Creates the position of the legislative state hospital authority who will serve as a consultant to the legislature on funding and policy matters related to eastern state hospital and western state hospital and as an oversight authority over the operations and management of eastern state hospital and western state hospital.

Requires the legislative state hospital authority to monitor the operations of eastern state hospital and western state hospital.

Creates the joint select committee on state hospital oversight to: (1) Review candidates and contract for the services of a legislative state hospital authority;

(2) Receive reports from the legislative state hospital authority regarding the operations of eastern state hospital and western state hospital;

(3) Submit specific investigative inquiries to the legislative state hospital authority; and

(4) Make recommendations for legislative changes based on the legislative state hospital authority's findings and recommendations.