1-1 By: Delisi (Senate Sponsor - Moncrief) H.B. No. 1734
1-2 (In the Senate - Received from the House May 8, 1997;
1-3 May 9, 1997, read first time and referred to Committee on Health
1-4 and Human Services; May 17, 1997, reported favorably, as amended,
1-5 by the following vote: Yeas 10, Nays 0; May 17, 1997, sent to
1-6 printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Moncrief
1-8 Amend Engrossed HB 1734 as follows:
1-9 Strike subsection (e) of SECTION 1 of the bill (Engrossed
1-10 printing page 2, line 28 through page 2, line 45) and substitute
1-11 the following:
1-12 (e) The Board shall direct the Commissioner to appoint
1-13 a committee to develop a plan which recommends:
1-14 (1) the most efficient and effective number of local
1-15 authorities;
1-16 (2) the scope of responsibilities to be delegated by
1-17 the state authority to the local authority;
1-18 (3) criteria by which local authorities shall be
1-19 selected, including:
1-20 (A) demonstrated ability to assure consumer and
1-21 family member participation in service planning and service
1-22 evaluation;
1-23 (B) ability to demonstrate public accountability
1-24 for service costs, quality, and outcomes for persons served;
1-25 (C) demonstrated ability to assemble and manage
1-26 a network of service providers, assuring consumer choice;
1-27 (D) demonstrated ability to coordinate and
1-28 direct a comprehensive array of mental health or mental retardation
1-29 services; and
1-30 (E) a requirement that local authorities comply
1-31 with V.T.C.A. Government Code Chapters 551 and 552;
1-32 (4) a selection process that:
1-33 (A) allows all qualified and interested entities
1-34 to be fairly and objectively considered for the designation as a
1-35 local authority; and
1-36 (B) results in a final selection that is based
1-37 on cost effectiveness and ultimately the best interest of consumers
1-38 and their families;
1-39 (5) criteria to ensure that contracting by the local
1-40 authorities with providers:
1-41 (A) allows all qualified providers to be
1-42 eligible to compete for contracts;
1-43 (B) results in the selection of the best bid,
1-44 evaluated by cost-effectiveness and quality; and
1-45 (C) promotes choice by consumers among services
1-46 and service providers;
1-47 (6) a time frame for implementation; and
1-48 (7) strategies to ensure that services are not
1-49 disrupted.
1-50 (f) The Commissioner shall assure that:
1-51 (1) the committee membership includes an equal number
1-52 of representatives of consumers, family members, existing local
1-53 authorities, and private sector entities, including not for profit
1-54 and for profit entities;
1-55 (2) safeguards are established to prevent any member
1-56 from participating in the adoption of specific selection or bid
1-57 criteria, any committee decision or any other action that may
1-58 result in an unfair competitive advantage or otherwise compromise
1-59 the selection process; and
1-60 (3) the committee deliberations are fully accessible
1-61 to the public with ample opportunities for public input and
1-62 participation.
1-63 (g) The plan approved by the committee shall be submitted to
1-64 the Board for approval. Prior to approval of the plan, the Board
2-1 shall provide:
2-2 (1) public notice of its intent to consider the
2-3 proposed plan;
2-4 (2) an opportunity for public hearings on the proposed
2-5 plan; and
2-6 (3) public access to the proposed plan.
2-7 (h) The Board shall submit the approved plan to the Senate
2-8 Health and Human Services Committee and the House Public Health
2-9 Committee by September 1, 1998.
2-10 A BILL TO BE ENTITLED
2-11 AN ACT
2-12 relating to the monitoring of community mental health and mental
2-13 retardation centers and local mental health and mental retardation
2-14 authorities.
2-15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-16 SECTION 1. Section 533.035, Health and Safety Code, is
2-17 amended by amending Subsection (b) and adding Subsection (e) to
2-18 read as follows:
2-19 (b) The department by contract or other method of
2-20 allocation, including a case-rate or capitated arrangement, may
2-21 disburse to a local mental health and mental retardation authority
2-22 department federal and department state funds to be spent in the
2-23 local service area for:
2-24 (1) community mental health and mental retardation
2-25 services; and
2-26 (2) chemical dependency services for persons who are
2-27 dually diagnosed as having both chemical dependency and mental
2-28 illness or mental retardation.
2-29 (e) The department shall develop by September 1, 1998, a
2-30 plan that:
2-31 (1) identifies the most efficient and effective number
2-32 of local authorities;
2-33 (2) includes a competitive process for designation of
2-34 local mental health or mental retardation authorities;
2-35 (3) specifies criteria to ensure that contracting by
2-36 the local authorities with providers:
2-37 (A) allows all qualified providers to be
2-38 eligible to compete for contracts;
2-39 (B) results in a selection of the best bid,
2-40 evaluated by cost-effectiveness and quality; and
2-41 (C) promotes choice by consumers among services
2-42 and service providers;
2-43 (4) includes strategies to ensure that services are
2-44 not disrupted; and
2-45 (5) includes a timetable for implementation of the
2-46 plan.
2-47 SECTION 2. Subchapter A, Chapter 534, Health and Safety
2-48 Code, is amended by adding Section 534.036 to read as follows:
2-49 Sec. 534.036. FINANCIAL AUDIT. (a) The department shall
2-50 prescribe procedures for financial audits of community centers.
2-51 The department shall develop the procedures with the assistance of
2-52 the state agencies and departments that contract with community
2-53 centers. The department shall coordinate with each of those state
2-54 agencies and departments to incorporate each agency's financial and
2-55 compliance requirements for a community center into a single audit
2-56 that meets the requirements of Section 534.068. Before prescribing
2-57 or amending the procedures, the department shall set a deadline for
2-58 those state agencies and departments to submit to the department
2-59 proposals relating to the financial audit procedures. The
2-60 procedures must be consistent with any requirements connected with
2-61 federal funding received by the community center. The department
2-62 may not implement the procedures without the approval of the Health
2-63 and Human Services Commission.
2-64 (b) Each state agency or department that contracts with a
2-65 community center shall comply with the procedures developed under
2-66 this section.
2-67 (c) The department shall develop protocols for a state
2-68 agency or department to conduct additional financial audit
2-69 activities of a community center. A state agency or department may
3-1 not conduct additional financial audit activities of a community
3-2 center without the approval of the Health and Human Services
3-3 Commission.
3-4 (d) The department shall evaluate the fiscal impact of
3-5 financial audit procedures developed under this section. The
3-6 department shall complete the evaluation and submit a report to
3-7 each house of the legislature not later than December 1, 1998.
3-8 This subsection expires January 1, 1999.
3-9 SECTION 3. Subchapter A, Chapter 534, Health and Safety
3-10 Code, is amended by adding Section 534.037 to read as follows:
3-11 Sec. 534.037. PROGRAM AUDIT. (a) The department shall
3-12 coordinate with each state agency or department that contracts with
3-13 a community center to prescribe procedures based on risk assessment
3-14 for coordinated program audits of the activities of a community
3-15 center. The department may not implement the procedures without
3-16 the approval of the Health and Human Services Commission. The
3-17 procedures must be consistent with any requirements connected with
3-18 federal funding received by the community center.
3-19 (b) A program audit of a community center must be performed
3-20 in accordance with procedures developed under this section.
3-21 (c) This section does not prohibit a state agency or
3-22 department or an entity providing funding to a community center
3-23 from investigating a complaint against or performing additional
3-24 contract monitoring of a community center.
3-25 (d) A program audit under this section must evaluate:
3-26 (1) the extent to which the community center is
3-27 achieving the desired results or benefits established by the
3-28 legislature or by a state agency or department;
3-29 (2) the effectiveness of the community center's
3-30 organizations, programs, activities, or functions; and
3-31 (3) whether the community center is in compliance with
3-32 applicable laws.
3-33 (e) The department shall evaluate the fiscal impact of the
3-34 program audit procedures developed under this section. The
3-35 department shall complete the evaluation and submit a report to
3-36 each house of the legislature not later than December 1, 1998.
3-37 This subsection expires January 1, 1999.
3-38 SECTION 4. Section 534.060(b), Health and Safety Code, is
3-39 amended to read as follows:
3-40 (b) The department shall review the program quality and
3-41 program performance results of each local mental health or mental
3-42 retardation authority in accordance with a risk assessment and
3-43 evaluation system appropriate to contract requirements [at least
3-44 once each fiscal year]. The department may determine the scope of
3-45 each review.
3-46 SECTION 5. Sections 534.034 and 534.054(b) and (d), Health
3-47 and Safety Code, are repealed.
3-48 SECTION 6. (a) This Act takes effect September 1, 1997.
3-49 (b) The Texas Department of Mental Health and Mental
3-50 Retardation shall prescribe and receive approval of the Health and
3-51 Human Services Commission for procedures for audits under Sections
3-52 534.036 and 534.037, Health and Safety Code, as added by this Act,
3-53 not later than January 1, 1998. The commission shall make a ruling
3-54 on the procedures not later than 30 days after the date the
3-55 department prescribed the procedures.
3-56 SECTION 7. The importance of this legislation and the
3-57 crowded condition of the calendars in both houses create an
3-58 emergency and an imperative public necessity that the
3-59 constitutional rule requiring bills to be read on three several
3-60 days in each house be suspended, and this rule is hereby suspended.
3-61 * * * * *