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.