1-1  By:  Zaffirini                                         S.B. No. 406
    1-2        (In the Senate - Filed February 13, 1995; February 14, 1995,
    1-3  read first time and referred to Committee on Health and Human
    1-4  Services; April 20, 1995, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 7, Nays 0;
    1-6  April 20, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 406                By:  Zaffirini
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to health care purchasing by state agencies.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Article 3, State Purchasing and General Services
   1-13  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   1-14  adding Section 3.062 to read as follows:
   1-15        Sec. 3.062.  HEALTH CARE PURCHASING.  (a)  A state agency
   1-16  shall acquire goods and services used in support of the agency's
   1-17  health care programs by the method that provides the greatest
   1-18  volume discount for the goods or service, including group
   1-19  purchasing programs, state agency purchasing consortiums, or
   1-20  competitive sealed proposals.
   1-21        (b)  A state agency may contract with a medical and dental
   1-22  unit to have the unit perform all or part of the purchasing
   1-23  functions of the agency under this section or to participate in a
   1-24  state agency purchasing consortium or group purchasing program with
   1-25  the medical and dental unit.
   1-26        (c)  If an agency determines that it should consider factors
   1-27  in addition to volume discounts in acquiring a particular good or
   1-28  service, the agency may acquire the good or service by the most
   1-29  cost-effective method of acquisition available, including group
   1-30  purchasing programs, state agency purchasing consortiums, or
   1-31  competitive sealed proposals.
   1-32        (d)  A state agency shall provide appropriate information to
   1-33  the commission concerning acquisitions made by the agency under
   1-34  this section, but the commission's authority under this article
   1-35  does not extend to the acquisition of goods and services made under
   1-36  this section.
   1-37        (e)  The central administration of The University of Texas
   1-38  System shall develop methods for sharing information concerning
   1-39  acquisitions made under this section, including methods for sharing
   1-40  the information electronically.  Electronic sharing may include
   1-41  posting information on acquisitions on the comptroller's state
   1-42  government electronic bulletin board.
   1-43        (f)  A state agency shall collect and maintain information as
   1-44  specified by the central administration of The University of Texas
   1-45  System relating to the agency's acquisitions under this section.
   1-46  The central administration of The University of Texas System is
   1-47  entitled to access to all information collected and maintained
   1-48  under this section.
   1-49        (g)  In this section:
   1-50              (1)  "Goods" means material, supplies, equipment, or
   1-51  other tangible items.
   1-52              (2)  "Group purchasing program" means a program
   1-53  administered by a business entity that offers discount prices on
   1-54  goods and services to participants in the program.
   1-55              (3)  "Health care program" means a program or activity
   1-56  administered or funded by a state agency to provide health care
   1-57  services, research, education, or goods.
   1-58              (4)  "Medical and dental unit" has the meaning assigned
   1-59  by Section 61.003, Education Code.
   1-60              (5)  "State agency purchasing consortium" means a group
   1-61  of three or more state agencies acting pursuant to a written
   1-62  agreement to receive discount prices from vendors based on volume
   1-63  purchases of goods and services.
   1-64        (h)  This section does not apply to the state Medicaid
   1-65  program.
   1-66        SECTION 2.  The central administration of The University of
   1-67  Texas System shall report to the 75th Legislature concerning
   1-68  activities of state agencies under Section 3.062, State Purchasing
    2-1  and General Services Act (Article 601b, Vernon's Texas Civil
    2-2  Statutes), as added by this Act.
    2-3        SECTION 3.  The importance of this legislation and the
    2-4  crowded condition of the calendars in both houses create an
    2-5  emergency and an imperative public necessity that the
    2-6  constitutional rule requiring bills to be read on three several
    2-7  days in each house be suspended, and this rule is hereby suspended,
    2-8  and that this Act take effect and be in force from and after its
    2-9  passage, and it is so enacted.
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