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.