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 ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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