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.
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