BILL ANALYSIS

 

 

 

C.S.H.B. 492

By: Craddick

County Affairs

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Recognizing the need for additional mental health services in the Permian Basin, the 87th Texas Legislature provided funding for a new mental health hospital in the region. The legislature required the new facility to be run by both the Midland and Ector County Hospital Districts. C.S.H.B. 492 seeks to abide by this requirement by providing for the creation of a mental health services district by the two hospital districts to provide mental health services to the district's residents. 

 

CRIMINAL JUSTICE IMPACT

 

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

C.S.H.B. 492 amends the Health and Safety Code to set out provisions the purpose of which are to authorize the Midland County Hospital District of Midland County, Texas, and the Ector County Hospital District to create a mental health services district, which is a special district to provide mental health services to the district's residents. The bill authorizes the hospital districts to create such a district by adopting concurrent orders which must, as follows:

·         be approved by each creating hospital district's governing body;

·         contain identical provisions; and

·         define the district's boundaries to be coextensive with the combined boundaries of each creating hospital district.

 

C.S.H.B. 492 requires each creating hospital district to contract with the mental health services district for the district to provide mental health services to the hospital district's residents. The contract must do the following:

·         state the contract's term;

·         specify the purpose, terms, rights, and duties of the district;

·         specify the financial contributions to be made by each party to the contract to fund the district; and

·         specify the land, buildings, improvements, equipment, and other assets owned by a party to the contract that the district will be required to manage and operate, if any.

The bill exempts such a contract from the Interlocal Cooperation Act.

 

C.S.H.B. 492 requires the mental health services district to be dissolved if the creating hospital districts adopt concurrent orders to dissolve the district and the concurrent orders contain identical provisions. The bill provides for the administration of district property, debts, and assets after dissolution and for a related accounting.

 

C.S.H.B. 492 establishes that the mental health services district's board of directors consists of six appointed directors, with each creating hospital district appointing three directors to the board. The bill requires the board to elect a president from among its members and requires the board to appoint a secretary, who need not be a director. The bill provides for the terms of the directors and officers, including the terms of the initial directors, and for the filling of a vacancy. The bill requires a person to be a resident or an officer of the applicable appointing hospital district in order to be eligible to serve as a director and prohibits a mental health services district employee from serving as a director. The bill establishes that directors and officers serve without compensation but authorizes reimbursement for actual expenses incurred in the performance of official duties. The bill requires reimbursed expenses to be reported in the district's records and approved by the board.

 

C.S.H.B. 492 authorizes each creating hospital district, on creation of the mental health services district, to transfer the following to the district:

·         management and operation of any real property, improvements, and equipment located wholly in the mental health services district that are owned by the creating hospital district and are used to provide mental health services, as specified in the contract between the districts; and

·         operating funds and reserves for operating expenses and funds that have been budgeted by the creating hospital district to provide mental health services for residents of the mental health services district, as specified in the contract between the districts.

 

C.S.H.B. 492 authorizes the mental health services district to do the following if necessary to provide mental health services to the residents of the creating hospital districts:

·         acquire and hold title to, construct, operate, manage, and maintain real property, including improvements to real property;

·         acquire, operate, manage, and maintain equipment and other personal property;

·         enter into and perform contracts;

·         appoint and employ officers, agents, and employees;

·         sue and be sued;

·         seek and accept gifts, grants, and donations; and

·         perform other acts necessary to accomplish the district's purpose.

The bill authorizes the mental health services district's board to adopt rules governing the operation of the district and the duties, functions, and responsibilities of the district's staff and employees. The bill requires the board to appoint a qualified person as district administrator and authorizes the board to appoint assistant administrators. The bill establishes that the district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

 

C.S.H.B. 492 requires each creating hospital district to provide funding for the mental health services district's operation as specified in the contract between the districts and prohibits the mental health services district from imposing a tax or issuing bonds or other obligations. The bill requires the following:

·         the district administrator to prepare an annual budget for approval by the board;

·         the proposed budget to contain a complete financial statement of specified topics; and

·         the board to provide in each annual budget for the payment of all operation and maintenance expenses of the district.

The bill requires the board to hold a public hearing on the proposed annual budget and requires the board to publish a notice of the hearing in a newspaper of general circulation in the district at least 10 days before the date of the hearing. Any resident of the district is entitled to be present and participate in the hearing. The bill requires the board to adopt a budget by acting on the proposed budget at the hearing's conclusion and authorizes the board to make any changes in the proposed budget that the board judges to be in the interest of the district's residents and that the law warrants. The bill establishes that the budget is effective only after adoption by the board. The bill provides for budget amendments that must be approved by the board, a restriction on expenditures, the district's fiscal year, a required annual audit, and the inspection of the audit and district records. The bill requires the district administrator, as soon as practicable after the close of each fiscal year, to prepare for the board a complete sworn statement of all district money and a complete account of the disbursements of that money.

 

C.S.H.B. 492 amends the Special District Local Laws Code to authorize the Ector County Hospital District and the Midland County Hospital District of Midland County, Texas, respectively, to provide mental health services, including by contract in the manner prescribed by the bill's provisions providing for a mental health services district. The bill establishes that the provision of mental health services by either hospital district does not prohibit another political subdivision of the state from providing, or taxing to provide for, mental health services inside the boundaries of the respective district, as provided by the Texas Constitution.

 

EFFECTIVE DATE

 

September 1, 2023.

 

COMPARISON OF INTRODUCED AND SUBSTITUTE

 

While C.S.H.B. 492 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

 

The substitute omits the provision from the introduced that authorized the president of the mental health services district's board to vote and to cast an additional vote to break a tie. The substitutes makes both a resident or an officer of the applicable hospital district eligible to be appointed by that hospital district to serve as a director, whereas the introduced did not make non-resident officers eligible for appointment.