MINUTES 
          
              SENATE INTERIM COMMITTEE ON HEALTH AND HUMAN SERVICES 
                           Thursday, January 22, 1998 
                                     9 a.m. 
                                 Senate Chamber 
                                      ***** 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Interim Committee on  
         Health and Human Services was held on Thursday, January 22,  
         1998, in the Senate Chamber at Austin, Texas.   
                                      ***** 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Judith Zaffirini, Chair          
         Senator John Carona 
         Senator Chris Harris 
         Senator Jon Lindsay 
         Senator Frank Madla 
                                      ***** 
         The chair called the meeting to order at 9 a.m.  A quorum was  
         established as the meeting progressed, and the following  
         business was transacted. 
          
         The chair made opening remarks and announced that the purpose  
         of the meeting was to receive a progress report and briefing  
         regarding the charges issued to the committee by Lt. Gov. Bob  
         Bullock.  
          
         The chair called invited panelists to provide committee  
         members with a progress report regarding efforts to reduce  
         fraud and improper payments under state Medicaid and welfare  
         programs, including the implementation of Senate Bill 30 by  
         Sen. Judith Zaffirini and Rep. Glen Maxey. 
          
         The following persons provided oral and written testimony: 
          
              Dr. Michael McKinney, commissioner, Texas Health and  
              Human Services Commission, 4900 North Lamar, Austin,  
              Texas 78751. 
          
              Drew Beckley, executive, Electronic Data Systems, 11044  
              Research Blvd., Bldg. C, Austin, Texas 78759. 
          
         The following persons provided oral testimony: 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-9030. 
          
              Dr. William Archer, commissioner, Texas Department of  
              Health, 1100 West 49th Street, Austin, Texas 78757. 
          
              Randy Washington, deputy commissioner, Health Care  
              Financing, Texas Department of Health, 1100 West 49th  
              Street, Austin, Texas 78757. 
  
              Becky Beechinor, division director, Health Facility  
              Licensing Division, Texas Department of Health, 1100 West  
              49th Street, Austin, Texas 78756. 
          
              Aurora LeBrun, associate commissioner, Texas Health and  
              Human Services Commission, 4900 North Lamar, Austin,  
              Texas 78751. 
          
         The following persons registered as resource witnesses, but  
         did not testify: 
          
              Anne Sapp, deputy commissioner, Government Relations,  
              Texas Department of Human Services, P.O. Box 149030,  
              Austin, Texas 78714-9030. 
          
              Pauline Starr, program services director, Electronic Data  
              Systems/National Heritage Insurance Company, 11044  
              Research Blvd., Bldg. C, Austin, Texas 78759. 
          
              Diane Davis, director, Analysis Development and Research,  
              Texas Health and Human Services Commission, 3513 Galena  
              Hills Loop, Round Rock, Texas 78681. 
          
              Robin Herskowitz, senior analyst, Comptroller of Public  
              Accounts, 111 East 17th Street, Austin, Texas 78711-3528. 
          
              Beth Taylor, division chief, Medicaid Fraud Control Unit,  
              Office of the Attorney General, P.O. Box 12548, Austin,  
              Texas 78711-2548. 
          
              Melissa Todd, division chief, Elder Law, Office of the  
              Attorney General, P.O. Box 12548, Austin, Texas  
              78711-2548. 
          
         The chair called invited panelists to provide committee  
         members with a progress report regarding federal welfare  
         reform. 
          
         The following person provided oral testimony: 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-9030. 
          
         The chair suspended testimony regarding federal welfare reform  
         and called invited panelists to brief committee members  
         regarding the Texas tobacco settlement. 
          
         The following persons provided oral testimony: 
          
              The Honorable Dan Morales, attorney general, Office of  
              the Attorney General, P.O. Box 12548, Austin, Texas  
              78711-2548. 
          
              Harry Potter, special assistant attorney general for  
              litigation, Office of the Attorney General, P.O. Box  
      
              12548, Austin, Texas 78711-2548. 
          
         The chair called invited panelists to resume providing  
         committee members with a progress report regarding federal  
         welfare reform. 
          
         The following persons provided oral testimony: 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-9030. 
          
              Bill Hammond, chair, Texas Workforce Commission, 101 East  
              15th Street, Austin, Texas 78778-0001. 
          
         The following persons registered as resource witnesses, but  
         did not testify: 
          
              Anne Sapp, deputy commissioner, Government Relations,  
              Texas Department of Human Services, P.O. Box 149030,  
              Austin, Texas 78714-9030. 
          
              Larry Temple, director of welfare reform, Texas Workforce  
              Commission, 101 15th Street, Austin, Texas 78778-0001. 
          
         The chair called invited panelists to provide committee  
         members with a progress report regarding the implementation of  
         Senate Bill 55 by Sen. Judith Zaffirini and Rep. Hugo  
         Berlanga, relating to minors' access to tobacco. 
          
         The following persons provided oral testimony: 
          
              Dr. William Archer, commissioner, Texas Department of  
              Health, 1100 West 49th Street, Austin, Texas 78757. 
          
              Robin Herskowitz, senior analyst, Office of the  
              Comptroller of Public Accounts, 111 East 17th Street,  
              Austin, Texas 78711-3528. 
          
         The following persons registered as resource witnesses, but  
         did not testify: 
          
              Dr. Phillip Huang, acting director, Office of Tobacco  
              Prevention and Control, Texas Department of Health, 1100  
              West 49th Street, Austin, Texas 78757. 
          
              Dr. Patti Patterson, deputy commissioner, Texas  
              Department of Health, 1100 West 49th Street, Austin,  
              Texas 78757. 
          
              Jim McDade, Texas Commission on Alcohol and Drug Abuse,  
              90031 North IH35, Austin, Texas 78759. 
          
         The chair called the invited witness to provide committee  
         members with a progress report regarding developments in the  
         federal tobacco settlement discussions. 
  
         The following person provided oral and written testimony: 
          
              Jon Hinojosa, legislative liaison, Texas Office of State  
              and Federal Relations, 1201 Brazos, Suite 313, Austin,  
              Texas 78711. 
          
         The chair called invited panelists to provide committee  
         members with a progress report regarding  demographic trends  
         in Texas that will impact the health and human services  
         delivery system in the future. 
          
         The following persons provided oral and written testimony: 
          
              Don Gilbert, commissioner, Texas Department of Mental  
              Health and Mental Retardation, P.O. Box 12668, Austin,  
              Texas 78711-2668. 
          
              Mary Sapp, executive director, Texas Department on Aging,  
              P.O. Box 12786, Austin, Texas 78711-2786. 
          
         The following persons provided oral testimony: 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-9030. 
          
              Dr. William Archer, commissioner, Texas Department of  
              Health, 1100 West 49th Street, Austin, Texas 78757. 
          
         The chair called invited panelists to provide committee  
         members with a progress report regarding  current practices in  
         patient billing by Texas hospitals and providers of health  
         care to evaluate the  accuracy, clarity and timeliness of  
         patient billing. 
          
         The following persons provided oral and written testimony: 
          
              Becky Beechinor, division director, Health Facility  
              Licensing Division, Texas Department  of Health, 1100  
              West 49th Street, Austin, Texas 78757. 
          
              John Evans, director, Hospital Licensing, Health Facility  
              Licensing Division, Texas Department of Health, 1100 West  
              49th Street, Austin, Texas 78757. 
          
              Pam Perkins, investigator, Consumer Protection Division,  
              Office of the Attorney General, 209 West 14th Street,  
              Austin, Texas 78711-2548. 
               
         The following person provided oral testimony: 
               
              Rhonda Myron, director, Governmental Affairs, Texas  
              Department of Insurance, 333 Guadalupe, Austin, Texas  
              78714. 
  
         The following persons registered as resource witnesses, but  
         did not testify: 
          
              Nance Stearman, director, Health Facility Compliance  
              Division, Texas Department of Health, 1100 West 49th  
              Street, Austin, Texas 78756. 
          
              Dianne Longley, insurance director, Life and Group  
              Health, Texas Department of Insurance, 333 Guadalupe  
              Street, Austin, Texas 78714. 
          
         There being no witnesses registered or responding to the  
         chair's call for public testimony related to  the charges, the  
         chair closed public testimony. 
          
         With no other business to come before the committee, the chair  
         recessed the Senate Interim Committee on Health and Human  
         Services at 12:10 p.m., subject to the call of the chair. 
          
         ____________________________ 
         Senator Judith Zaffirini, Chair 
          
         ______________________________ 
         Pam Crowley, Committee Clerk