1-1     relating to the state's purchasing of services for state agency

 1-2     clients.


 1-4           SECTION 1.  Subchapter B, Chapter 531, Government Code, is

 1-5     amended by adding Section 531.0275 to read as follows:

 1-6           Sec. 531.0275.  PURCHASING CLIENT SERVICES.  (a)  The

 1-7     commission shall coordinate and adopt rules to govern the

 1-8     purchasing by state agencies of services for their clients,

 1-9     including agencies that are not health and human services agencies.

1-10     The commission's rules adopted under this section apply directly to

1-11     health and human services agencies.  Other state agencies shall

1-12     adopt rules governing purchases of services for their clients that

1-13     are consistent with the commission's rules.

1-14           (b)  The commission's rules must ensure consistent practices

1-15     in the procurement of services for clients, efficient and effective

1-16     monitoring of contract providers, and improved accountability for

1-17     contract providers.  The rules must:

1-18                 (1)  describe various contracting arrangements and

1-19     provide information to guide agencies in determining which

1-20     arrangements are most advantageous in particular situations;

1-21                 (2)  provide clear definitions of contracting terms;

1-22                 (3)  list minimum requirements and standard language

1-23     for the contracts;

 2-1                 (4)  prescribe mandatory or describe sample performance

 2-2     and outcome measures for the contracts; and

 2-3                 (5)  prescribe procedures for efficiently coordinating

 2-4     audits of contractors who contract with more than one agency or

 2-5     more than one division within an agency.

 2-6           SECTION 2.  Subchapter C, Chapter 2101, Government Code, is

 2-7     amended by adding Section 2101.040 to read as follows:


 2-9     CLIENTS.  To the extent feasible, the comptroller shall use the

2-10     uniform statewide accounting system to compile and make available

2-11     to the Health and Human Services Commission useful information

2-12     about state agencies' purchases of services for their clients.  The

2-13     commission shall indicate to the comptroller the information that

2-14     the commission needs to monitor, improve, and coordinate those

2-15     purchases.

2-16           SECTION 3.  The Health and Human Services Commission shall

2-17     preside over a working group to research the laws that govern the

2-18     purchasing of services by state agencies for their clients and to

2-19     develop recommendations on the feasibility and advisability of

2-20     merging those laws into a single comprehensive statute or otherwise

2-21     clarifying the law that governs those purchases.  The working group

2-22     is composed of representatives of the commission, the governor's

2-23     office, the General Services Commission, the comptroller, the state

2-24     auditor, the Texas Legislative Council, and each agency that in the

2-25     opinion of the Health and Human Services Commission spends a

 3-1     significant amount of money purchasing services for its clients.

 3-2     The working group shall report its findings and recommendations to

 3-3     the legislature not later than November 1, 1998.  The working group

 3-4     is abolished June 1, 1999.

 3-5           SECTION 4.  The comptroller with the assistance of the Health

 3-6     and Human Services Commission shall study the costs and benefits of

 3-7     developing a statewide contract management information system for

 3-8     managing the purchasing of services by state agencies for their

 3-9     clients.  As part of the study, the comptroller and the commission

3-10     shall examine the extent to which the uniform statewide accounting

3-11     system could feasibly be modified to serve as the contract

3-12     management information system, whether it is feasible to use the

3-13     information in the uniform statewide accounting system to create a

3-14     separate contract management information system, and whether it

3-15     would be cost-effective to request proposals from private vendors

3-16     to create an entirely new contract management information system.

3-17     The comptroller shall report the findings and conclusions of the

3-18     study to the legislature not later than October 1, 1998.

3-19           SECTION 5.  The importance of this legislation and the

3-20     crowded condition of the calendars in both houses create an

3-21     emergency and an imperative public necessity that the

3-22     constitutional rule requiring bills to be read on three several

3-23     days in each house be suspended, and this rule is hereby suspended,

3-24     and that this Act take effect and be in force from and after its

3-25     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1240 passed the Senate on

         April 29, 1997, by the following vote:  Yeas 31, Nays 0.


                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1240 passed the House on

         May 28, 1997, by the following vote:  Yeas 136, Nays 0, two present

         not voting.


                                                 Chief Clerk of the House