Bill Text: TX HB18 | 2017-2018 | 85th Legislature | Engrossed
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.
Spectrum: Slight Partisan Bill (Republican 7-3)
Status: (Engrossed - Dead) 2017-05-19 - Referred to Finance [HB18 Detail]
Download: Texas-2017-HB18-Engrossed.html
By: Capriglione, Zerwas, Roberts, Walle, | H.B. No. 18 | |
Rose, et al. |
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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, | ||
[ |
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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 [ |
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documents described by Subdivision (1) until: | ||
(A) [ |
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date[ |
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[ |
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[ |
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(B) if [ |
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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 [ |
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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 [ |
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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 [ |
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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 [ |
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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 [ |
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state auditor, and state agencies that award major contracts, the | ||
comptroller [ |
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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 [ |
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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; [ |
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(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 [ |
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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 [ |
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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 [ |
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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 [ |
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[ |
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accordance with Section 531.024141, the commission shall use | ||
[ |
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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 [ |
||
shall procure managed transportation organizations [ |
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process [ |
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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. |