Bill No.: HB0074                  Drafter:  JHR

LSO No.:  07LSO-0290              Effective Date:

Enrolled Act No.:  HEA0076

Chapter No.:

Prime Sponsor:     Select Committee on Mental Health and Substance Abuse Services

Catch Title:       Department of health-provider contract restrictions.

Subject:  Requires the Department of Health to withhold a portion of funding to community mental health and substance abuse programs until specified conditions are met.

Summary/Major Elements:

· This act:

· Requires the Mental Health and Substance Abuse Divisions of the Department of Health to withhold annually not less than 5% of all amounts provided in each contract with a community mental health or substance abuse provider or drug court program or provider;

· Provides that the funds withheld shall not be released until the individual program or provider and the respective division enter into a written agreement that provides for performance and outcome measures;

· Provides that, if a written agreement is not entered into, the funds withheld shall revert to the budget reserve account at the end of the biennium in which the funds were withheld;

· Provides that the provisions created by this act shall apply to any contract entered into between the mental health division or the substance abuse division and a community-based mental health, substance abuse or drug court provider on or after the effective date of this act.