HBA-MPM H.B. 1691 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1691
By: Maxey
Human Services
2/27/2001
Introduced



BACKGROUND AND PURPOSE 

The Texas Council on Purchasing from People with Disabilities (council)
administers the State Use Program (program) to further the state's policy
of encouraging and assisting persons with disabilities to achieve maximum
personal independence by engaging in useful and productive employment
activities.  After the program's central nonprofit agency, the Texas
Industries for the Blind and Handicapped (TIBH), filed suit against the
council and brought attention to the disputes between TIBH and the council
and other problems, the House Committee on General Investigating reviewed
the program.  The committee found that the dysfunctional relationship
between the council and TIBH is largely the result of ambiguous statutory
language.  House Bill 1691 grants the council additional authority to
effectively administer the program as recommended by the committee. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill
expressly delegates rulemaking authority to the Texas Council on Purchasing
from People with Disabilities in SECTION 6 (Section 122.013, Human
Resources Code) and SECTION 9 (Section 122.0215, Human Resources Code) of
this bill. 

ANALYSIS

House Bill 1691 amends the Human Resources Code to modify the composition
of the Texas Council on Purchasing from People with Disabilities (council)
to include persons with disabilities.  The bill also requires the governor
to select at least one member from each category of council members and, to
the extent possible, attempt to ensure that each category is
proportionately represented on the council (Sec 122.003). The bill
authorizes the council to employ staff to provide management oversight,
policy guidance, and administrative support to the council (Sec. 122.0055). 

The bill authorizes the council to establish an advisory committee
(committee), if necessary.  The bill requires the council to specify the
purpose and duties of the committee, which must include reviewing the State
Use Program's (program) effectiveness and recommending procedures to create
higher skilled and higher paying employment opportunities (Sec. 122.0057). 

H.B. 1691 requires each state agency that purchases products or services
through the program to designate an agency employee to ensure that the
agency is in compliance with existing law, and report to the General
Services Commission (GSC) the purchase of products or services available
from a central nonprofit agency (CNA) or community rehabilitation program
(CRP) but which were purchased through another business instead (Sec.
122.0095).  GSC is required to include the programs administered by the
council in GSC's procurement policy manuals and to assign a management
level employee to ensure that GSC meets its requirements in relation to the
council (Sec. 122.0012). 

H.B. 1691 requires, rather than authorizes, the council to adopt rules for
the implementation, extension, administration, or improvement of the
program.  The bill requires the council to adopt rules to address possible
conflicts of interest for CNAs and CRPs to establish a process for the
certification of CRPs and to establish a minimum percentage of disabled
labor a CRP must employ.  The bill requires the council to  adopt rules to
define "value-added," "direct labor," and "disability."  The bill
authorizes the council to adopt rules to encourage cooperative efforts
between CRPs and other organizations (Sec. 122.013). 

The bill authorizes the council to select and contract with one or more
CNAs through a competitive bidding process for a period not to exceed five
years.  The bill authorizes the council to renew and renegotiate a contract
with a CNA at least once during each five-year period, but does not require
it to do so.  The bill specifies that the management fee rate charged by a
CNA must be reviewed annually by the council.  The bill authorizes the
council to terminate a contract if the CNA is not in compliance with
contractual obligations and 30 days notice has been given to the CNA.  The
bill authorizes the council to request an audit by the state auditor of a
CNA's management fee or the financial condition of the CNA (Sec. 122.019).
The bill requires that a dispute between the council, a CNA, or a CRP first
be submitted to alternative dispute resolution (Sec. 12.0205). 

H.B. 1691 authorizes the council to access financial or other information
and records from a CNA or CRP, if the council determines it necessary.  The
bill requires the council to adopt rules establishing procedures to ensure
that information and records are kept confidential and protected from
release to unauthorized persons (Sec.122.0215).  

 The bill provides that the council must include in its annual report
additional information regarding the number and earnings of disabled and
nondisabled persons employed by CRPs or businesses or workshops that
provide supportive employment to CRPs and salary information (Sec.
122.022). 

EFFECTIVE DATE

September 1, 2001.