(a) The department and the Health and Human Services Commission shall by rule adopt a memorandum of understanding that establishes their respective responsibilities to establish a continuity of care program for inmates with a history of drug or alcohol abuse.
(b) An agency of the state not listed in Subsection (a) that determines that it may provide services to inmates with a history of drug or alcohol abuse may participate in the development of the memorandum, if the parties listed in this subsection approve the agency’s participation.

(c) The memorandum of understanding must establish methods for:
(1) identifying inmates with a history of drug or alcohol abuse;
(2) notifying the pardons and paroles division and the Health and Human Services Commission as to when an inmate with a history of drug or alcohol abuse is to be released and as to the inmate’s release destination;
(3) identifying the services needed by inmates with a history of drug or alcohol abuse to reenter the community successfully; and
(4) determining the manner in which each agency that participates in the establishment of the memorandum can share information about inmates and use that information to provide continuity of care.
(d) The Texas Commission on Alcohol and Drug Abuse shall coordinate the memorandum of understanding.
(e) The institutional division shall fund and operate a full service alcoholism and drug counseling program for chemically dependent inmates. The institutional division shall provide a sufficient number of alcoholism and drug counselors to provide counseling services for not less than 80 percent of those inmates in need of alcohol or drug counseling. The institutional division also shall provide a sufficient administrative and supervisory staff to organize, operate, and evaluate a program that motivates those inmates with a history of alcohol or drug-related problems to pursue a socially acceptable and chemically free lifestyle. The institutional division shall use funds received for these purposes and shall actively pursue federal grants for helping fund the program.
(f) The institutional division may require that inmates selected by the division attend a substance abuse treatment program that includes recognition and awareness of the disease concept of addiction. The institutional division may use suitable inmates as tutors in the program but must ensure that the inmate tutors do not exercise any authority over other inmates. The institutional division shall provide educational materials designed to assist an inmate in understanding the inmate’s alcohol or drug dependency problem.