89R25271 MPF-D     By: Campos H.B. No. 1747     Substitute the following for H.B. No. 1747:     By:  VanDeaver C.S.H.B. No. 1747       A BILL TO BE ENTITLED   AN ACT   relating to the administration of funding for the coordination of   mental health, substance use, and public health care services in   this state.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 547, Government Code, is amended by   adding Subchapter K to read as follows:   SUBCHAPTER K. MENTAL HEALTH, SUBSTANCE USE, AND PUBLIC HEALTH   INITIATIVES          Sec. 547.0551.  DEFINITIONS. In this subchapter:                (1)  "Council" means the mental health, substance use,   and public health initiative council established by Section   547.0552.                (2)  "Fund" means the mental health, substance use, and   public health initiative trust fund established by Section   547.0553.                (3)  "Trust company" means the Texas Treasury   Safekeeping Trust Company.          Sec. 547.0552.  MENTAL HEALTH, SUBSTANCE USE, AND PUBLIC   HEALTH INITIATIVE COUNCIL. (a) The mental health, substance use,   and public health initiative council is established to ensure that   money allocated to the mental health, substance use, and public   health initiative trust fund is allocated fairly and spent to   improve the coordination between mental health, substance use, and   public health care services in this state.          (b)  The council is composed of the following 14 members:                (1)  one member appointed by the governor who is a   current or retired health care operations professional with 10 or   more years of experience in matters of mental health, substance   use, and public health;                (2)  one member appointed by the lieutenant governor   who is a current or retired health care operations professional   with 10 or more years of experience in matters of mental health,   substance use, and public health;                (3)  one member appointed by the speaker of the house of   representatives who is a current or retired health care operations   professional with 10 or more years of experience in matters of   mental health, substance use, and public health;                (4)  three members appointed by the executive   commissioner who are from academia or the medical profession and   have significant experience in matters of mental health, substance   use, and public health;                (5)  seven members appointed by the executive   commissioner as follows:                      (A)  one member who is a current or former   employee of a rural hospital district;                      (B)  one member who is a current or former   employee of a local health authority;                      (C)  one member who is a current or former   employee of a local mental health authority, as defined by Section   531.002, Health and Safety Code;                      (D)  one member who is a current or former   employee of a federally qualified health center in this state;                      (E)  one member who has lived experience with a   mental health condition or substance abuse condition; and                      (F)  two members with at least 10 years of   experience working with a health philanthropy nonprofit   organization or foundation; and                (6)  the executive commissioner or the executive   commissioner's designee.          (c)  The executive commissioner or the executive   commissioner's designee serves as the presiding officer of the   council and is a nonvoting member.          (d)  In making appointments under Subsection (b)(4), the   executive commissioner shall appoint members from lists provided by   the governing bodies of six rural counties and six rural   municipalities selected by the executive commissioner with each   list naming two qualified candidates with experience in substance   use treatment, education, and research.          (e)  In making appointments under Subsection (b), the   governor, lieutenant governor, and speaker of the house of   representatives shall coordinate to ensure that the membership of   the council reflects, to the extent possible, the ethnic and   geographic diversity of this state.          (f)  The council is administratively attached to the   Department of State Health Services. The Department of State Health   Services shall provide the staff and facilities necessary to assist   the council in performing its duties.          (g)  A decision by the council to award a grant under Section   547.0554 requires the unanimous approval of all members of the   council.          (h)  The council is subject to Chapter 551.          Sec. 547.0553.  MENTAL HEALTH, SUBSTANCE USE, AND PUBLIC   HEALTH INITIATIVE TRUST FUND. (a) The mental health, substance   use, and public health initiative trust fund is a trust fund   established outside the state treasury for the purposes of this   subchapter to be administered by the Department of State Health   Services. The fund is not a part of this state's general funds.          (b)  The fund is held and invested by the trust company. The   trust company may authorize money from the fund to be invested with   money from the state treasury. The trust company may establish   separate accounts in the fund.           (c)  The fund consists of:                (1)  an initial appropriation of money by the   legislature to the fund as permanent principal for the fund;                (2)  any additional legislative appropriations of   money for the purposes of the fund;                (3)  interest or other earnings on money credited to or   allocable to the fund; and                (4)  money from gifts, grants, or donations to the   fund.          (d)  The money initially appropriated by the legislature as   permanent principal for the fund may be used only for the purposes   of this subchapter.          (e)  Money deposited in the fund may be used to:                (1)  provide grants in accordance with Section   547.0554; and                (2)  pay the trust company's expenses of managing the   fund's assets.          (f)  In managing the assets of the fund, through procedures   and subject to restrictions the trust company considers   appropriate, the trust company may acquire, exchange, sell,   supervise, manage, or retain any kind of investment that a prudent   investor, exercising reasonable care, skill, and caution, would   acquire or retain in light of the purposes, terms, distribution   requirements, and other circumstances of the fund then prevailing,   taking into consideration the investment of all the assets of the   fund rather than a single investment.          (g)  The trust company shall adopt a written investment   policy and a distribution policy appropriate for the fund.          (h)  The trust company shall disburse money from the fund as   directed by the council.          (i)  The trust company shall annually provide to the council   a written report on the investments of the fund.          (j)  The council shall annually provide to the trust company   a forecast of the cash flows into and out of the fund.  The council   shall provide updates to the forecast as appropriate to ensure the   trust company is able to achieve the purposes of this subchapter.          (k)  The trust company may appoint one or more commercial   banks, depository trust companies, or other similar entities to   serve as the custodian of the fund.          Sec. 547.0554.  ESTABLISHMENT OF GRANT PROGRAM. (a) The   council shall establish a grant program to award grants for   programs that improve the coordination between mental health,   substance use, and public health care services in this state   providing services to individuals with co-occurring mental health   and substance use disorders.          (b)  A program funded through a grant awarded under this   subchapter must improve the coordination between mental health,   substance use, and public health care services in this state   through:                (1)  evidence-based preventative or therapeutic   measures, research, the implementation of new technology, data   collection, education programs, or capital improvements; and                (2)  providing an efficient and cost-effective method   directed to support the coordination of personnel, capital   improvements, data interoperability, or long-term financial   sustainability of mental health care, substance use treatment, and   public health care providers.          (c)  Annually, the council shall establish procedures for   submitting, accepting, and evaluating grant applications under   this subchapter.          (d)  The council, in coordination with the statewide   behavioral health coordinating council established under   Subchapter D, shall evaluate grant applications at least   biennially.          Sec. 547.0555.  REPORT. Not later than October 1 of each   year, the council shall submit a written report to the legislature   detailing:                (1)  all expenditures made by the council during the   preceding state fiscal year; and                (2)  any amount of money greater than the initial   appropriation of permanent principal by the legislature that is   held in the fund.          Sec. 547.0556.  RULES. The council shall adopt rules to   implement this subchapter.          SECTION 2.  As soon as practicable after the effective date   of this Act, the executive commissioner of the Health and Human   Services Commission, the governor, the lieutenant governor, and the   speaker of the house of representatives shall appoint the members   of the mental health, substance use, and public health initiative   council as provided by Section 547.0552, Government Code, as added   by this Act.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.