73R9563 KLL-F By Delco, Bailey, Turner of Coleman, H.B. No. 2099 Hirschi, Vowell, et al. Substitute the following for H.B. No. 2099: By Maxey C.S.H.B. No. 2099 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the Texas Health Care Cost Containment 1-3 Council, to the containment of health care costs, and to ensuring 1-4 the quality of the delivery of health care services; making 1-5 appropriations; and providing penalties. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 ARTICLE 1 1-8 SECTION 1.01. As a result of rising health care costs and 1-9 concerns expressed by consumers, businesses, health care providers, 1-10 and payers and as a result of the study completed by the Texas 1-11 Health Policy Task Force, there is an urgent need to abate 1-12 escalating costs and to address the quality of health care delivery 1-13 for all Texans. It is the purpose of this legislation to address 1-14 these concerns. 1-15 ARTICLE 2 1-16 SECTION 2.01. Subtitle E, Title 2, Health and Safety Code, 1-17 is amended by adding Chapter 108 to read as follows: 1-18 CHAPTER 108. TEXAS HEALTH CARE COST CONTAINMENT COUNCIL 1-19 Sec. 108.001. CREATION OF COUNCIL. The Texas Health Care 1-20 Cost Containment Council is created. The council shall report to 1-21 the governor, the legislature, and the public. 1-22 Sec. 108.002. DEFINITIONS. In this chapter: 1-23 (1) "Charge" or "rate" means the amount billed by a 2-1 provider for specific goods or services provided to a patient 2-2 before any adjustment for contractual allowances. The term does 2-3 not include copayment charges to health maintenance organization 2-4 enrollees by providers payed by capitation or salary in a health 2-5 maintenance organization. 2-6 (2) "Council" means the Texas Health Care Cost 2-7 Containment Council. 2-8 (3) "Covered service" means any health care service or 2-9 procedure provided in or by a health care facility, including the 2-10 services of a physician or another licensed provider. 2-11 (4) "Health care facility" means: 2-12 (A) a hospital; 2-13 (B) an ambulatory surgical center licensed under 2-14 Chapter 243; 2-15 (C) a chemical dependency treatment facility 2-16 licensed under Chapter 464; 2-17 (D) a renal dialysis facility; 2-18 (E) a diagnostic imaging center; 2-19 (F) a freestanding radiation therapy center; 2-20 (G) a clinical laboratory; 2-21 (H) a cardiac catheterization laboratory; 2-22 (I) a physical rehabilitation center; 2-23 (J) a lithotripsy center; 2-24 (K) a birthing center; 2-25 (L) a subacute care facility; 3-1 (M) a rural health clinic; 3-2 (N) a federally qualified health center as 3-3 defined by 42 U.S.C. Section 1396d; or 3-4 (O) any other outpatient diagnostic or treatment 3-5 facility, excluding the office of a licensed physician or a 3-6 licensed or certified health care practitioner except as provided 3-7 by Section 108.006(c). 3-8 (5) "Health care insurer" means any person, 3-9 corporation, or other entity that offers administrative, indemnity, 3-10 or payment services in exchange for a premium, fee, or other 3-11 consideration, under a program of health care benefits, including: 3-12 (A) an insurance company, homeowners and auto 3-13 liability insurance, workers' compensation plan, association, 3-14 stipulated premium insurance company, or exchange issuing health 3-15 insurance policies in this state; 3-16 (B) a hospital and medical services corporation; 3-17 (C) a group hospital service corporation; 3-18 (D) a health maintenance organization; 3-19 (E) a fraternal benefit society; 3-20 (F) a beneficial society; or 3-21 (G) a third-party administrator. 3-22 (6) "Health maintenance organization" means an 3-23 organization as defined in Section 2, Texas Health Maintenance 3-24 Organization Act (Article 20A.02, Vernon's Texas Insurance Code). 3-25 (7) "Hospital" means a profit or nonprofit institution 4-1 licensed in this state that is a general or special hospital, 4-2 private mental hospital, chronic disease hospital, or other type of 4-3 hospital. 4-4 (8) "Payment" means a payment that a provider actually 4-5 accepts for services, excluding charity care, rather than the 4-6 charges the provider bills. 4-7 (9) "Payer" means a person, including a health care 4-8 insurer, who makes direct payments to providers for covered 4-9 services, and a corporation, labor organization, or self-insured 4-10 employer who provides covered services for its employees or 4-11 members. 4-12 (10) "Physician" means an individual licensed under 4-13 the laws of this state to practice medicine and surgery under the 4-14 Medical Practice Act (Article 4495b, Vernon's Texas Civil 4-15 Statutes). 4-16 (11) "Provider" means a hospital, a physician, a 4-17 health care facility, or a licensed or certified health care 4-18 practitioner not practicing in a rural area. 4-19 (12) "Provider quality" means the extent to which a 4-20 provider renders care that, within the capabilities of modern 4-21 medicine, obtains for patients medically acceptable health outcomes 4-22 and prognoses, adjusted for patient severity. 4-23 (13) "Data" means data collected by the council under 4-24 Section 108.009 in the form initially received. 4-25 (14) "Rural area" means a county with a population 5-1 density of not greater than 100 persons per square mile as defined 5-2 by the Census Bureau of the United States Department of Commerce. 5-3 (15) "Severity" means the measurable degree of the 5-4 potential for failure of one or more vital organs in a patient. 5-5 (16) "Uniform patient identifier" means a number 5-6 composed of numeric, alpha, or alphanumeric characters that has 5-7 been assigned to identify a patient. 5-8 Sec. 108.003. COMPOSITION; EXPENSES. (a) The council is 5-9 composed of three nonvoting ex-officio state agency members and 15 5-10 voting members appointed by the governor and confirmed by the 5-11 senate as follows: 5-12 (1) the commissioner of health; 5-13 (2) the commissioner of health and human services; 5-14 (3) the commissioner of insurance; 5-15 (4) three representatives of the business community, 5-16 with at least one representing small businesses, who are purchasers 5-17 of health care but who are not involved in the provision of health 5-18 care or health insurance; 5-19 (5) two representatives from labor; 5-20 (6) three consumer representatives who are not 5-21 professionally involved in the purchase or provision of health care 5-22 or health insurance; 5-23 (7) one representative of commercial insurance 5-24 carriers; 5-25 (8) two representatives of health care facilities, 6-1 with at least one representing hospitals; 6-2 (9) one representative of health maintenance 6-3 organizations; 6-4 (10) one representative of physicians; and 6-5 (11) two public members with expertise in: 6-6 (A) health planning; 6-7 (B) health economics; 6-8 (C) quality assurance; or 6-9 (D) statistics or health data management. 6-10 (b) The chairman shall be appointed by the governor and 6-11 serves at the pleasure of the governor. Members annually shall 6-12 elect a vice-chairman. 6-13 (c) A majority of voting members constitutes a quorum for 6-14 the transaction of any business. An act by the majority of the 6-15 voting members present at any meeting at which there is a quorum is 6-16 considered to be an act of the council. 6-17 (d) The council may appoint subcommittees of the council or 6-18 elect any officers subordinate to those provided for in Subsection 6-19 (b) as it considers advisable. 6-20 (e) Members of the council do not receive a salary or per 6-21 diem allowance for serving as members of the council but shall be 6-22 reimbursed for actual and necessary expenses incurred in the 6-23 performance of their duties, which may include reimbursement of 6-24 travel and living expenses while engaged in council business. 6-25 (f) Appointments to the board shall be made without regard 7-1 to the race, color, disability, sex, religion, age, or national 7-2 origin of appointees. Additionally, in making the appointments to 7-3 the council, the governor shall consider geographical 7-4 representation. 7-5 Sec. 108.004. MEETINGS. (a) The council, council 7-6 subcommittees, and technical advisory committees are subject to the 7-7 opening meetings law, Chapter 271, Acts of the 60th Legislature, 7-8 Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil 7-9 Statutes). 7-10 (b) The council shall meet as often as necessary to perform 7-11 its duties under this chapter. 7-12 (c) The council shall publish a notice of its meetings in at 7-13 least four newspapers of general circulation in this state. 7-14 Sec. 108.005. TERMS. (a) The terms of the agency members 7-15 are concurrent with their terms of office. The appointed council 7-16 members serve six-year staggered terms, with the terms of five 7-17 members expiring September 1 of each odd-numbered year. 7-18 (b) An appointed member may not serve more than two full 7-19 consecutive terms. 7-20 (c) A member may be removed by the governor for absence from 7-21 at least half of the scheduled meetings in a year. A member may be 7-22 removed for just cause by the governor after recommendation by a 7-23 vote of at least two-thirds of the council members. 7-24 Sec. 108.006. POWERS AND DUTIES. (a) The council shall: 7-25 (1) adopt rules necessary to carry out its duties 8-1 under this chapter, including rules concerning data collection 8-2 requirements; 8-3 (2) to the extent possible, build on and not duplicate 8-4 other data collection required by law or by board rule; 8-5 (3) assure that information collected on health care 8-6 charges is made available and accessible to interested persons; 8-7 (4) prescribe by rule a format for all providers and 8-8 payers consistent with the National Uniform Billing Committee 8-9 (Uniform Hospital Billing Form UB 82/HCFA 1450 and HCFA-1500, or 8-10 their successor forms), in accordance with Sections 108.009(e) and 8-11 (f); 8-12 (5) adopt by rule and implement a methodology to 8-13 collect and disseminate data reflecting provider quality in 8-14 accordance with Section 108.011; 8-15 (6) make reports to the legislature, the governor, and 8-16 the public on: 8-17 (A) the charges and rate of increase in the 8-18 charges of health care in this state; 8-19 (B) the effectiveness of the council in carrying 8-20 out the legislative intent of this chapter; 8-21 (C) if applicable, any recommendations on the 8-22 need for further health care cost containment legislation; and 8-23 (D) the quality and effectiveness of health care 8-24 and access to health care for all citizens of this state; 8-25 (7) employ an executive director and other staff 9-1 necessary to comply with this chapter and rules adopted under this 9-2 chapter and engage professional consultants as it considers 9-3 necessary to the performance of its duties; 9-4 (8) develop an annual work plan and establish 9-5 priorities to accomplish its duties; and 9-6 (9) if feasible and agreed to by the department, share 9-7 legal and administrative personnel with the department. 9-8 (b) The council may not establish or recommend rates of 9-9 payment for health care services. 9-10 (c) The council may adopt rules clarifying which health care 9-11 facilities must provide data under this chapter and limiting the 9-12 exclusion under Section 108.002(4)(O) based on the size or scope of 9-13 practice. 9-14 (d) The council may not take an action that affects or 9-15 relates to the validity, status, or terms of a department 9-16 interagency agreement or a contract without the department's 9-17 approval. 9-18 (e) In the collection of data, the council shall consider 9-19 the research and initiatives being pursued by the United States 9-20 Department of Health and Human Services and the Joint Commission on 9-21 Accreditation of Healthcare Organizations to reduce potential 9-22 duplication or inconsistencies. The council may not adopt rules 9-23 that would conflict with any federally mandated data collection 9-24 programs or requirements of comparable scope. 9-25 Sec. 108.007. REVIEW POWERS. (a) The council or the 10-1 council's representative, subject to reasonable rules and 10-2 guidelines, may make any inspection of all documents and records 10-3 used by data sources that are required to compile data and reports. 10-4 The council may compel providers to produce accurate documents and 10-5 records. 10-6 (b) Each state agency, department, grantee, political 10-7 subdivision, and institution of higher education shall cooperate 10-8 with the council in performing its assigned duties and function. 10-9 Sec. 108.008. DUTIES OF DEPARTMENT. (a) The department, as 10-10 the state health planning and development agency under Chapter 104, 10-11 is responsible for the collection of data as provided by Chapter 10-12 311. 10-13 (b) The department shall: 10-14 (1) provide administrative assistance to the council 10-15 in accordance with rules adopted by the council and agreed on by 10-16 the department; 10-17 (2) coordinate administrative responsibilities with 10-18 the council to avoid unnecessary duplication of the collection of 10-19 data and other duties; 10-20 (3) give the council access to data collected by the 10-21 department on request of the council; 10-22 (4) submit or assist in the council's budget request 10-23 to the legislature, at the council's request; and 10-24 (5) disburse funds made available to the council at 10-25 the direction of the council. 11-1 (c) The department may: 11-2 (1) apply for and receive on behalf of the council any 11-3 appropriation, donation, or other funds from the state or federal 11-4 government or any other public or private source, subject to 11-5 limitations and conditions provided by legislative appropriation; 11-6 and 11-7 (2) provide the council with other administrative 11-8 services and materials as requested by the council. 11-9 (d) The department may not take an action that affects or 11-10 relates to the validity, status, or terms of a council interagency 11-11 agreement or a contract without the council's approval. 11-12 Sec. 108.009. DATA SUBMISSION AND COLLECTION. (a) The 11-13 council may collect, and providers and payers shall submit to the 11-14 council or another entity as determined by the council, all data 11-15 required by this section according to uniform submission formats, 11-16 coding systems, and other technical specifications necessary to 11-17 make the incoming data substantially valid, consistent, compatible, 11-18 and manageable using electronic data processing, if available. 11-19 (b) A hospital in a rural area may provide the data defined 11-20 by this section. 11-21 (c) The council and the board shall establish a single 11-22 collection point for receipt of data from providers and payers. 11-23 With the approval of the board and the council, the department may 11-24 transfer collection of any data required to be collected by the 11-25 department under any other law. The council and the department 12-1 shall have access to all data collected under this chapter. 12-2 (d) Data submission from providers and payers may not be 12-3 required more frequently than quarterly. 12-4 (e) The council shall accept data in the format developed by 12-5 the National Uniform Billing Committee (Uniform Hospital Billing 12-6 Form UB 82/HCFA 1450 and HCFA-1500, or their successor forms). 12-7 (f) In any rules adopted by the council relating to the 12-8 submission of data, the council shall use existing national 12-9 standardized formats if applicable. The council shall develop by 12-10 rule alternate data submission procedures for entities that do not 12-11 possess electronic data processing capacity. 12-12 (g) The council shall collect data and disseminate reports 12-13 reflecting provider quality in accordance with Section 108.011. 12-14 (h) For each covered service performed, the council shall 12-15 require the collection of a hospital, major ambulatory service, or 12-16 health care facility discharge data record that includes the: 12-17 (1) uniform patient identifier; 12-18 (2) patient's date of birth; 12-19 (3) patient's sex; 12-20 (4) patient's marital status; 12-21 (5) zip code number of the patient's primary 12-22 residence; 12-23 (6) date of admission or visit; 12-24 (7) source of admission or visit; 12-25 (8) type of admission, if applicable; 13-1 (9) date of discharge; 13-2 (10) bill type; 13-3 (11) principal and not more than four secondary 13-4 diagnoses by standard code; 13-5 (12) principal procedure by standard code and date; 13-6 (13) secondary procedures, not exceeding three, by 13-7 standard codes and dates; 13-8 (14) unique health care facility identifier; 13-9 (15) unique identifier of the attending physician, if 13-10 applicable; 13-11 (16) unique identifiers of other physicians; 13-12 (17) unique identifiers of referring and treating 13-13 physicians for outpatient visits; 13-14 (18) total charges of the health care facility, 13-15 segregated into major categories, including room and board, 13-16 radiology, laboratory, operating room, drugs, medical supplies, and 13-17 other goods and services according to guidelines specified by the 13-18 council; 13-19 (19) uniform identifier of the primary payer; 13-20 (20) zip code number of the facility where the health 13-21 care service is rendered; 13-22 (21) Medicaid provider number; 13-23 (22) deductible; 13-24 (23) co-insurance amount; 13-25 (24) uniform identifier for the payer group contract 14-1 number; and 14-2 (25) patient discharge status. 14-3 (i) For each covered service, the council shall collect from 14-4 payers who make payment on a fee-for-service basis payment 14-5 information that includes the: 14-6 (1) uniform identifier of the primary payer; 14-7 (2) uniform identifier of the primary insured or 14-8 subscriber, if different from the patient; 14-9 (3) uniform patient identifier; 14-10 (4) patient's date of birth; 14-11 (5) patient's sex; 14-12 (6) patient's marital status; 14-13 (7) zip code number of the patient's primary 14-14 residence; 14-15 (8) date of admission or visit; 14-16 (9) date of discharge; 14-17 (10) unique health care facility identifier; 14-18 (11) zip code number of the facility where the health 14-19 care service is rendered; 14-20 (12) total charges of the health care facility, 14-21 segregated into major categories, including room and board, 14-22 radiology, laboratory, operating room, drugs, medical supplies, and 14-23 other goods and services according to guidelines specified by the 14-24 council; 14-25 (13) actual payment to the health care facility, 15-1 segregated if available, according to the categories specified by 15-2 Subdivision (12); 15-3 (14) unique identifier of the attending physician; 15-4 (15) unique identifiers of any other physicians; 15-5 (16) unique identifiers of referring and treating 15-6 physicians for outpatient visits; 15-7 (17) charges of each physician or licensed provider 15-8 rendering services related to an admission to a health care 15-9 facility; 15-10 (18) actual payments to each physician or licensed 15-11 provider for services specified by Subdivision (12); and 15-12 (19) deductible, copayment, or coinsurance amounts. 15-13 (j) Except as otherwise provided by law, a provider shall 15-14 submit and the council may collect, in accordance with submission 15-15 dates and schedules established by council rule, additional data 15-16 that can be used by the department to conduct public health 15-17 epidemiologic activities and other data collection, analysis, and 15-18 dissemination activities authorized or mandated under state law if 15-19 the data is not available to the council from public records. 15-20 Sec. 108.010. DATA DISSEMINATION AND PUBLICATION. (a) 15-21 Subject to the restrictions on access to council data established 15-22 under Sections 108.011 and 108.013, and using the data collected 15-23 under Section 108.009 and other data, records, and matters of 15-24 record available to it, the council shall prepare and issue reports 15-25 to the governor, the legislature, and the public as provided by 16-1 this section. 16-2 (b) The council shall, for every provider in this state and 16-3 in appropriate regions and subregions in this state and for those 16-4 inpatient and outpatient services that, when ranked by order of 16-5 frequency, account for at least 75 percent of all covered services 16-6 and that, when ranked by order of total payments, account for at 16-7 least 75 percent of total payments, prepare and issue quarterly 16-8 reports that at least provide: 16-9 (1) comparisons among all providers of payments 16-10 received, charges, population-based admission or incidence rates, 16-11 and provider quality, with the comparisons grouped according to 16-12 diagnosis and severity, and the identity of each provider by name 16-13 and type or specialty; 16-14 (2) comparisons among all providers of inpatient and 16-15 outpatient charges and payments for room and board, ancillary 16-16 services, drugs, equipment and supplies, and total services, with 16-17 the comparisons grouped according to provider quality and according 16-18 to diagnosis and severity, and the identity of each health care 16-19 facility by name and type; and 16-20 (3) the incidence rate of selected medical or surgical 16-21 procedures, the provider quality, and the payments received for 16-22 those providers, identified by the name and type or specialty, for 16-23 which those elements vary significantly from the norms for all 16-24 providers. 16-25 (c) The council shall adopt rules that give providers the 17-1 opportunity to review data from their facility before initial 17-2 public release. The council shall also adopt rules allowing a 17-3 provider to submit comments regarding specific data from the 17-4 provider's facility, except that this subsection does not authorize 17-5 the provider to challenge or interfere with the release of that 17-6 data. 17-7 (d) If provider data is requested from the council for a 17-8 specific facility or provider, the facility or provider shall be 17-9 notified before the release of the data, except that this 17-10 subsection does not authorize the provider to challenge or 17-11 interfere with the release of that data. 17-12 (e) A report issued by the council shall include a 17-13 reasonable review and comment period before public release of the 17-14 report. 17-15 Sec. 108.011. COLLECTION AND DISSEMINATION OF PROVIDER 17-16 QUALITY DATA. (a) The council shall collect data reflecting 17-17 provider quality based on a methodology established through the 17-18 council's rulemaking process. The methodology shall identify and 17-19 measure quality standards and adhere to any federal mandates. 17-20 (b) Within the first 12 months of operation, the council 17-21 shall develop the methodology for the collection of provider 17-22 quality data. 17-23 (c) After collecting provider quality data for one year, the 17-24 council shall report its findings to the appropriate providers and 17-25 allow them to review and comment on the initial quality outcome 18-1 data. After the review and revision process, quality outcome data 18-2 for any subsequent reports shall be published and made available to 18-3 the public. 18-4 (d) Any methodology adopted by the council for measuring 18-5 quality shall include case-mix qualifiers, severity adjustment 18-6 factors, and any other factors necessary to accurately reflect 18-7 provider quality. 18-8 (e) In addition to the requirements of this section, any 18-9 release of provider quality data shall comply with Sections 18-10 108.010(c), (d), and (e). 18-11 Sec. 108.012. DATA REPORTS AND COMPUTER ACCESS TO COUNCIL 18-12 DATA. (a) The council shall provide special reports derived from 18-13 data and a means for computer-to-computer access to its data. All 18-14 reports shall maintain patient confidentiality as provided by 18-15 Section 108.013. 18-16 (b) The council may charge fees for data to offset the costs 18-17 of development and production of the data. Fees collected under 18-18 this section shall be deposited in the designated account in the 18-19 general revenue fund created in Section 108.016. 18-20 Sec. 108.013. CONFIDENTIALITY AND GENERAL ACCESS TO COUNCIL 18-21 DATA. (a) The information and data received by the council shall 18-22 be used by the council for the benefit of the public. Subject to 18-23 specific limitations established by council rule, the council shall 18-24 make determinations on requests for information in favor of access. 18-25 (b) Unless specifically authorized by this chapter, the 19-1 council may not release and a person or entity may not gain access 19-2 to any data: 19-3 (1) of the council that could reasonably be expected 19-4 to reveal the identity of any payer, other than a payer requesting 19-5 data concerning its own group or an entity entitled to that payer's 19-6 data; 19-7 (2) of the council relating to actual payments to any 19-8 identified provider made by any payer other than a payer requesting 19-9 data on the group for which it purchases or otherwise provides 19-10 covered services or an entity entitled to that payer's data; 19-11 (3) disclosing discounts or differentials between 19-12 payments accepted by providers for services and their billed 19-13 charges obtained by identified payers from identified providers 19-14 unless comparable data on all other payers is also released and the 19-15 council determines that the release of that information is not 19-16 prejudicial or inequitable to any individual payer or provider or 19-17 group, considering the fact that the council is primarily concerned 19-18 with the analysis and dissemination of payments to providers and 19-19 not with discounts; or 19-20 (4) that reveals the zip code number of a patient's 19-21 primary residence. 19-22 (c) All data collected and used by the department and the 19-23 council under this chapter are subject to the confidentiality 19-24 provisions and criminal penalties of Section 311.037, to Section 19-25 81.103, and to Section 5.08, Medical Practice Act (Article 4495b, 20-1 Vernon's Texas Civil Statutes). 20-2 (d) Information on patients and any compilations, reports, 20-3 or analyses produced from the information collected that identify 20-4 patients are not subject to discovery, subpoena, or other means of 20-5 legal compulsion for release to any person or entity except as 20-6 provided by this section, and are not admissible in any civil, 20-7 administrative, or criminal proceeding as provided by Rule 501, 20-8 Texas Rules of Civil Evidence, and Rule 502, Texas Rules of 20-9 Criminal Evidence. 20-10 Sec. 108.014. CIVIL PENALTY. (a) A person who knowingly or 20-11 negligently releases council data in violation of this chapter is 20-12 liable for a civil penalty of not more than $10,000. 20-13 (b) A person who fails to supply data under Section 108.009 20-14 is liable for a civil penalty of not less than $1,000 or more than 20-15 $10,000 for each act of violation. 20-16 (c) The attorney general, at the request of the council, 20-17 shall enforce this chapter. 20-18 Sec. 108.015. TECHNICAL ADVISORY COMMITTEES. The council 20-19 shall appoint technical advisory committees to assist in meeting 20-20 the goals and objectives of this chapter. 20-21 Sec. 108.016. APPROPRIATIONS; DESIGNATED ACCOUNT. (a) The 20-22 council may receive legislative appropriations only from fees 20-23 collected under this chapter or grants or contributions of money 20-24 from any public or private source for the sole purpose of 20-25 performing its duties under this chapter. The council may also 21-1 accept gifts of equipment. 21-2 (b) A designated account is in the general revenue fund for 21-3 all grants and contributions of money to the council and all fees 21-4 collected by the council. Designated account funds shall be 21-5 carried over from fiscal year to fiscal year and from biennium to 21-6 biennium. 21-7 ARTICLE 3 21-8 SECTION 3.01. (a) For the fiscal year ending August 31, 21-9 1994, the sum of $2 million is appropriated from the designated 21-10 account in the general revenue fund to the Texas Health Care Cost 21-11 Containment Council to carry out its duties under Chapter 108, 21-12 Health and Safety Code, as added by this Act. Available funds from 21-13 the designated account or other grants, contributions of money, or 21-14 fees collected by the council over $2 million are also appropriated 21-15 to the council. 21-16 (b) For the fiscal year ending August 31, 1995, the sum of 21-17 $2 million is appropriated from the designated account in the 21-18 general revenue fund to the Texas Health Care Cost Containment 21-19 Council to carry out its duties under Chapter 108, Health and 21-20 Safety Code, as added by this Act. Available funds from the 21-21 designated account or other grants, contributions of money, or fees 21-22 collected by the council over $2 million are also appropriated to 21-23 the council. 21-24 (c) The Texas Health Care Cost Containment Council shall 21-25 begin operations when the designated account created by Section 22-1 108.016, Health and Safety Code, as added by this Act, contains a 22-2 cash balance equal to $1.6 million and those funds are available to 22-3 the council. 22-4 SECTION 3.02. (a) The governor shall make appointments to 22-5 the Texas Health Care Cost Containment Council as soon as 22-6 practicable after the effective date of this Act. 22-7 (b) The governor shall make the initial appointments to the 22-8 Texas Health Care Cost Containment Council as follows: 22-9 (1) one representative of business, one consumer 22-10 representative, one representative of health care facilities, one 22-11 representative of physicians, and one public member serve terms 22-12 expiring September 1, 1995; 22-13 (2) one representative from labor, one representative 22-14 of business, one consumer representative, the representative of 22-15 commercial insurance carriers, and the representative of a health 22-16 maintenance organization serve terms expiring September 1, 1997; 22-17 and 22-18 (3) one representative from labor, one representative 22-19 of business, one consumer representative, one representative of 22-20 health care facilities, and one public member serve terms expiring 22-21 September 1, 1999. 22-22 SECTION 3.03. This Act takes effect September 1, 1993. 22-23 SECTION 3.04. The importance of this legislation and the 22-24 crowded condition of the calendars in both houses create an 22-25 emergency and an imperative public necessity that the 23-1 constitutional rule requiring bills to be read on three several 23-2 days in each house be suspended, and this rule is hereby suspended.