S.B. No. 464




AN ACT

relating to the appointment of a management team to manage and 
operate a community center for mental health or mental retardation 
services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsections (a) and (d), Section 534.038, Health 
and Safety Code, are amended to read as follows:
	(a)  The commissioner may appoint a manager or management 
team to manage and operate a community center if the commissioner 
finds that[:
		[(1)]  the center or an officer or employee of the 
center: 
		(1) [(A)]  intentionally, recklessly, or negligently 
failed to discharge the center's duties under a contract with the 
department;
		(2) [(B)]  misused state or federal money;            
		(3) [(C)]  engaged in a fraudulent act, transaction, 
practice, or course of business;
		(4) [(D)]  endangers or may endanger the life, health, 
or safety of a person served by the center;
		(5) [(E)]  failed to keep fiscal records or maintain 
proper control over center assets as prescribed by Chapter 783, 
Government Code;
		(6) [(F)]  failed to respond to a deficiency in a 
review or audit;
		(7) [(G)]  substantially failed to operate within the 
functions and purposes defined in the center's plan; or
		(8) [(H)]  otherwise substantially failed to comply 
with this subchapter or department rules[; and
		[(2)  contract sanctions and intervention with the 
local board of trustees failed to bring the center into compliance 
with the center's plan or contract].
	(d)  The center may appeal the commissioner's decision to 
appoint a manager or management team as prescribed by board rule.  
The filing of a notice of appeal stays the appointment unless the 
commissioner based the appointment on a finding under Subsection 
(a)(2) or (4) [(a)(1)(D)].
	SECTION 2.  Subsections (b) and (c), Section 534.040, Health 
and Safety Code, are amended to read as follows:
	(b)  The authority of the manager or management team 
continues until[:
		[(1)]  the commissioner determines that the relevant 
factors listed under Section 534.038(a) [534.038(a)(1)] no longer 
apply [exist; or
		[(2)  the department cancels its contract with the 
center].
	(c)  Following a determination under Subsection (b)
[(b)(1)], the commissioner shall terminate the authority of the 
manager or management team and restore authority to manage and 
operate the center to the center's authorized officers and 
employees.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 464 passed the Senate on 
March 13, 2003, by the following vote:  Yeas 30, Nays 0; and that 
the Senate concurred in House amendment on May 20, 2003, by a 
viva-voce vote.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 464 passed the House, with 
amendment, on May 10, 2003, by the following vote:  Yeas 143, 
Nays 0, two present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor