Texas 2015 - 84th Regular

Texas House Bill HB881 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R5140 AJZ-D
2	2	By: Dukes H.B. No. 881
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to outsourcing a service performed by a health and human
8	8	services agency to a private commercial contractor.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 2162, Government Code, is amended by
11	11	adding Subchapter D to read as follows:
12	12	SUBCHAPTER D. OUTSOURCING MAJOR FUNCTIONS
13	13	Sec. 2162.151. DEFINITION. In this subchapter, "health and
14	14	human services agency" has the meaning assigned by Section 531.001.
15	15	Sec. 2162.152. APPLICABILITY. This subchapter applies in
16	16	relation to a contract, contract amendment, or contract extension
17	17	made or proposed to be made between a health and human services
18	18	agency and a private commercial contractor only if:
19	19	(1) a service performed by the agency at the time the
20	20	contract is awarded, amended, or extended will be outsourced under
21	21	the contract, contract amendment, or contract extension; and
22	22	(2) the contract, contract amendment, or contract
23	23	extension, as applicable:
24	24	(A) will lead to the loss of 100 or more state
25	25	employee positions; or
26	26	(B) has a value of $10 million or more.
27	27	Sec. 2162.153. COST ANALYSIS AND CONTRACT CONSIDERATIONS
28	28	FOR OUTSOURCING STATE SERVICES. (a) Before awarding, amending, or
29	29	extending a contract to which this subchapter applies, a health and
30	30	human services agency shall perform a cost analysis comparing the
31	31	agency's costs of performing the service to be outsourced to the
32	32	costs of outsourcing the service as provided by this section. The
33	33	council, in making a determination under Section 2162.102(a), shall
34	34	perform a cost analysis comparing a health and human services
35	35	agency's costs of performing a service to the costs of outsourcing
36	36	the service as provided by this section.
37	37	(b) In determining a health and human services agency's
38	38	costs of performing the service, an analysis shall be prepared that
39	39	includes:
40	40	(1) the health and human services agency's actual cost
41	41	of providing the service currently, including:
42	42	(A) services provided by the comptroller,
43	43	attorney general, and other support agencies; and
44	44	(B) other indirect expenses related to the health
45	45	and human services agency's performance of the service;
46	46	(2) the assumptions and documentation supporting the
47	47	actual cost determination under Subdivision (1); and
48	48	(3) recommendations for improving the health and human
49	49	services agency's performance by developing the most efficient
50	50	organizational model to provide the service, if applicable,
51	51	including implementing recommendations of state oversight agencies
52	52	such as the Legislative Budget Board, the state auditor, and the
53	53	Sunset Advisory Commission.
54	54	(c) In comparing the cost of providing the service under
55	55	this section, the health and human services agency or council
56	56	shall:
57	57	(1) include the costs of a private contractor to
58	58	perform the state service and the cost to the health and human
59	59	services agency of monitoring the contractor's performance against
60	60	the terms of the contract;
61	61	(2) include an assessment of whether the private
62	62	contractor can provide a level of service comparable to that
63	63	provided by the health and human services agency that most recently
64	64	provided the service; and
65	65	(3) prepare and consider an estimate of the costs of
66	66	returning the performance of the service from the private
67	67	contractor to the health and human services agency in the event that
68	68	it proves necessary to do so, including a reasonable proposed
69	69	timetable for actions necessary to return the service to the health
70	70	and human services agency.
71	71	(d) A health and human services agency performing a cost
72	72	analysis under this section may consider a reorganized service
73	73	delivery method to compete directly with the performance of a
74	74	private contractor.
75	75	(e) A bid or contract must include an analysis of health
76	76	care benefits, retirement, and workers' compensation insurance for
77	77	a private contractor's employees that are reasonably comparable to
78	78	the health care benefits, retirement, and workers' compensation
79	79	insurance of the state.
80	80	(f) A cost analysis under this section must cover a period
81	81	of at least one year and not more than five years.
82	82	(g) A health and human services agency shall send the
83	83	analysis and supporting documentation required by Subsection (b) to
84	84	the governor, the chairs of the appropriate legislative committees,
85	85	the Legislative Budget Board, and the state auditor. The analysis
86	86	and supporting documentation must be sent to the state auditor
87	87	before extending a solicitation for bids for, amending, or
88	88	extending a contract to which this subchapter applies.
89	89	(h) Based on a risk assessment, the state auditor may review
90	90	and comment on the methodology used to determine the health and
91	91	human services agency's cost required by Subsection (a). The state
92	92	auditor shall provide the results of the review and comment to the
93	93	affected health and human services agency, the governor, the chairs
94	94	of the appropriate legislative committees, and the Legislative
95	95	Budget Board.
96	96	Sec. 2162.154. AUDIT AUTHORITY. (a) Based on a risk
97	97	assessment performed by the state auditor, a cost analysis under
98	98	Section 2162.153 is subject to audit by the state auditor in
99	99	accordance with Chapter 321.
100	100	(b) Based on a risk assessment performed by the state
101	101	auditor, a contract to which this subchapter applies is subject to
102	102	audit by the state auditor in accordance with Chapter 321. The
103	103	private contractor shall pay the costs of an audit conducted under
104	104	this subsection. In conducting the audit, the state auditor may:
105	105	(1) assess whether cost savings have been realized
106	106	from the contract; and
107	107	(2) address compliance under the terms of the
108	108	contract, including amounts paid under the contract.
109	109	(c) A contract to which this subchapter applies must include
110	110	a provision that authorizes the state auditor to have access to any
111	111	information the state auditor considers relevant in performing the
112	112	state auditor's duties under this section.
113	113	(d) The state auditor shall file an audit report for audits
114	114	performed under Subsections (a) and (b).
115	115	(e) Reports filed by the state auditor under Subsection (d)
116	116	shall be provided to:
117	117	(1) the affected health and human services agency;
118	118	(2) the governor;
119	119	(3) the chairs of the appropriate legislative
120	120	committees;
121	121	(4) the Legislative Budget Board;
122	122	(5) the council, if applicable;
123	123	(6) the attorney general; and
124	124	(7) the private contractor, if applicable.
125	125	Sec. 2162.155. REQUIRED NOTIFICATION. A health and human
126	126	services agency that enters into a contract or agrees to a contract
127	127	amendment or extension that is subject to this subchapter shall
128	128	notify the state auditor of the existence of the contract not later
129	129	than the date the contract, contract amendment, or contract
130	130	extension takes effect.
131	131	Sec. 2162.156. RECOVERY OF FUNDS. If, in the performance of
132	132	an audit under this subchapter, the state auditor identifies
133	133	amounts overpaid, amounts paid for unperformed services, or
134	134	unallowable costs, the attorney general and the affected health and
135	135	human services agency shall cooperate in taking action to recover
136	136	the amounts owed to the state.
137	137	Sec. 2162.157. CONTRACT TERMINATION. If the governing body
138	138	of the health and human services agency, after reviewing an audit
139	139	report by the state auditor under this subchapter, any response by
140	140	the private contractor, and applicable agency performance
141	141	evaluations of the private contractor, concludes that the private
142	142	contractor did not perform satisfactorily under the contract, the
143	143	governing body shall terminate the contract as soon as practicable.
144	144	Sec. 2162.158. ACTIONS FOLLOWING RETURN OF SERVICE. If a
145	145	service obligation is returned to a health and human services
146	146	agency after a contract is terminated under Section 2162.157, the
147	147	health and human services agency shall:
148	148	(1) immediately complete a performance evaluation to
149	149	design a program to improve the delivery of the service and
150	150	implement the program designed; or
151	151	(2) rebid the contract.
152	152	SECTION 2. Section 2162.103(a), Government Code, is amended
153	153	to read as follows:
154	154	(a) Except as otherwise provided by Section 2162.153, in
155	155	[In] comparing the cost of providing a service, the council shall
156	156	consider the:
157	157	(1) cost of supervising the work of a private
158	158	contractor; and
159	159	(2) cost of a state agency's performance of the
160	160	service, including:
161	161	(A) the costs of the comptroller, attorney
162	162	general, and other support agencies; and
163	163	(B) other indirect costs related to the agency's
164	164	performance of the service.
165	165	SECTION 3. The changes in law made by this Act apply only
166	166	to:
167	167	(1) the activities of the State Council on Competitive
168	168	Government, the Department of Aging and Disability Services, the
169	169	Department of Assistive and Rehabilitative Services, the
170	170	Department of Family and Protective Services, or the Department of
171	171	State Health Services concerning a proposal to contract with a
172	172	private contractor to provide services being performed by the
173	173	Department of Aging and Disability Services, the Department of
174	174	Assistive and Rehabilitative Services, the Department of Family and
175	175	Protective Services, or the Department of State Health Services, on
176	176	or after the effective date of this Act; and
177	177	(2) the evaluation of the services performed by a
178	178	private contractor under a contract, contract amendment, or
179	179	contract extension made on or after the effective date of this Act.
180	180	SECTION 4. This Act takes effect September 1, 2015.