BILL ANALYSIS


                                                        H.B. 2658
                                        By: Hilderbran (Galloway)
                                        Health and Human Services
                                                         05-17-95
                              Senate Committee Report (Unamended)
BACKGROUND

In the late 1970s, Texas adopted the policy of encouraging and
assisting blind and severely disabled persons to achieve maximum
independence by engaging them in productive employment activities. 
To implement this policy, the state created a program whereby
products and services performed by people with disabilities would
receive special treatment in the purchasing procedures of state
agencies.  The Texas Committee on Purchases of Products and
Services of Blind and Severely Disabled Persons was established to
determine the fair market value of the products and services.

PURPOSE

As proposed, H.B. 2658 creates the Texas Council on Purchasing from
People with Disabilities, to replace the Committee on Purchases of
Products and Services of Blind and Severely Disabled Persons.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Council on Purchasing from People with Disabilities
under SECTION 1 (Section 122.013(a), Human Resources Code) of this
bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 122, Human Resources Code, as follows:

   CHAPTER 122.  New heading: TEXAS COUNCIL ON PURCHASING FROM
PEOPLE                     WITH DISABILITIES

     Sec. 122.001.  PURPOSE.  Declares that the purpose of this
     chapter is, among others, to further the state's policy of
     encouraging and assisting persons with disabilities to achieve
     maximum personal independence by engaging in useful and
     productive employment activities.  Makes a nonsubstantive
     change.
     
     Sec. 122.002.  DEFINITIONS.  Defines "central nonprofit
     agency," "commission," "community rehabilitation program,"
     "council," and "disability."
     
     Sec. 122.003.  New heading: TEXAS COUNCIL ON PURCHASING FROM
     PEOPLE WITH DISABILITIES.  (a) Declares that the Texas Council
     on Purchasing from People with Disabilities (council), in
     place of the Texas Committee on Purchases of Products and
     Services of Blind and Severely Disabled Persons (committee),
     is composed of three private citizens conversant with the
     employment needs of persons with disabilities, including
     blindness, and with current experience in the pricing and
     marketing of goods and services; three representatives of
     community rehabilitation programs that represent different
     disability groups and that provide or seek to provide products
     produced or services performed by persons with disabilities;
     and three representatives of state agencies or political
     subdivisions that purchase a significant amount of products
     produced or services performed by persons with disabilities. 
     Deletes certain other members.
     
     (b) Provides that council members serve staggered terms of
       six years with the terms of three members expiring on
       January 31 of each odd-numbered year.  Deletes a provision
       regarding the sharing of the costs of member reimbursement. 
       Makes a conforming change.
       
       (c) Requires the governor to select one council member to
       serve as presiding officer.
       
       (d) Declares that a person is not eligible for appointment
       as a member to the council under Subsection (a)(1) if the
       person or the person's spouse partakes in certain activities
       related to the council.  Deletes a provision regarding a
       member who is unable to attend a meeting.
       
       (e) Prohibits a person from serving as a member of the
       council who is required to register as a lobbyist under
       Chapter 305, Government Code, because of the person's
       activities for compensation on behalf of a profession
       related to the operation of the council.
       
       (f) Requires appointments to the council to be made without
       regard to certain personal characteristics, including
       disability and age.
       
       (g) Provides that it is a ground for removal from the
       council if a member, among other acts, violates a
       prohibition established by Subsection (d) or (e) of this
       section; cannot because of disability or illness discharge
       the member's duties for the substantial part of the term for
       which the member is appointed; or is absent from more than
       half of the regularly scheduled meetings that the member is
       eligible to attend during a calendar year, unless the
       absence is excused by a majority vote of the council.  Makes
       conforming changes.
       
       (h) Makes conforming changes.
       
       (i) Requires the executive director of the General Services
       Commission (executive director), if the executive director
       has knowledge that a potential ground for removal exists, to
       notify the presiding officer of the council.  Requires the
       presiding officer, if the presiding officer is notified or
       has knowledge that a potential ground for removal exists, to
       notify the governor and attorney general.  Requires the
       executive director, if the potential ground for removal
       involves the presiding officer, to notify the governor and
       the attorney general that a potential ground for removal
       exists.
       
       (j) Authorizes the council to establish criteria for the
       recognition and approval of community rehabilitation
       programs.
       
       Sec. 122.004.  INFORMATION RELATING TO STANDARDS OF CONDUCT. 
     Requires the presiding officer of the council or a designee to
     provide the members of the council information regarding their
     qualification for office under this chapter and their
     responsibilities under applicable laws relating to the
     standards of conduct for state officers.
     
     Sec. 122.005.  MEMBER TRAINING.  (a) Requires the member,
     before assuming council duties and being confirmed by the
     senate, to complete at least one course of the training
     program established under this section.
     
     (b) Requires a training program under this section to
       provide certain information to the council member.
       
       Sec. 122.006.  SUNSET PROVISION.  Redesignates existing
     Section 122.003.  Makes conforming changes.
     
     Sec. 122.007.  FAIR MARKET PRICE; PURCHASING PROCEDURES. 
     Redesignates existing Section 122.004.  (a) Requires the
     council to determine the fair market price of products and
     services manufactured and provided by persons with
     disabilities and offered for sale to the various agencies and
     departments of the state and its political subdivisions by a
     community rehabilitation program, rather than certain
     nonprofit agencies.
     
     (b) Requires a subcommittee composed of three council
       members appointed by the presiding officer, rather than the
       chairman, to review the data used to determine fair market
       price.  Makes a conforming change.
       
       (c) Makes conforming changes.
       
       (d) Redesignates existing Subsection (e).  Deletes
       rulemaking authority regarding a central nonprofit agency. 
       Makes a nonsubstantive change.
       
       Sec. 122.008.  PROCUREMENT AT DETERMINED PRICE.  Redesignates
     existing Section 122.005.  Makes conforming changes.
     
     Sec. 122.009.  RECORDS.  Redesignates existing Section
     122.006.  (a) Requires the records of the council and of a
     central nonprofit agency, to the extent that the records
     pertain specifically to state purchases of products and
     services of persons with disabilities, to be made available to
     the inspection of certain persons.  Declares that a document
     that is available for inspection under this subsection is an
     open record for purposes of Chapter 552, Government Code.
     
     (b) Declares that the General Services Commission
       (commission), rather than the Texas Commission for the
       Blind, is the depository for all records concerning the
       council's operations.
       
       (c) Subjects the council to Chapter 552, Government Code.
       
       Sec. 122.010.  COOPERATION WITH DEPARTMENT OF CRIMINAL
     JUSTICE.  Redesignates existing Section 122.007.  Authorizes
     the council to cooperate with the institutional division of
     the Texas Department of Criminal Justice for the purposes of
     this chapter.  Makes conforming changes.
     
     Sec. 122.011.  CORRELATION WITH RELATED FEDERAL PROGRAMS. 
     Redesignates existing Section 122.008.  Makes a conforming
     change.
     
     Sec. 122.012.  New heading: DUTIES OF COMMISSION; INTERAGENCY
     COOPERATION.  Redesignates existing Section 122.009.  (a)
     Requires the commission to provide legal, clerical,
     administrative, and other necessary support to the council in
     accordance with legislative appropriation.
     
     (b) Makes conforming changes.
       
       (c) Prohibits the commission or a state agency from assuming
       the marketing or fiscal responsibility for the expense of
       marketing products and services under the program.
       
       Sec. 122.013.  RULES.  Redesignates existing Section 122.010. 
     Authorizes the council to adopt rules for the implementation,
     extension, administration, or improvement of the program
     authorized by this chapter in accordance with Chapter 2001,
     Government Code.
     
     (b) Requires the commission to provide legal support to
       assist the council in adopting rules under this section. 
       Deletes language regarding approval of the rules.
       
       Sec. 122.014.  PRODUCT SPECIFICATIONS.  Redesignates existing
     Section 122.011.  Makes nonsubstantive changes.
     
     Sec. 122.015.  DETERMINATIONS OF FAIR MARKET VALUE. 
     Redesignates existing Section 122.012.  (a) Requires the
     subcommittee established under Section 122.007(b) and the
     council, in determining the fair market value of products or
     services offered for sale under this chapter, to consider,
     among other factors, the actual cost of manufacturing the
     product or performing a service at a community rehabilitation
     program, rather than a sheltered workshop.  Makes conforming
     changes.
     
     (b) Provides that the actual cost of manufacturing a product
       or performing a service consists of costs directly
       associated with a contract, and do not include a cost
       associated with an individual's preparation to perform the
       work activity.
       
       (c) Created from existing text.
     Sec. 122.016.  EXCEPTIONS.  Redesignates existing Section
     122.013.  Makes conforming and nonsubstantive changes.
     
     Sec. 122.017.  PROCUREMENT FOR POLITICAL SUBDIVISIONS. 
     Redesignates existing Section 122.014.  Makes conforming
     changes.
     
     Sec. 122.018.  POLITICAL SUBDIVISIONS EXCLUDED.  Redesignates
     existing Section 122.015.  Excludes certain political
     subdivisions from the mandatory application of this chapter. 
     Provides that this chapter does not prohibit a political
     subdivision from acting as a willing buyer outside a bid
     system.  Deletes language regarding the sale of products to a
     willing buyer.
     
     Sec. 122.019.  New heading: CENTRAL NONPROFIT AGENCY. 
     Redesignates existing Section 122.016.  (a) Requires the
     council to contract with a central nonprofit agency to recruit
     and assist community rehabilitation programs in developing and
     submitting applications for the selection of suitable products
     and services, facilitate the distribution of orders among
     qualified community rehabilitation programs, manage and
     coordinate the day-to-day operation of the program, and
     promote increased supported employment opportunities for
     persons with disabilities.  Deletes a provision regarding the
     submission of a budget request.
     
     (b) Authorizes the services of the central nonprofit agency
       to include marketing and marketing support services.  Makes
       a conforming change.
       
       (c) Requires the council to review annually the services
       provided by a central nonprofit agency and the revenues
       required to accomplish the program to determine whether each
       agency's performance complies with contractual
       specifications.  Requires the council to publish in the
       Texas Register by a certain date a request for comment on
       the services of a central nonprofit agency that participates
       in community rehabilitation programs.  Makes a conforming
       change.
       
       (d) Requires the council, at least once a year during each
       two-year period, to review and negotiate the contract with
       a central nonprofit agency.  Requires the council to publish
       notice of the proposed contract in the Texas Register by a
       certain date.  Makes a conforming change.
       
       (e) Requires the maximum management fee rate charged by a
       central nonprofit agency for its services to the program to
       be computed as a percentage of the selling price of the
       product or the contract price of a service, to be included
       in the selling or contract price, to be paid at the time of
       sale, and to be approved by the council.
       
       (f) Requires a percentage of the management fee rate under
       Subsection (e) to be paid to and to be set by the council. 
       Subjects the percentage to Section 122.023.
       
       Sec. 122.020.  CONSUMER INFORMATION; COMPLAINTS.  Redesignates
     existing Section 122.017.  Makes conforming changes.
     
     Sec. 122.021.  PUBLIC TESTIMONY AND ACCESS.  (a) Requires the
     council to develop and implement policies that provide the
     public with a reasonable opportunity to appear before the
     council.
     
     (b) Requires the council to comply with federal and state
       laws related to program and facility accessibility, and to
       prepare and maintain a written plan that describes how a
       person who does not speak English can be provided reasonable
       access to the council's programs and services.
       
       Sec. 122.022.  REPORTS.  Redesignates existing Section
     122.018.  Requires the council to file with the governor and
     presiding officer of each house of the legislature an annual
     report that meets the reporting requirements applicable to
     financial reporting under the General Appropriations Act. 
     Makes conforming changes.
     
     Sec. 122.023.  COUNCIL FUNDS.  Subjects all money paid to the
     council under this chapter to Chapter 404F, Government Code.
     
     Sec. 122.024.  STRATEGIC PLAN; FINAL OPERATING PLAN.  Requires
     the council to prepare an agency strategic plan and a final
     operating plan as required by Chapter 2054E, Government Code.
     
     Sec. 122.025.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE. 
     Redesignates existing Section 122.019.  Makes conforming and
     nonsubstantive changes.
     
     SECTION 2.     Changes the name of the Texas Committee on Purchases of
Products and Services of Blind and Severely Disabled Persons to the
Texas Council on Purchasing from People with Disabilities. 
Declares that any reference in the law to the committee means the
council.

SECTION 3. (a) Requires the council, before using new stationery
or other supplies printed with the name of the council, to use all
supplies printed with the council's former name and that are in the
council's possession on the effective date of this Act.

     (b)  Provides that an appropriation made to the committee is
     available to the council under its name as adopted by this
     Act.
     
     SECTION 4.     Sets forth guidelines and requirements for initial
appointments to the council.

SECTION 5. Requires the Texas Commission for the Blind, not later
than January 31, 1996, to transfer to the General Services
Commission records maintained by the Texas Commission for the Blind
relating to the operations of the committee.

SECTION 6. Authorizes an agreement between the committee and a
central nonprofit agency to be extended until all of the
appointments to the council have been made.

SECTION 7. Effective date: September 1, 1995.

SECTION 8. Emergency clause.