Relating to the construction, expansion, and operation of certain inpatient mental health facilities and the designation of residential treatment facilities for certain juveniles.

Contracts

• Grant Agreements: Operators awarded funds must execute binding Grant Agreements with HHSC. Legal counsel must review these for "claw-back" provisions regarding construction deadlines and operational deliverables.
• Vendor Flow-Downs: Construction contracts funded by these grants must incorporate state-mandated clauses (e.g., prevailing wage, indemnification). Update Master Service Agreements (MSAs) for architects and general contractors immediately.

Hiring/Training

• Grant Management: Assign internal resources or retain external consultants to monitor the *Texas Register* and HHSC procurement portals for the Request for Applications (RFA).
• Admissions Staff: Train admissions personnel at juvenile facilities to identify which placements require the new Superintendent Approval prior to educational enrollment.

Reporting & Record-Keeping

• Segregated Ledgers: Establish separate accounting codes for grant funds. These are "one-time grants," and commingling these funds with general operating revenue will trigger audit failures.
• Superintendent Approvals: School districts (ISDs) must create and archive a "Superintendent Approval Form" for non-resident students from designated facilities. Verbal consent is insufficient for state reimbursement compliance.

Fees & Costs

• No New Fees: The bill does not impose new regulatory fees.
• Capital Injection: This is a revenue opportunity. The law creates a funding stream for capital improvements, but costs associated with grant compliance and reporting must be absorbed by the operator.