75R10272 SKB-F
By Delisi, Maxey H.B. No. 2226
Substitute the following for H.B. No. 2226:
By Glaze C.S.H.B. No. 2226
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to local mental health and mental retardation authorities
1-3 and community centers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 534.035(g), (h), and (i), Health and
1-6 Safety Code, are amended to read as follows:
1-7 (g) If, by the date prescribed by the commissioner, the
1-8 community center fails to respond to a deficiency identified in a
1-9 review or audit to the satisfaction of the commissioner, the
1-10 department may withhold [discontinue the transfer of] related
1-11 department funds to the community center until the dispute is
1-12 resolved in accordance with Section 534.059. [The community center
1-13 is entitled to notice and an opportunity for a hearing before the
1-14 transfer of department funds is discontinued. The board by rule
1-15 shall prescribe the hearings procedure.]
1-16 [(h) The department may withhold funds during the pendency
1-17 of an appeal to a court if the department hearing upholds the
1-18 discontinuation of the funds. The department shall transfer the
1-19 withheld funds to the community center if the final determination
1-20 is favorable to the community center.]
1-21 [(i)] The department shall incorporate the community
1-22 center's responses into the official management audit report in
1-23 accordance with the Government Auditing Standards published by the
1-24 United States General Accounting Office. The department shall
2-1 publish the final report within the period prescribed by department
2-2 rules, but not later than the 60th day after the date on which the
2-3 audit staff conducts the official exit conference with the
2-4 community center. If the department disagrees with the community
2-5 center's responses as provided by Subsection (f), the department
2-6 shall publish the official report within the period prescribed by
2-7 department rules.
2-8 SECTION 2. Subchapter A, Chapter 534, Health and Safety
2-9 Code, is amended by adding Section 534.036 to read as follows:
2-10 Sec. 534.036. MANAGEMENT IN CERTAIN CIRCUMSTANCES. (a) The
2-11 commissioner may appoint a management team or an individual to
2-12 manage and operate a community center if the commissioner finds:
2-13 (1) the community center has wilfully or negligently
2-14 failed to discharge its duties under a contract with the
2-15 department;
2-16 (2) an officer or employee of the center has misused
2-17 state or federal money;
2-18 (3) an officer or employee of the center has engaged
2-19 in a fraudulent act, transaction, practice, or course of business;
2-20 (4) the life, health, welfare, or safety of a person
2-21 served by the community center is or may be endangered by an act or
2-22 omission of the community center;
2-23 (5) the community center has failed to keep fiscal
2-24 records in accordance with Chapter 783, Government Code;
2-25 (6) the community center has failed to maintain proper
2-26 control over its assets in accordance with Chapter 783, Government
2-27 Code;
3-1 (7) the community center has failed to respond as
3-2 prescribed by the commissioner to a deficiency in a review or
3-3 audit; or
3-4 (8) the community center has failed to comply with
3-5 applicable sections of this subchapter and department rules.
3-6 (b) The department, in writing, shall notify the community
3-7 center and local agency or organizational combination of local
3-8 agencies responsible for making appointments to the local board of
3-9 trustees of the appointment of the management team or individual
3-10 and the circumstances on which the appointment is based.
3-11 (c) The management team or individual may perform any or all
3-12 of the following functions as defined by the commissioner:
3-13 (1) evaluate, redesign, modify, administer, supervise,
3-14 or monitor the management, procedures, or operations of the
3-15 community center;
3-16 (2) hire, supervise, discipline, or reassign employees
3-17 of the community center or terminate the employment of the
3-18 employees;
3-19 (3) reallocate resources and manage assets of the
3-20 community center;
3-21 (4) provide technical assistance to officers and
3-22 employees of the community center and require or provide staff
3-23 development;
3-24 (5) approve or disapprove each financial transaction
3-25 or expenditure or contract for goods and services that the
3-26 community center makes;
3-27 (6) redesign, modify, or terminate the community
4-1 center's programs or services;
4-2 (7) direct the local board of trustees, executive
4-3 director, chief financial officer, or other fiscal or programmatic
4-4 officer of the community center to take an action;
4-5 (8) exercise all powers and duties of the officers and
4-6 employees of the community center; and
4-7 (9) make recommendations to the local agency or
4-8 organizational combination of local agencies responsible for
4-9 appointments to the board of trustees regarding the removal of some
4-10 or all of the community center's trustees.
4-11 (d) The management team or individual shall report the
4-12 activities of the team or individual to the commissioner and the
4-13 local board of trustees monthly.
4-14 (e) The commissioner shall review and evaluate the
4-15 performance of the community center each month to determine the
4-16 feasibility of restoring the management and operation of the
4-17 community center to local control.
4-18 (f) The powers and duties of the board of trustees shall be
4-19 exercised under the supervision of the management team or
4-20 individual.
4-21 (g) The commissioner may direct that all costs of the
4-22 management team or individual shall be paid by the community
4-23 center.
4-24 (h) The appointment of a management team or individual under
4-25 this section continues until:
4-26 (1) the commissioner determines that circumstances
4-27 that would support a finding under Subsection (a) no longer exist;
5-1 or
5-2 (2) the department cancels the contract with the
5-3 community center.
5-4 (i) When the commissioner finds that circumstances that
5-5 would support a finding under Subsection (a) no longer exist, the
5-6 commissioner shall terminate the powers and appointment of the team
5-7 or individual, and after the termination, the community center's
5-8 authorized officers and employees shall manage and operate the
5-9 community center.
5-10 (j) The community center may appeal an appointment made
5-11 under Subsection (a) as prescribed by board rule. The filing of a
5-12 notice of appeal does not stay the appointment of a management team
5-13 or individual if the appointment is made on a finding made under
5-14 Subsection (a)(4).
5-15 (k) A member of the management team or individual appointed
5-16 under this section is immune from suit or liability arising from
5-17 the good faith performance of any functions described in this
5-18 section.
5-19 SECTION 3. Section 534.059, Health and Safety Code, is
5-20 amended to read as follows:
5-21 Sec. 534.059. PERFORMANCE STANDARDS. (a) The department
5-22 shall specify performance standards, including measures of results,
5-23 to use in evaluating the compliance of a local mental health or
5-24 mental retardation authority with its obligation or contract to
5-25 ensure the provision of [provide] specific services to priority
5-26 populations.
5-27 (b) If, by the date prescribed by the commissioner, a mental
6-1 health or mental retardation authority fails to comply with its
6-2 obligation or contract to ensure provision of services to the
6-3 satisfaction of the commissioner, the department may withhold
6-4 related department money to the authority until the dispute is
6-5 resolved. The department shall notify the local mental health and
6-6 mental retardation authority in writing of the department's
6-7 decision to withhold money under this section.
6-8 (c) The local mental health or mental retardation authority
6-9 may appeal to the board the department's decision to withhold money
6-10 under this section. The board by rule shall prescribe the appeal
6-11 procedure. The filing of a notice of appeal under this subsection
6-12 stays the imposition of the department's decision to withhold
6-13 money.
6-14 (d) Notwithstanding Subsection (c), the department may limit
6-15 general revenue allocations to the local mental health and mental
6-16 retardation authority to monthly distributions during the appeal.
6-17 (e) The department may withhold money during an appeal to a
6-18 court if the board finally affirms the withholding of money after
6-19 an appeal filed under Subsection (c).
6-20 SECTION 4. Section 534.060(b), Health and Safety Code, is
6-21 amended to read as follows:
6-22 (b) The department shall review the program quality and
6-23 program performance results of each local mental health or mental
6-24 retardation authority in accordance with a risk assessment and
6-25 evaluation system appropriate to contract requirements [at least
6-26 once each fiscal year]. The department may determine the scope of
6-27 each review.
7-1 SECTION 5. Sections 534.061(a), (b), and (c), Health and
7-2 Safety Code, are amended to read as follows:
7-3 (a) The department shall develop mechanisms for periodically
7-4 monitoring the services provided by a [private] provider who
7-5 contracts with a mental health or mental retardation authority to
7-6 provide services for persons with mental retardation or mental
7-7 illness at the community level, including residential services, if
7-8 state funds or funds for which the state has oversight
7-9 responsibility are used to pay for at least part of the services.
7-10 (b) The local mental health or mental retardation authority
7-11 [department] shall monitor the services to ensure that the
7-12 [private] provider is delivering the services in a manner
7-13 consistent with the contract. [The department shall also provide
7-14 for periodic fiscal audits of those private providers.]
7-15 (c) Each [private] provider contract involving the use of
7-16 state funds or funds for which the state has oversight
7-17 responsibility must authorize the local mental health or mental
7-18 retardation authority or the authority's designee, and the
7-19 department or the department's designee to have unrestricted access
7-20 to all facilities, records, data, and other information under the
7-21 control of the provider as necessary to enable the department to
7-22 audit, monitor, and review the financial and program activities and
7-23 services associated with the contract.
7-24 SECTION 6. This Act takes effect September 1, 1997.
7-25 SECTION 7. The importance of this legislation and the
7-26 crowded condition of the calendars in both houses create an
7-27 emergency and an imperative public necessity that the
8-1 constitutional rule requiring bills to be read on three several
8-2 days in each house be suspended, and this rule is hereby suspended.