By Maxey, Gallego, Keel, Uher, Eiland,                H.B. No. 1691
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the Texas Council on Purchasing from People with
 1-3     Disabilities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 122.003(a), Human Resources Code, is
 1-6     amended to read as follows:
 1-7           (a)  The Texas Council on Purchasing from People with
 1-8     Disabilities is composed of the following members who are appointed
 1-9     by the governor with the advice and consent of the senate:
1-10                 (1)  three private citizens, at least one of whom must
1-11     be a person with a disability, who are conversant with the
1-12     employment needs of persons with disabilities, including blindness,
1-13     and who have [with] current experience in the pricing and marketing
1-14     of goods and services;
1-15                 (2)  three representatives, at least one of whom must
1-16     be a person with a disability, of community rehabilitation programs
1-17     that represent different disability groups, including persons with
1-18     blindness, and that provide or seek to provide products produced or
1-19     services performed by persons with disabilities; and
1-20                 (3)  three representatives, at least one of whom must
1-21     be a person with a disability, of state agencies or political
1-22     subdivisions that purchase a significant amount of products
1-23     produced or services performed by persons with disabilities.
1-24           SECTION 2. Chapter 122, Human Resources Code, is amended by
1-25     adding Section 122.0055 to read as follows:
 2-1           Sec. 122.0055.  COUNCIL STAFF. (a)  The council may employ
 2-2     staff as necessary to carry out the council's duties.
 2-3           (b)  The staff shall provide:
 2-4                 (1)  management oversight for the administration of
 2-5     this chapter; and
 2-6                 (2)  policy guidance and administrative support to the
 2-7     council.
 2-8           SECTION 3. Chapter 122, Human Resources Code, is amended by
 2-9     adding Section 122.0057 to read as follows:
2-10           Sec. 122.0057.  ADVISORY COMMITTEE. (a)  The council may
2-11     establish an advisory committee if the council considers the
2-12     committee necessary. The membership of the committee is determined
2-13     by the council.
2-14           (b)  The council shall specify the purpose and duties of the
2-15     advisory committee, which must include:
2-16                 (1)  reviewing the effectiveness of the program
2-17     administered under this chapter; and
2-18                 (2)  recommending procedures to create higher skilled
2-19     and higher paying employment opportunities.
2-20           (c)  Members of an advisory committee serve at the will of
2-21     the council.  The council may dissolve an advisory committee when
2-22     appropriate.
2-23           (d)  The council shall make reasonable attempts to have
2-24     balanced representation on all advisory committees, including
2-25     attempting to seek representation from:
2-26                 (1)  the Lighthouse for the Blind community
2-27     rehabilitation programs;
 3-1                 (2)  the Goodwill community rehabilitation programs;
 3-2                 (3)  the Texas Department of Mental Health and Mental
 3-3     Retardation community rehabilitation program;
 3-4                 (4)  other community rehabilitation programs;
 3-5                 (5)  representatives from central nonprofit agencies;
 3-6                 (6)  representatives of disability advocacy groups;
 3-7                 (7)  government purchasing agents with knowledge of
 3-8     this chapter;
 3-9                 (8)  private industry representatives with knowledge of
3-10     this chapter; and
3-11                 (9)  private citizens who have a disability and have
3-12     knowledge of the sale of products and services.
3-13           SECTION 4. Chapter 122, Human Resources Code, is amended by
3-14     adding Section 122.0095 to read as follows:
3-15           Sec. 122.0095.  AGENCY COMPLIANCE; NONPROGRAM PURCHASING
3-16     REPORT. (a)  Each state agency that purchases products or services
3-17     through a program under this chapter shall:
3-18                 (1)  designate an agency employee to ensure that the
3-19     agency complies with this chapter; and
3-20                 (2)  report to the commission and the council the
3-21     purchase of products or services available from a central nonprofit
3-22     agency or community rehabilitation program under this chapter, but
3-23     purchased from another business that is not a central nonprofit
3-24     agency or community rehabilitation program under this chapter.
3-25           (b)  A report under this section may be based on a sampling
3-26     of purchases by the agency in an audit conducted after the
3-27     purchases.
 4-1           (c)  Information in the report under this section shall be
 4-2     included with the exception reports provided under Section 122.016.
 4-3           (d)  The commission shall post the reports required by
 4-4     Subsection (a)(2) on the commission's website.
 4-5           SECTION 5. Section 122.012, Human Resources Code, is amended
 4-6     by amending Subsection (a) and adding Subsection (d) to read as
 4-7     follows:
 4-8           (a)  The commission shall provide legal[, clerical,
 4-9     administrative,] and other necessary support to the council in
4-10     accordance with legislative appropriation. The commission shall
4-11     assign an upper-level management employee to ensure that the
4-12     commission meets the requirements of this chapter.
4-13           (d)  The commission shall include the programs administered
4-14     under this chapter in the commission's procurement policy manuals.
4-15           SECTION 6. Section 122.013, Human Resources Code, is amended
4-16     by amending Subsection (a) and adding Subsection (c) to read as
4-17     follows:
4-18           (a)  The council shall [may] adopt rules for the
4-19     implementation, extension, administration, or improvement of the
4-20     program authorized by this chapter in accordance with Chapter 2001,
4-21     Government Code.
4-22           (c)  The council shall adopt rules to:
4-23                 (1)  address possible conflicts of interest for central
4-24     nonprofit agencies and community rehabilitation programs;
4-25                 (2)  establish a process for the certification of
4-26     community rehabilitation programs;
4-27                 (3)  establish a minimum percentage of disabled labor
 5-1     an organization must employ to be considered a community
 5-2     rehabilitation program under this chapter; and
 5-3                 (4)  define the terms "value-added" and "direct labor"
 5-4     for products manufactured and services provided that are offered
 5-5     for sale under this chapter.
 5-6           SECTION 7. Section 122.019, Human Resources Code, is amended
 5-7     by amending Subsections (a), (d), (e), and (f) and adding
 5-8     Subsections (g), (h), and (i) to read as follows:
 5-9           (a)  The council may select and contract with one or more
5-10     central nonprofit agencies through a request for proposals for a
5-11     period not to exceed five years.  Once the selection process is
5-12     completed, the council shall contract with a central nonprofit
5-13     agency to:
5-14                 (1)  recruit and assist community rehabilitation
5-15     programs in developing and submitting applications for the
5-16     selection of suitable products and services;
5-17                 (2)  facilitate the distribution of orders among
5-18     community rehabilitation programs;
5-19                 (3)  manage and coordinate the day-to-day operation of
5-20     the program, including the general administration of contracts with
5-21     community rehabilitation programs; [and]
5-22                 (4)  promote increased supported employment
5-23     opportunities for persons with disabilities; and
5-24                 (5)  recruit and assist qualified nonprofit
5-25     organizations that are managed by members of racial minorities,
5-26     women, or persons with disabilities and that are in the process of
5-27     qualifying as community rehabilitation programs.
 6-1           (d)  At least once during each five-year [two-year] period,
 6-2     the council may [shall] review and renegotiate the contract with a
 6-3     central nonprofit agency.  Not later than the 60th day before the
 6-4     date the council adopts or renews a contract, the council shall
 6-5     publish notice of the proposed contract in the Texas Register.
 6-6           (e)  The maximum management fee rate charged by a central
 6-7     nonprofit agency for its services must be computed as a percentage
 6-8     of the selling price of the product or the contract price of a
 6-9     service, must be included in the selling price or contract price,
6-10     and must be paid at the time of sale.  The management fee rate must
6-11     be approved by the council and must be reviewed on an annual basis.
6-12           (f)  A percentage of the management fee described by
6-13     Subsection (e) shall be paid to the council and is subject to
6-14     Section 122.023.  The percentage shall be set by the council in the
6-15     amount necessary to reimburse the general revenue fund for direct
6-16     and reasonable costs incurred by the commission, the council, and
6-17     the council staff in administering the council's [its] duties under
6-18     this chapter.
6-19           (g)  The council may terminate a contract with a central
6-20     nonprofit agency if:
6-21                 (1)  the council finds substantial evidence of the
6-22     central nonprofit agency's noncompliance with contractual
6-23     obligations; and
6-24                 (2)  the council has provided at least 30 days' notice
6-25     to the central nonprofit agency of the termination of the contract.
6-26           (h)  The council may request an audit by the state auditor
6-27     of:
 7-1                 (1)  the management fee set by a central nonprofit
 7-2     agency; or
 7-3                 (2)  the financial condition of a central nonprofit
 7-4     agency.
 7-5           (i)  A person may not operate a community rehabilitation
 7-6     program and at the same time contract with the council as a central
 7-7     nonprofit agency.
 7-8           SECTION 8. Chapter 122, Human Resources Code, is amended by
 7-9     adding Section 122.0205 to read as follows:
7-10           Sec. 122.0205.  ALTERNATIVE DISPUTE RESOLUTION. (a)  A
7-11     dispute between the council and a central nonprofit agency or a
7-12     community rehabilitation program shall first be submitted to
7-13     alternative dispute resolution.
7-14           (b)  This section does not constitute authorization to sue
7-15     and does not modify the remedies available under other law.
7-16           (c)  This section does not limit the council's ability to
7-17     request opinions from the attorney general.
7-18           SECTION 9. Chapter 122, Human Resources Code, is amended by
7-19     adding Section 122.0215 to read as follows:
7-20           Sec. 122.0215.  ACCESS TO INFORMATION AND RECORDS. (a)  The
7-21     council and the council's staff may access financial or other
7-22     information and records from a central nonprofit agency or a
7-23     community rehabilitation program if the council determines the
7-24     information and records are necessary for the effective
7-25     administration of this chapter and rules adopted under this
7-26     chapter.
7-27           (b)  Information and records must be obtained under
 8-1     Subsection (a) in recognition of the privacy interest of persons
 8-2     employed by central nonprofit agencies or community rehabilitation
 8-3     programs.  The information and records may not be released or made
 8-4     public on subpoena or otherwise, except that release may be made:
 8-5                 (1)  for statistical purposes, but only if a person is
 8-6     not identified;
 8-7                 (2)  with the consent of each person identified in the
 8-8     information released; or
 8-9                 (3)  regarding a compensation package of any central
8-10     nonprofit agency employee or subcontractor if determined by the
8-11     council to be relevant to the administration of this chapter.
8-12           (c)  The council shall adopt rules establishing procedures to
8-13     ensure that the information and records maintained by the council
8-14     under this chapter are kept confidential and protected from release
8-15     to unauthorized persons.
8-16           SECTION 10. Section 122.022(b), Human Resources Code, is
8-17     amended to read as follows:
8-18           (b)  The report submitted under this section must [shall]
8-19     include:
8-20                 (1)  the number of persons with disabilities, according
8-21     to their type of disability, who are employed in community
8-22     rehabilitation programs participating in the programs established
8-23     by this chapter or who are employed by businesses or workshops that
8-24     receive supportive employment from community rehabilitation
8-25     programs;
8-26                 (2)  the amount of annual wages paid to a person
8-27     participating in the program;
 9-1                 (3)  a summary of the sale of products offered by a
 9-2     community rehabilitation program;
 9-3                 (4)  a list of products and services offered by a
 9-4     community rehabilitation program;  [and]
 9-5                 (5)  the geographic distribution of the community
 9-6     rehabilitation programs;
 9-7                 (6)  the number of nondisabled workers who are employed
 9-8     in community rehabilitation programs under this chapter; and
 9-9                 (7)  the average and range of weekly earnings for
9-10     disabled and nondisabled workers who are employed in community
9-11     rehabilitation programs under this chapter.
9-12           SECTION 11. This Act takes effect September 1, 2001.
9-13           SECTION 12.  The changes in law made by this Act to Section
9-14     122.003, Human Resources Code, apply only to a member who is
9-15     appointed to serve on the Texas Council on Purchasing from People
9-16     with Disabilities on or after the effective date of this Act,
9-17     including a member who is appointed to fill a vacancy in an
9-18     unexpired term on or after the effective date of this Act.  A
9-19     member of the Texas Council on Purchasing from People with
9-20     Disabilities who is serving on the council immediately before the
9-21     effective date of this Act is governed for the remainder of the
9-22     member's current term by Section 122.003, Human Resources Code, as
9-23     that statute existed immediately before the effective date of this
9-24     Act, and the former law is continued in effect for that purpose.