HB 1747

relating to the administration of funding for the coordination of
mental health, substance use, and public health care services in
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 403, Government Code, is amended by
adding Subchapter V to read as follows:
SUBCHAPTER V.  MENTAL HEALTH, SUBSTANCE USE, AND PUBLIC HEALTH
Sec. 403.701.  DEFINITIONS.  In this subchapter:
(1)  "Council" means the mental health, substance use,
and public health initiative council established by Section
(2)  "Fund" means the mental health, substance use, and
public health initiative trust fund established by Section 403.703.
Sec. 403.702.  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
(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 of the Health and Human Services Commission who are
from academia or the medical profession and have significant
experience in matters of mental health, substance use, and public
(5)  seven members appointed by the executive
commissioner of the Health and Human Services Commission as
(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 comptroller or the comptroller's designee.
(c)  The comptroller or the comptroller'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 of the Health and Human Services Commission
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,
(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
403.704 requires the unanimous approval of all members of the
(h)  The council is subject to Chapter 551.
Sec. 403.703.  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.  The fund is not a part of this state's general funds.
(b)  The fund is administered by the Texas Treasury
Safekeeping 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 in the fund accounts to facilitate
the administration of money in the fund.
(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
(4)  money from gifts, grants, or donations to the
(d)  The money initially appropriated by the legislature as
permanent principal for the fund may not be used for any purpose
other than to gain interest or other investment earnings.
(e)  Money in the fund gained as interest or other earnings
on the investment of the permanent principal of the fund may be used
(1)  provide grants in accordance with Section 403.704;
(2)  pay the necessary and reasonable expenses of
(f)  In making investments of money in the fund, the Texas
Treasury Safekeeping Trust Company shall exercise the judgment and
care under the circumstances then prevailing that a person of
ordinary prudence, discretion, and intelligence exercises in the
management of the person's own affairs.
(g)  The Texas Treasury Safekeeping 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. 403.704.  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
(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
(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
(c)  Annually, the council shall establish procedures for
submitting, accepting, and evaluating grant applications under
(d)  The council, in coordination with the statewide
behavioral health coordinating council established under
Subchapter D, Chapter 547, shall evaluate grant applications at
Sec. 403.705.  REPORT.  Not later than October 1 of each
year, the Texas Treasury Safekeeping Trust Company 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
Sec. 403.706.  RULES.  The council shall adopt rules to
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 403.702, Government Code, as added
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.