AN ACT
 1-1     relating to the continuation and functions of the Texas Department
 1-2     of Mental Health and Mental Retardation and to certain facilities
 1-3     that provide care for persons with mental illness.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 532.002, Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           Sec. 532.002.  SUNSET PROVISION.  The Texas Department of
 1-8     Mental Health and Mental Retardation is subject to Chapter 325,
 1-9     Government Code (Texas Sunset Act).  Unless continued in existence
1-10     as provided by that Act, the department is abolished and this
1-11     chapter expires September 1, 2011 [1999].
1-12           SECTION 2.  Chapter 532, Health and Safety Code, is amended
1-13     by adding Section 532.0035 to read as follows:
1-14           Sec. 532.0035.  BOARD TRAINING.  (a)  A person who is
1-15     appointed to and qualifies for office as a member of the board may
1-16     not vote, deliberate, or be counted as a member in attendance at a
1-17     meeting of the board until the person completes a training session
1-18     that complies with this section.
1-19           (b)  The training program must provide the person with
1-20     information regarding:
1-21                 (1)  the legislation that created the department and
1-22     board;
1-23                 (2)  the programs operated by the department;
1-24                 (3)  the roles and functions of the department;
 2-1                 (4)  the rules of the department with an emphasis on
 2-2     the rules that relate to disciplinary and investigatory authority;
 2-3                 (5)  the current budget for the department;
 2-4                 (6)  the results of the most recent formal audit of the
 2-5     department;
 2-6                 (7)  the requirements of:
 2-7                       (A)  the open meetings law, Chapter 551,
 2-8     Government Code;
 2-9                       (B)  the public information law, Chapter 552,
2-10     Government Code;
2-11                       (C)  the administrative procedure law, Chapter
2-12     2001, Government Code; and
2-13                       (D)  other laws relating to public officials,
2-14     including conflict-of-interest laws; and
2-15                 (8)  any applicable ethics policies adopted by the
2-16     department or the Texas Ethics Commission.
2-17           (c)  A person appointed to the board is entitled to
2-18     reimbursement, as provided by the General Appropriations Act, for
2-19     the travel expenses incurred in attending the training program
2-20     regardless of whether the attendance at the program occurs before
2-21     or after the person qualifies for office.
2-22           SECTION 3.  Subsections (d) and (e), Section 532.016, Health
2-23     and Safety Code, are amended to read as follows:
2-24           (d)  The commissioner or the commissioner's designee shall
2-25     prepare and maintain a written policy statement that implements [to
2-26     assure implementation of] a program of equal employment opportunity
 3-1     to ensure that [under which] all personnel decisions [transactions]
 3-2     are made without regard to race, color, disability [handicap], sex,
 3-3     religion, age, or national origin.  The policy statement must
 3-4     include:
 3-5                 (1)  personnel policies, including policies relating to
 3-6     recruitment, evaluation, selection, [appointment,] training, and
 3-7     promotion of personnel, that show the intent of the department to
 3-8     avoid the unlawful employment practices described by Chapter 21,
 3-9     Labor Code;
3-10                 (2)  an analysis of the extent to which the composition
3-11     of the department's personnel is in accordance with state and
3-12     federal law and a description of reasonable methods to achieve
3-13     compliance with state and federal law[;]
3-14                 [(2)  a comprehensive analysis of the department work
3-15     force that meets federal and state guidelines]; and
3-16                 (3)  procedures by which a determination can be made of
3-17     significant underutilization in the department work force of all
3-18     persons for whom federal or state guidelines encourage a more
3-19     equitable balance and reasonable methods to appropriately address
3-20     those areas of significant underutilization.
3-21           (e)  The [A] policy statement [prepared under Subsection (d)]
3-22     must:
3-23                 (1)  [cover an annual period;]
3-24                 [(2)]  be updated [at least] annually;
3-25                 (2)  be reviewed by the Commission on Human Rights for
3-26     compliance with Subsection (d)(1); and
 4-1                 (3)  be filed with the governor's office [governor].
 4-2           SECTION 4.  Subchapter A, Chapter 533, Health and Safety
 4-3     Code, is amended by adding Section 533.013 to read as follows:
 4-4           Sec. 533.013.  DUPLICATION OF REHABILITATION SERVICES.  The
 4-5     department shall enter into an agreement with the Texas
 4-6     Rehabilitation Commission that defines the roles and
 4-7     responsibilities of the department and the commission regarding the
 4-8     agencies' shared client populations.  The agreement must establish
 4-9     methods to prevent the duplication and fragmentation of employment
4-10     services provided by the agencies.
4-11           SECTION 5.  Section 533.032, Health and Safety Code, is
4-12     amended to read as follows:
4-13           Sec. 533.032.  LONG-RANGE PLANNING [PLAN].  (a)  The
4-14     department shall have a long-range plan covering at least six years
4-15     that includes at least the provisions required by Sections 531.022
4-16     and 531.023, Government Code [Section 10, Article 4413(502),
4-17     Revised Statutes], and Chapter 2056, Government Code.  The plan
4-18     must cover the provision of services in and policies for
4-19     state-operated institutions and ensure that the medical needs of
4-20     the most medically fragile persons the department serves are met.
4-21           (b)  In developing the plan, the department shall:
4-22                 (1)  solicit input from:
4-23                       (A)  local authorities for mental health and
4-24     mental retardation;
4-25                       (B)  community representatives;
4-26                       (C)  consumers of mental health and mental
 5-1     retardation services, including consumers of campus-based and
 5-2     community-based services, and family members of consumers of those
 5-3     services; and
 5-4                       (D)  other interested persons; and
 5-5                 (2)  consider the report developed under Subsection
 5-6     (c).
 5-7           (c)  The department shall develop a report containing
 5-8     information and recommendations regarding the most efficient
 5-9     long-term use and management of the department's campus-based
5-10     facilities.  The report must:
5-11                 (1)  project future bed requirements for state schools
5-12     and state hospitals;
5-13                 (2)  document the methodology used to develop the
5-14     projection of future bed requirements;
5-15                 (3)  project maintenance costs for institutional
5-16     facilities;
5-17                 (4)  recommend strategies to maximize the use of
5-18     institutional facilities; and
5-19                 (5)  specify how each state school and state hospital
5-20     will:
5-21                       (A)  serve and support the communities and
5-22     consumers in its service area; and
5-23                       (B)  fulfill statewide needs for specialized
5-24     services.
5-25           (d)  In developing the report under Subsection (c), the
5-26     department  shall:
 6-1                 (1)  conduct two public meetings, one meeting to be
 6-2     held at the beginning of the process and the second meeting to be
 6-3     held at the end of the process, to receive comments from interested
 6-4     parties; and
 6-5                 (2)  consider:
 6-6                       (A)  the medical needs of the most medically
 6-7     fragile of its clients;
 6-8                       (B)  the provision of services to clients with
 6-9     severe and profound mental retardation and to persons with mental
6-10     retardation who are medically fragile or have behavioral problems;
6-11                       (C)  the program and service preference
6-12     information collected under Section 533.038; and
6-13                       (D)  input solicited from consumers of services
6-14     of state schools and state hospitals.
6-15           (e)  The department shall develop a report analyzing state
6-16     and federally funded residential services for persons with mental
6-17     retardation.  The report shall:
6-18                 (1)  determine any disparity in cost and quality
6-19     outcomes achieved between services provided in state-operated
6-20     programs, including but not limited to ICFs-MR and HCS, and the
6-21     same or comparable services provided by private sector providers;
6-22     and
6-23                 (2)  identify and quantify the reasons for any
6-24     disparity that exists.
6-25           (f)  The department, in preparing the report under Subsection
6-26     (e), shall obtain ongoing input from stakeholders, including
 7-1     department staff, private providers, advocates, consumers, and
 7-2     family members of consumers.
 7-3           (g)  The department shall:
 7-4                 (1)  attach the reports required by Subsections (c) and
 7-5     (e) to the department's legislative appropriations request for each
 7-6     biennium;
 7-7                 (2)  at the time the department presents its
 7-8     legislative appropriations request, present the reports to the:
 7-9                       (A)  governor;
7-10                       (B)  governor's budget office;
7-11                       (C)  lieutenant governor;
7-12                       (D)  speaker of the house of representatives;
7-13                       (E)  Legislative Budget Board; and
7-14                       (F)  Health and Human Services Commission; and
7-15                 (3)  update the department's long-range plan biennially
7-16     and include the reports in the plan.
7-17           (h)  The department shall, in coordination with the Health
7-18     and Human Services Commission, evaluate the current and long-term
7-19     costs associated with serving inpatient psychiatric needs of
7-20     persons living in counties now served by at least three state
7-21     hospitals within 120 miles of one another.  This evaluation shall
7-22     take into consideration the condition of the physical plants and
7-23     other long-term asset management issues associated with the
7-24     operation of the hospitals, as well as other issues associated with
7-25     quality psychiatric care.  After such determination is made, the
7-26     Health and Human Services Commission shall begin to take action to
 8-1     influence the utilization of these state hospitals in order to
 8-2     ensure efficient service delivery.
 8-3           SECTION 6.  Subchapter B, Chapter 533, Health and Safety
 8-4     Code, is amended by adding Section 533.0325 to read as follows:
 8-5           Sec. 533.0325.  CONTINUUM OF SERVICES IN CAMPUS FACILITIES.
 8-6     The board by rule shall establish criteria regarding the uses of
 8-7     the department's campus-based facilities as part of a full
 8-8     continuum of services.
 8-9           SECTION 7.  Subchapter B, Chapter 533, Health and Safety
8-10     Code, is amended by adding Sections 533.0345 and 533.0346 to read
8-11     as follows:
8-12           Sec. 533.0345.  STATE AGENCY SERVICES STANDARDS.  (a)  The
8-13     department by rule shall develop model program standards for mental
8-14     health and mental retardation services for use by each state agency
8-15     that provides or pays for mental health or mental retardation
8-16     services.  The department shall provide the model standards to each
8-17     agency that provides mental health or mental retardation services
8-18     as identified by the Health and Human Services Commission.
8-19           (b)  Model standards developed under Subsection (a) must be
8-20     designed to improve the consistency of mental health and mental
8-21     retardation services provided by or through a state agency.
8-22           (c)  Biennially the department shall review the model
8-23     standards developed under Subsection (a) and determine whether each
8-24     standard contributes effectively to the consistency of service
8-25     delivery by state agencies.
8-26           Sec. 533.0346.  AUTHORITY TO TRANSFER SERVICES TO COMMUNITY
 9-1     CENTERS.  (a)  The department may transfer operations of and
 9-2     services provided at the Amarillo State Center, Beaumont State
 9-3     Center, and Laredo State Center to a community center established
 9-4     under Chapter 534, including a newly established center providing
 9-5     mental retardation services or mental health and mental retardation
 9-6     services.
 9-7           (b)  The transfer may occur only on the department's approval
 9-8     of a plan submitted in accordance with Section 534.001(d) or of an
 9-9     amendment to a previously approved plan.  In developing the plan or
9-10     plan amendment, the center or proposed center proposing to accept
9-11     the state center operation and service responsibilities shall
9-12     consider input from consumers of mental health and mental
9-13     retardation services and family members of and advocates for those
9-14     consumers, organizations that represent affected employees, and
9-15     other providers of mental health and mental retardation services.
9-16           (c)  The center or proposed center proposing to accept the
9-17     state center operation and service responsibilities shall publish
9-18     notice of the initial planning meeting regarding the content of the
9-19     plan or plan amendment and of the meeting to review the content of
9-20     the proposed plan or plan amendment before it is submitted under
9-21     Section 534.001(d).  The notices must include the time and location
9-22     of the meeting.  The notice of the meeting to review the content of
9-23     the plan or amendment must include information regarding how to
9-24     obtain a copy of the proposed plan or amendment.  The notices must
9-25     be published not fewer than 30 days and not more than 90 days
9-26     before the date set for the meeting in a newspaper of general
 10-1    circulation in each county containing any part of the proposed
 10-2    service area.  If a county in which notice is required to be
 10-3    published does not have a newspaper of general circulation, the
 10-4    notices shall be published in a newspaper of general circulation in
 10-5    the nearest county in which a newspaper of general circulation is
 10-6    published.
 10-7          (d)  At the time the operations and services are transferred
 10-8    to the community center, money supporting the cost of providing
 10-9    operations and services at a state center shall be transferred to
10-10    the community center to ensure continuity of services.
10-11          (e)  The Amarillo State Center is exempt from the
10-12    requirements listed in Subsections (b) and (c).
10-13          SECTION 8.  Subchapter B, Chapter 533, Health and Safety
10-14    Code, is amended by adding Section 533.0351 to read as follows:
10-15          Sec. 533.0351.  LOCAL AUTHORITY TECHNICAL ADVISORY COMMITTEE.
10-16    (a)  In this section, "local authority" means a local mental health
10-17    or mental retardation authority.
10-18          (b)  The commissioner shall establish a nine-member local
10-19    authority advisory committee to advise the commissioner on
10-20    technical and administrative issues that directly affect local
10-21    authority responsibilities.
10-22          (c)  The committee is composed of representatives of local
10-23    authorities and one member representing the public appointed by the
10-24    commissioner.  In appointing the members, the commissioner shall
10-25    ensure a balanced representation of:
10-26                (1)  different regions of this state;
 11-1                (2)  rural and urban counties; and
 11-2                (3)  single-county and multicounty local authorities.
 11-3          (d)  Except for the member representing the public, members
 11-4    appointed to the advisory committee must have expertise in the
 11-5    day-to-day operations of a local authority.
 11-6          (e)  The advisory committee shall:
 11-7                (1)  review rules and proposed rules related to local
 11-8    authority operations;
 11-9                (2)  advise the commissioner regarding evaluation and
11-10    coordination of initiatives related to local authority operations;
11-11                (3)  advise and assist the department in developing a
11-12    method of contracting with local authorities that will result in
11-13    contracts that are flexible and responsive to:
11-14                      (A)  the needs and services of local communities;
11-15    and
11-16                      (B)  the department's performance expectations;
11-17                (4)  coordinate with and monitor the activities of work
11-18    groups whose actions may affect local authority operations;
11-19                (5)  report to the board on the committee's activities
11-20    and recommendations at least once each fiscal quarter; and
11-21                (6)  work with the commissioner as the commissioner
11-22    directs.
11-23          (f)  For any written recommendation the committee makes to
11-24    the department, the department shall provide to the committee a
11-25    written response regarding any action taken on the recommendation
11-26    or the reasons for the department's inaction on the subject of the
 12-1    recommendation.
 12-2          (g)  The committee is subject to Chapter 2110, Government
 12-3    Code.  The department by rule shall provide, in accordance with
 12-4    Section 2110.008, Government Code, that the committee is abolished
 12-5    on September 1, 2007, unless the board affirmatively votes to
 12-6    continue the committee in existence.
 12-7          SECTION 9.  Subchapter B, Chapter 533, Health and Safety
 12-8    Code, is amended by adding Section 533.0356 to read as follows:
 12-9          Sec. 533.0356.  LOCAL BEHAVIORAL HEALTH AUTHORITIES.  (a)  In
12-10    this section, "commission" means the Texas Commission on Alcohol
12-11    and Drug Abuse.
12-12          (b)  The department and the commission jointly may designate
12-13    a local behavioral health authority in a local service area to
12-14    provide mental health and chemical dependency services in that
12-15    area.  The board and the commission may delegate to an authority
12-16    designated under this section the authority and responsibility for
12-17    planning, policy development, coordination, resource allocation,
12-18    and resource development for and oversight of mental health and
12-19    chemical dependency services in that service area.  An authority
12-20    designated under this section has:
12-21                (1)  all the responsibilities and duties of a local
12-22    mental health authority provided by Section 533.035 and by
12-23    Subchapter B, Chapter 534; and
12-24                (2)  the responsibility and duty to ensure that
12-25    chemical dependency services are provided in the service area as
12-26    described by the statewide service delivery plan adopted under
 13-1    Section 461.0124.
 13-2          (c)  In the planning and implementation of services, the
 13-3    authority shall give proportionate priority to mental health
 13-4    services and chemical dependency services that ensures that funds
 13-5    purchasing services are used in accordance with specific regulatory
 13-6    and statutory requirements that govern the respective funds.
 13-7          (d)  A local mental health authority may apply to the
 13-8    department and commission for designation as a local behavioral
 13-9    health authority.
13-10          (e)  The department and commission, by contract or by a
13-11    case-rate or capitated arrangement or another method of allocation,
13-12    may disburse money, including federal money, to a local behavioral
13-13    health authority for services.
13-14          (f)  A local behavioral health authority, with the approval
13-15    of the department or the commission as provided by contract, shall
13-16    use money received under Subsection (e) to ensure that mental
13-17    health and chemical dependency services are provided in the local
13-18    service area at the same level as the level of services previously
13-19    provided through:
13-20                (1)  the local mental health authority; and
13-21                (2)  the commission.
13-22          (g)  In determining whether to designate a local behavioral
13-23    health authority for a service area and in determining the
13-24    functions of the authority if designated, the department and
13-25    commission shall solicit and consider written comments from any
13-26    interested person including community representatives, persons who
 14-1    are consumers of the proposed services of the authority, and family
 14-2    members of those consumers.
 14-3          (h)  An authority designated under this section shall
 14-4    demonstrate to the department and the commission that services
 14-5    involving state funds that the authority oversees comply with
 14-6    relevant state standards.
 14-7          (i)  The board and the commission jointly may adopt rules to
 14-8    govern the operations of local behavioral health authorities.  The
 14-9    department and the commission jointly may assign the local
14-10    behavioral health authority the duty of providing a single point of
14-11    entry for mental health and chemical dependency services.
14-12          SECTION 10.  Section 533.038, Health and Safety Code, is
14-13    amended by adding Subsections (d), (e), and (f) to read as follows:
14-14          (d)  A person with mental retardation, or a person's legally
14-15    authorized representative, seeking residential services shall
14-16    receive a clear explanation of programs and services for which the
14-17    person is determined to be eligible, including state schools,
14-18    community ICF-MR programs, waiver services under Section 1915(c) of
14-19    the federal Social Security Act (42 U.S.C. Section 1396n(c)), or
14-20    other services.  The preferred programs and services chosen by the
14-21    person or the person's legally authorized representative shall be
14-22    documented in the person's record.  If the preferred programs or
14-23    services are not available, the person or the person's legally
14-24    authorized representative shall be given assistance in gaining
14-25    access to alternative services and the selected waiting list.
14-26          (e)  The department shall ensure that the information
 15-1    regarding program and service preferences collected under
 15-2    Subsection (d) is documented and maintained in a manner that
 15-3    permits the department to access and use the information for
 15-4    planning activities conducted under Section 533.032.
 15-5          (f)  The department may spend money appropriated for the
 15-6    state school system only in accordance with limitations imposed by
 15-7    the General Appropriations Act.
 15-8          SECTION 11.  Subchapter B, Chapter 533, Health and Safety
 15-9    Code, is amended by adding Section 533.039 to read as follows:
15-10          Sec. 533.039.  CLIENT SERVICES OMBUDSMAN.  (a)  The
15-11    commissioner shall employ an ombudsman responsible for assisting a
15-12    person, or a parent or guardian of a person, who has been denied
15-13    service by the department, a department program or facility, or a
15-14    local mental health or mental retardation authority.
15-15          (b)  The ombudsman shall:
15-16                (1)  explain and provide information on department and
15-17    local mental health or mental retardation authority services,
15-18    facilities, and programs and the rules, procedures, and guidelines
15-19    applicable to the person denied services; and
15-20                (2)  assist the person in gaining access to an
15-21    appropriate program or in placing the person on an appropriate
15-22    waiting list.
15-23          SECTION 12.  Subsection (a), Section 534.004, Health and
15-24    Safety Code, is amended to read as follows:
15-25          (a)  The local agency or organizational combination of local
15-26    agencies that establishes a community center shall prescribe:
 16-1                (1)  the application procedure for a position on the
 16-2    board of trustees;
 16-3                (2)  the procedure and criteria for making appointments
 16-4    to the board of trustees;
 16-5                (3)  the procedure for posting notice of and filling a
 16-6    vacancy on the board of trustees; and
 16-7                (4)  the grounds and procedure for removing a member of
 16-8    the board of trustees[; and]
 16-9                [(5)  a procedure to ensure that an appointed member of
16-10    a board of trustees appointed by a local agency or organizational
16-11    combination of local agencies primarily located in only one county
16-12    serves not more than four consecutive and complete two-year terms].
16-13          SECTION 13.  Section 534.005, Health and Safety Code, is
16-14    amended to read as follows:
16-15          Sec. 534.005.  Terms; Vacancies.  (a)  Appointed members of
16-16    the board of trustees who are not members of a local agency's
16-17    governing body serve staggered two-year terms.  In appointing the
16-18    initial members, the appointing authority shall designate not less
16-19    than one-third or more than one-half of the members to serve
16-20    one-year terms and shall designate the remaining members to serve
16-21    two-year terms.
16-22          (b)  A vacancy on a board of trustees composed of qualified
16-23    voters is filled by appointment for the remainder of the unexpired
16-24    term.
16-25          [(c)  If the local agency or organizational combination of
16-26    local agencies that appoints the board of trustees is primarily
 17-1    located in only one county, a person appointed to the board of
 17-2    trustees may not serve more than four consecutive and complete
 17-3    two-year terms.]
 17-4          SECTION 14.  Section 534.007, Health and Safety Code, is
 17-5    amended to read as follows:
 17-6          Sec. 534.007.  PROHIBITED ACTIVITIES BY FORMER OFFICERS OR
 17-7    EMPLOYEES; OFFENSE.  (a)  A [For one year after the date on which
 17-8    a] former officer or employee of a community center who ceases
 17-9    [terminates] service or employment with the center[, the
17-10    individual] may not represent any person or receive compensation
17-11    for services rendered on behalf of any person regarding a
17-12    particular matter in which the former officer or employee
17-13    participated during the period of employment, either through
17-14    personal involvement or because the case or proceeding was a matter
17-15    within the officer's or employee's official[, directly or
17-16    indirectly, attempt or aid in the attempt to procure a contract
17-17    with the community center in which the individual served or was
17-18    employed if the contract relates to a program or service in which
17-19    the individual was directly concerned or for which the individual
17-20    had administrative] responsibility.
17-21          (b)  This section does not apply to:
17-22                (1)  a former employee who is compensated on the last
17-23    date of service or employment below the amount prescribed by the
17-24    General Appropriations Act for [step 1,] salary group 17, Schedule
17-25    A, or salary group 9, Schedule B, of the position classification
17-26    salary schedule; or
 18-1                (2)  a former officer or employee who is employed by a
 18-2    state agency or another community center.
 18-3          (c)  Subsection (a) does not apply to a proceeding related to
 18-4    policy development that was concluded before the officer's or
 18-5    employee's service or employment ceased.
 18-6          (d)  A former officer or employee of a community center
 18-7    commits an offense if the former officer or employee violates this
 18-8    section.  An offense under this section is a Class A misdemeanor.
 18-9          (e)  In this section:
18-10                (1)  "Participated" means to have taken action as an
18-11    officer or employee through decision, approval, disapproval,
18-12    recommendation, giving advice, investigation, or similar action.
18-13                (2)  "Particular matter" means a specific
18-14    investigation, application, request for a ruling or determination,
18-15    proceeding related to the development of policy, contract, claim,
18-16    charge, accusation, arrest, or judicial or other proceeding.
18-17          SECTION 15.  Subsection (b), Section 534.065, Health and
18-18    Safety Code, is amended to read as follows:
18-19          (b)  The mental health or mental retardation authority may
18-20    [shall] renew the contract only if the contract meets the criteria
18-21    provided by Section 533.016 [if the authority finds that:]
18-22                [(1)  funding is available;]
18-23                [(2)  the authority plans to continue the services;]
18-24                [(3)  the provider is in substantial compliance with
18-25    each material provision of the contract, unless the authority
18-26    determines that the provision is not legal and enforceable under
 19-1    applicable state and federal law;]
 19-2                [(4)  the provider is providing a reasonably adequate
 19-3    level of service in accordance with the contract and at a
 19-4    reasonable cost;]
 19-5                [(5)  the provider agrees to a renewal contract that is
 19-6    substantially in compliance with a model contract developed by the
 19-7    department under Section 534.055;]
 19-8                [(6)  the provider was during the term of any contract
 19-9    with the authority and is at the time of renewal in compliance with
19-10    applicable laws governing the subject matter of the contract; and]
19-11                [(7)  neither the provider nor any of its officers,
19-12    directors, or principal employees has been convicted or found by a
19-13    final administrative decision to have been guilty of fraud or abuse
19-14    in the provision of health care services under a contract with a
19-15    state or federal agency].
19-16          SECTION 16.  Subchapter C, Chapter 534, Health and Safety
19-17    Code, is amended by adding Section 534.106 to read as follows:
19-18          Sec. 534.106.  CONDITIONS FOR CERTAIN CONTRACTS.  A contract
19-19    between the department and a health maintenance organization formed
19-20    by one or more community centers must provide that the health
19-21    maintenance organization may not form a for-profit entity unless
19-22    the organization transfers all of the organization's assets to the
19-23    control of the boards of trustees of the community centers that
19-24    formed the organization.
19-25          SECTION 17.  Chapter 461, Health and Safety Code, is amended
19-26    by adding Section 461.0128 to read as follows:
 20-1          Sec. 461.0128.  STATE AGENCY SERVICES STANDARDS.  (a)  The
 20-2    commission by rule shall develop model program standards for
 20-3    substance abuse services for use by each state agency that provides
 20-4    or pays for substance abuse services.  The commission shall provide
 20-5    the model standards to each agency that provides substance abuse
 20-6    services as identified by the Health and Human Services Commission.
 20-7          (b)  Model standards developed under Subsection (a) must be
 20-8    designed to improve the consistency of substance abuse services
 20-9    provided by or through a state agency.
20-10          (c)  Biennially the commission shall review the model
20-11    standards developed under Subsection (a) and determine whether each
20-12    standard contributes effectively to the consistency of service
20-13    delivery by state agencies.
20-14          SECTION 18.  Chapter 461, Health and Safety Code, is amended
20-15    by adding Section 461.0129 to read as follows:
20-16          Sec. 461.0129.  LOCAL BEHAVIORAL HEALTH AUTHORITIES.  The
20-17    commission may designate and provide services through local
20-18    behavioral health authorities as provided by Section 533.0356 and
20-19    rules adopted jointly with the Texas Board of Mental Health and
20-20    Mental Retardation.
20-21          SECTION 19.  Section 574.083, Health and Safety Code, is
20-22    amended to read as follows:
20-23          Sec. 574.083.  RETURN TO FACILITY UNDER [FACILITY
20-24    ADMINISTRATOR'S CERTIFICATE OR] COURT ORDER.  (a)  The facility
20-25    administrator of a facility to which a patient was admitted for
20-26    court-ordered inpatient health care services may have an absent
 21-1    patient taken into custody, detained, and returned to the facility
 21-2    by filing an affidavit as prescribed by Subsection (c)[:]
 21-3                [(1)  signing a certificate authorizing the patient's
 21-4    return; or]
 21-5                [(2)  filing the certificate] with a magistrate and
 21-6    requesting the magistrate to order the patient's return.
 21-7          (b)  A magistrate may issue an order directing a peace or
 21-8    health officer to take a patient into custody and return the
 21-9    patient to the facility if the facility administrator files the
21-10    affidavit [certificate as] prescribed by Subsection (c) [this
21-11    section].  An order issued under this subsection extends to any
21-12    part of this state and authorizes any peace officer to whom the
21-13    order is directed or transferred to execute the order.
21-14          (c)  An affidavit filed under Subsection (a)  must set out
21-15    facts establishing that the patient is receiving court-ordered
21-16    inpatient mental health services at a facility and show that [The
21-17    facility administrator may sign or file the certificate if] the
21-18    facility administrator reasonably believes that:
21-19                (1)  the patient is absent without authority from the
21-20    facility;
21-21                (2)  the patient has violated the conditions of a pass
21-22    or furlough; or
21-23                (3)  the patient's condition has deteriorated to the
21-24    extent that the patient's continued absence from the facility under
21-25    a pass or furlough is inappropriate.
21-26          (d)  A peace or health officer shall take the patient into
 22-1    custody and return the patient to the facility as soon as possible
 22-2    if the patient's return is authorized by [the facility
 22-3    administrator's certificate or] the court order.
 22-4          (e)  The peace or health officer may take the patient into
 22-5    custody without having the [certificate or] court order in the
 22-6    officer's possession.
 22-7          (f)  A peace or health officer who cannot immediately return
 22-8    a patient to the facility named in the order may transport the
 22-9    patient to a local facility for detention.  The patient may not be
22-10    detained in a nonmedical facility that is used to detain persons
22-11    who are charged with or convicted of a crime unless detention in
22-12    the facility is warranted by an extreme emergency.  If the patient
22-13    is detained at a nonmedical facility:
22-14                (1)  the patient:
22-15                      (A)  may not be detained in the facility for more
22-16    than 24 hours; and
22-17                      (B)  must be isolated from all persons charged
22-18    with or convicted of a crime; and
22-19                (2)  the facility must notify the county health
22-20    authority of the detention.
22-21          (g)  The county health authority shall ensure that a patient
22-22    detained in a nonmedical facility under Subsection (f) receives
22-23    proper care and medical attention.
22-24          (h)  Notwithstanding other law regarding confidentiality of
22-25    patient information, the facility administrator may release to a
22-26    law enforcement official information about the patient if the
 23-1    administrator determines the information is needed to facilitate
 23-2    the return of the patient to the facility.
 23-3          SECTION 20.  Section 593.012, Health and Safety Code, is
 23-4    amended to read as follows:
 23-5          Sec. 593.012.  ABSENT WITHOUT AUTHORITY [PERMISSION].
 23-6    (a)  The superintendent of a residential care facility to which a
 23-7    client has been admitted for court-ordered care and treatment may
 23-8    have a client who is absent without authority taken into custody,
 23-9    detained, and returned to the facility by filing an affidavit with
23-10    a magistrate in the manner prescribed by Section 574.083 [may
23-11    immediately issue an order authorizing a peace officer to detain a
23-12    resident committed to the facility under Subchapter C who is absent
23-13    from the facility without proper permission].
23-14          (b)  The client shall be returned to the residential care
23-15    facility in accordance with the procedures prescribed by Section
23-16    574.083 [A peace officer shall immediately notify the
23-17    superintendent when the officer takes a resident into custody and
23-18    shall promptly arrange the return of the resident to the assigned
23-19    facility on request of the superintendent].
23-20          SECTION 21.  (a)  The Texas Department of Mental Health and
23-21    Mental Retardation and the Texas Department of Housing and
23-22    Community Affairs shall implement a program to demonstrate the
23-23    effectiveness of interagency cooperation for providing supported
23-24    housing services to individuals with mental illness who reside in
23-25    personal care facilities.
23-26          (b)  The Texas Department of Mental Health and Mental
 24-1    Retardation and the Texas Department of Housing and Community
 24-2    Affairs shall design the supported housing services to give
 24-3    individualized assistance to persons to acquire and retain living
 24-4    arrangements that are:
 24-5                (1)  typical of the general population in the area in
 24-6    which the services are provided; and
 24-7                (2)  located among residences of individuals who are
 24-8    not receiving the services.
 24-9          (c)  The supported housing services under the program must be
24-10    provided in accordance with rules of the Texas Department of Mental
24-11    Health and Mental Retardation and may include:
24-12                (1)  rental assistance for an individual who:
24-13                      (A)  meets income guidelines of the Texas
24-14    Department of Housing and Community Affairs; and
24-15                      (B)  is not receiving housing assistance from the
24-16    federal government;
24-17                (2)  consumer rehabilitation services; and
24-18                (3)  support services.
24-19          (d)  The Texas Department of Mental Health and Mental
24-20    Retardation and the Texas Department of Housing and Community
24-21    Affairs shall work with the Texas Department of Human Services to
24-22    allocate resources for the demonstration program so that priority
24-23    is given to communities that:
24-24                (1)  have the greatest number of personal care
24-25    facilities and facilities that do not comply with licensing rules
24-26    for personal care facilities; and
 25-1                (2)  have supported housing plans that the Texas
 25-2    Department of Mental Health and Mental Retardation and the Texas
 25-3    Department of Housing and Community Affairs have found to be
 25-4    consistent with the purposes of the demonstration program.
 25-5          (e)  The Texas Department of Mental Health and Mental
 25-6    Retardation and the Texas Department of Housing and Community
 25-7    Affairs shall establish an application process for communities that
 25-8    seek to participate in the demonstration program.
 25-9          (f)  The Texas Department of Mental Health and Mental
25-10    Retardation and the Texas Department of Housing and Community
25-11    Affairs shall establish a committee to supervise the design and
25-12    implementation of the demonstration program.  The committee must
25-13    include representatives of:
25-14                (1)  the Texas Department of Mental Health and Mental
25-15    Retardation;
25-16                (2)  the Texas Department of Housing and Community
25-17    Affairs;
25-18                (3)  the Texas Department of Human Services;
25-19                (4)  consumers of mental health services; and
25-20                (5)  advocates of persons with mental illness.
25-21          (g)  A community may not be selected to participate in the
25-22    demonstration program unless the person that applies for the
25-23    community's participation demonstrates collaboration between the
25-24    local mental health authority and a public housing authority,
25-25    community housing development organization, community development
25-26    corporation, or other housing organization.
 26-1          (h)  An individual is not eligible for assistance under the
 26-2    demonstration program if the individual:
 26-3                (1)  does not have a mental illness;
 26-4                (2)  does not reside in a licensed or unlicensed
 26-5    personal care facility at the time the individual is first offered
 26-6    services under the demonstration program; or
 26-7                (3)  was placed in a licensed or unlicensed personal
 26-8    care facility for the sole purpose of becoming eligible for the
 26-9    demonstration program.
26-10          (i)  The Texas Department of Mental Health and Mental
26-11    Retardation and the Texas Department of Housing and Community
26-12    Affairs shall implement the demonstration program required by this
26-13    section as soon as possible after the effective date of this Act
26-14    and not later than January 1, 2000.
26-15          (j)  On or before January 15, 2001, the Texas Department of
26-16    Mental Health and Mental Retardation and the Texas Department of
26-17    Housing and Community Affairs shall make a joint report to the
26-18    governor, the lieutenant governor, and the speaker of the house of
26-19    representatives.  The report must include an evaluation of the
26-20    demonstration program's benefits for individuals who received
26-21    services and recommendations on the continuation or termination of
26-22    the project or commencement of a similar project.
26-23          (k)  This section expires August 31, 2001.
26-24          SECTION 22.  (a)  The commissioner of health and human
26-25    services shall appoint a committee to evaluate the delivery and
26-26    regulation of the services to residents of intermediate care
 27-1    facilities for the mentally retarded under Chapters 222 and 252,
 27-2    Health and Safety Code.  The committee is composed of the following
 27-3    nine members:
 27-4                (1)  four members representing residents, families, and
 27-5    advocates;
 27-6                (2)  three members representing providers;
 27-7                (3)  one ex officio nonvoting member representing the
 27-8    Texas Department of Human Services; and
 27-9                (4)  one ex officio nonvoting member representing the
27-10    Texas Department of Mental Health and Mental Retardation.
27-11          (b)  The committee shall evaluate the impact and feasibility
27-12    of consolidating at the Texas Department of Mental Health and
27-13    Mental Retardation service delivery, licensing, surveying, and
27-14    regulation of intermediate care facilities for the mentally
27-15    retarded.  In evaluating that impact and feasibility, the committee
27-16    shall:
27-17                (1)  review the current service delivery, licensing,
27-18    surveying, and regulation;
27-19                (2)  analyze current consumer and provider satisfaction
27-20    with service delivery, licensing, surveying, and regulation;
27-21                (3)  determine the impact on residents and providers of
27-22    consolidating service delivery, licensing, surveying, and
27-23    regulation at the Texas Department of Mental Health and Mental
27-24    Retardation;
27-25                (4)  determine if the transfer of service delivery,
27-26    licensing, surveying, and regulation to the Texas Department of
 28-1    Mental Health and Mental Retardation from the Texas Department of
 28-2    Human Services, or a successor agency, to achieve consolidation is
 28-3    in the best interests of the residents; and
 28-4                (5)  adopt a plan to address the consolidation if the
 28-5    committee determines that the transfer is in the best interests of
 28-6    the residents.
 28-7          (c)  The committee shall prepare a report that includes its
 28-8    findings and recommendations, including a specific recommendation
 28-9    on whether consolidation of service delivery, licensing, surveying,
28-10    and regulation at the Texas Department of Mental Health and Mental
28-11    Retardation is or is not in the best interests of the residents.
28-12    Not later than October 1, 2000, the committee shall present the
28-13    report to the governor, the lieutenant governor, the speaker of the
28-14    house of representatives, and the presiding officers of the house
28-15    and senate committees having jurisdiction over the affected
28-16    agencies.
28-17          SECTION 23.  (a)  The transfer prescribed by this section may
28-18    not occur if the committee established under Section 22 of this Act
28-19    determines, in accordance with that section, that consolidating
28-20    service delivery, licensing, surveying, and regulation at the Texas
28-21    Department of Mental Health and Mental Retardation is not in the
28-22    best interests of the residents.
28-23          (b)  Subject to limitations imposed by Subsection (a)  of
28-24    this section or by federal law, on September 1, 2001, the
28-25    licensing, surveying, and regulation of intermediate care
28-26    facilities for the mentally retarded under Chapters 222 and 252,
 29-1    Health and Safety Code, are transferred from the Texas Department
 29-2    of Human Services, or its successor agency, to the Texas Department
 29-3    of Mental Health and Mental Retardation.
 29-4          (c)  On the transfer of the functions listed in Subsection
 29-5    (b) of this section:
 29-6                (1)  all funds, obligations, and contracts of the Texas
 29-7    Department of Human Services related to a listed function are
 29-8    transferred to the Texas Department of Mental Health and Mental
 29-9    Retardation;
29-10                (2)  all property and records in the custody of the
29-11    Texas Department of Human Services related to a listed function and
29-12    all funds appropriated by the legislature to the Texas Department
29-13    of Human Services for a listed function are transferred to the
29-14    Texas Department of Mental Health and Mental Retardation;
29-15                (3)  all employees of the Texas Department of Human
29-16    Services who perform duties related to a listed function become
29-17    employees of the Texas Department of Mental Health and Mental
29-18    Retardation, to be assigned duties by that department;
29-19                (4)  a rule or form adopted by the Texas Department of
29-20    Human Services that relates to a listed function is a rule or form
29-21    of the Texas Department of Mental Health and Mental Retardation and
29-22    remains in effect until altered by that department; and
29-23                (5)  the Texas Department of Mental Health and Mental
29-24    Retardation, in consultation with the commissioner of health and
29-25    human services, shall establish policies and procedures that
29-26    clearly delineate the functions of the department related to
 30-1    service delivery and the functions of the department related to
 30-2    licensing, surveying, and regulation.
 30-3          (d)  The secretary of state is authorized to adopt rules as
 30-4    necessary to expedite the implementation of Subdivision (4) of
 30-5    Subsection (c) of this section.
 30-6          (e)  The transfer of the functions listed in Subsection (b)
 30-7    of this section does not affect or impair any act done, any
 30-8    obligation, right, order, license, permit, rule, criterion,
 30-9    standard, or requirement existing, any investigation begun, or any
30-10    penalty accrued under former law, and that law remains in effect
30-11    for any action concerning those matters.
30-12          (f)  An action brought or proceeding commenced before the
30-13    transfer prescribed by this section is effected, including a
30-14    contested case or a remand of an action or proceeding by a
30-15    reviewing court, is governed by the law and rules applicable to the
30-16    action or proceeding before the date of the transfer.
30-17          (g)  After the transfer prescribed by this section is
30-18    effected:
30-19                (1)  a reference in law to the Texas Department of
30-20    Human Services that relates to a function listed in Subsection (b)
30-21    of this section means the Texas Department of Mental Health and
30-22    Mental Retardation; and
30-23                (2)  a reference in law to the Texas Board of Human
30-24    Services that relates to a function listed in Subsection (b) of
30-25    this section means the Texas Board of Mental Health and Mental
30-26    Retardation.
 31-1          (h)  The commissioner of health and human services shall
 31-2    facilitate and supervise the transfer prescribed by this section
 31-3    and shall ensure the proper transfer of money, information,
 31-4    equipment, employees, property, and other items necessary for the
 31-5    Texas Department of Mental Health and Mental Retardation and the
 31-6    Texas Board of Mental Health and Mental Retardation to assume
 31-7    responsibility for the licensing, surveying, and regulation of
 31-8    intermediate care facilities for the mentally retarded.
 31-9          SECTION 24.  (a)  The changes in law made by Section
31-10    532.0035, Health and Safety Code, as added by this Act, apply only
31-11    to a member of the Texas Board of Mental Health and Mental
31-12    Retardation appointed on or after the effective date of this Act.
31-13    The qualifications of a board member appointed before the effective
31-14    date of this Act are governed by the law as it existed immediately
31-15    before that date and the former law is continued in effect for that
31-16    purpose.
31-17          (b)  The changes in law to Section 534.007, Health and Safety
31-18    Code, made by this Act apply only to a person who ceases employment
31-19    on or after the effective date of this Act.  The relationship
31-20    between a community center and a former employee who terminated
31-21    employment before the effective date of this Act is governed by
31-22    Section 534.007, Health and Safety Code, as it existed immediately
31-23    before the effective date of this Act, and the former law is
31-24    continued in effect for that purpose.
31-25          (c)  The changes in law to Subsection (b), Section 534.065,
31-26    Health and Safety Code, made by this Act apply only to a contract
 32-1    considered for renewal on or after the effective date of this Act.
 32-2    Actions related to the renewal of a contract that are taken before
 32-3    the effective date of this Act and a contract renewed before that
 32-4    date are governed by Section 534.065, Health and Safety Code, as it
 32-5    existed immediately before the effective date of this Act, and the
 32-6    former law is continued in effect for that purpose.
 32-7          SECTION 25.  This Act takes effect September 1, 1999.
 32-8          SECTION 26.  The importance of this legislation and the
 32-9    crowded condition of the calendars in both houses create an
32-10    emergency and an imperative public necessity that the
32-11    constitutional rule requiring bills to be read on three several
32-12    days in each house be suspended, and this rule is hereby suspended.
                                                                S.B. No. 358
         ________________________________   ________________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 358 passed the Senate on
         April 29, 1999, by a viva-voce vote; May 18, 1999, Senate refused
         to concur in House amendments and requested appointment of
         Conference Committee; May 20, 1999, House granted request of the
         Senate; May 30, 1999, Senate adopted Conference Committee Report by
         a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 358 passed the House, with
         amendments, on May 14, 1999, by a non-record vote; May 20, 1999,
         House granted request of the Senate for appointment of Conference
         Committee; May 30, 1999, House adopted Conference Committee Report
         by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         ________________________________
                      Date
         ________________________________
                    Governor