1-1 AN ACT
1-2 relating to the monitoring of community mental health and mental
1-3 retardation centers and local mental health and mental retardation
1-4 authorities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 533.035, Health and Safety Code, is
1-7 amended by amending Subsection (b) and adding Subsections (e)-(h)
1-8 to read as follows:
1-9 (b) The department by contract or other method of
1-10 allocation, including a case-rate or capitated arrangement, may
1-11 disburse to a local mental health and mental retardation authority
1-12 department federal and department state funds to be spent in the
1-13 local service area for:
1-14 (1) community mental health and mental retardation
1-15 services; and
1-16 (2) chemical dependency services for persons who are
1-17 dually diagnosed as having both chemical dependency and mental
1-18 illness or mental retardation.
1-19 (e) The board shall direct the commissioner to appoint a
1-20 committee to develop a plan which recommends:
1-21 (1) the most efficient and effective number of local
1-22 authorities;
1-23 (2) the scope of responsibilities to be delegated by
1-24 the state authority to the local authority;
2-1 (3) criteria by which local authorities shall be
2-2 selected, including:
2-3 (A) demonstrated ability to assure consumer and
2-4 family member participation in service planning and service
2-5 evaluation;
2-6 (B) ability to demonstrate public accountability
2-7 for service costs, quality, and outcomes for persons served;
2-8 (C) demonstrated ability to assemble and manage
2-9 a network of service providers, assuring consumer choice;
2-10 (D) demonstrated ability to coordinate and
2-11 direct a comprehensive array of mental health or mental retardation
2-12 services; and
2-13 (E) a requirement that local authorities comply
2-14 with Chapters 551 and 552, Government Code;
2-15 (4) a selection process that:
2-16 (A) allows all qualified and interested entities
2-17 to be fairly and objectively considered for the designation as a
2-18 local authority; and
2-19 (B) results in a final selection that is based
2-20 on cost-effectiveness and ultimately the best interest of consumers
2-21 and their families;
2-22 (5) criteria to ensure that contracting by the local
2-23 authorities with providers:
2-24 (A) allows all qualified providers to be
2-25 eligible to compete for contracts;
2-26 (B) results in the selection of the best bid,
2-27 evaluated by cost-effectiveness and quality; and
3-1 (C) promotes choice by consumers among services
3-2 and service providers;
3-3 (6) a time frame for implementation; and
3-4 (7) strategies to ensure that services are not
3-5 disrupted.
3-6 (f) The commissioner shall assure that:
3-7 (1) the committee membership includes an equal number
3-8 of representatives of consumers, family members, existing local
3-9 authorities, and private sector entities, including not-for-profit
3-10 and for-profit entities;
3-11 (2) safeguards are established to prevent any member
3-12 from participating in the adoption of specific selection or bid
3-13 criteria, any committee decision, or any other action that may
3-14 result in an unfair competitive advantage or otherwise compromise
3-15 the selection process; and
3-16 (3) the committee deliberations are fully accessible
3-17 to the public with ample opportunities for public input and
3-18 participation.
3-19 (g) The plan approved by the committee shall be submitted to
3-20 the board for approval. Prior to approval of the plan, the board
3-21 shall provide:
3-22 (1) public notice of its intent to consider the
3-23 proposed plan;
3-24 (2) an opportunity for public hearings on the proposed
3-25 plan; and
3-26 (3) public access to the proposed plan.
3-27 (h) The board shall submit the approved plan to the Senate
4-1 Health and Human Services Committee and the House Public Health
4-2 Committee by September 1, 1998.
4-3 SECTION 2. Subchapter A, Chapter 534, Health and Safety
4-4 Code, is amended by adding Section 534.036 to read as follows:
4-5 Sec. 534.036. FINANCIAL AUDIT. (a) The department shall
4-6 prescribe procedures for financial audits of community centers.
4-7 The department shall develop the procedures with the assistance of
4-8 the state agencies and departments that contract with community
4-9 centers. The department shall coordinate with each of those state
4-10 agencies and departments to incorporate each agency's financial and
4-11 compliance requirements for a community center into a single audit
4-12 that meets the requirements of Section 534.068. Before prescribing
4-13 or amending the procedures, the department shall set a deadline for
4-14 those state agencies and departments to submit to the department
4-15 proposals relating to the financial audit procedures. The
4-16 procedures must be consistent with any requirements connected with
4-17 federal funding received by the community center. The department
4-18 may not implement the procedures without the approval of the Health
4-19 and Human Services Commission.
4-20 (b) Each state agency or department that contracts with a
4-21 community center shall comply with the procedures developed under
4-22 this section.
4-23 (c) The department shall develop protocols for a state
4-24 agency or department to conduct additional financial audit
4-25 activities of a community center. A state agency or department may
4-26 not conduct additional financial audit activities of a community
4-27 center without the approval of the Health and Human Services
5-1 Commission.
5-2 (d) The department shall evaluate the fiscal impact of
5-3 financial audit procedures developed under this section. The
5-4 department shall complete the evaluation and submit a report to
5-5 each house of the legislature not later than December 1, 1998.
5-6 This subsection expires January 1, 1999.
5-7 SECTION 3. Subchapter A, Chapter 534, Health and Safety
5-8 Code, is amended by adding Section 534.037 to read as follows:
5-9 Sec. 534.037. PROGRAM AUDIT. (a) The department shall
5-10 coordinate with each state agency or department that contracts with
5-11 a community center to prescribe procedures based on risk assessment
5-12 for coordinated program audits of the activities of a community
5-13 center. The department may not implement the procedures without
5-14 the approval of the Health and Human Services Commission. The
5-15 procedures must be consistent with any requirements connected with
5-16 federal funding received by the community center.
5-17 (b) A program audit of a community center must be performed
5-18 in accordance with procedures developed under this section.
5-19 (c) This section does not prohibit a state agency or
5-20 department or an entity providing funding to a community center
5-21 from investigating a complaint against or performing additional
5-22 contract monitoring of a community center.
5-23 (d) A program audit under this section must evaluate:
5-24 (1) the extent to which the community center is
5-25 achieving the desired results or benefits established by the
5-26 legislature or by a state agency or department;
5-27 (2) the effectiveness of the community center's
6-1 organizations, programs, activities, or functions; and
6-2 (3) whether the community center is in compliance with
6-3 applicable laws.
6-4 (e) The department shall evaluate the fiscal impact of the
6-5 program audit procedures developed under this section. The
6-6 department shall complete the evaluation and submit a report to
6-7 each house of the legislature not later than December 1, 1998.
6-8 This subsection expires January 1, 1999.
6-9 SECTION 4. Section 534.060(b), Health and Safety Code, is
6-10 amended to read as follows:
6-11 (b) The department shall review the program quality and
6-12 program performance results of each local mental health or mental
6-13 retardation authority in accordance with a risk assessment and
6-14 evaluation system appropriate to contract requirements [at least
6-15 once each fiscal year]. The department may determine the scope of
6-16 each review.
6-17 SECTION 5. Sections 534.034 and 534.054(b) and (d), Health
6-18 and Safety Code, are repealed.
6-19 SECTION 6. (a) This Act takes effect September 1, 1997.
6-20 (b) The Texas Department of Mental Health and Mental
6-21 Retardation shall prescribe and receive approval of the Health and
6-22 Human Services Commission for procedures for audits under Sections
6-23 534.036 and 534.037, Health and Safety Code, as added by this Act,
6-24 not later than January 1, 1998. The commission shall make a ruling
6-25 on the procedures not later than 30 days after the date the
6-26 department prescribed the procedures.
6-27 SECTION 7. The importance of this legislation and the
7-1 crowded condition of the calendars in both houses create an
7-2 emergency and an imperative public necessity that the
7-3 constitutional rule requiring bills to be read on three several
7-4 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1734 was passed by the House on May
7, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1734 on May 24, 1997, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1734 was passed by the Senate, with
amendments, on May 22, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor