By Delisi, Berlanga                                   H.B. No. 2377
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the provision and administration of mental health and
    1-3  mental retardation services.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 531.001, Health and Safety Code, is
    1-6  amended by amending Subsections (a), (b), and (e) and adding
    1-7  Subsection (h) to read as follows:
    1-8        (a)  It is the purpose of this subtitle to provide for the
    1-9  effective administration and coordination of mental health and
   1-10  mental retardation services at the state and local levels.
   1-11        (b)  Recognizing that a variety of alternatives for serving
   1-12  the mentally disabled exists, it is the purpose of this subtitle to
   1-13  ensure that <provide for> a continuum of services is provided.  The
   1-14  continuum of services includes facilities operated by the Texas
   1-15  Department of Mental Health and Mental Retardation and community
   1-16  services provided by the department and other entities through
   1-17  contracts with the department.
   1-18        (e)  It is the public policy of this state that mental health
   1-19  and mental retardation services be the responsibility of local
   1-20  agencies and organizations to the greatest extent possible.  The
   1-21  department shall assist the local agencies and organizations by
   1-22  coordinating the implementation of a statewide system of services.
   1-23  The department shall ensure that <provide state-administered>
   1-24  mental health and mental retardation services are provided.  The
    2-1  department shall <and> provide technical assistance for and
    2-2  regulation of the programs that receive funding through contracts
    2-3  with the department.
    2-4        (h)  It is the policy of this state that the board serves as
    2-5  the state's mental health and mental retardation authority and is
    2-6  responsible for the planning, policy development, and resource
    2-7  development and allocation for and oversight of mental health and
    2-8  mental retardation services in this state.  It is the policy of
    2-9  this state that, when appropriate and feasible, the board may
   2-10  delegate the board's authority to a single entity in each region of
   2-11  the state that may function as the local mental health or mental
   2-12  retardation authority for one or more service areas in the region.
   2-13        SECTION 2.  Sections 531.002(8) and (9), Health and Safety
   2-14  Code, are amended to read as follows:
   2-15              (8)  "Local mental health authority" means an entity to
   2-16  which the board delegates its authority and responsibility within a
   2-17  specified region for planning, policy development, coordination,
   2-18  and resource development and allocation and for supervising and
   2-19  ensuring the provision of mental health <a local service provider
   2-20  selected by the department to plan, facilitate, coordinate, or
   2-21  provide> services to persons with mental illness in one or more <a>
   2-22  local service areas <area>.
   2-23              (9)  "Local mental retardation authority" means an
   2-24  entity to which the board delegates its authority and
   2-25  responsibility within a specified region for planning, policy
   2-26  development, coordination, and resource development and allocation
   2-27  and for supervising and ensuring the provision of mental
    3-1  retardation <a local service provider selected by the department to
    3-2  plan, facilitate, coordinate, or provide> services to persons with
    3-3  mental retardation in one or more <a> local service areas <area>.
    3-4        SECTION 3.  Section 532.001(a), Health and Safety Code, is
    3-5  amended to read as follows:
    3-6        (a)  The Texas Department of Mental Health and Mental
    3-7  Retardation is composed of:
    3-8              (1)  the Texas Board of Mental Health and Mental
    3-9  Retardation;
   3-10              (2)  the commissioner of mental health and mental
   3-11  retardation; and
   3-12              (3)  <the medical director;>
   3-13              <(4)  the deputy commissioner for mental health
   3-14  services;>
   3-15              <(5)  the deputy commissioner for mental retardation
   3-16  services; and>
   3-17              <(6)>  a staff under the direction of the
   3-18  commissioner<, medical director, and deputy commissioners>.
   3-19        SECTION 4.  Sections 532.003(b) and (c), Health and Safety
   3-20  Code, are amended to read as follows:
   3-21        (b)  The members must be representatives of the public who
   3-22  have demonstrated interest in mental health, mental retardation,
   3-23  developmental disabilities, or the health and human services
   3-24  system.
   3-25        (c)  Appointments to the board shall be made without regard
   3-26  to the race, color, handicap, sex, religion, age, or national
   3-27  origin of the appointees, except at least one board member must be
    4-1  or have been a primary consumer of mental health or mental
    4-2  retardation services.
    4-3        SECTION 5.  Sections 532.011(e) and (g), Health and Safety
    4-4  Code, are amended to read as follows:
    4-5        (e)  The commissioner shall:
    4-6              (1)  establish qualifications for <assistant deputy
    4-7  commissioners and important> department personnel that balance
    4-8  clinical and programmatic knowledge and management experience; and
    4-9              (2)  standardize qualifications for personnel positions
   4-10  throughout the department.
   4-11        (g)  The commissioner is responsible for implementation of
   4-12  the board's planning, policy, resource development and allocation,
   4-13  and oversight related to <the state> mental health <authority> and
   4-14  <the state> mental retardation services <authority>.
   4-15        SECTION 6.  Section 532.012(a), Health and Safety Code, is
   4-16  amended to read as follows:
   4-17        (a)  The commissioner shall appoint a medical director<,
   4-18  subject to board approval>.
   4-19        SECTION 7.  Section 532.014(a), Health and Safety Code, is
   4-20  amended to read as follows:
   4-21        (a)  The <With the board's approval, the> commissioner shall
   4-22  appoint the head of each facility the department administers.
   4-23        SECTION 8.  Sections 533.035(a)-(c), Health and Safety Code,
   4-24  are amended to read as follows:
   4-25        (a)  The commissioner shall designate a local mental health
   4-26  authority and a local mental retardation authority in one or more
   4-27  <each> local service areas.  The board may delegate to the local
    5-1  authorities the board's authority and responsibility for the
    5-2  planning, policy development, coordination, resource allocation,
    5-3  and resource development for and oversight of <area to plan,
    5-4  facilitate, coordinate, and provide> mental health and mental
    5-5  retardation services in that service area.  The commissioner may
    5-6  designate a single entity as the mental health authority and the
    5-7  mental retardation authority for a service area.
    5-8        (b)  The department by contract or other method of allocation
    5-9  may disburse to a local mental health and mental retardation
   5-10  authority department federal <mental health funds> and department
   5-11  state funds to be spent in the local service area for:
   5-12              (1)  community mental health and mental retardation
   5-13  services; and
   5-14              (2)  chemical dependency services for persons who are
   5-15  dually diagnosed as having both chemical dependency and mental
   5-16  illness or mental retardation.
   5-17        (c)  A local mental health and mental retardation authority,
   5-18  with the department's approval, shall use the funds received under
   5-19  Subsection (b) to ensure <provide> mental health, mental
   5-20  retardation, and chemical dependency services are provided in the
   5-21  local service area.  The local authority shall consider public
   5-22  input, ultimate cost-benefit, and client care issues to ensure
   5-23  consumer choice and the best use of public money in:
   5-24              (1)  assembling a network of service providers; and
   5-25              (2)  determining whether to become a provider of a
   5-26  service or to contract that service to another organization <or to
   5-27  subcontract for those services>.
    6-1        SECTION 9.  Subchapter B, Chapter 533, Health and Safety
    6-2  Code, is amended by adding Section 533.0355 to read as follows:
    6-3        Sec. 533.0355.  AUTHORITY STRUCTURE PILOT PROJECT.  (a)
    6-4  Notwithstanding other law, the board may implement a pilot project
    6-5  to study an authority structure for service delivery at the local
    6-6  or regional level through a pilot local mental health or mental
    6-7  retardation authority.  The project shall provide an
    6-8  organizational separation between the pilot local mental health or
    6-9  mental retardation authority and service providers.  The board may
   6-10  delegate to a pilot local mental health or mental retardation
   6-11  authority the responsibility for the distribution, allocation, and
   6-12  coordination of mental health or mental retardation service
   6-13  resources in one or more service areas, including the
   6-14  responsibility to make policy determinations, develop resources,
   6-15  enter service contracts, and plan to meet future needs for services
   6-16  in each service area.
   6-17        (b)  The board may establish one or more pilot local mental
   6-18  health and mental retardation authorities under this section.
   6-19        (c)  If the board establishes a pilot program, the department
   6-20  shall:
   6-21              (1)  evaluate the pilot project at least annually to
   6-22  determine the feasibility of employing the authority structure in
   6-23  other areas of the state or statewide;
   6-24              (2)  prepare a report on the success of the pilot
   6-25  project that includes a list of statutory restrictions that would
   6-26  impair the permanent implementation of the authority structure in
   6-27  other areas of the state and suggested legislative changes; and
    7-1              (3)  submit the report to the 75th and 76th
    7-2  legislatures on January 15, 1997, and January 15, 1999,
    7-3  respectively.
    7-4        (d)  This section expires September 1, 1999.
    7-5        SECTION 10.  Subchapter D, Chapter 533, Health and Safety
    7-6  Code, is amended by adding Section 533.087 to read as follows:
    7-7        Sec. 533.087.  LEASE OF REAL PROPERTY.  (a)  The department
    7-8  may lease real property, including any improvements under the
    7-9  department's management and control, regardless of whether the
   7-10  property is surplus property.  Except as provided by Subsection
   7-11  (c), the department may award a lease of real property only:
   7-12              (1)  at the prevailing market rate; and
   7-13              (2)  by competitive bid.
   7-14        (b)  The department shall advertise a proposal for lease at
   7-15  least once a week for four consecutive weeks in:
   7-16              (1)  a newspaper published in the municipality in which
   7-17  the property is located or the daily newspaper published nearest to
   7-18  the property's location; and
   7-19              (2)  a newspaper of statewide circulation.
   7-20        (c)  The department may lease real property or an improvement
   7-21  for less than the prevailing market rate, without advertisement or
   7-22  without competitive bidding, if:
   7-23              (1)  the board determines that sufficient public
   7-24  benefit will be derived from the lease; and
   7-25              (2)  the property is leased to:
   7-26                    (A)  a federal or state agency;
   7-27                    (B)  a unit of local government;
    8-1                    (C)  a not-for-profit organization; or
    8-2                    (D)  an entity related to the department by a
    8-3  service contract.
    8-4        (d)  The board shall adopt leasing rules, forms, and
    8-5  contracts that will protect the state's interests.
    8-6        (e)  The board may reject any bid.
    8-7        (f)  This section does not authorize the department to close
    8-8  or consolidate a facility used to provide mental health or mental
    8-9  retardation services without legislative approval.
   8-10        SECTION 11.  Section 534.022, Health and Safety Code, is
   8-11  amended by adding Subsection (e) to read as follows:
   8-12        (e)  A county or municipality acting alone or two or more
   8-13  counties or municipalities acting jointly pursuant to interlocal
   8-14  contract may create a public facility corporation to act on behalf
   8-15  of one or more community centers pursuant to the Public Facility
   8-16  Corporation Act (Article 717s, Revised Statutes).  Such counties or
   8-17  municipalities may exercise the powers of a sponsor under that Act,
   8-18  and any such corporation may exercise the powers of a corporation
   8-19  under that Act (including but not limited to the power to issue
   8-20  bonds).  The corporation may exercise its powers on behalf of
   8-21  community centers in such manner as may be prescribed by the
   8-22  articles and bylaws of the corporation, provided that in no event
   8-23  shall one community center ever be liable to pay the debts or
   8-24  obligation or be liable for the acts, actions, or undertakings of
   8-25  another community center.
   8-26        SECTION 12.  Sections 534.054(a) and (d), Health and Safety
   8-27  Code, are amended to read as follows:
    9-1        (a)  The department shall identify and contract with a local
    9-2  mental health or mental retardation authority for each service area
    9-3  to ensure that <provide> services are provided to patient and
    9-4  client populations determined by the department.  A local mental
    9-5  health or mental retardation authority shall ensure that <provide,
    9-6  directly or by subcontract,> services to address the needs of
    9-7  priority populations are provided as required by the department and
    9-8  shall comply with the rules and standards adopted under Section
    9-9  534.052.
   9-10        (d)  The department shall ensure that <provide> the required
   9-11  services are provided in a service area directly through the
   9-12  community services division of a department facility <outreach
   9-13  program> or contract with another agency, entity <provider>, or
   9-14  organization as the local mental health or mental retardation
   9-15  authority if the department cannot identify and contract with a
   9-16  community center in that service area.
   9-17        SECTION 13.  Sections 534.055(d) and (e), Health and Safety
   9-18  Code, are amended to read as follows:
   9-19        (d)  The department shall design a competitive procurement or
   9-20  similar system that a mental health or mental retardation authority
   9-21  shall use in awarding an initial contract under this section.  <To
   9-22  facilitate continuity of services and to prevent disruption of
   9-23  services, a mental health or mental retardation authority may not
   9-24  require competitive bidding on the renewal of a contract.>
   9-25        (e)  The system must require that each mental health or
   9-26  mental retardation authority:
   9-27              (1)  ensure public participation in the authority's
   10-1  decisions regarding whether to provide or to contract for a
   10-2  service;
   10-3              (2)  make a reasonable effort to give notice of the
   10-4  intent to contract for services to each potential private provider
   10-5  in the local service area of the authority; and
   10-6              (3) <(2)>  review each submitted proposal and award the
   10-7  contract to the applicant that the authority determines has made
   10-8  the lowest and best bid to provide the needed services.
   10-9        SECTION 14.  Section 534.064, Health and Safety Code, is
  10-10  amended to read as follows:
  10-11        Sec. 534.064.  Contract Renewal.  The commissioner may refuse
  10-12  to renew a contract with a local mental health or mental
  10-13  retardation authority and may select other agencies, entities
  10-14  <providers>, or organizations to be the local mental health or
  10-15  mental retardation authority if the department's evaluation of the
  10-16  authority's performance indicates that the authority cannot ensure
  10-17  the availability of the specific services to priority populations
  10-18  required by the department and this subtitle.
  10-19        SECTION 15.  Section 534.065(b), Health and Safety Code, is
  10-20  amended to read as follows:
  10-21        (b)  The mental health or mental retardation authority shall
  10-22  renew the contract if the authority finds that:
  10-23              (1)  funding is available;
  10-24              (2)  the authority plans to continue the services;
  10-25              (3)  the provider is in substantial compliance with
  10-26  each material provision of the contract, unless the authority
  10-27  determines that the provision is not legal and enforceable under
   11-1  applicable state and federal law;
   11-2              (4)  the provider is providing a reasonably adequate
   11-3  level of service in accordance with the contract and at a
   11-4  reasonable cost;
   11-5              (5)  the provider agrees to a renewal contract that is
   11-6  substantially in compliance with a model contract developed by the
   11-7  department under Section 534.055;
   11-8              (6)  the provider was during the term of any contract
   11-9  with the authority and is at the time of renewal in compliance with
  11-10  applicable laws governing the subject matter of the contract; and
  11-11              (7)  neither the provider nor any of its officers,
  11-12  directors, or principal employees has been convicted or found by a
  11-13  final administrative decision to have been guilty of fraud or abuse
  11-14  in the provision of health care services under a contract with a
  11-15  state or federal agency.
  11-16        SECTION 16.  Section 534.066(b), Health and Safety Code, is
  11-17  amended to read as follows:
  11-18        (b)  The department shall establish, for community services
  11-19  divisions of department facilities <facility outreach programs>
  11-20  that provide community-based services required under this
  11-21  subchapter, a local match requirement that is consistent with the
  11-22  requirements applied to other local mental health or mental
  11-23  retardation authorities.
  11-24        SECTION 17.  Sections 551.022(c) and (d), Health and Safety
  11-25  Code, are amended to read as follows:
  11-26        (c)  The superintendent shall:
  11-27              (1)  oversee the admission and discharge of <admit and
   12-1  discharge> patients and clients;
   12-2              (2)  keep a register of all patients and clients
   12-3  admitted to or discharged from the facility;
   12-4              (3)  supervise repairs and improvements to the
   12-5  facility;
   12-6              (4)  ensure that facility money <entrusted to the
   12-7  superintendent> is spent judiciously and economically;
   12-8              (5)  keep an accurate and detailed account of all money
   12-9  received and spent, stating the source of the money and to whom and
  12-10  the purpose for which the money is spent; and
  12-11              (6)  keep a full record of the facility's operations.
  12-12        (d)  In accordance with board rules and departmental
  12-13  operating procedures, the <The> superintendent may:
  12-14              (1)  establish policy <rules> to govern the facility
  12-15  that the superintendent considers will best promote the patients'
  12-16  and clients' interest and welfare;
  12-17              (2)  appoint subordinate officers, teachers,
  12-18  <attendants,> and other employees and set their salaries, in the
  12-19  absence of other law; and
  12-20              (3)  remove an officer, teacher, or employee for good
  12-21  cause <and with the board's consent>.
  12-22        SECTION 18.  Sections 532.013, 533.064, 534.062, 551.021, and
  12-23  551.023, Health and Safety Code, are repealed.
  12-24        SECTION 19.  (a)  The changes in law made by this Act apply
  12-25  only to an action taken by the Texas Board of Mental Health and
  12-26  Mental Retardation, the Texas Department of Mental Health and
  12-27  Mental Retardation, or the commissioner of mental health and mental
   13-1  retardation or to an appointment made by the governor on or after
   13-2  September 1, 1995.
   13-3        (b)  An action taken or appointment made before September 1,
   13-4  1995, is governed by the law in effect when the action was  taken
   13-5  or appointment was made, and that law is continued in effect for
   13-6  that purpose.
   13-7        (c)  The change in law made by this Act in the qualifications
   13-8  of  members of the Texas Board of Mental Health and Mental
   13-9  Retardation does not affect the entitlement of a member of that
  13-10  board who was appointed before September 1, 1995, to continue to
  13-11  hold office for the term to which the member was appointed.  The
  13-12  change in qualifications applies only to a member appointed on or
  13-13  after September 1, 1995.
  13-14        SECTION 20.  Nothing in this Act authorizes the department to
  13-15  privatize the administration of state facilities.
  13-16        SECTION 21.  This Act takes effect September 1, 1995.
  13-17        SECTION 22.  The importance of this legislation and the
  13-18  crowded condition of the calendars in both houses create an
  13-19  emergency and an imperative public necessity that the
  13-20  constitutional rule requiring bills to be read on three several
  13-21  days in each house be suspended, and this rule is hereby suspended.