79R1923 MTB-D

By:  Delisi                                                       H.B. No. 880



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.
	(c)  An agency described by Subsection (a)(2) must notify the 
office of the attorney general at the time the agency initiates the 
planning phase of the contracting process.  A representative of the 
office of the attorney general or another attorney advising the 
agency under Subsection (e) may participate in negotiations or 
discussions with proposed contractors and may be physically present 
during those negotiations or discussions.
	(d)  The office of the attorney general may provide or 
recommend training for the state agency's employees on contract 
negotiation, contract management, and other matters related to the 
contracting process.
	(e)  The office of the attorney general may require the state 
agency to enter into an interagency agreement or to obtain outside 
legal services under Section 402.0212 for the provision of services 
described by this section.
	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.
	(c)  The retirement system must notify the office of the 
attorney general at the time the system initiates the planning 
phase of the contracting process.  A representative of the office of 
the attorney general or another attorney advising the agency under 
Subsection (e) may participate in negotiations or discussions with 
proposed contractors and may be physically present during those 
negotiations or discussions.
	(d)  The office of the attorney general may provide or 
recommend training for the retirement system's employees on 
contract negotiation, contract management, and other matters 
related to the contracting process.
	(e)  The office of the attorney general may require the 
retirement system to enter into an interagency agreement or to 
obtain outside legal services under Section 402.0212 for the 
provision of services described by this section.
	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.
	(c)  The retirement system must notify the office of the 
attorney general at the time the system initiates the planning 
phase of the contracting process.  A representative of the office of 
the attorney general or another attorney advising the agency under 
Subsection (e) may participate in negotiations or discussions with 
proposed contractors and may be physically present during those 
negotiations or discussions.
	(d)  The office of the attorney general may provide or 
recommend training for the retirement system's employees on 
contract negotiation, contract management, and other matters 
related to the contracting process.
	(e)  The office of the attorney general may require the 
retirement system to enter into an interagency agreement or to 
obtain outside legal services under Section 402.0212 for the 
provision of services described by this section.
	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, 2005.
	SECTION 5.  This Act takes effect September 1, 2005.