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By: Shapleigh S.B. No. 342
(In the Senate - Filed February 3, 2003; February 11, 2003,
read first time and referred to Committee on State Affairs;
April 3, 2003, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 0; April 3, 2003,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 342 By: Ellis
A BILL TO BE ENTITLED
AN ACT
relating to health care for certain Texans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. SHORT TITLE AND PURPOSE
SECTION 1.01. SHORT TITLE. This Act may be known as the
Texas Health Improvement Act.
SECTION 1.02. PURPOSE. All residents of this state are
entitled to equal treatment and access to services by the
government of this state. However, because many of this state's
Hispanic residents live in economically disadvantaged areas, the
health and well-being of this population is compromised. All but
two of the 43 border counties, including every county on the Rio
Grande, are federally designated health profession shortage areas.
To remedy disparities of this nature, it is necessary to increase
and improve resources directed to people of Hispanic origin to help
achieve equality among all residents of this state and to
facilitate the quality of life that all Texans deserve. The purpose
of this Act is to promote development of the health infrastructure
that serves the citizens of Texas and improve the health of Hispanic
Texans, who are an integral part of this state.
ARTICLE 2. PREFERENCE FOR VENDORS THAT PROVIDE HEALTH BENEFITS
COVERAGE FOR EMPLOYEES
SECTION 2.01. SCHOOL DISTRICT CONTRACT CONSIDERATIONS.
Subsection (b), Section 44.031, Education Code, is amended to read
as follows:
(b) Except as provided by this subchapter, in determining to
whom to award a contract, the district may consider:
(1) the purchase price;
(2) the reputation of the vendor and of the vendor's
goods or services;
(3) the quality of the vendor's goods or services;
(4) the extent to which the goods or services meet the
district's needs;
(5) the vendor's past relationship with the district;
(6) the impact on the ability of the district to comply
with laws and rules relating to historically underutilized
businesses;
(7) the total long-term cost to the district to
acquire the vendor's goods or services; [and]
(8) whether the vendor provides health benefits
coverage to employees; and
(9) any other relevant factor specifically listed in
the request for bids or proposals.
SECTION 2.02. SCHOOL DISTRICT PREFERENCE. Subchapter B,
Chapter 44, Education Code, is amended by adding Section 44.0421 to
read as follows:
Sec. 44.0421. PREFERENCE FOR VENDORS THAT PROVIDE HEALTH
BENEFITS COVERAGE. A district procuring goods or services shall
give preference to goods or services of a vendor that demonstrates
that the vendor provides health benefits coverage to the vendor's
employees if:
(1) the goods or services meet district specifications
regarding quantity and quality; and
(2) the cost of the good or service does not exceed the
cost of other similar goods or services that are produced by a
vendor that does not demonstrate that the vendor provides health
benefits coverage to the vendor's employees.
SECTION 2.03. BEST VALUE CONSIDERATION. Subsection (b),
Section 2155.074, Government Code, is amended to read as follows:
(b) In determining the best value for the state, the
purchase price and whether the goods or services meet
specifications are the most important considerations. However, the
commission or other state agency may, subject to Subsection (c) and
Section 2155.075, consider other relevant factors, including:
(1) installation costs;
(2) life cycle costs;
(3) the quality and reliability of the goods and
services;
(4) the delivery terms;
(5) indicators of probable vendor performance under
the contract such as past vendor performance, the vendor's
financial resources and ability to perform, the vendor's experience
or demonstrated capability and responsibility, and the vendor's
ability to provide reliable maintenance agreements and support;
(6) the cost of any employee training associated with
a purchase;
(7) the effect of a purchase on agency productivity;
(8) the vendor's anticipated economic impact to the
state or a subdivision of the state, including potential tax
revenue and employment;
(9) whether the vendor provides health benefits
coverage to employees; and
(10) [(9)] other factors relevant to determining the
best value for the state in the context of a particular purchase.
SECTION 2.04. STATE AGENCY PREFERENCE. Subchapter H,
Chapter 2155, Government Code, is amended by adding Section
2155.451 to read as follows:
Sec. 2155.451. PREFERENCE FOR VENDORS THAT PROVIDE HEALTH
BENEFITS COVERAGE. The commission and all state agencies procuring
goods or services shall give preference to goods or services of a
vendor that demonstrates that the vendor provides health benefits
coverage to the vendor's employees if:
(1) the goods or services meet state specifications
regarding quantity and quality; and
(2) the cost of the good or service does not exceed the
cost of other similar goods or services that are produced by a
vendor that does not demonstrate that the vendor provides health
benefits coverage to the vendor's employees.
ARTICLE 3. BORDER HEALTH FOUNDATION
SECTION 3.01. BORDER HEALTH FOUNDATION. Subtitle E, Title
2, Health and Safety Code, is amended by adding Chapter 112 to read
as follows:
CHAPTER 112. BORDER HEALTH FOUNDATION
Sec. 112.001. DEFINITIONS. In this chapter:
(1) "Board of directors" means the board of directors
of the Border Health Foundation.
(2) "Foundation" means the Border Health Foundation.
Sec. 112.002. CREATION OF FOUNDATION. (a) The department
shall establish the Border Health Foundation as a nonprofit
corporation that complies with the Texas Non-Profit Corporation Act
(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes), except
as otherwise provided by this chapter, and qualifies as an
organization exempt from federal income tax under Section
501(c)(3), Internal Revenue Code of 1986, as amended.
(b) The department shall ensure that the foundation
operates independently of any state agency or political subdivision
of this state.
Sec. 112.003. POWERS AND DUTIES. (a) The foundation shall
raise money from other foundations, governmental entities, and
other sources to finance health programs in this state in areas
adjacent to the border with the United Mexican States.
(b) The foundation shall:
(1) identify and seek potential partners in the
private sector that will afford this state the opportunity to
maintain or increase the existing levels of financing of health
programs and activities;
(2) engage in outreach efforts to make the existence
of the office known to potential partners throughout this state;
and
(3) perform any other function necessary to carry out
the purposes of this section.
(c) The department shall review programs from all agencies
under its control to determine which projects should be available
to receive money under Subsection (a).
(d) The foundation has the powers necessary and convenient
to carry out its duties.
Sec. 112.004. ADMINISTRATION. (a) The foundation is
governed by a board of five directors appointed by the Texas Board
of Health from individuals recommended by the commissioner.
(b) Members of the board of directors serve for staggered
terms of six years, with as near as possible to one-third of the
members' terms expiring every two years.
(c) Appointments to the board of directors shall be made
without regard to the race, color, disability, sex, religion, age,
or national origin of the appointees.
(d) The board of directors shall ensure that the foundation
remains eligible for an exemption from federal income tax under
Section 501(a), Internal Revenue Code of 1986, as amended, by being
listed as an exempt organization under Section 501(c)(3) of that
code, as amended.
Sec. 112.005. RESTRICTIONS ON BOARD APPOINTMENT,
MEMBERSHIP, AND EMPLOYMENT. (a) In this section, "Texas trade
association" means a cooperative and voluntarily joined
association of business or professional competitors in this state
designed to assist its members and its industry or profession in
dealing with mutual business or professional problems and in
promoting their common interest.
(b) A person may not be a member of the board of directors
and may not be a foundation employee employed in a "bona fide
executive, administrative, or professional capacity," as that
phrase is used for purposes of establishing an exemption to the
overtime provisions of the federal Fair Labor Standards Act of 1938
(29 U.S.C. Section 201 et seq.), as amended, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of health care;
or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of health care.
(c) A person may not be a member of the board of directors or
act as the general counsel to the board of directors or the
foundation if the person is required to register as a lobbyist under
Chapter 305, Government Code, because of the person's activities
for compensation on behalf of a profession related to the operation
of the foundation.
Sec. 112.006. REMOVAL OF BOARD MEMBER. (a) It is a ground
for removal from the board of directors that a member:
(1) is ineligible for membership under Section
112.005;
(2) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(3) is absent from more than half of the regularly
scheduled board meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the board of directors.
(b) The validity of an action of the board of directors is
not affected by the fact that it is taken when a ground for removal
of a board member exists.
(c) The foundation in its articles or bylaws shall establish
the manner in which a board member may be removed under this section
and may establish other grounds for removal of a member.
Sec. 112.007. VACANCY. A vacancy on the board of directors
shall be filled for the remainder of the unexpired term in the same
manner as provided in Section 112.004(a).
Sec. 112.008. OFFICERS. The board of directors shall elect
from among its members a presiding officer, an assistant presiding
officer, and other necessary officers. The presiding officer and
assistant presiding officer serve for a period of one year and may
be reelected.
Sec. 112.009. MEETINGS. The board of directors may meet as
often as necessary, but shall meet at least twice a year.
Sec. 112.010. TAX EXEMPTION. All income, property, and
other assets of the foundation are exempt from taxation by this
state and political subdivisions of this state.
Sec. 112.011. MEMORANDUM OF UNDERSTANDING. The foundation
and the department shall enter into a memorandum of understanding
that:
(1) requires the board of directors and staff of the
foundation to report to the commissioner and department;
(2) allows the department to provide staff functions
to the foundation; and
(3) outlines the financial contributions to be made to
the foundation from funds obtained from grants and other sources.
Sec. 112.012. FUNDING. (a) The department, another agency
of this state, including an institution of higher education as
defined by Section 61.003, Education Code, or a political
subdivision of this state may contract with the foundation to
finance, on behalf of the department, agency, or political
subdivision, health programs described by Section 112.003.
(b) The foundation may apply for and accept funds from the
federal government or any other public or private entity. The
foundation or any member of the foundation may also solicit and
accept pledges, gifts, and endowments from private sources on the
foundation's behalf. The foundation may only accept a pledge,
gift, or endowment solicited under this section that is consistent
with the purposes of the foundation.
(c) The board of directors of the foundation shall manage
and approve disbursements of funds, pledges, gifts, and endowments
that are the property of the foundation.
(d) The board of directors of the foundation shall manage
any capital improvements constructed, owned, or leased by the
foundation and any real property acquired by the foundation.
Sec. 112.013. RECORDS. (a) The foundation shall maintain
financial records and reports independently from those of the
department.
(b) The foundation shall comply with all filing
requirements of the secretary of state and the Internal Revenue
Service.
Sec. 112.014. REPORT TO DEPARTMENT. Not later than the 60th
day after the last day of the fiscal year, the foundation shall
submit to the department a report itemizing all income and
expenditures and describing all activities of the foundation during
the preceding fiscal year.
SECTION 3.02. TRANSITION. The Texas Department of Health
shall create the Border Health Foundation as required by this Act
not later than June 1, 2004.
ARTICLE 4. EDUCATION AND RECRUITMENT OF
HEALTH CARE PROFESSIONALS
SECTION 4.01. MEDICAL EDUCATION PREPARATION. Subchapter C,
Chapter 61, Education Code, is amended by adding Sections 61.0902,
61.0903, and 61.0904 to read as follows:
Sec. 61.0902. EXTENDED UNDERGRADUATE MEDICAL EDUCATION
PREPARATION PROGRAM. The board shall examine the use of
undergraduate programs that require more than four years of
undergraduate course work to prepare students for graduate medical
education to determine whether such a program would be feasible or
effective in institutions of higher education in this state. Not
later than December 1, 2004, the board shall report to the
legislature the board's determination whether extended
undergraduate medical education preparation programs may be
effective in the education and training of physicians or other
health care professionals in this state.
Sec. 61.0903. RECRUITING AND RETAINING UNDERREPRESENTED
STUDENTS. (a) The board, in coordination with institutions of
higher education, shall develop a strategy to coordinate
recruitment and retention of students from ethnic or racial
backgrounds that are underrepresented in institutions of higher
education in this state.
(b) In coordinating efforts under this section, the board
and institutions of higher education shall:
(1) identify best practices in recruitment and
retention efforts; and
(2) create regional joint programs to eliminate
duplicate or overlapping recruitment and retention programs.
Sec. 61.0904. MENTORING PILOT PROGRAM. (a) In this
section, "Texas-Mexico border region" has the meaning assigned by
Section 2056.002, Government Code.
(b) The board shall collaborate with the Texas Education
Agency to establish a pilot program to provide opportunities for
secondary school students in the Texas-Mexico border region who are
enrolled in health science technology and related courses to be
mentored by health care professionals or students enrolled in
undergraduate or graduate health science technology programs or
related programs. The pilot program should be designed to foster
student awareness of the health professions and encourage students
to pursue an education leading to a career in the health professions
and to enter into practice in the Texas-Mexico border region.
(c) The board shall provide mentoring opportunities at
three high schools in the pilot program's first year and add three
additional secondary schools in the second year. If the board
determines that the pilot program is successful, the board, to the
extent possible, shall expand the program throughout the
Texas-Mexico border region.
(d) Mentoring opportunities under the pilot program may be
provided by expanding existing mentoring programs.
(e) The entities participating in the pilot program shall
track, to the extent possible, students who are mentored to assess
the success of the mentoring efforts.
(f) The Texas Education Agency shall encourage school
districts to participate in the pilot program.
SECTION 4.02. PUBLIC SCHOOL PROGRAMS. Subchapter F,
Chapter 29, Education Code, is amended by adding Section 29.187 to
read as follows:
Sec. 29.187. SUMMER STUDY SCIENCE PROGRAMS FOR
UNDERREPRESENTED STUDENTS. The agency shall establish a statewide
network of summer study science instruction programs for students
from ethnic or racial groups that are underrepresented in the
fields of science and medicine.
SECTION 4.03. ASSESSMENT OF HEALTH SCIENCE TECHNOLOGY AND
COLLEGE PREPARATION PROGRAMS IN BORDER REGION. (a) In this
section, "Texas-Mexico border region" has the meaning assigned by
Section 2056.002, Government Code.
(b) Each school district in the Texas-Mexico border region
shall assess the adequacy of existing health science technology and
college preparatory courses and programs in the district's
secondary schools and the need to establish additional health
science technology and college preparatory courses and programs in
those schools. Each district shall submit the results of the
assessment to the Texas Education Agency. The Texas Education
Agency shall compile the assessments conducted under this
subsection and submit the compilation to the governor, the
lieutenant governor, and the speaker of the house of
representatives not later than September 1, 2004.
(c) This section expires January 1, 2005.
ARTICLE 5. EFFECTIVE DATE
SECTION 5.01. EFFECTIVE DATE. This Act takes effect
September 1, 2003.
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