By Duncan                                              S.B. No. 641
         77R5562 JSA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the acquisition of goods and services by institutions
 1-3     of higher education.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 51.9335(a)-(e), Education Code, are
 1-6     amended to read as follows:
 1-7           (a)  An institution of higher education [A medical and dental
 1-8     unit] may acquire goods or services by the method that provides the
 1-9     best value to the institution [unit], including:
1-10                 (1)  competitive bidding;
1-11                 (2)  competitive sealed proposals;
1-12                 (3)  a catalogue purchase;
1-13                 (4)  a group purchasing program; or
1-14                 (5)  an open market contract.
1-15           (b)  In determining what is the best value to an institution
1-16     of higher education [a medical and dental unit], the institution
1-17     [unit] shall consider:
1-18                 (1)  the purchase price;
1-19                 (2)  the reputation of the vendor and of the vendor's
1-20     goods or services;
1-21                 (3)  the quality of the vendor's goods or services;
1-22                 (4)  the extent to which the goods or services meet the
1-23     institution's [unit's] needs;
1-24                 (5)  the vendor's past relationship with the
 2-1     institution [unit];
 2-2                 (6)  the impact on the ability of the institution
 2-3     [unit] to comply with laws and rules relating to historically
 2-4     underutilized businesses;
 2-5                 (7)  the total long-term cost to the institution [unit]
 2-6     of acquiring the vendor's goods or services; and
 2-7                 (8)  any other relevant factor that a private business
 2-8     entity would consider in selecting a vendor.
 2-9           (c)  The state auditor may audit purchases of goods or
2-10     services by an institution of higher education [a medical and
2-11     dental unit].
2-12           (d)  To the extent of any conflict, this section prevails
2-13     over any other law, including Chapters 2155, 2156, 2157, 2158, and
2-14     2170, Government Code, except a law or rule relating to contracting
2-15     with historically underutilized businesses.  An institution of
2-16     higher education may, but is not required to, acquire goods or
2-17     services as provided by Chapters 2155, 2156, 2157, 2158, and 2170,
2-18     Government Code.
2-19           (e)  In this section, "institution of higher education"
2-20     ["medical and dental unit"] has the meaning assigned by Section
2-21     61.003 and includes a school of veterinary medicine and a health
2-22     care facility operated by a medical and dental unit, except that
2-23     the term does not include The University of Texas M. D. Anderson
2-24     Cancer Center.
2-25           SECTION 2. Subchapter B, Chapter 497, Government Code, is
2-26     amended by adding Section 497.0211 to read as follows:
2-27           Sec. 497.0211.  This subchapter does not apply to an
 3-1     institution of higher education, as defined by Section 61.003,
 3-2     Education Code.
 3-3           SECTION 3. Section 2155.067(b), Government Code, is amended
 3-4     to read as follows:
 3-5           (b)  The agency head or the presiding officer of the agency's
 3-6     governing body must sign the written justification.  [For an
 3-7     institution of higher education, the individual designated by the
 3-8     president or governing body as purchasing officer for the
 3-9     institution may sign the written justification.]
3-10           SECTION 4. Section 2155.268(a), Government Code, is amended
3-11     to read as follows:
3-12           (a)  A state agency may not maintain and use its own bidders
3-13     list.  The prohibition of this subsection does not apply to the
3-14     Texas Department of Transportation [or to an institution of higher
3-15     education as defined by Section 61.003, Education Code, but an
3-16     institution of higher education should use the master bidders list
3-17     when possible].
3-18           SECTION 5. Sections 2155.133, 2155.134, and 2155.135,
3-19     Government Code, are repealed.
3-20           SECTION 6.  This Act takes effect immediately if it receives
3-21     a vote of two-thirds of all the members elected to each house, as
3-22     provided by Section 39, Article III, Texas Constitution.  If this
3-23     Act does not receive the vote necessary for immediate effect, this
3-24     Act takes effect September 1, 2001.