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.1. Out of this appropriation, $875,000 $3,125,000 in the first year and $875,000 $3,125,000 the second year from the general fund is provided for Virginia's Part C Early Intervention System for infants and toddlers with disabilities.

2. The Department shall amend its fiscal year 2006 contracts with the Part C Local Interagency Coordinating Council (LICC) fiscal agents to require additional reporting on (a) total revenues used to support Part C services, (b) total expenses for all Part C services, (c) total numbers of infants and toddlers and families served using all Part C revenues, and (d) services provided to those infants and toddlers and families.

3. Beginning October 1, 2005 the Department shall annually report this information to the Chairmen of the House Appropriations and Senate Finance Committees.

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. Out of this appropriation shall be provided from the general fund $6,125,000 the first year and $6,125,000 $6,625,000 the second year for mental health services for children and adolescents with serious emotional disturbances and related disorders. The Department of Mental Health, Mental Retardation and Substance Abuse Services shall provide these funds to community services boards through the annual Performance Contract. These funds shall be used exclusively for children and adolescents, not mandated for services under the Comprehensive Services Act for At-Risk Youth, who are identified and assessed through the Family and Assessment Planning Teams and approved by the Community Policy and Management Teams of the localities. The Department shall provide these funds to the community services boards based on an individualized plan of care methodology.

O. Out of this appropriation, the expenditure of $1,968,750 the first year and $2,625,000 the second year from the general fund is for the placement of three additional programs of assertive community treatment (PACT).

P.  Out of this Item $5,260,000 the second year from the general fund is for 77 individualized mental health discharge assistance plans.

Q.  Out of this Item $2,800,000 the second year from the general fund is for increased mental health inpatient treatment purchased in community hospitals.