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Amend CSHB 2292 by adding the following appropriately 
numbered sections:   
	SECTION ____.  Section 533.035, Health and Safety Code, is 
amended by amending Subsection (c) and by adding Subsections (e), 
(f), and (g) to read as follows:
	(c)  A local mental health and mental retardation authority, 
with the department's approval, shall use the funds received under 
Subsection (b) to ensure mental health, mental retardation, and 
chemical dependency services are provided in the local service 
area.  The local authority shall consider public input, ultimate 
cost-benefit, and client care issues to ensure consumer choice and 
the best use of public money in:
		(1)  assembling a network of service providers; and                    
		(2)  [determining whether to become a provider of a 
service or to contract that service to another organization;  and
		[(3)]  making recommendations relating to the most 
appropriate and available treatment alternatives for individuals 
in need of mental health or mental retardation services.
	(e)  In assembling a network of service providers, a local 
mental health and mental retardation authority may serve as a 
provider of services only as a provider of last resort and only if 
the authority demonstrates to the department that:
		(1)  the authority has made every reasonable attempt to 
solicit the development of an available and appropriate provider 
base that is sufficient to meet the needs of consumers in its 
service area; and
		(2)  there is not a willing provider of the relevant 
services in the authority's service area or in the county where the 
provision of the services is needed.
	(f)  The department shall review the appropriateness of a 
local mental health and mental retardation authority's status as a 
service provider at least annually.
	(g)  The department, together with local mental health and 
mental retardation authorities and other interested persons, shall 
develop and implement a plan to privatize all services by 
intermediate facilities for persons with mental retardation and all 
related waiver services programs operated by an authority.  The 
transfer of services to private providers must occur on or before 
August 31, 2004.  The plan must provide criteria that:
		(1)  promote the transition of services to private 
providers in a manner that causes the least disruption practicable 
to the consumers of those services;
		(2)  ensure the continuation of services at the same 
level of service provided before the transfer;
		(3)  provide for consumer choice as appropriate and as 
required by rule; and
		(4)  require local mental health and mental retardation 
authorities to implement the privatization of services in a 
fiscally responsible manner.
	SECTION ____.  Section 534.001(b), Health and Safety Code, 
is amended to read as follows:
	(b)  In accordance with this subtitle, a [A] community center 
may be:
		(1)  a community mental health center that provides 
mental health services; 
		(2)  a community mental retardation center that 
provides mental retardation services; or
		(3)  a community mental health and mental retardation 
center that provides mental health and mental retardation services.
	SECTION ____.  Section 535.002(b), Health and Safety Code, 
is amended to read as follows:
	(b)  If feasible and economical, the department may use local 
mental health and mental retardation authorities to implement this 
chapter. However, the department may not designate a [those] local 
mental health or [and] mental retardation authority [authorities] 
as a provider [the sole providers] of services if other providers 
are available.