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.