By Gray                                               H.B. No. 2070
         76R5533 CAG-F                           
                                A BILL TO BE ENTITLED
 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 INDIGENT PATIENTS.  (a)  The
 1-9     medical branch may enter into a contract with a county, public
1-10     hospital, or hospital district to provide treatment to residents of
1-11     the county or service area who are eligible for health care
1-12     assistance under Chapter 61, Health and Safety Code.
1-13           (b)  The liability of a county, public hospital, or hospital
1-14     district to the medical branch for the treatment of residents of
1-15     the county or service area by the medical branch may not exceed the
1-16     responsibility of a county as provided for in Chapter 61, Health
1-17     and Safety Code, unless agreed to by the county, public hospital,
1-18     or hospital district in a contract entered into under this section.
1-19           (c)  If a contract is entered into under this section, the
1-20     liability of a county, public hospital, or hospital district under
1-21     the contract shall take into consideration the actual costs of the
1-22     medical branch in providing health care services pursuant to the
1-23     contract.  The liability of a county, public hospital, or hospital
1-24     district may not exceed the medical branch's costs.
 2-1           (d)  If a contract is not entered into under this section,
 2-2     the medical branch must receive the approval of a county, public
 2-3     hospital, or hospital district before providing nonemergency health
 2-4     care services to an eligible resident of the county or service
 2-5     area.  If that approval is not received, the county, public
 2-6     hospital, or hospital district is not liable to the medical branch
 2-7     for any nonemergency care provided to the resident.  If approval is
 2-8     received, the county, public hospital, or hospital district is
 2-9     liable to the medical branch under Subsection (b) for the services
2-10     provided by the medical branch to the resident.
2-11           (e)  In this section, "eligible resident," "hospital
2-12     district," "public hospital," and "service area" have the meanings
2-13     assigned by Chapter 61, Health and Safety Code.
2-14           Sec. 74.006.  SUFFICIENCY OF INSTITUTIONAL FUNDS, FEES, AND
2-15     PATIENT BASE.  The medical branch shall ensure that the medical
2-16     branch's funds and the medical branch's hospital and clinic fees
2-17     and patient base are sufficient to fund and achieve the mission and
2-18     strategic plan of the medical branch and protect the state's
2-19     investment in the development of the medical branch.
2-20           Sec. 74.007.  INCENTIVE RETIREMENT PLANS.  (a)  The medical
2-21     branch may offer incentive retirement plans to employees of the
2-22     medical branch who elect to retire under other state law.
2-23           (b)  An incentive offered to an employee by the medical
2-24     branch must be paid from the medical branch's  funds or hospital or
2-25     clinic fees.
2-26           (c)  An institutional plan providing for incentive retirement
2-27     plans must be filed with the Legislative Budget Board not later
 3-1     than the 61st day before the date the plan is implemented.
 3-2           (d)  The medical branch may not rehire an employee receiving
 3-3     a retirement incentive under this section without the specific
 3-4     approval of the president.
 3-5           Sec. 74.008.  ACQUISITION OF GOODS AND SERVICES.  (a)  The
 3-6     medical branch may acquire goods or services by the method that
 3-7     provides the best value to the medical branch, including:
 3-8                 (1)  competitive bidding;
 3-9                 (2)  competitive sealed proposals;
3-10                 (3)  catalogue purchase;
3-11                 (4)  a group purchasing program; or
3-12                 (5)  an open market contract.
3-13           (b)  In determining what is the best value to the medical
3-14     branch, the medical branch shall consider:
3-15                 (1)  the purchase price;
3-16                 (2)  the reputation of the vendor and of the vendor's
3-17     goods or services;
3-18                 (3)  the quality of the vendor's goods or services;
3-19                 (4)  the extent to which the goods or services meet the
3-20     medical branch's needs;
3-21                 (5)  the vendor's past relationship with the medical
3-22     branch;
3-23                 (6)  the impact on the ability of the medical branch to
3-24     comply with laws and rules relating to historically underutilized
3-25     businesses;
3-26                 (7)  the total long-term cost to the medical branch of
3-27     acquiring the vendor's goods or services; and
 4-1                 (8)  any other relevant factor that a private business
 4-2     entity would consider in selecting a vendor.
 4-3           (c)  The state auditor may audit purchases of goods or
 4-4     services by the medical branch.
 4-5           (d)  The medical branch may adopt rules and procedures for
 4-6     the acquisition of goods or services.
 4-7           (e)  To the extent of any conflict, this section prevails
 4-8     over any other law relating to the purchasing of goods and services
 4-9     except a law relating to contracting with historically
4-10     underutilized businesses.
4-11           (f)  Except as otherwise provided by this section, Subtitle
4-12     D, Title 10, Government Code, and Chapter 2254, Government Code, do
4-13     not apply to purchases of goods and services made under this
4-14     section.
4-15           SECTION 2.  Subchapter B, Chapter 74, Education Code, is
4-16     repealed.
4-17           SECTION 3.  (a)  Section 1 of this Act takes effect September
4-18     1, 1999.
4-19           (b)  Section 2 of this Act takes effect September 1, 2001.
4-20           (c)  Not later than January 1, 2000, The University of Texas
4-21     Medical Branch at Galveston, the Moody State School for Cerebral
4-22     Palsied Children, and The University of Texas Medical Branch at
4-23     Galveston Special School shall discuss and enter into a memorandum
4-24     of understanding relating to the transfer of powers, duties,
4-25     property, personnel, and other assets or liabilities of the Moody
4-26     State School for Cerebral Palsied Children and The University of
4-27     Texas Medical Branch at Galveston Special School to The University
 5-1     of Texas Medical Branch at Galveston.
 5-2           (d)  Funding that could have been provided to the Moody State
 5-3     School for Cerebral Palsied Children and The University of Texas
 5-4     Medical Branch at Galveston Special School under Subchapter B,
 5-5     Chapter 74, Education Code, may be provided to The University of
 5-6     Texas Medical Branch at Galveston if the medical branch performs
 5-7     the same duties as the Moody State School for Cerebral Palsied
 5-8     Children and The University of Texas Medical Branch at Galveston
 5-9     Special School performed before the repeal of Subchapter B, Chapter
5-10     74, Education Code.
5-11           SECTION 4.  The importance of this legislation and the
5-12     crowded condition of the calendars in both houses create an
5-13     emergency and an imperative public necessity that the
5-14     constitutional rule requiring bills to be read on three several
5-15     days in each house be suspended, and this rule is hereby suspended.