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.