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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 76(R)

SENATE BILL 753

SENATE AUTHOR: Madla

EFFECTIVE: 9-1-99

HOUSE SPONSOR: Hunter

            State law authorizes a local mental health and mental retardation community center to create a nonprofit health maintenance organization (HMO). Senate Bill 753 amends the Health and Safety Code to require such an HMO to disclose in an open meeting, before submitting certain bids, the services to be provided by it through a capitated or other at-risk payment arrangement. Notice of the meeting must be posted publicly in accordance with provisions of the open meetings law. The act amends the open meetings law to provide that the HMO need not conduct an open meeting to deliberate certain pricing or financial planning information, the disclosure of which might give advantage to a competitor. Similarly, the HMO need not conduct an open meeting to deliberate information relating to a proposed new service or product line before the service or product line is announced publicly.