By:  Jackson                                          S.B. No. 1655
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the administration and responsibilities of The
 1-2     University of Texas Medical Branch at Galveston.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter A, Chapter 74, Education Code, is
 1-5     amended by adding Sections 74.005, 74.006, 74.007, and 74.008 to
 1-6     read as follows:
 1-7           Sec. 74.005.  TREATMENT OF INDIGENT PATIENTS.  (a)  The
 1-8     medical branch may enter into a contract with a county, public
 1-9     hospital, or hospital district to provide treatment to residents of
1-10     the county or service area.
1-11           (b)  The liability of a county, public hospital, or hospital
1-12     district to the medical branch for the treatment of residents of
1-13     the county or service area by the medical branch may not exceed the
1-14     responsibility of a county as provided for in Chapter 61, Health
1-15     and Safety Code, unless agreed to by the county, public hospital,
1-16     or hospital district in a contract entered into under this section.
1-17           (c)  If a contract is entered into under this section, the
1-18     liability of a county, public hospital, or hospital district under
1-19     the contract shall take into consideration the actual costs of the
1-20     medical branch in providing health care services pursuant to the
1-21     contract, but in no event shall the liability exceed such costs.
1-22           (d)  If a contract is not entered into under this section,
 2-1     the medical branch must receive the approval of a county, public
 2-2     hospital, or hospital district before providing nonemergency health
 2-3     care services to an eligible resident of the county or service
 2-4     area.  If that approval is not received, the county, public
 2-5     hospital, or hospital district is not liable to the medical branch
 2-6     for any nonemergency care provided to the resident.  If approval is
 2-7     received, the county, public hospital, or hospital district is
 2-8     liable to the medical branch under Subsection (b) for the services
 2-9     provided by the medical branch to the resident.
2-10           (e)  In this section, "eligible resident," "hospital
2-11     district," "public hospital," and "service area" have the same
2-12     meanings assigned by Chapter 61, Health and Safety Code.
2-13           Sec. 74.006.  SUFFICIENCY OF FUNDS, FEES, AND PATIENT BASE.
2-14     The medical branch shall take such reasonable and necessary
2-15     administrative and management actions as are needed to ensure that
2-16     the mission and strategic plan of the medical branch can be
2-17     achieved within the total amount of funds received by the medical
2-18     branch from all sources, including but not limited to institutional
2-19     and local funds and hospital and clinic fees.
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)  The medical branch may not rehire an employee receiving
 3-1     a retirement incentive under this section without the specific
 3-2     approval of the president.
 3-3           Sec. 74.008.  ACQUISITION OF GOODS AND SERVICES.  (a)  The
 3-4     medical branch may acquire goods or services by the method that
 3-5     provides the best value to the medical branch, including:
 3-6                 (1)  competitive bidding;
 3-7                 (2)  competitive sealed proposals;
 3-8                 (3)  catalogue purchase;
 3-9                 (4)  a group purchasing program; or
3-10                 (5)  an open market contract.
3-11           (b)  In determining what is the best value to the medical
3-12     branch, the medical branch shall consider:
3-13                 (1)  the purchase price;
3-14                 (2)  the reputation of the vendor and of the vendor's
3-15     goods or services;
3-16                 (3)  the quality of the vendor's goods or services;
3-17                 (4)  the extent to which the goods or services meet the
3-18     medical branch's needs;
3-19                 (5)  the vendor's past relationship with the medical
3-20     branch;
3-21                 (6)  the impact on the ability of the medical branch to
3-22     comply with laws and rules relating to historically underutilized
3-23     businesses;
3-24                 (7)  the total long-term cost to the medical branch of
3-25     acquiring the vendor's goods or services; and
3-26                 (8)  any other relevant factor that a private business
 4-1     entity would consider in selecting a vendor.
 4-2           (c)  The state auditor may audit purchases of goods or
 4-3     services by the medical branch.
 4-4           (d)  The medical branch may adopt rules and procedures for
 4-5     the acquisition of goods or services.
 4-6           (e)  To the extent of any conflict, this section prevails
 4-7     over any other law relating to the purchasing of goods and services
 4-8     except a law relating to contracting with historically
 4-9     underutilized businesses.
4-10           (f)  Except as otherwise provided by this section, Subtitle
4-11     D, Title 10, Government Code, and Chapter 2254, Government Code, do
4-12     not apply to purchases of goods and services made under this
4-13     section.
4-14           SECTION 2.  Subchapter B, Chapter 74, Education Code, is
4-15     repealed.
4-16           SECTION 3.  (a)  Section 1 of this Act takes effect September
4-17     1, 1999.
4-18           (b)  Section 2 of this Act takes effect September 1, 2000.
4-19           (c)  Not later than January 1, 2000, The University of Texas
4-20     Medical Branch at Galveston, the Moody State School for Cerebral
4-21     Palsied Children, and The University of Texas Medical Branch at
4-22     Galveston Special School shall discuss and enter into a memorandum
4-23     of understanding relating to the transfer of property and other
4-24     assets of the Moody State School for Cerebral Palsied Children and
4-25     The University of Texas Medical Branch at Galveston Special School
4-26     to The University of Texas Medical Branch at Galveston and
 5-1     providing for the dissolution of the Moody State School for
 5-2     Cerebral Palsied Children and The University of Texas Medical
 5-3     Branch at Galveston Special School.
 5-4           (d)  Funding that could have been provided to the Moody State
 5-5     School for Cerebral Palsied Children and The University of Texas
 5-6     Medical Branch at Galveston Special School under Subchapter B,
 5-7     Chapter 74, Education Code, may be provided to The University of
 5-8     Texas Medical Branch at Galveston if the medical branch performs
 5-9     the same duties as the Moody State School for Cerebral Palsied
5-10     Children and The University of Texas Medical Branch at Galveston
5-11     Special School performed before the repeal of Subchapter B, Chapter
5-12     74, Education Code.
5-13           SECTION 4.  The importance of this legislation and the
5-14     crowded condition of the calendars in both houses create an
5-15     emergency and an imperative public necessity that the
5-16     constitutional rule requiring bills to be read on three several
5-17     days in each house be suspended, and this rule is hereby suspended.