BILL ANALYSIS



C.S.H.B. 553
By: B. Hunter
2-28-95
Committee Report (Substituted)


BACKGROUND

Roughly 85 percent of mental health and mental retardation clients
in Texas receive their state-supported services through local
community centers.  The community centers receive a portion of
their funds from the state. They operate under state laws and rules
adopted by the MHMR Board.

Community centers have been sued under the restraint of trade
provision of the Business and Commerce Code.  This is an
inappropriate use of the restraint of trade law because community
centers carry out state policies, and the state and its
administrative agencies are currently exempt from the law.  Because
community centers function as local delivery points for state
services, and because they carry out state policies, they should be
treated in the Business and Commerce Code in the same manner as the
state and its administrative agencies.

PURPOSE

H.B. 553, as substituted, adds community centers to the entities
exempt from the restraint of trade provision of the Business and
Commerce Code.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
delegate any additional rulemaking authority to a state officer,
institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 534.001, Health and Safety Code, by
making clear that each function of a community center is
governmental.

SECTION 2.     Amends Section 15.03(3) of the Business and Commerce
Code to exempt community centers from the restraint of trade
provisions in Chapter 15, Business and Commerce Code.

SECTION 3.     Applies provisions of the bill to causes of action
that occur on or after the effective date.

SECTION 4.     Effective date: September 15, 1995.

SECTION 5.     Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute for H.B. 553 exempts the community centers
from the restraint of trade provisions in Chapter 15 of the
Business and Commerce Code. The original bill contained the same
exemption but had the additional purpose of extending limited civil
liability protections to officers, employees, and volunteers of
community centers. The substitute for H.B. 553 omits these proposed
protections.


SUMMARY OF COMMITTEE ACTION

H.B. 553 was considered in a public hearing on February 28, 1995.
Testifying for the bill was Betty Hardwick, representing the Texas
Council Risk Management Fund. No one testified against the bill. A
committee substitute to H.B. 553 was offered and adopted. A motion
to report H.B. 553 as substituted to the full House with the
recommendation that it do pass carried with a vote of 5 Ayes, 0
Nays, 0 PNV, and 4 Absent.