BILL ANALYSIS


                                                        H.B. 2032
                                            By: Uher (Armbrister)
                                                    State Affairs
                                                         05-22-95
                              Senate Committee Report (Unamended)
BACKGROUND

Currently, public medical and dental schools are not authorized to
offer retirement incentives and are restricted by state purchasing
regulations which limit the ability to implement cost savings
purchasing plans.

PURPOSE

As proposed, H.B. 2032 authorizes medical and dental units of
public institutions of higher education to offer retirement
incentives and to have more flexibility in making purchasing
decisions.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 51Z, Education Code, by adding Sections
51.932 and 51.933, as follows:

     Sec. 51.932.  RETIREMENT INCENTIVES. (a)  Authorizes a medical
     and dental unit (unit) to offer a retirement incentive to an
     employee of the unit who is eligible to retire under Title 8C,
     Government Code.
     
     (b)  Requires a unit offering a retirement incentive plan to
       file the plan with the Legislative Budget Board not later
       than the 61st day before the date the plan is implemented
       and to provide the board with any information concerning the
       plan required by the board.
       
       (c)  Prohibits a unit from rehiring an employee receiving a
       retirement incentive under this section without the specific
       approval of the president of the unit.  Prohibits the
       president from delegating this responsibility to any other
       employee of the unit.
       
       (d)  Requires a retirement incentive offered to an employee
       by a unit under this section to be paid from institutional
       funds or hospital or clinic fees.
       
       (e)  Provides that a retirement incentive paid by a unit to
       an employee is not subject to any provision of state law
       that entitles the employee to benefits based on salary or
       compensation, including contributions under Title 8C,
       Government Code.
       
       (f)  Defines "institutional funds" and "medical and dental
       unit."
       
       Sec. 51.933.  ACQUISITION OF GOODS AND SERVICES.  (a) 
     Authorizes a unit to acquire goods or services by the method
     that provides the best value to the unit.
     
     (b)  Sets forth the criteria a unit is required to consider
       in determining what is the best value to the unit.
       
       (c)  Authorizes the state auditor to audit purchases of
       goods or services by a unit.
       
       (d)  Provides that to the extent of any conflict, this
       section prevails over any other law except a law or rule
       relating to contracting with historically underutilized
       businesses.
       
       (d)  Defines "medical and dental unit."
       
       (f)  Provides that this section expires September 1, 1999.
       
SECTION 2. Authorizes the Legislative Audit Committee (LAC) to
report to the 76th Legislature on the purchasing operations of a
unit not later than February 1, 1999.  Authorizes the LAC to hire
an independent firm to prepare the report.  Requires the unit to
cooperate with the firm and to bear the costs of the study as
determined by LAC.

SECTION 3. Emergency clause.
           Effective date: upon passage.