Amend CSSB 1291 as follows:
      (1)  In Section 161.306, Health and Safety Code, as
redesignated and amended by SECTION 1 of the bill, in the first
sentence of redesignated Subsection (b), strike "on the basis of
competitive bids."  (page 3, line 20, introduced version), and
substitute "as provided by Section 161.311 <on the basis of
competitive bids>."
      (2)  In Section 161.306, Health and Safety Code, as
redesignated and amended by SECTION 1 of the bill, in the second
sentence of redesignated Subsection (b), strike "during the
competitive bid process" (page 3, line 21, introduced version), and
substitute "to solicit applicants for the contract".
      (3)  Following Section 161.310, Health and Safety Code, as
added by SECTION 1 of the bill (page 6, between lines 17 and 18,
introduced version), insert:
      Sec. 161.311.  SYSTEM FOR AWARDING CONTRACT OR GRANT.   (a)
The board by rule shall adopt a system of awarding contracts and
grants under this subchapter that includes competitive and
noncompetitive procedures to:
            (1)  provide reasonable access in each region to
services provided under the contracts and grants; and
            (2)  include local public participation in making
regional funding decisions and formal funding recommendations.
      (b)  The department, under rules adopted by the board, shall
award any contract or grant under this subchapter to the applicant
that the department determines has made the bid or proposal that
provides the best value for delivering the particular services.
      (c)  In determining the best value under this section, the
department shall consider:
            (1)  the quality of the proposed service to be
delivered by the applicant under the contract or as proposed in the
grant application, including, if applicable, the results
accomplished by the applicant under a contract or grant previously
awarded to the applicant under this subchapter as determined under
the evaluation conducted under Section 161.309;
            (2)  the cost of the contract or amount of the grant;
            (3)  the applicant's ability to:
                  (A)  perform the contract or the services
proposed in the grant application in accordance with the contract
or requirements relating to the grant; and
                  (B)  provide continuity of service;
            (4)  whether the applicant can perform the contract or
provide the services within the period required, without delay or
interference;
            (5)  the applicant's history of:
                  (A)  performance of contracts or services under
grants; and
                  (B)  compliance with the laws relating to the
applicant's business operations and the affected services;
            (6)  whether the applicant's financial resources are
sufficient to provide the services;
            (7)  whether necessary or desirable support and
ancillary services are available to the applicant;
            (8)  the degree of community support for the applicant;
            (9)  the quality of the facilities and equipment
available to or proposed by the applicant;
            (10)  the ability of the applicant to meet applicable
written department policies, principles, and rules;
            (11)  state investment in the applicant; and
            (12)  other factors the board determines are relevant.
      (d)  In considering an applicant for a grant under Subsection
(b), the department shall also consider the need for the services
to be provided under the grant in the particular community in which
the services are to be provided by the applicant.
      (e)  Rules adopted under this section must state the
department's procedures for selecting contractors and grant
recipients, including:
            (1)  service purchase methods;
            (2)  eligibility criteria;
            (3)  provider selection criteria; and
            (4)  selection determination procedures.