By Delisi H.B. No. 2225
75R3330 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to purchasing practices by health and human services
1-3 agencies, by certain other agencies with programs related to health
1-4 or human services, and by certain public and private local
1-5 providers of health or human services.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Subchapter C, Chapter 2155, Government Code, is
1-8 amended by adding Section 2155.144 to read as follows:
1-9 Sec. 2155.144. PURCHASES BY HEALTH AND HUMAN SERVICES
1-10 AGENCIES, ATTORNEY GENERAL, AND WORKERS' COMPENSATION COMMISSION.
1-11 (a) This section applies to the Health and Human Services
1-12 Commission, to each health and human services agency, to the office
1-13 of the attorney general, and to the Texas Workers' Compensation
1-14 Commission.
1-15 (b) An agency to which this section applies is delegated the
1-16 authority to purchase its goods and services, except as provided by
1-17 this section.
1-18 (c) An agency to which this section applies may acquire
1-19 goods or services by the method that provides the best value to the
1-20 agency, including:
1-21 (1) competitive bidding;
1-22 (2) competitive sealed proposals;
1-23 (3) a catalogue purchase;
1-24 (4) a group purchasing program; or
2-1 (5) an open market contract.
2-2 (d) In determining the best value to the agency, the agency
2-3 shall consider:
2-4 (1) the purchase price;
2-5 (2) the reputation of the vendor and of the vendor's
2-6 goods or services;
2-7 (3) the quality of the vendor's goods or services;
2-8 (4) the extent to which the goods or services meet the
2-9 agency's needs;
2-10 (5) the vendor's past relationship with the agency;
2-11 (6) the impact on the ability of the agency to comply
2-12 with laws and rules relating to historically underutilized
2-13 businesses;
2-14 (7) the total long-term cost to the agency of
2-15 acquiring the vendor's goods or services; and
2-16 (8) any other relevant factor that a private business
2-17 entity would consider in selecting a vendor.
2-18 (e) The state auditor may audit the agency's purchases of
2-19 goods and services.
2-20 (f) The agency may adopt rules and procedures for the
2-21 acquisition of goods and services.
2-22 (g) The Health and Human Services Commission shall adopt
2-23 rules and procedures for the acquisition of goods and services that
2-24 apply to all health and human services agencies, and the rules of
2-25 those agencies must be consistent with the rules of the Health and
2-26 Human Services Commission.
2-27 (h) The Health and Human Services Commission shall
3-1 coordinate the purchasing practices of all health and human
3-2 services agencies and encourage those agencies to use efficient
3-3 procurement practices such as combining maintenance contracts into
3-4 one contract and obtaining prompt payment discounts. The Health
3-5 and Human Services Commission may transfer the purchasing functions
3-6 of a health and human services agency to another appropriate state
3-7 agency if it determines that transferring those functions would be
3-8 advantageous to the state. Other state agencies and institutions
3-9 with experience in purchasing goods and services using the
3-10 procedures allowed under Subsections (c) and (d) shall on request
3-11 assist the Health and Human Services Commission to perform its
3-12 functions under this section.
3-13 (i) To the extent of any conflict, this section prevails
3-14 over any other law relating to the purchasing of goods and services
3-15 except a law relating to contracting with historically
3-16 underutilized businesses.
3-17 (j) In this section, "health and human services agency" has
3-18 the meaning assigned by Section 531.001.
3-19 SECTION 2. Subchapter B, Chapter 32, Human Resources Code,
3-20 is amended by adding Sections 32.043 and 32.044 to read as follows:
3-21 Sec. 32.043. PURCHASING RULES FOR PUBLIC DISPROPORTIONATE
3-22 SHARE HOSPITALS. (a) A public hospital that is designated as a
3-23 disproportionate share hospital during a fiscal year may purchase
3-24 goods and services in accordance with this section during the
3-25 succeeding fiscal year. A purchase of goods or services made in
3-26 accordance with this section is considered to satisfy any state law
3-27 requiring purchases by competitive bidding or competitive
4-1 proposals.
4-2 (b) The public hospital may acquire goods or services by the
4-3 method that provides the best value to the public hospital,
4-4 including:
4-5 (1) competitive bidding;
4-6 (2) competitive sealed proposals;
4-7 (3) a catalogue purchase;
4-8 (4) a group purchasing program; or
4-9 (5) an open market contract.
4-10 (c) In determining the best value to the public hospital,
4-11 the public hospital shall consider:
4-12 (1) the purchase price;
4-13 (2) the reputation of the vendor and of the vendor's
4-14 goods or services;
4-15 (3) the quality of the vendor's goods or services;
4-16 (4) the extent to which the goods or services meet the
4-17 public hospital's needs;
4-18 (5) the vendor's past relationship with the public
4-19 hospital;
4-20 (6) the impact on the ability of the public hospital
4-21 to comply with any applicable laws and rules relating to
4-22 historically underutilized businesses;
4-23 (7) the total long-term cost to the public hospital of
4-24 acquiring the vendor's goods or services; and
4-25 (8) any other relevant factor that a private business
4-26 entity would consider in selecting a vendor.
4-27 (d) The state auditor or the department may audit the public
5-1 hospital's purchases of goods and services to the extent that state
5-2 money or federal money appropriated by the state is used to
5-3 purchase the goods and services.
5-4 (e) The public hospital may adopt rules and procedures for
5-5 the acquisition of goods and services.
5-6 Sec. 32.044. GROUP PURCHASING FOR DISPROPORTIONATE SHARE
5-7 HOSPITALS. (a) A public or private hospital that is designated as
5-8 a disproportionate share hospital during a fiscal year may purchase
5-9 goods and services in accordance with this section during the
5-10 succeeding fiscal year. A purchase of goods or services made in
5-11 accordance with this section is considered to satisfy any state law
5-12 requiring purchases by competitive bidding or competitive
5-13 proposals.
5-14 (b) A state or local governmental entity may allow the
5-15 public or private hospital to purchase goods or services by
5-16 participating in one or more of the entity's contracts for the
5-17 purchase of goods or services.
5-18 (c) The public or private hospital may purchase goods or
5-19 services in accordance with this section through a group purchasing
5-20 program that offers discount prices to hospitals or other providers
5-21 of health care services.
5-22 (d) The department with the assistance of the General
5-23 Services Commission shall adopt rules that allow the public or
5-24 private hospital to make purchases through group purchasing
5-25 programs except when the department has reason to believe that a
5-26 better value is available through another purchasing method.
5-27 (e) This section applies to private hospitals only to the
6-1 extent it authorizes private hospitals to participate in purchasing
6-2 contracts with governmental entities or to satisfy any state law
6-3 that may require goods and services the hospital purchases to be
6-4 competitively procured. This section does not impose new purchasing
6-5 requirements on a private hospital, except to the extent that the
6-6 private hospital agrees to be bound by the terms of a contract that
6-7 is authorized by this section and that it chooses to enter. This
6-8 section does not affect any explicit or implicit authority that a
6-9 private hospital has under other law to participate in a group
6-10 purchasing program or to participate in a purchasing contract with
6-11 a public entity.
6-12 SECTION 3. Sections 12.052(a) and (b), Health and Safety
6-13 Code, are amended to read as follows:
6-14 (a) The expenditure of funds received by local units of
6-15 government from the department is governed by Chapter 783,
6-16 Government Code, [the Uniform Grant and Contract Management Act of
6-17 1981 (Article 4413(32g), Vernon's Texas Civil Statutes)] and the
6-18 rules adopted under that law, except as provided by Section 12.055
6-19 [Act].
6-20 (b) The expenditure of funds received by other state
6-21 agencies from the department is governed by Subtitle D, Title 10,
6-22 Government Code, [the State Purchasing and General Services Act
6-23 (Article 601b, Vernon's Texas Civil Statutes)] and the rules
6-24 adopted under that law, except as provided by Section 12.055 [Act].
6-25 SECTION 4. Subchapter E, Chapter 12, Health and Safety Code,
6-26 is amended by adding Sections 12.055 and 12.056 to read as follows:
6-27 Sec. 12.055. CERTAIN PURCHASES MADE WITH DEPARTMENT FUNDS.
7-1 (a) A state agency or local unit of government that expends funds
7-2 received from the department for the purchase of goods and services
7-3 may satisfy the requirements of Section 12.052 or of another state
7-4 law requiring purchases by competitive bidding or competitive
7-5 sealed proposals by purchasing with those funds in accordance with
7-6 Section 12.056 or in accordance with:
7-7 (1) Section 2155.144, Government Code, if the entity
7-8 is a state agency subject to that law;
7-9 (2) Section 32.043 or 32.044, Human Resources Code, if
7-10 the entity is a public hospital subject to those laws; or
7-11 (3) this section, if the entity is not covered by
7-12 Subdivision (1) or (2).
7-13 (b) A state agency or local unit of government under
7-14 Subsection (a)(3) may acquire goods or services by the method that
7-15 provides the best value to the state agency or local unit of
7-16 government, including:
7-17 (1) competitive bidding;
7-18 (2) competitive sealed proposals;
7-19 (3) a catalogue purchase;
7-20 (4) a group purchasing program; or
7-21 (5) an open market contract.
7-22 (c) In determining the best value to the state agency or
7-23 local unit of government, the state agency or local unit of
7-24 government shall consider:
7-25 (1) the purchase price;
7-26 (2) the reputation of the vendor and of the vendor's
7-27 goods or services;
8-1 (3) the quality of the vendor's goods or services;
8-2 (4) the extent to which the goods or services meet the
8-3 state agency's or local unit of government's needs;
8-4 (5) the vendor's past relationship with the state
8-5 agency or local unit of government;
8-6 (6) the impact on the ability of the state agency or
8-7 local unit of government to comply with any applicable laws and
8-8 rules relating to historically underutilized businesses;
8-9 (7) the total long-term cost to the state agency or
8-10 local unit of government of acquiring the vendor's goods or
8-11 services; and
8-12 (8) any other relevant factor that a private business
8-13 entity would consider in selecting a vendor.
8-14 (d) The state auditor or the department may audit the state
8-15 agency's or local unit of government's purchases of goods and
8-16 services under this section.
8-17 (e) The state agency or local unit of government may adopt
8-18 rules and procedures for the acquisition of goods and services.
8-19 Sec. 12.056. PARTICIPATION IN DEPARTMENT PURCHASING
8-20 CONTRACTS OR GROUP PURCHASING PROGRAM. The department may allow a
8-21 state agency, local unit of government, or private entity that
8-22 expends funds received by the department to purchase goods or
8-23 services using those funds by participating in:
8-24 (1) a contract the department has made to purchase
8-25 goods or services; or
8-26 (2) a group purchasing program established or
8-27 designated by the department that offers discounts to providers of
9-1 health services.
9-2 SECTION 5. Subchapter A, Chapter 533, Health and Safety
9-3 Code, is amended by adding Sections 533.016 and 533.017 to read as
9-4 follows:
9-5 Sec. 533.016. CERTAIN PURCHASES OF GOODS AND SERVICES BY
9-6 SERVICE PROVIDERS. (a) A state agency, local agency, local mental
9-7 health authority, or local mental retardation authority that
9-8 expends public money to purchase goods or services in connection
9-9 with providing or coordinating the provision of mental health or
9-10 mental retardation services may satisfy the requirements of any
9-11 state law requiring purchases by competitive bidding or competitive
9-12 sealed proposals by purchasing with the public money in accordance
9-13 with Section 533.017 or in accordance with:
9-14 (1) Section 2155.144, Government Code, if the entity
9-15 is a state agency subject to that law;
9-16 (2) Section 32.043 or 32.044, Human Resources Code, if
9-17 the entity is a public hospital subject to those laws; or
9-18 (3) this section, if the entity is not covered by
9-19 Subdivision (1) or (2).
9-20 (b) An agency or authority under Subsection (a)(3) may
9-21 acquire goods or services by the method that provides the best
9-22 value to the agency or authority, including:
9-23 (1) competitive bidding;
9-24 (2) competitive sealed proposals;
9-25 (3) a catalogue purchase;
9-26 (4) a group purchasing program; or
9-27 (5) an open market contract.
10-1 (c) In determining the best value to the agency or
10-2 authority, the agency or authority shall consider:
10-3 (1) the purchase price;
10-4 (2) the reputation of the vendor and of the vendor's
10-5 goods or services;
10-6 (3) the quality of the vendor's goods or services;
10-7 (4) the extent to which the goods or services meet the
10-8 agency's or authority's needs;
10-9 (5) the vendor's past relationship with the agency or
10-10 authority;
10-11 (6) the impact on the ability of the agency or
10-12 authority to comply with any applicable laws and rules relating to
10-13 historically underutilized businesses;
10-14 (7) the total long-term cost to the agency or
10-15 authority of acquiring the vendor's goods or services; and
10-16 (8) any other relevant factor that a private business
10-17 entity would consider in selecting a vendor.
10-18 (d) The state auditor or the department may audit the
10-19 agency's or authority's purchases of goods and services under this
10-20 section to the extent state money or federal money appropriated by
10-21 the state is used to make the purchases.
10-22 (e) The agency or authority may adopt rules and procedures
10-23 for the acquisition of goods and services.
10-24 Sec. 533.017. PARTICIPATION IN DEPARTMENT PURCHASING
10-25 CONTRACTS OR GROUP PURCHASING PROGRAM. The department may allow a
10-26 state agency, local agency, local mental health authority, or local
10-27 mental retardation authority that expends public money to purchase
11-1 goods or services in connection with providing or coordinating the
11-2 provision of mental health or mental retardation services to
11-3 purchase goods or services with the public money by participating
11-4 in:
11-5 (1) a contract the department has made to purchase
11-6 goods or services; or
11-7 (2) a group purchasing program established or
11-8 designated by the department that offers discounts to providers of
11-9 mental health or mental retardation services.
11-10 SECTION 6. This Act takes effect September 1, 1997.
11-11 SECTION 7. The importance of this legislation and the
11-12 crowded condition of the calendars in both houses create an
11-13 emergency and an imperative public necessity that the
11-14 constitutional rule requiring bills to be read on three several
11-15 days in each house be suspended, and this rule is hereby suspended.