H.B. No. 2032
    1-1                                AN ACT
    1-2  relating to purchases by and programs for employees of public
    1-3  institutions of higher education.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter Z, Chapter 51, Education Code, is
    1-6  amended by adding Sections 51.932 and 51.933 to read as follows:
    1-7        Sec. 51.932.  RETIREMENT INCENTIVES.  (a)  A medical and
    1-8  dental unit may offer a retirement incentive to an employee of the
    1-9  unit who is eligible to retire under Subtitle C, Title 8,
   1-10  Government Code.
   1-11        (b)  A medical and dental unit offering a retirement
   1-12  incentive plan shall file the plan with the Legislative Budget
   1-13  Board not later than the 61st day before the date the plan is
   1-14  implemented and shall provide the board with any information
   1-15  concerning the plan required by the board.
   1-16        (c)  A medical and dental unit may not rehire an employee
   1-17  receiving a retirement incentive under this section without the
   1-18  specific approval of the president of the unit.  The president may
   1-19  not delegate this responsibility to any other employee of the unit.
   1-20        (d)  A retirement incentive offered to an employee by a
   1-21  medical and dental unit under this section must be paid from
   1-22  institutional funds or hospital or clinic fees.
   1-23        (e)  A retirement incentive paid by a medical and dental unit
   1-24  to an employee is not subject to any provision of state law that
    2-1  entitles the employee to benefits based on salary or compensation,
    2-2  including contributions under Subtitle C, Title 8, Government Code.
    2-3        (f)  In this section:
    2-4              (1)  "Institutional funds" has the meaning assigned by
    2-5  Section 51.009(b).
    2-6              (2)  "Medical and dental unit" has the meaning assigned
    2-7  by Section 61.003 and includes a school of veterinary medicine and
    2-8  a health care facility operated by a medical and dental unit,
    2-9  except that the term does not include The University of Texas M. D.
   2-10  Anderson Cancer Center.
   2-11        Sec. 51.933.  ACQUISITION OF GOODS AND SERVICES.  (a)  A
   2-12  medical and dental unit may acquire goods or services by the method
   2-13  that provides the best value to the unit, including:
   2-14              (1)  competitive bidding;
   2-15              (2)  competitive sealed proposals;
   2-16              (3)  a catalogue purchase;
   2-17              (4)  a group purchasing program; or
   2-18              (5)  an open market contract.
   2-19        (b)  In determining what is the best value to a medical and
   2-20  dental unit, the unit shall consider:
   2-21              (1)  the purchase price;
   2-22              (2)  the reputation of the vendor and of the vendor's
   2-23  goods or services;
   2-24              (3)  the quality of the vendor's goods or services;
   2-25              (4)  the extent to which the goods or services meet the
   2-26  unit's needs;
   2-27              (5)  the vendor's past relationship with the unit;
    3-1              (6)  the impact on the ability of the unit to comply
    3-2  with laws and rules relating to historically underutilized
    3-3  businesses;
    3-4              (7)  the total long-term cost to the unit of acquiring
    3-5  the vendor's goods or services; and
    3-6              (8)  any other relevant factor that a private business
    3-7  entity would consider in selecting a vendor.
    3-8        (c)  The state auditor may audit purchases of goods or
    3-9  services by a medical and dental unit.
   3-10        (d)  To the extent of any conflict, this section prevails
   3-11  over any other law except a law or rule relating to contracting
   3-12  with historically underutilized businesses.
   3-13        (e)  In this section, "medical and dental unit" has the
   3-14  meaning assigned by Section 61.003 and includes a school of
   3-15  veterinary medicine and a health care facility operated by a
   3-16  medical and dental unit, except that the term does not include The
   3-17  University of Texas M. D. Anderson Cancer Center.
   3-18        (f)  This section expires September 1, 1999.
   3-19        SECTION 2.  Section 830.201, Government Code, is amended by
   3-20  adding Subsections (d), (e), and (f) to read as follows:
   3-21        (d)  For a person who first became a participant in the
   3-22  optional retirement program beginning after August 31, 1996, the
   3-23  compensation limitation of Section 401(a)(17), Internal Revenue
   3-24  Code of 1986 (26 U.S.C.  Section 401), applies.
   3-25        (e)  For a person who first became a participant in the
   3-26  optional retirement program before September 1, 1996, the
   3-27  compensation limitation under Section 401(a)(17), Internal Revenue
    4-1  Code (26 U.S.C. Section 401), does not apply.  For these persons,
    4-2  the amount of compensation allowed to be taken into account under
    4-3  the plan shall be the amount allowed to be taken into account as of
    4-4  July 1, 1993.
    4-5        (f)  Subsection (e) of this section does not apply to a
    4-6  person whose compensation in excess of the compensation limitation
    4-7  of Section 401(a)(17), Internal Revenue Code (26 U.S.C. Section
    4-8  401), or whose state retirement contribution under this subchapter,
    4-9  is paid from general revenue funds or any student tuition or fee
   4-10  assessed under Chapters 54 or 55, Education Code.
   4-11        SECTION 3.  Not later than February 1, 1999, the Legislative
   4-12  Audit Committee may report to the 76th Legislature on the
   4-13  purchasing operations of a medical and dental unit as defined by
   4-14  Section 61.003.  The committee may hire an independent firm to
   4-15  prepare the report.  The medical and dental unit shall cooperate
   4-16  with the firm and shall bear the costs of the study as determined
   4-17  by the committee.
   4-18        SECTION 4.  The importance of this legislation and the
   4-19  crowded condition of the calendars in both houses create an
   4-20  emergency and an imperative public necessity that the
   4-21  constitutional rule requiring bills to be read on three several
   4-22  days in each house be suspended, and this rule is hereby suspended,
   4-23  and that this Act take effect and be in force from and after its
   4-24  passage, and it is so enacted.