By:  Truitt, et al. (Senate Sponsor - Janek)                      H.B. No. 2572
	(In the Senate - Received from the House May 11, 2005; 
May 13, 2005, read first time and referred to Committee on Health 
and Human Services; May 20, 2005, reported favorably, as amended, 
by the following vote:  Yeas 5, Nays 0; May 20, 2005, sent to 
printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Janek

	Amend H.B. No. 2572 (House engrossment) as follows:                          
	(1)  Strike SECTION 7 and SECTION 8 of the bill (page 6, line 
63, through page 8, line 14).
	(2)  Add the following SECTIONS to the bill, appropriately 
numbered, and renumber subsequent SECTIONS accordingly:
	SECTION __.  Subchapter B, Chapter 533, Health and Safety 
Code, is amended by adding Section 533.0357 to read as follows:
	Sec. 533.0357.  LOCAL AUTHORITY PARTNERSHIP DEVELOPMENT. 
(a) The department shall encourage local authorities to develop 
partnerships and greater coordination of services to persons who 
have a physical illness as well as mental illness or chemical 
dependency.
	(b)  At the request of a local authority, the department 
shall approve a request for the development of an integrated 
physical health and behavioral health service delivery model that 
is developed in partnership with a public hospital, county health 
department, or other governmental entity and that furthers the 
following goals:
		(1)  establishing a health care services delivery 
system that integrates primary health care services and behavioral 
health care services delivery;
		(2)  involving consumers, families, and stakeholders 
fully in the development of a system that is oriented toward 
resiliency and recovery;
		(3)  protecting and enhancing the rights of people with 
mental illness or substance abuse problems;
		(4)  enhancing the implementation of the resiliency and 
disease management model for mental health services; and
		(5)  screening for co-occurring physical, mental, and 
substance abuse disorders and treating persons with integrated 
treatment strategies.
	(c)  A public hospital, county health department, or other 
governmental entity acting under a contract with the Department of 
State Health Services under this section may provide primary health 
care services and behavioral health care services as necessary to 
enhance the integration of physical and behavioral health care 
services delivery in the separate service delivery area.
	(d)  A contract developed under this section must be a 
performance-based contract that provides flexibility in the design 
of the behavioral health care services delivery system while 
assuring that the local authority will achieve improved performance 
outcomes.
	SECTION __.  Subchapter B, Chapter 533, Health and Safety 
Code, is amended by adding Section 533.0405 to read as follows:
	Sec. 533.0405.  RESOURCES FOR EMOTIONALLY DISTURBED 
CHILDREN AND YOUTH.  (a)  The department shall ensure that local 
authorities design systems of care resources for children with 
serious emotional disturbances that recognize:
		(1)  the unique needs of those 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 authority shall develop formal partnerships and 
coordinate with entities 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, appropriate 
services and direct interagency and provider cooperation as 
necessary to further the plans.
	(d)  This section does not affect a requirement of state or 
federal law for informed parental consent before a child receives 
or is assessed or is screened for health or mental health services.
	SECTION __.  (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.                                   


COMMITTEE AMENDMENT NO. 2                                                By:  Janek

	Amend H.B. No. 2572 (House engrossment) as follows:                          
	(1)  In the recital to SECTION 2 of the bill (page 3, line 
25), strike ", (c),".
	(2)  In SECTION 2 of the bill, strike amended Section 533.035(c),
Health and Safety Code (page 3, line 65, through page 4, line 11).
	(3)  In SECTION 2 of the bill, strike amended Section 
533.035(e), Health and Safety Code (page 4, line 12, through page 4, 
line 23), and substitute the following:
	(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].

A BILL TO BE ENTITLED
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), (c), 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. (b-1) This subsection expires September 1, 2007. 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. (c) A local mental health and mental retardation authority, with the department's approval, shall use the funds received under Subsection (b) to ensure mental health, mental retardation, and chemical dependency services are provided in the local service area. The local authority shall consider public input, ultimate cost-benefit, and client care issues to ensure consumer choice and the best use of public money in: (1) assembling a network of service providers; [and] (2) making recommendations relating to the most appropriate and available treatment alternatives for individuals in need of mental health or mental retardation services; and (3) determining whether the authority will provide the service or contract with another organization to provide the service. (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) [of services only as a provider of last resort and only if the authority demonstrates to the department that: [(1) the authority 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 executive commissioner of the Health and Human Services Commission shall establish a local mental retardation authority task group to develop recommendations for the legislature regarding innovative financing, fund management, and local service delivery options for mental retardation services. (b) The executive commissioner shall appoint: (1) three representatives of each of the following groups: (A) consumer and advocacy organizations for mental retardation services; (B) private providers of mental retardation services; and (C) local mental retardation authorities; (2) two county judges or their designees to represent the Texas Association of Counties; and (3) one county judge or the county judge's designee to represent the Conference of Urban Counties. (c) In developing recommendations, the task group shall consider: (1) consumer and family involvement in local service delivery design and evaluation; (2) the level of flexibility needed to meet unique community needs; (3) local mental retardation authority coordination with state-operated inpatient resources, including state hospitals and state schools; (4) the anticipated effect of any proposed financing or payment methodology on local control of funds, on local fund contributions, the availability of services in urban and rural service areas, and the availability of services for people who are medically indigent; (5) the assurance of budget certainty for the state; and (6) the role of a community center as a designated provider of public safety net services for jail diversion services, crisis services, certain community-oriented services, community hospital services, and other services necessary to ensure the statewide availability of community services. (d) The task group shall submit a report regarding the task group's recommendations to the governor, lieutenant governor, speaker of the house of representatives, and legislature not later than January 1, 2007. (e) This section expires September 1, 2007. SECTION 8. (a) The executive commissioner of the Health and Human Services Commission shall establish a local mental health authority task group to develop recommendations for the legislature regarding innovative financing, fund management, and local service delivery options for mental health services. (b) The executive commissioner shall appoint: (1) three representatives of each of the following groups: (A) consumer and advocacy organizations for behavioral health services; (B) private providers of behavioral health services; and (C) local mental health authorities; (2) two county judges or their designees to represent the Texas Association of Counties; and (3) one county judge or the county judge's designee to represent the Conference of Urban Counties. (c) In developing recommendations, the task group shall consider: (1) consumer and family involvement in service delivery design and evaluation; (2) the level of flexibility needed to meet unique community needs; (3) local mental health authority coordination with state-operated inpatient resources, including state hospitals and state schools; (4) the anticipated effect of any proposed financing or payment methodology on local control of funds, on local fund contributions, the availability of services in urban and rural service areas, and the availability of services for people who are medically indigent; (5) the assurance of budget certainty for the state; (6) the role of a community center as a designated provider of public safety net services for jail diversion services, crisis services, certain community-oriented services, community hospital services, and other services necessary to ensure the statewide availability of community services; and (7) 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) The task group shall submit a report regarding the task group's recommendations to the governor, lieutenant governor, speaker of the house of representatives, and legislature not later than January 1, 2007. (e) This section expires September 1, 2007. SECTION 9. This Act takes effect September 1, 2005.
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