ST. ELIZABETHS HOSPITAL

TUESDAY, SEPTEMBER 14, 1976

HOUSE OF REPRESENTATIVES,

COMMITTEE ON THE DISTRICT OF COLUMBIA,

Washington, D.C.

The committee met, pursuant to notice, at 9:35 a.m., in room 1310, Longworth House Office Building, Hon. Charles C. Diggs, Jr. (chairman of the committee), presiding.

Present: Representative Diggs, Delegate Fauntroy, Representatives Mann, Mazzoli, Harris, and Whalen.

Also present: Ruby G. Martin, general counsel; James T. Clark, legislative counsel; Wilbur Hughes, staff assistant and Carol Thompson, minority legislative assistant.

The CHAIRMAN. The committee will come to order.

Today the full Committee on the District of Columbia begins 2 days of hearings on a draft bill that would transfer authority for operating St. Elizabeths Hospital from the Department of Health, Education, and Welfare to a private corporation, and I emphasize that it is a draft proposal.

[The proposal and summary thereof referred to follow:]

[Revised Discussion Draft No. 2, July 16, 1976]

[H.R. - 94th Cong., 2d sess.]

A BILL To establish an independent corporation with exclusive authority over Saint Elizabeths Hospital

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

SECTION 1. This Act may be cited as the "Saint Elizabeths Hospital Corporation Act".

SAINT ELIZABETHS HOSPITAL CORPORATION

SEC. 2. (a) (1) There is created an independent corporation to be known as the Saint Elizabeths Hospital Corporation (hereafter in this Act referred to as the "Corporation"). Sole management of the affairs of the Corporation is vested in a board of directors (hereafter in this Act referred to as the Board") which shall have exclusive authority over Saint Elizabeths Hospital.

(2) Section 101 of the Government Corporation Control Act (31 U.S.C. 846) is amended by inserting "Saint Elizabeths Hospital Corporation;" immediately after "Tennessee Valley Authority;".

(b) (1) The Board shall consist of five members appointed as follows:

(A) Three members shall be appointed, after consultation with the committees of the Congress having legislative jurisdiction with respect to Saint Elizabeths Hospital, by the Secretary of Health, Education, and Welfare(i) at least one of whom shall be a psychiatrist, and

(ii) at least one of whom shall be experienced in administering mental health institutions.

(B) Two members shall be nominated, after consultation with organizations in the District of Columbia interested in mental health issues, by the Mayor of the District of Columbia and confirmed by a vote of two-thirds of the members of the Council of the District of Columbia.

A vacancy on the Board shall be filled in the manner in which the original appointment was made.

(2) The Board shall select one of its members as Chairman.

(3) (A) Except as provided in subparagraphs (B) and (C), members of the Board shall be appointed for terms of five years. Any member of the Board shall be eligible for reappointment.

(B) Any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed only for the remainder of such term.

(C) The members first appointed to the Board shall be appointed for terms as follows:

(i) of the members appointed by the Secretary of Health, Education, and Welfare

(I) one shall be appointed for a term of one year,

(II) one shall be appointed for a term of three years, and
(III) one shall be appointed for a term of five years,

as designated by the Secretary at the time of appointment.

(ii) of the members nominated by the Mayor of the District of Columbia and confirmed by the Council of the District of Columbia

(I) one shall be appointed for a term of two years, and
(II) one shall be appointed for a term of four years,

as designated by the Mayor at the time of nomination.

(4) Effective October 1, 1976, members of the Board shall each be entitled to receive basic pay at the annual rate in effect for level V of the Executive Schedule. Members of the Board appointed prior to such date shall receive such compensation as the Secretary of Health, Education, and Welfare may prescribe for each day during which they are engaged in the actual performance of duties vested in the Board, except that such compensation may not exceed the daily equivalent of the annual rate of basic pay in effect for level V of the Executive Schedule.

(5) Three members of the Board shall constitute a quorum for purposes of exercising the functions of the Board.

(6) A vacancy on the Board shall not affect the authority of the Board to exercise its functions.

TRANSFER OF FUNCTIONS AND PROPERTY

SEC. 3. (a) Upon a certification by the Board to the Secretary of Health, Education, and Welfare and to the Congress that the Board is ready to assume its responsibilities under this Act, all functions of the Secretary of Health, Education, and Welfare with respect to supervising the administration of Saint Elizabeths Hospital shall vest in the Board, including the Secretary's functions under

(1) sections 4839, 4851, 4852, and 4858 of the Revised Statutes (24 U.S.C. 165, 211, 211a, and 170, respectively);

(2) the Act of June 23, 1874, (42 U.S.C. 212);
(3) the Act of June 30, 1906 (24 U.S.C. 177);

(4) the Act of June 12, 1917 (24 U.S.C. 196);

(5) the Act of October 6, 1917 (24 U.S.C. 200);

(6) the Act of March 6, 1920 (24 U.S.C. 168 and 176);

(7) the Act of June 5, 1920 (24 U.S.C. 166);

(8) the Act of July 18, 1940 (24 U.S.C. 196b);

(9) the joint resolution of May 9, 1941 (24 U.S.C. 180);

(10) the Act of November 7, 1941 (24 U.S.C. 181–184); and

(11) the Act of August 4, 1974 (24 U.S.C. 169a, 185, and 195a).

(b) Upon the certification described in subsection (a) of this section, all right. title, and interest of the United States in the real property, including buildings and improvements, known as Saint Elizabeths Hospital shall vest in the Corporation. Not later than sixty days after such certification, the Board and the Secretary of Health, Education, and Welfare shall enter into an agreement containing a description of all property transferred by the preceding sentence. Such agreement shall also provide for the transfer to the Corporation of all personal prop

erty then being used in connection with the operation of Saint Elizabeths Hospital. If the Board and the Secretary are unable to agree on any matter required to be set in such agreement, the matter shall be decided by the Director of the Office of Management and Budget.

(c) (1) All orders determinations, rules, regulations, permits, contracts, certificates, licenses, and privileges

(A) which have been issued, made, granted, or allowed to become effective in the exercise of any function transferred by this Act, and

(B) which are in effect on the effective date of the transfer of such function, shall continue in effect according to their terms until modified, terminated, superseded, set aside, or repealed by the Board, by any court of competent jurisdiction, or by operation of law.

(2) (A) Except as provided in subparagraph (B), this Act shall not affect any proceedings pending before the Secretary of Health, Education, and Welfare which involves any function transferred to the Board by this Act.

(B) To the extent that such proceedings involve a function transferred by this Act, such proceedings shall, upon the transfer of such function, be continued before the Board. In any proceeding so continued, orders shall be issued, appeals shall be taken, and payments shall be made, as if this Act had been enacted; and orders issued prior to such transfer in any proceeding so continued shall continue in effect according to their terms until modified, terminated, superseded, or repealed by the Board, by a court of competent jurisdiction, or by operation of law. (3)(A) Except as provided in subparagrph (B), the provisions of this Act shall not affect any suit or other proceeding commenced by or against the Secretary of Health, Education, and Welfare which involves any function transferred to the Board by this Act.

(B) To the extent that such suit or other proceeding involves a function transferred to the Board by this Act, such suit or proceeding shall, upon the transfer of such function, be continued by or against the Board. In any litigation pending on the effective date of this Act, the court may, at any time, on its own motion or that of any party, enter such order as the court determines necessary to give effect to the provisions of this paragraph.

(4) With respect to any function transferred by this Act, reference in any other Federal law to the Secretary of Health, Education, and Welfare shall be deemed, after the effective date of such transfer, to be a reference to the Board. (5) Orders and actions of the Board in the exercise of functions transferred by this Act shall be subject to judicial review to the same extent and in the same manner as if such orders and actions had been made or taken by the Secretary of Health, Education, and Welfare. Any statutory requirement relating to notice, hearings, action upon the record, or administrative review that apply to any function transferred by this Act shall apply to the exercise of such function by the Board.

(6) In the exercise of the functions transferred by this Act, the Board shall have the same authority as that vested in the Secretary of Health, Education, and Welfare immediately preceding such transfer, and the Board's actions in exercising such functions shall have the same force and effect as when exercised by the Secretary of Health, Education, and Welfare.

(d) Nothing in this Act shall affect the applicability of the provisions of part III of title 5 of the United States Code to the employees of Saint Elizabeths Hospital who are such employees on the date of the certification described in subsection (a). Section 422 (3) of the Act of December 24, 1973 (Public Law 93–198) shall not apply to the employees of Saint Elizabeths Hospital.

RESPONSIBILITIES OF THE BOARD

SEC. 4. (a) In carrying out its functions under this Act, the Board shall(1) take such action as may be necessary to insure that quality mental health treatment is provided by Saint Elizabeths Hospital and to achieve full and unconditional accreditation for Saint Elizabeths Hospital;

(2) strive for integration of services for the mentally ill in the District of Columbia so that resources are not wasted and so that truly comprehensive treatment programs are achieved;

(3) to the maximum extent feasible, place responsibility for setting priorities for mental health programs operated by Saint Elizabeths Hospital in community groups;