1-1     By:  Gray, Eiland (Senate Sponsor - Jackson)          H.B. No. 2070
 1-2           (In the Senate - Received from the House April 29, 1999;
 1-3     April 30, 1999, read first time and referred to Committee on Health
 1-4     Services; May 13, 1999, reported favorably, as amended, by the
 1-5     following vote:  Yeas 5, Nays 0; May 13, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                             By:  Moncrief
 1-7           Amend H.B. 2070 by adding the following language:
 1-8           On page 2, line 49, after "businesses" add "or relating to
 1-9     the procurement of goods and services from persons with
1-10     disabilities."
1-11     COMMITTEE AMENDMENT NO. 2                             By:  Moncrief
1-12           Amend H.B. 2070 in SECTION 1 by deleting Subsection (f) of
1-13     the proposed Section 74.008, Education Code, and inserting in lieu
1-14     thereof new subsections (f) and (g) to read as follows:
1-15           (f)  This section does not apply to purchases of professional
1-16     services subject to Chapter 2254, Government Code.
1-17           (g)  Except as otherwise provided by this section, Subtitle
1-18     D, Title 10, Government Code, does not apply to purchases of goods
1-19     and services made under this section.
1-20                            A BILL TO BE ENTITLED
1-21                                   AN ACT
1-22     relating to the administration and responsibilities of The
1-23     University of Texas Medical Branch at Galveston.
1-24           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25           SECTION 1.  Subchapter A, Chapter 74, Education Code, is
1-26     amended by adding Sections 74.005, 74.006, 74.007, and 74.008 to
1-27     read as follows:
1-28           Sec. 74.005.  TREATMENT OF CERTAIN PATIENTS.  (a)  The
1-29     medical branch may enter into one or more contracts with a county,
1-30     public hospital, or hospital district to provide treatment to
1-31     residents of the county or service area, including a contract to
1-32     provide treatment to residents who are eligible for health care
1-33     assistance under Chapter 61, Health and Safety Code.
1-34           (b)  If a contract is entered into under this section, the
1-35     liability of a county, public hospital, or hospital district under
1-36     the contract shall take into consideration the actual costs of the
1-37     medical branch in providing health care services pursuant to the
1-38     contract, but in no event may the liability of a county, public
1-39     hospital, or hospital district exceed the medical branch's costs.
1-40           (c)  If a contract to provide treatment to an eligible
1-41     resident of a county or service area is not entered into under this
1-42     section, the medical branch must receive the approval of the
1-43     appropriate county, public hospital, or hospital district before
1-44     providing nonemergency health care services to the resident.  If
1-45     that approval is not received, the county, public hospital, or
1-46     hospital district is not liable to the medical branch for any
1-47     nonemergency care provided to the resident.  If approval is
1-48     received, the county, public hospital, or hospital district is
1-49     liable to the medical branch under Subsection (d) for the services
1-50     provided by the medical branch to the resident.
1-51           (d)  The liability of a county, public hospital, or hospital
1-52     district to the medical branch for the treatment of eligible
1-53     residents of the county or service area by the medical branch may
1-54     not exceed the responsibility of a county as provided for in
1-55     Chapter 61, Health and Safety Code, unless agreed to by the county,
1-56     public hospital, or hospital district in a contract to provide
1-57     treatment to those residents that is entered into under this
1-58     section.
1-59           (e)  In this section, "eligible resident," "hospital
1-60     district," "public hospital," and "service area" have the same
1-61     meanings assigned those terms by Chapter 61, Health and Safety
 2-1     Code.
 2-2           Sec. 74.006.  SUFFICIENCY OF FUNDS.  The medical branch shall
 2-3     take any reasonable administrative or management action necessary
 2-4     to achieve the mission and strategic plan of the medical branch
 2-5     within the total amount of funds received by the medical branch
 2-6     from all sources, including institutional and local funds and
 2-7     hospital and clinic fees.
 2-8           Sec. 74.007.  INCENTIVE RETIREMENT PLANS.  (a)  The medical
 2-9     branch may offer incentive retirement plans to employees of the
2-10     medical branch who elect to retire under other state law.
2-11           (b)  An incentive offered to an employee by the medical
2-12     branch must be paid from the medical branch's  funds or hospital or
2-13     clinic fees.
2-14           (c)  The medical branch may not rehire an employee receiving
2-15     a retirement incentive under this section without the specific
2-16     approval of the president.
2-17           Sec. 74.008.  ACQUISITION OF GOODS OR SERVICES.  (a)  The
2-18     medical branch may acquire goods or services by the method that
2-19     provides the best value to the medical branch, including:
2-20                 (1)  competitive bidding;
2-21                 (2)  competitive sealed proposals;
2-22                 (3)  catalogue purchase;
2-23                 (4)  a group purchasing program; or
2-24                 (5)  an open market contract.
2-25           (b)  In determining what is the best value to the medical
2-26     branch, the medical branch shall consider:
2-27                 (1)  the purchase price;
2-28                 (2)  the reputation of the vendor and of the vendor's
2-29     goods or services;
2-30                 (3)  the quality of the vendor's goods or services;
2-31                 (4)  the extent to which the goods or services meet the
2-32     medical branch's needs;
2-33                 (5)  the vendor's past relationship with the medical
2-34     branch;
2-35                 (6)  the impact on the ability of the medical branch to
2-36     comply with laws and rules relating to historically underutilized
2-37     businesses;
2-38                 (7)  the total long-term cost to the medical branch of
2-39     acquiring the vendor's goods or services; and
2-40                 (8)  any other relevant factor that a private business
2-41     entity would consider in selecting a vendor.
2-42           (c)  The state auditor may audit purchases of goods or
2-43     services by the medical branch.
2-44           (d)  The medical branch may adopt rules and procedures for
2-45     the acquisition of goods or services.
2-46           (e)  To the extent of any conflict, this section prevails
2-47     over any other law relating to the purchasing of goods or services
2-48     except a law relating to contracting with historically
2-49     underutilized businesses.
2-50           (f)  Except as otherwise provided by this section, Subtitle
2-51     D, Title 10, Government Code, and Chapter 2254, Government Code, do
2-52     not apply to purchases of goods or services made under this
2-53     section.
2-54           SECTION 2.  Subchapter B, Chapter 74, Education Code, is
2-55     repealed.
2-56           SECTION 3.  (a)  Section 1 of this Act takes effect September
2-57     1, 1999.
2-58           (b)  Section 2 of this Act takes effect September 1, 2000.
2-59           (c)  Not later than January 1, 2000, The University of Texas
2-60     Medical Branch at Galveston, the Moody State School for Cerebral
2-61     Palsied Children, and The University of Texas Medical Branch at
2-62     Galveston Special School shall discuss and enter into a memorandum
2-63     of understanding relating to the transfer of property and other
2-64     assets of the Moody State School for Cerebral Palsied Children and
2-65     The University of Texas Medical Branch at Galveston Special School
2-66     to The University of Texas Medical Branch at Galveston and relating
2-67     to the dissolution of the Moody State School for Cerebral Palsied
2-68     Children and The University of Texas Medical Branch at Galveston
2-69     Special School.
 3-1           (d)  Funding that could have been provided to the Moody State
 3-2     School for Cerebral Palsied Children and The University of Texas
 3-3     Medical Branch at Galveston Special School under Subchapter B,
 3-4     Chapter 74, Education Code, may be provided to The University of
 3-5     Texas Medical Branch at Galveston if the medical branch performs
 3-6     the same duties as the Moody State School for Cerebral Palsied
 3-7     Children and The University of Texas Medical Branch at Galveston
 3-8     Special School performed before the repeal of Subchapter B, Chapter
 3-9     74, Education Code.
3-10           SECTION 4.  The importance of this legislation and the
3-11     crowded condition of the calendars in both houses create an
3-12     emergency and an imperative public necessity that the
3-13     constitutional rule requiring bills to be read on three several
3-14     days in each house be suspended, and this rule is hereby suspended.
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