(a)    To the extent resources are available, the Director, after consultation with the Behavioral Health Advisory Council as established in Title 7.5, Subtitle 3 of this article and federal requirements mandated under P.L. 99–660, may initiate the development of core service agencies, local addictions authorities, or local behavioral health authorities as a mechanism for community planning, management, and financing of mental health and substance–related disorder services.

(b)    When core service agencies, local addictions authorities, or local behavioral health authorities are initiated, the Director shall:

(1)    Define the priority populations to be served by the core service agencies, local addictions authorities, or local behavioral health authorities;

(2)    Define the essential mental health, substance–related disorder, and associated support services to be provided under the auspices of the core service agencies, local addictions authorities, or local behavioral health authorities;

(3)    Define the essential administrative functions to be carried out by core service agencies, local addictions authorities, or local behavioral health authorities; and

(4)    Outline the requirements for the core service agencies’, local addictions authorities’, or local behavioral health authorities’ governance structure.

(c)    To assure the continuing provision of appropriate services, the Director shall:

(1)    Annually review and may approve the core service agencies’, local addictions authorities’, or local behavioral health authorities’ program plan;

(2)    In conjunction with the appropriate authorities, establish and maintain a funding mechanism for the core service agencies, local addictions authorities, or local behavioral health authorities which may include the allocation of funds for inpatient services;

(3)    Develop a mechanism whereby any unexpended funds remaining at the end of the year shall remain with the core service agencies, local addictions authorities, or local behavioral health authorities or the community providers;

(4)    Establish procedures to facilitate intraagency and interagency linkages at State and local levels with the core service agencies, local addictions authorities, or local behavioral health authorities; and

(5)    Establish procedures within the Behavioral Health Administration for a process regarding program, policy, or contract disputes that gives all community mental health and substance–related disorder programs regulated by the Administration the right to:

(i)    Access the mediation process established by the Administration; and

(ii)    If dissatisfied with the outcome of the mediation by the Administration, request a hearing with the Office of Administrative Hearings in accordance with Title 10, Subtitle 2 of the State Government Article.

(d)    If a core service agency, local addictions authority, or local behavioral health authority violates any provision of this subtitle, the Director may deny approval of the core service agency, local addictions authority, or local behavioral health authority and, after written notification of denial of approval, cease funding or request the return of unspent funds by the core service agency, local addictions authority, or local behavioral health authority.

(e)    If a county elects to terminate its core service agency, local addictions authority, or local behavioral health authority, the county may do so upon 90 days’ written notice to the Director.

(f)    The Director may not require a core service agency, local addictions authority, or local behavioral health authority to provide services the Department does not provide funding for.