HBA-TYH H.B. 2472 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2472 By: Maxey State Affairs 3/23/1999 Introduced BACKGROUND AND PURPOSE The Texas Integrated Enrollment and Services (TIES) project is part of the state's effort to improve the delivery of critical health, human, and employment services to thousands of Texans by integrating eligibility and enrollment functions of many health and human service agencies. Many publicly funded nongovernmental service providers provide services to the state eligibility and enrollment staff clients. Facility colocation with these providers may improve service access for clients, increase administrative efficiencies, and improve integration of services. TIES would generally be seeking a limited amount of space with a provider that is already located in a site. Current lease procurement requirements in Chapter 2167 (Lease of Space for State Agencies) do not provide for the state to enter into a lease or sublease in these situations. TIES project systems integrator and critical business service vendors may be responsible for the call/mail centers operations and facility design, implementation, and modification of systems and physical facilities for up to three years. For these reasons, the vendors need to have complete control over the facility leases as the contracted lessee. Once a vendor's service to TIES terminates, TIES needs the ability to assume the role as the facility lessee and thus assume the lease. If this cannot occur, TIES would have to go through the competitive process of space procurement. If another site is awarded the bid, TIES operations will have to relocate. This could be costly and disruptive to operations and client services. H.B. 2472 waives state competitive procurement in situations where client access to services would be enhanced and the colocation of offices would improve the efficiency of the administration and delivery of services. This bill also authorizes a state agency to enter into and negotiate a contract and to share business resources with a private service provider. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 531, Government Code, by adding Section 531.051, as follows: Sec. 531.051. LEASES AND SUBLEASES OF CERTAIN OFFICE SPACE. Authorizes a health and human services agency, with the approval of the Health and Human Services Commission, the Texas Workforce Commission, or any other state agency that administers employment services programs, to lease or sublease office space to or from a private service provider that contracts with the agency to enable agency eligibility and enrollment personnel to work with the provider if client access to services would be enhanced and the colocation of the offices would improve the efficiency of the administration and delivery of services. Provides that Subchapters D (Lease of Public Grounds) and E (Lease of Space in StateOwned Buildings to Private Tenants), Chapter 2165, and Subchapter B (Procedures For Leasing Space; Lease Contract), Chapter 2167, do not apply to a state agency that leases or subleases office space to or from a private service provider. Provides that a state agency is delegated the authority to enter into a lease or sublease, and authorizes a state agency to negotiate the terms of the lease or sublease. Authorizes a state agency, to the extent authorized by federal law, to share business resources with a private service provider that enters into a lease or sublease agreement with the agency. SECTION 2. Emergency clause. Effective date: upon passage.