H.B. No. 2572
AN ACT
relating to the functions of local mental health and mental
retardation authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 533.031, Health and Safety Code, is
amended by adding Subdivisions (4), (5), (6), and (7) to read as
follows:
(4) "Commission" means the Health and Human Services
Commission.
(5) "Executive commissioner" means the executive
commissioner of the Health and Human Services Commission.
(6) "ICF-MR and related waiver programs" includes
ICF-MR programs, home and community-based services, Texas home
living waiver services, or another Medicaid program serving persons
with mental retardation.
(7) "Qualified service provider" means an entity that
meets requirements for service providers established by the
executive commissioner.
SECTION 2. Section 533.035, Health and Safety Code, is
amended by amending Subsections (a) and (e) and adding Subsections
(b-1) and (e-1) to read as follows:
(a) The executive commissioner shall designate a local
mental health authority and a local mental retardation authority in
one or more local service areas. The executive commissioner
[board] may delegate to the local authorities the [board's]
authority and responsibility of the executive commissioner, the
commission, or a department of the commission related to [for the]
planning, policy development, coordination, including coordination
with criminal justice entities, resource allocation, and resource
development for and oversight of mental health and mental
retardation services in the most appropriate and available setting
to meet individual needs in that service area. The executive
commissioner may designate a single entity as the local mental
health authority and the local mental retardation authority for a
service area. In designating local authorities, the executive
commissioner may not decrease the number of local mental health
authorities or local mental retardation authorities from the number
that existed on January 1, 2005, except on:
(1) a request from two or more local authorities; or
(2) a determination by the executive commissioner that
a local authority has substantially failed to meet the terms and
conditions of the performance contract.
(b-1) This subsection expires September 1, 2007, and does
not apply to rate setting or the payment rates for intermediate care
facilities for the mentally retarded, home and community-based
services, Texas home living, and mental retardation service
coordination. Before the department institutes a change in payment
methodology, the department shall:
(1) evaluate various forms of payment for services
including fee-for-service, case rate, capitation, and other
appropriate payment methods to determine the most cost-effective
and efficient form of payment for services;
(2) evaluate the effect of each proposed payment
methodology on:
(A) the availability of services in urban and
rural service areas;
(B) the availability of services for persons who
are indigent; and
(C) the cost certainty of the delivery of
Medicaid rehabilitation services;
(3) develop an implementation plan for the new payment
methodology that integrates the department's findings under
Subdivisions (1) and (2); and
(4) report the department's findings and the
implementation plan for a new payment methodology to the
legislature not later than January 1, 2007.
(e) In assembling a network of service providers, a local
mental health [and mental retardation] authority may serve as a
qualified service provider only in accordance with Subsection (c)
and [of services only as a provider of last resort and only if the
authority demonstrates to the department that:
[(1)] the authority shall make [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].
(e-1) A local mental retardation authority may serve as a
provider of ICF-MR and related waiver services only if:
(1) the authority complies with the limitations
prescribed by Section 533.0355(c); or
(2) the ICF-MR and related waiver services are
necessary to ensure the availability of services and the authority
demonstrates to the commission that there is not a willing ICF-MR
and related waiver service qualified service provider in the
authority's service area where the service is needed.
SECTION 3. Section 533.0355, Health and Safety Code, is
amended to read as follows:
Sec. 533.0355. LOCAL MENTAL RETARDATION AUTHORITY
RESPONSIBILITIES [ALLOCATION OF DUTIES] UNDER CERTAIN MEDICAID
[WAIVER] PROGRAMS. (a) The executive commissioner shall adopt
rules establishing the roles and responsibilities of local mental
retardation authorities [In this section, "waiver program" means
the local mental retardation authority waiver program established
under the state Medicaid program].
(b) In adopting rules under this section, the executive
commissioner must include rules regarding:
(1) access;
(2) intake;
(3) eligibility functions;
(4) enrollment, initial assessment, and service
authorization;
(5) utilization management;
(6) safety net functions, including crisis management
services and assistance in accessing facility–based care;
(7) service coordination functions;
(8) provision and oversight of state general revenue
services;
(9) local planning functions, including stakeholder
involvement, technical assistance and training, and provider
complaint and resolution processes; and
(10) processes to assure accountability in
performance, compliance, and monitoring. [A provider of services
under the waiver program shall:
[(1) develop a person-directed plan and an individual
program plan for each person who receives services from the
provider under the waiver program;
[(2) perform justification and implementation
functions for the plans described by Subdivision (1);
[(3) conduct case management under the waiver program,
other than case management under Subsection (c)(3), in accordance
with applicable state and federal laws; and
[(4) plan, coordinate, and review the provision of
services to all persons who receive services from the service
provider under the waiver program.]
(c) In determining eligibility under Subsection (b)(3), an
authority must offer a state school as an option among the
residential services available to an individual who is eligible for
those services and who meets the department's criteria for state
school admission, regardless of whether other residential services
are available to the individual. The community mental health and
mental retardation centers must document the number of individuals
who are eligible for state school services under the department's
criteria, the number of individuals who meet eligibility who are
requesting state school admissions, and the number of individuals
who meet eligibility criteria who are referred for state school
services. The Health and Human Services Commission will adopt
rules related to the performance criteria required of the community
mental health and mental retardation centers regarding the
provision of information related to services and referral for
services.
(d) In establishing a local mental retardation authority's
role as a qualified service provider of ICF-MR and related waiver
programs under Section 533.035(e-1), the executive commissioner by
rule shall require the local mental retardation authority to:
(1) base the authority's provider capacity on the
authority's August 2004 enrollment levels for the waiver programs
the authority operates and, if the authority's enrollment levels
exceed those levels, to reduce the levels by voluntary attrition;
and
(2) base any increase in the authority's provider
capacity on:
(A) the authority's state-mandated conversion
from one Medicaid program to another Medicaid program allowing for
a permanent increase in the authority's provider capacity in
accordance with the number of persons who choose the authority as
their provider;
(B) the authority's voluntary conversion from
one Medicaid program to another Medicaid program allowing for a
temporary increase in the authority's provider capacity in
accordance with the number of persons who choose the authority as
their provider; or
(C) other extenuating circumstances that:
(i) are clearly defined in rules adopted by
the executive commissioner;
(ii) are monitored and approved by the
department; and
(iii) do not include increases resulting
from refinancing and do not include increases that unnecessarily
promote the authority's provider role over its role as a local
mental retardation authority [A local mental retardation authority
shall:
[(1) manage any waiting lists for services under the
waiver program;
[(2) perform functions relating to consumer choice and
enrollment for persons who receive services under the waiver
program; and
[(3) conduct case management under the waiver program
relating to funding disputes between a service provider and the
local mental retardation authority].
(e) In adopting a rule under this section, the executive
commissioner shall seek the participation of and comments from
local mental retardation authorities, providers, advocates, and
other interested stakeholders [(d) The department shall perform
all administrative functions under the waiver program that are not
assigned to a service provider under Subsection (b) or to a local
mental retardation authority under Subsection (c). Administrative
functions performed by the department include:
[(1) any surveying, certification, and utilization
review functions required under the waiver program; and
[(2) managing an appeals process relating to decisions
that affect a person receiving services under the waiver program].
(f) Any increase based on extenuating circumstances under
Subsection (d)(2)(C) is considered a temporary increase in the
local mental retardation authority's provider capacity [(e) The
department shall review:
[(1) screening and assessment of levels of care;
[(2) case management fees paid under the waiver
program to a community center; and
[(3) administrative fees paid under the waiver program
to a service provider].
(g) At least biennially, the department shall review and
determine the local mental retardation authority's status as a
qualified service provider in accordance with criteria that
includes the consideration of the authority's ability to assure the
availability of services in its area, including:
(1) program stability and viability;
(2) the number of other qualified service providers in
the area; and
(3) the geographical area in which the authority is
located [(f) The department shall perform any function relating
to inventory for persons who receive services under the waiver
program and agency planning assessments].
(h) The Department of Aging and Disability Services shall
ensure that local services delivered further the following goals:
(1) to provide individuals with the information,
skills, opportunities, and support to make informed decisions
regarding the services for which the individual is eligible;
(2) to respect the rights, needs, and preferences of
an individual receiving services; and
(3) to integrate individuals with mental retardation
and developmental disabilities into the community in accordance
with relevant independence promotion plans and permanency planning
laws.
[(g) The review required under Subsection (e) must include a
comparison of fees paid before the implementation of this section
with fees paid after the implementation of this section. The
department may adjust fees paid based on that review.
[(h) The department shall allocate the portion of the gross
reimbursement funds paid to a local authority and a service
provider for client services for the case management function in
accordance with this section and to the extent allowed by law.
[(i) The department may adopt rules governing the functions
of a local mental retardation authority or service provider under
this section.]
SECTION 4. Section 535.002(b), Health and Safety Code, is
amended to read as follows:
(b) If feasible and economical, the commission shall
[department may] use local mental health and mental retardation
authorities to implement this chapter. [However, the department
may not designate those local mental health and mental retardation
authorities as the sole providers of services if other providers
are available.]
SECTION 5. (a) Sections 533.035(f) and (g), Health and
Safety Code, are repealed.
(b) Section 2.82A, Chapter 198, Acts of the 78th
Legislature, Regular Session, 2003, is repealed.
SECTION 6. Not later than January 1, 2007, the Health and
Human Services Commission shall submit a report to the governor,
lieutenant governor, and speaker of the house of representatives
that includes any information the commission finds relevant
regarding the implementation of Sections 535.035 and 535.0355,
Health and Safety Code, as amended by this Act, by local mental
retardation authorities.
SECTION 7. (a) The legislature shall establish a joint
interim committee to study the local mental health and mental
retardation services delivery system and to develop
recommendations for improving the provision of services and
increasing the accountability for funds management in the system.
(b) The committee should consider whether the current local
system meets the following goals:
(1) improving [the integration of] services to persons
who have physical illness as well as mental illness or chemical
dependency and developing a continuum of services to all persons
who are aging or who have physical or cognitive disabilities; and
(2) allowing the appropriate level of flexibility
needed to meet unique community needs, while addressing state
requirements and ensuring an appropriate level of budget certainty
for the state.
(c) In developing recommendations for the improvement of
services delivery the committee should consider:
(1) the role of a community center and whether a
community center should be designated as a provider of public
safety net services for jail diversion services, crisis services,
certain community-oriented services, community hospital services,
or other services necessary to ensure the statewide availability of
services; and
(2) the findings and recommendations of the mental
health services task force as reported to the Senate Health and
Human Services interim committee of the 77th Legislature in March
2002 and the House Bill 1734 committee report from the 75th
Legislature, Regular Session, 1997.
(d) Not later than January 1, 2007, the committee shall
report its findings and recommendations to the governor, the
lieutenant governor, and the speaker of the house of
representatives.
(e) The lieutenant governor and the speaker of the house of
representatives shall determine the composition of the committee.
The committee must be composed of five members of the senate and
five members of the house of representatives. The presiding
officer of the committee must be a member designated from the
senate.
(f) This section expires September 1, 2007.
SECTION 8. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2572 was passed by the House on May
10, 2005, by the following vote: Yeas 132, Nays 7, 3 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 2572 on May 27, 2005, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 2572 on May 29, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2572 was passed by the Senate, with
amendments, on May 25, 2005, by the following vote: Yeas 30, Nays
1; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
2572 on May 29, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor