Bill Text: TX HB18 | 2017-2018 | 85th Legislature | Engrossed

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Bill Title: Relating to oversight of and requirements applicable to state contracts and other state financial and accounting issues, including the delivery of certain Medicaid medical transportation program services; authorizing a fee.

Sponsorship: Slight Partisan Bill (Republican 7-3)

Status: (Engrossed - Dead) 2017-05-19 - Referred to Finance [HB18 Detail]

Download: Texas-2017-HB18-Engrossed.html

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By: Capriglione, Zerwas, Roberts, Walle, H.B. No. 18
Rose, et al.

A BILL TO BE ENTITLED
AN ACT
relating to oversight of and requirements applicable to state
contracts and other state financial and accounting issues,
including the delivery of certain Medicaid medical transportation
program services; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GENERAL STATE CONTRACTING AND OTHER FINANCIAL ISSUES
SECTION 1.01. Subchapter C, Chapter 316, Government Code,
is amended by adding Section 316.025 to read as follows:
Sec. 316.025. CONTRACTS TO CONFORM WITH LIMITATIONS OF
GENERAL APPROPRIATIONS ACT. Notwithstanding any other law, a
contract obligation of a state agency, as defined by Section
2103.001, including an institution of higher education, as defined
by Section 61.003, Education Code, may be limited or amended by the
General Appropriations Act.
SECTION 1.02. Section 321.013, Government Code, is amended
by adding Subsections (m) and (n) to read as follows:
(m) In devising the audit plan under Subsection (c), the
State Auditor shall consider the performance of audits of programs
operated by health and human services agencies that:
(1) have not recently received audit coverage; and
(2) have expenditures of less than $100 million per
year.
(n) In devising the audit plan under Subsection (c), the
State Auditor shall consider the performance of audits of programs
operated by the Texas Alcoholic Beverage Commission that have not
recently received audit coverage.
SECTION 1.03. Chapter 322, Government Code, is amended by
adding Section 322.025 to read as follows:
Sec. 322.025. REPORT ON CONTRACT SPENDING. (a) In this
section, "state agency" has the meaning assigned by Section
2056.001.
(b) Not later than September 15 of each year, the board
shall issue a report detailing how much of each state agency's
budget for the previous state fiscal year was spent on contracts.
SECTION 1.04. Section 441.1855, Government Code, is amended
to read as follows:
Sec. 441.1855. RETENTION OF CONTRACT AND RELATED DOCUMENTS
BY STATE AGENCIES. Notwithstanding Section 441.185 or 441.187, a
state agency:
(1) for each contract entered into by the agency,
shall retain in its records, to the extent the documents exist,
[each contract entered into by the state agency and] all contract
planning, solicitation, evaluation, monitoring, modification, and
closeout documents related to the contract, including at a minimum:
(A) a copy of all general and internal
correspondence related to the contract;
(B) the records or minutes of all internal or
external meetings related to the contract, including sign-in sheets
or agendas;
(C) a copy of all contractor invoices provided
under the contract;
(D) any information relating to discount
provisions for prompt payment under the contract and any letters
related to contract price deductions or fee adjustments;
(E) a copy of all supporting documentation for
contractor payments or progress payments under the contract;
(F) a copy of any audits performed involving the
contract; and
(G) a copy of all conflict of interest
documentation and forms required by law related to the contract;
and
(2) shall retain [may destroy] the contract and
documents described by Subdivision (1) until:
(A) [only after the seventh anniversary of] the
date[:
[(A)] the contract is completed or expires; and
[or]
(B) if [all] issues [that] arise from any
litigation, claim, negotiation, audit, open records request,
administrative review, or other action involving the contract or
documents, the seventh anniversary of the date the issues are
resolved.
SECTION 1.05. Section 531.102, Government Code, is amended
by adding Subsection (a-7) to read as follows:
(a-7) The inspector general shall appoint oversight
personnel to audit, review, and investigate high-risk contracts and
procurement and contracting processes of the commission, as
identified by the office of inspector general, and provide on a
quarterly basis reports on the monitoring to the inspector general,
attorney general, and governor. The quarterly reports must be
posted on the commission's publicly accessible Internet website.
The oversight personnel may work with the state auditor's office,
governor's office, Legislative Budget Board, attorney general's
office, quality assurance team established under Section 2054.158,
and contract advisory team established under Subchapter C, Chapter
2262, in performing the oversight personnel's duties under this
subsection.
SECTION 1.06. Subchapter F, Chapter 2054, Government Code,
is amended by adding Section 2054.1184 to read as follows:
Sec. 2054.1184. ASSESSMENT OF MAJOR INFORMATION RESOURCES
PROJECT. (a) A state agency proposing to spend appropriated funds
for a major information resources project must first conduct an
execution capability assessment to:
(1) determine the agency's capability for implementing
the project;
(2) reduce the agency's financial risk in implementing
the project; and
(3) increase the probability of the agency's
successful implementation of the project.
(b) A state agency shall submit to the department, the
quality assurance team established under Section 2054.158, and the
Legislative Budget Board a detailed report that identifies the
agency's organizational strengths and any weaknesses that will be
addressed before the agency initially spends appropriated funds for
a major information resources project.
(c) A state agency may contract with an independent third
party to conduct the assessment under Subsection (a) and prepare
the report described by Subsection (b).
SECTION 1.07. Section 2102.0091(c), Government Code, is
amended to read as follows:
(c) In addition to the requirements of Subsection (a), a
state agency shall file with the Governor's Office of Budget,
Planning, and Policy, the state auditor, and the Legislative Budget
Board an [any] action plan or other response issued by the state
agency's governing board or the administrator of the state agency
if the state agency does not have a governing board in response to
every issue identified in the report of the state agency's internal
auditor.
SECTION 1.08. Chapter 2115, Government Code, is amended by
adding Section 2115.006 to read as follows:
Sec. 2115.006. OVERPAYMENTS BY STATE AGENCY. (a) If a
state agency makes an overpayment to a vendor, the vendor must
return the amount overpaid by the agency before the 121st calendar
day after the date the vendor receives written notice of the
overpayment. If the amount overpaid by the state agency is not
returned before the 121st calendar day, the vendor is subject to
late payment interest of 10 percent per year on the amount of the
overpayment that has not been returned, which begins to accrue on
the date the overpayment becomes overdue.
(b) If the vendor disputes that an overpayment has been made
by a state agency, the vendor shall provide the state agency written
notice of the dispute not later than the 30th day after the receipt
of the notice required in Subsection (a). On resolution of the
dispute, if the vendor is required to return an overpayment to the
state agency, the vendor shall return the agreed overpayment before
the 121st calendar day after the date the parties resolve the
dispute. If the agreed overpayment is not returned before the 121st
calendar day, the vendor is subject to late payment interest of 10
percent per year on the amount of the agreed overpayment that has
not been returned, which begins to accrue on the date the agreed
overpayment becomes overdue.
(c) This section does not apply to the return of any amount
overpaid by a state agency to a vendor because of an incorrect
contract, invoice, or other documentation.
SECTION 1.09. Section 2155.074(c), Government Code, is
amended to read as follows:
(c) A state agency shall consult with and receive approval
from the comptroller in an open meeting [commission] before
considering factors other than price and meeting specifications
when the agency procures through competitive bidding goods or
services with a value that exceeds $100 million [$100,000]. The
state agency shall retain in the agency's records a copy of the
meeting minutes with the final executed contract.
SECTION 1.10. Subchapter B, Chapter 2155, Government Code,
is amended by adding Section 2155.090 to read as follows:
Sec. 2155.090. REPORT ON PERFORMANCE BY AGENCY FOR CERTAIN
PROCUREMENTS. (a) This section applies only to a procurement for
services with a value of at least $1 million but not more than $5
million.
(b) Before a purchase of services under this chapter, each
state agency, including the comptroller, must:
(1) create a written report evaluating the feasibility
of the agency performing the service that is the subject of the
proposed purchase; and
(2) if the agency determines from the evaluation that
it is not feasible for the agency to perform the service, provide an
explanation of why the agency reached that determination.
(c) A report created under this section must be included in
the procurement analysis for the purchase.
SECTION 1.11. (a) Subchapter B, Chapter 2155, Government
Code, is amended by adding Section 2155.091 to read as follows:
Sec. 2155.091. OPERATION AND MANAGEMENT OF STATE
COOPERATIVE PURCHASING PROGRAMS. (a) Notwithstanding any other
law, the Department of Information Resources, the comptroller, and
the five state agencies with the largest budgets on September 1,
2017, shall jointly acquire from a single provider and implement a
cloud-based, procure-to-pay project to operate and manage the
state's cooperative purchasing programs, including the multiple
award contract schedule under Subchapter I and commodity items
under Section 2157.068.
(b) The project must:
(1) include procurement technology that:
(A) covers sourcing, contract management,
contract ordering, and invoice processing;
(B) makes solicitations, contracts, proposals,
and payments viewable by the public; and
(C) supports the collection of transaction fees
from vendors;
(2) include consulting and marketing services;
(3) include authority to charge a vendor who
participates in the project a one percent transaction fee to cover
the costs of the project; and
(4) notwithstanding any other law, allow political
subdivisions and nonprofit organizations to make purchases through
the project.
(c) The division of the governor's office having
responsibility for budget and policy shall oversee the project.
(b) The Department of Information Resources, the
comptroller of public accounts, and the five state agencies with
the largest budgets on September 1, 2017, shall enter into a
contract for a project to operate and manage state cooperative
purchasing programs as provided by Section 2155.091, Government
Code, as added by this Act, not later than October 31, 2017, and the
project under that section shall be implemented not later than
December 31, 2018.
SECTION 1.12. Subchapter D, Chapter 2156, Government Code,
is amended by adding Section 2156.182 to read as follows:
Sec. 2156.182. OTHER INTERSTATE PURCHASES AND SALES.
Subject to any limitation imposed by Section 2156.181, the
commission may authorize one or more state governments, agencies of
other states, or other governmental entities to purchase goods or
services through the commission. The commission may charge a
reasonable administrative fee for a purchase of goods or services
under this section.
SECTION 1.13. Subchapter I, Chapter 2166, Government Code,
is amended by adding Section 2166.4065 to read as follows:
Sec. 2166.4065. ASSESSMENT AND IMPLEMENTATION OF
CONTINUOUS COMMISSIONING OR EXISTING BUILDING COMMISSIONING
PRACTICES. (a) In this section, "facility" means a facility with
at least 100,000 gross square feet.
(b) A state agency with charge and control over a facility
shall have a remote or on-site assessment of the facility performed
by the Energy Systems Laboratory at Texas A&M Engineering
Experiment Station or another qualified provider to determine
whether implementation of continuous commissioning or existing
building commissioning practices would result in estimated savings
of at least 10 percent in utility costs for the facility. A state
agency shall supply any documents necessary to perform the
assessment. The state agency shall report to the Legislative
Budget Board on the results of the assessment.
(c) If the results of an assessment performed under
Subsection (b) show estimated utility cost savings of at least 10
percent, the state agency shall have the Energy Systems Laboratory
at Texas A&M Engineering Experiment Station or another qualified
provider prepare a plan for implementation of continuous
commissioning or existing building commissioning practices and
monitoring of the implementation for the state agency.
(d) If appropriated funds are unavailable for this purpose,
a state agency may enter into a contract for the implementation of
continuous commissioning or existing building commissioning
practices for a facility to be paid for from the estimated savings
in utility costs resulting from the implementation of the
practices.
SECTION 1.14. Subchapter B, Chapter 2251, Government Code,
is amended by adding Section 2251.031 to read as follows:
Sec. 2251.031. PAYMENT TO VENDOR. (a) A state agency may
not:
(1) pay an invoice from a vendor unless the invoice
directly correlates to a corresponding contract with the vendor; or
(2) make a payment to a vendor more than once per month
under a contract, unless the contract specifically requires more
than one payment per month.
(b) A payment by a state agency to a vendor under a contract
must receive:
(1) the approval and signature of two employees of the
state agency; or
(2) if a contract manager, as defined by Section
2262.001, has been assigned to the contract by the state agency, the
approval and signature of the contract manager and one other
employee of the state agency.
(c) If a finding is made that a payment was made without the
signatures required under Subsection (b), the state agency may
revoke the payment at any time but remains obligated to pay the
vendor all amounts due under and as required by the contract
regardless of whether the state agency complied with Subsection
(b).
SECTION 1.15. Subchapter C, Chapter 2261, Government Code,
is amended by adding Section 2261.103 to read as follows:
Sec. 2261.103. REQUIRED CONTRACT PROVISIONS. (a) An
attorney representing a state agency shall assist in the drafting
of a contract to be entered into by the agency in order to include at
a minimum the provisions listed in Subsection (b) and other
applicable provisions recommended in the contract management guide
developed under Section 2262.051.
(b) The following are required provisions in each contract
to which the provisions are applicable:
(1) amendments;
(2) antitrust;
(3) applicable law and venue;
(4) applicable law and conforming amendments;
(5) assignments;
(6) confidentiality and public information act;
(7) equal opportunity;
(8) federal, state, and local law requirements;
(9) felony criminal convictions;
(10) financial interests and gifts;
(11) immigration;
(12) no conflicts; and
(13) right to audit.
SECTION 1.16. Subchapter D, Chapter 2261, Government Code,
is amended by adding Section 2261.152 to read as follows:
Sec. 2261.152. DOCUMENTATION REQUIRED FOR PAYMENT. (a) A
state agency may not make a payment to a vendor without a contract,
invoice, or other documentation that clearly demonstrates the
agency's obligation to make a payment.
(b) This section does not apply to the return of any amount
overpaid by a state agency to a vendor because of an incorrect
contract, invoice, or other documentation.
SECTION 1.17. Section 2261.252, Government Code, is amended
by adding Subsection (e) to read as follows:
(e) A state agency may not knowingly enter into a contract
for the purchase of goods or services with a vendor who is related,
a vendor whose governing board or executive officers include a
person who is related, a vendor who employs a person directly
involved in the bid submission process who is related, or who
employs or subcontracts to a person directly performing the
contracted work who is related, within the third degree by
consanguinity or affinity, as determined under Chapter 573, to an
employee of the state agency who has decision-making authority in
any matter related to the contract.
SECTION 1.18. Subchapter F, Chapter 2261, Government Code,
is amended by adding Section 2261.258 to read as follows:
Sec. 2261.258. REPORTING OF CONTRACT VIOLATION. (a) A
state employee or member of the public may report to the comptroller
a state contracting violation. The comptroller shall investigate a
report made under this subsection.
(b) A state agency may not suspend or terminate the
employment of, or take other adverse personnel action against, a
state employee who in good faith reports a violation to the
comptroller under this section.
(c) If, as a result of an investigation under this section
of a state contracting violation that occurred before March 8,
2017, savings to the state are realized, the comptroller shall
verify the amount of savings and an amount equal to 30 percent of
the savings may be appropriated to the comptroller only for
distribution to the state employee
who reported the violation that
initiated the investigation.
SECTION 1.19. Section 2262.005, Government Code, is amended
to read as follows:
Sec. 2262.005. CONSULTATION WITH INTERESTED PARTIES [STATE
AGENCIES]. The comptroller shall consult with state agencies,
vendors, and other interested parties in developing rules, forms,
contract terms, guides, manuals, and criteria required under this
chapter.
SECTION 1.20. Section 2262.051, Government Code, is amended
by amending Subsections (a), (b), (c), (d), and (g) and adding
Subsections (i) and (j) to read as follows:
(a) In consultation with the attorney general, the
Department of Information Resources, the [comptroller, and the]
state auditor, and state agencies that award major contracts, the
comptroller [commission] shall develop and [or] periodically
update a contract management guide for use by state
agencies. Participation by the state auditor under this
subsection is subject to approval by the legislative audit
committee for inclusion in the audit plan under Section 321.013(c).
(b) The comptroller [commission] may adopt rules necessary
to develop or update the guide.
(c) The guide must provide information regarding the
primary duties of a contract manager, including how to:
(1) develop and negotiate a contract;
(2) select a contractor; [and]
(3) monitor contractor and subcontractor performance
under a contract; and
(4) encourage competition for goods and services
purchased by this state.
(d) The guide must include model provisions for state agency
contracts. The guide must:
(1) distinguish between essential provisions that a
state agency must include in a contract to protect the interests of
this state and recommended provisions that a state agency may
include in a contract;
(2) recognize the unique contracting needs of an
individual state agency or program based on the size, nature, and
type of goods or services purchased by the state agency or program
and provide sufficient flexibility to accommodate those needs,
consistent with protecting the interests of this state;
(3) include maximum contract periods under which a new
competitive solicitation is not necessary; and
(4) include the model contract management process
developed under Section 2262.104 and recommendations on the
appropriate use of the model.
(g) The guide must establish procedures under which a state
agency is required to:
(1) solicit explanations from qualified potential
respondents who did not respond to a competitive solicitation for a
contract on which fewer than two qualified bids were received by the
agency; and
(2) develop and implement improved procurement
practices.
(i) The guide must suggest best practices related to
procurement metrics used by a state agency to measure and monitor
the effectiveness of the state agency's procurement methods,
including the:
(1) number and value of procurements made by the state
agency;
(2) number of canceled procurements by the state
agency;
(3) reasons for canceled procurements;
(4) common exceptions to the state agency's terms and
conditions by a respondent;
(5) number of responses per competitive solicitation;
and
(6) average length of time for each phase of the state
agency's procurement processes, including the length of time:
(A) between the date the state agency issues the
competitive solicitation and the date the state agency begins
receiving responses to the solicitation;
(B) for the evaluation of responses to a
competitive solicitation;
(C) of the negotiation between the state agency
and a vendor; and
(D) between the date the state agency issues the
competitive solicitation and the date the state agency awards a
contract to a vendor.
(j) The guide may include references to procurement
maturity models and procurement readiness assessments used by other
large public and private enterprises.
SECTION 1.21. Subchapter B, Chapter 2262, Government Code,
is amended by adding Section 2262.056 to read as follows:
Sec. 2262.056. CONTRACT MANAGERS REQUIRED FOR MAJOR
CONTRACTS. A state agency, at a minimum, shall assign a contract
manager for each major contract of the agency to manage the
oversight of the contract.
SECTION 1.22. Chapter 2262, Government Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. CONTRACT OUTSIDE TACTICAL TEAM
Sec. 2262.201. DEFINITIONS. In this subchapter:
(1) "Information resources" has the meaning assigned
by Section 2054.003.
(2) "Team" means a contract outside tactical team
established under authority provided by this subchapter.
Sec. 2262.202. CONTRACT OUTSIDE TACTICAL TEAM. (a) From
appropriated funds, a state agency shall enter into a contract with
a team for assistance in improving information resources contract
management practices for contracts that have a value of at least
$100 million. The team shall review and make recommendations on the
solicitation documents, contract documents, scope of work, project
timeline and management, documentation requirements, audit
schedule and audit scope, and technical issues for the contract.
(b) A team consists of the following members selected by the
state agency:
(1) outside legal counsel; or
(2) providers of professional consulting services
with expertise in the subject matter of the contract.
(c) A state agency may not select a provider of professional
consulting services or a group or association of providers or award
a contract for the services on the basis of competitive bids
submitted for the contract or for the services, but shall make the
selection and award:
(1) on the basis of demonstrated competence and
qualifications to perform the services; and
(2) for a fair and reasonable price.
(d) A state agency shall:
(1) comply with a recommendation made under Subsection
(a); or
(2) submit a written explanation regarding why the
recommendation is not applicable to the contract under review.
SECTION 1.23. (a) The comptroller of public accounts shall
conduct an interim study on the effectiveness of the process of
barring vendors from participation in state contracts under Section
2155.077, Government Code. The study must include an evaluation of
the risk to the state posed by vendors who receive low performance
grades under Section 2262.055, Government Code, but who are not
barred under Section 2155.077, Government Code.
(b) Not later than December 1, 2018, the comptroller of
public accounts shall submit a report on the findings of the study
to the governor, lieutenant governor, and members of the
legislature.
ARTICLE 2. DELIVERY OF MEDICAID MEDICAL TRANSPORTATION PROGRAM
SERVICES
SECTION 2.01. Section 531.0057(b), Government Code, is
amended to read as follows:
(b) Subject to Section 531.024141, the [The] commission may
contract with any public or private transportation provider or with
any regional transportation broker for the provision of public
transportation services.
SECTION 2.02. Section 531.02412, Government Code, is
amended by adding Subsection (b) to read as follows:
(b) As part of the quality review assessment of the Medicaid
medical transportation program under Subsection (a)(3), the
commission shall hire a single independent vendor with appropriate
expertise to conduct surveys of:
(1) the satisfaction rates of Medicaid recipients who
are receiving medical transportation program services; and
(2) the unmet transportation needs of Medicaid
recipients who are not receiving medical transportation program
services and who are having difficulty obtaining transportation to
health care appointments.
SECTION 2.03. Sections 531.02414(c) and (d), Government
Code, are amended to read as follows:
(c) Except as provided by Section 531.024142 and
notwithstanding [Notwithstanding] any other law, the commission
may not delegate the commission's duty to supervise the medical
transportation program to any other person, including through a
contract with the Texas Department of Transportation for the
department to assume any of the commission's responsibilities
relating to the provision of services through that program.
(d) Subject to Sections 531.024141 and [Section] 533.00257,
the commission may contract with a public transportation provider,
as defined by Section 461.002, Transportation Code, a private
transportation provider, or a regional transportation broker for
the provision of public transportation services, as defined by
Section 461.002, Transportation Code, under the medical
transportation program.
SECTION 2.04. Subchapter B, Chapter 531, Government Code,
is amended by adding Sections 531.024141 and 531.024142 to read as
follows:
Sec. 531.024141. DELIVERY OF MEDICAID MEDICAL
TRANSPORTATION PROGRAM SERVICES. (a) In this section:
(1) "Managed transportation organization" has the
meaning assigned by Section 533.00257.
(2) "Medical transportation program" has the meaning
assigned by Section 531.02414.
(b) Notwithstanding any other law, the commission shall use
the most cost-effective delivery model for the provision of medical
transportation program services throughout the state. In
determining the most cost-effective delivery model, the commission
shall, on a regional basis, consider using:
(1) a managed transportation delivery model in which
managed transportation organizations and providers operate under a
capitated rate system in accordance with Section 533.00257;
(2) a fee-for-service delivery model; or
(3) other delivery models deemed appropriate by the
commission.
(c) Before soliciting bids for the provision of medical
transportation program services in a region through a managed
transportation delivery model or another selected delivery model
deemed appropriate by the commission under Subsection (b)(3), the
commission must conduct an assessment to determine if the
applicable model is more cost-effective than a fee-for-service
delivery model. If the commission determines that the managed
transportation delivery model or other selected delivery model is
potentially more cost-effective than a fee-for-service delivery
model, the commission shall establish a cost threshold for
accepting bids for the provision of medical transportation program
services in the region through a managed transportation delivery
model or the other selected delivery model.
(d) A cost threshold established under Subsection (c) must
be:
(1) expressed as a cost per unit, such as a cost per
recipient or a cost per trip; and
(2) based on historical data for the provision of
medical transportation program services through a fee-for-service
delivery model in the region.
(e) If the commission receives bids at or below the cost
threshold established under Subsection (c) from qualified managed
transportation organizations or qualified vendors seeking to
provide services under the other selected delivery model, the
commission shall provide medical transportation program services
in the region through a managed transportation delivery model or
the other selected delivery model, as applicable, and shall award
contracts to managed transportation organizations or vendors based
on the price and quality of the services to be provided by the
organization or vendor.
(f) If the commission is unable to solicit bids from
qualified managed transportation organizations or vendors at or
below the cost threshold established under Subsection (c), the
commission shall provide medical transportation program services
through a fee-for-service delivery model in the region.
(g) For purposes of this section, a delivery model's
cost-effectiveness is based on the price and quality of the
services delivered through the model, in addition to any other
requirements established by applicable state and federal
procurement laws.
Sec. 531.024142. OVERSIGHT OF MEDICAID MEDICAL
TRANSPORTATION PROGRAM SERVICES. (a) In this section, "medical
transportation program" has the meaning assigned by Section
531.02414.
(b) Regardless of the delivery model selected by the
commission under Section 531.024141 for the delivery of medical
transportation program services, the commission shall:
(1) contract with a person to oversee the delivery of
those services through the selected delivery model; and
(2) pay for the contract from the anticipated cost
savings realized under the contract.
(c) In contracting for the oversight of medical
transportation program services, the commission shall provide
contracting opportunities to persons who employ veterans or other
persons with disabilities whose services are available under
Chapter 122, Human Resources Code.
(d) The person contracted under Subsection (b) shall
maintain a record of each service provided under the medical
transportation program, including the cost of mileage for the
service, the cost of the service, and the cost of any software
licensing support used to meet the requirements of this section. A
managed transportation organization or vendor through which
medical transportation program services are provided shall provide
to the person contracted under Subsection (b) the information
necessary for that person to comply with this subsection.
(e) Not later than December 1, 2018, the commission shall
evaluate the oversight of medical transportation program services
under this section for not more than a 90-day period to determine:
(1) the viability of continuing to contract with a
person to oversee the services;
(2) the economic return on investment from contracting
with a person to oversee the services; and
(3) route efficiency and reasonableness in the
provision of the services.
(f) Subsection (e) and this subsection expire September 1,
2019.
SECTION 2.05. Sections 533.00257(b) and (c), Government
Code, are amended to read as follows:
(b) If [Subject to Subsection (i),] the commission provides
[shall provide] medical transportation program services [on a
regional basis] through a managed transportation delivery model in
accordance with Section 531.024141, the commission shall use
[using] managed transportation organizations and providers, as
appropriate, that:
(1) operate under a capitated rate system;
(2) assume financial responsibility under a full-risk
model;
(3) operate a call center;
(4) use fixed routes when available and appropriate;
and
(5) agree to provide data to the commission if the
commission determines that the data is required to receive federal
matching funds.
(c) Subject to Section 531.024141, the [The] commission
shall procure managed transportation organizations [under the
medical transportation program] through a competitive bidding
process [for each managed transportation region as determined by
the commission].
SECTION 2.06. Sections 533.00257(i) and (j), Government
Code, are repealed.
SECTION 2.07. Section 531.024141, Government Code, as added
by this article, applies to a contract entered into or renewed on or
after the effective date of this Act. A contract entered into or
renewed before that date is governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 2.08. If before implementing any provision of this
article a state agency determines that a waiver or authorization
from a federal agency is necessary for implementation of that
provision, the agency affected by the provision shall request the
waiver or authorization and may delay implementing that provision
until the waiver or authorization is granted.
ARTICLE 3. TRANSITION AND EFFECTIVE DATE
SECTION 3.01. Except as otherwise provided by this Act,
this Act applies only in relation to a contract for which a state
agency first advertises or otherwise solicits bids, proposals,
offers, or qualifications on or after the effective date of this
Act, and to a payment made under a contract described by this
section.
SECTION 3.02. This Act takes effect September 1, 2017.