(a) A local mental health authority shall review a contract scheduled for renewal that:
(1) is between the authority and a private provider;
(2) is for the provision of mental health services at the community level, including residential services; and
(3) involves the use of state funds or funds for which the state has oversight responsibility.
(b) The local mental health authority may renew the contract only if the contract meets the criteria provided by § 533.016.

Terms Used In Texas Health and Safety Code 534.065

  • Contract: A legal written agreement that becomes binding when signed.
  • Oversight: Committee review of the activities of a Federal agency or program.

(c) The local mental health authority and private provider shall negotiate a contract renewal at arm’s length and in good faith.
(d) This section applies to a contract renewal regardless of the date on which the original contract was initially executed.

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