PAK S.B. 1240 75(R)    BILL ANALYSIS

S.B. 1240
By: West, Royce (Maxey)
Committee Report (Unamended)


Currently, state agencies contract for printing, freight delivery,
cleaning, and professional expertise in areas such as financial advising,
engineering, and advertising.  In fiscal 1995, the State of Texas spent
more than $11.8 billion on a variety of services.  State agencies also
purchase for their clients a variety of health and human services
including medical care, nursing home care, adult day care, community-based
residential care for children, substance abuse counseling, and mental
health and mental retardation services.  The state spent $9.2 billion on
these types of client services, and more than 22 state agencies purchased
such services from nearly 75,000 services providers in fiscal 1995. Client
services differ from other services the state buys in that the recipient
or consumer of these services is not only the state, but individual
clients.  S.B. 1240 would create a working group to coordinate the
purchase of client services and direct the Health and Human Services
Commission to develop rules to ensure consistent procurement and


As proposed, S.B. 1240 outlines provisions regarding the state's
purchasing of services for state agency clients. 


It is the committee's opinion that this bill does expressly grant
rulemaking authority to the Health and Human Services Commission and other
state agencies under SECTION 1 (Section 531.0275(a), Government Code) of
this bill. 


SECTION 1. Amends  Chapter 531B, Government Code, as follows:

Sec. 531.0275. PURCHASING CLIENT SERVICES. Requires the Health and Human
Services Commission (commission) to coordinate and adopt rules to govern
the purchasing by state agencies of services for their clients, including
agencies that are not health and human services agencies.  Provides that
the commission's rules adopted under this section apply directly to health
and human services agencies.  Requires other state agencies to adopt rules
governing purchases of services for their clients that are consistent with
their rules. Requires the commission's rules to ensure consistent
practices in the procurement of services for clients, efficient and
effective monitoring of contract providers, and improved accountability
for contract providers.  Sets forth requirements for the commission's

SECTION 2. Amends Subchapter C, Chapter 2101C of the Government Code by
adding Section 2101.040, as follows: 

Requires the comptroller to use the uniform statewide accounting system to
compile and make available to the commission useful information about
state agencies' purchases of services for their clients.  Requires the
commission to indicate to the comptroller the information that the
commission needs to monitor, improve, and coordinate those purchases. 

SECTION 3. Requires the commission to preside over a working group to
research the laws that  govern the purchasing of services by state
agencies for their clients and to develop recommendations on the
feasibility and advisability of merging those laws into a single
comprehensive statute or otherwise clarifying the law that governs those
purchases.  Provides that the working group is composed of representatives
of the commission, the governor's office, the General Services Commission,
the comptroller, the state auditor, the Texas Legislative Council, and
each agency that in the opinion of the commission spends a significant
amount of money purchasing services for its clients.  Requires the working
group to report its findings and recommendations to the legislature not
later than November 1, 1998.  Provides that the working group is abolished
June 1, 1999. 

SECTION 4. Requires the comptroller, with the assistance of the
commission, to study the costs and benefits of developing a statewide
contract management information system for managing the purchasing of
services by state agencies for their clients.  Requires the comptroller
and the commission to examine the extent to which the uniform statewide
accounting system could feasibly be modified to serve as the contract
management information system, whether it is feasible to use the
information in the uniform statewide accounting system to create a
separate contract management information system, and whether it would be
cost effective to request proposals from private vendors to create an
entirely new contract management information system as part of the study.
Requires the comptroller to report the findings and conclusions of the
study to the legislature not later than October 1, 1998. 

SECTION 5. Emergency clause.