SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2000 SESSION

001736836
HOUSE BILL NO. 1197
Offered January 24, 2000
A BILL to amend and reenact §§ 37.1-195, 37.1-197, 37.1-197.1, 37.1-198, and 37.1-199 of the Code of Virginia, relating to community services boards.
----------
Patrons-- Wagner and Tata; Senator: Stolle
----------
Referred to Committee on Health, Welfare and Institutions
----------

Be it enacted by the General Assembly of Virginia:

1. That §§ 37.1-195, 37.1-197, 37.1-197.1, 37.1-198, and 37.1-199 of the Code of Virginia are amended and reenacted as follows:

§ 37.1-195. Community services board; appointment; membership; duties of fiscal agent.

A. Every city, county or combination of counties or cities or counties and cities, before it shall come within the provisions of this chapter, shall establish a single community services board, with neither less than six nor more than eighteen members. When any city or county singly establishes a community services board, the board shall be appointed by the governing body of the local political subdivision establishing the board. When any combination of counties or cities or counties and cities establishes a community services board, the board of supervisors of each county or the council of each city shall mutually agree on the size of the board and appoint the members of the community services board. Prior to making any appointment to the board, the appointing authority shall disclose and make available to the public the names of those persons being considered for appointment. The appointing authority shall also make information on the candidates available to the public, if such information is available to the appointing authority.

Appointments to the community services board shall be broadly representative of the community. One-third of the appointments to the board shall be identified consumers or family members of consumers, at least one of whom shall be a consumer receiving services. One or more members may be nongovernmental service providers. Sheriffs or their designees shall also be included, when practical. No employee or board member of an organization which that receives funding from any community services board shall be appointed a member of the board.

No such board shall be composed of a majority of local government officials, elected or appointed, as members, nor shall any county or city be represented on such board by more than two elected or appointed officials.

The board appointed pursuant to this section shall be responsible to the governing body or bodies of the county or city or combination thereof that established such board.

B. A city council or county board of supervisors may designate its community services board as (i) an operating board, (ii) an administrative policy board or (iii) a policy-advisory board. A combination of cities or counties or cities and counties may establish a joint community services board either as (i) an operating board, (ii) an administrative policy board or (iii) a policy-advisory board.

C. The county or city or combination of cities or counties, or cities and counties that establishes an operating board shall receive an independent annual audit of the total revenues, expenditures, and data of that operating board, and shall provide a copy of the audit to the Department. The county or city or combination of cities or counties or cities and counties that establishes an operating board shall designate an official of one member city or county to act as fiscal agent for the board. The county or city whose designated official serves as fiscal agent for the board in the case of joint boards shall review and act upon the independent audit of the board, and shall, in conjunction with the other participating political subdivisions, arrange for the provision of legal services to the board.

D. The county or city or combination of cities or counties, or cities and counties that establishes an administrative policy board shall receive an independent annual audit of the total revenues, expenditures, and data of the administrative policy board, provide a copy of the audit to the Department, and arrange for the provision of legal services to the board. The audit requirement shall be met if the administrative policy board is included in an independent annual audit of a local government, and a copy of such audit is provided to the Department. When a combination of cities or counties, or cities and counties establishes an administrative policy board, the participating subdivisions shall designate an official of one member city or county to act as fiscal agent for the board. The county or city whose designated official serves as fiscal agent for the board in the case of joint boards shall review and act upon the independent audit of the board, and shall, in conjunction with the other participating political subdivisions in the case of joint boards, arrange for the provision of legal services to the board.

E. The county or city or combination of cities or counties, or cities and counties that establishes a policy-advisory board shall provide an annual audit of the total revenues, expenditures, and data of the city or county government department to the board and the Department, carry out the responsibilities and duties enumerated in §§ 37.1-197 A and 37.1-197.1, and provide legal services to the board. When a combination of cities or counties or cities and counties establishes a policy-advisory board, the participating subdivisions shall designate which local government shall operate the city or county government department. This local government shall provide an annual audit of the total revenues, expenditures, and data of that department to the board and the Department, carry out the responsibilities and duties enumerated in §§ 37.1-197 A and 37.1-197.1, and, in conjunction with the other participating political subdivisions in the case of joint boards, arrange for the provision of legal services to the board. The audit requirement shall be met if the local government department is included in an independent annual audit of a local government, and a copy of such audit is provided to the Department.

§ 37.1-197. Community services boards; powers and duties.

A. Every operating community services board or local government department with a policy-advisory board shall have the following powers and duties:

1. Review and evaluate all existing and proposed public community mental health, mental retardation and substance abuse services and facilities available to serve the community and such private services and facilities as receive funds through it and advise the local governing body or bodies of the political subdivision or subdivisions that established it as to its findings.

2. Pursuant to § 37.1-198, submit to the governing body of each political subdivision that established it an annual performance contract for community mental health, mental retardation and substance abuse services for its approval prior to submission of the contract to the Department.

3. Within amounts appropriated therefor, provide such services as may be authorized under such performance contract or funded by the local government. Funding of local services shall not be governed or limited by the performance contract.

4. In accordance with its approved performance contract, enter into contracts with other providers for the rendition or operation of services or facilities.

5. In the case of operating boards, make Make rules, policies, or regulations concerning the rendition or operation of services and facilities under its direction or supervision, subject to applicable standards, policies, or regulations promulgated by the State Board.

6. In the case of operating boards, appoint Appoint an executive director of community mental health, mental retardation and substance abuse services, according to minimum qualifications established by the Department, and prescribe his duties. The compensation of the executive director shall be fixed by the operating board within the amounts made available by appropriation therefor. The executive director shall serve at the pleasure of the operating board and be employed under an annually renewable contract that contains performance objectives and evaluation criteria. For operating boards, the Department shall approve (i) the selection of the executive director for adherence to minimum qualifications established by the Department and (ii) the salary ranges of the executive director and senior management staff. In the case of a local government department with a policy-advisory board, the director of the local government department shall serve as the executive director. The policy-advisory board shall participate in the selection and the annual performance evaluation of the executive director, according to minimum qualifications established by the Department. The compensation of the executive director shall be fixed by local government in consultation with the policy-advisory board within the amounts made available by appropriation therefor.

7. Prescribe a reasonable schedule of fees for services provided by personnel or facilities under the jurisdiction or supervision of the board and establish procedures for the collection of the same. All fees collected for services funded by state-controlled dollars shall be included in the performance contract submitted to the local governing body or bodies pursuant to subdivision 2 hereof of this subsection and § 37.1-198 and shall be used only for community mental health, mental retardation and substance abuse purposes. Every operating board and local government department with a policy-advisory board shall institute a reimbursement system to maximize the collection of fees from persons receiving services under their jurisdiction or supervision consistent with the provisions of § 37.1-202.1 and from responsible third-party payors. Operating boards and local government departments with policy-advisory boards shall not attempt to bill or collect fees for time spent participating in involuntary commitment hearings pursuant to § 37.1-67.3.

8. Accept or refuse gifts, donations, bequests or grants of money or property from any source and utilize the same as authorized by the governing body or bodies of the political subdivision or subdivisions that established it.

9. Seek and accept funds through federal grants. In accepting such grants the operating board or local government department with a policy-advisory board shall not bind the governing body or bodies of the political subdivision or subdivisions that established it to any expenditures or conditions of acceptance without the prior approval of such governing body or bodies.

10. Have authority, notwithstanding any provision of law to the contrary, to disburse funds appropriated to it in accordance with such regulations as may be established by the governing body or bodies of the political subdivision or subdivisions that established it.

11. Apply for and accept loans as authorized by the governing body or bodies of the political subdivision or subdivisions that established it. This provision is not intended to affect the validity of loans so authorized and accepted prior to July 1, 1984.

12. Develop joint annual written agreements, consistent with policies and procedures established by the State Board, with local school divisions; health departments; boards of social services; housing agencies, where they exist; courts; sheriffs; area agencies on aging; and regional Department of Rehabilitative Services offices. The agreements shall specify what services will be provided to consumers. All participating agencies shall develop and implement the agreements and shall review the agreements annually.

13. Develop and submit to the Department the necessary information for the preparation of the Comprehensive State Plan for mental health, mental retardation and substance abuse services pursuant to § 37.1-48.1.

14. Take all necessary and appropriate actions to maximize the involvement and participation of consumers and family members of consumers in policy formulation and services planning, delivery, and evaluation.

15. Institute, singly or in combination with other operating boards, administrative policy boards, local government departments with policy-advisory boards, or behavioral health authorities a dispute resolution mechanism that is approved by the Department and enables consumers and family members of consumers to resolve concerns, issues, or disagreements about services without adversely affecting their access to or receipt of appropriate types and amounts of current or future services from the operating board or local government department with a policy-advisory board.

16. Notwithstanding the provisions of § 37.1-84.1 or any regulations promulgated thereunder, release data and information about individual consumers to the Department so long as the Department implements procedures to protect the confidentiality of such information and such release is permissible under federal law.

B. Every administrative policy community services board shall:

1. Review and evaluate all existing and proposed public community mental health, mental retardation and substance abuse services and facilities available to serve the community and such private services and facilities as receive funds through it and advise the local governing body or bodies of the political subdivision or subdivisions that established it as to its findings.

2. Pursuant to § 37.1-198, submit to the governing body of each political subdivision that established it, an annual performance contract for community mental health, mental retardation and substance abuse services for its approval prior to submission of the contract to the Department.

3. Within amounts appropriated therefor, provide such services as may be authorized under such performance contract or funded by the local government. Locally funded services shall not be governed or limited by the performance contract.

4. In accordance with its approved performance contract, or as funded by the local government, enter into contracts with other providers for the rendition or operation of services or facilities.

5. Make rules, policies, or regulations concerning the rendition or operation of services and facilities under its direction or supervision, subject to applicable standards, policies or regulations promulgated by the State Board.

6. Participate with local government in the appointment and annual performance evaluation of an executive director of community mental health, mental retardation and substance abuse services, according to minimum qualifications established by the Department, and prescribe his duties. The Department may establish suggested qualifications for executive directors. The compensation of the executive director shall be fixed by local government in consultation with the board within the amounts made available by appropriation therefor.

7. Prescribe a reasonable schedule of fees for services provided by personnel or facilities under the jurisdiction or supervision of the board and establish procedures for the collection of the same. However, the local governing body may, by ordinance or resolution, designate certain services to be provided by the board without charge. All fees collected for services funded by state-controlled funds shall be included in the performance contract submitted to the local governing body or bodies pursuant to subdivision 2 of this subsection and § 37.1-198 and shall be used only for community mental health, mental retardation and substance abuse purposes. Every administrative policy board shall institute a reimbursement system to maximize the collection of fees from persons receiving services under their jurisdiction or supervision consistent with the provisions of § 37.1-202.1 and from responsible third-party payors. Administrative policy boards shall not attempt to bill or collect fees for time spent participating in involuntary commitment hearings pursuant to § 37.1-67.3.

8. Accept or refuse gifts, donations, bequests or grants of money or property from any source and utilize the same as authorized by the governing body or bodies of the political subdivision or subdivisions that established it.

9. Seek and accept funds through federal grants. In accepting such grants, the administrative policy community services boards shall not bind the governing body or bodies of the political subdivision or subdivisions that established it to any expenditures or conditions of acceptance without the prior approval of such governing body or bodies.

10. Have authority, notwithstanding any provision of law to the contrary, to disburse funds appropriated to it in accordance with such regulations as may be established by the governing body or bodies of the political subdivision or subdivisions that established it.

11. Apply for and accept loans as authorized by the governing body or bodies of the political subdivision or subdivisions that established it.

12. Develop joint annual written agreements, consistent with policies and procedures established by the State Board, with local school divisions; health departments; boards of social services; housing agencies, where they exist; courts; sheriffs; area agencies on aging; and regional Department of Rehabilitative Services offices. The agreements shall specify what services will be provided to consumers. All participating agencies shall develop and implement the agreements and shall review the agreements annually.

13. Develop and submit to the local governing body of each political subdivision that established it and to the Department the necessary information for the preparation of the Comprehensive State Plan for mental health, mental retardation and substance abuse services pursuant to § 37.1-48.1.

14. Take all necessary and appropriate actions to maximize the involvement and participation of consumers and family members of consumers in policy formulation and services planning, delivery, and evaluation.

15. Institute, singly or in combination with other operating community services boards, administrative policy boards, local government departments with policy-advisory boards, or behavioral health authorities, a dispute resolution mechanism that is approved by the Department and enables consumers and family members of consumers to resolve concerns, issues, or disagreements about services without adversely affecting their access to or receipt of appropriate types and amounts of current or future services from the administrative policy board.

16. Notwithstanding the provisions of § 37.1-84.1 or any regulations promulgated thereunder, release data and information about individual consumers to the Department so long as the Department implements procedures to protect the confidentiality of such information and such release is permissible under federal law.

17. Carry out other duties and responsibilities as assigned by the governing body of each political subdivision that established it.

By local agreement between the administrative policy board and the governing body of the political subdivision that established it, additional responsibilities may be carried out by the local government, including, but not limited to, procurement, personnel or financial management. In the case of administrative policy boards established by more than one city or county, the participating subdivisions shall designate which local government shall assume these responsibilities. The performance of such responsibilities by a local government shall not be subject to review by the Department.

C. Every policy-advisory community services board, with staff support provided by the director of the local government department, shall:

1. Advise the local government regarding rules, policies, or regulations for the rendition or operation of services and facilities by the local government department, subject to applicable standards, policies, or regulations promulgated by the State Board.

2. Review and evaluate the operations of the local government department and advise the local governing body of each political subdivision that established it as to its findings.

3. Review the community mental health, mental retardation and substance abuse services developed by the local government department and advise the local governing body of each political subdivision that established it as to its findings.

4. Review and comment on the annual performance contract, quarterly and annual performance reports, and Comprehensive State Plan proposals developed by the local government department. The board's comments shall be attached to the performance contract, performance reports, and Comprehensive State Plan proposals prior to their submission to the local governing body of each political subdivision that established it and to the Department.

5. Advise the local government as to the necessary and appropriate actions to maximize the involvement and participation of consumers and family members of consumers in policy formulation and services evaluation.

6. Participate in the selection and the annual performance evaluation of the local government department director employed by the city or county.

7. Carry out other duties and responsibilities as assigned by the governing body of each political subdivision that established it.

D. Every local government department with a policy-advisory board shall have the following powers and duties:

1. Review and evaluate all existing and proposed public community mental health, mental retardation and substance abuse services and facilities available to serve the community and such private services and facilities as receive funds through it and advise the local governing body or bodies of the political subdivision or subdivisions that established it as to its findings.

2. Pursuant to § 37.1-198, submit to the governing body an annual performance contract for community mental health, mental retardation and substance abuse services for its approval prior to submission of the contract to the Department.

3. Within amounts appropriated therefor, provide such services as may be authorized under such performance contract or funded by the local government.

4. In accordance with its approved performance contract, or as funded by the local government, enter into contracts with other providers for the rendition or operation of services or facilities.

5. Make rules, policies, or regulations concerning the rendition or operation of services and facilities under its direction or supervision, subject to applicable standards, policies or regulations promulgated by the State Board.

6. The director of the local government department shall serve as the executive director. The policy-advisory board shall participate in the selection and the annual performance evaluation of the executive director, according to minimum qualifications recommended by the Department.

7. Prescribe a reasonable schedule of fees for services provided by personnel or facilities under the jurisdiction or supervision of the local government and establish procedures for the collection of the same. However, the local governing body may, by ordinance or resolution, designate certain services to be provided without charge. All fees collected for services funded by state-controlled funds shall be included in the performance contract submitted to the local governing body pursuant to subdivision 2 of this subsection and § 37.1-198 and shall be used only for community mental health, mental retardation and substance abuse services purposes. Every local government department with a policy-advisory board shall institute a reimbursement system to maximize the collection of fees from persons receiving services under their jurisdiction or supervision consistent with the provisions of § 37.1-202.1 and from responsible third-party payors. However, no attempt shall be made to bill or collect fees for time spent participating in involuntary commitment hearings pursuant to § 37.1-67.3.

8. Seek funds available through federal grants.

9. Have authority, notwithstanding any provision of law to the contrary, to disburse funds appropriated to it in accordance with such regulations as may be established by the governing body.

10. Develop joint annual written agreements with local school divisions; health departments; boards of social services; housing agencies, where they exist; courts; sheriffs; area agencies on aging; and regional Department of Rehabilitative Services offices. The agreements shall specify what services will be provided to consumers. All participating agencies shall develop and implement the agreements and shall review the agreements annually.

11. Develop and submit to the Department the necessary information for the preparation of the Comprehensive State Plan for mental health, mental retardation and substance abuse services pursuant to § 37.1-48.1.

12. Take all necessary and appropriate actions to maximize the involvement and participation of consumers and family members of consumers in policy formulation and services planning, delivery, and evaluation.

13. Institute, singly or in combination with other operating boards, administrative policy boards, local government departments with policy-advisory boards, or behavioral health authorities a dispute resolution mechanism approved by the Department that enables consumers and family members of consumers to resolve concerns, issues, or disagreements about services without adversely affecting their access to or receipt of appropriate types and amounts of current or future services.

14. Notwithstanding the provisions of § 37.1-84.1 or any regulations promulgated thereunder, release data and information about individual consumers to the Department so long as the Department implements procedures to protect the confidentiality of such information and such release is permissible under federal law.

§ 37.1-197.1. Prescription team; prescreening; predischarge planning.

A. In order to provide comprehensive mental health, mental retardation and substance abuse services within a continuum of care, the operating community services board, administrative policy board or local government department with a policy-advisory board shall function as the single point of entry into the publicly funded mental health, mental retardation and substance abuse services system and shall fulfill the following responsibilities:

1. Establish and coordinate the operation of a prescription team that shall be composed of representatives from the operating community services board, administrative policy board or local government department with a policy-advisory board, social services or public welfare department, health department, Department of Rehabilitative Services office serving in the community services board's area and, as appropriate, the social services staff of the state institution(s) serving the community services board's catchment area and the local school division. Such other human resources agency personnel may serve on the team as the team deems necessary. The team, under the direction of the operating community services board, administrative policy board or the local government department with a policy-advisory board, shall be responsible for integrating the community services necessary to accomplish effective prescreening and predischarge planning for consumers referred to the operating community services board, administrative policy community services board, or local government department with a policy-advisory board. When prescreening reports are required by the court on an emergency basis pursuant to § 37.1-67.3, the team may designate one team member to develop the report for the court and report thereafter to the team.

2. Provide prescreening services prior to the admission for treatment pursuant to § 37.1-65 or § 37.1-67.3 of any person who requires emergency mental health services while in a political subdivision served by the operating community services board, administrative policy board or local government department with a policy-advisory board.

3. Provide, in consultation with the appropriate state mental health facility or training center, predischarge planning for any person who, prior to admission, resided in a political subdivision served by the operating community services board, administrative policy board, or local government department with a policy-advisory board or who chooses to reside after hospitalization in a political subdivision served by the board, and who is to be released from a state mental health facility or training center pursuant to § 37.1-98. The predischarge plan shall be completed prior to the person's discharge. The plan shall be prepared with the involvement and participation of the consumer or his representative and must reflect the consumer's preferences to the greatest extent possible. The plan shall include the mental health, mental retardation, substance abuse, social, educational, medical, employment, housing, legal, advocacy, transportation, and other services that the consumer will need upon discharge into the community and identify the public or private agencies that have agreed to provide them.

No person shall be discharged from a state mental health facility or training center without completion by the operating board, administrative policy board, or local government department with a policy-advisory board of the predischarge plan described in subdivision 3 of this subsection. If state facility staff identify a patient or resident as ready for discharge and the operating board, administrative policy board, or local government department with a policy-advisory board that is responsible for the person's care disagrees, the operating board, administrative policy board or local government department with a policy-advisory board shall document in the treatment plan within thirty days of such person's identification any reasons for not accepting the person for discharge. If the state facility disagrees with the operating board, administrative policy board, or local government department with a policy-advisory board and the operating board, administrative policy board, or local government department with a policy-advisory board refuses to develop a predischarge plan to accept the person back into the community, the state facility or the operating board, administrative policy board, or local government department with a policy-advisory board shall request the Commissioner to review the state facility's determination that the person is ready for discharge in accordance with procedures established in the performance contract. If the Commissioner determines that the person is ready for discharge, a predischarge plan shall be developed by the Department to ensure the availability of adequate services for the consumer and the protection of the community. The Commissioner shall also verify that sufficient state-controlled funds have been allocated to the operating board, administrative policy board, or local government department with a policy-advisory board through the performance contract for the current fiscal year, and identify projected funding to support the discharge plan for the next three fiscal years. If sufficient state-controlled funds have been allocated, the Commissioner may contract with a private provider or another operating board, administrative policy board, or local government department with a policy-advisory board to deliver the services specified in the predischarge plan and withhold funds allocated applicable to that consumer's predischarge plan from the operating board, administrative policy board, or local government department with a policy-advisory board in accordance with § 37.1-198 C and E.

B. The operating community services board, administrative policy board, or local government department with a policy-advisory board may perform the functions set out in subdivision A 1, regarding the prescription team, in the case of children by referring consumers who are minors to the locality's family assessment and planning team and by cooperating with the community policy and management team in the coordination of services for troubled youths and their families. The operating board, administrative policy board, or local government department with a policy-advisory board may involve the family assessment and planning team and the community policy and management team, but it remains responsible for performing the functions set out in subdivisions A 2 and A 3 in the case of children.

§ 37.1-198. Performance contract for mental health, mental retardation and substance abuse services.

A. The Department shall develop and initiate negotiation of the performance contracts through which it provides funds to operating boards, administrative policy boards or local government departments with policy-advisory local governments and community services boards to accomplish the purposes set forth in this chapter. Six months prior to the beginning of each fiscal year, the Department shall make available to the public the standard performance contract form that it intends to use as the performance contract for that fiscal year, and solicit public comments for a period of sixty days.

B. Any operating As the gateway of the publicly funded mental health system, community services board, administrative policy board, or boards and local government department with a policy-advisory board may apply for departments shall be provided the assistance provided in this chapter by submitting annually to the Department its a proposed performance contract for the next fiscal year together with the (i) recommendations of the operating community services board or administrative policy board's board of directors or the local government department's policy-advisory board and (ii) the approval by formal vote of the governing body of each political subdivision that established it. In the case of community services boards which are departments of local government, the locality's governing body becomes a party to the contract by approving the performance contract. The operating board, administrative policy board or local government department with a policy-advisory board shall make its proposed performance contract available for public review and solicit public comments for a period of thirty days prior to submitting it for the recommendations of the operating board or administrative policy board's board of directors or the local government department's policy-advisory board. To avoid disruptions in service continuity, the Department may provide up to five semi-monthly payments of state-controlled funds to allow sufficient time to complete public review, public comment, negotiation and approval of the performance contract. If the governing body of each political subdivision does not approve the proposed performance contract by September 15 of each year, the performance contract shall be deemed approved. Each approved performance contract shall be immediately submitted to the Department, which shall, within forty-five days of receiving the contract, execute and return a signed copy of the contract to the community services board or local government.

C. The performance contract shall (i) delineate the responsibilities of the Department and the operating board, administrative policy board or the local government department and its policy-advisory board; (ii) specify conditions that must be met for the receipt of state-controlled funds; (iii) identify the groups of consumers to be served with state-controlled funds; (iv) beginning on July 1, 2000, contain specific consumer outcome, provider performance, consumer satisfaction, and consumer and family member participation and involvement measures, and state facility bed utilization targets that have been negotiated with the operating board, administrative policy board or local government department with a policy-advisory board; (v) establish an enforcement mechanism, including notice and an appeal process that involves review by parties outside the Department, should an operating board, administrative policy board or local government department with a policy-advisory board fail to substantially comply with any provisions of the contract, including provisions for remediation, the withholding of funds, methods of repayment of funds, and for the Department to exercise the provision of subsection E; and (vi) include reporting requirements and revenue, cost, service, and consumer information displayed in a consistent, comparable format determined by the Department. The performance contract shall contain no conditions that limit the lawful exercise of a local government's discretion in personnel, financial or procurement decisions. Judicial review, as provided by § 11-71 B, of all decisions made by the Department concerning the performance contract, including whether a dispute qualifies for the Department's dispute resolution process, may be sought in the Circuit Court of the City of Richmond within thirty days of receipt of the decision.

The Department may provide for performance monitoring by an administrative services organization under contract with the Department in order to determine whether the operating boards, administrative policy boards or local government departments with policy-advisory boards are performing in accordance with the requirements of their respective performance contract.

At a minimum, the Department's responsibilities under the performance contract shall include the following: (i) creation and implementation of clear Medicaid reimbursement regulations and policies in collaboration with the Department of Medical Assistance Services; (ii) collaboration with local governments to determine consumer needs and the methods of fulfilling consumer needs through state and local cooperation; (iii) establishment and provision of technical assistance to local governments and community services boards for compliance with state and federal regulation; and (iv) prompt payment for services performed pursuant to the contract, not more than forty-five days after the invoice is rendered.

D. No operating community services board, administrative policy community services board or local government department with a policy-advisory board shall be eligible to receive state-controlled funds for mental health, mental retardation or substance abuse services after September 15 of each year unless (i) its performance contract has been approved by the governing body of each political subdivision that established it and by the Department; (ii) it provides service, cost, revenue, and aggregate and individual consumer data and information, notwithstanding the provisions of § 37.1-84.1 or any regulations promulgated thereunder, to the Department in the format prescribed by the Department; and (iii) beginning on July 1, 2000, it uses standardized cost accounting and financial management systems approved by the Department.

E. If, after unsuccessful use of the remediation process described in the performance contract, an operating board or administrative policy board or local government department with a policy-advisory board remains in substantial noncompliance with its performance contract with the Department, the Department may, after affording the operating board or administrative policy board or local government department with a policy-advisory board an adequate opportunity to use the appeal process described in the performance contract, terminate all or a portion of the contract. Using the state-controlled resources associated with that contract, the Department, after consulting with the governing body of each political subdivision that established the operating board, administrative policy board or local government department with a policy-advisory board, may negotiate a performance contract with another operating board, administrative policy board, or local government department with a policy-advisory board or a private nonprofit or for-profit organization or organizations to obtain services that were the subject of the terminated performance contract.

§ 37.1-199. Mental health, mental retardation and substance abuse services; allocation of funds by Department; withdrawal of funds.

A. At the beginning of each fiscal year the Department shall allocate available state-controlled funds to operating community services boards, administrative policy boards, and local government departments with policy-advisory boards for disbursement in accordance with Department approved performance contracts.

B. From time to time during the fiscal year, the Department shall review the performance reports of the operating boards, administrative policy boards and local government departments with policy-advisory boards and the utilization management and review reports on their operations. The Department, after affording the operating board, administrative policy board or local government department with a policy-advisory board adequate opportunity to use the appeal process described in the performance contract, may withdraw funds from any operating community services board, administrative policy board or local government department with a policy-advisory board that is not being administered in accordance with its approved performance contract; that does not need the funds, based on its performance reports or utilization management and review reports; that is not in compliance with the operational standards for community services that are promulgated by the State Board; or that does not meet provider performance, consumer outcome, consumer satisfaction or consumer and family member involvement measures in its performance contract. The operational standards established by the State Board shall not limit or override local government discretion in personnel, financial or procurement decisions.

C. The Department shall notify the governing body of each political subdivision that established the operating board, administrative policy board or local government department with a policy-advisory board ninety days before implementing any reduction of state-controlled funds. Before any political subdivision withdraws local government matching funds, it shall notify its operating board, administrative policy board or local government department with a policy-advisory board and the Department, since this could affect the amount of state-controlled funds provided by the Department.

D. Allocations to be made to each operating board, administrative policy board, or local government department with a policy-advisory board shall be determined by the Department after careful consideration of all of the following factors:

1. The total amount of funds appropriated for this purpose;

2. The total amount of matching funds appropriated by the cities and counties participating in the community services board, if the cities or counties designate appropriations as "matching funds";

3. The financial abilities of all of the cities and counties participating in the local community services board to provide funds required to generate the requested state match, based upon written criteria established by the Department and provided annually to each participating city or county;

4. The type and extent of services provided or planned by the operating community services board, administrative policy board or local government department with a policy-advisory board;

5. The availability of services provided by the operating board, administrative policy board or local government department with a policy-advisory board in the area served by it;

6. The ability of the services provided by the operating board, administrative policy board, or local government department with a policy-advisory board to decrease financial costs to the Department and increase the effectiveness of treatment or training by reducing the number of consumers being admitted to or retained in state mental health facilities and training centers from the cities or counties participating in the community services board; and

7. The performance of the operating board, administrative policy board or local government department with a policy-advisory board, as measured by provider performance, consumer outcome, consumer satisfaction, and consumer and family member involvement standards and criteria promulgated by the State Board, provided that the community services board or local government shall be provided with copies of such performance evaluations and may appeal performance evaluations using the dispute resolution process provided by the performance contract.

E. Allocations to any one operating board, administrative policy board, or local government department with a policy-advisory board shall not exceed the following proportions, unless a waiver is granted by the Department pursuant to policy promulgated by the State Board:

1. For the construction of facilities: ninety percent of the total amount of state and local matching funds provided for such construction.

2. For salaries and other operational costs: ninety percent of the total amount of state and local matching funds provided for these expenses.

F. All fees collected shall be kept by the operating board, administrative policy board, or local government department with a policy-advisory board and used for operational costs.

G. The Department shall establish written, statewide criteria to support decisions to reduce funds or to allocate funds, which shall be provided annually to each community services board or local government providing services pursuant to a performance contract.