1-1 By: Maxey, et al. (Senate Sponsor - Madla) H.B. No. 1691
1-2 (In the Senate - Received from the House May 1, 2001;
1-3 May 2, 2001, read first time and referred to Committee on Health
1-4 and Human Services; May 8, 2001, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 7, Nays 0;
1-6 May 8, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1691 By: Madla
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the Texas Council on Purchasing from People with
1-11 Disabilities.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Sections 122.003(a) and (b), Human Resources Code,
1-14 are amended to read as follows:
1-15 (a) The Texas Council on Purchasing from People with
1-16 Disabilities is composed of nine [the following] members selected
1-17 from the following categories who are appointed by the governor
1-18 with the advice and consent of the senate:
1-19 (1) [three] private citizens conversant with the
1-20 employment needs of persons with disabilities, including blindness,
1-21 and with current experience in the pricing and marketing of goods
1-22 and services;
1-23 (2) [three] representatives of community
1-24 rehabilitation programs that represent different disability groups,
1-25 including persons with blindness, and that provide or seek to
1-26 provide products produced or services performed by persons with
1-27 disabilities; [and]
1-28 (3) [three] representatives of state agencies or
1-29 political subdivisions that purchase a significant amount of
1-30 products produced or services performed by persons with
1-31 disabilities; and
1-32 (4) persons with disabilities.
1-33 (b) The governor shall select at least one member from each
1-34 category prescribed by Subsection (a). To the extent possible,
1-35 the governor shall attempt to ensure each category is
1-36 proportionately represented on the council. Members of the council
1-37 serve staggered terms of six years with the terms of three members
1-38 expiring on January 31 of each odd-numbered year. Members may not
1-39 receive compensation for their service on the council, but they are
1-40 entitled to reimbursement for actual and necessary expenses
1-41 incurred in performing their duties as members.
1-42 SECTION 2. Chapter 122, Human Resources Code, is amended by
1-43 adding Section 122.0055 to read as follows:
1-44 Sec. 122.0055. COUNCIL STAFF. (a) The council may employ
1-45 staff as necessary to carry out the council's duties.
1-46 (b) The staff shall provide:
1-47 (1) management oversight for the administration of
1-48 this chapter; and
1-49 (2) policy guidance and administrative support to the
1-50 council.
1-51 SECTION 3. Chapter 122, Human Resources Code, is amended by
1-52 adding Section 122.0057 to read as follows:
1-53 Sec. 122.0057. ADVISORY COMMITTEE. (a) The council may
1-54 establish an advisory committee if the council considers the
1-55 committee necessary. The membership of the committee is determined
1-56 by the council.
1-57 (b) The council shall specify the purpose and duties of the
1-58 advisory committee, which must include:
1-59 (1) reviewing the effectiveness of the program
1-60 administered under this chapter; and
1-61 (2) recommending procedures to create higher skilled
1-62 and higher paying employment opportunities.
1-63 (c) Members of an advisory committee serve at the will of
1-64 the council. The council may dissolve an advisory committee when
2-1 appropriate.
2-2 (d) The council shall make reasonable attempts to have
2-3 balanced representation on all advisory committees, including
2-4 attempting to seek representation from:
2-5 (1) the Lighthouse for the Blind community
2-6 rehabilitation programs;
2-7 (2) the Goodwill community rehabilitation programs;
2-8 (3) the Texas Department of Mental Health and Mental
2-9 Retardation community rehabilitation program;
2-10 (4) other community rehabilitation programs;
2-11 (5) representatives from central nonprofit agencies;
2-12 (6) representatives of disability advocacy groups;
2-13 (7) government purchasing agents with knowledge of
2-14 this chapter;
2-15 (8) private industry representatives with knowledge of
2-16 this chapter; and
2-17 (9) private citizens who have a disability and have
2-18 knowledge of the sale of products and services.
2-19 SECTION 4. Chapter 122, Human Resources Code, is amended by
2-20 adding Section 122.0095 to read as follows:
2-21 Sec. 122.0095. AGENCY COMPLIANCE; NONPROGRAM PURCHASING
2-22 REPORT. (a) Each state agency that purchases products or services
2-23 through a program under this chapter shall:
2-24 (1) designate an agency employee to ensure that the
2-25 agency complies with this chapter; and
2-26 (2) report to the commission and the council the
2-27 purchase of products or services available from a central nonprofit
2-28 agency or community rehabilitation program under this chapter, but
2-29 purchased from another business that is not a central nonprofit
2-30 agency or community rehabilitation program under this chapter.
2-31 (b) A report under this section may be based on a sampling
2-32 of purchases by the agency in an audit conducted after the
2-33 purchases.
2-34 (c) Information in the report under this section shall be
2-35 included with the exception reports provided under Section 122.016.
2-36 (d) The commission shall post the reports required by
2-37 Subsection (a)(2) on the commission's website.
2-38 SECTION 5. Section 122.012, Human Resources Code, is amended
2-39 by amending Subsection (a) and adding Subsection (d) to read as
2-40 follows:
2-41 (a) The commission shall provide legal[, clerical,
2-42 administrative,] and other necessary support to the council in
2-43 accordance with legislative appropriation. The commission shall
2-44 assign an upper-level management employee to ensure that the
2-45 commission meets the requirements of this chapter.
2-46 (d) The commission shall include the programs administered
2-47 under this chapter in the commission's procurement policy manuals.
2-48 SECTION 6. Section 122.013, Human Resources Code, is amended
2-49 by amending Subsection (a) and adding Subsection (c) to read as
2-50 follows:
2-51 (a) The council shall [may] adopt rules for the
2-52 implementation, extension, administration, or improvement of the
2-53 program authorized by this chapter in accordance with Chapter 2001,
2-54 Government Code.
2-55 (c) The council shall adopt rules to:
2-56 (1) address possible conflicts of interest for central
2-57 nonprofit agencies and community rehabilitation programs;
2-58 (2) establish a process for the certification of
2-59 community rehabilitation programs;
2-60 (3) establish a minimum percentage of disabled labor
2-61 an organization must employ to be considered a community
2-62 rehabilitation program under this chapter; and
2-63 (4) define the terms "value-added" and "direct labor"
2-64 for products manufactured and services provided that are offered
2-65 for sale under this chapter.
2-66 SECTION 7. Section 122.019, Human Resources Code, is amended
2-67 by amending Subsections (a), (d), (e), and (f) and adding
2-68 Subsections (g), (h), and (i) to read as follows:
2-69 (a) The council may select and contract with one or more
3-1 central nonprofit agencies through a request for proposals for a
3-2 period not to exceed five years. Once the selection process is
3-3 completed, the council shall contract with a central nonprofit
3-4 agency to:
3-5 (1) recruit and assist community rehabilitation
3-6 programs in developing and submitting applications for the
3-7 selection of suitable products and services;
3-8 (2) facilitate the distribution of orders among
3-9 community rehabilitation programs;
3-10 (3) manage and coordinate the day-to-day operation of
3-11 the program, including the general administration of contracts with
3-12 community rehabilitation programs; [and]
3-13 (4) promote increased supported employment
3-14 opportunities for persons with disabilities; and
3-15 (5) recruit and assist qualified nonprofit
3-16 organizations that are managed by members of racial minorities,
3-17 women, or persons with disabilities and that are in the process of
3-18 qualifying as community rehabilitation programs.
3-19 (d) At least once during each five-year [two-year] period,
3-20 the council may [shall] review and renegotiate the contract with a
3-21 central nonprofit agency. Not later than the 60th day before the
3-22 date the council adopts or renews a contract, the council shall
3-23 publish notice of the proposed contract in the Texas Register.
3-24 (e) The maximum management fee rate charged by a central
3-25 nonprofit agency for its services must be computed as a percentage
3-26 of the selling price of the product or the contract price of a
3-27 service, must be included in the selling price or contract price,
3-28 and must be paid at the time of sale. The management fee rate must
3-29 be approved by the council and must be reviewed on an annual basis.
3-30 (f) A percentage of the management fee described by
3-31 Subsection (e) shall be paid to the council and is subject to
3-32 Section 122.023. The percentage shall be set by the council in the
3-33 amount necessary to reimburse the general revenue fund for direct
3-34 and reasonable costs incurred by the commission, the council, and
3-35 the council staff in administering the council's [its] duties under
3-36 this chapter.
3-37 (g) The council may terminate a contract with a central
3-38 nonprofit agency if:
3-39 (1) the council finds substantial evidence of the
3-40 central nonprofit agency's noncompliance with contractual
3-41 obligations; and
3-42 (2) the council has provided at least 30 days' notice
3-43 to the central nonprofit agency of the termination of the contract.
3-44 (h) The council may request an audit by the state auditor
3-45 of:
3-46 (1) the management fee set by a central nonprofit
3-47 agency; or
3-48 (2) the financial condition of a central nonprofit
3-49 agency.
3-50 (i) A person may not operate a community rehabilitation
3-51 program and at the same time contract with the council as a central
3-52 nonprofit agency.
3-53 SECTION 8. Chapter 122, Human Resources Code, is amended by
3-54 adding Section 122.0205 to read as follows:
3-55 Sec. 122.0205. ALTERNATIVE DISPUTE RESOLUTION. (a) A
3-56 dispute between the council and a central nonprofit agency or a
3-57 community rehabilitation program shall first be submitted to
3-58 alternative dispute resolution.
3-59 (b) This section does not constitute authorization to sue
3-60 and does not modify the remedies available under other law.
3-61 (c) This section does not limit the council's ability to
3-62 request opinions from the attorney general.
3-63 SECTION 9. Chapter 122, Human Resources Code, is amended by
3-64 adding Section 122.0215 to read as follows:
3-65 Sec. 122.0215. ACCESS TO INFORMATION AND RECORDS. (a) The
3-66 council and the council's staff may access financial or other
3-67 information and records from a central nonprofit agency or a
3-68 community rehabilitation program if the council determines the
3-69 information and records are necessary for the effective
4-1 administration of this chapter and rules adopted under this
4-2 chapter.
4-3 (b) Information and records must be obtained under
4-4 Subsection (a) in recognition of the privacy interest of persons
4-5 employed by central nonprofit agencies or community rehabilitation
4-6 programs. The information and records may not be released or made
4-7 public on subpoena or otherwise, except that release may be made:
4-8 (1) for statistical purposes, but only if a person is
4-9 not identified;
4-10 (2) with the consent of each person identified in the
4-11 information released; or
4-12 (3) regarding a compensation package of any central
4-13 nonprofit agency employee or subcontractor if determined by the
4-14 council to be relevant to the administration of this chapter.
4-15 (c) The council shall adopt rules establishing procedures to
4-16 ensure that the information and records maintained by the council
4-17 under this chapter are kept confidential and protected from release
4-18 to unauthorized persons.
4-19 SECTION 10. Section 122.022(b), Human Resources Code, is
4-20 amended to read as follows:
4-21 (b) The report submitted under this section must [shall]
4-22 include:
4-23 (1) the number of persons with disabilities, according
4-24 to their type of disability, who are employed in community
4-25 rehabilitation programs participating in the programs established
4-26 by this chapter or who are employed by businesses or workshops that
4-27 receive supportive employment from community rehabilitation
4-28 programs;
4-29 (2) the amount of annual wages paid to a person
4-30 participating in the program;
4-31 (3) a summary of the sale of products offered by a
4-32 community rehabilitation program;
4-33 (4) a list of products and services offered by a
4-34 community rehabilitation program; [and]
4-35 (5) the geographic distribution of the community
4-36 rehabilitation programs;
4-37 (6) the number of nondisabled workers who are employed
4-38 in community rehabilitation programs under this chapter; and
4-39 (7) the average and range of weekly earnings for
4-40 disabled and nondisabled workers who are employed in community
4-41 rehabilitation programs under this chapter.
4-42 SECTION 11. This Act takes effect September 1, 2001.
4-43 SECTION 12. The changes in law made by this Act to Section
4-44 122.003, Human Resources Code, apply only to a member who is
4-45 appointed to serve on the Texas Council on Purchasing from People
4-46 with Disabilities on or after the effective date of this Act,
4-47 including a member who is appointed to fill a vacancy in an
4-48 unexpired term on or after the effective date of this Act. A
4-49 member of the Texas Council on Purchasing from People with
4-50 Disabilities who is serving on the council immediately before the
4-51 effective date of this Act is governed for the remainder of the
4-52 member's current term by Section 122.003, Human Resources Code, as
4-53 that statute existed immediately before the effective date of this
4-54 Act, and the former law is continued in effect for that purpose.
4-55 * * * * *