76R11313 CLG-D                           
         By Isett                                              H.B. No. 3681
         Substitute the following for H.B. No. 3681:
         By Hilderbran                                     C.S.H.B. No. 3681
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of competitive bidding for certain functions
 1-3     and components of the Medicaid vendor drug program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,
 1-6     is amended by adding Section 32.0461 to read as follows:
 1-7           Sec. 32.0461.  VENDOR DRUG PROGRAM; COMPETITIVE BIDDING.  (a)
 1-8     In consultation and coordination with the State Council on
 1-9     Competitive Government, the Texas Department of Health shall seek
1-10     competitive bids for the claims processing function of the vendor
1-11     drug program.  The department and the Texas Department of Human
1-12     Services may submit a bid proposal under this section in the same
1-13     manner as a private entity.
1-14           (b)  The Texas Department of Health shall require any person
1-15     seeking to contract for services under this section to comply with
1-16     competitive bidding procedures adopted by that department.
1-17           (c)  The Texas Department of Health may award a contract
1-18     under this section to another person only if the department and the
1-19     State Council on Competitive Government determine that the
1-20     provision of services under that contract would be more cost
1-21     effective and the time to process claims under the contract would
1-22     be the same as or faster than having  employees of the department
1-23     continue to process claims.
1-24           SECTION 2.  This Act takes effect September 1, 1999.
 2-1           SECTION 3.  The importance of this legislation and the
 2-2     crowded condition of the calendars in both houses create an
 2-3     emergency and an imperative public necessity that the
 2-4     constitutional rule requiring bills to be read on three several
 2-5     days in each house be suspended, and this rule is hereby suspended.