Texas 2017 - 85th Regular

Texas House Bill HB2383 Compare Versions

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

Old	New	Differences
1	1	85R12633 AJZ-D
2	2	By: Dukes H.B. No. 2383
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to outsourcing a service performed by the Health and Human
8	8	Services Commission or a health and human services agency to a
9	9	private commercial contractor.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 2162, Government Code, is amended by
12	12	adding Subchapter D to read as follows:
13	13	SUBCHAPTER D. OUTSOURCING MAJOR FUNCTIONS
14	14	Sec. 2162.151. DEFINITIONS. In this subchapter:
15	15	(1) "Commission" means the Health and Human Services
16	16	Commission.
17	17	(2) "Health and human services agency" has the meaning
18	18	assigned by Section 531.001.
19	19	Sec. 2162.152. APPLICABILITY. This subchapter applies in
20	20	relation to a contract, contract amendment, or contract extension
21	21	made or proposed to be made between the commission or a health and
22	22	human services agency and a private commercial contractor only if:
23	23	(1) a service performed by the commission or agency at
24	24	the time the contract is awarded, amended, or extended will be
25	25	outsourced under the contract, contract amendment, or contract
26	26	extension; and
27	27	(2) the contract, contract amendment, or contract
28	28	extension, as applicable:
29	29	(A) will lead to the loss of 100 or more state
30	30	employee positions; or
31	31	(B) has a value of $10 million or more.
32	32	Sec. 2162.153. COST ANALYSIS AND CONTRACT CONSIDERATIONS
33	33	FOR OUTSOURCING STATE SERVICES. (a) Before awarding, amending, or
34	34	extending a contract to which this subchapter applies, the
35	35	commission or a health and human services agency, as applicable,
36	36	shall perform a cost analysis comparing the commission's or
37	37	agency's costs of performing the service to be outsourced to the
38	38	costs of outsourcing the service as provided by this section. The
39	39	council, in making a determination under Section 2162.102(a), shall
40	40	perform a cost analysis comparing the commission's or agency's
41	41	costs of performing a service to the costs of outsourcing the
42	42	service as provided by this section.
43	43	(b) In determining the costs of performing the service, an
44	44	analysis shall be prepared that includes:
45	45	(1) the commission's or health and human services
46	46	agency's actual cost of providing the service currently, including:
47	47	(A) services provided by the comptroller,
48	48	attorney general, and other support agencies; and
49	49	(B) other indirect expenses related to the
50	50	performance of the service;
51	51	(2) the assumptions and documentation supporting the
52	52	actual cost determination under Subdivision (1); and
53	53	(3) recommendations for improving the commission's or
54	54	the health and human services agency's performance by developing
55	55	the most efficient organizational model to provide the service, if
56	56	applicable, including implementing recommendations of state
57	57	oversight agencies, including the Legislative Budget Board, the
58	58	state auditor, and the Sunset Advisory Commission.
59	59	(c) In comparing the cost of providing the service under
60	60	this section, the commission, health and human services agency, or
61	61	council shall:
62	62	(1) include the costs of a private contractor to
63	63	perform the state service and the cost to the commission or agency
64	64	of monitoring the contractor's performance against the terms of the
65	65	contract;
66	66	(2) include an assessment of whether the private
67	67	contractor is capable of providing a level of service comparable to
68	68	the level provided by the commission or agency that most recently
69	69	provided the service; and
70	70	(3) prepare and consider an estimate of the costs of
71	71	returning the performance of the service from the private
72	72	contractor to the commission or agency if necessary, including a
73	73	reasonable proposed schedule for actions necessary to return the
74	74	service to the commission or agency.
75	75	(d) The commission or a health and human services agency
76	76	performing a cost analysis under this section may consider a
77	77	reorganized service delivery method to compete directly with the
78	78	performance of a private contractor.
79	79	(e) A bid or contract for outsourcing a service must include
80	80	an analysis of health care benefits, retirement, and workers'
81	81	compensation insurance for a private contractor's employees that
82	82	are reasonably comparable to the health care benefits, retirement,
83	83	and workers' compensation insurance of this state.
84	84	(f) A cost analysis under this section must cover a period
85	85	of at least one year and not more than five years.
86	86	Sec. 2162.154. REPORT; STATE AUDITOR REVIEW. (a) The
87	87	commission or a health and human services agency shall send the
88	88	analysis and supporting documentation required by Section
89	89	2162.153(b) to the governor, the chairs of the appropriate
90	90	legislative committees with jurisdiction over the commission or
91	91	agency, the Legislative Budget Board, and the state auditor. The
92	92	analysis and supporting documentation must be sent to the state
93	93	auditor before extending a solicitation for bids for, amending, or
94	94	extending a contract to which this subchapter applies.
95	95	(b) Based on a risk assessment, the state auditor may review
96	96	and comment on the methodology used to determine the commission's
97	97	or health and human services agency's cost required by Section
98	98	2163.153(a). The state auditor shall provide the results of the
99	99	review and comment to the affected commission or agency, the
100	100	governor, the chairs of the appropriate legislative committees with
101	101	jurisdiction over the commission or agency, and the Legislative
102	102	Budget Board.
103	103	Sec. 2162.155. AUDIT AUTHORITY. (a) Based on a risk
104	104	assessment performed by the state auditor, a cost analysis under
105	105	Section 2162.153 is subject to audit by the state auditor in
106	106	accordance with Chapter 321.
107	107	(b) Based on a risk assessment performed by the state
108	108	auditor, a contract to which this subchapter applies is subject to
109	109	audit by the state auditor in accordance with Chapter 321. The
110	110	private contractor shall pay the costs of an audit conducted under
111	111	this subsection. In conducting the audit, the state auditor may:
112	112	(1) assess whether cost savings have been realized
113	113	from the contract; and
114	114	(2) address compliance under the terms of the
115	115	contract, including amounts paid under the contract.
116	116	(c) A contract to which this subchapter applies must include
117	117	a provision that authorizes the state auditor to have access to any
118	118	information the state auditor considers relevant in performing the
119	119	state auditor's duties under this section.
120	120	(d) The state auditor shall file an audit report for audits
121	121	performed under Subsections (a) and (b).
122	122	(e) Reports filed by the state auditor under Subsection (d)
123	123	shall be provided to:
124	124	(1) the commission and any affected health and human
125	125	services agency;
126	126	(2) the governor;
127	127	(3) the chairs of the appropriate legislative
128	128	committees with jurisdiction over the commission or agency;
129	129	(4) the Legislative Budget Board;
130	130	(5) the council, if applicable;
131	131	(6) the attorney general; and
132	132	(7) the private contractor, if applicable.
133	133	Sec. 2162.156. REQUIRED NOTIFICATION. The commission or a
134	134	health and human services agency that enters into a contract or
135	135	agrees to a contract amendment or extension subject to this
136	136	subchapter shall notify the state auditor about the contract not
137	137	later than the date the contract, contract amendment, or contract
138	138	extension takes effect.
139	139	Sec. 2162.157. RECOVERY OF FUNDS. If, in the performance of
140	140	an audit under this subchapter, the state auditor identifies
141	141	amounts overpaid, amounts paid for unperformed services, or
142	142	unallowable costs, the attorney general and the commission or
143	143	affected health and human services agency shall cooperate in taking
144	144	action to recover the amounts owed to the state.
145	145	Sec. 2162.158. CONTRACT TERMINATION. If the executive
146	146	commissioner of the commission, after reviewing an audit report by
147	147	the state auditor under this subchapter, any response by the
148	148	private contractor, and applicable agency performance evaluations
149	149	of the private contractor, concludes that the private contractor
150	150	did not perform satisfactorily under the contract, the executive
151	151	commissioner shall terminate the contract as soon as practicable.
152	152	Sec. 2162.159. ACTIONS FOLLOWING RETURN OF SERVICE. If a
153	153	service obligation is returned to the commission or a health and
154	154	human services agency after a contract is terminated under Section
155	155	2162.158, the commission or agency, as applicable, shall:
156	156	(1) immediately complete a performance evaluation to
157	157	design a program to improve the delivery of the service and
158	158	implement the program designed; or
159	159	(2) rebid the contract.
160	160	SECTION 2. Section 2162.103(a), Government Code, is amended
161	161	to read as follows:
162	162	(a) Except as otherwise provided by Section 2162.153, in
163	163	[In] comparing the cost of providing a service, the council shall
164	164	consider the:
165	165	(1) cost of supervising the work of a private
166	166	contractor; and
167	167	(2) cost of a state agency's performance of the
168	168	service, including:
169	169	(A) the costs of the comptroller, attorney
170	170	general, and other support agencies; and
171	171	(B) other indirect costs related to the agency's
172	172	performance of the service.
173	173	SECTION 3. The changes in law made by this Act apply only
174	174	to:
175	175	(1) the activities of the Health and Human Services
176	176	Commission, the State Council on Competitive Government, the
177	177	Department of Family and Protective Services, or the Department of
178	178	State Health Services concerning a proposal to contract with a
179	179	private contractor to provide services being performed by the
180	180	Health and Human Services Commission, the Department of Family and
181	181	Protective Services, or the Department of State Health Services, on
182	182	or after the effective date of this Act; and
183	183	(2) the evaluation of the services performed by a
184	184	private contractor under a contract, contract amendment, or
185	185	contract extension made on or after the effective date of this Act.
186	186	SECTION 4. This Act takes effect September 1, 2017.