HBA-JRA S.B. 773 76(R)BILL ANALYSIS


Office of House Bill AnalysisS.B. 773
By: Nelson
Public Health
4/19/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Currently, there is no formal mechanism for the Texas Department of Mental
Health and Mental Retardation to take control from the board of a community
mental health and mental retardation center if the board cannot or is not
willing to fulfill its mission.  The well-being of mental health patients
may be put at risk if the center is not being managed appropriately.  S.B.
773 creates a mechanism for the Texas Department of Mental Health and
Mental Retardation to temporarily manage and operate a community mental
health and mental retardation center with which they have a contract if the
center board is unable or unwilling to fulfill its contractual obligations,
ensure the health and safety of its patients, or maintain fiscal
responsibility. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 534, Health and Safety Code, by
adding Sections 534.038, 534.039, and 534.040, as follows: 

Sec. 534.038.  APPOINTMENT OF MANAGER OR MANAGEMENT TEAM.  (a) Authorizes
the  commissioner of mental health and mental retardation (commissioner) to
appoint a manager or management team (manager) to manage and operate a
community center if the commissioner finds that the center or an officer or
employee of the center intentionally, recklessly, or negligently failed to
discharge the center's duties under a contract with the Texas Department of
Mental Health and Mental Retardation (department); misused state or federal
money; engaged in a fraudulent act, transaction, practice, or course of
business; endangers or may endanger the life, health, or safety of a person
served by the center; failed to keep fiscal records or maintain proper
control over center assets; failed to respond to a deficiency in a review
or audit; substantially failed to operate within the functions and purposes
defined in the center's plan; or otherwise substantially failed to comply
with this subchapter or department rules; and contract sanctions and
intervention with the local board of trustees failed to bring the center
into compliance with the center's plan or contract. 

(b)  Requires the department to give written notification to the center and
local agency or combination of agencies responsible for making appointments
to the local board of trustees regarding the appointment of the manager and
the circumstances on which the appointment is based. 

(c)  Authorizes the commissioner to require the center to pay costs
incurred by the manager. 

(d)  Authorizes the center to appeal the commissioner's decision to appoint
a manager as prescribed by Texas Board of Mental Health and Mental
Retardation rule.  Provides that the filing of a notice of appeal stays the
appointment unless the commissioner based the appointment on a finding that
the center or an officer or employee of the center is  endangering or may
endanger the life, health, or safety of a person served by the center. 

Sec. 534.039.  POWERS AND DUTIES OF MANAGEMENT TEAM.  (a)  Sets forth the
powers of a manager appointed under Section 534.038. 

(b)  Requires the manager to supervise the exercise of a power or duty by
the local board of trustees. 

(c)  Requires the manager to report monthly to the commissioner and local
board of trustees on actions taken. 

(d)  Provides that a manager is immune from liability arising from the good
faith performance of a function described by this section. 

(e)  Prohibits a manager from using an asset or money contributed by a
county, municipality, or other local funding entity without the approval of
the county, municipality, or entity. 

Sec. 534.040.  RESTORING MANAGEMENT TO CENTER.  (a)  Requires the
commissioner to evaluate the performance of a community center managed by a
manager appointed under Section 534.038 each month to determine the
feasibility of restoring the center's management and operation to a local
board of trustees. 

(b)  Provides that the authority of the manager continues until the
commissioner determines that the reasons for appointing a manager no longer
exist or the department cancels its contract with the center. 

(c)  Requires the commissioner to terminate the authority of the manager
and restore authority to manage and operate the center to the center's
authorized officers and employees following a determination that the
reasons for appointing a manager no longer exist. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.


EXPLANATION OF AMENDMENTS

Committee Amendment #1

SECTION 1.  Deletes proposed Section 534.039(d), Health and Safety Code,
which provides that a manager is immune from liability arising from the
good faith performance of a function described by this section (Powers And
Duties of Management Team).