1-1     By:  Zaffirini                                        S.B. No. 1585
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Human Services;
 1-4     April 8, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 4, Nays 0; April 8, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1585               By:  Zaffirini
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the use of competitive bidding for certain functions
1-11     and components of the Medicaid vendor drug program.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,
1-14     is amended by adding Section 32.0461 to read as follows:
1-15           Sec. 32.0461.  VENDOR DRUG PROGRAM; COMPETITIVE BIDDING.
1-16     (a)  In consultation and coordination with the State Council on
1-17     Competitive Government, the Texas Department of Health shall seek
1-18     competitive bids for the claims processing function of the vendor
1-19     drug program.  The department and the Texas Department of Human
1-20     Services may submit a bid proposal under this section in the same
1-21     manner as a private entity.
1-22           (b)  The Texas Department of Health shall require any person
1-23     seeking to contract for services under this section to comply with
1-24     competitive bidding procedures adopted by that department.
1-25           (c)  The Texas Department of Health may award a contract
1-26     under this section to another person only if the department and the
1-27     State Council on Competitive Government determine that the
1-28     provision of services under that contract would be more
1-29     cost-effective and the time to process claims under the contract
1-30     would be the same as or faster than having employees of the
1-31     department continue to process claims.
1-32           SECTION 2.  This Act takes effect September 1, 1999.
1-33           SECTION 3.  The importance of this legislation and the
1-34     crowded condition of the calendars in both houses create an
1-35     emergency and an imperative public necessity that the
1-36     constitutional rule requiring bills to be read on three several
1-37     days in each house be suspended, and this rule is hereby suspended.
1-38                                  * * * * *