BILL ANALYSIS


                                                         H.B. 553
                                        By: Hunter, Bob (Sponsor)
                                        Health and Human Services
                                                         05-12-95
                              Senate Committee Report (Unamended)
BACKGROUND

Roughly 85 percent of mental health and mental retardation clients
in Texas receive their state-supported services through local
community centers.  The community centers receive a portion of
their funds from the state and operate under the laws and rules of
the Texas Department of Mental Health and Mental Retardation.

Under the restraint of trade provision of the Business and Commerce
Code, community centers can be sued.  Community centers carry out
state policies; the state and its administrative agencies, however,
are exempt from the provision.

PURPOSE

As proposed, H.B. 553 considers an entity, for the purpose of
operating a psychiatric center, a governmental unit, a unit of
local government, and a local government under certain provisions
of the Civil Practice and Remedies Code.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 534.001, Health and Safety Code, by
amending Subsection (e) and adding Subsections (f) and (g), as
follows:

     (e) Authorizes a community mental health and mental
     retardation center operating under this subchapter to operate
     only for the purposes and perform only the functions defined
     in the center's plan.  Requires the Texas Board of Mental
     Health and Mental Retardation to prescribe the procedure for
     modifying a center's plan.
     
     (f) Provides that each function performed by a community
     center under this title is governmental.
     
     (g) Provides that an entity, for the purpose of operating a
     psychiatric center, is a governmental unit and a unit of local
     government under Chapter 101, Civil Practice and Remedies
     Code, and a local government under Chapter 102, Civil Practice
     and Remedies Code, if the entity is not operated to make a
     profit and is created through an intergovernmental agreement
     between a community mental health center and any other
     governmental unit, and contracts with the community mental
     health center and any other governmental unit that created it
     to operate a psychiatric center.
     
     SECTION 2.     Amends Section 15.03(3), Business and Commerce Code, to
redefine "person."

SECTION 3. Makes application of this Act prospective.

SECTION 4. Effective date: September 1, 1995.

SECTION 5. Emergency clause.