1-1                                   AN ACT
 1-2     relating to the administration and responsibilities of The
 1-3     University of Texas Medical Branch at Galveston.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 74, Education Code, is
 1-6     amended by adding Sections 74.005, 74.006, 74.007, and 74.008 to
 1-7     read as follows:
 1-8           Sec. 74.005.  TREATMENT OF CERTAIN PATIENTS.  (a)  The
 1-9     medical branch may enter into one or more contracts with a county,
1-10     public hospital, or hospital district to provide treatment to
1-11     residents of the county or service area, including a contract to
1-12     provide treatment to residents who are eligible for health care
1-13     assistance under Chapter 61, Health and Safety Code.
1-14           (b)  If a contract is entered into under this section, the
1-15     liability of a county, public hospital, or hospital district under
1-16     the contract shall take into consideration the actual costs of the
1-17     medical branch in providing health care services pursuant to the
1-18     contract, but in no event may the liability of a county, public
1-19     hospital, or hospital district exceed the medical branch's costs.
1-20           (c)  If a contract to provide treatment to an eligible
1-21     resident of a county or service area is not entered into under this
1-22     section, the medical branch must receive the approval of the
1-23     appropriate county, public hospital, or hospital district before
1-24     providing nonemergency health care services to the resident.  If
 2-1     that approval is not received, the county, public hospital, or
 2-2     hospital district is not liable to the medical branch for any
 2-3     nonemergency care provided to the resident.  If approval is
 2-4     received, the county, public hospital, or hospital district is
 2-5     liable to the medical branch under Subsection (d) for the services
 2-6     provided by the medical branch to the resident.
 2-7           (d)  The liability of a county, public hospital, or hospital
 2-8     district to the medical branch for the treatment of eligible
 2-9     residents of the county or service area by the medical branch may
2-10     not exceed the responsibility of a county as provided for in
2-11     Chapter 61, Health and Safety Code, unless agreed to by the county,
2-12     public hospital, or hospital district in a contract to provide
2-13     treatment to those residents that is entered into under this
2-14     section.
2-15           (e)  In this section, "eligible resident," "hospital
2-16     district," "public hospital," and "service area" have the same
2-17     meanings assigned those terms by Chapter 61, Health and Safety
2-18     Code.
2-19           Sec. 74.006.  SUFFICIENCY OF FUNDS.  The medical branch shall
2-20     take any reasonable administrative or management action necessary
2-21     to achieve the mission and strategic plan of the medical branch
2-22     within the total amount of funds received by the medical branch
2-23     from all sources, including institutional and local funds and
2-24     hospital and clinic fees.
2-25           Sec. 74.007.  INCENTIVE RETIREMENT PLANS.  (a)  The medical
2-26     branch may offer incentive retirement plans to employees of the
2-27     medical branch who elect to retire under other state law.
 3-1           (b)  An incentive offered to an employee by the medical
 3-2     branch must be paid from the medical branch's  funds or hospital or
 3-3     clinic fees.
 3-4           (c)  The medical branch may not rehire an employee receiving
 3-5     a retirement incentive under this section without the specific
 3-6     approval of the president.
 3-7           Sec. 74.008.  ACQUISITION OF GOODS OR SERVICES.  (a)  The
 3-8     medical branch may acquire goods or services by the method that
 3-9     provides the best value to the medical branch, including:
3-10                 (1)  competitive bidding;
3-11                 (2)  competitive sealed proposals;
3-12                 (3)  catalogue purchase;
3-13                 (4)  a group purchasing program; or
3-14                 (5)  an open market contract.
3-15           (b)  In determining what is the best value to the medical
3-16     branch, the medical branch shall consider:
3-17                 (1)  the purchase price;
3-18                 (2)  the reputation of the vendor and of the vendor's
3-19     goods or services;
3-20                 (3)  the quality of the vendor's goods or services;
3-21                 (4)  the extent to which the goods or services meet the
3-22     medical branch's needs;
3-23                 (5)  the vendor's past relationship with the medical
3-24     branch;
3-25                 (6)  the impact on the ability of the medical branch to
3-26     comply with laws and rules relating to historically underutilized
3-27     businesses;
 4-1                 (7)  the total long-term cost to the medical branch of
 4-2     acquiring the vendor's goods or services; and
 4-3                 (8)  any other relevant factor that a private business
 4-4     entity would consider in selecting a vendor.
 4-5           (c)  The state auditor may audit purchases of goods or
 4-6     services by the medical branch.
 4-7           (d)  The medical branch may adopt rules and procedures for
 4-8     the acquisition of goods or services.
 4-9           (e)  To the extent of any conflict, this section prevails
4-10     over any other law relating to the purchasing of goods or services
4-11     except a law relating to contracting with historically
4-12     underutilized businesses or relating to the procurement of goods
4-13     and services from persons with disabilities.
4-14           (f)  This section does not apply to purchases of professional
4-15     services subject to Chapter 2254, Government Code.
4-16           (g)  Except as otherwise provided by this section, Subtitle
4-17     D, Title 10, Government Code, does not apply to purchases of goods
4-18     and services made under this section.
4-19           SECTION 2.  Subchapter B, Chapter 74, Education Code, is
4-20     repealed.
4-21           SECTION 3.  (a)  Section 1 of this Act takes effect September
4-22     1, 1999.
4-23           (b)  Section 2 of this Act takes effect September 1, 2000.
4-24           (c)  Not later than January 1, 2000, The University of Texas
4-25     Medical Branch at Galveston, the Moody State School for Cerebral
4-26     Palsied Children, and The University of Texas Medical Branch at
4-27     Galveston Special School shall discuss and enter into a memorandum
 5-1     of understanding relating to the transfer of property and other
 5-2     assets of the Moody State School for Cerebral Palsied Children and
 5-3     The University of Texas Medical Branch at Galveston Special School
 5-4     to The University of Texas Medical Branch at Galveston and relating
 5-5     to the dissolution of the Moody State School for Cerebral Palsied
 5-6     Children and The University of Texas Medical Branch at Galveston
 5-7     Special School.
 5-8           (d)  Funding that could have been provided to the Moody State
 5-9     School for Cerebral Palsied Children and The University of Texas
5-10     Medical Branch at Galveston Special School under Subchapter B,
5-11     Chapter 74, Education Code, may be provided to The University of
5-12     Texas Medical Branch at Galveston if the medical branch performs
5-13     the same duties as the Moody State School for Cerebral Palsied
5-14     Children and The University of Texas Medical Branch at Galveston
5-15     Special School performed before the repeal of Subchapter B, Chapter
5-16     74, Education Code.
5-17           SECTION 4.  The importance of this legislation and the
5-18     crowded condition of the calendars in both houses create an
5-19     emergency and an imperative public necessity that the
5-20     constitutional rule requiring bills to be read on three several
5-21     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2070 was passed by the House on April
         28, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2070 on May 22, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2070 was passed by the Senate, with
         amendments, on May 20, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor