78S10232 DLF-D

By:  Delisi                                                       H.B. No. 70 



A BILL TO BE ENTITLED

AN ACT

relating to attorney general review of certain contracts for health 
care purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 531, Government Code, is 
amended by adding Section 531.018 to read as follows:
	Sec. 531.018.  CERTAIN CONTRACTS FOR HEALTH CARE PURPOSES; 
REVIEW BY ATTORNEY GENERAL.  (a)  This section applies to any 
contract with a contract amount of $50 million or more:
		(1)  under which a person provides goods or services in 
connection with the provision of medical or health care services, 
coverage, or benefits; and
		(2)  entered into by the person and:                                   
			(A)  the commission;                                                  
			(B)  a health and human services agency; or                           
			(C)  any other state agency under the jurisdiction 
of the commission.
	(b)  Notwithstanding any other law, before a contract 
described by Subsection (a) may be entered into by the agency, a 
representative of the office of the attorney general shall review 
the form and terms of the contract and may make recommendations to 
the agency for changes to the contract. The office of the attorney 
general shall report any recommendations made under this subsection 
to the governor, the lieutenant governor, and the speaker of the 
house of representatives.
	(c)  An agency described by Subsection (a)(2) must notify the 
office of the attorney general at the time the agency is initiating 
the applicable competitive bidding or other applicable contracting 
process.  A representative of the office of the attorney general may 
participate in negotiations or discussions with proposed 
contractors and may be physically present during those negotiations 
or discussions.
	SECTION 2.  Subchapter A, Chapter 811, Government Code, is 
amended by adding Section 811.009 to read as follows:
	Sec. 811.009.  CERTAIN CONTRACTS FOR HEALTH CARE PURPOSES; 
REVIEW BY ATTORNEY GENERAL.  (a)  This section applies to any 
contract with a contract amount of $50 million or more:
		(1)  under which a person provides goods or services in 
connection with the provision of medical or health care services, 
coverage, or benefits; and
		(2)  entered into by the person and the retirement 
system.           
	(b)  Notwithstanding any other law, before a contract 
described by Subsection (a) may be entered into by the retirement 
system, a representative of the office of the attorney general 
shall review the form and terms of the contract and may make 
recommendations to the retirement system for changes to the 
contract. The office of the attorney general shall report any 
recommendations made under this subsection to the governor, the 
lieutenant governor, and the speaker of the house of 
representatives.
	(c)  The retirement system must notify the office of the 
attorney general at the time the system is initiating the 
applicable competitive bidding or other applicable contracting 
process.  A representative of the office of the attorney general may 
participate in negotiations or discussions with proposed 
contractors and may be physically present during those negotiations 
or discussions.
	SECTION 3.  Subchapter A, Chapter 821, Government Code, is 
amended by adding Section 821.009 to read as follows:
	Sec. 821.009.  CERTAIN CONTRACTS FOR HEALTH CARE PURPOSES; 
REVIEW BY ATTORNEY GENERAL.  (a)  This section applies to any 
contract with a contract amount of $50 million or more:
		(1)  under which a person provides goods or services in 
connection with the provision of medical or health care services, 
coverage, or benefits; and
		(2)  entered into by the person and the retirement 
system.           
	(b)  Notwithstanding any other law, before a contract 
described by Subsection (a) may be entered into by the retirement 
system, a representative of the office of the attorney general 
shall review the form and terms of the contract and may make 
recommendations to the retirement system for changes to the 
contract.  The office of the attorney general shall report any 
recommendations made under this subsection to the governor, the 
lieutenant governor, and the speaker of the house of 
representatives.
	(c)  The retirement system must notify the office of the 
attorney general at the time the system is initiating the 
applicable competitive bidding or other applicable contracting 
process.  A representative of the office of the attorney general may 
participate in negotiations or discussions with proposed 
contractors and may be physically present during those negotiations 
or discussions.
	SECTION 4.  Sections 531.018, 811.009, and 821.009, 
Government Code, as added by this Act, apply only to a contract 
described by those sections that is entered into on or after 
November 1, 2003.
	SECTION 5.  This Act takes effect November 1, 2003.