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. 2-10 * * * * *