By: Nelson S.B. No. 940
A BILL TO BE ENTITLED
AN ACT
1-1 relating to local mental health and mental retardation authorities
1-2 and community centers.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsections (g), (h), and (i), Section 534.035,
1-5 Health and Safety Code, are amended to read as follows:
1-6 (g) If, by the date prescribed by the commissioner, the
1-7 community center fails to respond to a deficiency identified in a
1-8 review or audit to the satisfaction of the commissioner, the
1-9 department may withhold [discontinue the transfer of] related
1-10 department funds to the community center until the dispute is
1-11 resolved in accordance with Section 534.059. [The community center
1-12 is entitled to notice and an opportunity for a hearing before the
1-13 transfer of department funds is discontinued. The board by rule
1-14 shall prescribe the hearings procedure.]
1-15 [(h) The department may withhold funds during the pendency
1-16 of an appeal to a court if the department hearing upholds the
1-17 discontinuation of the funds. The department shall transfer the
1-18 withheld funds to the community center if the final determination
1-19 is favorable to the community center.]
1-20 [(i)] The department shall incorporate the community
1-21 center's responses into the official management audit report in
1-22 accordance with the Government Auditing Standards published by the
1-23 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
3-1 control over its assets in accordance with Chapter 783, Government
3-2 Code;
3-3 (7) the community center has failed to respond as
3-4 prescribed by the commissioner to a deficiency in a review or
3-5 audit; or
3-6 (8) the community center has failed to comply with
3-7 applicable sections of this subchapter and department rules.
3-8 (b) The department, in writing, shall notify the community
3-9 center and local agency or organizational combination of local
3-10 agencies responsible for making appointments to the local board of
3-11 trustees of the appointment of the management team or individual
3-12 and the circumstances on which the appointment is based.
3-13 (c) The management team or individual may perform any or all
3-14 of the following functions as defined by the commissioner:
3-15 (1) evaluate, redesign, modify, administer, supervise,
3-16 or monitor the management, procedures, or operations of the
3-17 community center;
3-18 (2) hire, supervise, discipline, or reassign employees
3-19 of the community center or terminate the employment of the
3-20 employees;
3-21 (3) reallocate resources and manage assets of the
3-22 community center;
3-23 (4) provide technical assistance to officers and
3-24 employees of the community center and require or provide staff
3-25 development;
4-1 (5) approve or disapprove each financial transaction
4-2 or expenditure or contract for goods and services that the
4-3 community center makes;
4-4 (6) redesign, modify, or terminate the community
4-5 center's programs or services;
4-6 (7) direct the local board of trustees, executive
4-7 director, chief financial officer, or other fiscal or programmatic
4-8 officer of the community center to take an action;
4-9 (8) exercise all powers and duties of the officers and
4-10 employees of the community center; and
4-11 (9) make recommendations to the local agency or
4-12 organizational combination of local agencies responsible for
4-13 appointments to the board of trustees regarding the removal of some
4-14 or all of the community center's trustees.
4-15 (d) The management team or individual shall report the
4-16 activities of the team or individual to the commissioner and the
4-17 local board of trustees monthly.
4-18 (e) The commissioner shall review and evaluate the
4-19 performance of the community center each month to determine the
4-20 feasibility of restoring the management and operation of the
4-21 community center to local control.
4-22 (f) The powers and duties of the board of trustees shall be
4-23 exercised under the supervision of the management team or
4-24 individual.
4-25 (g) The commissioner may direct that all costs of the
5-1 management team or individual shall be paid by the community
5-2 center.
5-3 (h) The appointment of a management team or individual under
5-4 this section continues until:
5-5 (1) the commissioner determines that circumstances
5-6 that would support a finding under Subsection (a) no longer exist;
5-7 or
5-8 (2) the department cancels the contract with the
5-9 community center.
5-10 (i) When the commissioner finds that circumstances that
5-11 would support a finding under Subsection (a) no longer exist, the
5-12 commissioner shall terminate the powers and appointment of the team
5-13 or individual, and after the termination, the community center's
5-14 authorized officers and employees shall manage and operate the
5-15 community center.
5-16 (j) The community center may appeal an appointment made
5-17 under Subsection (a) as prescribed by board rule. The filing of a
5-18 notice of appeal does not stay the appointment of a management team
5-19 or individual if the appointment is made on a finding made under
5-20 Subsection (a)(4).
5-21 (k) A member of the management team or individual appointed
5-22 under this section is immune from suit or liability arising from
5-23 the good faith performance of any functions described in this
5-24 section.
5-25 (l) This section does not apply to local mental health and
6-1 mental retardation authorities and community centers in a county
6-2 with a population of 2.8 million or more.
6-3 SECTION 3. Section 534.059, Health and Safety Code, is
6-4 amended to read as follows:
6-5 Sec. 534.059. PERFORMANCE STANDARDS. (a) The department
6-6 shall specify performance standards, including measures of results,
6-7 to use in evaluating the compliance of a local mental health or
6-8 mental retardation authority with its obligation or contract to
6-9 ensure the provision of [provide] specific services to priority
6-10 populations.
6-11 (b) If, by the date prescribed by the commissioner, a mental
6-12 health or mental retardation authority fails to comply with its
6-13 obligation or contract to ensure provision of services to the
6-14 satisfaction of the commissioner, the department may withhold
6-15 related department money to the authority until the dispute is
6-16 resolved. The department shall notify the local mental health and
6-17 mental retardation authority in writing of the department's
6-18 decision to withhold money under this section.
6-19 (c) The local mental health or mental retardation authority
6-20 may appeal the department's decision to withhold money under this
6-21 section. The board by rule shall prescribe the appeal procedure.
6-22 The filing of a notice of appeal under this subsection stays the
6-23 imposition of the department's decision to withhold money.
6-24 (d) Notwithstanding Subsection (c), the department may limit
6-25 general revenue allocations to the local mental health and mental
7-1 retardation authority to monthly distributions during the appeal.
7-2 (e) The department may withhold money during an appeal to a
7-3 court if the decision to withhold money is finally affirmed in the
7-4 appeal filed under Subsection (c).
7-5 SECTION 4. Subsection (b), Section 534.060, Health and
7-6 Safety Code, is amended to read as follows:
7-7 (b) The department shall review the program quality and
7-8 program performance results of each local mental health or mental
7-9 retardation authority in accordance with a risk assessment and
7-10 evaluation system appropriate to contract requirements [at least
7-11 once each fiscal year]. The department may determine the scope of
7-12 each review.
7-13 SECTION 5. Subsections (a), (b), and (c), Section 534.061,
7-14 Health and Safety Code, are amended to read as follows:
7-15 (a) The department shall develop mechanisms for periodically
7-16 monitoring the services provided by a [private] provider who
7-17 contracts with a mental health or mental retardation authority to
7-18 provide services for persons with mental retardation or mental
7-19 illness at the community level, including residential services, if
7-20 state funds or funds for which the state has oversight
7-21 responsibility are used to pay for at least part of the services.
7-22 (b) The local mental health or mental retardation authority
7-23 [department] shall monitor the services to ensure that the
7-24 [private] provider is delivering the services in a manner
7-25 consistent with the contract. [The department shall also provide
8-1 for periodic fiscal audits of those private providers.]
8-2 (c) Each [private] provider contract involving the use of
8-3 state funds or funds for which the state has oversight
8-4 responsibility must authorize the local mental health or mental
8-5 retardation authority or the authority's designee, and the
8-6 department or the department's designee to have unrestricted access
8-7 to all facilities, records, data, and other information under the
8-8 control of the provider as necessary to enable the department to
8-9 audit, monitor, and review the financial and program activities and
8-10 services associated with the contract.
8-11 SECTION 6. This Act takes effect September 1, 1997.
8-12 SECTION 7. The importance of this legislation and the
8-13 crowded condition of the calendars in both houses create an
8-14 emergency and an imperative public necessity that the
8-15 constitutional rule requiring bills to be read on three several
8-16 days in each house be suspended, and this rule is hereby suspended.