75R12271 SKB-D
By Delisi H.B. No. 1734
Substitute the following for H.B. No. 1734:
By Berlanga C.S.H.B. No. 1734
A BILL TO BE ENTITLED
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 Subsection (e) to
1-8 read as follows:
1-9 (b) The department by contract or other method of
1-10 allocation, including a case-rate or per capita 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 department shall develop by September 1, 1998, a
1-20 plan that:
1-21 (1) identifies the most efficient and effective number
1-22 of local authorities;
1-23 (2) includes a competitive process for designation of
1-24 local mental health or mental retardation authorities;
2-1 (3) specifies criteria to ensure that contracting by
2-2 the local authorities with providers:
2-3 (A) allows all qualified providers to be
2-4 eligible to compete for contracts;
2-5 (B) results in a selection of the best bid,
2-6 evaluated by cost-effectiveness and quality; and
2-7 (C) promotes choice by consumers among services
2-8 and service providers;
2-9 (4) includes strategies to ensure that services are
2-10 not disrupted; and
2-11 (5) includes a timetable for implementation of the
2-12 plan.
2-13 SECTION 2. Subchapter A, Chapter 534, Health and Safety
2-14 Code, is amended by adding Section 534.036 to read as follows:
2-15 Sec. 534.036. FINANCIAL AUDIT. (a) The department shall
2-16 prescribe procedures for financial audits of community centers.
2-17 The department shall develop the procedures with the assistance of
2-18 the state agencies and departments that contract with community
2-19 centers. The department shall coordinate with each of those state
2-20 agencies and departments to incorporate each agency's financial and
2-21 compliance requirements for a community center into a single audit
2-22 that meets the requirements of Section 534.068. Before prescribing
2-23 or amending the procedures, the department shall set a deadline for
2-24 those state agencies and departments to submit to the department
2-25 proposals relating to the financial audit procedures. The
2-26 procedures must be consistent with any requirements connected with
2-27 federal funding received by the community center. The department
3-1 may not implement the procedures without the approval of the Health
3-2 and Human Services Commission.
3-3 (b) Each state agency or department that contracts with a
3-4 community center shall comply with the procedures developed under
3-5 this section.
3-6 (c) The department shall develop protocols for a state
3-7 agency or department to conduct additional financial audit
3-8 activities of a community center. A state agency or department may
3-9 not conduct additional financial audit activities of a community
3-10 center without the approval of the Health and Human Services
3-11 Commission.
3-12 (d) The department shall evaluate the fiscal impact of
3-13 financial audit procedures developed under this section. The
3-14 department shall complete the evaluation and submit a report to
3-15 each house of the legislature not later than December 1, 1998.
3-16 This subsection expires January 1, 1999.
3-17 SECTION 3. Subchapter A, Chapter 534, Health and Safety
3-18 Code, is amended by adding Section 534.037 to read as follows:
3-19 Sec. 534.037. PROGRAM AUDIT. (a) The department shall
3-20 coordinate with each state agency or department that contracts with
3-21 a community center to prescribe procedures based on risk assessment
3-22 for coordinated program audits of the activities of a community
3-23 center. The department may not implement the procedures without
3-24 the approval of the Health and Human Services Commission. The
3-25 procedures must be consistent with any requirements connected with
3-26 federal funding received by the community center.
3-27 (b) A program audit of a community center must be performed
4-1 in accordance with procedures developed under this section.
4-2 (c) This section does not prohibit a state agency or
4-3 department or an entity providing funding to a community center
4-4 from investigating a complaint against or performing additional
4-5 contract monitoring of a community center.
4-6 (d) A program audit under this section must evaluate:
4-7 (1) the extent to which the community center is
4-8 achieving the desired results or benefits established by the
4-9 legislature or by a state agency or department;
4-10 (2) the effectiveness of the community center's
4-11 organizations, programs, activities, or functions; and
4-12 (3) whether the community center is in compliance with
4-13 applicable laws.
4-14 (e) The department shall evaluate the fiscal impact of the
4-15 program audit procedures developed under this section. The
4-16 department shall complete the evaluation and submit a report to
4-17 each house of the legislature not later than December 1, 1998.
4-18 This subsection expires January 1, 1999.
4-19 SECTION 4. Section 534.060(b), Health and Safety Code, is
4-20 amended to read as follows:
4-21 (b) The department shall review the program quality and
4-22 program performance results of each local mental health or mental
4-23 retardation authority in accordance with a risk assessment and
4-24 evaluation system appropriate to contract requirements [at least
4-25 once each fiscal year]. The department may determine the scope of
4-26 each review.
4-27 SECTION 5. Sections 534.034 and 534.054(b) and (d), Health
5-1 and Safety Code, are repealed.
5-2 SECTION 6. (a) This Act takes effect September 1, 1997.
5-3 (b) The Texas Department of Mental Health and Mental
5-4 Retardation shall prescribe and receive approval of the Health and
5-5 Human Services Commission for procedures for audits under Sections
5-6 534.036 and 534.037, Health and Safety Code, as added by this Act,
5-7 not later than January 1, 1998. The commission shall make a ruling
5-8 on the procedures not later than 30 days after the date the
5-9 department prescribed the procedures.
5-10 SECTION 7. The importance of this legislation and the
5-11 crowded condition of the calendars in both houses create an
5-12 emergency and an imperative public necessity that the
5-13 constitutional rule requiring bills to be read on three several
5-14 days in each house be suspended, and this rule is hereby suspended.