HBA-JRA S.B. 542 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 542 By: Madla Public Health 4/15/1999 Engrossed BACKGROUND AND PURPOSE The 75th Legislature enacted legislation that repealed statutory preference for the designation of community mental health and mental retardation centers (centers) as local authorities of the Texas Board of Mental Health and Mental Retardation. That legislation also required the Texas Department of Mental Health and Retardation to appoint a committee to develop a plan for a system of local mental health and mental retardation authorities (authorities). However, the current functions and responsibilities specific to authorities and centers may need clarification. S.B. 542 amends the Health and Safety Code to modify the operation and management of authorities and centers. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Department of Mental Health and Mental Retardation in SECTION 8 (Section 534.035, Health and Safety Code) of this bill, and to the Texas Board of Mental Health and Mental Retardation in SECTION 9 (Section 534.059, Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 411.115, Government Code, as follows: Sec. 411.115. New title: ACCESS TO CRIMINAL HISTORY RECORD INFORMATION: TEXAS DEPARTMENT OF MENTAL HEALTH AND MENTAL RETARDATION; LOCAL AUTHORITIES; COMMUNITY CENTERS. Defines "local mental health authority" and "local mental retardation authority" and redefines "community centers." Entitles a local mental health or mental retardation authority (authority) to obtain from the Department of Public Safety (DPS) certain criminal history record information that relates to an employee, volunteer, or an employment or volunteer applicant who would be placed in direct contact with patients with mental illness or clients with mental retardation. Requires an authority or a community center, in addition to the Texas Department of Mental Health and Mental Retardation (MHMR), to collect and destroy conviction information that relates to a person immediately after making, rather than the department or a contractor makes, an employment decision or taking a personnel action relating to the person who is the subject of the criminal history record information. Makes conforming changes. SECTION 2. Amends Section 250.001(3), Health and Safety Code, to include an authority designated under Section 533.035 in the definition of "facility." Makes conforming changes. SECTION 3. Amends Section 533.003, Health and Safety Code, as follows: Sec. 533.003. New title: USE OF FUNDS FOR VOLUNTEER PROGRAMS IN LOCAL AUTHORITIES AND COMMUNITY CENTERS. Authorizes MHMR to allocate available funds appropriated for providing volunteer services to develop or expand a volunteer program, rather than programs, in an authority or a community center, rather than community centers. Requires MHMR to develop formal policies that encourage the growth and development of volunteer services in local mental health or mental retardation authorities and community centers. SECTION 4. Redesignates Sections 533.007(d), and (i), Health and Safety Code, as Sections 533.007(a) and (b), to make conforming changes. SECTION 5. Amends Section 533.0075, Health and Safety Code, to make conforming changes. SECTION 6. Amends Section 533.009(a), Health and Safety Code, to make a conforming change. SECTION 7. Amends Sections 533.0355(c) and (d), Health and Safety Code, to require the department to submit a report to the 77th Legislature, rather than the 75th Legislature and 76th Legislature, on January 15, 2001, rather than January 15, 1997, and January 15, 1999, respectively. Provides that this section expires September 1, 2001, rather than 1999. SECTION 8. Amends Section 534.035, Health and Safety Code, as follows: Sec. 534.035. New title: REVIEW, AUDIT, AND APPEAL PROCEDURES. Requires MHMR, by rule, to establish review, audit, and appeal procedures for community centers. Provides that the procedures must ensure that reviews and audits are conducted in sufficient quantity and type to provide reasonable assurance that a community center has adequate and appropriate fiscal controls. Requires a community center, in the center plan approved under Section 534.001, to agree to comply with the review and audit procedures established under this section. Authorizes MHMR to sanction the center in accordance with Texas Board of Mental Health and Mental Retardation (board) rules, if by a date prescribed by the commissioner of mental health and mental retardation (commissioner), the community center fails to respond to a deficiency identified in a review or audit to the satisfaction of the commissioner. Deletes parts of existing Subsections (a) and (g) and all of (b)-(f) and (h)-(i) regarding the establishment of contract requirements, periodic program reviews, periodic management audits and written reports by the department and response from the board of trustees; deletes the transfer of related department funds to the community center and hearing procedure; deletes the withholding of funds during the pendency of an appeal to court; and the requirement that MHMR to incorporate the community center's response into the official management audit report. Makes conforming changes. SECTION 9. Amends Section 534.059, Health and Safety Code, as follows: Sec. 534.059. New title: CONTRACT COMPLIANCE FOR LOCAL AUTHORITIES. Requires the department to evaluate, rather than specify standards, an authority's compliance with its contract, rather than obligation or contract, to ensure the provision of specific services to priority populations. Authorizes MHMR to impose a sanction as provided by the applicable contract rule until the dispute is resolved if, by a date set by the commissioner, an authority fails to comply with its contract to ensure the provision of services to the satisfaction of the commissioner. Requires MHMR to notify the authority in writing of its decision to impose a sanction. Authorizes an authority to appeal MHMR's decision to impose a sanction on the authority. Requires the board, by rule, to prescribe the appeal procedure. Provides that the filing of a notice of appeal stays the imposition of MHMR's decision to impose a sanction except when an act or omission by an authority is endangering or may endanger the life, health, welfare, or safety of a person. Authorizes MHMR to limit general revenue allocations to an authority to monthly distributions while an appeal under this section is pending. SECTION 10. Amends Section 534.060, Health and Safety Code, as follows: Sec. 534.060. New title: PROGRAM AND SERVICE MONITORING AND REVIEW OF LOCAL AUTHORITIES. Requires MHMR to develop mechanisms for monitoring the services provided by an authority, rather than an authority and the authority's subcontractors. Makes conforming changes. SECTION 11. Amends Subchapter B, Chapter 534, Health and Safety Code, by adding Sections 534.0601, 534.0602, and 534.0603, as follows: Sec. 534.0601. COORDINATION PROGRAM AUDITS OF LOCAL AUTHORITIES. Requires MHMR to coordinate with each agency or department of the state that contracts with an authority to prescribe procedures for a coordinated program audit of the authority. Sets forth requirements of the procedures. Sets forth program audit evaluation criteria. Provides that a program audit of an authority must be performed in accordance with the procedures prescribed under this section. Prohibits MHMR from implementing a procedure for a program audit under this section without the approval of the Health and Human Services Commission (HHSC). Provides that this section does not prohibit an agency, department, or other entity providing funding to an authority from investigating a complaint against the authority or performing additional contract monitoring of the authority. Sec. 534.0602. FINANCIAL AUDITS OF LOCAL AUTHORITIES. Requires MHMR to prescribe procedures for a financial audit of an authority. Provides that the procedures must be consistent with requirements for the receipt of federal funding by the authority. Requires MHMR to develop the procedures with the assistance of each agency or department of the state that contracts with an authority. Requires MHMR to incorporate each agency or department's financial or compliance requirements for an authority into a single audit that meets the requirements of Section 534.068 (Audits). Provides that MHMR, before prescribing or amending a procedure under this section, must set a deadline for agencies and departments of the state that contract with authorities to submit proposals relating to the procedure. Provides that an agency or department of the state that contracts with an authority must comply with a procedure developed under this section. Prohibits MHMR from implementing a procedure under this section without the approval of HHSC. Sec. 534.0603. ADDITIONAL FINANCIAL AUDIT ACTIVITY. Requires MHMR to develop protocols for an agency or department of the state to conduct additional financial audit activities of an authority. Prohibits an agency or department of the state from conducting additional financial audit activities relating to an authority without the approval of HHSC. SECTION 12. Amends Section 534.061, Health and Safety Code, as follows: Sec. 534.061. PROGRAM AND SERVICE MONITORING AND REVIEW OF CERTAIN COMMUNITY SERVICES. Requires MHMR to develop mechanisms for periodically monitoring the services of a provider, rather than private provider, who contracts with an authority. Requires the authority, rather than MHMR, to monitor the services to ensure that the provider is delivering the services in a manner consistent with the provider's contract. Deletes language that requires MHMR to provide for periodic fiscal audits of private providers. Requires each provider contract involving the use of state funds or funds for which the state has oversight responsibility to authorize the authority or the authority's designee, in addition to MHMR or MHMR's designee, to have unrestricted access to all facilities, records, data, and other information under the control of the provider necessary to review the contract. Makes conforming and nonsubstantive changes. SECTION 13. Amends Subchapter B, Chapter 534, Health and Safety Code, by adding Section 534.071, as follows: Sec. 534.071. LOCAL AUTHORITY ADVISORY COMMITTEES. Authorizes an authority to appoint a committee to advise its governing board on a matter relating to the oversight and provision of mental health and mental retardation services. Provides that the appointment of a committee does not relieve the authority's governing board of a responsibility prescribed by this subtitle. SECTION 14. Repealer: Sections 532.008 (Prohibited Activities by Former Officer or Employees), 533.035(e) (requires the board to direct the commissioner to appoint a committee), 533.035(f) (requires the commissioner to make certain assurances), 533.035(g) (requires that the plan approved by the committee to be submitted to the board for approval), 533.035(h) (requires the board to submit the approved plan to the Senate Health and Human Services Committee and the House Public Health Committee by a certain date), Health and Safety Code. SECTION 15. Effective date: September 1, 1999. SECTION 16. Emergency clause.