Amend HB 1734 as follows:
      Strike subsection (e) of SECTION 1 of the bill (Engrossed
printing page 1, line 19 through page 2, line 12) and substitute
the following:
      (e)  The Board shall direct the Commissioner to appoint a
committee to develop a plan which recommends:
            (1)  the most efficient and effective number of local
authorities;
            (2)  the scope of responsibilities to be delegated by
the state authority to the local authority;
            (3)  criteria by which local authorities shall be
selected, including:
                  (A)  demonstrated ability to assure consumer and
family member participation in service planning and service
evaluation;
                  (B)  ability to demonstrate public accountability
for service costs, quality, and outcomes for persons served;
                  (C)  demonstrated ability to assemble and manage
a network of service providers, assuring consumer choice;
                  (D)  demonstrated ability to coordinate and
direct a comprehensive array of mental health or mental retardation
services; and
                  (E)  a requirement that local authorities comply
with V.T.C.A. Government Code Chapters 551 and 552;
            (4)  a selection process that:
                  (A)  allows all qualified and interested entities
to be fairly and objectively considered for the designation as a
local authority; and
                  (B)   results in a final selection that is based
on cost effectiveness and ultimately the best interest of consumers
and their families;
            (5)  criteria to ensure that contracting by the local
authorities with providers:
                  (A)  allows all qualified providers to be
eligible to compete for contracts;
                  (B)  results in the selection of the best bid,
evaluated by cost-effectiveness and quality; and
                  (C)  promotes choice by consumers among services
and service providers;
            (6)  a time frame for implementation; and
            (7)  strategies to ensure that services are not
disrupted.
      (f)  The Commissioner shall assure that:
            (1)  the committee membership includes an equal number
of representatives of consumers, family members, existing local
authorities, and private sector entities, including not for profit
and for profit entities;
            (2)  safeguards are established to prevent any member
from participating in the adoption of specific selection or bid
criteria, any committee decision or any other action that may
result in an unfair competitive advantage or otherwise compromise
the selection process; and
            (3)  the committee deliberations are fully accessible
to the public with ample opportunities for public input and
participation.
      (g)  The plan approved by the committee shall be submitted to
the Board for approval.  Prior to approval of the plan, the Board
shall provide:
            (1)  public notice of its intent to consider the
proposed plan;
            (2)  an opportunity for public hearings on the proposed
plan; and
            (3)  public access to the proposed plan.
      (h)  The Board shall submit the approved plan to the Senate
Health and Human Services Committee and the House Public Health
Committee by September 1, 1998.