BILL ANALYSIS H.B. 865 By: Maxey 04-03-95 Committee Report (Unamended) BACKGROUND A federal funding source, that provides for emergency assistance under Title IV-A of the Social Security Act, could be used to fund mental health services. States are beginning to address and define services in the mental health area as emergencies in order to qualify for matching federal funds. At least two states, Colorado and California, have begun claiming Emergency Assistance for mental health services. Texas does not currently include these services in its Title IV-A Emergency Assistance plan, which is administered by the Texas Dept. of Human Services, and does not draw reimbursement. This federal funding source requires that the definition of emergencies include mental health services to youth and their families. The federal reimbursement rate is fifty percent of the cost of maintenance, services and administration. PURPOSE H.B. No. 865 would require the Texas Department of Mental Health and Mental Retardation (MHMR) enter into an interagency contract with the Texas Department of Human Services (DHS) to establish federal funding reimbursements for mental health services for eligible Texas families. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Adds new section to Chapter 533, Health & Safety Code, to read as follows: Section 533.046. FEDERAL FUNDING FOR MENTAL HEATLH SERVICES FOR CHILDREN AND FAMILIES. (a) Requires MHMR to enter into an interagency agreement with DHS to amend the eligibility requirements of the Title IV-A Emergency Assistance plan to include mental health emergencies and establish procedures for the delegation of funds received to MHMR and to local MHMR authorities. (b) Requires the interagency agreement to provide that MHMR certify to DHS non-federal expenditures which can be used for the federal match and that DHS retain responsibility for final eligibility decisions. (c) Requires MHMR to allocate 66% of federal funds received under this legislation to the local MHMR authorities. SECTION 2. Emergency clause, effective in 90 days. SUMMARY OF COMMITTEE ACTION On March 29, 1995, the Chairman laid out H.B. 865 and asked Rep. Maxey to explain the bill. The following witnesses testified for H.B. 865: Nancy Epstein, Disability Policy Consortium; Mary Jo Magruder, Texas Planning Council for Developmental Disabilities; Barrett Markland, Advocacy, Inc. No one testified against or neutral on H.B. 865 and the bill was left pending. In a public hearing on April 3, 1995, the Committee took up H.B. 865 which had been pending. Rep. Maxey moved that the committee report H.B. 865 favorably, without amendment, and be sent to the Committee on Local and Consent Calendars. The motion prevailed by a record vote of 9 Ayes, 0 nays, 9 PNV, and 0 absent.