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.