BILL ANALYSIS



S.B. 406
By: Zaffirini (Maxey)
05-09-95
Committee Report (Unamended)


BACKGROUND

State government is the Texas health care industry's largest single
customer. In the upcoming biennium, almost a third of the Texas
budget will be spent on health and human services. While the
greatest expenditures will be for Medicaid, state employee
insurance, and health care for state prison inmates, a considerable
amount will be spent on smaller programs.

PURPOSE

S.B. 406 would require a state agency to acquire goods and services
in support of the agency's health care program in a method that
provides the greatest volume discount.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Adds Section 3.062 to Article 3, State Purchasing and
General Services Act (Article 601b, V.T.C.S.), as follows:

     Sec.  3.062.  HEALTH CARE PURCHASING.  (a) Requires a state
     agency to acquire goods and services used in support of the
     agency's health care programs by the method that provides the
     greatest volume discount for the goods or service, including
     group purchasing programs, agency purchasing consortiums, or
     competitive sealed proposals.
     
     (b) Authorizes a state agency to contract with a medical and
       dental unit to have the unit perform all or part of the
       purchasing functions of the agency or to participate in an
       agency purchasing consortium or group purchasing program
       with the medical or dental unit.
       
       (c) Allows the agency to acquire the good or service by the
       most cost-effective method of acquisition available,
       including group purchasing programs, agency purchasing
       consortiums, or competitive sealed proposals if an agency
       determines that it should consider factors in addition to
       volume discounts in acquiring a particular good or service.
       
       (d) Requires a state agency to provide appropriate
       information to the General Services Commission (commission)
       concerning acquisitions made by the agency. States that the
       commission's authority does not extend to the acquisition of
       goods and services.
       
       (e) Requires the central administration of the University of
       Texas System (UT System) to develop methods for sharing
       information concerning acquisitions made under this section,
       including methods for sharing information electronically. 
       Allows electronic sharing to include posting information on
       acquisitions on the comptroller's state government
       electronic bulletin board.
              
       (f) Requires an agency to collect and maintain information
       as specified by the UT System relating to the agency's
       acquisitions under this section. Entitles the UT System to
       access to all information collected and maintained under
       this section.
       
       (g) Defines "goods," "group purchasing program," "health
       care program," "medical and dental unit," and "state agency
       purchasing consortium."
       
       (h) States that this section does not apply to the state
       Medicaid program.
       
       SECTION 2.   Requires the UT System to report to the 75th Legislature
concerning activities of state agencies under Section 3.062, State
Purchasing and General Services Act (Article 601b, V.T.C.S.), as
added by this Act.

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

SUMMARY OF COMMITTEE ACTION

S.B. 406 was considered by the Public Health Committee in a public
hearing on April 9, 1995. The bill was reported favorably without
amendment, with the recommendation that it do pass and be printed
and sent to the Committee on Local and Consent Calendars, by a
record vote of 5 AYES, 0 NAYS, 0 PNV, and 4 ABSENT.