77R10251 YDB-D                           
         By Maxey, Gallego, Keel, Uher, Eiland,                H.B. No. 1691
            et al.
         Substitute the following for H.B. No. 1691:
         By Naishtat                                       C.S.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. Sections 122.003(a) and (b), Human Resources Code,
 1-6     are amended to read as follows:
 1-7           (a)  The Texas Council on Purchasing from People with
 1-8     Disabilities is composed of nine [the following] members  selected
 1-9     from the following categories who are appointed by the governor
1-10     with the advice and consent of the senate:
1-11                 (1)  [three] private citizens conversant with the
1-12     employment needs of persons with disabilities, including blindness,
1-13     and with current experience in the pricing and marketing of goods
1-14     and services;
1-15                 (2)  [three] representatives of community
1-16     rehabilitation programs that represent different disability groups,
1-17     including persons with blindness, and that provide or seek to
1-18     provide products produced or services performed by persons with
1-19     disabilities; [and]
1-20                 (3)  [three] representatives of state agencies or
1-21     political subdivisions that purchase a significant amount of
1-22     products produced or services performed by persons with
1-23     disabilities; and
1-24                 (4)  persons with disabilities.
 2-1           (b)  The governor shall select at least one member from each
 2-2     category  prescribed by Subsection (a).  To the extent possible,
 2-3     the governor shall attempt to ensure each category is
 2-4     proportionately represented on the council. Members of the council
 2-5     serve staggered terms of six years with the terms of three members
 2-6     expiring on January 31 of each odd-numbered year.  Members may not
 2-7     receive compensation for their service on the council, but they are
 2-8     entitled to reimbursement for actual and necessary expenses
 2-9     incurred in performing their duties as members.
2-10           SECTION 2. Chapter 122, Human Resources Code, is amended by
2-11     adding Section 122.0055 to read as follows:
2-12           Sec. 122.0055.  COUNCIL STAFF. (a)  The council may employ
2-13     staff as necessary to carry out the council's duties.
2-14           (b)  The staff shall provide:
2-15                 (1)  management oversight for the administration of
2-16     this chapter; and
2-17                 (2)  policy guidance and administrative support to the
2-18     council.
2-19           SECTION 3. Chapter 122, Human Resources Code, is amended by
2-20     adding Section 122.0057 to read as follows:
2-21           Sec. 122.0057.  ADVISORY COMMITTEE. (a)  The council may
2-22     establish an advisory committee if the council considers the
2-23     committee necessary. The membership of the committee is determined
2-24     by the council.
2-25           (b)  The council shall specify the purpose and duties of the
2-26     advisory committee, which must include:
2-27                 (1)  reviewing the effectiveness of the program
 3-1     administered under this chapter; and
 3-2                 (2)  recommending procedures to create higher skilled
 3-3     and higher paying employment opportunities.
 3-4           (c)  Members of an advisory committee serve at the will of
 3-5     the council.  The council may dissolve an advisory committee when
 3-6     appropriate.
 3-7           SECTION 4. Chapter 122, Human Resources Code, is amended by
 3-8     adding Section 122.0095 to read as follows:
 3-9           Sec. 122.0095.  AGENCY COMPLIANCE; NONPROGRAM PURCHASING
3-10     REPORT. (a)  Each state agency that purchases products or services
3-11     through a program under this chapter shall:
3-12                 (1)  designate an agency employee to ensure that the
3-13     agency complies with this chapter; and
3-14                 (2)  report to the commission and the council the
3-15     purchase of products or services available from a central nonprofit
3-16     agency or community rehabilitation program under this chapter, but
3-17     purchased from another business that is not a central nonprofit
3-18     agency or community rehabilitation program under this chapter.
3-19           (b)  A report under this section may be based on a sampling
3-20     of purchases by the agency in an audit conducted after the
3-21     purchases.
3-22           (c)  Information in the report under this section shall be
3-23     included with the exception reports provided under Section 122.016.
3-24           (d)  The commission shall post the reports required by
3-25     Subsection (a)(2) on the commission's website.
3-26           SECTION 5. Section 122.012, Human Resources Code, is amended
3-27     by amending Subsection (a) and adding Subsection (d) to read as
 4-1     follows:
 4-2           (a)  The commission shall provide legal[, clerical,
 4-3     administrative,] and other necessary support to the council in
 4-4     accordance with legislative appropriation. The commission shall
 4-5     assign an upper-level management employee to ensure that the
 4-6     commission meets the requirements of this chapter.
 4-7           (d)  The commission shall include the programs administered
 4-8     under this chapter in the commission's procurement policy manuals.
 4-9           SECTION 6. Section 122.013, Human Resources Code, is amended
4-10     by amending Subsection (a)  and adding Subsections (c) and (d) to
4-11     read as follows:
4-12           (a)  The council shall [may] adopt rules for the
4-13     implementation, extension, administration, or improvement of the
4-14     program authorized by this chapter in accordance with Chapter 2001,
4-15     Government Code.
4-16           (c)  The council shall adopt rules to:
4-17                 (1)  address possible conflicts of interest for central
4-18     nonprofit agencies and community rehabilitation programs;
4-19                 (2)  establish a process for the certification of
4-20     community rehabilitation programs;
4-21                 (3)  establish a minimum percentage of disabled labor
4-22     an organization must employ to be considered a community
4-23     rehabilitation program under this chapter; and
4-24                 (4)  define the terms "value-added" and "direct labor"
4-25     for products manufactured and services provided that are offered
4-26     for sale under this chapter.
4-27           (d)  The council may adopt rules to encourage cooperative
 5-1     efforts between community rehabilitation programs and other
 5-2     nonprofit or for-profit organizations.
 5-3           SECTION 7. Section 122.019, Human Resources Code, is amended
 5-4     by amending Subsections (a), (d), (e), and (f) and adding
 5-5     Subsections (g) and (h) to read as follows:
 5-6           (a)  The council may select and contract with one or more
 5-7     central nonprofit agencies through a competitive bidding process or
 5-8     a request for proposals for a period not to exceed five years.
 5-9     Once the selection process is completed, the council shall contract
5-10     with a central nonprofit agency to:
5-11                 (1)  recruit and assist community rehabilitation
5-12     programs in developing and submitting applications for the
5-13     selection of suitable products and services;
5-14                 (2)  facilitate the distribution of orders among
5-15     community rehabilitation programs;
5-16                 (3)  manage and coordinate the day-to-day operation of
5-17     the program, including the general administration of contracts with
5-18     community rehabilitation programs; and
5-19                 (4)  promote increased supported employment
5-20     opportunities for persons with disabilities.
5-21           (d)  At least once during each five-year [two-year] period,
5-22     the council may [shall] review and renegotiate the contract with a
5-23     central nonprofit agency.  Not later than the 60th day before the
5-24     date the council adopts or renews a contract, the council shall
5-25     publish notice of the proposed contract in the Texas Register.
5-26           (e)  The maximum management fee rate charged by a central
5-27     nonprofit agency for its services must be computed as a percentage
 6-1     of the selling price of the product or the contract price of a
 6-2     service, must be included in the selling price or contract price,
 6-3     and must be paid at the time of sale.  The management fee rate must
 6-4     be approved by the council and must be reviewed on an annual basis.
 6-5           (f)  A percentage of the management fee described by
 6-6     Subsection (e) shall be paid to the council and is subject to
 6-7     Section 122.023.  The percentage shall be set by the council in the
 6-8     amount necessary to reimburse the general revenue fund for direct
 6-9     and reasonable costs incurred by the commission, the council, and
6-10     the council staff in administering the council's [its] duties under
6-11     this chapter.
6-12           (g)  The council may terminate a contract with a central
6-13     nonprofit agency if:
6-14                 (1)  the council finds substantial evidence of the
6-15     central nonprofit agency's noncompliance with contractual
6-16     obligations; and
6-17                 (2)  the council has provided at least 30 days' notice
6-18     to the central nonprofit agency of the termination of the contract.
6-19           (h)  The council may request an audit by the state auditor
6-20     of:
6-21                 (1)  the management fee set by a central nonprofit
6-22     agency; or
6-23                 (2)  the financial condition of a central nonprofit
6-24     agency.
6-25           SECTION 8. Chapter 122, Human Resources Code, is amended by
6-26     adding Section 122.0205 to read as follows:
6-27           Sec. 122.0205.  ALTERNATIVE DISPUTE RESOLUTION. (a)  A
 7-1     dispute between the council and a central nonprofit agency or a
 7-2     community rehabilitation program shall first be submitted to
 7-3     alternative dispute resolution.
 7-4           (b)  This section does not constitute authorization to sue
 7-5     and does not modify the remedies available under other law.
 7-6           (c)  This section does not limit the council's ability to
 7-7     request opinions from the attorney general.
 7-8           SECTION 9. Chapter 122, Human Resources Code, is amended by
 7-9     adding Section 122.0215 to read as follows:
7-10           Sec. 122.0215.  ACCESS TO INFORMATION AND RECORDS. (a)  The
7-11     council and the council's staff may access financial or other
7-12     information and records from a central nonprofit agency or a
7-13     community rehabilitation program if the council determines the
7-14     information and records are necessary for the effective
7-15     administration of this chapter and rules adopted under this
7-16     chapter.
7-17           (b)  Information and records must be obtained under
7-18     Subsection (a) in recognition of the privacy interest of persons
7-19     employed by central nonprofit agencies or community rehabilitation
7-20     programs.  The information and records may not be released or made
7-21     public on subpoena or otherwise, except that release may be made:
7-22                 (1)  for statistical purposes, but only if a person is
7-23     not identified;
7-24                 (2)  with the consent of each person identified in the
7-25     information released; or
7-26                 (3)  regarding a compensation package of any central
7-27     nonprofit agency employee or subcontractor if determined by the
 8-1     council to be relevant to the administration of this chapter.
 8-2           (c)  The council shall adopt rules establishing procedures to
 8-3     ensure that the information and records maintained by the council
 8-4     under this chapter are kept confidential and protected from release
 8-5     to unauthorized persons.
 8-6           SECTION 10. Section 122.022(b), Human Resources Code, is
 8-7     amended to read as follows:
 8-8           (b)  The report submitted under this section must [shall]
 8-9     include:
8-10                 (1)  the number of persons with disabilities, according
8-11     to their type of disability, who are employed in community
8-12     rehabilitation programs participating in the programs established
8-13     by this chapter or who are employed by businesses or workshops that
8-14     receive supportive employment from community rehabilitation
8-15     programs;
8-16                 (2)  the amount of annual wages paid to a person
8-17     participating in the program;
8-18                 (3)  a summary of the sale of products offered by a
8-19     community rehabilitation program;
8-20                 (4)  a list of products and services offered by a
8-21     community rehabilitation program;  [and]
8-22                 (5)  the geographic distribution of the community
8-23     rehabilitation programs;
8-24                 (6)  the number of nondisabled workers who are employed
8-25     in community rehabilitation programs under this chapter; and
8-26                 (7)  the average and range of weekly earnings for
8-27     disabled and nondisabled workers who are employed in community
 9-1     rehabilitation programs under this chapter.
 9-2           SECTION 11. This Act takes effect September 1, 2001.
 9-3           SECTION 12.  The changes in law made by this Act to Section
 9-4     122.003, Human Resources Code, apply only to a member who is
 9-5     appointed to serve on the Texas Council on Purchasing from People
 9-6     with Disabilities on or after the effective date of this Act,
 9-7     including a member who is appointed to fill a vacancy in an
 9-8     unexpired term on or after the effective date of this Act.  A
 9-9     member of the Texas Council on Purchasing from People with
9-10     Disabilities who is serving on the council immediately before the
9-11     effective date of this Act is governed for the remainder of the
9-12     member's current term by Section 122.003, Human Resources Code, as
9-13     that statute existed immediately before the effective date of this
9-14     Act, and the former law is continued in effect for that purpose.