HBA-MPM C.S.H.B. 1691 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1691 By: Maxey Human Services 3/29/2001 Committee Report (Substituted) 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. C.S.H.B. 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 C.S.H.B. 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). C.S.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) and the council 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. GSC is required to post the required reports on its website (Sec. 122.0095). GSC is required to include the programs administered by the council in GSC's procurement policy manuals and to assign an upper-level management level employee to ensure that GSC meets its requirements in relation to the council (Sec. 122.0012). C.S.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 council is required to adopt rules to define the terms "value-added" and "direct labor." 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 or request for proposals 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 and a CNA or CRP first be submitted to alternative dispute resolution (Sec. 12.0205). C.S.H.B. 1691 authorizes the council and council staff to access financial or other information and records from a CNA or a 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 receive supportive employment from CRPs and salary information (Sec. 122.022). EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1691 differs from the original by requiring each state agency that purchases products or services through the purchasing program in this bill to report to the Texas Council on Purchasing from People with Disabilities (council) the purchase of products or services available from a central nonprofit agency (CNA) or community rehabilitation program (CRP) but that were purchased from another business. The substitute adds the provision that GSC is required to post the information in these reports on its website (Sec. 122.0095). The substitute requires GSC to assign an upper-level management level employee rather than a management level employee to ensure GSC meets its requirements in relation to the council (Sec. 122.0012). The substitute removes the requirement in the original that the council after consulting with disability advocacy groups adopt rules to define "disability"(Sec. 122.013). The substitute authorizes the council to select and contract with one or more CNAs through a request for proposals (Sec. 122.019). The substitute authorizes council staff to access certain records from a CNA or CRP if necessary (Sec. 122.0215).