1-1 By: Nelson S.B. No. 773 1-2 (In the Senate - Filed March 2, 1999; March 3, 1999, read 1-3 first time and referred to Committee on Health Services; 1-4 March 10, 1999, reported favorably by the following vote: Yeas 5, 1-5 Nays 0; March 10, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the management of a community mental health center 1-9 under certain circumstances. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter A, Chapter 534, Health and Safety 1-12 Code, is amended by adding Sections 534.038, 534.039, and 534.040 1-13 to read as follows: 1-14 Sec. 534.038. APPOINTMENT OF MANAGER OR MANAGEMENT TEAM. 1-15 (a) The commissioner may appoint a manager or management team to 1-16 manage and operate a community center if the commissioner finds 1-17 that: 1-18 (1) the center or an officer or employee of the 1-19 center: 1-20 (A) intentionally, recklessly, or negligently 1-21 failed to discharge the center's duties under a contract with the 1-22 department; 1-23 (B) misused state or federal money; 1-24 (C) engaged in a fraudulent act, transaction, 1-25 practice, or course of business; 1-26 (D) endangers or may endanger the life, health, 1-27 or safety of a person served by the center; 1-28 (E) failed to keep fiscal records or maintain 1-29 proper control over center assets as prescribed by Chapter 783, 1-30 Government Code; 1-31 (F) failed to respond to a deficiency in a 1-32 review or audit; 1-33 (G) substantially failed to operate within the 1-34 functions and purposes defined in the center's plan; or 1-35 (H) otherwise substantially failed to comply 1-36 with this subchapter or department rules; and 1-37 (2) contract sanctions and intervention with the local 1-38 board of trustees failed to bring the center into compliance with 1-39 the center's plan or contract. 1-40 (b) The department shall give written notification to the 1-41 center and local agency or combination of agencies responsible for 1-42 making appointments to the local board of trustees regarding: 1-43 (1) the appointment of the manager or management team; 1-44 and 1-45 (2) the circumstances on which the appointment is 1-46 based. 1-47 (c) The commissioner may require the center to pay costs 1-48 incurred by the manager or management team. 1-49 (d) The center may appeal the commissioner's decision to 1-50 appoint a manager or management team as prescribed by board rule. 1-51 The filing of a notice of appeal stays the appointment unless the 1-52 commissioner based the appointment on a finding under Subsection 1-53 (a)(1)(D). 1-54 Sec. 534.039. POWERS AND DUTIES OF MANAGEMENT TEAM. (a) As 1-55 the commissioner determines for each appointment, a manager or 1-56 management team appointed under Section 534.038 may: 1-57 (1) evaluate, redesign, modify, administer, supervise, 1-58 or monitor a procedure, operation, or the management of a community 1-59 center; 1-60 (2) hire, supervise, discipline, reassign, or 1-61 terminate the employment of a center employee; 1-62 (3) reallocate a resource and manage an asset of the 1-63 center; 1-64 (4) provide technical assistance to an officer or 2-1 employee of the center; 2-2 (5) require or provide staff development; 2-3 (6) require that a financial transaction, expenditure, 2-4 or contract for goods and services must be approved by the manager 2-5 or management team; 2-6 (7) redesign, modify, or terminate a center program or 2-7 service; 2-8 (8) direct the executive director, local board of 2-9 trustees, chief financial officer, or a fiscal or program officer 2-10 of the center to take an action; 2-11 (9) exercise a power or duty of an officer or employee 2-12 of the center; or 2-13 (10) make a recommendation to the local agency or 2-14 combination of agencies responsible for appointments to the local 2-15 board of trustees regarding the removal of a center trustee. 2-16 (b) The manager or management team shall supervise the 2-17 exercise of a power or duty by the local board of trustees. 2-18 (c) The manager or management team shall report monthly to 2-19 the commissioner and local board of trustees on actions taken. 2-20 (d) A manager or a member of a management team appointed 2-21 under this section is immune from liability arising from the good 2-22 faith performance of a function described by this section. 2-23 (e) A manager or management team appointed under this 2-24 section may not use an asset or money contributed by a county, 2-25 municipality, or other local funding entity without the approval of 2-26 the county, municipality, or entity. 2-27 Sec. 534.040. RESTORING MANAGEMENT TO CENTER. (a) Each 2-28 month, the commissioner shall evaluate the performance of a 2-29 community center managed by a manager or team appointed under 2-30 Section 534.038 to determine the feasibility of restoring the 2-31 center's management and operation to a local board of trustees. 2-32 (b) The authority of the manager or management team 2-33 continues until: 2-34 (1) the commissioner determines that the relevant 2-35 factors listed under Section 534.038(a)(1) no longer exist; or 2-36 (2) the department cancels its contract with the 2-37 center. 2-38 (c) Following a determination under Subsection (b)(1), the 2-39 commissioner shall terminate the authority of the manager or 2-40 management team and restore authority to manage and operate the 2-41 center to the center's authorized officers and employees. 2-42 SECTION 2. This Act takes effect September 1, 1999. 2-43 SECTION 3. The importance of this legislation and the 2-44 crowded condition of the calendars in both houses create an 2-45 emergency and an imperative public necessity that the 2-46 constitutional rule requiring bills to be read on three several 2-47 days in each house be suspended, and this rule is hereby suspended. 2-48 * * * * *