85(R) - 2017
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; providing a civil penalty.
From the LBB: a negative impact of ($1,000,000) through the biennium ending
August 31, 2019. Provisions in the bill relating to contract oversight, including in the medical
transportation program, could result in a positive fiscal impact, depending on action by affected
HB 18 would make a series of changes regarding management and oversight of state agency contracts with five to take note of. First, the Legislative Budget Board would be required to report annually on how much of each agency’s budget is spent in contracts each fiscal year. Next, the Health and Human Services Commission Inspector General would be required to appoint contract oversight personnel to review high-risk contracts. Third, vendors would be required to return over-payments within 90 days or be subject to a civil penalty of three times the amount due. Fourth, the Comptroller would be required to bar a vendor from participating in state contracts if more than two contracts between the vendor and the state have been terminated for unsatisfactory performance the prior three years. Finally, each contract that has a value of at least $1 million would be required to have a contract manager.
This bill would also require the Health and Human Services Commission (HHSC) to hire an independent survey vendor to determine customer satisfaction and rates of unmet transportation need among Medicaid members. Finally, the HHSC would be required to use the most cost-effective model of delivering medical transportation services to Medicaid members.
Vote Recommendation Notes
This bill enhances our limited government principles by taking multiple measures to increase the efficiency and enhance the oversight of government contracts to curb financial and accounting issues. We support HB 18.