{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/37.2-508.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/37.2-508.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/37.2-508.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/37.2-508.html"}],"law_id":61165,"edition_id":1,"section_id":61165,"structure_id":13299,"section_number":"37.2-508","catch_line":"Performance contract for mental health, developmental, and substance abuse services","history":"1968, c. 477, \u00a7 37.1-198; 1970, c. 346; 1972, c. 498; 1976, c. 671; 1980, c. 582; 1986, c. 176; 1998, c. 680; 2005, cc. 75, 716; 2012, cc. 476, 507, 805, 836; 2023, cc. 484, 754, 790.","full_text":"A\n\nThe Department shall develop and initiate negotiation of the performance contracts through which it provides funds to community services boards to accomplish the purposes set forth in this chapter. In the case of operating boards, the Department may, notwithstanding any provision of law to the contrary, disburse state and federal funds appropriated to it for mental health, developmental, or substance abuse services directly to the operating board, when that operating board is authorized by the governing body of each city or county that established it to receive such funds. Six months prior to the end of an existing contract or, if no contract exists, six months prior to the beginning of each fiscal year, the Department shall make available to the public the standard performance contract form that it intends to use as the performance contract for that fiscal year and solicit public comments for a period of 60 days. Such contracts shall be for a fixed term and shall provide for annual renewal by the Board if the term exceeds one year.B\n\nAny community services board may apply for the assistance provided in this chapter by submitting to the Department its proposed performance contract together with (i) the approval of its board of directors for operating and administrative policy boards or the comments of the local government department’s policy-advisory board and (ii) the approval of the contract by formal vote of the governing body of each city or county that established it. The community services board shall make its proposed performance contract available for public review and solicit public comments for a period of 30 days prior to submitting its proposed contract for the approval of its board of directors for operating and administrative policy boards or the comments of the local government department’s policy-advisory board. To avoid disruptions in service continuity and allow sufficient time to complete public review and comment about the contract and negotiation and approval of the contract, the Department may provide semi-monthly payments of state-controlled funds to the community services board. If the governing body of each city or county does not approve the proposed performance contract by September 30 of each year, the performance contract shall be deemed approved or renewed.C\n\nThe performance contract shall:1\n\nDelineate the responsibilities of the Department and the community services board;2\n\nSpecify conditions that must be met for the receipt of state-controlled funds;3\n\nIdentify the groups of individuals to be served with state-controlled funds;4\n\nSet forth specific goals and objectives related to the delivery of services to individuals with mental illness, developmental disabilities, or substance use disorders that are consistent with the purposes set forth in § 37.2-500;5\n\nContain specific relevant, and measurable performance measures to assess the experiences and outcomes of individuals receiving services through community services boards;6\n\nContain relevant benchmarks and monitoring activities for each performance measure;7\n\nContain mechanisms that have been identified or developed jointly by the Department and community services board and that will be employed collaboratively by the community services board and the state hospital to manage the utilization of state hospital beds;8\n\nContain provisions that enable the Department to enforce the performance contract in the event that the community services board fails to substantially comply with the requirements of its performance contract, which shall include:\n\t\t\t\ta. Provisions to ensure that the executive director and chairman of the community services board are notified when the community services board fails to substantially comply with the requirements of its performance contract;\n\t\t\t\tb. A remediation process to allow the community services board, after failing to substantially comply with its performance contract, to come into substantial compliance with its performance contract;\n\t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or termination of all or part of a performance contract in accordance with the provisions of subsection E in the event that the community services board fails to come into substantial compliance with the provisions of its performance contract despite utilization of the remediation process described in subdivision b; and\n\t\t\t\td. Provisions for appeal of an enforcement action undertaken by the Department; and9\n\nInclude requirements for the community services board to report specific information about (i) its revenues, costs, and services provided; (ii) individuals served; and (iii) any other information deemed necessary by the Department, which shall be displayed in a consistent, comparable format developed by the Department.D\n\nThe Department shall develop and implement a process for regular, ongoing monitoring of the performance of community services boards to ensure compliance with the requirements of performance contracts entered into pursuant to this section.E\n\nIf a community services board fails to substantially comply with the requirements of its performance contract, the Department shall utilize the remediation process described in the performance contract to allow the community services board to come into substantial compliance. The Department shall notify the Board and the chairman of the community services board upon initiation of the remediation process and provide to the Board and chairman regular updates regarding the community services board’s progress toward coming into substantial compliance.\n\t\t\tIf a community services board fails to come into substantial compliance after utilization of the remediation process, the Department shall, after affording the community services board an adequate opportunity to use the appeal process described in the performance contract, terminate all or a portion of the performance contract.F\n\nUpon terminating all or a portion of a performance contract pursuant to subsection E, the Department may, using the state-controlled resources associated with that performance contract and after consulting with the governing body of each city or county that established the community services board that was a party to the performance contract, negotiate a performance contract with another community services board, a behavioral health authority, or a private nonprofit or for-profit organization or organizations to obtain services that were the subject of the terminated performance contract.G\n\nNo community services board shall be eligible to receive state-controlled funds for mental health, developmental, or substance abuse services after September 30 of each year unless (i) its performance contract has been approved or renewed by the governing body of each city or county that established it and by the Department; (ii) it provides service, cost, and revenue data and information, and aggregate and individual data and information about individuals receiving services, notwithstanding the provisions of § 37.2-400 or any regulations adopted thereunder, to the Department in the format prescribed by the Department; (iii) it uses standardized cost accounting and financial management practices approved by the Department, and (iv) the community services board is in substantial compliance with its performance contract or is making progress to become in substantial compliance through the Department’s remediation process.","order_by":null,"text":{"0":{"id":223553,"text":"The Department shall develop and initiate negotiation of the performance contracts through which it provides funds to community services boards to accomplish the purposes set forth in this chapter. In the case of operating boards, the Department may, notwithstanding any provision of law to the contrary, disburse state and federal funds appropriated to it for mental health, developmental, or substance abuse services directly to the operating board, when that operating board is authorized by the governing body of each city or county that established it to receive such funds. Six months prior to the end of an existing contract or, if no contract exists, six months prior to the beginning of each fiscal year, the Department shall make available to the public the standard performance contract form that it intends to use as the performance contract for that fiscal year and solicit public comments for a period of 60 days. Such contracts shall be for a fixed term and shall provide for annual renewal by the Board if the term exceeds one year.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":223554,"text":"Any community services board may apply for the assistance provided in this chapter by submitting to the Department its proposed performance contract together with (i) the approval of its board of directors for operating and administrative policy boards or the comments of the local government department’s policy-advisory board and (ii) the approval of the contract by formal vote of the governing body of each city or county that established it. The community services board shall make its proposed performance contract available for public review and solicit public comments for a period of 30 days prior to submitting its proposed contract for the approval of its board of directors for operating and administrative policy boards or the comments of the local government department’s policy-advisory board. To avoid disruptions in service continuity and allow sufficient time to complete public review and comment about the contract and negotiation and approval of the contract, the Department may provide semi-monthly payments of state-controlled funds to the community services board. If the governing body of each city or county does not approve the proposed performance contract by September 30 of each year, the performance contract shall be deemed approved or renewed.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":223555,"text":"The performance contract shall:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":223556,"text":"Delineate the responsibilities of the Department and the community services board;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":223557,"text":"Specify conditions that must be met for the receipt of state-controlled funds;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":223558,"text":"Identify the groups of individuals to be served with state-controlled funds;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":223559,"text":"Set forth specific goals and objectives related to the delivery of services to individuals with mental illness, developmental disabilities, or substance use disorders that are consistent with the purposes set forth in § 37.2-500;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"7":{"id":223560,"text":"Contain specific relevant, and measurable performance measures to assess the experiences and outcomes of individuals receiving services through community services boards;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"8":{"id":223561,"text":"Contain relevant benchmarks and monitoring activities for each performance measure;","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"9":{"id":223562,"text":"Contain mechanisms that have been identified or developed jointly by the Department and community services board and that will be employed collaboratively by the community services board and the state hospital to manage the utilization of state hospital beds;","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"C8"},"10":{"id":223563,"text":"Contain provisions that enable the Department to enforce the performance contract in the event that the community services board fails to substantially comply with the requirements of its performance contract, which shall include:\n\t\t\t\ta. Provisions to ensure that the executive director and chairman of the community services board are notified when the community services board fails to substantially comply with the requirements of its performance contract;\n\t\t\t\tb. A remediation process to allow the community services board, after failing to substantially comply with its performance contract, to come into substantial compliance with its performance contract;\n\t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or termination of all or part of a performance contract in accordance with the provisions of subsection E in the event that the community services board fails to come into substantial compliance with the provisions of its performance contract despite utilization of the remediation process described in subdivision b; and\n\t\t\t\td. Provisions for appeal of an enforcement action undertaken by the Department; and","type":"section","prefixes":["C","8"],"prefix":"8","entire_prefix":"C8","prefix_anchor":"C8","level":2,"prior_prefix":"C7","next_prefix":"C9"},"11":{"id":223564,"text":"Include requirements for the community services board to report specific information about (i) its revenues, costs, and services provided; (ii) individuals served; and (iii) any other information deemed necessary by the Department, which shall be displayed in a consistent, comparable format developed by the Department.","type":"section","prefixes":["C","9"],"prefix":"9","entire_prefix":"C9","prefix_anchor":"C9","level":2,"prior_prefix":"C8","next_prefix":"D"},"12":{"id":223565,"text":"The Department shall develop and implement a process for regular, ongoing monitoring of the performance of community services boards to ensure compliance with the requirements of performance contracts entered into pursuant to this section.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C9","next_prefix":"E"},"13":{"id":223566,"text":"If a community services board fails to substantially comply with the requirements of its performance contract, the Department shall utilize the remediation process described in the performance contract to allow the community services board to come into substantial compliance. The Department shall notify the Board and the chairman of the community services board upon initiation of the remediation process and provide to the Board and chairman regular updates regarding the community services board’s progress toward coming into substantial compliance.\n\t\t\tIf a community services board fails to come into substantial compliance after utilization of the remediation process, the Department shall, after affording the community services board an adequate opportunity to use the appeal process described in the performance contract, terminate all or a portion of the performance contract.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"14":{"id":223567,"text":"Upon terminating all or a portion of a performance contract pursuant to subsection E, the Department may, using the state-controlled resources associated with that performance contract and after consulting with the governing body of each city or county that established the community services board that was a party to the performance contract, negotiate a performance contract with another community services board, a behavioral health authority, or a private nonprofit or for-profit organization or organizations to obtain services that were the subject of the terminated performance contract.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"15":{"id":223568,"text":"No community services board shall be eligible to receive state-controlled funds for mental health, developmental, or substance abuse services after September 30 of each year unless (i) its performance contract has been approved or renewed by the governing body of each city or county that established it and by the Department; (ii) it provides service, cost, and revenue data and information, and aggregate and individual data and information about individuals receiving services, notwithstanding the provisions of § 37.2-400 or any regulations adopted thereunder, to the Department in the format prescribed by the Department; (iii) it uses standardized cost accounting and financial management practices approved by the Department, and (iv) the community services board is in substantial compliance with its performance contract or is making progress to become in substantial compliance through the Department’s remediation process.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":13299,"edition_id":1,"name":"Community Services Boards","identifier":"5","label":"chapter","depth":3,"order_by":1,"parent_id":13087,"metadata":{},"date_created":"2026-06-26 03:44:36","date_modified":"2026-06-26 03:44:36","permalink":{"id":210025,"object_type":"structure","relational_id":13299,"identifier":"5","token":"37.2\/II\/5","url":"\/37.2\/II\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13087,"edition_id":1,"name":"Behavioral Health and Developmental Services","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12843,"metadata":{},"date_created":"2026-06-26 03:44:16","date_modified":"2026-06-26 03:44:16","permalink":{"id":210023,"object_type":"structure","relational_id":13087,"identifier":"II","token":"37.2\/II","url":"\/37.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12843,"edition_id":1,"name":"Behavioral Health and Developmental Services","identifier":"37.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":209673,"object_type":"structure","relational_id":12843,"identifier":"37.2","token":"37.2","url":"\/37.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60895,"structure_id":13299,"section_number":"37.2-500","catch_line":"Purpose; community services board; services to be provided","url":"\/37.2-500\/","token":"37.2\/II\/5\/37.2-500","metadata":false},{"id":54288,"structure_id":13299,"section_number":"37.2-501","catch_line":"Community services board; appointment; membership; duties of fiscal agent","url":"\/37.2-501\/","token":"37.2\/II\/5\/37.2-501","metadata":false},{"id":72591,"structure_id":13299,"section_number":"37.2-502","catch_line":"Community services board members; term of office; vacancies; removal","url":"\/37.2-502\/","token":"37.2\/II\/5\/37.2-502","metadata":false},{"id":73882,"structure_id":13299,"section_number":"37.2-503","catch_line":"Compensation of community services board members","url":"\/37.2-503\/","token":"37.2\/II\/5\/37.2-503","metadata":false},{"id":65222,"structure_id":13299,"section_number":"37.2-504","catch_line":"Community services boards; local government departments; powers and duties","url":"\/37.2-504\/","token":"37.2\/II\/5\/37.2-504","metadata":false},{"id":62018,"structure_id":13299,"section_number":"37.2-505","catch_line":"Coordination of services for preadmission screening and discharge planning","url":"\/37.2-505\/","token":"37.2\/II\/5\/37.2-505","metadata":false},{"id":75347,"structure_id":13299,"section_number":"37.2-506","catch_line":"Background checks required; services for children and developmental services","url":"\/37.2-506\/","token":"37.2\/II\/5\/37.2-506","metadata":false},{"id":61726,"structure_id":13299,"section_number":"37.2-506.1","catch_line":"Background checks required; adult substance abuse and mental health services","url":"\/37.2-506.1\/","token":"37.2\/II\/5\/37.2-506.1","metadata":false},{"id":63221,"structure_id":13299,"section_number":"37.2-507","catch_line":"Repealed","url":"\/37.2-507\/","token":"37.2\/II\/5\/37.2-507","metadata":false},{"id":61165,"structure_id":13299,"section_number":"37.2-508","catch_line":"Performance contract for mental health, developmental, and substance abuse services","url":"\/37.2-508\/","token":"37.2\/II\/5\/37.2-508","metadata":false},{"id":77016,"structure_id":13299,"section_number":"37.2-509","catch_line":"Mental health, developmental, and substance abuse services; allocation of funds by Department; reduction of funds","url":"\/37.2-509\/","token":"37.2\/II\/5\/37.2-509","metadata":false},{"id":76062,"structure_id":13299,"section_number":"37.2-510","catch_line":"Community services board; withdrawal of county or city","url":"\/37.2-510\/","token":"37.2\/II\/5\/37.2-510","metadata":false},{"id":73736,"structure_id":13299,"section_number":"37.2-511","catch_line":"Liability for expenses of services","url":"\/37.2-511\/","token":"37.2\/II\/5\/37.2-511","metadata":false},{"id":86688,"structure_id":13299,"section_number":"37.2-512","catch_line":"Authority to enter into joint agreements","url":"\/37.2-512\/","token":"37.2\/II\/5\/37.2-512","metadata":false},{"id":72496,"structure_id":13299,"section_number":"37.2-513","catch_line":"Information about services to be made available to courts","url":"\/37.2-513\/","token":"37.2\/II\/5\/37.2-513","metadata":false}],"previous_section":{"id":63221,"structure_id":13299,"section_number":"37.2-507","catch_line":"Repealed","url":"\/37.2-507\/","token":"37.2\/II\/5\/37.2-507","metadata":false},"next_section":{"id":77016,"structure_id":13299,"section_number":"37.2-509","catch_line":"Mental health, developmental, and substance abuse services; allocation of funds by Department; reduction of funds","url":"\/37.2-509\/","token":"37.2\/II\/5\/37.2-509","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/37.2-508\/","history_text":"

This law was first created in 1968. The record of its establishment is cataloged in chapter 477 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1968 \u201cActs\u201d aren\u2019t available online. It has been modified 9 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1970, chapter 346; in 1972, chapter 498; in 1976, chapter 671; in 1980, chapter 582; in 1986, chapter 176; in 1998, chapter 680<\/a>; in 2005, chapters 75<\/a> and 716<\/a>; in 2012, chapters 476<\/a>, 507<\/a>, 805<\/a>, and 836<\/a>; in 2023, chapters 484<\/a>, 754<\/a>, and 790<\/a>.<\/p>","references":[{"id":62804,"section_number":"37.2-203","catch_line":"Powers and duties of Board","order_by":null,"url":"\/37.2-203\/"},{"id":65222,"section_number":"37.2-504","catch_line":"Community services boards; local government departments; powers and duties","order_by":null,"url":"\/37.2-504\/"},{"id":86688,"section_number":"37.2-512","catch_line":"Authority to enter into joint agreements","order_by":null,"url":"\/37.2-512\/"}],"refers_to":[{"id":58222,"section_number":"37.2-400","catch_line":"Rights of individuals receiving services","order_by":null,"url":"\/37.2-400\/"},{"id":60895,"section_number":"37.2-500","catch_line":"Purpose; community services board; services to be provided","order_by":null,"url":"\/37.2-500\/"}],"permalink":{"id":210063,"object_type":"law","relational_id":61165,"identifier":"37.2-508","token":"37.2\/II\/5\/37.2-508","url":"\/37.2-508\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/37.2-508\/","token":"37.2\/II\/5\/37.2-508","dublin_core":{"Title":"Performance contract for mental health, developmental, and substance abuse services","Type":"Text","Format":"text\/html","Identifier":"\u00a7 37.2-508","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Department<\/span> shall develop and initiate negotiation of the performance contracts<\/span> through which it provides funds to community services boards<\/span> to accomplish the purposes set forth in this chapter. In the case of operating boards<\/span>, the Department<\/span> may, notwithstanding any provision of law<\/span> to the contrary, disburse state<\/span> and federal funds appropriated to it for mental health, developmental, or substance abuse<\/span> services directly to the operating board<\/span>, when that operating board<\/span> is authorized by the governing body of each city or county that established it to receive such funds. Six months prior to the end of an existing contract or, if no contract exists, six months prior to the beginning of each fiscal year, the Department<\/span> shall make available to the public the standard performance contract<\/span> form that it intends to use as the performance contract<\/span> for that fiscal year and solicit public comments for a period of 60 days. Such contracts shall be for a fixed term and shall provide for annual renewal by the Board if the term exceeds one year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any community services board<\/span> may apply for the assistance provided in this chapter by submitting to the Department<\/span> its proposed performance contract<\/span> together with (i) the approval of its board of directors for operating and administrative policy boards<\/span> or the comments of the local government department<\/span>’s policy-advisory board<\/span> and (ii) the approval of the contract by formal vote of the governing body of each city or county that established it. The community services board<\/span> shall make its proposed performance contract<\/span> available for public review and solicit public comments for a period of 30 days prior to submitting its proposed contract for the approval of its board of directors for operating and administrative policy boards<\/span> or the comments of the local government department<\/span>’s policy-advisory board<\/span>. To avoid disruptions in service continuity and allow sufficient time to complete public review and comment about the contract and negotiation and approval of the contract, the Department<\/span> may provide semi-monthly payments of state<\/span>-controlled funds to the community services board<\/span>. If the governing body of each city or county does not approve the proposed performance contract<\/span> by September 30 of each year, the performance contract<\/span> shall be deemed approved or renewed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The performance contract<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Delineate the responsibilities of the Department<\/span> and the community services board<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Specify conditions that must be met for the receipt of state<\/span>-controlled funds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Identify the groups of individuals<\/span> to be served with state<\/span>-controlled funds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Set forth specific goals and objectives related to the delivery of services to individuals<\/span> with mental illness<\/span>, developmental disabilities, or substance use disorders that are consistent with the purposes set forth in § 37.2-500<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Contain specific relevant, and measurable performance measures to assess the experiences and outcomes of individuals<\/span> receiving services through community services boards<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Contain relevant benchmarks and monitoring activities for each performance measure; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Contain mechanisms that have been identified or developed jointly by the Department<\/span> and community services board<\/span> and that will be employed collaboratively by the community services board<\/span> and the state hospital<\/span> to manage the utilization of state hospital<\/span> beds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Contain provisions that enable the Department<\/span> to enforce the performance contract<\/span> in the event that the community services board<\/span> fails to substantially comply with the requirements of its performance contract<\/span>, which shall include:\n\t\t\t\ta. Provisions to ensure that the executive director and chairman of the community services board<\/span> are notified when the community services board<\/span> fails to substantially comply with the requirements of its performance contract<\/span>;\n\t\t\t\tb. A remediation process to allow the community services board<\/span>, after failing to substantially comply with its performance contract<\/span>, to come into substantial compliance with its performance contract<\/span>;\n\t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or termination of all or part of a performance contract<\/span> in accordance with the provisions of subsection E in the event that the community services board<\/span> fails to come into substantial compliance with the provisions of its performance contract<\/span> despite utilization of the remediation process described in subdivision b; and\n\t\t\t\td. Provisions for appeal<\/span> of an enforcement action undertaken by the Department<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Include requirements for the community services board<\/span> to report specific information about (i) its revenues, costs, and services provided; (ii) individuals<\/span> served; and (iii) any other information deemed necessary by the Department<\/span>, which shall be displayed in a consistent, comparable format developed by the Department<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Department<\/span> shall develop and implement a process for regular, ongoing monitoring of the performance of community services boards<\/span> to ensure compliance with the requirements of performance contracts<\/span> entered into pursuant to this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If a community services board<\/span> fails to substantially comply with the requirements of its performance contract<\/span>, the Department<\/span> shall utilize the remediation process described in the performance contract<\/span> to allow the community services board<\/span> to come into substantial compliance. The Department<\/span> shall notify the Board and the chairman of the community services board<\/span> upon initiation of the remediation process and provide to the Board and chairman regular updates regarding the community services board<\/span>’s progress toward coming into substantial compliance.\n\t\t\tIf a community services board<\/span> fails to come into substantial compliance after utilization of the remediation process, the Department<\/span> shall, after affording the community services board<\/span> an adequate opportunity to use the appeal<\/span> process described in the performance contract<\/span>, terminate all or a portion of the performance contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Upon terminating all or a portion of a performance contract<\/span> pursuant to subsection E, the Department<\/span> may, using the state-controlled resources associated with that performance contract<\/span> and after consulting with the governing body of each city or county that established the community services board<\/span> that was a party<\/span> to the performance contract<\/span>, negotiate a performance contract<\/span> with another community services board<\/span>, a behavioral health authority<\/span>, or a private nonprofit or for-profit organization or organizations to obtain services that were the subject of the terminated performance contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> No community services board<\/span> shall be eligible to receive state-controlled funds for mental health, developmental, or substance abuse<\/span> services after September 30 of each year unless (i) its performance contract<\/span> has been approved or renewed by the governing body of each city or county that established it and by the Department<\/span>; (ii) it provides service, cost, and revenue data and information, and aggregate and individual<\/span> data and information about individuals<\/span> receiving services, notwithstanding the provisions of § 37.2-400<\/a> or any regulations adopted thereunder, to the Department<\/span> in the format prescribed by the Department<\/span>; (iii) it uses standardized cost accounting and financial management practices approved by the Department<\/span>, and (iv) the community services board<\/span> is in substantial compliance with its performance contract<\/span> or is making progress to become in substantial compliance through the Department<\/span>’s remediation process. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPERFORMANCE CONTRACT FOR MENTAL HEALTH, DEVELOPMENTAL, AND SUBSTANCE ABUSE\nSERVICES (\u00a7 37.2-508)\n\nA. The Department shall develop and initiate negotiation of the performance\ncontracts through which it provides funds to community services boards to\naccomplish the purposes set forth in this chapter. In the case of operating\nboards, the Department may, notwithstanding any provision of law to the\ncontrary, disburse state and federal funds appropriated to it for mental health,\ndevelopmental, or substance abuse services directly to the operating board, when\nthat operating board is authorized by the governing body of each city or county\nthat established it to receive such funds. Six months prior to the end of an\nexisting contract or, if no contract exists, six months prior to the beginning\nof each fiscal year, the Department shall make available to the public the\nstandard performance contract form that it intends to use as the performance\ncontract for that fiscal year and solicit public comments for a period of 60\ndays. Such contracts shall be for a fixed term and shall provide for annual\nrenewal by the Board if the term exceeds one year.\n\nB. Any community services board may apply for the assistance provided in this\nchapter by submitting to the Department its proposed performance contract\ntogether with (i) the approval of its board of directors for operating and\nadministrative policy boards or the comments of the local government\ndepartment’s policy-advisory board and (ii) the approval of the contract\nby formal vote of the governing body of each city or county that established it.\nThe community services board shall make its proposed performance contract\navailable for public review and solicit public comments for a period of 30 days\nprior to submitting its proposed contract for the approval of its board of\ndirectors for operating and administrative policy boards or the comments of the\nlocal government department’s policy-advisory board. To avoid disruptions\nin service continuity and allow sufficient time to complete public review and\ncomment about the contract and negotiation and approval of the contract, the\nDepartment may provide semi-monthly payments of state-controlled funds to the\ncommunity services board. If the governing body of each city or county does not\napprove the proposed performance contract by September 30 of each year, the\nperformance contract shall be deemed approved or renewed.\n\nC. The performance contract shall:\n\n 1. Delineate the responsibilities of the Department and the community services\n board;\n\n 2. Specify conditions that must be met for the receipt of state-controlled\n funds;\n\n 3. Identify the groups of individuals to be served with state-controlled\n funds;\n\n 4. Set forth specific goals and objectives related to the delivery of services\n to individuals with mental illness, developmental disabilities, or substance\n use disorders that are consistent with the purposes set forth in §\n 37.2-500;\n\n 5. Contain specific relevant, and measurable performance measures to assess\n the experiences and outcomes of individuals receiving services through\n community services boards;\n\n 6. Contain relevant benchmarks and monitoring activities for each performance\n measure;\n\n 7. Contain mechanisms that have been identified or developed jointly by the\n Department and community services board and that will be employed\n collaboratively by the community services board and the state hospital to\n manage the utilization of state hospital beds;\n\n 8. Contain provisions that enable the Department to enforce the performance\n contract in the event that the community services board fails to substantially\n comply with the requirements of its performance contract, which shall include:\n \t\t\t\ta. Provisions to ensure that the executive director and chairman of the\n community services board are notified when the community services board fails\n to substantially comply with the requirements of its performance contract;\n \t\t\t\tb. A remediation process to allow the community services board, after\n failing to substantially comply with its performance contract, to come into\n substantial compliance with its performance contract;\n \t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or\n termination of all or part of a performance contract in accordance with the\n provisions of subsection E in the event that the community services board\n fails to come into substantial compliance with the provisions of its\n performance contract despite utilization of the remediation process described\n in subdivision b; and\n \t\t\t\td. Provisions for appeal of an enforcement action undertaken by the\n Department; and\n\n 9. Include requirements for the community services board to report specific\n information about (i) its revenues, costs, and services provided; (ii)\n individuals served; and (iii) any other information deemed necessary by the\n Department, which shall be displayed in a consistent, comparable format\n developed by the Department.\n\nD. The Department shall develop and implement a process for regular, ongoing\nmonitoring of the performance of community services boards to ensure compliance\nwith the requirements of performance contracts entered into pursuant to this\nsection.\n\nE. If a community services board fails to substantially comply with the\nrequirements of its performance contract, the Department shall utilize the\nremediation process described in the performance contract to allow the community\nservices board to come into substantial compliance. The Department shall notify\nthe Board and the chairman of the community services board upon initiation of\nthe remediation process and provide to the Board and chairman regular updates\nregarding the community services board’s progress toward coming into\nsubstantial compliance.\n\t\t\tIf a community services board fails to come into substantial compliance after\nutilization of the remediation process, the Department shall, after affording\nthe community services board an adequate opportunity to use the appeal process\ndescribed in the performance contract, terminate all or a portion of the\nperformance contract.\n\nF. Upon terminating all or a portion of a performance contract pursuant to\nsubsection E, the Department may, using the state-controlled resources\nassociated with that performance contract and after consulting with the\ngoverning body of each city or county that established the community services\nboard that was a party to the performance contract, negotiate a performance\ncontract with another community services board, a behavioral health authority,\nor a private nonprofit or for-profit organization or organizations to obtain\nservices that were the subject of the terminated performance contract.\n\nG. No community services board shall be eligible to receive state-controlled\nfunds for mental health, developmental, or substance abuse services after\nSeptember 30 of each year unless (i) its performance contract has been approved\nor renewed by the governing body of each city or county that established it and\nby the Department; (ii) it provides service, cost, and revenue data and\ninformation, and aggregate and individual data and information about individuals\nreceiving services, notwithstanding the provisions of § 37.2-400 or any\nregulations adopted thereunder, to the Department in the format prescribed by\nthe Department; (iii) it uses standardized cost accounting and financial\nmanagement practices approved by the Department, and (iv) the community services\nboard is in substantial compliance with its performance contract or is making\nprogress to become in substantial compliance through the Department’s\nremediation process.\n\nHISTORY: 1968, c. 477, \u00a7 37.1-198; 1970, c. 346; 1972, c. 498; 1976, c. 671;\n1980, c. 582; 1986, c. 176; 1998, c. 680; 2005, cc. 75, 716; 2012, cc. 476, 507,\n805, 836; 2023, cc. 484, 754, 790.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}