1-1  By:  Delisi, Berlanga (Senate Sponsor - Zaffirini)    H.B. No. 2377
    1-2        (In the Senate - Received from the House May 15, 1995;
    1-3  May 17, 1995, read first time and referred to Committee on Health
    1-4  and Human Services; May 22, 1995, reported adversely, with
    1-5  favorable Committee Substitute by the following vote:  Yeas 8, Nays
    1-6  0; May 22, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR H.B. No. 2377               By:  Zaffirini
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the provision and administration of mental health and
   1-11  mental retardation services.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Section 531.001, Health and Safety Code, is
   1-14  amended by amending Subsections (a), (b), and (e) and adding
   1-15  Subsection (h) to read as follows:
   1-16        (a)  It is the purpose of this subtitle to provide for the
   1-17  effective administration and coordination of mental health and
   1-18  mental retardation services at the state and local levels.
   1-19        (b)  Recognizing that a variety of alternatives for serving
   1-20  the mentally disabled exists, it is the purpose of this subtitle to
   1-21  ensure that <provide for> a continuum of services is provided.  The
   1-22  continuum of services includes facilities operated by the Texas
   1-23  Department of Mental Health and Mental Retardation and community
   1-24  services provided by the department and other entities through
   1-25  contracts with the department.
   1-26        (e)  It is the public policy of this state that mental health
   1-27  and mental retardation services be the responsibility of local
   1-28  agencies and organizations to the greatest extent possible.  The
   1-29  department shall assist the local agencies and organizations by
   1-30  coordinating the implementation of a statewide system of services.
   1-31  The department shall ensure that <provide state-administered>
   1-32  mental health and mental retardation services are provided.  The
   1-33  department shall <and> provide technical assistance for and
   1-34  regulation of the programs that receive funding through contracts
   1-35  with the department.
   1-36        (h)  It is the policy of this state that the board serves as
   1-37  the state's mental health and mental retardation authority and is
   1-38  responsible for the planning, policy development, and resource
   1-39  development and allocation for and oversight of mental health and
   1-40  mental retardation services in this state.  It is the policy of
   1-41  this state that, when appropriate and feasible, the board may
   1-42  delegate the board's authority to a single entity in each region of
   1-43  the state that may function as the local mental health or mental
   1-44  retardation authority for one or more service areas in the region.
   1-45        SECTION 2.  Sections 531.002(8) and (9), Health and Safety
   1-46  Code, are amended to read as follows:
   1-47              (8)  "Local mental health authority" means an entity to
   1-48  which the board delegates its authority and responsibility within a
   1-49  specified region for planning, policy development, coordination,
   1-50  and resource development and allocation and for supervising and
   1-51  ensuring the provision of mental health <a local service provider
   1-52  selected by the department to plan, facilitate, coordinate, or
   1-53  provide> services to persons with mental illness in one or more <a>
   1-54  local service areas <area>.
   1-55              (9)  "Local mental retardation authority" means an
   1-56  entity to which the board delegates its authority and
   1-57  responsibility within a specified region for planning, policy
   1-58  development, coordination, and resource development and allocation
   1-59  and for supervising and ensuring the provision of mental
   1-60  retardation <a local service provider selected by the department to
   1-61  plan, facilitate, coordinate, or provide> services to persons with
   1-62  mental retardation in one or more <a> local service areas <area>.
   1-63        SECTION 3.  Section 532.001(a), Health and Safety Code, is
   1-64  amended to read as follows:
   1-65        (a)  The Texas Department of Mental Health and Mental
   1-66  Retardation is composed of:
   1-67              (1)  the Texas Board of Mental Health and Mental
   1-68  Retardation;
    2-1              (2)  the commissioner of mental health and mental
    2-2  retardation; and
    2-3              (3)  <the medical director;>
    2-4              <(4)  the deputy commissioner for mental health
    2-5  services;>
    2-6              <(5)  the deputy commissioner for mental retardation
    2-7  services; and>
    2-8              <(6)>  a staff under the direction of the
    2-9  commissioner<, medical director, and deputy commissioners>.
   2-10        SECTION 4.  Section 532.003(b), Health and Safety Code, is
   2-11  amended to read as follows:
   2-12        (b)  The members must be representatives of the public who
   2-13  have demonstrated interest in mental health, mental retardation,
   2-14  developmental disabilities, or the health and human services
   2-15  system.
   2-16        SECTION 5.  Sections 532.011(e) and (g), Health and Safety
   2-17  Code, are amended to read as follows:
   2-18        (e)  The commissioner shall:
   2-19              (1)  establish qualifications for <assistant deputy
   2-20  commissioners and important> department personnel that balance
   2-21  clinical and programmatic knowledge and management experience; and
   2-22              (2)  standardize qualifications for personnel positions
   2-23  throughout the department.
   2-24        (g)  The commissioner is responsible for implementation of
   2-25  the board's planning, policy, resource development and allocation,
   2-26  and oversight related to <the state> mental health <authority> and
   2-27  <the state> mental retardation services <authority>.
   2-28        SECTION 6.  Sections 532.012(a) and (c), Health and Safety
   2-29  Code, are amended to read as follows:
   2-30        (a)  The commissioner shall appoint a medical director<,
   2-31  subject to board approval>.
   2-32        (c)  The medical director reports to the commissioner and is
   2-33  responsible for:
   2-34              (1)  oversight of the quality and appropriateness of
   2-35  clinical services <by developing policies relating to clinical
   2-36  services regulated by the department and those services> delivered
   2-37  in department facilities or under contract to the department; and
   2-38              (2)  leadership in <directing the standards and quality
   2-39  assurance program, a utilization review program, a> physician
   2-40  recruitment and retention <program,> and <a> peer review <program
   2-41  for physicians and other clinical staff employed by or under
   2-42  contract to the department>.
   2-43        SECTION 7.  Section 532.014(a), Health and Safety Code, is
   2-44  amended to read as follows:
   2-45        (a)  The <With the board's approval, the> commissioner shall
   2-46  appoint the head of each facility the department administers.
   2-47        SECTION 8.  Sections 533.035(a)-(c), Health and Safety Code,
   2-48  are amended to read as follows:
   2-49        (a)  The commissioner shall designate a local mental health
   2-50  authority and a local mental retardation authority in one or more
   2-51  <each> local service areas.  The board may delegate to the local
   2-52  authorities the board's authority and responsibility for the
   2-53  planning, policy development, coordination, resource allocation,
   2-54  and resource development for and oversight of <area to plan,
   2-55  facilitate, coordinate, and provide> mental health and mental
   2-56  retardation services in that service area.  The commissioner may
   2-57  designate a single entity as the mental health authority and the
   2-58  mental retardation authority for a service area.
   2-59        (b)  The department by contract or other method of allocation
   2-60  may disburse to a local mental health and mental retardation
   2-61  authority department federal <mental health funds> and department
   2-62  state funds to be spent in the local service area for:
   2-63              (1)  community mental health and mental retardation
   2-64  services; and
   2-65              (2)  chemical dependency services for persons who are
   2-66  dually diagnosed as having both chemical dependency and mental
   2-67  illness or mental retardation.
   2-68        (c)  A local mental health and mental retardation authority,
   2-69  with the department's approval, shall use the funds received under
   2-70  Subsection (b) to ensure <provide> mental health, mental
    3-1  retardation, and chemical dependency services are provided in the
    3-2  local service area.  The local authority shall consider public
    3-3  input, ultimate cost-benefit, and client care issues to ensure
    3-4  consumer choice and the best use of public money in:
    3-5              (1)  assembling a network of service providers; and
    3-6              (2)  determining whether to become a provider of a
    3-7  service or to contract that service to another organization <or to
    3-8  subcontract for those services>.
    3-9        SECTION 9.  Subchapter B, Chapter 533, Health and Safety
   3-10  Code, is amended by adding Section 533.0355 to read as follows:
   3-11        Sec. 533.0355.  AUTHORITY STRUCTURE PILOT PROJECT.  (a)
   3-12  Notwithstanding other law, the board may implement a pilot project
   3-13  to study an authority structure for service delivery at the local
   3-14  or regional level through a pilot local mental health or mental
   3-15  retardation authority.  The project shall provide an
   3-16  organizational separation between the pilot local mental health or
   3-17  mental retardation authority and service providers.  The board may
   3-18  delegate to a pilot local mental health or mental retardation
   3-19  authority the responsibility for the distribution, allocation, and
   3-20  coordination of mental health or mental retardation service
   3-21  resources in one or more service areas, including the
   3-22  responsibility to make policy determinations, develop resources,
   3-23  enter service contracts, and plan to meet future needs for services
   3-24  in each service area.
   3-25        (b)  The board may establish one or more pilot local mental
   3-26  health and mental retardation authorities under this section.
   3-27        (c)  If the board establishes a pilot program, the department
   3-28  shall:
   3-29              (1)  evaluate the pilot project at least annually to
   3-30  determine the feasibility of employing the authority structure in
   3-31  other areas of the state or statewide;
   3-32              (2)  prepare a report on the success of the pilot
   3-33  project that includes a list of statutory restrictions that would
   3-34  impair the permanent implementation of the authority structure in
   3-35  other areas of the state and suggested legislative changes; and
   3-36              (3)  submit the report to the 75th and 76th
   3-37  legislatures on January 15, 1997, and January 15, 1999,
   3-38  respectively.
   3-39        (d)  This section expires September 1, 1999.
   3-40        SECTION 10.  Subchapter D, Chapter 533, Health and Safety
   3-41  Code, is amended by adding Section 533.087 to read as follows:
   3-42        Sec. 533.087.  LEASE OF REAL PROPERTY.  (a)  The department
   3-43  may lease real property, including any improvements under the
   3-44  department's management and control, regardless of whether the
   3-45  property is surplus property.  Except as provided by Subsection
   3-46  (c), the department may award a lease of real property only:
   3-47              (1)  at the prevailing market rate; and
   3-48              (2)  by competitive bid.
   3-49        (b)  The department shall advertise a proposal for lease at
   3-50  least once a week for four consecutive weeks in:
   3-51              (1)  a newspaper published in the municipality in which
   3-52  the property is located or the daily newspaper published nearest to
   3-53  the property's location; and
   3-54              (2)  a newspaper of statewide circulation.
   3-55        (c)  The department may lease real property or an improvement
   3-56  for less than the prevailing market rate, without advertisement or
   3-57  without competitive bidding, if:
   3-58              (1)  the board determines that sufficient public
   3-59  benefit will be derived from the lease; and
   3-60              (2)  the property is leased to:
   3-61                    (A)  a federal or state agency;
   3-62                    (B)  a unit of local government;
   3-63                    (C)  a not-for-profit organization; or
   3-64                    (D)  an entity related to the department by a
   3-65  service contract.
   3-66        (d)  The board shall adopt leasing rules, forms, and
   3-67  contracts that will protect the state's interests.
   3-68        (e)  The board may reject any bid.
   3-69        (f)  This section does not authorize the department to close
   3-70  or consolidate a facility used to provide mental health or mental
    4-1  retardation services without legislative approval.
    4-2        SECTION 11.  Section 534.022, Health and Safety Code, is
    4-3  amended by adding Subsection (e) to read as follows:
    4-4        (e)  A county or municipality acting alone or two or more
    4-5  counties or municipalities acting jointly pursuant to interlocal
    4-6  contract may create a public facility corporation to act on behalf
    4-7  of one or more community centers pursuant to the Public Facility
    4-8  Corporation Act (Article 717s, Revised Statutes).  Such counties or
    4-9  municipalities may exercise the powers of a sponsor under that Act,
   4-10  and any such corporation may exercise the powers of a corporation
   4-11  under that Act (including but not limited to the power to issue
   4-12  bonds).  The corporation may exercise its powers on behalf of
   4-13  community centers in such manner as may be prescribed by the
   4-14  articles and bylaws of the corporation, provided that in no event
   4-15  shall one community center ever be liable to pay the debts or
   4-16  obligation or be liable for the acts, actions, or undertakings of
   4-17  another community center.
   4-18        SECTION 12.  Sections 534.054(a) and (d), Health and Safety
   4-19  Code, are amended to read as follows:
   4-20        (a)  The department shall identify and contract with a local
   4-21  mental health or mental retardation authority for each service area
   4-22  to ensure that <provide> services are provided to patient and
   4-23  client populations determined by the department.  A local mental
   4-24  health or mental retardation authority shall ensure that <provide,
   4-25  directly or by subcontract,> services to address the needs of
   4-26  priority populations are provided as required by the department and
   4-27  shall comply with the rules and standards adopted under Section
   4-28  534.052.
   4-29        (d)  The department shall ensure that <provide> the required
   4-30  services are provided in a service area directly through the
   4-31  community services division of a department facility <outreach
   4-32  program> or contract with another agency, entity <provider>, or
   4-33  organization as the local mental health or mental retardation
   4-34  authority if the department cannot identify and contract with a
   4-35  community center in that service area.
   4-36        SECTION 13.  Sections 534.055(d) and (e), Health and Safety
   4-37  Code, are amended to read as follows:
   4-38        (d)  The department shall design a competitive procurement or
   4-39  similar system that a mental health or mental retardation authority
   4-40  shall use in awarding an initial contract under this section.  <To
   4-41  facilitate continuity of services and to prevent disruption of
   4-42  services, a mental health or mental retardation authority may not
   4-43  require competitive bidding on the renewal of a contract.>
   4-44        (e)  The system must require that each mental health or
   4-45  mental retardation authority:
   4-46              (1)  ensure public participation in the authority's
   4-47  decisions regarding whether to provide or to contract for a
   4-48  service;
   4-49              (2)  make a reasonable effort to give notice of the
   4-50  intent to contract for services to each potential private provider
   4-51  in the local service area of the authority; and
   4-52              (3) <(2)>  review each submitted proposal and award the
   4-53  contract to the applicant that the authority determines has made
   4-54  the lowest and best bid to provide the needed services.
   4-55        SECTION 14.  Section 534.064, Health and Safety Code, is
   4-56  amended to read as follows:
   4-57        Sec. 534.064.  Contract Renewal.  The commissioner may refuse
   4-58  to renew a contract with a local mental health or mental
   4-59  retardation authority and may select other agencies, entities
   4-60  <providers>, or organizations to be the local mental health or
   4-61  mental retardation authority if the department's evaluation of the
   4-62  authority's performance indicates that the authority cannot ensure
   4-63  the availability of the specific services to priority populations
   4-64  required by the department and this subtitle.
   4-65        SECTION 15.  Section 534.065(b), Health and Safety Code, is
   4-66  amended to read as follows:
   4-67        (b)  The mental health or mental retardation authority shall
   4-68  renew the contract if the authority finds that:
   4-69              (1)  funding is available;
   4-70              (2)  the authority plans to continue the services;
    5-1              (3)  the provider is in substantial compliance with
    5-2  each material provision of the contract, unless the authority
    5-3  determines that the provision is not legal and enforceable under
    5-4  applicable state and federal law;
    5-5              (4)  the provider is providing a reasonably adequate
    5-6  level of service in accordance with the contract and at a
    5-7  reasonable cost;
    5-8              (5)  the provider agrees to a renewal contract that is
    5-9  substantially in compliance with a model contract developed by the
   5-10  department under Section 534.055;
   5-11              (6)  the provider was during the term of any contract
   5-12  with the authority and is at the time of renewal in compliance with
   5-13  applicable laws governing the subject matter of the contract; and
   5-14              (7)  neither the provider nor any of its officers,
   5-15  directors, or principal employees has been convicted or found by a
   5-16  final administrative decision to have been guilty of fraud or abuse
   5-17  in the provision of health care services under a contract with a
   5-18  state or federal agency.
   5-19        SECTION 16.  Section 534.066(b), Health and Safety Code, is
   5-20  amended to read as follows:
   5-21        (b)  The department shall establish, for community services
   5-22  divisions of department facilities <facility outreach programs>
   5-23  that provide community-based services required under this
   5-24  subchapter, a local match requirement that is consistent with the
   5-25  requirements applied to other local mental health or mental
   5-26  retardation authorities.
   5-27        SECTION 17.  Sections 551.022(c) and (d), Health and Safety
   5-28  Code, are amended to read as follows:
   5-29        (c)  The superintendent shall:
   5-30              (1)  oversee the admission and discharge of <admit and
   5-31  discharge> patients and clients;
   5-32              (2)  keep a register of all patients and clients
   5-33  admitted to or discharged from the facility;
   5-34              (3)  supervise repairs and improvements to the
   5-35  facility;
   5-36              (4)  ensure that facility money <entrusted to the
   5-37  superintendent> is spent judiciously and economically;
   5-38              (5)  keep an accurate and detailed account of all money
   5-39  received and spent, stating the source of the money and to whom and
   5-40  the purpose for which the money is spent; and
   5-41              (6)  keep a full record of the facility's operations.
   5-42        (d)  In accordance with board rules and departmental
   5-43  operating procedures, the <The> superintendent may:
   5-44              (1)  establish policy <rules> to govern the facility
   5-45  that the superintendent considers will best promote the patients'
   5-46  and clients' interest and welfare;
   5-47              (2)  appoint subordinate officers, teachers,
   5-48  <attendants,> and other employees and set their salaries, in the
   5-49  absence of other law; and
   5-50              (3)  remove an officer, teacher, or employee for good
   5-51  cause <and with the board's consent>.
   5-52        SECTION 18.  Sections 532.013, 533.064, 534.062, 551.021, and
   5-53  551.023, Health and Safety Code, are repealed.
   5-54        SECTION 19.  (a)  The changes in law made by this Act apply
   5-55  only to an action taken by the Texas Board of Mental Health and
   5-56  Mental Retardation, the Texas Department of Mental Health and
   5-57  Mental Retardation, or the commissioner of mental health and mental
   5-58  retardation or to an appointment made by the governor on or after
   5-59  September 1, 1995.
   5-60        (b)  An action taken or appointment made before September 1,
   5-61  1995, is governed by the law in effect when the action was  taken
   5-62  or appointment was made, and that law is continued in effect for
   5-63  that purpose.
   5-64        (c)  The change in law made by this Act in the qualifications
   5-65  of  members of the Texas Board of Mental Health and Mental
   5-66  Retardation does not affect the entitlement of a member of that
   5-67  board who was appointed before September 1, 1995, to continue to
   5-68  hold office for the term to which the member was appointed.  The
   5-69  change in qualifications applies only to a member appointed on or
   5-70  after September 1, 1995.
    6-1        SECTION 20.  Nothing in this Act authorizes the department to
    6-2  privatize the administration of state facilities.
    6-3        SECTION 21.  This Act takes effect September 1, 1995.
    6-4        SECTION 22.  The importance of this legislation and the
    6-5  crowded condition of the calendars in both houses create an
    6-6  emergency and an imperative public necessity that the
    6-7  constitutional rule requiring bills to be read on three several
    6-8  days in each house be suspended, and this rule is hereby suspended.
    6-9                               * * * * *