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.