76R14534 JJT-F                          
         By Madla                                               S.B. No. 358
         Substitute the following for S.B. No. 358:
         By Gray                                            C.S.S.B. No. 358
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas Department
 1-3     of Mental Health and Mental Retardation.
 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
2-27     to ensure that [under which] all personnel decisions [transactions]
 3-1     are made without regard to race, color, disability [handicap], sex,
 3-2     religion, age, or national origin.  The policy statement must
 3-3     include:
 3-4                 (1)  personnel policies, including policies relating to
 3-5     recruitment, evaluation, selection, [appointment,] training, and
 3-6     promotion of personnel, that show the intent of the department to
 3-7     avoid the unlawful employment practices described by Chapter 21,
 3-8     Labor Code;
 3-9                 (2)  an analysis of the extent to which the composition
3-10     of the department's personnel is in accordance with state and
3-11     federal law and a description of reasonable methods to achieve
3-12     compliance with state and federal law[;]
3-13                 [(2)  a comprehensive analysis of the department work
3-14     force that meets federal and state guidelines]; and
3-15                 (3)  procedures by which a determination can be made of
3-16     significant underutilization in the department work force of all
3-17     persons for whom federal or state guidelines encourage a more
3-18     equitable balance and reasonable methods to appropriately address
3-19     those areas of significant underutilization.
3-20           (e)  The [A] policy statement [prepared under Subsection (d)]
3-21     must:
3-22                 (1)  [cover an annual period;]
3-23                 [(2)]  be updated [at least] annually;
3-24                 (2)  be reviewed by the Commission on Human Rights for
3-25     compliance with Subsection (d)(1); and
3-26                 (3)  be filed with the governor's office [governor].
3-27           SECTION 4.  Subchapter A, Chapter 533, Health and Safety
 4-1     Code, is amended by adding Section 533.013 to read as follows:
 4-2           Sec. 533.013.  DUPLICATION OF REHABILITATION SERVICES.  The
 4-3     department shall enter into an agreement with the Texas
 4-4     Rehabilitation Commission that defines the roles and
 4-5     responsibilities of the department and the commission regarding the
 4-6     agencies' shared client populations.  The agreement must establish
 4-7     methods to prevent the duplication and fragmentation of employment
 4-8     services provided by the agencies.
 4-9           SECTION 5.  Section 533.032, Health and Safety Code, is
4-10     amended to read as follows:
4-11           Sec. 533.032.  LONG-RANGE PLANNING [PLAN].  (a)  The
4-12     department shall have a long-range plan covering at least six years
4-13     that includes at least the provisions required by Sections 531.022
4-14     and 531.023, Government Code [Section 10, Article 4413(502),
4-15     Revised Statutes], and Chapter 2056, Government Code.  The plan
4-16     must cover the provision of services in and policies for
4-17     state-operated institutions and ensure that the medical needs of
4-18     the most medically fragile persons the department serves are met.
4-19           (b)  In developing the plan, the department shall:
4-20                 (1)  solicit input from:
4-21                       (A)  local authorities for mental health and
4-22     mental retardation;
4-23                       (B)  community representatives;
4-24                       (C)  consumers of mental health and mental
4-25     retardation services, including consumers of campus-based services,
4-26     and family members of consumers of those services; and
4-27                       (D)  other interested persons; and
 5-1                 (2)  consider the report developed under Subsection
 5-2     (c).
 5-3           (c)  The department shall develop a report containing
 5-4     information and recommendations regarding the most efficient
 5-5     long-term use and management of the department's campus-based
 5-6     facilities.  The report must:
 5-7                 (1)  project future bed requirements for state schools
 5-8     and state hospitals;
 5-9                 (2)  document the methodology used to develop the
5-10     projection of future bed requirements;
5-11                 (3)  project maintenance costs for institutional
5-12     facilities;
5-13                 (4)  recommend strategies to maximize the use of
5-14     institutional facilities; and
5-15                 (5)  specify how each state school and state hospital
5-16     will:
5-17                       (A)  serve and support the communities and
5-18     consumers in its service area; and
5-19                       (B)  fulfill statewide needs for specialized
5-20     services.
5-21           (d)  In developing the report under Subsection (c) the
5-22     department shall consider:
5-23                 (1)  the medical needs of the most medically fragile of
5-24     its clients;
5-25                 (2)  the provision of services to clients with severe
5-26     and profound mental retardation and to persons with mental
5-27     retardation who are medically fragile or have behavioral problems;
 6-1                 (3)  the program and service preference information
 6-2     collected under Section 533.038; and
 6-3                 (4)  input solicited from consumers of services of
 6-4     state schools and state hospitals.
 6-5           (e)  The department shall:
 6-6                 (1)  attach the report to the department's legislative
 6-7     appropriations request for each biennium;
 6-8                 (2)  at the time the department presents its
 6-9     legislative appropriations request, present the report to the:
6-10                       (A)  governor;
6-11                       (B)  governor's budget office;
6-12                       (C)  lieutenant governor;
6-13                       (D)  speaker of the house of representatives;
6-14                       (E)  Legislative Budget Board; and
6-15                       (F)  Health and Human Services Commission; and
6-16                 (3)  update the department's long-range plan biennially
6-17     and include the report in the plan.
6-18           SECTION 6.  Subchapter B, Chapter 533, Health and Safety
6-19     Code, is amended by adding Section 533.0325 to read as follows:
6-20           Sec. 533.0325.  CONTINUUM OF SERVICES IN CAMPUS FACILITIES.
6-21     The board by rule shall establish criteria regarding the uses of
6-22     the department's campus-based facilities as part of a full
6-23     continuum of services.
6-24           SECTION 7.  Subchapter B, Chapter 533, Health and Safety
6-25     Code, is amended by adding Sections 533.0345 and 533.0346 to read
6-26     as follows:
6-27           Sec. 533.0345.  STATE AGENCY SERVICES STANDARDS.  (a)  The
 7-1     department by rule shall develop model program standards for mental
 7-2     health and mental retardation services for use by each state agency
 7-3     that provides or pays for mental health or mental retardation
 7-4     services.  The department shall provide the model standards to each
 7-5     agency that provides mental health or mental retardation services
 7-6     as identified by the Health and Human Services Commission.
 7-7           (b)  Model standards developed under Subsection (a) must be
 7-8     designed to improve the consistency of mental health and mental
 7-9     retardation services provided by or through a state agency.
7-10           (c)  Biennially the department shall review the model
7-11     standards developed under Subsection (a) and determine whether each
7-12     standard contributes effectively to the consistency of service
7-13     delivery by state agencies.
7-14           Sec. 533.0346.  AUTHORITY TO TRANSFER SERVICES TO COMMUNITY
7-15     CENTERS.  The department may transfer operations of and services
7-16     provided at the Amarillo State Center, Beaumont State Center, or
7-17     Laredo State Center to a community center established under Chapter
7-18     534.
7-19           SECTION 8.  Subchapter B, Chapter 533, Health and Safety
7-20     Code, is amended by adding Section 533.0351 to read as follows:
7-21           Sec. 533.0351.  LOCAL AUTHORITY TECHNICAL ADVISORY COMMITTEE.
7-22     (a)  In this section "local authority" means a local mental health
7-23     or mental retardation authority.
7-24           (b)  The commissioner shall establish a nine-member local
7-25     authority advisory committee to advise the commissioner on
7-26     technical and administrative issues that directly affect local
7-27     authority responsibilities.
 8-1           (c)  The committee is composed of representatives of local
 8-2     authorities and one member representing the public appointed by the
 8-3     commissioner.  In appointing the members, the commissioner shall
 8-4     ensure a balanced representation of:
 8-5                 (1)  different regions of this state;
 8-6                 (2)  rural and urban counties; and
 8-7                 (3)  single-county and multicounty local authorities.
 8-8           (d)  Except for the member representing the public, members
 8-9     appointed to the advisory committee must have expertise in the
8-10     day-to-day operations of a local authority.
8-11           (e)  The advisory committee shall:
8-12                 (1)  review rules and proposed rules related to local
8-13     authority operations;
8-14                 (2)  advise the commissioner regarding evaluation and
8-15     coordination of initiatives related to local authority operations;
8-16                 (3)  advise and assist the department in developing a
8-17     method of contracting with local authorities that will result in
8-18     contracts that are flexible and responsive to:
8-19                       (A)  the needs and services of local communities;
8-20     and
8-21                       (B)  the department's performance expectations;
8-22                 (4)  coordinate with and monitor the activities of work
8-23     groups whose actions may affect local authority operations;
8-24                 (5)  report to the board on the committee's activities
8-25     and recommendations at least once each fiscal quarter; and
8-26                 (6)  work with the commissioner as the commissioner
8-27     directs.
 9-1           (f)  For any written recommendation the committee makes to
 9-2     the department, the department shall provide to the committee a
 9-3     written response regarding any action taken on the recommendation
 9-4     or the reasons for the department's inaction on the subject of the
 9-5     recommendation.
 9-6           (g)  The committee is subject to Chapter 2110, Government
 9-7     Code.  The department by rule shall provide, in accordance with
 9-8     Section 2110.008, Government Code, that the committee is abolished
 9-9     on September 1, 2007, unless the board affirmatively votes to
9-10     continue the committee in existence.
9-11           SECTION 9.  Subchapter B, Chapter 533, Health and Safety
9-12     Code, is amended by adding Section 533.0356 to read as follows:
9-13           Sec. 533.0356.  LOCAL BEHAVIORAL HEALTH AUTHORITIES.  (a)  In
9-14     this section, "commission" means the Texas Commission on Alcohol
9-15     and Drug Abuse.
9-16           (b)  The department and the commission jointly may designate
9-17     a local behavioral health authority in a local service area to
9-18     provide mental health and chemical dependency services in that
9-19     area.  The board and the commission may delegate to an authority
9-20     designated under this section the authority and responsibility for
9-21     planning, policy development, coordination, resource allocation,
9-22     and resource development for and oversight of mental health and
9-23     chemical dependency services in that service area.  An authority
9-24     designated under this section has:
9-25                 (1)  all the responsibilities and duties of a local
9-26     mental health authority provided by Section 533.035 and by
9-27     Subchapter B, Chapter 534; and
 10-1                (2)  the responsibility and duty to ensure that
 10-2    chemical dependency services are provided in the service area as
 10-3    described by the statewide service delivery plan adopted under
 10-4    Section 461.0124.
 10-5          (c)  In the planning and implementation of services, the
 10-6    authority shall give proportionate priority to mental health
 10-7    services and chemical dependency services that ensures that funds
 10-8    purchasing services are used in accordance with specific regulatory
 10-9    and statutory requirements that govern the respective funds.
10-10          (d)  A local mental health authority may apply to the
10-11    department and commission for designation as a local behavioral
10-12    health authority.
10-13          (e)  The department and commission, by contract or by a
10-14    case-rate or capitated arrangement or another method of allocation,
10-15    may disburse money, including federal money, to a local behavioral
10-16    health authority for services.
10-17          (f)  A local behavioral health authority, with the approval
10-18    of the department or the commission as provided by contract, shall
10-19    use money received under Subsection (e) to ensure that mental
10-20    health and chemical dependency services are provided in the local
10-21    service area at the same level as the level of services previously
10-22    provided through:
10-23                (1)  the local mental health authority; and
10-24                (2)  the commission.
10-25          (g)  In determining whether to designate a local behavioral
10-26    health authority for a service area and in determining the
10-27    functions of the authority if designated, the department and
 11-1    commission shall solicit and consider written comments from any
 11-2    interested person including community representatives, persons who
 11-3    are consumers of the proposed services of the authority, and family
 11-4    members of those consumers.
 11-5          (h)  An authority designated under this section shall
 11-6    demonstrate to the department and the commission that services
 11-7    involving state funds that the authority oversees comply with
 11-8    relevant state standards.
 11-9          (i)  The board and the commission jointly may adopt rules to
11-10    govern the operations of local behavioral health authorities.  The
11-11    department and the commission jointly may assign the local
11-12    behavioral health authority the duty of providing a single point of
11-13    entry for mental health and chemical dependency services.
11-14          SECTION 10.  Section 533.038, Health and Safety Code, is
11-15    amended by adding Subsections (d), (e), and (f) to read as follows:
11-16          (d)  A person with mental retardation, or a person's legally
11-17    authorized representative, seeking residential services shall
11-18    receive a clear explanation of programs and services for which the
11-19    person is determined to be eligible, including state schools,
11-20    community ICF-MR programs waiver services under Section 1915(c) of
11-21    the federal Social Security Act (42 U.S.C. Section 1396n(c)), or
11-22    other services.  The preferred programs and services chosen by the
11-23    person or the person's legally authorized representative shall be
11-24    documented in the person's record.  If the preferred programs or
11-25    services are not available, the person or the person's legally
11-26    authorized representative shall be given assistance in gaining
11-27    access to alternative services and the selected waiting list.
 12-1          (e)  The department shall ensure that the information
 12-2    regarding program and service preferences collected under
 12-3    Subsection (d) is documented and maintained in a manner that
 12-4    permits the department to access and use the information for
 12-5    planning activities conducted under Section 533.032.
 12-6          (f)  The department may spend money appropriated for the
 12-7    state school system only in accordance with limitations imposed by
 12-8    the General  Appropriations Act.
 12-9          SECTION 11.  Subchapter B, Chapter 533, Health and Safety
12-10    Code, is amended by adding Section 533.039 to read as follows:
12-11          Sec. 533.039.  CLIENT SERVICES OMBUDSMAN.  (a)  The
12-12    commissioner shall employ an ombudsman responsible for assisting a
12-13    person, or a parent or guardian of a person, who has been denied
12-14    service by the department, a department program or facility, or a
12-15    local mental health or mental retardation authority.
12-16          (b)  The ombudsman shall:
12-17                (1)  explain and provide information on department and
12-18    local mental health or mental retardation authority services,
12-19    facilities, and programs and the rules, procedures, and guidelines
12-20    applicable to the person denied services; and
12-21                (2)  assist the person in gaining access to an
12-22    appropriate program or in placing the person on an appropriate
12-23    waiting list.
12-24          SECTION 12.  Subsection (a), Section 534.004, Health and
12-25    Safety Code, is amended to read as follows:
12-26          (a)  The local agency or organizational combination of local
12-27    agencies that establishes a community center shall prescribe:
 13-1                (1)  the application procedure for a position on the
 13-2    board of trustees;
 13-3                (2)  the procedure and criteria for making appointments
 13-4    to the board of trustees;
 13-5                (3)  the procedure for posting notice of and filling a
 13-6    vacancy on the board of trustees; and
 13-7                (4)  the grounds and procedure for removing a member of
 13-8    the board of trustees[; and]
 13-9                [(5)  a procedure to ensure that an appointed member of
13-10    a board of trustees appointed by a local agency or organizational
13-11    combination of local agencies primarily located in only one county
13-12    serves not more than four consecutive and complete two-year terms].
13-13          SECTION 13.  Section 534.005, Health and Safety Code, is
13-14    amended to read as follows:
13-15          Sec. 534.005.  Terms; Vacancies.  (a)  Appointed members of
13-16    the board of trustees who are not members of a local agency's
13-17    governing body serve staggered two-year terms.  In appointing the
13-18    initial members, the appointing authority shall designate not less
13-19    than one-third or more than one-half of the members to serve
13-20    one-year terms and shall designate the remaining members to serve
13-21    two-year terms.
13-22          (b)  A vacancy on a board of trustees composed of qualified
13-23    voters is filled by appointment for the remainder of the unexpired
13-24    term.
13-25          [(c)  If the local agency or organizational combination of
13-26    local agencies that appoints the board of trustees is primarily
13-27    located in only one county, a person appointed to the board of
 14-1    trustees may not serve more than four consecutive and complete
 14-2    two-year terms.]
 14-3          SECTION 14.  Section 534.007, Health and Safety Code, is
 14-4    amended to read as follows:
 14-5          Sec. 534.007.  PROHIBITED ACTIVITIES BY FORMER OFFICERS OR
 14-6    EMPLOYEES; OFFENSE.  (a)  A [For one year after the date on which
 14-7    a] former officer or employee of a community center who ceases
 14-8    [terminates] service or employment with the center[, the
 14-9    individual] may not represent any person or receive compensation
14-10    for services rendered on behalf of any person regarding a
14-11    particular matter in which the former officer or employee
14-12    participated during the period of employment, either through
14-13    personal involvement or because the case or proceeding was a matter
14-14    within the officer's or employee's official[, directly or
14-15    indirectly, attempt or aid in the attempt to procure a contract
14-16    with the community center in which the individual served or was
14-17    employed if the contract relates to a program or service in which
14-18    the individual was directly concerned or for which the individual
14-19    had administrative] responsibility.
14-20          (b)  This section does not apply to:
14-21                (1)  a former employee who is compensated on the last
14-22    date of service or employment below the amount prescribed by the
14-23    General Appropriations Act for [step 1,] salary group 17, Schedule
14-24    A, or salary group 9, Schedule B, of the position classification
14-25    salary schedule; or
14-26                (2)  a former officer or employee who is employed by a
14-27    state agency or another community center.
 15-1          (c)  Subsection (a) does not apply to a proceeding related to
 15-2    policy development that was concluded before the officer's or
 15-3    employee's service or employment ceased.
 15-4          (d)  A former officer or employee of a community center
 15-5    commits an offense if the former officer or employee violates this
 15-6    section.  An offense under this section is a Class A misdemeanor.
 15-7          (e)  In this section:
 15-8                (1)  "Participated" means to have taken action as an
 15-9    officer or employee through decision, approval, disapproval,
15-10    recommendation, giving advice, investigation, or similar action.
15-11                (2)  "Particular matter" means a specific
15-12    investigation, application, request for a ruling or determination,
15-13    proceeding related to the development of policy, contract, claim,
15-14    charge, accusation, arrest, or judicial or other proceeding.
15-15          SECTION 15.  Subsection (b), Section 534.065, Health and
15-16    Safety Code, is amended to read as follows:
15-17          (b)  The mental health or mental retardation authority may
15-18    [shall] renew the contract only if the contract meets the criteria
15-19    provided by Section 533.016 [if the authority finds that:]
15-20                [(1)  funding is available;]
15-21                [(2)  the authority plans to continue the services;]
15-22                [(3)  the provider is in substantial compliance with
15-23    each material provision of the contract, unless the authority
15-24    determines that the provision is not legal and enforceable under
15-25    applicable state and federal law;]
15-26                [(4)  the provider is providing a reasonably adequate
15-27    level of service in accordance with the contract and at a
 16-1    reasonable cost;]
 16-2                [(5)  the provider agrees to a renewal contract that is
 16-3    substantially in compliance with a model contract developed by the
 16-4    department under Section 534.055;]
 16-5                [(6)  the provider was during the term of any contract
 16-6    with the authority and is at the time of renewal in compliance with
 16-7    applicable laws governing the subject matter of the contract; and]
 16-8                [(7)  neither the provider nor any of its officers,
 16-9    directors, or principal employees has been convicted or found by a
16-10    final administrative decision to have been guilty of fraud or abuse
16-11    in the provision of health care services under a contract with a
16-12    state or federal agency].
16-13          SECTION 16.  Chapter 461, Health and Safety Code, is amended
16-14    by adding Section 461.0128 to read as follows:
16-15          Sec. 461.0128.  STATE AGENCY SERVICES STANDARDS.  (a)  The
16-16    commission by rule shall develop model program standards for
16-17    substance abuse services for use by each state agency that provides
16-18    or pays for substance abuse services.  The commission shall provide
16-19    the model standards to each agency that provides substance abuse as
16-20    identified by the Health and Human Services Commission.
16-21          (b)  Model standards developed under Subsection (a) must be
16-22    designed to improve the consistency of substance abuse services
16-23    provided by or through a state agency.
16-24          (c)  Biennially the commission shall review the model
16-25    standards developed under Subsection (a) and determine whether each
16-26    standard contributes effectively to the consistency of service
16-27    delivery by state agencies.
 17-1          SECTION 17.  Chapter 461, Health and Safety Code, is amended
 17-2    by adding Section 461.0129 to read as follows:
 17-3          Sec. 461.0129.  LOCAL BEHAVIORAL HEALTH AUTHORITIES.  The
 17-4    commission may designate and provide services through local
 17-5    behavioral health authorities as provided by Section 533.0356 and
 17-6    rules adopted jointly with the Texas Board of Mental Health and
 17-7    Mental Retardation.
 17-8          SECTION 18.  (a)  The changes in law made by Section
 17-9    532.0035, Health and Safety Code, as added by this Act, apply only
17-10    to a member of the Texas Board of Mental Health and Mental
17-11    Retardation appointed on or after the effective date of this Act.
17-12    The qualifications of a board member appointed before the effective
17-13    date of this Act are governed by the law as it existed immediately
17-14    before that date and the former law is continued in effect for that
17-15    purpose.
17-16          (b)  The changes in law to Section 534.007, Health and Safety
17-17    Code, made by this Act apply only to a person who ceases employment
17-18    on or after the effective date of this Act.  The relationship
17-19    between a community center and a former employee who terminated
17-20    employment before the effective date of this Act is governed by
17-21    Section 534.007, Health and Safety Code, as it existed immediately
17-22    before the effective date of this Act, and the former law is
17-23    continued in effect for that purpose.
17-24          (c)  The changes in law to Subsection (b), Section 534.065,
17-25    Health and Safety Code, made by this Act apply only to a contract
17-26    considered for renewal on or after the effective date of this Act.
17-27    Actions related to the renewal of a contract that are taken before
 18-1    the effective date of this Act and a contract renewed before that
 18-2    date are governed by Section 534.065, Health and Safety Code, as it
 18-3    existed immediately before the effective date of this Act, and the
 18-4    former law is continued in effect for that purpose.
 18-5          SECTION 19.  This Act takes effect September 1, 1999.
 18-6          SECTION 20.  The importance of this legislation and the
 18-7    crowded condition of the calendars in both houses create an
 18-8    emergency and an imperative public necessity that the
 18-9    constitutional rule requiring bills to be read on three several
18-10    days in each house be suspended, and this rule is hereby suspended.