1-1     By:  Brown                                             S.B. No. 347
 1-2           (In the Senate - Filed January 23, 2001; January 24, 2001,
 1-3     read first time and referred to Committee on Criminal Justice;
 1-4     February 20, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0;
 1-6     February 20, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 347                     By:  West
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the provision of health care, including prescription
1-11     drugs, for persons confined in institutions operated by the Texas
1-12     Department of Criminal Justice.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subsections (a) and (c), Section 501.147,
1-15     Government Code, are amended to read as follows:
1-16           (a)  The committee may enter into a contract on behalf of the
1-17     department to fully implement the managed health care plan under
1-18     this subchapter.  A contract entered into under this subsection
1-19     must include provisions necessary to ensure that The University of
1-20     Texas Medical Branch at Galveston is eligible for and makes
1-21     reasonable efforts to participate in the purchase of prescription
1-22     drugs under  Section 340B, Public Health Service Act (42 U.S.C.
1-23     Section 256b).
1-24           (c)  In contracting for implementation of the managed health
1-25     care plan, the committee, to the extent possible, shall integrate
1-26     the managed health care provider network with the public medical
1-27     schools of this state and the component and affiliated hospitals of
1-28     those medical schools.  The contract must authorize The University
1-29     of Texas Medical Branch at Galveston to contract directly with the
1-30     Texas Tech University Health Sciences Center for the provision of
1-31     health care services.  The Texas Tech University Health Sciences
1-32     Center shall cooperate with The University of Texas Medical Branch
1-33     at Galveston in its efforts to participate in the purchase of
1-34     prescription drugs under Section 340B, Public Health Service Act
1-35     (42 U.S.C. Section 256b).
1-36           SECTION 2.  Subsection (a), Section 501.148, Government Code,
1-37     is amended to read as follows:
1-38           (a)  The committee shall:
1-39                 (1)  develop the contracts for health care services in
1-40     consultation with the department and the health care providers;
1-41                 (2)  determine a capitation rate reflecting the true
1-42     cost of correctional health care, including necessary catastrophic
1-43     reserves;
1-44                 (3)  monitor and develop reports on general quality of
1-45     care issues;
1-46                 (4)  act as an independent third party in the
1-47     allocation of money to inmate health care providers, including the
1-48     allocation of money between The University of Texas Medical Branch
1-49     at Galveston and the Texas Tech University Health Sciences Center;
1-50                 (5)  act as an independent third party for the purpose
1-51     of dispute resolution in the event of a disagreement relating to
1-52     inmate health care services between:
1-53                       (A)  the department and the health care
1-54     providers; or
1-55                       (B)  The University of Texas Medical Branch at
1-56     Galveston and the Texas Tech University Health Sciences Center; and
1-57                 (6)  enforce compliance with contract provisions,
1-58     including requiring corrective action if care does not meet
1-59     expectations as determined by quality of care monitoring
1-60     activities.
1-61           SECTION 3.  The Correctional Managed Health Care Committee,
1-62     in cooperation with the Texas Department of Criminal Justice, shall
1-63     amend any existing contract for the implementation of the managed
1-64     health care plan established under Section 501.146, Government
 2-1     Code, as necessary to meet the requirements imposed on the contract
 2-2     under Subsections (a) and (c), Section 501.147, Government Code, as
 2-3     amended by this Act, not later than January 1, 2002.
 2-4           SECTION 4.  This Act takes effect September 1, 2001.
 2-5                                  * * * * *