Authority: Title 37.1, Chapter 10, Code of Virginia.

A. It is the intent of the General Assembly that community mental health, mental retardation and substance abuse services are to be improved throughout the state. Funds provided in this Item shall not be used to supplant the funding effort provided by localities for services existing as of June 30, 1996.

B. Further, it is the intent of the General Assembly that funds appropriated for this Item may be used by Community Services Boards to purchase, develop, lease, or otherwise obtain, in accordance with § 37.1-197, Code of Virginia, real property necessary to the provision of residential services funded by this Item.

C. Out of the appropriation for this Item, funds are provided to Community Services Boards in an amount sufficient to reimburse the Virginia Housing Development Authority for principal and interest payments on residential projects for the mentally disabled financed by the Housing Authority.

D. The Department of Mental Health, Mental Retardation and Substance Abuse Services shall make payments to the Community Services Boards from this Item in twenty-four equal semimonthly installments, except for necessary budget revisions or the operational phase-in of new programs.

E. Failure of a board to participate in Medicaid covered services and to meet all requirements for provider participation shall result in the termination of a like amount of state grant support.

F. Community Services Boards may establish a line of credit loan for up to three months' operating expenses to assure adequate cash flow.

G. Out of the appropriation for this Item, $216,500 the first year and $216,500 the second year from the general fund shall be provided to continue the Keeping Our Kids At Home program in the Roanoke Valley, to contract with community providers for short-term crisis hospitalization of children and adolescents.

H. Out of the appropriation for this Item, the Department shall initiate statewide Programs of Assertive Community Treatment (PACT) to provide services to adults with serious mental illnesses in the community, in order to reduce hospitalizations.

I. Out of the appropriation for this Item, $750,000 the first year and $750,000 the second year from the general fund shall be used to develop pilot projects in areas that have high concentrations of adult care residences. The Department of Mental Health, Mental Retardation and Substance Abuse Services, in cooperation with the Department of Social Services, shall design the projects to identify and provide the appropriate treatment and support for persons with mental illness, mental retardation, or substance abuse problems who reside in adult care residences. The Department shall ensure that the pilot projects are designed to provide a variety of service models, including the provision of services within the community and within the adult care residence. The Department shall evaluate the implementation of the pilot projects and measure project outcomes.

J. Out of this appropriation $200,000 in the first year and $200,000 in the second year is provided to Grafton School for the continued operation and expansion of the Virginia Autism Resource Center.

K. The Department of Mental Health, Mental Retardation and Substance Abuse Services shall conduct a study of methods to increase the number of service providers in Virginia's Part H early intervention system from underserved groups, including minority, low-income, and rural families. The Department shall consider a variety of recruitment and retention strategies including, but not limited to, the use of scholarship incentives, training opportunities, minority recruitment, and other strategies developed by the Task Force for Virginia's Part H early intervention system. In undertaking this study, the Department shall establish a task force comprised of representatives from underserved groups, colleges and universities, service agencies and providers, families, and the Joint Subcommittee Studying Early Intervention for Infants and Toddlers with Disabilities, to develop strategies for ongoing preservice and in-service training, recruitment, and retention of early intervention personnel from underserved groups.

L. The Department of Mental Health, Mental Retardation, and Substance Abuse Services and the Department of Rehabilitative Services shall assist the Cumberland Mountain Community Services Board in developing a management and funding plan for employment programs provided to disabled persons.

M. Out of this appropriation, $500,000 the first year and $500,000 the second year from nongeneral funds is provided to the Richmond Behavioral Health Authority to continue a substance abuse treatment program that allows substance-abusing women to remain with their children during treatment.

N.1. As directed by the Governor, the Department of Mental Health, Mental Retardation, and Substance Abuse Services, in collaboration with the Community Service Boards and other stakeholders, shall develop and implement a multi-stage plan to reduce mental health services provided in state facilities and reinvest saved resources to expand community based care. The first phase of the plan, at a minimum, shall restructure services in the facilities listed in paragraph N.2 and reinvest all funding in community programs.

2. Appropriations to the following mental health treatment centers shall be made available to community services boards for implementation of regional restructuring projects to expand community mental health, mental retardation and substance abuse programs to serve patients who are discharged from these facilities or to reduce facility admissions during FY 2004 in the following approximate amounts:

3. The Commissioner of Mental Health, Mental Retardation, and Substance Abuse Services shall submit quarterly status reports on the successful implementation of these regional restructuring projects to the Secretary of Health and Human Resources, the Chairmen of the Senate Finance and House Appropriations Committees, and the Director of the Department of Planning and Budget beginning September 2003 and continuing through the completion of these projects.

O. Notwithstanding the provisions of §§ 32.1-102.1 – 32.1-102.13, Code of Virginia, a certificate of public need shall not be required for the establishment of three community-based mental retardation facilities established by or under contract with any community services board in Health Planning Region I. Such facilities shall be subject to licensing as community Intermediate Care Facilities/Mental Retardation (ICF/MRs) by the Department of Mental Health, Mental Retardation and Substance Abuse Services pursuant to Chapter 8 of Title 37.1 of the Code of Virginia.