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Amend CSHB 2292 by adding the following appropriately
numbered sections to the bill and renumbering subsequent sections
accordingly:
SECTION ____. Subchapter B, Chapter 533, Health and Safety
Code, is amended by adding Section 533.049 to read as follows:
Sec. 533.049. PRIVATIZATION OF STATE SCHOOL. (a) After
August 31, 2004, and before September 1, 2005, the department may
contract with a private service provider to operate a state school
only if:
(1) the Health and Human Services Commission
determines that the private service provider will operate the state
school at a cost that is at least 10 percent less than the cost to
the department to operate the state school;
(2) the Health and Human Services Commission approves
the contract; and
(3) the state school, when operated under the
contract, treats a population with the same characteristics and
need levels as the population treated by the state school when
operated by the department.
(b) On or before April 1, 2004, the department shall report
to the commissioner of health and human services whether the
department has received a proposal by a private service provider to
operate a state school. The report must include an evaluation of
the private service provider's qualifications, experience, and
financial strength, a determination of whether the provider can
operate the state school under the same standard of care as the
department, and an analysis of the projected savings under a
proposed contract with the provider. The savings analysis must
include all department costs to operate the state school, including
costs, such as employee benefits, that are not appropriated to the
department.
(c) If the department contracts with a private service
provider to operate a state school, the department, the governor's
office of budget and planning, and the Legislative Budget Board
shall identify sources of funding that must be transferred to the
department to fund the contract.
(d) The department may renew a contract under this section.
The conditions listed in Subsections (a)(1)-(3) apply to the
renewal of the contract.
SECTION ____. Section 533.049, Health and Safety Code, as
added by this Act, takes effect September 1, 2004.