By:  Zaffirini                                         S.B. No. 406
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to health care purchasing by state agencies.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Article 3, State Purchasing and General Services
    1-4  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
    1-5  adding Section 3.062 to read as follows:
    1-6        Sec. 3.062.  HEALTH CARE PURCHASING.  (a)  A state agency
    1-7  shall acquire goods and services used in support of the agency's
    1-8  health care programs by the method that provides the greatest
    1-9  volume discount for the goods or service, including group
   1-10  purchasing programs, state agency purchasing consortiums, or
   1-11  competitive sealed proposals.
   1-12        (b)  A state agency may contract with a medical and dental
   1-13  unit to have the unit perform all or part of the purchasing
   1-14  functions of the agency under this section or to participate in a
   1-15  state agency purchasing consortium or group purchasing program with
   1-16  the medical and dental unit.
   1-17        (c)  If an agency determines that it should consider factors
   1-18  in addition to volume discounts in acquiring a particular good or
   1-19  service, the agency may acquire the good or service by the most
   1-20  cost-effective method of acquisition available, including group
   1-21  purchasing programs, state agency purchasing consortiums, or
   1-22  competitive sealed proposals.
   1-23        (d)  A state agency shall provide appropriate information to
   1-24  the commission concerning acquisitions made by the agency under
    2-1  this section, but the commission's authority under this article
    2-2  does not extend to the acquisition of goods and services made under
    2-3  this section.
    2-4        (e)  The central administration of The University of Texas
    2-5  System shall develop methods for sharing information concerning
    2-6  acquisitions made under this section, including methods for sharing
    2-7  the information electronically.  Electronic sharing may include
    2-8  posting information on acquisitions on the comptroller's state
    2-9  government electronic bulletin board.
   2-10        (f)  A state agency shall collect and maintain information as
   2-11  specified by the central administration of The University of Texas
   2-12  System relating to the agency's acquisitions under this section.
   2-13  The central administration of The University of Texas System is
   2-14  entitled to access to all information collected and maintained
   2-15  under this section.
   2-16        (g)  In this section:
   2-17              (1)  "Goods" means material, supplies, equipment, or
   2-18  other tangible items.
   2-19              (2)  "Group purchasing program" means a program
   2-20  administered by a business entity that offers discount prices on
   2-21  goods and services to participants in the program.
   2-22              (3)  "Health care program" means a program or activity
   2-23  administered or funded by a state agency to provide health care
   2-24  services, research, education, or goods.
   2-25              (4)  "Medical and dental unit" has the meaning assigned
   2-26  by Section 61.003, Education Code.
   2-27              (5)  "State agency purchasing consortium" means a group
    3-1  of three or more state agencies acting pursuant to a written
    3-2  agreement to receive discount prices from vendors based on volume
    3-3  purchases of goods and services.
    3-4        (h)  This section does not apply to the state Medicaid
    3-5  program.
    3-6        SECTION 2.  The central administration of The University of
    3-7  Texas System shall report to the 75th Legislature concerning
    3-8  activities of state agencies under Section 3.062, State Purchasing
    3-9  and General Services Act (Article 601b, Vernon's Texas Civil
   3-10  Statutes), as added by this Act.
   3-11        SECTION 3.  The importance of this legislation and the
   3-12  crowded condition of the calendars in both houses create an
   3-13  emergency and an imperative public necessity that the
   3-14  constitutional rule requiring bills to be read on three several
   3-15  days in each house be suspended, and this rule is hereby suspended,
   3-16  and that this Act take effect and be in force from and after its
   3-17  passage, and it is so enacted.