LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 11, 2001
  
  
          TO:  Honorable Patricia Gray, Chair, House Committee on Public
               Health
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3583  by Coleman (Relating to required contract
               provisions and sanctions for ICF-MR program providers.),
               As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would add a section to Chapter 533 of the Health and Safety Code
under Subchapter C, Powers and Duties Relating to ICF/MR Program.  This
section would require the Department of Mental Health and Mental
Retardation (MHMR) to include in its contracts with ICF/MR program
providers the provision that the contract terminates if MHMR imposes a
vendor hold three times in an 18-month period.  It would also require
MHMR to immediately impose a vendor hold or contract cancellation, should
the Department of Human Services recommend such action, without
conducting further investigation or allowing the program provider to take
corrective action.

The bill would repeal on September 1, 2001, a rule adopted by MHMR before
September 1, 2001, relating to the imposition of vendor holds and
contract cancellations.  It also specifies that the change in law as
mentioned above applies only to contracts entered into on or after the
effective date of this Act.  Contracts entered into before this date are
governed by the law in effect on the date the contract was entered into.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   324   Texas Department of Human Services, 655   TX
                   Dept. of Mental Health & Mental Retardation
LBB Staff:         JK, HD, MB