By:  Zaffirini                                        S.B. No. 1585
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the use of competitive bidding for certain functions
 1-2     and components of the Medicaid vendor drug program.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,
 1-5     is amended by adding Section 32.0461 to read as follows:
 1-6           Sec. 32.0461.  VENDOR DRUG PROGRAM; COMPETITIVE BIDDING.
 1-7     (a)  In consultation and coordination with the State Council on
 1-8     Competitive Government, the Texas Department of Health shall seek
 1-9     competitive bids for the claims processing function of the vendor
1-10     drug program.  The department and the Texas Department of Human
1-11     Services may submit a bid proposal under this section in the same
1-12     manner as a private entity.
1-13           (b)  The Texas Department of Health shall require any person
1-14     seeking to contract for services under this section to comply with
1-15     competitive bidding procedures adopted by that department.
1-16           (c)  The Texas Department of Health may award a contract
1-17     under this section to another person only if the department and the
1-18     State Council on Competitive Government determine that the
1-19     provision of services under that contract would be more
1-20     cost-effective and the time to process claims under the contract
1-21     would be the same as or faster than having employees of the
1-22     department continue to process claims.
1-23           SECTION 2.  This Act takes effect September 1, 1999.
1-24           SECTION 3.  The importance of this legislation and the
 2-1     crowded condition of the calendars in both houses create an
 2-2     emergency and an imperative public necessity that the
 2-3     constitutional rule requiring bills to be read on three several
 2-4     days in each house be suspended, and this rule is hereby suspended.