HF 1242 Summary

• Creates a new Department of Direct Care and Treatment, effective July 1, 2022, with a commissioner appointed by the governor to oversee direct care and treatment services including secure treatment facilities, regional treatment centers, and community-based services.

• Establishes the Office of Human Services Licensing and Integrity, effective July 1, 2022, with a director appointed by the governor to conduct licensing, background studies, program integrity functions, fraud detection, and financial audits for all Department of Human Services programs.

• Requires the commissioners of health and human services to contract with an independent third party by December 31, 2021, to administer all grant programs, with administration costs capped at two percent.

• Implements performance-based budgeting for the Department of Human Services and Department of Direct Care and Treatment, requiring both departments to submit detailed operating budgets with zero appropriation bases for the next two bienniums.

• Directs the commissioner of human services to contract with a third party by December 31, 2021, to review all active information technology projects and report findings by December 31, 2022.