Summary of 1999 Legislative Session

The 1999 Legislature enacted SB 1585, which requires the Department of Health in consultation with the State Council on Competitive Government to seek competitive bids for the state's Medicaid Vendor Drug Program's claims processing. The department, however, is only allowed to award a contract to an outside vendor if it and the council determine that a contract with a private company would be more cost effective and the time to process claims would be the same or faster that the existing system.

The Legislature also enacted SB 1127, which authorizes the General Services Commission (GSC) to establish and administer a system of training, continuing education, and certification for state agency purchasing personnel. The GSC also may offer appropriate training to vendors on a cost recovery basis.

The bill further requires the State Auditor to contract with the University of Texas System to review GSC's processes and procedures and make recommen-dations to improve GSC's efficiency and effectiveness in carrying out its statutory duties.

With the enactment of SB 1127, Texas state government may begin a process for training and certifying personnel with necessary procurement skills. As outsourcing government functions becomes more widespread, it will be important for government agencies to maintain a staff of employees who have the necessary training to negotiate and oversee contracts with private entities so that services are delivered efficiently and effectively.