(c) Prior to entering into contracts for the provision of community support services with providers of services or local governmental units, the Office of Mental Health and the local governmental unit shall consider the following:

1. (1) the service needs of seriously and chronically mentally ill individuals in the geographical area in which the community support services program is located;
2. (2) the capacity of the program to meet identified service needs;
3. (3) the current availability of services for seriously and chronically mentally ill individuals in the area, including the special needs of ethnic minorities and non-English speaking mentally ill individuals;
4. (4) the extent to which community support services authorized by the contract will be integrated with other available services in the area to more effectively maintain seriously and chronically mentally ill individuals in the community;
5. (5) the availability of resources for such services;
6. (6) the extent to which the community support services authorized by the contract are consistent with and integrated with the local government plan of the geographical area to be served; and
7. (7) the extent to which such contracts conform with the minimum contractual requirements as established by the commissioner.

(d) The Office of Mental Health shall be responsible for entering into direct contracts with the providers or services other than the local governmental unit in areas in which the local governmental unit has elected to participate in the community support services program, after the approval of the local government plan and the allocation of State aid, when the commissioner has determined that:

1. (1) such direct contracts are necessary to assure that additional community support services are available for eligible individuals; and
2. (2) such direct contracts are necessary for eligible individuals whose mental health needs have not been sufficiently addressed.

(g) The appeals process shall be in accordance with the following:

1. (1) Upon receipt of notification of the intent of the Office of Mental Health to contract directly with a provider of services, the director of the local governmental unit shall have 30 days to appeal in writing the decision to enter into a direct contract.
2. (2) The director of the local governmental unit must demonstrate that current services within the jurisdiction of the local governmental unit are adequate to meet the needs of the community support services eligible population, including the needs to be met by the proposed direct contract.
3. (3) Upon receipt of the written appeal from the director of the local governmental unit, the commissioner shall have 30 days in which to notify the director in writing that the appeal is approved or disapproved.