HBA-NLM H.B. 2624 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2624 By: Maxey Human Services 3/22/1999 Introduced BACKGROUND AND PURPOSE The Texas Council on Purchasing from People with Disabilities (council) is charged with running the state's program to encourage state agencies to, when possible, purchase goods and services from community rehabilitation programs that employ disabled Texans. The legislation controlling this program mandates that the council contract with a central nonprofit agency to manage and coordinate the daily operations of the program and to market goods and services from the community programs to state agencies. Although competitive bidding is a general rule when the state contracts with private entities, the current legislation for the program does not clearly state the council's rights to competitively re-bid this contract with a central nonprofit agency. H.B. 2624 clarifies the council's ability to competitively bid the contract for the central nonprofit agency and requires state agencies to report to the council the total number and dollar amount of purchases made through the program. 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 Section 122.008, Human Resources Code, to require the head of each state agency to report to the Texas Council on Purchasing from People with Disabilities (council) in writing, by September 30 of each year, with regard to the agency's purchases during the preceding fiscal year: _the total number and dollar amount of purchases made by the agency under this section; and _a complete explanation of the reasons for a purchase by the agency from another source of any product or service that was available under this section. SECTION 2. Amends Section 122.019, Human Resources Code, by amending Subsections (d) and (e) and by adding Subsection (g), as follows: (d) Authorizes the council, following the review of an existing contract with a central nonprofit agency, to approve the performance of the central nonprofit agency under the contract and renegotiate the contract with the central nonprofit agency, or to enter into a new contract in accordance with Chapter 2155 (Purchasing: General Rules and Procedures), Government Code, using competitive bidding or competitive sealed proposals, as determined by the General Services Commission. Deletes the requirement that the council renegotiate a contract with a central nonprofit agency. (e) Provides that the computational method for including the management fee rate in the selling price or contract price must be approved by the council. (g) Authorizes the council to review a proposal in a closed meeting when the council is using the competitive sealed proposals method to enter into a contract under Subsection (d). SECTION 3. Section 122.022(b), Human Resources Code, to provide that a report submitted under this section must, rather than shall, include a compilation of the amount and number of purchases and a summary of the explanations contained in reports received by the council under Section 122.088, among the other existing requirements of this section. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.