79R12998 JJT-F


By:  Davis of Harris, Uresti, Eissler,                            H.B. No. 470
 
    Farabee                                                                  

Substitute the following for H.B. No. 470:                                    

By:  Davis of Harris                                          C.S.H.B. No. 470


A BILL TO BE ENTITLED
AN ACT
relating to local delivery of aging, disability, behavioral health, and mental retardation services. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 531, Government Code, is amended by adding Subchapter M to read as follows:
SUBCHAPTER M. REGIONAL SERVICE COORDINATION BY LOCAL SERVICE AUTHORITIES
Sec. 531.451. RELATION TO OTHER LAW. This subchapter prevails over any other law related to the regulation or delivery of services by health and human services agencies to the extent that the other law is in conflict or inconsistent with this subchapter. Sec. 531.452. DEFINITIONS. (a) In this subchapter: (1) "Aging and disability services" includes: (A) aging services; (B) mental retardation services; and (C) community care services for elderly persons or persons with disabilities. (2) "Behavioral health services" includes mental health services and chemical dependency services. (3) "Chemical dependency" has the meaning assigned by Section 461.002, Health and Safety Code. (4) "Chief elected officials" means the county judge of each county included in a local service region or a person the judge designates to act for the judge under this subchapter. (5) "Community center" has the meaning assigned by Section 531.002, Health and Safety Code. (6) "Local service authority" means a local aging and disability authority or a local behavioral health authority. (7) "Mental health services" has the meaning assigned by Section 531.002, Health and Safety Code. (8) "Mental retardation services" has the meaning assigned by Section 531.002, Health and Safety Code. (b) A reference in other law to a "local mental health authority" means a "local behavioral health authority." (c) A reference in other law to a "local mental retardation authority" means a "local aging and disability authority." (d) A reference in other law to the Texas Department of Mental Health and Mental Retardation means: (1) the executive commissioner when used in relation to the authority to adopt rules or make policy regarding mental health services or mental retardation services; (2) the Department of State Health Services when used in relation to the authority to administer mental health services; and (3) the Department of Aging and Disability Services when used in relation to the authority to administer mental retardation services. Sec. 531.453. DELIVERY SYSTEM FOR AGING, DISABILITY, AND BEHAVIORAL HEALTH SERVICES. (a) In accordance with this subchapter, the executive commissioner shall establish a system for aging and disability services and behavioral health services to be coordinated by local service authorities, with each local service authority having jurisdiction over a local service region and coordinating the provision of services under contract with the Department of Aging and Disability Services or the Department of State Health Services. (b) The executive commissioner shall develop and adopt policies and rules governing the provision of services in the local regions. Rules adopted under this subsection must: (1) address the procedures, methods, and criteria for the Department of Aging and Disability Services or the Department of State Health Services to place a local service authority in receivership for mismanagement or poor performance; and (2) establish comprehensive contract management practices and principles to ensure that: (A) the service delivery systems are both effective and financially accountable at the local service region level; (B) barriers in the application for and delivery of local services are eliminated to the greatest extent practicable; and (C) contract management by each department and local service authority is effective. (c) The executive commissioner shall ensure that a local service authority conducts its assessments of a potential client's financial eligibility for services according to the commission's eligibility system. (d) The Department of Aging and Disability Services and the Department of State Health Services, as appropriate, shall consult with the commission to coordinate the provision of Medicaid services through the local service authorities. (e) The executive commissioner shall develop rules and guidelines for the screening of and coordination of services to persons who require both behavioral health services and aging and disability services. Sec. 531.454. LOCAL SERVICE REGIONS. The local service regions must have the same geographical boundaries as the uniform regional boundaries established for health and human services agencies under Section 531.024. Sec. 531.455. STATE-OPERATED LOCAL SERVICE AUTHORITIES. (a) At the request of the chief elected officials of a region, the Department of Aging and Disability Services or the Department of State Health Services, or both, in consultation with the commission shall establish a state-operated local service authority. (b) The chief elected officials who request a state-operated local service authority for behavioral health services or for aging and disability services must establish an advisory council to guide and inform the decisions of the department responsible for operating the state-operated local service authority. The chief elected officials in establishing the advisory council shall appoint members to that council that conform to the standards for membership of a board of directors of a local service authority provided by Section 531.464. Sec. 531.456. INNOVATIVE PROJECTS. (a) At the request of one or more chief elected officials of a local service region, the Department of Aging and Disability Services or the Department of State Health Services, as appropriate, may designate in a local service region a service delivery area to implement an innovative project for improving the provision of behavioral health services or aging and disability services. (b) The chief elected official or officials, the local service authority, the appropriate department, and the commission shall enter into an agreement that establishes whether an innovative project will be operated through the local service authority or by the state by direct contract. (c) An innovative project must use innovative financing arrangements, innovative service delivery models, innovative business practices, or other innovative methods to improve the delivery of behavioral health services or aging and disability services in furtherance of the goals of this chapter. Sec. 531.457. ROLE OF DEPARTMENT OF AGING AND DISABILITY SERVICES. (a) The Department of Aging and Disability Services, in conjunction with the commission, is responsible for ensuring the provision of aging and disability services and for coordinating the provision of those services locally. (b) The department shall manage contracts with local aging and disability authorities for ensuring the provision of local services. (c) The department, in coordination with the commission, may determine financing options for payment of costs of services to be provided locally and for reimbursement of local service providers. (d) The department is responsible for approving: (1) the creation and operations of local aging and disability authorities in their respective local service regions; and (2) the local service delivery plan for each local service region. (e) The department shall ensure that contracts involving aging services comply with requirements of the federal Older Americans Act of 1965 (42 U.S.C. Section 3001 et seq.). (f) The department shall operate in accordance with state permanency planning laws. (g) The department shall ensure that area agencies on aging comply with the state's requirements regarding Title II of the Americans with Disabilities Act (42 U.S.C. Section 12131 et seq.). (h) The department shall maintain the area agencies on aging and their current designated planning and service areas in accordance with commission rules. (i) The department, in coordination with the commission, shall continue to manage Medicaid contracts with Medicaid providers. Sec. 531.458. ROLE OF DEPARTMENT OF STATE HEALTH SERVICES. (a) The Department of State Health Services, in conjunction with the commission, is responsible for ensuring the provision of behavioral health services and for coordinating the provision of those services locally. (b) The department shall manage contracts with local behavioral health authorities for ensuring the provision of local services. (c) The department, in coordination with the commission, may determine financing options for payment of costs of services to be provided locally and for reimbursement of local service providers. (d) The department is responsible for approving: (1) the creation and operations of local behavioral health authorities in their respective local service regions; and (2) the local service delivery plan for each local service region. (e) The department shall ensure that local behavioral health service delivery systems further the following goals: (1) making the behavioral health care system one that is family-driven and consumer-driven by: (A) requiring individualized plans of care for every adult with a serious mental illness or a substance abuse problem and for every child with a serious emotional disturbance or a substance abuse problem; (B) involving consumers, families, and stakeholders fully in the development of a system that is oriented toward resiliency, disease management, and recovery; and (C) protecting and enhancing the rights of people with mental illness or substance abuse problems; (2) reducing disparities in behavioral health services by improving access to: (A) culturally competent quality care; and (B) quality care in rural and remote areas; (3) enhancing the implementation of the resiliency and disease management model for mental health services; and (4) screening for co-occurring mental and substance abuse disorders and treating persons with integrated treatment strategies. (f) The department shall implement a fee-for-service payment model for regions that select noncapitated fiscal arrangements. Sec. 531.459. ROLES AND DUTIES OF LOCAL SERVICE AUTHORITIES. (a) A local service authority, as a contractor of the Department of Aging and Disability Services or the Department of State Health Services, shall: (1) provide for public access to the intake and assessment process for aging, disability, or behavioral health services needs and for those appropriate activities delegated locally by the state as they relate to eligibility for services; and (2) ensure and authorize the development of service delivery plans for eligible clients of the authority. (b) A local service authority shall endeavor to improve the capacities of the communities by fostering partnerships among service providers and other resources and shall raise community awareness of the available services and service needs of the local service region. (c) A local service authority shall ensure the development and maintenance of: (1) a network of providers of services for the authority's local service region; and (2) other needed resources to support the delivery of services in the authority's local service region. (d) A local service authority may not provide a service directly except as provided by Section 531.460. (e) A local service authority is responsible for coordinating the use of state facilities. (f) A local service authority shall have a continuing quality assurance and quality improvement program to ensure that services delivered are adequate and appropriate. (g) A local service authority shall have an ombudsman program to assist clients of the region and other interested persons in resolving complaints and in making appeals regarding eligibility or regarding services delivered or denied. Sec. 531.460. PROVISION OF MENTAL RETARDATION SERVICES BY COMMUNITY CENTERS THROUGH AUTHORITIES. (a) In this section, "ICF-MR" has the meaning assigned by Section 531.002, Health and Safety Code. (b) A community center may perform assessment and service coordination functions for mental retardation services on behalf of a local service authority for a period to be determined by commission rule. (c) The Department of Aging and Disability Services, in consultation with the commission, shall establish limits on the number of individuals who may be enrolled in waiver and ICF-MR services provided by a community center that also is providing assessment and service coordination functions for mental retardation services on behalf of a local service authority. (d) Rules adopted under this section shall establish a process to allow community centers to provide waiver and ICF-MR services above the enrollment limits established under Subsection (c) under extenuating circumstances. (e) A community center that does not provide assessment and service coordination functions for mental retardation services on behalf of an authority is not subject to the enrollment limits established by the commission in accordance with Subsection (c). Sec. 531.461. PREFERRED PROVIDER STATUS. (a) For a transitional term that expires September 1, 2010, each local service authority shall contract, as appropriate, with community centers and chemical dependency and substance abuse service providers in the local service region that are: (1) providing services on September 1, 2005; and (2) determined to be in good standing. (b) The executive commissioner by rule shall require a local service authority that provides jail diversion services to provide the right of first refusal to community centers to provide those services, if the community center provides those services on September 1, 2005. Sec. 531.462. LOCAL FUNDING. A local service authority that receives money from a local governmental entity shall use the money in accordance with an agreement between the authority and the local governmental entity. Sec. 531.463. LOCAL PLANNING PROCESS. (a) The executive commissioner by rule shall establish a procedure for the chief elected officials of each local service region to convene and establish a governing structure for the region's local behavioral health authority or local aging and disability authority. The rules must provide guidelines for the officials to follow in establishing the responsibilities and functions of each authority and the requirements for approval of a local authority plan. (b) In developing plans for the local service delivery structure, the chief elected officials shall: (1) solicit information, guidance, and comments from interested persons and organizations in the local service region, including persons and organizations who may receive or provide services; (2) evaluate the needs in the local service region for services to be coordinated through the local service authority; (3) evaluate the need for and use of locally provided funding resources; (4) develop methods to improve coordination of local services; (5) consider and encourage the use of innovative service delivery models; (6) address the coordination of programs for those children in the local service delivery plan; (7) consider the use of 16-bed inpatient mental health facilities to maximize the receipt of available federal matching money for mental health services; and (8) develop a mechanism for reporting information to local governmental entities that provide funding to the authority and to chief elected officials who want feedback regarding the activity of the authority. (c) The commission shall make available to the chief elected officials the recommendations of the mental health working group of the Texas State Strategic Health Partnership regarding behavioral health services reform. (d) The commission, the Department of Aging and Disability Services, and the Department of State Health Services shall provide the chief elected officials with needed technical assistance and advice in their efforts to establish the governing structure of a local service authority under this section. (e) The chief elected officials of each local service region, in conjunction with the commission and the appropriate department, shall develop a transition plan for the local service region to transition from the existing authority structure to the regional authority structure established under this subchapter. Each existing local mental health and mental retardation authority with jurisdiction in the local service region shall participate in the development of the transition plan in accordance with rules adopted under this subchapter. The transition plan must provide for services to be delivered without disruption. (f) The chief elected officials shall submit the service delivery and transition plans to the Department of Aging and Disibility Services and the Department of State Health Services for approval. (g) The commission and the Department of Aging and Disability Services and the Department of State Health Services jointly shall establish timeframes for the implementation of this section. (h) In developing the local service delivery system under this subchapter, the commission shall endeavor to maximize to the extent practicable federal matching money. Sec. 531.464. COMPOSITION OF BOARDS OF DIRECTORS OF LOCAL SERVICE AUTHORITIES. (a) The chief elected officials of each local service region shall appoint the board of directors of the region's local aging and disability authority and local behavioral health authority. (b) The board of directors for a local service authority must have at least nine members and must reflect the ethnic and geographic diversity of the authority's local service region. (c) The chief elected officials of a local service region are encouraged to include on the board of directors for a local aging and disability authority one or more: (1) older residents of the local service region; (2) individuals with a disability who are receiving services; (3) persons with mental retardation; (4) individuals knowledgeable of children's needs and supports; and (5) members of the general public. (d) The chief elected officials of a local service region are encouraged to include on the board of directors for a local behavioral health authority one or more: (1) adults with mental illness; (2) parents of children with serious emotional disturbances or histories of substance abuse disorders; (3) persons with histories of chemical dependency; (4) persons with, or persons advocating for persons with, co-occurring behavioral health disorders; (5) retired behavioral health professionals or behavioral health professionals who are licensed but not practicing; and (6) members of the general public. Sec. 531.465. COORDINATION OF STATE FACILITIES. The Department of Aging and Disability Services or the Department of State Health Services, as appropriate, shall coordinate with local service authorities regarding the use of state mental health and mental retardation facilities, services, and buildings by eligible individuals. Sec. 531.466. LOCAL BEHAVIORAL HEALTH AUTHORITY RESOURCES FOR CHILDREN. (a) A local behavioral health authority shall design system of care resources for children with serious emotional disturbances that recognize: (1) the unique needs of such children; (2) the various programs in this state through which a child may be directed to the authority for services; and (3) the various programs available to the child, the child's family, and the authority through which the child and the child's family may receive behavioral health services or other services. (b) A local behavioral health authority shall develop formal partnerships and coordinate with entities in the authority's local service region to ensure that a child with a serious emotional disturbance receives the most appropriate and effective care and services to the extent possible. (c) As appropriate, the authority shall use teams composed of representatives of public and private service providers and members of the child's family to develop individual and family service plans that encompass to the extent possible all appropriate services and direct interagency and provider cooperation as necessary to further the plans. (d) A local behavioral health authority shall establish a system for integrating funding for a child's services to meet the needs of a child and the child's family. In establishing the system the authority shall consider the criteria and expansion plans developed for the Texas Integrated Funding Initiative under Subchapter G-1. SECTION 2. Sections 533.035 and 533.0356, Health and Safety Code, are repealed. SECTION 3. This Act does not authorize the expansion of Medicaid managed care programs, unless the chief elected officials of a local service region established under Subchapter M, Chapter 531, Government Code, as added by this Act, choose to implement a managed behavioral health care program. SECTION 4. The executive commissioner of the Health and Human Services Commission shall adopt rules necessary to implement Subchapter M, Chapter 531, Government Code, as added by this Act, on or before December 31, 2006. SECTION 5. This Act takes effect September 1, 2005.