SRC-SLL H.B. 1734 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1734
By: Delisi (Moncrief)
Health & Human Services
5-12-97
Engrossed


DIGEST 

The Texas Performance Review found that despite a 1987 law requiring the
Texas Department of Mental Health and Mental Retardation to enter into
memoranda of understanding with other state agencies that contract with
community mental health and mental retardation centers, widespread
duplication of monitoring continues to be a problem.  Specifically, there
are duplicative financial auditing and performance monitoring.  This bill
will provide regulations regarding the monitoring of community mental
health and mental retardation centers and local mental health and mental
retardation authorities. 

PURPOSE

As proposed, H.B. 1734 provides regulations regarding the monitoring of
community mental health and mental retardation centers and local mental
health and mental retardation authorities. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 533.035, Health and Safety Code, by amending
Subsection (b) and adding Subsection (e), to authorize the Texas
Department of Mental Health and Mental Retardation (MHMR) by a case-rate
or capitated arrangement to disburse to a local mental health and mental
retardation authority department federal and MHMR state funds to be spent
in the local service area for certain services.  Requires MHMR to develop
by September 1, 1998, a plan that addresses certain items.   

SECTION 2. Amends Chapter 534A, Health and Safety Code, by adding Section
534.036, as follows: 

Sec.  534.036.  FINANCIAL AUDIT.  Sets forth regulations regarding
financial audits of community centers by MHMR. 

SECTION 3. Amends Chapter 534A, Health and Safety Code, by adding 534.037,
as follows: 

Sec.  534.037.  PROGRAM AUDIT.  Sets forth regulations regarding program
audits of the activities of a community center. 

SECTION 4. Amends Section 534.060(b), Health and Safety Code, to require
MHMR to review the program quality and program performance results of each
local mental health or mental retardation authority in accordance with a
risk assessment and evaluation system appropriate to contract
requirements.  Deletes a provision requiring the review to take place at
least once each fiscal year. 

SECTION 5. Repealers: Sections 534.034 and 534.054(b) and (d), Health and
Safety Code (Memorandum of Understanding on Program Reviews, and
regulations for designated providers).  

SECTION 6. (a) Effective date: September 1, 1997.
 
(b) Requires MHMR to prescribe and receive approval of the Health and
Human Services Commission for procedures for audits under Sections 534.036
and 534.037, Health and Safety Code, as added by this Act, not later than
January 1, 1998.  Requires the Health and Human Services Commission to
make a ruling on the procedures not later than 30 days after the date MHMR
prescribed the procedures. 

SECTION 7. Emergency clause.