regulatory functions of the Department of Family
	and Protective Services.
	Sec. 531.02012.  TRANSFER AND CONSOLIDATION OF
	ADMINISTRATIVE SUPPORT SERVICES FUNCTIONS. (a)  In this section,
	"administrative support services" has the meaning assigned under
	Section 531.00553.
	(b)  As soon as practicable after the first day of the period
	prescribed by Section 531.02001(1) and not later than the last day
	of the period prescribed by Section 531.02001(2), in accordance
	with and on the dates specified in the transition plan required
	under Section 531.0204, the executive commissioner shall, after
	consulting with affected state agencies and divisions, transfer and
	consolidate within the commission administrative support services
	functions of the health and human services system to the extent
	consolidation of those support services functions is feasible and
	contributes to the effective performance of the system.
	Consolidation of an administrative support services function under
	this section must be conducted in accordance with the principles
	and requirements for organization of administrative support
	services under Section 531.00553(c).
	(c)  Consultation with affected state agencies and divisions
	under Subsection (b) must be conducted in a manner that ensures
	client services are, at most, only minimally affected, and must
	result in a memorandum of understanding or other agreement between
	the commission and each affected agency or division that:
	(1)  details measurable performance goals that the
	commission is expected to meet;
	(2)  identifies a means by which the agency or division
	may seek permission from the executive commissioner to find an
	alternative way to address the needs of the agency or division, as
	appropriate;
	(3)  identifies steps to ensure that programs under the
	health and human services system, whether large or small, receive
	administrative support services that are adequate to meet the
	program's needs; and
	(4)  if appropriate, specifies that staff responsible
	for providing administrative support services consolidated within
	the commission are located in the area where persons requiring
	those services are located to ensure the staff understands related
	program needs and can respond to those needs in a timely manner.
	Sec. 531.02013.  FUNCTIONS REMAINING WITH CERTAIN AGENCIES.
	The following functions are not subject to transfer under Sections
	531.0201 and 531.02011:
	(1)  the functions of the Department of Family and
	Protective Services, including the statewide intake of reports and
	other information, related to the following:
	(A)  child protective services, including
	services that are required by federal law to be provided by this
	state's child welfare agency;
	(B)  adult protective services, other than
	investigations of the alleged abuse, neglect, or exploitation of an
	elderly person or person with a disability:
	(i)  in a facility operated, or in a facility
	or by a person licensed, certified, or registered, by a state
	agency; or
	(ii)  by a provider that has contracted to
	provide home and community-based services; and
	(C)  prevention and early intervention services;
	and
	(2)  the public health functions of the Department of
	State Health Services, including health care data collection and
	maintenance of the Texas Health Care Information Collection
	program.
	Sec. 531.02014.  RELATED TRANSFERS; EFFECT OF
	CONSOLIDATION. (a)  All of the following that relate to a function
	that is transferred under Section 531.0201, 531.02011, or 531.02012
	are transferred to the commission or the Department of Family and
	Protective Services, as applicable, on the date the related
	function is transferred as specified in the transition plan
	required under Section 531.0204:
	(1)  all obligations and contracts, including
	obligations and contracts related to a grant program;
	(2)  all property and records in the custody of the
	state agency or entity from which the function is transferred;
	(3)  all funds appropriated by the legislature and
	other money; and
	(4)  all complaints, investigations, or contested
	cases that are pending before the state agency or entity from which
	the function is transferred or a governing person or entity of the
	state agency or entity, without change in status.
	(b)  A rule, policy, or form adopted by or on behalf of a
	state agency or entity from which functions are transferred under
	Section 531.0201, 531.02011, or 531.02012 that relates to a
	function that is transferred under one of those sections becomes a
	rule, policy, or form of the receiving state agency upon transfer of
	the related function and remains in effect:
	(1)  until altered by the commission or other receiving
	state agency, as applicable; or
	(2)  unless it conflicts with a rule, policy, or form of
	the receiving state agency.
	(c)  A license, permit, or certification in effect that was
	issued by a state agency or entity from which functions are
	transferred under Section 531.0201 or 531.02011 that relates to a
	function that is transferred under either of those sections is
	continued in effect as a license, permit, or certification of the
	commission upon transfer of the related function until the license,
	permit, or certification expires, is suspended or revoked, or
	otherwise becomes invalid.
	Sec. 531.0202.  ABOLITION OF STATE AGENCIES AND ENTITIES;
	EFFECT OF TRANSFERS. (a)  Each of the following state agencies and
	entities is abolished on a date that is within the period prescribed
	by Section 531.02001(1), that is specified in the transition plan
	required under Section 531.0204 for the abolition of the agency or
	entity, and that occurs after all of the agency's or entity's
	functions have been transferred in accordance with Section
	531.0201:
	(1)  the Department of Assistive and Rehabilitative
	Services;
	(2)  the Health and Human Services Council;
	(3)  the Aging and Disability Services Council;
	(4)  the Assistive and Rehabilitative Services
	Council;
	(5)  the Family and Protective Services Council;
	(6)  the State Health Services Council;
	(7)  the Office for the Prevention of Developmental
	Disabilities; and
	(8)  the Texas Council on Autism and Pervasive
	Developmental Disorders.
	(b)  The Department of Aging and Disability Services is
	abolished on a date that is within the period prescribed by Section
	531.02001(2), that is specified in the transition plan required
	under Section 531.0204 for the abolition of the department, and
	that occurs after all of the department's functions have been
	transferred to the commission in accordance with Sections 531.0201
	and 531.02011.
	(c)  The abolition of a state agency or entity listed in
	Subsection (a) or (b) and the transfer of its functions and related
	obligations, rights, contracts, records, property, and funds as
	provided by this subchapter and the transfer of functions and
	related obligations, rights, contracts, records, property, and
	funds to or from the Department of Family and Protective Services
	and from the Department of State Health Services as provided by this
	subchapter do not affect or impair an act done, any obligation,
	right, order, permit, certificate, rule, criterion, standard, or
	requirement existing, or any penalty accrued under former law, and
	that law remains in effect for any action concerning those matters.
	Sec. 531.0203.  HEALTH AND HUMAN SERVICES TRANSITION
	LEGISLATIVE OVERSIGHT COMMITTEE. (a)  In this section,
	"committee" means the Health and Human Services Transition
	Legislative Oversight Committee established under this section.
	(b)  The Health and Human Services Transition Legislative
	Oversight Committee is created to facilitate the transfer of
	functions under Sections 531.0201, 531.02011, and 531.02012 with
	minimal negative effect on the delivery of services to which those
	functions relate.
	(c)  The committee is composed of 11 voting members, as
	follows:
	(1)  four members of the senate, appointed by the
	lieutenant governor;
	(2)  four members of the house of representatives,
	appointed by the speaker of the house of representatives; and
	(3)  three members of the public, appointed by the
	governor.
	(d)  The executive commissioner serves as an ex officio,
	nonvoting member of the committee.
	(e)  A member of the committee serves at the pleasure of the
	appointing official.
	(f)  The lieutenant governor and the speaker of the house of
	representatives shall each designate a presiding co-chair from
	among their respective appointments.
	(g)  A member of the committee may not receive compensation
	for serving on the committee but is entitled to reimbursement for
	travel expenses incurred by the member while conducting the
	business of the committee as provided by the General Appropriations
	Act.
	(h)  The committee shall:
	(1)  facilitate the transfer of functions under
	Sections 531.0201, 531.02011, and 531.02012 with minimal negative
	effect on the delivery of services to which those functions relate;
	(2)  with assistance from the commission and the state
	agencies and entities from which functions are transferred under
	Sections 531.0201, 531.02011, and 531.02012, advise the executive
	commissioner concerning:
	(A)  the functions to be transferred under this
	subchapter and the funds and obligations that are related to the
	functions;
	(B)  the transfer of the functions and related
	records, property, funds, and obligations by the state agencies and
	entities as provided by this subchapter; and
	(C)  the reorganization of the commission's
	administrative structure in accordance with this subchapter,
	Sections 531.0055, 531.00553, 531.00561, 531.00562, and 531.008,
	and other provisions enacted by the 84th Legislature that become
	law; and
	(3)  meet:
	(A)  during the period between the establishment
	of the committee and September 1, 2017, at least quarterly at the
	call of either chair, in addition to meeting at other times as
	determined appropriate by either chair;
	(B)  during the period between September 2, 2017,
	and December 31, 2019, at least semiannually at the call of either
	chair, in addition to meeting at other times as determined
	appropriate by either chair; and
	(C)  during the period between January 1, 2020,
	and August 31, 2023, at least annually at the call of either chair,
	in addition to meeting at other times as determined appropriate by
	either chair.
	(i)  Chapter 551 applies to the committee.
	(j)  The committee shall submit a report to the governor,
	lieutenant governor, speaker of the house of representatives, and
	legislature not later than December 1 of each even-numbered year.
	The report must include an update on the progress of and issues
	related to:
	(1)  the transfer of functions under Sections 531.0201,
	531.02011, and 531.02012 to the commission and the Department of
	Family and Protective Services, including the need for any
	additional statutory changes required to complete the transfer of
	prevention and early intervention services functions to the
	department in accordance with this subchapter; and
	(2)  the reorganization of the commission's
	administrative structure in accordance with this subchapter,
	Sections 531.0055, 531.00553, 531.00561, 531.00562, and 531.008,
	and other provisions enacted by the 84th Legislature that become
	law.
	(k)  The committee is abolished September 1, 2023.
	Sec. 531.02031.  STUDY ON CONTINUING NEED FOR CERTAIN STATE
	AGENCIES.  (a)  Not later than September 1, 2018, the executive
	commissioner shall conduct a study and submit a report and
	recommendation to the Health and Human Services Transition
	Legislative Oversight Committee regarding the need to continue the
	Department of Family and Protective Services and the Department of
	State Health Services as state agencies separate from the
	commission.
	(b)  Not later than December 1, 2018, the Health and Human
	Services Transition Legislative Oversight Committee shall review
	the report and recommendation submitted under Subsection (a) and
	submit a report and recommendation to the legislature regarding the
	need to continue the Department of Family and Protective Services
	and the Department of State Health Services as state agencies
	separate from the commission.
	(c)  The Health and Human Services Transition Legislative
	Oversight Committee shall include the following in the report
	submitted to the legislature under Subsection (b):
	(1)  an evaluation of the transfer of prevention and
	early intervention services functions to the Department of Family
	and Protective Services as provided by this subchapter, including
	an evaluation of:
	(A)  any increased coordination and efficiency in
	the operation of the programs achieved as a result of the transfer;
	(B)  the department's coordination with other
	state agency programs providing similar prevention and early
	intervention services; and
	(C)  the department's interaction with
	stakeholders and other interested parties in performing the
	department's functions; and
	(2)  any recommendations concerning the transfer of
	prevention and early intervention services functions of the
	department to another state agency.
	Sec. 531.0204.  TRANSITION PLAN FOR IMPLEMENTATION OF
	CONSOLIDATION.  (a)  The transfers of functions under Sections
	531.0201, 531.02011, and 531.02012 must be accomplished in
	accordance with a transition plan developed by the executive
	commissioner that ensures that the transfers and provision of
	health and human services in this state are accomplished in a
	careful and deliberative manner.  The transition plan must:
	(1)  include an outline of the commission's reorganized
	structure, including its divisions, in accordance with this
	subchapter, Sections 531.00561, 531.00562, and 531.008, and other
	provisions enacted by the 84th Legislature that become law;
	(2)  include details regarding movement of functions
	and a timeline that, subject to the periods prescribed by Section
	531.02001, specifies the dates on which:
	(A)  the transfers under Sections 531.0201,
	531.02011, and 531.02012 are to be made;
	(B)  each state agency or entity subject to
	abolition under Section 531.0202 is abolished; and
	(C)  each division of the commission is created
	and the division's director is appointed;
	(3)  for purposes of Sections 531.0201, 531.02011, and
	531.02013, define:
	(A)  client services functions;
	(B)  regulatory functions;
	(C)  public health functions; and
	(D)  functions related to:
	(i)  state-operated institutions;
	(ii)  child protective services;
	(iii)  adult protective services; and
	(iv)  prevention and early intervention
	services; and
	(4)  include an evaluation and determination of the
	feasibility and potential effectiveness of consolidating
	administrative support services into the commission in accordance
	with Section 531.02012, including a report of:
	(A)  the specific support services that will be
	consolidated within the commission;
	(B)  a timeline that details when specific support
	services will be consolidated, including a description of the
	support services that will transfer by the last day of each period
	prescribed by Section 531.02001; and
	(C)  measures the commission will take to ensure
	information resources and contracting support services continue to
	operate properly across the health and human services system under
	any consolidation of administrative support services.
	(b)  In defining the transferred functions under Subsection
	(a)(3), the executive commissioner shall ensure that:
	(1)  not later than the last day of the period
	prescribed by Section 531.02001(1), all functions of an agency or
	entity subject to abolition under Section 531.0202(a) are
	transferred to the commission or the Department of Family and
	Protective Services, as applicable;
	(2)  the transferred prevention and early intervention
	services functions to the Department of Family and Protective
	Services include:
	(A)  prevention and early intervention services
	as defined under Section 265.001, Family Code; and
	(B)  programs that:
	(i)  provide parent education;
	(ii)  promote healthier parent-child
	relationships; or
	(iii)  prevent family violence; and
	(3)  not later than the last day of the period
	prescribed by Section 531.02001(2), all functions of the agency
	subject to abolition under Section 531.0202(b) are transferred to
	the commission.
	(c)  In developing the transition plan, the executive
	commissioner shall, 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 (e):
	(1)  hold public hearings in various geographic areas
	in this state regarding the plan; and
	(2)  solicit and consider input from appropriate
	stakeholders.
	(d)  Within the periods prescribed by Section 531.02001:
	(1)  the commission shall begin administering the
	respective functions assigned to the commission under Sections
	531.0201 and 531.02011, as applicable; and
	(2)  the Department of Family and Protective Services
	shall begin administering the functions assigned to the department
	under Section 531.0201.
	(d-1)  The assumption of the administration of the functions
	transferred to the commission and the Department of Family and
	Protective Services under Sections 531.0201 and 531.02011, as
	applicable, must be accomplished in accordance with the transition
	plan.
	(e)  The executive commissioner shall submit the transition
	plan to the Health and Human Services Transition Legislative
	Oversight Committee, the governor, and the Legislative Budget Board
	not later than March 1, 2016.  The Health and Human Services
	Transition Legislative Oversight Committee shall comment on and
	make recommendations to the executive commissioner regarding any
	concerns or adjustments to the transition plan the committee
	determines appropriate.  The executive commissioner may not
	finalize the transition plan until the executive commissioner has
	reviewed and considered the comments and recommendations of the
	committee regarding the transition plan.
	(f)  The executive commissioner shall publish in the Texas
	Register:
	(1)  the transition plan developed under this section;
	(2)  any adjustments to the transition plan recommended
	by the Health and Human Services Transition Legislative Oversight
	Committee;
	(3)  a statement regarding whether the executive
	commissioner adopted or otherwise incorporated the recommended
	adjustments; and
	(4)  if the executive commissioner did not adopt a
	recommended adjustment, the justification for not adopting the
	adjustment.
	Sec. 531.02041.  REQUIRED REPORTS AFTER TRANSITION PLAN
	SUBMISSION. If, at any time after the executive commissioner
	submits the transition plan in accordance with Section 531.0204(e),
	the executive commissioner proposes to make a substantial
	organizational change to the health and human services system that
	was not included in the transition plan, the executive commissioner
	shall, before implementing the proposed change, submit a report
	detailing the proposed change to 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 plan required under Section
	531.0204;
	(2)  an evaluation and recommendations regarding the
	need to continue the Department of Family and Protective Services
	and the Department of State Health Services as state agencies
	separate from the commission; and
	(3)  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 that is transferred to the
	commission in accordance with that subchapter and for which federal
	law requires the designation of a responsible state agency.
	(d)  Notwithstanding Section 531.0201, 531.02011, or
	531.02012, Government Code, as added by this article, a power,
	duty, program, function, or activity of the Department of Assistive
	and Rehabilitative Services may not be transferred to the Health
	and Human Services Commission under that section if:
	(1)  H.B. No. 3294 or S.B. No. 208, 84th Legislature,
	Regular Session, 2015, or similar legislation of the 84th
	Legislature, Regular Session, 2015, is enacted, becomes law, and
	provides for the transfer of the power, duty, program, function, or
	activity to the Texas Workforce Commission subject to receipt of
	any necessary federal approval or other authorization for the
	transfer to occur; and
	(2)  the Department of Assistive and Rehabilitative
	Services or the Texas Workforce Commission receives the necessary
	federal approval or other authorization to enable the transfer to
	occur not later than September 1, 2016.
	(e)  If neither the Department of Assistive and
	Rehabilitative Services nor the Texas Workforce Commission
	receives the federal approval or other authorization described by
	Subsection (d) of this section to enable the transfer of the power,
	duty, program, function, or activity to the Texas Workforce
	Commission to occur not later than September 1, 2016, as provided by
	the legislation described by Subsection (d) of this section, the
	power, duty, program, function, or activity of the Department of
	Assistive and Rehabilitative Services transfers to the Health and
	Human Services Commission in accordance with Section 531.0201 or
	531.02011, Government Code, as added by this article, and the
	transition plan required under Section 531.0204, Government Code,
	as added by this article.
	SECTION 1.02.  Subchapter A, Chapter 531, Government Code,
	is amended by adding Sections 531.0011 and 531.0012 to read as
	follows:
	Sec. 531.0011.  REFERENCES IN LAW MEANING COMMISSION OR
	APPROPRIATE DIVISION. (a)  In this code or in any other law, a
	reference to any of the following state agencies or entities in
	relation to a function transferred to the commission under Section
	531.0201, 531.02011, or 531.02012, as applicable, means the
	commission or the division of the commission performing the
	function previously performed by the state agency or entity before
	the transfer, as appropriate:
	(1)  health and human services agency;
	(2)  the Department of State Health Services;
	(3)  the Department of Aging and Disability Services;
	(4)  the Department of Family and Protective Services;
	or
	(5)  the Department of Assistive and Rehabilitative
	Services.
	(b)  In this code or in any other law and notwithstanding any
	other law, a reference to any of the following state agencies or
	entities in relation to a function transferred to the commission
	under Section 531.0201, 531.02011, or 531.02012, as applicable,
	from the state agency that assumed the relevant function in
	accordance with Chapter 198 (H.B. 2292), Acts of the 78th
	Legislature, Regular Session, 2003, means the commission or the
	division of the commission performing the function previously
	performed by the agency that assumed the function before the
	transfer, as appropriate:
	(1)  the Texas Department on Aging;
	(2)  the Texas Commission on Alcohol and Drug Abuse;
	(3)  the Texas Commission for the Blind;
	(4)  the Texas Commission for the Deaf and Hard of
	Hearing;
	(5)  the Texas Department of Health;
	(6)  the Texas Department of Human Services;
	(7)  the Texas Department of Mental Health and Mental
	Retardation;
	(8)  the Texas Rehabilitation Commission;
	(9)  the Texas Health Care Information Council; or
	(10)  the Interagency Council on Early Childhood
	Intervention.
	(c)  In this code or in any other law and notwithstanding any
	other law, a reference to the Department of Protective and
	Regulatory Services in relation to a function transferred under
	Section 531.0201, 531.02011, or 531.02012, as applicable, from the
	Department of Family and Protective Services means the commission
	or the division of the commission performing the function
	previously performed by the Department of Family and Protective
	Services before the transfer.
	(d)  This section applies notwithstanding Section
	531.001(4).
	Sec. 531.0012.  REFERENCES IN LAW MEANING EXECUTIVE
	COMMISSIONER OR DESIGNEE. (a)  In this code or in any other law, a
	reference to any of the following persons in relation to a function
	transferred to the commission under Section 531.0201, 531.02011, or
	531.02012, as applicable, means the executive commissioner, the
	executive commissioner's designee, or the director of the division
	of the commission performing the function previously performed by
	the state agency from which it was transferred and that the person
	represented, as appropriate:
	(1)  the commissioner of aging and disability services;
	(2)  the commissioner of assistive and rehabilitative
	services;
	(3)  the commissioner of state health services; or
	(4)  the commissioner of the Department of Family and
	Protective Services.
	(b)  In this code or in any other law and notwithstanding any
	other law, a reference to any of the following persons or entities
	in relation to a function transferred to the commission under
	Section 531.0201, 531.02011, or 531.02012, as applicable, from the
	state agency that assumed or continued to perform the function in
	accordance with Chapter 198 (H.B. 2292), Acts of the 78th
	Legislature, Regular Session, 2003, means the executive
	commissioner or the director of the division of the commission
	performing the function performed before the enactment of Chapter
	198 (H.B. 2292) by the state agency that was abolished or renamed by
	Chapter 198 (H.B. 2292) and that the person or entity represented:
	(1)  an executive director or other chief
	administrative officer of a state agency listed in Section
	531.0011(b) or of the Department of Protective and Regulatory
	Services; or
	(2)  the governing body of a state agency listed in
	Section 531.0011(b) or of the Department of Protective and
	Regulatory Services.
	(c)  A reference to any of the following councils means the
	executive commissioner or the executive commissioner's designee,
	as appropriate, and a function of any of the following councils is a
	function of that appropriate person:
	(1)  the Health and Human Services Council;
	(2)  the Aging and Disability Services Council;
	(3)  the Assistive and Rehabilitative Services
	Council;
	(4)  the Family and Protective Services Council; or
	(5)  the State Health 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.
	(b)  The council does not have authority to make
	administrative or policy decisions.
	(c)  The council is composed of:
	(1)  the executive commissioner;
	(2)  the director of each division established by the
	executive commissioner under Section 531.008(c);
	(3)  the commissioner of a health and human services
	agency; and
	(4)  other individuals appointed by the executive
	commissioner as the executive commissioner determines necessary.
	(c-1)  To the extent the executive commissioner appoints
	members to the council under Subsection (c)(4), the executive
	commissioner shall make every effort to ensure that those
	appointments result in a council membership that includes:
	(1)  a balanced representation of a broad range of
	health and human services industry and consumer interests; and
	(2)  representation from broad geographic regions of
	this state.
	(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)(4):
	(1)  are subject to the restrictions applicable to
	service on the council provided by Section 531.006(a-1); and
	(2)  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)(4) may
	not receive compensation for service as a member of the council but
	is entitled to reimbursement for travel expenses incurred by the
	member while conducting the business of the council as provided by
	the General Appropriations Act.
	(j)  The executive commissioner shall develop and implement
	policies that provide the public with a reasonable opportunity to
	appear before the council and to speak on any issue under the
	jurisdiction of the commission.
	(k)  A meeting of individual members of the council that
	occurs in the ordinary course of commission operation is not a
	meeting of the council, and the requirements of Subsection (g) do
	not apply.
	(l)  This section does not limit the authority of the
	executive commissioner to establish additional advisory committees
	or councils.
	(m)  Chapters 551 and 2110 do not apply to the council.
	(b)  As soon as possible after the executive commissioner of
	the Health and Human Services Commission appoints division
	directors in accordance with Section 531.00561, Government Code, as
	added by this article, the Health and Human Services Commission
	Executive Council established under Section 531.0051, Government
	Code, as added by this article, shall begin operation.
	SECTION 1.04.  The heading to Section 531.0055, Government
	Code, is amended to read as follows:
	Sec. 531.0055.  EXECUTIVE COMMISSIONER: GENERAL
	RESPONSIBILITY FOR HEALTH AND HUMAN SERVICES SYSTEM [AGENCIES].
	SECTION 1.05.  Section 531.0055, Government Code, is amended
	by amending Subsection (b), as amended by S.B. 219, Acts of the 84th
	Legislature, Regular Session, 2015, and amending Subsections (d),
	(e), (f), (g), (h), (k), and (l) to read as follows:
	(b)  The commission shall:
	(1)  supervise the administration and operation of
	Medicaid, including the administration and operation of the
	Medicaid managed care system in accordance with Section 531.021;
	(2)  perform information systems planning and
	management for the health and human services system [agencies]
	under Section 531.0273, with:
	(A)  the provision of information technology
	services for the [at] health and human services system [agencies]
	considered to be a centralized administrative support service
	either performed by commission personnel or performed under a
	contract with the commission; and
	(B)  an emphasis on research and implementation on
	a demonstration or pilot basis of appropriate and efficient uses of
	new and existing technology to improve the operation of the health
	and human services system [agencies] and delivery of health and
	human services;
	(3)  monitor and ensure the effective use of all
	federal funds received for the [by a] health and human services
	system [agency] in accordance with Section 531.028 and the General
	Appropriations Act;
	(4)  implement Texas Integrated Enrollment Services as
	required by Subchapter F, except that notwithstanding Subchapter F,
	determining eligibility for benefits under the following programs
	is the responsibility of and must be centralized by the commission:
	(A)  the child health plan program;
	(B)  the financial assistance program under
	Chapter 31, Human Resources Code;
	(C)  Medicaid;
	(D)  the supplemental nutrition assistance
	program under Chapter 33, Human Resources Code;
	(E)  long-term care services, as defined by
	Section 22.0011, Human Resources Code;
	(F)  community-based support services identified
	or provided in accordance with Section 531.02481; and
	(G)  other health and human services programs, as
	appropriate; and
	(5)  implement programs intended to prevent family
	violence and provide services to victims of family violence.
	(d)  After implementation of the commission's duties under
	Subsections (b) and (c), the commission shall implement the powers
	and duties given to the commission under Section 531.0248. Nothing
	in the priorities established by this section is intended to limit
	the authority of the commission to work simultaneously to achieve
	the multiple tasks assigned to the commission in this section, when
	such an approach is beneficial in the judgment of the commission.
	The commission shall plan and implement an efficient and effective
	centralized system of administrative support services for the
	health and human services system in accordance with Section
	531.00553 [agencies]. [The performance of administrative support
	services for health and human services 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) and Section 531.00553 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, 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.
	(k)  The executive commissioner and each agency director
	shall enter into a memorandum of understanding in the manner
	prescribed by Section 531.0163 that:
	(1)  clearly defines the responsibilities of the agency
	director and the executive commissioner, including:
	(A)  the responsibility of the agency director to
	report to the governor and to report to and implement policies of
	the executive commissioner; and
	(B)  the extent to which the agency director acts
	as a liaison between the agency and the commission;
	(2)  establishes the program of evaluation and
	supervision of daily operations required by Subsection (h); [and]
	(3)  describes each delegation of a power or duty made
	to an agency director; and
	(4)  ensures that the commission and each health and
	human services agency has access to databases or other information
	maintained or kept by each other agency that is necessary for the
	operation of a function performed by the commission or the health
	and human services agency, to the extent not prohibited by other law
	[under Subsection (i) or other law].
	(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].
	SECTION 1.06.  Subchapter A, Chapter 531, Government Code,
	is amended by adding Section 531.00553 to read as follows:
	Sec. 531.00553.  ADMINISTRATIVE SUPPORT SERVICES. (a)  In
	this section, the term "administrative support services" includes
	strategic planning and evaluation, audit, legal, human resources,
	information resources, purchasing, contracting, financial
	management, and accounting services.
	(b)  Subject to Subsection (c), the executive commissioner
	shall plan and implement an efficient and effective centralized
	system of administrative support services for the health and human
	services system. The performance of administrative support
	services for the health and human services system is the
	responsibility of the commission.
	(c)  The executive commissioner shall plan and implement the
	centralized system of administrative support services in
	accordance with the following principles and requirements:
	(1)  the executive commissioner shall consult with the
	commissioner of each agency and with the director of each division
	within the health and human services system to ensure the
	commission is responsive to and addresses agency or division needs;
	(2)  consolidation of staff providing the support
	services must be done in a manner that ensures each agency or
	division within the health and human services system that loses
	staff as a result of the centralization of support services has
	adequate resources to carry out functions of the agency or
	division, as appropriate; and
	(3)  the commission and each agency or division within
	the health and human services system shall, as appropriate, enter
	into a memorandum of understanding or other written agreement for
	the purpose of ensuring accountability for the provision of
	administrative services by clearly detailing:
	(A)  the responsibilities of each agency or
	division and the commission;
	(B)  the points of contact for each agency or
	division and the commission;
	(C)  the transfer of personnel among each agency
	or division and the commission;
	(D)  the budgetary effect the agreement has on
	each agency or division and the commission; and
	(E)  any other item determined by the executive
	commissioner to be critical for maintaining accountability.
	(d)  The memorandum of understanding or other agreement
	required under Subsection (c), if appropriate, may be combined with
	the memorandum of understanding required under Section
	531.0055(k).
	SECTION 1.07.  Section 531.0056, Government Code, is amended
	by adding Subsection (g) 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.
	SECTION 1.08.  (a)  Subchapter A, Chapter 531, Government
	Code, is amended by adding Sections 531.00561 and 531.00562 to read
	as follows:
	Sec. 531.00561.  APPOINTMENT AND QUALIFICATIONS OF DIVISION
	DIRECTORS. (a)  The executive commissioner shall appoint a
	director for each division established within the commission under
	Section 531.008, except that the director of the office of
	inspector general is appointed in accordance with Section
	531.102(a-1).
	(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 and develop clear policies
	for the delegation of specific decision-making authority,
	including budget authority, to division directors.
	(b)  The delegation of decision-making authority should be
	significant enough to ensure the efficient administration of the
	commission's programs and services.
	(b)  The executive commissioner of the Health and Human
	Services Commission shall implement Sections 531.00561 and
	531.00562, Government Code, as added by this article, on the date
	specified in the transition plan required under Section 531.0204,
	Government Code, as added by this article.
	SECTION 1.09.  (a)  Section 531.008, Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	Sec. 531.008.  DIVISIONS OF COMMISSION. (a)  The [Subject
	to Subsection (c), the] executive commissioner shall [may]
	establish divisions within the commission along functional lines as
	necessary for effective administration and for the discharge of the
	commission's functions.
	(b)  The [Subject to Subsection (c), the] executive
	commissioner may allocate and reallocate functions among the
	commission's divisions.
	(c)  Notwithstanding Subsections (a) and (b), the [The]
	executive commissioner shall establish the following divisions and
	offices within the commission:
	(1)  a medical and social services division [the
	eligibility services division to make eligibility determinations
	for services provided through the commission or a health and human
	services agency related to:
	[(A)  the child health plan program;
	[(B)     the financial assistance program under
	Chapter 31, Human Resources Code;
	[(C)  Medicaid;
	[(D)     the supplemental nutrition assistance
	program under Chapter 33, Human Resources Code;
	[(E)     long-term care services, as defined by
	Section 22.0011, Human Resources Code;
	[(F)     community-based support services identified
	or provided in accordance with Section 531.02481; and
	[(G)     other health and human services programs, as
	appropriate];
	(2)  the office of inspector general to perform fraud
	and abuse investigation and enforcement functions as provided by
	Subchapter C and other law;
	(3)  a regulatory division [the office of the ombudsman
	to:
	[(A)     provide dispute resolution services for the
	commission and the health and human services agencies; and
	[(B)     perform consumer protection functions
	related to health and human services];
	(4)  an administrative division [a purchasing division
	as provided by Section 531.017]; and
	(5)  a facilities division for the purpose of
	administering state facilities, including state hospitals and
	state supported living centers [an internal audit division to
	conduct a program of internal auditing in accordance with Chapter
	2102].
	(d)  Subsection (c) does not prohibit the executive
	commissioner from establishing additional divisions under
	Subsection (a) as the executive commissioner determines
	appropriate.  This subsection and Subsection (c) expire September
	1, 2023.
	(b)  The executive commissioner of the Health and Human
	Services Commission shall establish divisions within the
	commission as required under Section 531.008, Government Code, as
	amended by this article, on the date specified in the transition
	plan required under Section 531.0204, Government Code, as added by
	this article.
	SECTION 1.10.  (a)  Subchapter A, Chapter 531, Government
	Code, is amended by adding Section 531.0083 to read as follows:
	Sec. 531.0083.  OFFICE OF POLICY AND PERFORMANCE. (a)  In
	this section, "office" means the office of policy and performance
	established by this section.
	(b)  The executive commissioner shall establish the office
	of policy and performance as an executive-level office designed to
	coordinate policy and performance efforts across the health and
	human services system.  To coordinate those efforts, the office
	shall:
	(1)  develop a performance management system;
	(2)  take the lead in supporting and providing
	oversight for the implementation of major policy changes and in
	managing organizational changes; and
	(3)  act as a centralized body of experts within the
	commission that offers program evaluation and process improvement
	expertise.
	(c)  In developing a performance management system under
	Subsection (b)(1), the office shall:
	(1)  gather, measure, and evaluate performance
	measures and accountability systems used by the health and human
	services system;
	(2)  develop new and refined performance measures as
	appropriate; and
	(3)  establish targeted, high-level system metrics
	that are capable of measuring and communicating overall performance
	and achievement of goals by the health and human services system to
	both internal and public audiences through various mechanisms,
	including the Internet.
	(d)  In providing support and oversight for the
	implementation of policy or organizational changes within the
	health and human services system under Subsection (b)(2), the
	office shall:
	(1)  ensure individuals receiving services from or
	participating in programs administered through the health and human
	services system do not lose visibility or attention during the
	implementation of any new policy or organizational change by:
	(A)  establishing timelines and milestones for
	any transition;
	(B)  supporting staff of the health and human
	services system in any change between service delivery methods; and
	(C)  providing feedback to executive management
	on technical assistance and other support needed to achieve a
	successful transition;
	(2)  address cultural differences among staff of the
	health and human services system; and
	(3)  track and oversee changes in policy or
	organization mandated by legislation or administrative rule.
	(e)  In acting as a centralized body of experts under
	Subsection (b)(3), the office shall:
	(1)  for the health and human services system, provide
	program evaluation and process improvement guidance both generally
	and for specific projects identified with executive or stakeholder
	input or through risk analysis; and
	(2)  identify and monitor cross-functional efforts
	involving different administrative components within the health
	and human services system and the establishment of cross-functional
	teams when necessary to improve the coordination of services
	provided through the system.
	(f)  The executive commissioner may otherwise develop the
	office's structure and duties as the executive commissioner
	determines appropriate.
	(b)  As soon as practicable after the effective date of this
	article but not later than October 1, 2015, the executive
	commissioner of the Health and Human Services Commission shall
	establish the office of policy and performance as an executive
	office within the commission as required under Section 531.0083,
	Government Code, as added by this article.
	(c)  The office of policy and performance required under
	Section 531.0083, Government Code, as added by this article, shall
	assist the Health and Human Services Transition Legislative
	Oversight Committee created under Section 531.0203, Government
	Code, as added by this article, by performing the functions
	required of the office under Section 531.0083(b)(2), Government
	Code, as added by this article, with respect to the consolidation
	mandated by Subchapter A-1, Chapter 531, Government Code, as added
	by this article.
	SECTION 1.11.  Section 531.017, Government Code, is amended
	to read as follows:
	Sec. 531.017.  PURCHASING UNIT [DIVISION]. (a)  The
	commission shall establish a purchasing unit [division] for the
	management of administrative activities related to the purchasing
	functions within [of the commission and] the health and human
	services system [agencies].
	(b)  The purchasing unit [division] shall:
	(1)  seek to achieve targeted cost reductions, increase
	process efficiencies, improve technological support and customer
	services, and enhance purchasing support within the [for each]
	health and human services system [agency]; and
	(2)  if cost-effective, contract with private entities
	to perform purchasing functions for the [commission and the] health
	and human services system [agencies].
	SECTION 1.12.  Chapter 265, Family Code, is amended by
	designating Sections 265.001 through 265.004 as Subchapter A and
	adding a subchapter heading to read as follows:
	SUBCHAPTER A. PREVENTION AND EARLY INTERVENTION SERVICES
	SECTION 1.13.  Section 265.002, Family Code, is amended to
	read as follows:
	Sec. 265.002.  PREVENTION AND EARLY INTERVENTION SERVICES
	DIVISION. (a)  The department shall operate a division to provide
	services for children in at-risk situations and for the families of
	those children and to achieve the consolidation of prevention and
	early intervention services within the jurisdiction of a single
	agency in order to avoid fragmentation and duplication of services
	and to increase the accountability for the delivery and
	administration of these services. The division shall be called the
	prevention and early intervention services division and shall have
	the following duties:
	(1)  to plan, develop, and administer a comprehensive
	and unified delivery system of prevention and early intervention
	services to children and their families in at-risk situations;
	(2)  to improve the responsiveness of services for
	at-risk children and their families by facilitating greater
	coordination and flexibility in the use of funds by state and local
	service providers;
	(3)  to provide greater accountability for prevention
	and early intervention services in order to demonstrate the impact
	or public benefit of a program by adopting outcome measures; and
	(4)  to assist local communities in the coordination
	and development of prevention and early intervention services in
	order to maximize federal, state, and local resources.
	(b)  The department's prevention and early intervention
	services division must be organizationally separate from the
	department's divisions performing child protective services and
	adult protective services functions.
	SECTION 1.14.  Subchapter A, Chapter 265, Family Code, as
	added by this article, is amended by adding Section 265.006 to read
	as follows:
	Sec. 265.006.  PROHIBITION ON USE OF AGENCY NAME OR LOGO.
	The department may not allow the use of the department's name or
	identifying logo or insignia on forms or other materials related to
	the department's prevention and early intervention services that
	are:
	(1)  provided by the department's contractors; or
	(2)  distributed by the department's contractors to the
	department's clients.
	SECTION 1.15. (a)  Subchapter Q, Chapter 531, Government
	Code, including provisions amended by S.B. No. 219, Acts of the 84th
	Legislature, Regular Session, 2015, is transferred to Chapter 265,
	Family Code, redesignated as Subchapter C, Chapter 265, Family
	Code, and amended to read as follows:
	SUBCHAPTER C [Q]. NURSE-FAMILY PARTNERSHIP COMPETITIVE
	GRANT PROGRAM
	Sec. 265.101 [531.651].  DEFINITIONS. In this subchapter:
	(1)  "Competitive grant program" means the
	nurse-family partnership competitive grant program established
	under this subchapter.
	(2)  "Partnership program" means a nurse-family
	partnership program.
	Sec. 265.102 [531.652].  OPERATION OF NURSE-FAMILY
	PARTNERSHIP COMPETITIVE GRANT PROGRAM. (a)  The department
	[commission] shall operate a nurse-family partnership competitive
	grant program through which the department [commission] will award
	grants for the implementation of nurse-family partnership
	programs, or the expansion of existing programs, and for the
	operation of those programs for a period of not less than two years.
	(b)  The department [commission] shall award grants under
	the program to applicants, including applicants operating existing
	programs, in a manner that ensures that the partnership programs
	collectively:
	(1)  operate in multiple communities that are
	geographically distributed throughout this state; and
	(2)  provide program services to approximately 2,000
	families.
	Sec. 265.103 [531.653].  PARTNERSHIP PROGRAM REQUIREMENTS.
	A partnership program funded through a grant awarded under this
	subchapter must:
	(1)  strictly adhere to the program model developed by
	the Nurse-Family Partnership National Service Office, including
	any clinical, programmatic, and data collection requirements of
	that model;
	(2)  require that registered nurses regularly visit the
	homes of low-income, first-time mothers participating in the
	program to provide services designed to:
	(A)  improve pregnancy outcomes;
	(B)  improve child health and development;
	(C)  improve family economic self-sufficiency and
	stability; and
	(D)  reduce the incidence of child abuse and
	neglect;
	(3)  require that nurses who provide services through
	the program:
	(A)  receive training from the office of the
	attorney general at least once each year on procedures by which a
	person may voluntarily acknowledge the paternity of a child and on
	the availability of child support services from the office;
	(B)  provide a mother with information about the
	rights, responsibilities, and benefits of establishing the
	paternity of her child, if appropriate;
	(C)  provide assistance to a mother and the
	alleged father of her child if the mother and alleged father seek to
	voluntarily acknowledge paternity of the child, if appropriate; and
	(D)  provide information to a mother about the
	availability of child support services from the office of the
	attorney general; and
	(4)  require that the regular nurse visits described by
	Subdivision (2) begin not later than a mother's 28th week of
	gestation and end when her child reaches two years of age.
	Sec. 265.104 [531.654].  APPLICATION. (a)  A public or
	private entity, including a county, municipality, or other
	political subdivision of this state, may apply for a grant under
	this subchapter.
	(b)  To apply for a grant, an applicant must submit a written
	application to the department [commission] on a form prescribed by
	the department [commission] in consultation with the Nurse-Family
	Partnership National Service Office.
	(c)  The application prescribed by the department
	[commission] must:
	(1)  require the applicant to provide data on the
	number of low-income, first-time mothers residing in the community
	in which the applicant proposes to operate or expand a partnership
	program and provide a description of existing services available to
	those mothers;
	(2)  describe the ongoing monitoring and evaluation
	process to which a grant recipient is subject under Section 265.109
	[531.659], including the recipient's obligation to collect and
	provide information requested by the department [commission] under
	Section 265.109(c) [531.659(c)]; and
	(3)  require the applicant to provide other relevant
	information as determined by the department [commission].
	Sec. 265.105 [531.655].  ADDITIONAL CONSIDERATIONS IN
	AWARDING GRANTS. In addition to the factors described by Sections
	265.102(b) [531.652(b)] and 265.103 [531.653], in determining
	whether to award a grant to an applicant under this subchapter, the
	department [commission] shall consider:
	(1)  the demonstrated need for a partnership program in
	the community in which the applicant proposes to operate or expand
	the program, which may be determined by considering:
	(A)  the poverty rate, the crime rate, the number
	of births to Medicaid recipients, the rate of poor birth outcomes,
	and the incidence of child abuse and neglect during a prescribed
	period in the community; and
	(B)  the need to enhance school readiness in the
	community;
	(2)  the applicant's ability to participate in ongoing
	monitoring and performance evaluations under Section 265.109
	[531.659], including the applicant's ability to collect and provide
	information requested by the department [commission] under Section
	265.109(c) [531.659(c)];
	(3)  the applicant's ability to adhere to the
	partnership program standards adopted under Section 265.106
	[531.656];
	(4)  the applicant's ability to develop broad-based
	community support for implementing or expanding a partnership
	program, as applicable; and
	(5)  the applicant's history of developing and
	sustaining innovative, high-quality programs that meet the needs of
	families and communities.
	Sec. 265.106 [531.656].  PARTNERSHIP PROGRAM STANDARDS.
	The executive commissioner, with the assistance of the Nurse-Family
	Partnership National Service Office, shall adopt standards for the
	partnership programs funded under this subchapter.  The standards
	must adhere to the Nurse-Family Partnership National Service Office
	program model standards and guidelines that were developed in
	multiple, randomized clinical trials and have been tested and
	replicated in multiple communities.
	Sec. 265.107 [531.657].  USE OF AWARDED GRANT FUNDS. The
	grant funds awarded under this subchapter may be used only to cover
	costs related to implementing or expanding and operating a
	partnership program, including costs related to:
	(1)  administering the program;
	(2)  training and managing registered nurses who
	participate in the program;
	(3)  paying the salaries and expenses of registered
	nurses who participate in the program;
	(4)  paying for facilities and equipment for the
	program; and
	(5)  paying for services provided by the Nurse-Family
	Partnership National Service Office to ensure a grant recipient
	adheres to the organization's program model.
	Sec. 265.108 [531.658].  STATE NURSE CONSULTANT. Using
	money appropriated for the competitive grant program, the
	department [commission] shall hire or contract with a state nurse
	consultant to assist grant recipients with implementing or
	expanding and operating the partnership programs in the applicable
	communities.
	Sec. 265.109 [531.659].  PROGRAM MONITORING AND EVALUATION;
	ANNUAL COMMITTEE REPORTS. (a) The department [commission], with
	the assistance of the Nurse-Family Partnership National Service
	Office, shall:
	(1)  adopt performance indicators that are designed to
	measure a grant recipient's performance with respect to the
	partnership program standards adopted by the executive
	commissioner under Section 265.106 [531.656];
	(2)  use the performance indicators to continuously
	monitor and formally evaluate on an annual basis the performance of
	each grant recipient; and
	(3)  prepare and submit an annual report, not later
	than December 1 of each year, to the Senate Health and Human
	Services Committee, or its successor, and the House Human Services
	Committee, or its successor, regarding the performance of each
	grant recipient during the preceding state fiscal year with respect
	to providing partnership program services.
	(b)  The report required under Subsection (a)(3) must
	include:
	(1)  the number of low-income, first-time mothers to
	whom each grant recipient provided partnership program services
	and, of that number, the number of mothers who established the
	paternity of an alleged father as a result of services provided
	under the program;
	(2)  the extent to which each grant recipient made
	regular visits to mothers during the period described by Section
	265.103(4) [531.653(4)]; and
	(3)  the extent to which each grant recipient adhered
	to the Nurse-Family Partnership National Service Office's program
	model, including the extent to which registered nurses:
	(A)  conducted home visitations comparable in
	frequency, duration, and content to those delivered in Nurse-Family
	Partnership National Service Office clinical trials; and
	(B)  assessed the health and well-being of mothers
	and children participating in the partnership programs in
	accordance with indicators of maternal, child, and family health
	defined by the department [commission] in consultation with the
	Nurse-Family Partnership National Service Office.
	(c)  On request, each grant recipient shall timely collect
	and provide data and any other information required by the
	department [commission] to monitor and evaluate the recipient or to
	prepare the report required by this section.
	Sec. 265.110 [531.660].  COMPETITIVE GRANT PROGRAM FUNDING.
	(a)  The department [commission] shall actively seek and apply for
	any available federal funds, including federal Medicaid and
	Temporary Assistance for Needy Families (TANF) funds, to assist in
	financing the competitive grant program established under this
	subchapter.
	(b)  The department [commission] may use appropriated funds
	from the state government and may accept gifts, donations, and
	grants of money from the federal government, local governments,
	private corporations, or other persons to assist in financing the
	competitive grant program.
	(b)  Notwithstanding the transfer of Subchapter Q, Chapter
	531, Government Code, to Chapter 265, Family Code, and
	redesignation as Subchapter C of that chapter, the Health and Human
	Services Commission shall continue to administer the Nurse-Family
	Partnership Competitive Grant Program under that subchapter until
	the date the program transfers to the Department of Family and
	Protective Services in accordance with Section 531.0201,
	Government Code, as added by this article, and the transition plan
	under Section 531.0204, Government Code, as added by this article.
	SECTION 1.16.  Effective September 1, 2017, Section
	1001.002, Health and Safety Code, is amended to read as follows:
	Sec. 1001.002.  AGENCY AND AGENCY FUNCTIONS. (a)  In this
	section, "function" includes a power, duty, program, or activity
	and an administrative support services function associated with the
	power, duty, program, or activity, unless consolidated under
	Section 531.02012, Government Code.
	(b)  The department is an agency of the state.
	(c)  In accordance with Subchapter A-1, Chapter 531,
	Government Code, and notwithstanding any other law, the department
	performs only functions related to public health, including health
	care data collection and maintenance of the Texas Health Care
	Information Collection program.
	SECTION 1.17.  Effective September 1, 2017, Subchapter A,
	Chapter 1001, Health and Safety Code, is amended by adding Sections
	1001.004 and 1001.005 to read as follows:
	Sec. 1001.004.  REFERENCES IN LAW MEANING DEPARTMENT. In
	this code or any other law, a reference to the department in
	relation to a function described by Section 1001.002(c) means the
	department. A reference in law to the department in relation to any
	other function has the meaning assigned by Section 531.0011,
	Government Code.
	Sec. 1001.005.  REFERENCES IN LAW MEANING COMMISSIONER OR
	DESIGNEE. In this code or in any other law, a reference to the
	commissioner in relation to a function described by Section
	1001.002(c) means the commissioner. A reference in law to the
	commissioner in relation to any other function has the meaning
	assigned by Section 531.0012, Government Code.
	SECTION 1.18.  Effective September 1, 2017, Section
	40.002(b), Human Resources Code, as amended by S.B. 219, Acts of the
	84th Legislature, Regular Session, 2015, is amended to read as
	follows:
	(b)  Except as provided by Section 40.0025 [Notwithstanding
	any other law], the department shall:
	(1)  provide protective services for children and
	elderly persons and persons with disabilities, including
	investigations of alleged abuse, neglect, or exploitation in
	facilities of the Department of State Health Services and the
	Department of Aging and Disability Services or the successor agency
	for either of those agencies;
	(2)  provide family support and family preservation
	services that respect the fundamental right of parents to control
	the education and upbringing of their children;
	(3)  license, register, and enforce regulations
	applicable to child-care facilities, child-care administrators,
	and child-placing agency administrators; and
	(4)  implement and manage programs intended to provide
	early intervention or prevent at-risk behaviors that lead to child
	abuse, delinquency, running away, truancy, and dropping out of
	school.
	SECTION 1.19.  Effective September 1, 2017, Subchapter A,
	Chapter 40, Human Resources Code, is amended by adding Sections
	40.0025, 40.0026, and 40.0027 to read as follows:
	Sec. 40.0025.  AGENCY FUNCTIONS. (a)  In this section,
	"function" includes a power, duty, program, or activity and an
	administrative support services function associated with the
	power, duty, program, or activity, unless consolidated under
	Section 531.02012, Government Code.
	(b)  In accordance with Subchapter A-1, Chapter 531,
	Government Code, and notwithstanding any other law, the department
	performs only functions, including the statewide intake of reports
	and other information, related to the following services:
	(1)  child protective services, including services
	that are required by federal law to be provided by this state's
	child welfare agency;
	(2)  adult protective services, other than
	investigations of the alleged abuse, neglect, or exploitation of an
	elderly person or person with a disability:
	(A)  in a facility operated, or in a facility or by
	a person licensed, certified, or registered, by a state agency; or
	(B)  by a provider that has contracted to provide
	home and community-based services; and
	(3)  prevention and early intervention services
	functions, including:
	(A)  prevention and early intervention services
	as defined under Section 265.001, Family Code; and
	(B)  programs that:
	(i)  provide parent education;
	(ii)  promote healthier parent-child
	relationships; or
	(iii)  prevent family violence.
	Sec. 40.0026.  REFERENCES IN LAW MEANING DEPARTMENT. In
	this code or any other law, a reference to the department in
	relation to a function described by Section 40.0025(b) means the
	department. A reference in law to the department in relation to any
	other function has the meaning assigned by Section 531.0011,
	Government Code.
	Sec. 40.0027.  REFERENCES IN LAW MEANING COMMISSIONER OR
	DESIGNEE. In this code or in any other law, a reference to the
	commissioner in relation to a function described by Section
	40.0025(b) means the commissioner. A reference in law to the
	commissioner in relation to any other function has the meaning
	assigned by Section 531.0012, Government Code.
	SECTION 1.20.  Sections 40.0515(d) and (e), Human Resources
	Code, are amended to read as follows:
	(d)  A performance review conducted under Subsection (b)(3)
	is considered a performance evaluation for purposes of Section
	40.032(c) of this code or Section 531.009(c), Government Code, as
	applicable.  The department shall ensure that disciplinary or other
	corrective action is taken against a supervisor or other managerial
	employee who is required to conduct a performance evaluation for
	adult protective services personnel under Section 40.032(c) of this
	code or Section 531.009(c), Government Code, as applicable, or a
	performance review under Subsection (b)(3) and who fails to
	complete that evaluation or review in a timely manner.
	(e)  The annual performance evaluation required under
	Section 40.032(c) of this code or Section 531.009(c), Government
	Code, as applicable, of the performance of a supervisor in the adult
	protective services division must:
	(1)  be performed by an appropriate program
	administrator; and
	(2)  include:
	(A)  an evaluation of the supervisor with respect
	to the job performance standards applicable to the supervisor's
	assigned duties; and
	(B)  an evaluation of the supervisor with respect
	to the compliance of employees supervised by the supervisor with
	the job performance standards applicable to those employees'
	assigned duties.
	SECTION 1.21.  (a)  The heading to Subchapter C, Chapter
	112, Human Resources Code, is amended to read as follows:
	SUBCHAPTER C.  [OFFICE FOR THE] PREVENTION OF DEVELOPMENTAL
	DISABILITIES
	(b)  Section 112.042, Human Resources Code, is amended by
	amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
	read as follows:
	(1)  "Commission" means the Health and Human Services
	Commission.
	(1-a)  "Developmental disability" means a severe,
	chronic disability that:
	(A)  is attributable to a mental or physical
	impairment or to a combination of a mental and physical impairment;
	(B)  is manifested before a person reaches the age
	of 22;
	(C)  is likely to continue indefinitely;
	(D)  results in substantial functional
	limitations in three or more major life activities, including:
	(i)  self-care;
	(ii)  receptive and expressive language;
	(iii)  learning;
	(iv)  mobility;
	(v)  self-direction;
	(vi)  capacity for independent living; and
	(vii)  economic sufficiency; and
	(E)  reflects the person's needs for a combination
	and sequence of special interdisciplinary or generic care,
	treatment, or other lifelong or extended services that are
	individually planned and coordinated.
	(1-b)  "Executive commissioner" means the executive
	commissioner of the Health and Human Services Commission.
	(c)  Subchapter C, Chapter 112, Human Resources Code, is
	amended by adding Sections 112.0421 and 112.0431 to read as
	follows:
	Sec. 112.0421.  APPLICABILITY AND EXPIRATION OF CERTAIN
	PROVISIONS. (a)  Sections 112.041(a), 112.043, 112.045, 112.0451,
	112.0452, 112.0453, 112.0454, 112.046, 112.047, 112.0471, and
	112.0472 apply only until the date the executive commissioner
	begins to administer this subchapter and the commission assumes the
	duties and functions of the Office for the Prevention of
	Developmental Disabilities in accordance with Section 112.0431.
	(b)  On the date the provisions listed in Subsection (a)
	cease to apply, the executive committee under Section 112.045 and
	the board of advisors under Section 112.046 are abolished.
	(c)  This section and Sections 112.041(a), 112.043, 112.045,
	112.0451, 112.0452, 112.0453, 112.0454, 112.046, 112.047,
	112.0471, and 112.0472 expire on the last day of the period
	prescribed by Section 531.02001(1), Government Code.
	Sec. 112.0431.  ADMINISTRATION OF SUBCHAPTER; CERTAIN
	REFERENCES.  (a)  Notwithstanding any other provision in this
	subchapter, the executive commissioner shall administer this
	subchapter beginning on the date specified in the transition plan
	under Section 531.0204, Government Code, and the commission shall
	perform the duties and functions of the Office for the Prevention of
	Developmental Disabilities in the organizational form the
	executive commissioner determines appropriate.
	(b)  Following the assumption of the administration of this
	subchapter by the executive commissioner and the duties and
	functions by the commission in accordance with Subsection (a):
	(1)  a reference in this subchapter to the office, the
	Office for the Prevention of Developmental Disabilities, or the
	executive committee of that office means the commission, the
	division or other organizational unit within the commission
	designated by the executive commissioner, or the executive
	commissioner, as appropriate; and
	(2)  a reference in any other law to the Office for the
	Prevention of Developmental Disabilities has the meaning assigned
	by Subdivision (1).
	(d)  Section 112.044, Human Resources Code, is amended to
	read as follows:
	Sec. 112.044.  DUTIES. The office shall:
	(1)  educate the public and attempt to promote sound
	public policy regarding the prevention of developmental
	disabilities;
	(2)  identify, collect, and disseminate information
	and data concerning the causes, frequency of occurrence, and
	preventability of developmental disabilities;
	(3)  work with appropriate divisions within the
	commission, state agencies, and other entities to develop a
	coordinated long-range plan to effectively monitor and reduce the
	incidence or severity of developmental disabilities;
	(4)  promote and facilitate the identification,
	development, coordination, and delivery of needed prevention
	services;
	(5)  solicit, receive, and spend grants and donations
	from public, private, state, and federal sources;
	(6)  identify and encourage establishment of needed
	reporting systems to track the causes and frequencies of occurrence
	of developmental disabilities;
	(7)  develop, operate, and monitor programs created
	under Section 112.048 addressing [task forces to address] the
	prevention of specific targeted developmental disabilities;
	(8)  monitor and assess the effectiveness of divisions
	within the commission and of state agencies in preventing [to
	prevent] developmental disabilities;
	(9)  recommend the role each division within the
	commission and each state agency should have with regard to
	prevention of developmental disabilities;
	(10)  facilitate coordination of state agency
	prevention services and activities within the commission and among
	appropriate state agencies; and
	(11)  encourage cooperative, comprehensive, and
	complementary planning among public, private, and volunteer
	individuals and organizations engaged in prevention activities,
	providing prevention services, or conducting related research.
	(e)  Sections 112.048 and 112.049, Human Resources Code, are
	amended to read as follows:
	Sec. 112.048.  PREVENTION PROGRAMS FOR TARGETED
	DEVELOPMENTAL DISABILITIES [TASK FORCES]. (a)  The executive
	committee shall establish guidelines for:
	(1)  selecting targeted disabilities;
	(2)  assessing prevention services needs; and
	(3)  reviewing [task force] plans, budgets, and
	operations for programs under this section.
	(b)  The executive committee shall [create task forces made
	up of members of the board of advisors to] plan and implement
	prevention programs for specifically targeted developmental
	disabilities. [A task force operates as an administrative division
	of the office and can be abolished when it is ineffective or is no
	longer needed.]
	(c)  A program under this section [task force shall]:
	(1)  must include [develop] a plan designed to reduce
	the incidence of a specifically targeted disability;
	(2)  must include [prepare] a budget for implementing a
	plan;
	(3)  must be funded [arrange for funds] through:
	(A)  contracts for services from participating
	agencies;
	(B)  grants and gifts from private persons and
	consumer and advocacy organizations; and
	(C)  foundation support; and
	(4)  must be approved by [submit the plan, budget, and
	evidence of funding commitments to] the executive committee [for
	approval].
	[(d)     A task force shall regularly report to the executive
	committee, as required by the committee, the operation, progress,
	and results of the task force's prevention plan.]
	Sec. 112.049.  EVALUATION. (a)  The office shall identify
	or encourage the establishment of needed statistical bases for each
	targeted group against which the office can measure how effectively
	a [task force] program under Section 112.048 is reducing the
	frequency or severity of a targeted developmental disability.
	(b)  The executive committee shall regularly monitor and
	evaluate the results of [task force prevention] programs under
	Section 112.048.
	(f)  The heading to Section 112.050, Human Resources Code, is
	amended to read as follows:
	Sec. 112.050.  GRANTS AND OTHER FUNDING.
	(g)  Section 112.050, Human Resources Code, is amended by
	amending Subsection (c) and adding Subsection (d) to read as
	follows:
	(c)  The executive committee may not submit a legislative
	appropriation request for general revenue funds for purposes of
	this subchapter.
	(d)  In addition to funding under Subsection (a), the office
	may accept and solicit gifts, donations, and grants of money from
	public and private sources, including the federal government, local
	governments, and private entities, to assist in financing the
	duties and functions of the office.  The commission shall support
	office fund-raising efforts authorized by this subsection.  Funds
	raised under this subsection may only be spent in furtherance of a
	duty or function of the office or in accordance with rules
	applicable to the office.
	(h)  Section 112.051, Human Resources Code, is amended to
	read as follows:
	Sec. 112.051.  REPORTS TO LEGISLATURE. The office shall
	submit by February 1 of each odd-numbered year biennial reports to
	the legislature detailing findings of the office and the results of
	[task force prevention] programs under Section 112.048 and
	recommending improvements in the delivery of developmental
	disability prevention services.
	(i)  Notwithstanding the changes in law made by this section,
	the Office for the Prevention of Developmental Disabilities and any
	administrative entity of the Office for the Prevention of
	Developmental Disabilities shall continue to operate under the law
	as it existed before the effective date of this article, and that
	law is continued in effect for that purpose, until the executive
	commissioner of the Health and Human Services Commission begins
	administering Subchapter C, Chapter 112, Human Resources Code, as
	amended by this article, and the commission begins performing the
	duties and functions of the Office for the Prevention of
	Developmental Disabilities as required by Section 112.0431, Human
	Resources Code, as added by this article, on September 1, 2017.
	(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 September 1, 2017.
	SECTION 1.22.  (a)  The heading to Chapter 114, Human
	Resources Code, is amended to read as follows:
	CHAPTER 114.  [TEXAS COUNCIL ON] AUTISM AND PERVASIVE DEVELOPMENTAL
	DISORDERS
	(b)  Section 114.002, Human Resources Code, is amended by
	adding Subdivisions (1-a) and (3) to read as follows:
	(1-a)  "Commission" means the Health and Human Services
	Commission.
	(3)  "Executive commissioner" means the executive
	commissioner of the Health and Human Services Commission.
	(c)  Chapter 114, Human Resources Code, is amended by adding
	Sections 114.0021 and 114.0031 to read as follows:
	Sec. 114.0021.  APPLICABILITY AND EXPIRATION OF CERTAIN
	PROVISIONS. (a)  Sections 114.001, 114.003, 114.004, 114.005,
	114.007(a), and 114.010(d) apply only until the date the executive
	commissioner begins to administer this chapter and the commission
	assumes the duties and functions of the Texas Council on Autism and
	Pervasive Developmental Disorders in accordance with Section
	114.0031.
	(b)  On the date the provisions listed in Subsection (a)
	cease to apply, the Texas Council on Autism and Pervasive
	Developmental Disorders is abolished.
	(c)  This section and Sections 114.001, 114.003, 114.004,
	114.005, 114.007(a), and 114.010(d) expire on the last day of the
	period prescribed by Section 531.02001(1), Government Code.
	Sec. 114.0031.  ADMINISTRATION OF CHAPTER; CERTAIN
	REFERENCES.  (a)  Notwithstanding any other provision in this
	chapter, the executive commissioner shall administer this chapter
	beginning on the date specified in the transition plan under
	Section 531.0204, Government Code, and the commission shall perform
	the duties and functions of the Texas Council on Autism and
	Pervasive Developmental Disorders in the organizational form the
	executive commissioner determines appropriate.
	(b)  Following the assumption of the administration of this
	chapter by the executive commissioner and the duties and functions
	by the commission in accordance with Subsection (a):
	(1)  a reference in this chapter to the council, the
	Texas Council on Autism and Pervasive Developmental Disorders, or
	an agency represented on the council means the commission, the
	division or other organizational unit within the commission
	designated by the executive commissioner, or the executive
	commissioner, as appropriate; and
	(2)  a reference in any other law to the Texas Council
	on Autism and Pervasive Developmental Disorders has the meaning
	assigned by Subdivision (1).
	(d)  Section 114.006(b), Human Resources Code, is amended to
	read as follows:
	(b)  The council shall make written recommendations on the
	implementation of this chapter. If the council considers a
	recommendation that will affect another state [an] agency [not
	represented on the council], the council shall seek the advice and
	assistance of the agency before taking action on the
	recommendation. On approval of the governing body of the agency,
	each agency affected by a council recommendation shall implement
	the recommendation. If an agency does not have sufficient funds to
	implement a recommendation, the agency shall request funds for that
	purpose in its next budget proposal.
	(e)  Sections 114.007(b) and (c), Human Resources Code, are
	amended to read as follows:
	(b)  The council with [the advice of the advisory task force
	and] input from people with autism and other pervasive
	developmental disorders, their families, and related advocacy
	organizations shall address contemporary issues affecting services
	available to persons with autism or other pervasive developmental
	disorders in this state, including:
	(1)  successful intervention and treatment strategies,
	including transitioning;
	(2)  personnel preparation and continuing education;
	(3)  referral, screening, and evaluation services;
	(4)  day care, respite care, or residential care
	services;
	(5)  vocational and adult training programs;
	(6)  public awareness strategies;
	(7)  contemporary research;
	(8)  early identification strategies;
	(9)  family counseling and case management; and
	(10)  recommendations for monitoring autism service
	programs.
	(c)  The council with [the advice of the advisory task force
	and] input from people with autism and other pervasive
	developmental disorders, their families, and related advocacy
	organizations shall advise the legislature on legislation that is
	needed to develop further and to maintain a statewide system of
	quality intervention and treatment services for all persons with
	autism or other pervasive developmental disorders.  The council may
	develop and recommend legislation to the legislature or comment on
	pending legislation that affects those persons.
	(f)  Section 114.008, Human Resources Code, is amended to
	read as follows:
	Sec. 114.008.  REPORT. (a)  [The agencies represented on
	the council and the public members shall report to the council any
	requirements identified by the agency or person to provide
	additional or improved services to persons with autism or other
	pervasive developmental disorders.]  Not later than November 1 of
	each even-numbered year, the council shall:
	(1)  prepare a report summarizing requirements the
	council identifies and recommendations for providing additional or
	improved services to persons with autism or other pervasive
	developmental disorders; and
	(2)  deliver the report to the executive commissioner
	[of the Health and Human Services Commission], the governor, the
	lieutenant governor, and the speaker of the house of
	representatives [a report summarizing the recommendations].
	(b)  The council shall develop a strategy for establishing
	new programs to meet the requirements identified through the
	council's review and assessment and from input from [the task
	force,] people with autism and related pervasive developmental
	disorders, their families, and related advocacy organizations.
	(g)  Section 114.013, Human Resources Code, is amended to
	read as follows:
	Sec. 114.013.  COORDINATION OF RESOURCES FOR INDIVIDUALS
	WITH AUTISM SPECTRUM DISORDERS [RESOURCE CENTER]. (a)  The
	commission [Health and Human Services Commission] shall [establish
	and administer an autism spectrum disorders resource center to]
	coordinate resources for individuals with autism and other
	pervasive developmental disorders and their families.  In
	coordinating those resources [establishing and administering the
	center], the commission [Health and Human Services Commission]
	shall consult with [the council and coordinate with] appropriate
	state agencies[, including each agency represented on the council].
	(b)  As part of coordinating resources under Subsection (a),
	the commission [The Health and Human Services Commission] shall
	[design the center to]:
	(1)  collect and distribute information and research
	regarding autism and other pervasive developmental disorders;
	(2)  conduct training and development activities for
	persons who may interact with an individual with autism or another
	pervasive developmental disorder in the course of their employment,
	including school, medical, or law enforcement personnel;
	(3)  coordinate with local entities that provide
	services to an individual with autism or another pervasive
	developmental disorder; and
	(4)  provide support for families affected by autism
	and other pervasive developmental disorders.
	(h)  Notwithstanding the changes in law made by this section,
	the Texas Council on Autism and Pervasive Developmental Disorders
	and any administrative entity of the Texas Council on Autism and
	Pervasive Developmental Disorders shall continue to operate under
	the law as it existed before the effective date of this article, and
	that law is continued in effect for that purpose, until the
	executive commissioner of the Health and Human Services Commission
	begins administering Chapter 114, Human Resources Code, as amended
	by this article, and the commission begins performing the duties
	and functions of the Texas Council on Autism and Pervasive
	Developmental Disorders as required by Section 114.0031, Human
	Resources Code, as added by this article, on the date specified in
	the transition plan required under Section 531.0204, Government
	Code, as added by this article.
	(i)  The executive commissioner of the Health and Human
	Services Commission shall begin administering Chapter 114, Human
	Resources Code, as amended by this article, and the commission
	shall begin performing the duties and functions of the Texas
	Council on Autism and Pervasive Developmental Disorders as required
	by Section 114.0031, Human Resources Code, as added by this
	article, on the date specified in the transition plan required
	under Section 531.0204, Government Code, as added by this article.
	SECTION 1.23.  (a)  Effective September 1, 2016, the
	following provisions of the Government Code, including provisions
	amended by S.B. No. 219, Acts of the 84th Legislature, Regular
	Session, 2015, are repealed:
	(1)  Section 531.0235; and
	(2)  Subchapter K, Chapter 531.
	(b)  Effective September 1, 2016, the following provisions
	of the Health and Safety Code are repealed:
	(1)  Section 1001.021;
	(2)  Section 1001.022;
	(3)  Section 1001.023;
	(4)  Section 1001.024;
	(5)  Section 1001.025;
	(6)  Section 1001.026; and
	(7)  Section 1001.027.
	(c)  Effective September 1, 2016, the following provisions
	of the Human Resources Code, including provisions amended by S.B.
	219, Acts of the 84th Legislature, Regular Session, 2015, are
	repealed:
	(1)  Section 40.021;
	(2)  Section 40.022;
	(3)  Section 40.0226;
	(4)  Section 40.024;
	(5)  Section 40.025;
	(6)  Section 40.026;
	(7)  Section 117.002;
	(8)  Section 117.021;
	(9)  Section 117.022;
	(10)  Section 117.023;
	(11)  Section 117.024;
	(12)  Section 117.025;
	(13)  Section 117.026;
	(14)  Section 117.027;
	(15)  Section 117.028;
	(16)  Section 117.029;
	(17)  Section 117.030;
	(18)  Section 117.032;
	(19)  Section 117.051;
	(20)  Section 117.052;
	(21)  Section 117.053;
	(22)  Section 117.054;
	(23)  Section 117.055;
	(24)  Section 117.056;
	(25)  Section 117.072; and
	(26)  Subchapter B, Chapter 161.
	(d)  Effective September 1, 2017, Section 531.0055(i),
	Government Code, is repealed.
	(e)  Effective September 1, 2017, the following provisions
	of the Human Resources Code, including provisions amended by S.B.
	219, Acts of the 84th Legislature, Regular Session, 2015, are
	repealed:
	(1)  Section 161.002;
	(2)  Section 161.051;
	(3)  Section 161.052;
	(4)  Section 161.053;
	(5)  Section 161.054;
	(6)  Section 161.055;
	(7)  Section 161.056; and
	(8)  Section 161.072.
	(f)  Notwithstanding Subsections (a), (b), (c), (d), and (e)
	of this section, the implementation of a provision repealed by one
	of those subsections ceases on the date the responsible state
	agency or entity listed in Section 531.0202, Government Code, as
	added by this article, is abolished as provided by Subchapter A-1,
	Chapter 531, Government Code, as added by this article.
	ARTICLE 2.  HEALTH AND HUMAN SERVICES SYSTEM OPERATIONS
	SECTION 2.01.  Section 531.001, Government Code, is amended
	by adding Subdivision (3-a) to read as follows:
	(3-a)  "Health and human services system" means the
	system for providing or otherwise administering health and human
	services in this state by the commission, including through an
	office or division of the commission or through another entity
	under the administrative and operational control of the executive
	commissioner.
	SECTION 2.02.  Subchapter A, Chapter 531, Government Code,
	is amended by adding Section 531.00552 to read as follows:
	Sec. 531.00552.  CONSOLIDATED INTERNAL AUDIT PROGRAM.
	(a)  Notwithstanding Section 2102.005, the commission shall
	operate the internal audit program required under Chapter 2102 for
	the commission and each health and human services agency as a
	consolidated internal audit program.
	(b)  For purposes of this section, a reference in Chapter
	2102 to the administrator of a state agency with respect to a health
	and human services agency means the executive commissioner.
	SECTION 2.03.  Section 531.006, Government Code, as amended
	by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
	amended to read as follows:
	Sec. 531.006.  ELIGIBILITY FOR APPOINTMENT AS EXECUTIVE
	COMMISSIONER; EMPLOYEE RESTRICTIONS.  (a)  In this section, "Texas
	trade association" means a cooperative and voluntarily joined
	statewide association of business or professional competitors in
	this state designed to assist its members and its industry or
	profession in dealing with mutual business or professional problems
	and in promoting their common interest.
	(a-1)  A person may not be appointed [is not eligible for
	appointment] as executive commissioner, may not serve on the
	commission's executive council, and may not be a commission
	employee employed in a "bona fide executive, administrative, or
	professional capacity," as that phrase is used for purposes of
	establishing an exemption to the overtime provisions of the federal
	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
	(1)  the person is an officer, employee, or paid
	consultant of a Texas trade association in the field of health and
	human services; or
	(2)  the person's spouse is an [employee,] officer,
	manager, or paid consultant of a Texas trade association in the [a]
	field of health and human services [under the commission's
	jurisdiction].
	(b)  A person may not be appointed as executive commissioner
	or act as general counsel of the commission if the person [who] is
	required to register as a lobbyist under Chapter 305 because of the
	person's activities for compensation [in or] on behalf of a
	profession related to the operation of the commission [a field
	under the commission's jurisdiction may not serve as executive
	commissioner].
	(c)  A person may not be appointed [is not eligible for
	appointment] as executive commissioner if the person has a
	financial interest in a corporation, organization, or association
	under contract with:
	(1)  the commission or a health and human services
	agency [Department of State Health Services, if the contract
	involves mental health services];
	(2)  [the Department of Aging and Disability Services,
	if the contract involves intellectual and developmental disability
	services;
	[(3)]  a local mental health or intellectual and
	developmental disability authority; or
	(3) [(4)]  a community center.
	SECTION 2.04.  Section 531.0161, Government Code, is amended
	by adding Subsection (c) to read as follows:
	(c)  The commission shall:
	(1)  coordinate the implementation of the policy
	developed under Subsection (a);
	(2)  provide training as needed to implement the
	procedures for negotiated rulemaking or alternative dispute
	resolution; and
	(3)  collect data concerning the effectiveness of those
	procedures.
	SECTION 2.05.  (a)  Subchapter A, Chapter 531, Government
	Code, is amended by adding Section 531.0164 to read as follows:
	Sec. 531.0164.  HEALTH AND HUMAN SERVICES SYSTEM INTERNET
	WEBSITE COORDINATION. The commission shall establish a process to
	ensure Internet websites across the health and human services
	system are developed and maintained according to standard criteria
	for uniformity, efficiency, and technical capabilities.  Under the
	process, the commission shall:
	(1)  develop and maintain an inventory of all health
	and human services system Internet websites;
	(2)  on an ongoing basis, evaluate the inventory
	maintained under Subdivision (1) to:
	(A)  determine whether any of the Internet
	websites should be consolidated to improve public access to those
	websites' content; and
	(B)  ensure the Internet websites comply with the
	standard criteria; and
	(3)  if appropriate, consolidate the websites
	identified under Subdivision (2)(A).
	(b)  As soon as possible after the effective date of this
	article, the Health and Human Services Commission shall implement
	Section 531.0164, Government Code, as added by this article.
	(c)  As soon as possible after a function is transferred in
	accordance with Section 531.0201, 531.02011, or 531.02012,
	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
	related to the transferred function is updated, transferred, or
	consolidated to reflect the consolidation mandated by Subchapter
	A-1, Chapter 531, Government Code, as added by this Act.
	SECTION 2.06.  (a)  Subchapter A, Chapter 531, Government
	Code, is amended by adding Section 531.0171 to read as follows:
	Sec. 531.0171.  OFFICE OF OMBUDSMAN. (a)  The executive
	commissioner shall establish the commission's office of the
	ombudsman with authority and responsibility over the health and
	human services system in performing the following functions:
	(1)  providing dispute resolution services for the
	health and human services system;
	(2)  performing consumer protection and advocacy
	functions related to health and human services, including assisting
	a consumer or other interested person with:
	(A)  raising a matter within the health and human
	services system that the person feels is being ignored; and
	(B)  obtaining information regarding a filed
	complaint; and
	(3)  collecting inquiry and complaint data related to
	the health and human services system.
	(b)  The office of the ombudsman does not have the authority
	to provide a separate process for resolving complaints or appeals.
	(c)  The executive commissioner shall develop a standard
	process for tracking and reporting received inquiries and
	complaints within the health and human services system.  The
	process must provide for the centralized tracking of inquiries and
	complaints submitted to field, regional, or other local health and
	human services system offices.
	(d)  Using the process developed under Subsection (c), the
	office of the ombudsman shall collect inquiry and complaint data
	from all offices, agencies, divisions, and other entities within
	the health and human services system.  To assist with the collection
	of data under this subsection, the office may access any system or
	process for recording inquiries and complaints used or maintained
	within the health and human services system.
	(b)  As soon as possible after the effective date of this
	article, the executive commissioner of the Health and Human
	Services Commission shall implement Section 531.0171, Government
	Code, as added by this article.
	(c)  Notwithstanding any other provision of state law but
	except as provided by Subsection (d) of this section:
	(1)  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; and
	(2)  each office of an ombudsman established before the
	effective date of this section that performs ombudsman duties for
	the Department of Family and Protective Services or the Department
	of State Health Services is abolished on the date specified in the
	transition plan under Section 531.0204, Government Code, as added
	by this Act.
	(d)  The following offices of an ombudsman are not abolished
	under Subsection (c) of this section 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.
	(e)  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
	(d) of this section and shall publish that certification in the
	Texas Register not later than September 1, 2016.
	SECTION 2.07.  (a)  Subchapter A, Chapter 531, Government
	Code, is amended by adding Section 531.0192 to read as follows:
	Sec. 531.0192.  HEALTH AND HUMAN SERVICES SYSTEM HOTLINE AND
	CALL CENTER COORDINATION. (a)  The commission shall establish a
	process to ensure all health and human services system hotlines and
	call centers are necessary and appropriate.  Under the process, the
	commission shall:
	(1)  develop criteria for use in assessing whether a
	hotline or call center serves an ongoing purpose;
	(2)  develop and maintain an inventory of all system
	hotlines and call centers;
	(3)  use the inventory and assessment criteria
	developed under this subsection to periodically consolidate
	hotlines and call centers along appropriate functional lines;
	(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; and
	(5)  develop policies and standards for hotlines and
	call centers that include both quality and quantity performance
	measures and benchmarks and may include:
	(A)  client satisfaction with call resolution;
	(B)  accuracy of information provided;
	(C)  the percentage of received calls that are
	answered;
	(D)  the amount of time a caller spends on hold;
	and
	(E)  call abandonment rates.
	(a-1)  In developing policies and standards under Subsection
	(a)(5), the commission may allow varied performance measures and
	benchmarks for a hotline or call center based on factors affecting
	the capacity of the hotline or call center, including factors such
	as staffing levels and funding.
	(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 function is transferred in
	accordance with Section 531.0201 or 531.02011, 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 related to the
	transferred function is transferred or consolidated to reflect the
	consolidation mandated by Subchapter A-1, Chapter 531, Government
	Code, as added by this Act.
	SECTION 2.08.  (a)  Section 531.02111(b), Government Code,
	as amended by S.B. 219, Acts of the 84th Legislature, Regular
	Session, 2015, is amended to read as follows:
	(b)  The report must include:
	(1)  for each state agency described by Subsection (a):
	(A)  a description of each of the components of
	Medicaid operated by the agency; and
	(B)  an accounting of all funds related to
	Medicaid received and disbursed by the agency during the period
	covered by the report, including:
	(i)  the amount of any federal Medicaid
	funds allocated to the agency for the support of each of the
	Medicaid components operated by the agency;
	(ii)  the amount of any funds appropriated
	by the legislature to the agency for each of those components; and
	(iii)  the amount of Medicaid payments and
	related expenditures made by or in connection with each of those
	components; and
	(2)  for each Medicaid component identified in the
	report:
	(A)  the amount and source of funds or other
	revenue received by or made available to the agency for the
	component; [and]
	(B)  the amount spent on each type of service or
	benefit provided by or under the component;
	(C)  the amount spent on component operations,
	including eligibility determination, claims processing, and case
	management; and
	(D)  the amount spent on any other administrative
	costs [information required by Section 531.02112(b)].
	(b)  The following provisions, including provisions amended
	by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015,
	are repealed:
	(1)  Section 531.02112, Government Code;
	(2)  Sections 531.03131(f) and (g), Government Code;
	(3)  Section 2155.144(o), Government Code; and
	(4)  Section 22.0251(b), Human Resources Code.
	SECTION 2.09.  (a)  Subchapter B, Chapter 531, Government
	Code, is amended by adding Section 531.02118 to read as follows:
	Sec. 531.02118.  STREAMLINING MEDICAID PROVIDER ENROLLMENT
	AND CREDENTIALING PROCESSES. (a)  The commission shall streamline
	provider enrollment and credentialing processes under Medicaid.
	(b)  In streamlining the Medicaid provider enrollment
	process, the commission shall establish a centralized Internet
	portal through which providers may enroll in Medicaid.  The
	commission may use the Internet portal created under this
	subsection to create a single, consolidated Medicaid provider
	enrollment and credentialing process.
	(c)  In streamlining the Medicaid provider credentialing
	process under this section, the commission may designate a
	centralized credentialing entity and may:
	(1)  share information in the database established
	under Subchapter C, Chapter 32, Human Resources Code, with the
	centralized credentialing entity; and
	(2)  require all managed care organizations
	contracting with the commission to provide health care services to
	Medicaid recipients under a managed care plan issued by the
	organization to use the centralized credentialing entity as a hub
	for the collection and sharing of information.
	(d)  If cost-effective, the commission may contract with a
	third party to develop the single, consolidated Medicaid provider
	enrollment and credentialing process authorized under Subsection
	(b).
	(b)  The Health and Human Services Commission shall
	streamline provider enrollment and credentialing processes as
	required under Section 531.02118, Government Code, as added by this
	article, not later than September 1, 2016.
	SECTION 2.10.  (a)  Section 531.02141, Government Code, is
	amended by adding Subsections (c), (d), and (e) to read as follows:
	(c)  The commission shall regularly evaluate data submitted
	by managed care organizations that contract with the commission
	under Chapter 533 to determine whether:
	(1)  the data continues to serve a useful purpose; and
	(2)  additional data is needed to oversee contracts or
	evaluate the effectiveness of Medicaid.
	(d)  The commission shall collect Medicaid managed care data
	that effectively captures the quality of services received by
	Medicaid recipients.
	(e)  The commission shall develop a dashboard for agency
	leadership that is designed to assist leadership with overseeing
	Medicaid and comparing the performance of managed care
	organizations participating in Medicaid.  The dashboard must
	identify a concise number of important Medicaid indicators,
	including key data, performance measures, trends, and problems.
	(b)  Not later than March 1, 2016, the Health and Human
	Services Commission shall develop the dashboard required by Section
	531.02141(e), Government Code, as added by this article.
	SECTION 2.11.  Subchapter B, Chapter 531, Government Code,
	is amended by adding Section 531.02731 to read as follows:
	Sec. 531.02731.  REPORT OF INFORMATION RESOURCES MANAGER TO
	COMMISSION. 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.
	SECTION 2.12.  Section 531.102, Government Code, is amended
	by adding Subsections (p) and (q) to read as follows:
	(p)  In accordance with Section 533.015(b), the office shall
	consult with the executive commissioner regarding the adoption of
	rules defining the office's role in and jurisdiction over, and the
	frequency of, audits of managed care organizations participating in
	Medicaid that are conducted by the office and the commission.
	(q)  The office shall coordinate all audit and oversight
	activities, including the development of audit plans, risk
	assessments, and findings, with the commission to minimize the
	duplication of activities. In coordinating activities under this
	subsection, the office shall:
	(1)  on an annual basis, seek input from the commission
	and consider previous audits and onsite visits made by the
	commission for purposes of determining whether to audit a managed
	care organization participating in Medicaid; and
	(2)  request the results of any informal audit or
	onsite visit performed by the commission that could inform the
	office's risk assessment when determining whether to conduct, or
	the scope of, an audit of a managed care organization participating
	in Medicaid.
	SECTION 2.13.  (a)  Section 531.1031(a), Government Code,
	as amended by S.B. 219, Acts of the 84th Legislature, Regular
	Session, 2015, is amended to read as follows:
	(a)  In this section and Sections 531.1032, 531.1033, and
	531.1034:
	(1)  "Health care professional" means a person issued a
	license[, registration, or certification] to engage in a health
	care profession.
	(1-a)  "License" means a license, certificate,
	registration, permit, or other authorization that:
	(A)  is issued by a licensing authority; and
	(B)  must be obtained before a person may practice
	or engage in a particular business, occupation, or profession.
	(1-b)  "Licensing authority" means a department,
	commission, board, office, or other agency of the state that issues
	a license.
	(1-c)  "Office" means the commission's office of
	inspector general unless a different meaning is plainly required by
	the context in which the term appears.
	(2)  "Participating agency" means:
	(A)  the Medicaid fraud enforcement divisions of
	the office of the attorney general;
	(B)  each licensing authority [board or agency]
	with authority to issue a license to[, register, regulate, or
	certify] a health care professional or managed care organization
	that may participate in Medicaid; and
	(C)  the [commission's] office [of inspector
	general].
	(3)  "Provider" has the meaning assigned by Section
	531.1011(10)(A).
	(b)  Subchapter C, Chapter 531, Government Code, is amended
	by adding Sections 531.1032, 531.1033, and 531.1034 to read as
	follows:
	Sec. 531.1032.  OFFICE OF INSPECTOR GENERAL:  CRIMINAL
	HISTORY RECORD INFORMATION CHECK.  (a)  The office and each
	licensing authority that requires the submission of fingerprints
	for the purpose of conducting a criminal history record information
	check of a health care professional shall enter into a memorandum of
	understanding to ensure that only persons who are licensed and in
	good standing as health care professionals participate as providers
	in Medicaid. The memorandum under this section may be combined with
	a memorandum authorized under Section 531.1031(c-1) and must
	include a process by which:
	(1)  the office may confirm with a licensing authority
	that a health care professional is licensed and in good standing for
	purposes of determining eligibility to participate in Medicaid; and
	(2)  the licensing authority immediately notifies the
	office if:
	(A)  a provider's license has been revoked or
	suspended; or
	(B)  the licensing authority has taken
	disciplinary action against a provider.
	(b)  The office may not, for purposes of determining a health
	care professional's eligibility to participate in Medicaid as a
	provider, conduct a criminal history record information check of a
	health care professional who the office has confirmed under
	Subsection (a) is licensed and in good standing. This subsection
	does not prohibit the office from performing a criminal history
	record information check of a provider that is required or
	appropriate for other reasons, including for conducting an
	investigation of fraud, waste, or abuse.
	(c)  For purposes of determining eligibility to participate
	in Medicaid and subject to Subsection (d), the office, after
	seeking public input, shall establish and the executive
	commissioner by rule shall adopt guidelines for the evaluation of
	criminal history record information of providers and potential
	providers.  The guidelines must outline conduct, by provider type,
	that may be contained in criminal history record information that
	will result in exclusion of a person from Medicaid as a provider,
	taking into consideration:
	(1)  the extent to which the underlying conduct relates
	to the services provided under Medicaid;
	(2)  the degree to which the person would interact with
	Medicaid recipients as a provider; and
	(3)  any previous evidence that the person engaged in
	fraud, waste, or abuse under Medicaid.
	(d)  The guidelines adopted under Subsection (c) may not
	impose stricter standards for the eligibility of a person to
	participate in Medicaid than a licensing authority described by
	Subsection (a) requires for the person to engage in a health care
	profession without restriction in this state.
	(e)  The office and the commission shall use the guidelines
	adopted under Subsection (c) to determine whether a provider
	participating in Medicaid continues to be eligible to participate
	in Medicaid as a provider.
	(f)  The provider enrollment contractor, if applicable, and
	a managed care organization participating in Medicaid shall defer
	to the office regarding whether a person's criminal history record
	information precludes the person from participating in Medicaid as
	a provider.
	Sec. 531.1033.  MONITORING OF CERTAIN FEDERAL DATABASES.
	The office shall routinely check appropriate federal databases,
	including databases referenced in 42 C.F.R. Section 455.436, to
	ensure that a person who is excluded from participating in Medicaid
	or in the Medicare program by the federal government is not
	participating as a provider in Medicaid.
	Sec. 531.1034.  TIME TO DETERMINE PROVIDER ELIGIBILITY;
	PERFORMANCE METRICS.  (a)  Not later than the 10th day after the
	date the office receives the complete application of a health care
	professional seeking to participate in Medicaid, the office shall
	inform the commission or the health care professional, as
	appropriate, of the office's determination regarding whether the
	health care professional should be denied participation in Medicaid
	based on:
	(1)  information concerning the licensing status of the
	health care professional obtained as described by Section
	531.1032(a);
	(2)  information contained in the criminal history
	record information check that is evaluated in accordance with
	guidelines adopted under Section 531.1032(c);
	(3)  a review of federal databases under Section
	531.1033;
	(4)  the pendency of an open investigation by the
	office; or
	(5)  any other reason the office determines
	appropriate.
	(b)  Completion of an on-site visit of a health care
	professional during the period prescribed by Subsection (a) is not
	required.
	(c)  The office shall develop performance metrics to measure
	the length of time for conducting a determination described by
	Subsection (a) with respect to applications that are complete when
	submitted and all other applications.
	(c)  Not later than September 1, 2016, the executive
	commissioner of the Health and Human Services Commission shall
	adopt the guidelines required under Section 531.1032(c),
	Government Code, as added by this section.
	SECTION 2.14.  (a) Chapter 531, Government Code, is amended
	by adding Subchapter M to read as follows:
	SUBCHAPTER M.  COORDINATION OF QUALITY INITIATIVES
	Sec. 531.451.  OPERATIONAL PLAN TO COORDINATE INITIATIVES.
	(a)  The commission shall develop and implement a comprehensive,
	coordinated operational plan to ensure a consistent approach across
	the major quality initiatives of the health and human services
	system for improving the quality of health care.
	(b)  The operational plan developed under this section must
	include broad goals for the improvement of the quality of health
	care in this state, including health care services provided through
	Medicaid.
	Sec. 531.452.  REVISION OF MAJOR INITIATIVES.
	Notwithstanding any other law, the commission shall revise major
	quality initiatives of the health and human services system in
	accordance with the operational plan and health care quality
	improvement goals developed under Section 531.451.  To the extent
	it is possible, the commission shall ensure that outcome measure
	data is collected and reported consistently across all major
	quality initiatives to improve the evaluation of the initiatives'
	statewide impact.
	Sec. 531.453.  INCENTIVES FOR INITIATIVE COORDINATION. The
	commission shall consider and, if the commission determines it
	appropriate, develop incentives that promote coordination among
	the various major quality initiatives in accordance with this
	subchapter, including projects and initiatives approved under the
	Texas Health Care Transformation and Quality Improvement Program
	waiver issued under Section 1115 of the federal Social Security Act
	(42 U.S.C. Section 1315).
	Sec. 531.454.  RENEWAL OF FEDERAL AUTHORIZATION FOR MEDICAID
	REFORM.  (a)  When the commission seeks to renew the Texas Health
	Care Transformation and Quality Improvement Program waiver issued
	under Section 1115 of the federal Social Security Act (42 U.S.C.
	Section 1315), the commission shall, to the extent permitted under
	federal law:
	(1)  seek to reduce the number of approved project
	options that may be funded under the waiver using delivery system
	reform incentive payments to include only those projects that are:
	(A)  the most critical for improving the quality
	of health care, including behavioral health services; and
	(B)  consistent with the operational plan and
	health care quality improvement goals developed under Section
	531.451; and
	(2)  allow a delivery system reform incentive payment
	project that, as a result of Subdivision (1), is no longer an option
	under the waiver, to continue operating as long as the project meets
	funding requirements and outcome objectives.
	(b)  In reducing the number of approved project options under
	Subsection (a), the commission shall take into consideration the
	diversity of local and regional health care needs in this state.
	(c)  This section expires September 1, 2017.
	(b)  As soon as possible after the effective date of this
	article, the Health and Human Services Commission shall develop the
	operational plan and perform the other actions corresponding with
	the operational plan as required under Subchapter M, Chapter 531,
	Government Code, as added by this article.
	SECTION 2.15.  Section 533.00255(a), Government Code, is
	amended to read as follows:
	(a)  In this section, "behavioral health services" means
	mental health and substance abuse disorder services[, other than
	those provided through the NorthSTAR demonstration project].
	SECTION 2.16.  Subchapter A, Chapter 533, Government Code,
	is amended by adding Section 533.002551 to read as follows:
	Sec. 533.002551.  MONITORING OF COMPLIANCE WITH BEHAVIORAL
	HEALTH INTEGRATION. (a)  In this section, "behavioral health
	services" has the meaning assigned by Section 533.00255.
	(b)  In monitoring contracts the commission enters into with
	managed care organizations under this chapter, the commission
	shall:
	(1)  ensure managed care organizations fully integrate
	behavioral health services into a recipient's primary care
	coordination;
	(2)  use performance audits and other oversight tools
	to improve monitoring of the provision and coordination of
	behavioral health services; and
	(3)  establish performance measures that may be used to
	determine the effectiveness of the integration of behavioral health
	services.
	(c)  In monitoring a managed care organization's compliance
	with behavioral health services integration requirements under
	this section, the commission shall give particular attention to a
	managed care organization that provides behavioral health services
	through a contract with a third party.
	SECTION 2.17.  Subchapter A, Chapter 533, Government Code,
	is amended by adding Section 533.0061 to read as follows:
	Sec. 533.0061.  FREQUENCY OF PROVIDER CREDENTIALING. A
	managed care organization that contracts with the commission to
	provide health care services to Medicaid recipients under a managed
	care plan issued by the organization shall formally recredential a
	physician or other provider with the frequency required by the
	single, consolidated Medicaid provider enrollment and
	credentialing process, if that process is created under Section
	531.02118.  The required frequency of recredentialing may be less
	frequent than once in any three-year period, notwithstanding any
	other law.
	SECTION 2.18.  Subchapter A, Chapter 533, Government Code,
	is amended by adding Section 533.0077 to read as follows:
	Sec. 533.0077.  STATEWIDE EFFORT TO PROMOTE MAINTENANCE OF
	ELIGIBILITY. (a)  The commission shall develop and implement a
	statewide effort to assist recipients who satisfy Medicaid
	eligibility requirements and who receive Medicaid services through
	a managed care organization with maintaining eligibility and
	avoiding lapses in coverage under Medicaid.
	(b)  As part of its effort under Subsection (a), the
	commission shall:
	(1)  require each managed care organization providing
	health care services to recipients to assist those recipients with
	maintaining eligibility;
	(2)  if the commission determines it is cost-effective,
	develop specific strategies for assisting recipients who receive
	Supplemental Security Income (SSI) benefits under 42 U.S.C. Section
	1381 et seq. with maintaining eligibility; and
	(3)  ensure information that is relevant to a
	recipient's eligibility status is provided to the managed care
	organization through which the recipient receives Medicaid
	services.
	SECTION 2.19.  (a)  Section 533.015, Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	Sec. 533.015.  COORDINATION OF EXTERNAL OVERSIGHT
	ACTIVITIES. (a)  To the extent possible, the commission shall
	coordinate all external oversight activities to minimize
	duplication of oversight of managed care plans under Medicaid and
	disruption of operations under those plans.
	(b)  The executive commissioner, after consulting with the
	commission's office of inspector general, shall, by rule, define
	the commission's and office's roles in and jurisdiction over, and
	frequency of, audits of managed care organizations participating in
	Medicaid that are conducted by the commission and the commission's
	office of inspector general.
	(c)  In accordance with Section 531.102(q), the commission
	shall share with the commission's office of inspector general, at
	the request of the office, the results of any informal audit or
	onsite visit that could inform that office's risk assessment when
	determining whether to conduct, or the scope of, an audit of a
	managed care organization participating in Medicaid.
	(b)  Not later than September 1, 2016, the executive
	commissioner of the Health and Human Services Commission shall
	adopt rules required by Section 533.015(b), Government Code, as
	added by this article.
	SECTION 2.20.  Section 533.041(a), Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(a)  The executive commissioner shall appoint a state
	Medicaid managed care advisory committee.  The advisory committee
	consists of representatives of:
	(1)  hospitals;
	(2)  managed care organizations and participating
	health care providers;
	(3)  primary care providers and specialty care
	providers;
	(4)  state agencies;
	(5)  low-income recipients or consumer advocates
	representing low-income recipients;
	(6)  recipients with disabilities, including
	recipients with an intellectual or developmental disability or with
	physical disabilities, or consumer advocates representing those
	recipients;
	(7)  parents of children who are recipients;
	(8)  rural providers;
	(9)  advocates for children with special health care
	needs;
	(10)  pediatric health care providers, including
	specialty providers;
	(11)  long-term services and supports providers,
	including nursing facility providers and direct service workers;
	(12)  obstetrical care providers;
	(13)  community-based organizations serving low-income
	children and their families;
	(14)  community-based organizations engaged in
	perinatal services and outreach;
	(15)  recipients who are 65 years of age or older;
	(16)  recipients with mental illness;
	(17)  nonphysician mental health providers
	participating in the Medicaid managed care program; and
	(18)  entities with responsibilities for the delivery
	of long-term services and supports or other Medicaid service
	delivery, including:
	(A)  independent living centers;
	(B)  area agencies on aging;
	(C)  aging and disability resource centers
	established under the Aging and Disability Resource Center
	initiative funded in part by the federal Administration on Aging
	and the Centers for Medicare and Medicaid Services; and
	(D)  community mental health and intellectual
	disability centers[; and
	[(E)     the NorthSTAR Behavioral Health Program
	provided under Chapter 534, Health and Safety Code].
	SECTION 2.21.  (a)  Chapter 533, Government Code, is amended
	by adding Subchapter E to read as follows:
	SUBCHAPTER E.  PILOT PROGRAM TO INCREASE INCENTIVE-BASED PROVIDER
	PAYMENTS
	Sec. 533.081.  DEFINITION.  In this subchapter, "pilot
	program" means the pilot program to increase incentive-based
	provider payments established under Section 533.082.
	Sec. 533.082.  PILOT PROGRAM TO INCREASE INCENTIVE-BASED
	PROVIDER PAYMENTS. 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 commission and the managed care
	organizations providing those services in at least one managed care
	service delivery area shall work with health care providers and
	professional associations composed of health care providers to
	develop common payment incentive methodologies for the pilot
	program that:
	(1)  are structured to reward appropriate, quality
	care;
	(2)  align outcomes of the pilot program with the
	commission's Medicaid managed care quality-based payment programs;
	(3)  are not intended to supplant existing
	incentive-based contracts between the managed care organizations
	and providers;
	(4)  are structured to encourage formal arrangements
	among providers to work together to provide better patient care;
	(5)  are adopted by all managed care organizations
	providing services under the Medicaid managed care program through
	the same managed care service delivery model so that similar
	incentive methodologies apply to all participating providers under
	the same model; and
	(6)  are voluntarily agreed to by the participating
	providers.
	Sec. 533.083.  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 goals and
	outcome measures are most appropriate for statewide implementation
	and the services that can be provided using those goals and outcome
	measures; and
	(2)  require that a managed care organization that has
	contracted with the commission to provide health care services to
	recipients implement the payment goals and outcome measures
	identified under Subdivision (1).
	Sec. 533.084.  EXPIRATION. Sections 533.081 and 533.082 and
	this section expire September 1, 2018.
	(b)  As soon as possible after the effective date of this
	article, the Health and Human Services 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 goals
	and outcome measures identified by the commission under Section
	533.083, 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 goals and outcome measures
	identified by the commission under Section 533.083, Government
	Code, as added by this article. To the extent of a conflict between
	that section and a provision of a contract with a managed care
	organization entered into before September 1, 2018, the contract
	provision prevails.
	SECTION 2.22.  Section 1001.080(b), Health and Safety Code,
	is amended to read as follows:
	(b)  This section applies to health or mental health
	benefits, services, or assistance provided by the department that
	the department anticipates will be impacted by a health insurance
	exchange as defined by Section 1001.081(a), including:
	(1)  community primary health care services provided
	under Chapter 31;
	(2)  women's and children's health services provided
	under Chapter 32;
	(3)  services for children with special health care
	needs provided under Chapter 35;
	(4)  epilepsy program assistance provided under
	Chapter 40;
	(5)  hemophilia program assistance provided under
	Chapter 41;
	(6)  kidney health care services provided under Chapter
	42;
	(7)  human immunodeficiency virus infection and
	sexually transmitted disease prevention programs and services
	provided under Chapter 85;
	(8)  immunization programs provided under Chapter 161;
	(9)  programs and services provided by the Rio Grande
	State Center under Chapter 252;
	(10)  mental health services for adults provided under
	Chapter 534;
	(11)  mental health services for children provided
	under Chapter 534;
	(12)  [the NorthSTAR Behavioral Health Program
	provided under Chapter 534;
	[(13)]  programs and services provided by community
	mental health hospitals under Chapter 552;
	(13) [(14)]  programs and services provided by state
	mental health hospitals under Chapter 552; and
	(14) [(15)]  any other health or mental health program
	or service designated by the department.
	SECTION 2.23.  Section 1001.201(2), Health and Safety Code,
	as added by Chapter 1306 (H.B. 3793), Acts of the 83rd Legislature,
	Regular Session, 2013, is amended to read as follows:
	(2)  "Local mental health authority" has the meaning
	assigned by Section 531.002 [and includes the local behavioral
	health authority for the NorthSTAR Behavioral Health Program].
	ARTICLE 3.  HEALTH AND HUMAN SERVICES SYSTEM ADVISORY ENTITIES
	SECTION 3.01.  Section 262.353(d), Family Code, is amended
	to read as follows:
	(d)  Not later than September 30, 2014, the department and
	the Department of State Health Services shall file a report with the
	legislature [and the Council on Children and Families] on the
	results of the study required by Subsection (a).  The report must
	include:
	(1)  each option to prevent relinquishment of parental
	custody that was considered during the study;
	(2)  each option recommended for implementation, if
	any;
	(3)  each option that is implemented using existing
	resources;
	(4)  any policy or statutory change needed to implement
	a recommended option;
	(5)  the fiscal impact of implementing each option, if
	any;
	(6)  the estimated number of children and families that
	may be affected by the implementation of each option; and
	(7)  any other significant information relating to the
	study.
	SECTION 3.02.  (a)  Section 531.012, Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	Sec. 531.012.  ADVISORY COMMITTEES. (a)  The executive
	commissioner shall establish and maintain [may appoint] advisory
	committees to consider issues and solicit public input across all
	major areas of the health and human services system, including
	relating to the following issues:
	(1)  Medicaid and other social services programs;
	(2)  managed care under Medicaid and the child health
	plan program;
	(3)  health care quality initiatives;
	(4)  aging;
	(5)  persons with disabilities, including persons with
	autism;
	(6)  rehabilitation, including for persons with brain
	injuries;
	(7)  children;
	(8)  public health;
	(9)  behavioral health;
	(10)  regulatory matters;
	(11)  protective services; and
	(12)  prevention efforts.
	(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:
	(1)  report any recommendations to the executive
	commissioner at a meeting of the Health and Human Services
	Commission Executive Council established under Section 531.0051;
	and
	(2)  submit a written report to the legislature of any
	policy recommendations made to the executive commissioner under
	Subdivision (1) [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.  This
	subsection takes effect September 1, 2015.
	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 531.02441(j), Government Code, is
	amended to read as follows:
	(j)  The task force is abolished and this [This] section
	expires September 1, 2017.
	SECTION 3.06.  Section 531.051(c), Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(c)  In adopting rules for the consumer direction models, the
	executive commissioner shall:
	(1)  [with assistance from the work group established
	under Section 531.052,] determine which services are appropriate
	and suitable for delivery through consumer direction;
	(2)  ensure that each consumer direction model is
	designed to comply with applicable federal and state laws;
	(3)  maintain procedures to ensure that a potential
	consumer or the consumer's legally authorized representative has
	adequate and appropriate information, including the
	responsibilities of a consumer or representative under each service
	delivery option, to make an informed choice among the types of
	consumer direction models;
	(4)  require each consumer or the consumer's legally
	authorized representative to sign a statement acknowledging
	receipt of the information required by Subdivision (3);
	(5)  maintain procedures to monitor delivery of
	services through consumer direction to ensure:
	(A)  adherence to existing applicable program
	standards;
	(B)  appropriate use of funds; and
	(C)  consumer satisfaction with the delivery of
	services;
	(6)  ensure that authorized program services that are
	not being delivered to a consumer through consumer direction are
	provided by a provider agency chosen by the consumer or the
	consumer's legally authorized representative; and
	(7)  [work in conjunction with the work group
	established under Section 531.052 to] set a timetable to complete
	the implementation of the consumer direction models.
	SECTION 3.07.  Section 531.067, Government Code, as amended
	by S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
	amended to read as follows:
	Sec. 531.067.  PROGRAM TO IMPROVE AND MONITOR CERTAIN
	OUTCOMES OF RECIPIENTS UNDER CHILD HEALTH PLAN PROGRAM AND MEDICAID
	[PUBLIC ASSISTANCE HEALTH BENEFIT REVIEW AND DESIGN COMMITTEE].
	The [(a)     The commission shall appoint a Public Assistance Health
	Benefit Review and Design Committee. The committee consists of
	nine representatives of health care providers participating in
	Medicaid or the child health plan program, or both. The committee
	membership must include at least three representatives from each
	program.
	[(b)     The executive commissioner shall designate one member
	to serve as presiding officer for a term of two years.
	[(c)     The committee shall meet at the call of the presiding
	officer.
	[(d)     The committee shall review and provide recommendations
	to the commission regarding health benefits and coverages provided
	under Medicaid, the child health plan program, and any other
	income-based health care program administered by the commission or
	a health and human services agency. In performing its duties under
	this subsection, the committee must:
	[(1)     review benefits provided under each of the
	programs; and
	[(2)     review procedures for addressing high
	utilization of benefits by recipients.
	[(e)     The commission shall provide administrative support
	and resources as necessary for the committee to perform its duties
	under this section.
	[(f)  Section 2110.008 does not apply to the committee.
	[(g)  In performing the duties under this section, the]
	commission may design and implement a program to improve and
	monitor clinical and functional outcomes of a recipient of services
	under Medicaid or the state child health plan program. The program
	may use financial, clinical, and other criteria based on pharmacy,
	medical services, and other claims data related to Medicaid or the
	child health plan program. [The commission must report to the
	committee on the fiscal impact, including any savings associated
	with the strategies utilized under this section.]
	SECTION 3.08.  (a)  Section 531.0691, Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is redesignated as Section 531.0735, Government Code, to read
	as follows:
	Sec. 531.0735 [531.0691].  MEDICAID DRUG UTILIZATION REVIEW
	PROGRAM:  DRUG USE REVIEWS AND ANNUAL REPORT. (a)  In this section:
	(1)  "Medicaid Drug Utilization Review Program" means
	the program operated by the vendor drug program to improve the
	quality of pharmaceutical care under Medicaid.
	(2)  "Prospective drug use review" means the review of
	a patient's drug therapy and prescription drug order or medication
	order before dispensing or distributing a drug to the patient.
	(3)  "Retrospective drug use review" means the review
	of prescription drug claims data to identify patterns of
	prescribing.
	(b)  The commission shall provide for an increase in the
	number and types of retrospective drug use reviews performed each
	year under the Medicaid Drug Utilization Review Program, in
	comparison to the number and types of reviews performed in the state
	fiscal year ending August 31, 2009.
	(c)  In determining the number and types of drug use reviews
	to be performed, the commission shall:
	(1)  allow for the repeat of retrospective drug use
	reviews that address ongoing drug therapy problems and that, in
	previous years, improved client outcomes and reduced Medicaid
	spending;
	(2)  consider implementing disease-specific
	retrospective drug use reviews that address ongoing drug therapy
	problems in this state and that reduced Medicaid prescription drug
	use expenditures in other states; and
	(3)  regularly examine Medicaid prescription drug
	claims data to identify occurrences of potential drug therapy
	problems that may be addressed by repeating successful
	retrospective drug use reviews performed in this state and other
	states.
	(d)  In addition to any other information required by federal
	law, the commission shall include the following information in the
	annual report regarding the Medicaid Drug Utilization Review
	Program:
	(1)  a detailed description of the program's
	activities; and
	(2)  estimates of cost savings anticipated to result
	from the program's performance of prospective and retrospective
	drug use reviews.
	(e)  The cost-saving estimates for prospective drug use
	reviews under Subsection (d) must include savings attributed to
	drug use reviews performed through the vendor drug program's
	electronic claims processing system and clinical edits screened
	through the prior authorization system implemented under Section
	531.073.
	(f)  The commission shall post the annual report regarding
	the Medicaid Drug Utilization Review Program on the commission's
	website.
	(b)  Subchapter B, Chapter 531, Government Code, is amended
	by adding Section 531.0736 to read as follows:
	Sec. 531.0736.  DRUG UTILIZATION REVIEW BOARD.  (a)  In this
	section, "board" means the Drug Utilization Review Board.
	(b)  In addition to performing any other duties required by
	federal law, the board shall:
	(1)  develop and submit to the commission
	recommendations for preferred drug lists adopted by the commission
	under Section 531.072;
	(2)  suggest to the commission restrictions or clinical
	edits on prescription drugs;
	(3)  recommend to the commission educational
	interventions for Medicaid providers;
	(4)  review drug utilization across Medicaid; and
	(5)  perform other duties that may be specified by law
	and otherwise make recommendations to the commission.
	(c)  The executive commissioner shall determine the
	composition of the board, which must:
	(1)  comply with applicable federal law, including 42
	C.F.R. Section 456.716;
	(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;
	(3)  include at least 17 physicians and pharmacists
	who:
	(A)  provide services across the entire
	population of Medicaid recipients and represent different
	specialties, including at least one of each of the following types
	of physicians:
	(i)  a pediatrician;
	(ii)  a primary care physician;
	(iii)  an obstetrician and gynecologist;
	(iv)  a child and adolescent psychiatrist;
	and
	(v)  an adult psychiatrist; and
	(B)  have experience in either developing or
	practicing under a preferred drug list; and
	(4)  include a consumer advocate who represents
	Medicaid recipients.
	(c-1)  The executive commissioner by rule shall develop and
	implement a process by which a person may apply to become a member
	of the board and shall post the application and information
	regarding the application process on the commission's Internet
	website.
	(d)  Members appointed under Subsection (c)(2) may attend
	quarterly and other regularly scheduled meetings, but may not:
	(1)  attend executive sessions; or
	(2)  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.  The presiding officer must
	be a physician.
	(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
	adoption of or changes to drug use criteria, or the adoption of
	prior authorization or drug utilization review proposals.  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 a range of clinically effective, safe, cost-effective, and
	medically appropriate drug therapies for the diverse segments of
	the Medicaid population, 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 voting 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
	development of the preferred drug lists or in the administration of
	the Medicaid Drug Utilization Review Program.
	(b)  The executive commissioner may implement this section
	by adopting rules that identify prohibited relationships and
	conflicts or requiring the board to develop a conflict-of-interest
	policy that applies to the board.
	(d)  Sections 531.072(c) and (e), Government Code, are
	amended to read as follows:
	(c)  In making a decision regarding the placement of a drug
	on each of the preferred drug lists, the commission shall consider:
	(1)  the recommendations of the Drug Utilization Review
	Board [Pharmaceutical and Therapeutics Committee established]
	under Section 531.0736 [531.074];
	(2)  the clinical efficacy of the drug;
	(3)  the price of competing drugs after deducting any
	federal and state rebate amounts; and
	(4)  program benefit offerings solely or in conjunction
	with rebates and other pricing information.
	(e)  In this subsection, "labeler" and "manufacturer" have
	the meanings assigned by Section 531.070. The commission shall
	ensure that:
	(1)  a manufacturer or labeler may submit written
	evidence supporting the inclusion of a drug on the preferred drug
	lists before a supplemental agreement is reached with the
	commission; and
	(2)  any drug that has been approved or has had any of
	its particular uses approved by the United States Food and Drug
	Administration under a priority review classification will be
	reviewed by the Drug Utilization Review Board [Pharmaceutical and
	Therapeutics Committee] at the next regularly scheduled meeting of
	the board [committee]. On receiving notice from a manufacturer or
	labeler of the availability of a new product, the commission, to the
	extent possible, shall schedule a review for the product at the next
	regularly scheduled meeting of the board [committee].
	(e)  Section 531.073(b), Government Code, is amended to read
	as follows:
	(b)  The commission shall establish procedures for the prior
	authorization requirement under the Medicaid vendor drug program to
	ensure that the requirements of 42 U.S.C. Section 1396r-8(d)(5) and
	its subsequent amendments are met. Specifically, the procedures
	must ensure that:
	(1)  a prior authorization requirement is not imposed
	for a drug before the drug has been considered at a meeting of the
	Drug Utilization Review Board [Pharmaceutical and Therapeutics
	Committee established] under Section 531.0736 [531.074];
	(2)  there will be a response to a request for prior
	authorization by telephone or other telecommunications device
	within 24 hours after receipt of a request for prior authorization;
	and
	(3)  a 72-hour supply of the drug prescribed will be
	provided in an emergency or if the commission does not provide a
	response within the time required by Subdivision (2).
	(f)  Section 531.0741, Government Code, is amended to read as
	follows:
	Sec. 531.0741.  PUBLICATION OF INFORMATION REGARDING
	COMMISSION DECISIONS ON PREFERRED DRUG LIST PLACEMENT. The
	commission shall publish on the commission's Internet website any
	decisions on preferred drug list placement, including:
	(1)  a list of drugs reviewed and the commission's
	decision for or against placement on a preferred drug list of each
	drug reviewed;
	(2)  for each recommendation, whether a supplemental
	rebate agreement or a program benefit agreement was reached under
	Section 531.070; and
	(3)  the rationale for any departure from a
	recommendation of the Drug Utilization Review Board
	[pharmaceutical and therapeutics committee established] under
	Section 531.0736 [531.074].
	(g)  Section 531.074, Government Code, as amended by S.B.
	219, Acts of the 84th Legislature, Regular Session, 2015, is
	repealed.
	(h)  The term of a member serving on the Medicaid Drug
	Utilization Review Board on September 1, 2015, expires on October
	31, 2015. Not later than November 1, 2015, the executive
	commissioner of the Health and Human Services Commission shall
	appoint the initial members to the Drug Utilization Review Board in
	accordance with Section 531.0736, Government Code, as added by this
	article, for terms beginning November 1, 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 November 1, 2017, and the
	remaining members to serve for terms expiring November 1, 2019.
	(i)  Not later than October 1, 2015, and before making
	initial appointments to the Drug Utilization Review Board as
	provided by Subsection (h) of this section, the executive
	commissioner of the Health and Human Services Commission shall
	adopt and implement the application process required under Section
	531.0736(c-1), Government Code, as added by this article.
	(j)  Not later than January 1, 2016, and except as provided
	by Subsection (i) of this section, the executive commissioner of
	the Health and Human Services Commission shall adopt or amend rules
	as necessary to reflect the changes in law made to the Drug
	Utilization Review Board under Section 531.0736, Government Code,
	as added by this article, including rules that reflect the changes
	to the board's functions and composition.
	SECTION 3.09.  The heading to Subchapter D, Chapter 531,
	Government Code, is amended to read as follows:
	SUBCHAPTER D.  PLAN TO SUPPORT GUARDIANSHIPS [GUARDIANSHIP ADVISORY
	BOARD]
	SECTION 3.10.  Section 531.124, Government Code, is amended
	to read as follows:
	Sec. 531.124.  COMMISSION DUTIES.  The [(a)     With the advice
	of the advisory board, the] commission shall develop and, subject
	to appropriations, implement a plan to:
	(1)  ensure that each incapacitated individual in this
	state who needs a guardianship or another less restrictive type of
	assistance to make decisions concerning the incapacitated
	individual's own welfare and financial affairs receives that
	assistance; and
	(2)  foster the establishment and growth of local
	volunteer guardianship programs.
	[(b)     The advisory board shall biennially review and comment
	on the minimum standards adopted under Section 111.041 and the plan
	implemented under Subsection (a) and shall include its conclusions
	in the report submitted under Section 531.1235.]
	SECTION 3.11.  Section 531.907(a), Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(a)  Based on [the recommendations of the advisory committee
	established under Section 531.904 and] feedback provided by
	interested parties, the commission in stage two of implementing the
	health information exchange system may expand the system by:
	(1)  providing an electronic health record for each
	child enrolled in the child health plan program;
	(2)  including state laboratory results information in
	an electronic health record, including the results of newborn
	screenings and tests conducted under the Texas Health Steps
	program, based on the system developed for the health passport
	under Section 266.006, Family Code;
	(3)  improving data-gathering capabilities for an
	electronic health record so that the record may include basic
	health and clinical information in addition to available claims
	information, as determined by the executive commissioner;
	(4)  using evidence-based technology tools to create a
	unique health profile to alert health care providers regarding the
	need for additional care, education, counseling, or health
	management activities for specific patients; and
	(5)  continuing to enhance the electronic health record
	created for each Medicaid recipient as technology becomes available
	and interoperability capabilities improve.
	SECTION 3.12.  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 3.13.  Section 533.00251(c), Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(c)  Subject to Section 533.0025 and notwithstanding any
	other law, the commission[, in consultation with the advisory
	committee,] shall provide benefits under Medicaid to recipients who
	reside in nursing facilities through the STAR + PLUS Medicaid
	managed care program.  In implementing this subsection, the
	commission shall ensure:
	(1)  that the commission is responsible for setting the
	minimum reimbursement rate paid to a nursing facility under the
	managed care program, including the staff rate enhancement paid to
	a nursing facility that qualifies for the enhancement;
	(2)  that a nursing facility is paid not later than the
	10th day after the date the facility submits a clean claim;
	(3)  the appropriate utilization of services
	consistent with criteria established by the commission;
	(4)  a reduction in the incidence of potentially
	preventable events and unnecessary institutionalizations;
	(5)  that a managed care organization providing
	services under the managed care program provides discharge
	planning, transitional care, and other education programs to
	physicians and hospitals regarding all available long-term care
	settings;
	(6)  that a managed care organization providing
	services under the managed care program:
	(A)  assists in collecting applied income from
	recipients; and
	(B)  provides payment incentives to nursing
	facility providers that reward reductions in preventable acute care
	costs and encourage transformative efforts in the delivery of
	nursing facility services, including efforts to promote a
	resident-centered care culture through facility design and
	services provided;
	(7)  the establishment of a portal that is in
	compliance with state and federal regulations, including standard
	coding requirements, through which nursing facility providers
	participating in the STAR + PLUS Medicaid managed care program may
	submit claims to any participating managed care organization;
	(8)  that rules and procedures relating to the
	certification and decertification of nursing facility beds under
	Medicaid are not affected; and
	(9)  that a managed care organization providing
	services under the managed care program, to the greatest extent
	possible, offers nursing facility providers access to:
	(A)  acute care professionals; and
	(B)  telemedicine, when feasible and in
	accordance with state law, including rules adopted by the Texas
	Medical Board.
	SECTION 3.14.  Section 533.00253, Government Code, is
	amended by amending Subsection (b), as amended by S.B. 219, Acts of
	the 84th Legislature, Regular Session, 2015, and Subsection (f) to
	read as follows:
	(b)  Subject to Section 533.0025, the commission shall, in
	consultation with the [advisory committee and the] Children's
	Policy Council established under Section 22.035, Human Resources
	Code, establish a mandatory STAR Kids capitated managed care
	program tailored to provide Medicaid benefits to children with
	disabilities.  The managed care program developed under this
	section must:
	(1)  provide Medicaid benefits that are customized to
	meet the health care needs of recipients under the program through a
	defined system of care;
	(2)  better coordinate care of recipients under the
	program;
	(3)  improve the health outcomes of recipients;
	(4)  improve recipients' access to health care
	services;
	(5)  achieve cost containment and cost efficiency;
	(6)  reduce the administrative complexity of
	delivering Medicaid benefits;
	(7)  reduce the incidence of unnecessary
	institutionalizations and potentially preventable events by
	ensuring the availability of appropriate services and care
	management;
	(8)  require a health home; and
	(9)  coordinate and collaborate with long-term care
	service providers and long-term care management providers, if
	recipients are receiving long-term services and supports outside of
	the managed care organization.
	(f)  The commission shall seek ongoing input from the
	Children's Policy Council regarding the establishment and
	implementation of the STAR Kids managed care program. This
	subsection expires on the date the Children's Policy Council is
	abolished under Section 22.035(n), Human Resources Code.
	SECTION 3.15.  Section 533.00254(f), Government Code, is
	amended to read as follows:
	(f)  On the first anniversary of the date the commission
	completes implementation of the STAR Kids Medicaid managed care
	program under Section 533.00253 [September 1, 2016]:
	(1)  the advisory committee is abolished; and
	(2)  this section expires.
	SECTION 3.16.  Section 533.00256(a), Government Code, is
	amended to read as follows:
	(a)  In consultation with [the Medicaid and CHIP
	Quality-Based Payment Advisory Committee established under Section
	536.002 and other] appropriate stakeholders with an interest in the
	provision of acute care services and long-term services and
	supports under the Medicaid managed care program, the commission
	shall:
	(1)  establish a clinical improvement program to
	identify goals designed to improve quality of care and care
	management and to reduce potentially preventable events, as defined
	by Section 536.001; and
	(2)  require managed care organizations to develop and
	implement collaborative program improvement strategies to address
	the goals.
	SECTION 3.17.  Section 534.053(g), Government Code, is
	amended to read as follows:
	(g)  On the one-year anniversary of the date the commission
	completes implementation of the transition required under Section
	534.202 [January 1, 2024]:
	(1)  the advisory committee is abolished; and
	(2)  this section expires.
	SECTION 3.18.  Section 535.053, Government Code, is amended
	by amending Subsection (a) and adding Subsection (a-1) to read as
	follows:
	(a)  The interagency coordinating group for faith- and
	community-based initiatives is composed of each faith- and
	community-based liaison designated under Section 535.051 and a
	liaison from the State Commission on National and Community
	Service.  [The commission shall provide administrative support to
	the interagency coordinating group.]
	(a-1)  Service on the interagency coordinating group is an
	additional duty of the office or position held by each person
	designated as a liaison under Section 531.051(b). The state
	agencies described by Section 535.051(b) shall provide
	administrative support for the interagency coordinating group as
	coordinated by the presiding officer.
	SECTION 3.19.  Sections 535.055(a) and (b), Government Code,
	are amended to read as follows:
	(a)  The Texas Nonprofit Council is established to help
	direct the interagency coordinating group in carrying out the
	group's duties under this section.  The state agencies of the
	interagency coordinating group described by Section 531.051(b)
	[commission] shall provide administrative support to the council as
	coordinated by the presiding officer of the interagency
	coordinating group.
	(b)  The governor [executive commissioner], in consultation
	with the presiding officer of the interagency coordinating group,
	shall appoint as members of the council two representatives from
	each of the following groups and entities to represent each group's
	and entity's appropriate sector:
	(1)  statewide nonprofit organizations;
	(2)  local governments;
	(3)  faith-based groups, at least one of which must be a
	statewide interfaith group;
	(4)  community-based groups;
	(5)  consultants to nonprofit corporations; and
	(6)  statewide associations of nonprofit
	organizations.
	SECTION 3.20.  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 3.21.  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 3.22.  Section 536.003(a), Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(a)  The commission[, in consultation with the advisory
	committee,] shall develop quality-based outcome and process
	measures that promote the provision of efficient, quality health
	care and that can be used in the child health plan program and
	Medicaid to implement quality-based payments for acute care
	services and long-term services and supports across all delivery
	models and payment systems, including fee-for-service and managed
	care payment systems.  Subject to Subsection (a-1), the commission,
	in developing outcome and process measures under this section, must
	include measures that are based on potentially preventable events
	and that advance quality improvement and innovation.  The
	commission may change measures developed:
	(1)  to promote continuous system reform, improved
	quality, and reduced costs; and
	(2)  to account for managed care organizations added to
	a service area.
	SECTION 3.23.  Section 536.004(a), Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(a)  Using quality-based outcome and process measures
	developed under Section 536.003 and subject to this section, the
	commission, after consulting with [the advisory committee and
	other] appropriate stakeholders with an interest in the provision
	of acute care and long-term services and supports under the child
	health plan program and Medicaid, shall develop quality-based
	payment systems, and require managed care organizations to develop
	quality-based payment systems, for compensating a physician or
	other health care provider participating in the child health plan
	program or Medicaid that:
	(1)  align payment incentives with high-quality,
	cost-effective health care;
	(2)  reward the use of evidence-based best practices;
	(3)  promote the coordination of health care;
	(4)  encourage appropriate physician and other health
	care provider collaboration;
	(5)  promote effective health care delivery models; and
	(6)  take into account the specific needs of the child
	health plan program enrollee and Medicaid recipient populations.
	SECTION 3.24.  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 3.25.  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 3.26.  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 3.27.  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 3.28.  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 3.29.  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 3.30.  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 3.31.  Section 538.052(a), Government Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(a)  Subject to Subsection (b), the commission shall solicit
	and accept suggestions for clinical initiatives, in either written
	or electronic form, from:
	(1)  a member of the state legislature;
	(2)  the executive commissioner;
	(3)  the commissioner of aging and disability services;
	(4)  the commissioner of state health services;
	(5)  the commissioner of the Department of Family and
	Protective Services;
	(6)  the commissioner of assistive and rehabilitative
	services;
	(7)  the medical care advisory committee established
	under Section 32.022, Human Resources Code; and
	(8)  the physician payment advisory committee created
	under Section 32.022(d), Human Resources Code[; and
	[(9)     the Electronic Health Information Exchange
	System Advisory Committee established under Section 531.904].
	SECTION 3.32.  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 3.33.  Section 1002.061, Health and Safety Code, is
	amended by amending Subsection (c) and adding Subsection (c-1) to
	read as follows:
	(c)  Except as otherwise provided by law, each of the
	following state agencies or systems [agency represented on the
	board as a nonvoting member] shall provide funds to support the
	institute and implement this chapter:
	(1)  the department;
	(2)  the commission;
	(3)  the Texas Department of Insurance;
	(4)  the Employees Retirement System of Texas;
	(5)  the Teacher Retirement System of Texas;
	(6)  the Texas Medical Board;
	(7)  the Department of Aging and Disability Services;
	(8)  the Texas Workforce Commission;
	(9)  the Texas Higher Education Coordinating Board; and
	(10)  each state agency or system of higher education
	that purchases or provides health care services, as determined by
	the governor.
	(c-1)  The commission shall establish a funding formula to
	determine the level of support each state agency or system listed in
	Subsection (c) is required to provide.
	SECTION 3.34.  Section 22.035, Human Resources Code, is
	amended by adding Subsection (n) to read as follows:
	(n)  The work group is abolished and this section expires
	September 1, 2017.
	SECTION 3.35.  (a)  Section 32.022(b), Human Resources
	Code, as amended by S.B. 219, Acts of the 84th Legislature, Regular
	Session, 2015, is amended to read as follows:
	(b)  The executive commissioner shall appoint the committee
	in compliance with the requirements of the federal agency
	administering medical assistance. The appointments shall:
	(1)  provide for a balanced representation of the
	general public, providers, consumers, and other persons, state
	agencies, or groups with knowledge of and interest in the
	committee's field of work; and
	(2)  include one member who is the representative of a
	managed care organization.
	(b)  Not later than September 1, 2015, the executive
	commissioner of the Health and Human Services Commission shall
	appoint an additional member to the medical care advisory committee
	in accordance with Section 32.022(b)(2), Human Resources Code, as
	added by this article.
	SECTION 3.36.  Section 32.0641(a), Human Resources Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	(a)  To the extent permitted under and in a manner that is
	consistent with Title XIX, Social Security Act (42 U.S.C. Section
	1396 et seq.) and any other applicable law or regulation or under a
	federal waiver or other authorization, the executive commissioner
	shall adopt[, after consulting with the Medicaid and CHIP
	Quality-Based Payment Advisory Committee established under Section
	536.002, Government Code,] cost-sharing provisions that encourage
	personal accountability and appropriate utilization of health care
	services, including a cost-sharing provision applicable to a
	recipient who chooses to receive a nonemergency medical service
	through a hospital emergency room.
	SECTION 3.37.  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 3.38.  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 3.39.  (a)  The following provisions of the
	Government Code, including provisions amended by S.B. 219, Acts of
	the 84th Legislature, Regular Session, 2015, are repealed:
	(1)  Section 531.0217(j);
	(2)  Section 531.02172;
	(3)  Section 531.02173(c);
	(4)  Section 531.052;
	(5)  Section 531.0571;
	(6)  Section 531.068;
	(7)  Sections 531.121(1), (5), and (6);
	(8)  Section 531.122;
	(9)  Section 531.123;
	(10)  Section 531.1235;
	(11)  Section 531.251;
	(12)  Subchapters R and T, Chapter 531;
	(13)  Section 531.904;
	(14)  Section 533.00251(a)(1);
	(15)  Section 533.00252;
	(16)  Sections 533.00255(e) and (f);
	(17)  Section 533.00285;
	(18)  Subchapters B and C, Chapter 533;
	(19)  Section 535.055(f);
	(20)  Section 535.108;
	(21)  Section 536.001(1);
	(22)  Section 536.002; and
	(23)  Section 536.007(b).
	(b)  The following provisions of the Health and Safety Code,
	including provisions amended by S.B. 219, Acts of the 84th
	Legislature, Regular Session, 2015, are repealed:
	(1)  Subchapter C, Chapter 32;
	(2)  Section 62.151(e);
	(3)  Section 62.1571(c);
	(4)  Section 81.010;
	(5)  Section 92.011;
	(6)  Subchapter B, Chapter 92;
	(7)  Chapter 115;
	(8)  Section 1002.001(1);
	(9)  Section 1002.051;
	(10)  Section 1002.052;
	(11)  Section 1002.053;
	(12)  Section 1002.055;
	(13)  Section 1002.056;
	(14)  Section 1002.057;
	(15)  Section 1002.058; and
	(16)  Section 1002.059.
	(c)  Section 32.022(e), Human Resources Code, as amended by
	S.B. 219, Acts of the 84th Legislature, Regular Session, 2015, is
	repealed.
	SECTION 3.40.  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 Consumer Direction Work Group;
	(5)  the Council on Children and Families;
	(6)  the Electronic Health Information Exchange System
	Advisory Committee;
	(7)  the Guardianship Advisory Board;
	(8)  the hospital payment advisory committee;
	(9)  the Interagency Coordinating Council for HIV and
	Hepatitis;
	(10)  the Medicaid and CHIP Quality-Based Payment
	Advisory Committee;
	(11)  each Medicaid managed care advisory committee
	appointed for a health care service region under Subchapter B,
	Chapter 533, Government Code;
	(12)  the Public Assistance Health Benefit Review and
	Design Committee;
	(13)  the renewing our communities account advisory
	committee;
	(14)  the STAR + PLUS Nursing Facility Advisory
	Committee;
	(15)  the STAR + PLUS Quality Council;
	(16)  the state Medicaid managed care advisory
	committee;
	(17)  the task force on domestic violence;
	(18)  the Interagency Task Force for Children With
	Special Needs;
	(19)  the telemedicine and telehealth advisory
	committee;
	(20)  the board of directors of the Texas Institute of
	Health Care Quality and Efficiency;
	(21)  the Texas System of Care Consortium;
	(22)  the Texas Traumatic Brain Injury Advisory
	Council; and
	(23)  the volunteer advocate program advisory
	committee.
	SECTION 3.41.  (a)  Not later than November 1, 2015, the
	executive commissioner of the Health and Human Services Commission
	shall publish in the Texas Register:
	(1)  a list of the new advisory committees established
	or to be established as a result of this article, including the
	advisory committees required under Section 531.012(a), Government
	Code, as amended by this article; and
	(2)  a list that identifies the advisory committees
	listed in Section 3.46 of this article:
	(A)  that will not be continued in any form; or
	(B)  whose functions will be assumed by a new
	advisory committee established under Section 531.012(a),
	Government Code, as amended by this article.
	(b)  The executive commissioner of the Health and Human
	Services Commission shall ensure that an advisory committee
	established under Section 531.012(a), Government Code, as amended
	by this article, begins operations immediately on its establishment
	to ensure ongoing public input and engagement.
	(c)  This section takes effect September 1, 2015.
	SECTION 3.42.  Except as otherwise provided by this article,
	this article takes effect January 1, 2016.
	ARTICLE 4.  CONTINUATION OF HEALTH AND HUMAN SERVICES POWERS AND
	DUTIES
	SECTION 4.01.  Section 531.004, Government Code, is amended
	to read as follows:
	Sec. 531.004.  SUNSET PROVISION.  The Health and Human
	Services Commission is subject to Chapter 325 (Texas Sunset Act).
	Unless continued in existence as provided by that chapter, the
	commission is abolished and this chapter expires September 1, 2027
	[2015].
	SECTION 4.02.  Section 108.016, Health and Safety Code, is
	amended to read as follows:
	Sec. 108.016.  SUNSET REVIEW.  Unless the department is
	continued in existence in accordance with Chapter 325, Government
	Code (Texas Sunset Act), after the review required by Section
	1001.003 [11.003(b)], this chapter expires on the date the
	department is abolished under that section [September 1, 2015].
	SECTION 4.03.  Section 1001.003, Health and Safety Code, is
	amended to read as follows:
	Sec. 1001.003.  SUNSET PROVISION.  The Department of State
	Health Services is subject to Chapter 325, Government Code (Texas
	Sunset Act).  Unless continued in existence as provided by that
	chapter, the department is abolished and this chapter expires
	September 1, 2023 [2015].
	SECTION 4.04.  Section 40.003, Human Resources Code, is
	amended to read as follows:
	Sec. 40.003.  SUNSET PROVISION.  The Department of Family
	and Protective Services is subject to Chapter 325, Government Code
	(Texas Sunset Act).  Unless continued in existence as provided by
	that chapter, the department is abolished and this chapter expires
	September 1, 2023 [2015].
	SECTION 4.05.  Section 117.003, Human Resources Code, is
	amended to read as follows:
	Sec. 117.003.  SUNSET PROVISION.  Unless the commission
	is [The Department of Assistive and Rehabilitative Services is
	subject to Chapter 325, Government Code (Texas Sunset Act).   Unless]
	continued in existence as provided by Chapter 325, Government Code
	[that chapter], after the review required by Section 531.004,
	Government Code, [the department is abolished and] this chapter
	expires on the date the commission is abolished under that section
	[September 1, 2015].
	SECTION 4.06.  Section 161.003, Human Resources Code, as
	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
	2015, is amended to read as follows:
	Sec. 161.003.  SUNSET PROVISION.  Unless the commission is
	[The department is subject to Chapter 325, Government Code (Texas
	Sunset Act).   Unless] continued in existence as provided by Chapter
	325, Government Code [that chapter], after the review required by
	Section 531.004, Government Code, [the department is abolished and]
	this chapter expires on the date the commission is abolished under
	that section [September 1, 2015].
	ARTICLE 5.  FEDERAL AUTHORIZATION AND EFFECTIVE DATE
	SECTION 5.01.  If before implementing any provision of this
	Act a state agency determines that a waiver or authorization from a
	federal agency is necessary for implementation of that provision,
	the agency affected by the provision shall request the waiver or
	authorization and may delay implementing that provision until the
	waiver or authorization is granted.
	SECTION 5.02.  Except as otherwise provided by this Act,
	this Act takes effect September 1, 2015.