HBA-JRA H.B. 1589 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1589 By: Delisi Public Health 4/7/1999 Introduced BACKGROUND AND PURPOSE Currently, there is no formal mechanism for the Texas Department of Mental Health and Mental Retardation to take control from the board of a community mental health and mental retardation center if the board cannot or is not willing to fulfill its mission. The well-being of mental health patients may be put at risk if the center is not being managed appropriately. H.B. 1589 creates a mechanism for the Texas Department of Mental Health and Mental Retardation to temporarily manage and operate a community mental health and mental retardation center with which they have a contract if the center board is unable or unwilling to fulfill its contractual obligations, ensure the health and safety of its patients, or maintain fiscal responsibility. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 534, Health and Safety Code, by adding Sections 534.038, 534.039, and 534.040, as follows: Sec. 534.038. APPOINTMENT OF MANAGER OR MANAGEMENT TEAM. (a) Authorizes the commissioner of mental health and mental retardation (commissioner) to appoint a manager or management team (manager) to manage and operate a community center if the commissioner finds that the center or an officer or employee of the center intentionally, recklessly, or negligently failed to discharge the center's duties under a contract with the Texas Department of Mental Health and Mental Retardation (department); misused state or federal money; engaged in a fraudulent act, transaction, practice, or course of business; endangers or may endanger the life, health, or safety of a person served by the center; failed to keep fiscal records or maintain proper control over center assets; failed to respond to a deficiency in a review or audit; substantially failed to operate within the functions and purposes defined in the center's plan; or otherwise substantially failed to comply with this subchapter or department rules; and contract sanctions and intervention with the local board of trustees failed to bring the center into compliance with the center's plan or contract. (b) Requires the department to give written notification to the center and local agency or combination of agencies responsible for making appointments to the local board of trustees regarding the appointment of the manager and the circumstances on which the appointment is based. (c) Authorizes the commissioner to require the center to pay costs incurred by the manager. (d) Authorizes the center to appeal the commissioner's decision to appoint a manager as prescribed by board rule. Provides that the filing of a notice of appeal stays the appointment unless the commissioner based the appointment on a finding that the center or an officer or employee of the center is endangering or may endanger the life, health, or safety of a person served by the center. Sec. 534.039. POWERS AND DUTIES OF MANAGEMENT TEAM. (a) Sets forth the powers of a manager appointed under Section 534.038. (b) Requires the manager to supervise the exercise of a power or duty by the local board of trustees. (c) Requires the manager to report monthly to the commissioner and local board of trustees on actions taken. (d) Provides that a manager is immune from liability arising from the good faith performance of a function described by this section. (e) Prohibits a manager from using an asset or money contributed by a county, municipality, or other local funding entity without the approval of the county, municipality, or entity. Sec. 534.040. RESTORING MANAGEMENT TO CENTER. (a) Requires the commissioner to evaluate the performance of a community center managed by a manager appointed under Section 534.038 each month to determine the feasibility of restoring the center's management and operation to a local board of trustees. (b) Provides that the authority of the manager continues until the commissioner determines that the reasons for appointing a manager no longer exist or the department cancels its contract with the center. (c) Requires the commissioner to terminate the authority of the manager and restore authority to manage and operate the center to the center's authorized officers and employees following a determination that the reasons for appointing a manager no longer exist. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.