By Nelson S.B. No. 773 76R4013 SMJ-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the management of a community mental health center 1-3 under certain circumstances. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 534, Health and Safety 1-6 Code, is amended by adding Sections 534.038, 534.039, and 534.040 1-7 to read as follows: 1-8 Sec. 534.038. APPOINTMENT OF MANAGER OR MANAGEMENT TEAM. 1-9 (a) The commissioner may appoint a manager or management team to 1-10 manage and operate a community center if the commissioner finds 1-11 that: 1-12 (1) the center or an officer or employee of the 1-13 center: 1-14 (A) intentionally, recklessly, or negligently 1-15 failed to discharge the center's duties under a contract with the 1-16 department; 1-17 (B) misused state or federal money; 1-18 (C) engaged in a fraudulent act, transaction, 1-19 practice, or course of business; 1-20 (D) endangers or may endanger the life, health, 1-21 or safety of a person served by the center; 1-22 (E) failed to keep fiscal records or maintain 1-23 proper control over center assets as prescribed by Chapter 783, 1-24 Government Code; 2-1 (F) failed to respond to a deficiency in a 2-2 review or audit; 2-3 (G) substantially failed to operate within the 2-4 functions and purposes defined in the center's plan; or 2-5 (H) otherwise substantially failed to comply 2-6 with this subchapter or department rules; and 2-7 (2) contract sanctions and intervention with the local 2-8 board of trustees failed to bring the center into compliance with 2-9 the center's plan or contract. 2-10 (b) The department shall give written notification to the 2-11 center and local agency or combination of agencies responsible for 2-12 making appointments to the local board of trustees regarding: 2-13 (1) the appointment of the manager or management team; 2-14 and 2-15 (2) the circumstances on which the appointment is 2-16 based. 2-17 (c) The commissioner may require the center to pay costs 2-18 incurred by the manager or management team. 2-19 (d) The center may appeal the commissioner's decision to 2-20 appoint a manager or management team as prescribed by board rule. 2-21 The filing of a notice of appeal stays the appointment unless the 2-22 commissioner based the appointment on a finding under Subsection 2-23 (a)(1)(D). 2-24 Sec. 534.039. POWERS AND DUTIES OF MANAGEMENT TEAM. (a) As 2-25 the commissioner determines for each appointment, a manager or 2-26 management team appointed under Section 534.038 may: 2-27 (1) evaluate, redesign, modify, administer, supervise, 3-1 or monitor a procedure, operation, or the management of a community 3-2 center; 3-3 (2) hire, supervise, discipline, reassign, or 3-4 terminate the employment of a center employee; 3-5 (3) reallocate a resource and manage an asset of the 3-6 center; 3-7 (4) provide technical assistance to an officer or 3-8 employee of the center; 3-9 (5) require or provide staff development; 3-10 (6) require that a financial transaction, expenditure, 3-11 or contract for goods and services must be approved by the manager 3-12 or management team; 3-13 (7) redesign, modify, or terminate a center program or 3-14 service; 3-15 (8) direct the executive director, local board of 3-16 trustees, chief financial officer, or a fiscal or program officer 3-17 of the center to take an action; 3-18 (9) exercise a power or duty of an officer or employee 3-19 of the center; or 3-20 (10) make a recommendation to the local agency or 3-21 combination of agencies responsible for appointments to the local 3-22 board of trustees regarding the removal of a center trustee. 3-23 (b) The manager or management team shall supervise the 3-24 exercise of a power or duty by the local board of trustees. 3-25 (c) The manager or management team shall report monthly to 3-26 the commissioner and local board of trustees on actions taken. 3-27 (d) A manager or a member of a management team appointed 4-1 under this section is immune from liability arising from the good 4-2 faith performance of a function described by this section. 4-3 (e) A manager or management team appointed under this 4-4 section may not use an asset or money contributed by a county, 4-5 municipality, or other local funding entity without the approval of 4-6 the county, municipality, or entity. 4-7 Sec. 534.040. RESTORING MANAGEMENT TO CENTER. (a) Each 4-8 month, the commissioner shall evaluate the performance of a 4-9 community center managed by a manager or team appointed under 4-10 Section 534.038 to determine the feasibility of restoring the 4-11 center's management and operation to a local board of trustees. 4-12 (b) The authority of the manager or management team 4-13 continues until: 4-14 (1) the commissioner determines that the relevant 4-15 factors listed under Section 534.038(a)(1) no longer exist; or 4-16 (2) the department cancels its contract with the 4-17 center. 4-18 (c) Following a determination under Subsection (b)(1), the 4-19 commissioner shall terminate the authority of the manager or 4-20 management team and restore authority to manage and operate the 4-21 center to the center's authorized officers and employees. 4-22 SECTION 2. This Act takes effect September 1, 1999. 4-23 SECTION 3. The importance of this legislation and the 4-24 crowded condition of the calendars in both houses create an 4-25 emergency and an imperative public necessity that the 4-26 constitutional rule requiring bills to be read on three several 4-27 days in each house be suspended, and this rule is hereby suspended.