BILL ANALYSIS C.S.H.B. 2377 By: Delisi (Zaffirini) Health and Human Services 05-22-95 Senate Committee Report (Substituted) BACKGROUND New roles and changes in the service delivery system, including the recent designation of the Texas Department of Mental Health and Mental Retardation (TXMHMR) as a Medicaid operating agency, expansion of the mental health and mental retardation provider base beyond TXMHMR and community centers, point to the need for clear articulation of the role of a mental health and mental retardation authority and a clear delineation of the differences between the authority role and the more traditional role of provider. To address these issues, in January 1994, the chair of TXMHMR board appointed a "blue ribbon" task force charged with exploring issues related to organizing, financing, and delivering mental health and mental retardation services and making recommendations to the commissioner and the board about future directions and needed changes. PURPOSE As proposed, C.S.H.B. 2377 sets forth provisions clarifying the role of the mental health and mental retardation authority in its administration and coordination of mental health and mental retardation services. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the board of the Texas Department of Mental Health and Mental Retardation under SECTION 10 (Sec. 533.087, Chapter 533D, Health and Safety Code) and in SECTION 17 (Sec. 551.022(d), Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 531.001, Health and Safety Code, by amending Subsections (a), (b), and (e), and adding Subsection (h), as follows: (a) Provides that it is the purpose of this subtitle to provide for the effective administration and coordination of mental health and mental retardation services (mental services) at the state and local levels. (b) Provides that it is the purpose of this subtitle to ensure that a continuum of services is provided, recognizing that a variety of alternatives for serving the mentally disabled exists. (e) Requires the Texas Department of Mental Health and Mental Retardation (department) to provide technical assistance for and regulation of the programs that receive funding through contracts with the department. Makes a conforming change. (h) Provides that it is the policy of this state that the board of the Texas Department of Mental Health and Mental Retardation (board) serves as the state's mental health and mental retardation authority and is responsible for the planning, policy development, and resource development and allocation for and oversight of mental services in this state. Provides that it is state policy that the board may delegate the board's authority to a single entity in each region of the state that may function as the local mental health or mental retardation authority for one or more service areas in the region, when appropriate and feasible. SECTION 2. Amends Sections 531.002(8) and (9), Health and Safety Code, to redefine "local mental health authority" and "local mental retardation authority." SECTION 3. Amends Section 532.001(a), Health and Safety Code, to delete a requirement that a medical director and deputy commissioners serve on the board of the department. SECTION 4. Amends Section 532.003(b), Health and Safety Code, as follows: (b) Requires members to be representatives of the public who have demonstrated interest in mental health, mental retardation, developmental disabilities, or the health and human services system. SECTION 5. Amends Sections 532.011(e) and (g), Health and Safety Code, to provide that the commissioner is responsible for implementation of the board's planning, policy, resource development and allocation, and oversight related to mental services. Makes a conforming change. SECTION 6. Amends Sections 532.012(a) and (c), Health and Safety Code, as follows: (a) Makes a conforming change. (c) Provides that the medical director reports to the commissioner and is responsible for oversight of the quality and appropriateness of clinical services delivered in department facilities or under contract to the department; and leadership in physician recruitment and retention and peer review. SECTION 7. Amend Section 532.014(a), Health and Safety Code, to make a conforming change. SECTION 8. Amends Sections 533.035(a)-(c), Health and Safety Code, as follows: (a) Requires the commissioner to designate a local mental health authority and a local mental retardation authority in one or more local service areas. Authorizes the board to delegate to the local authorities the board's authority and responsibility for the planning, policy development, coordination, resource allocation, and resource development for and oversight of services. Authorizes the commissioner to designate a single entity as the mental health authority and the mental retardation authority for a service area. (b) Deletes department federal mental health funds from the funds the department may disburse to a local mental health and mental retardation authority. (c) Requires the local authority to consider public input, ultimate cost-benefit, and client care issues to ensure consumer choice and the best use of public money in assembling a network of service providers and determining whether to become a provider of a service or to contract that service to another organization. SECTION 9. Amends Chapter 533B, Health and Safety Code, by adding Section 533.0355, as follows: Sec. 533.0355. AUTHORITY STRUCTURE PILOT PROJECT. (a) Authorizes the board to implement a pilot project to study an authority structure for service delivery at the local or regional level through a pilot local mental health or mental retardation authority. Requires the project to provide an organizational separation between the pilot local mental health or mental retardation authority and service providers. Authorizes the board to delegate to a pilot local mental health or mental retardation authority the responsibility for the distribution, allocation, and coordination of mental health and mental retardation service resources in one or more service areas. (b) Authorizes the board to establish one or more pilot local mental health and mental retardation authorities under this section. (c) Requires the department to evaluate the pilot project, prepare a report on the success of the pilot project, and submit the report to the 75th and 76th legislatures on January 15, 1997, and January 15, 1999, respectively. (d) Provides that this section expires September 1, 1999. SECTION 10. Amends Chapter 533D, Health and Safety Code, by adding Section 533.087, as follows: Sec. 533.087. LEASE OF REAL PROPERTY. (a) Authorizes the department to lease real property regardless of whether the property is surplus property. Authorizes the department to award a lease of real property only at the prevailing market rate and by competitive bid, except as provided by Subsection (c). (b) Requires the department to advertise a proposal for lease at least once a week for four consecutive weeks in certain newspapers. (c) Sets forth certain conditions under which the department may lease real property or an improvement for less than the prevailing market rate, without advertisement or competitive bidding. (d) Requires the board to adopt leasing rules, forms, and contracts that will protect the state's interests. (e) Authorizes the board to reject any bid. (f) Provides that this section does not authorize the department to close or consolidate a facility used to provide mental services without legislative approval. SECTION 11. Amends Section 534.022, Health and Safety Code, by adding Subsection (e), as follows: (e) Authorizes a county or municipality acting alone or two or more counties or municipalities acting jointly pursuant to interlocal contract to create a public facility corporation to act on behalf of one or more community centers pursuant to Article 717s, V.T.C.S. (Public Facility Corporation Act). Authorizes such counties or municipalities to exercise the powers of a sponsor under the Act, and any such corporation to exercise the powers of a corporation under the Act. Authorizes the corporation to exercise its powers on behalf of community centers in such manner as may be prescribed that in no event shall one community center ever be liable to pay the debts or obligation or be liable for the acts, actions, or undertakings of another community center. SECTION 12. Amends Sections 534.054(a) and (d), Health and Safety Code, make conforming changes. SECTION 13. Amends Sections 534.055(d) and (e), Health and Safety Code, as follows: (d) Deletes a provision prohibiting a mental health or mental retardation authority from requiring competitive bidding on the renewal of a contract. (e) Provides that the system must require that each mental health or mental retardation authority ensure public participation in the authority's decisions regarding whether to provide or to contract for a service, among other requirements. Makes nonsubstantive changes. SECTION 14. Amends Section 534.064, Health and Safety Code, to make a conforming change. SECTION 15. Amends Section 534.065(b), Health and Safety Code, to require the mental health or mental retardation authority to renew the contract if the authority finds that, among certain information, the provider is providing a reasonably adequate level of service in accordance with the contract and at a reasonable cost. SECTION 16. Amends Section 534.066(b), Health and Safety Code, to make conforming changes. SECTION 17. Amends Sections 551.022(c) and (d), Health and Safety Code, as follows: (c) Requires the superintendent to oversee the admission and discharge of patient and client, among other duties. Makes a conforming change. (d) Authorizes the superintendent, among other actions, to establish policy to govern the facility that the superintendent considers will best promote the patients' and clients' interest and welfare, in accordance with board rules and departmental operating procedures. SECTION 18. Repealer: Sections 532.013, 533.064, 534.062, 551.021, and 551.023, Health and Safety Code (Deputy Commissioners - Memorandum of Understanding on ICF-MR Services - Review of Crisis Residential and Hospitalization Services - Qualifications of Certain Superintendents - Reports from Superintendent). SECTION 19. Makes application of this Act prospective. SECTION 20. Provides that nothing in this Act authorizes the department to privatize the administration of state facilities. SECTION 21. Effective date: September 1, 1995. SECTION 22. Emergency clause.