BILL ANALYSIS C.S.H.B. 568 By: Hochberg April 17, 1995 Committee Report (Substituted) BACKGROUND No general statute currently exists that requires licensing agencies to share information concerning an ongoing investigation with another licensing agency, unless the agency is conducting a criminal investigation. When a violation occurs and a regulatory agency commences an investigation, they are under no obligation to report to another agency any information that may violate the rules or statutes enforced by the other agency or that may lead to the discovery of a violation of a rule or statute enforce by the other agency. This lack of communication leads to duplicative investigations or non-enforcement of penalties against those who violate the rules or statutes of an agency no directly involved in the investigation. PURPOSE To provide an avenue for the mandatory exchange of information between certain regulatory agencies. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 7, Government Code, by adding Chapter 774 as follows: CHAPTER 774. Mandatory Exchange of Information Between Regulatory Agencies. Sec. 774.001. Defines "regulatory agency." Sec. 774.002. If, in the course of an audit, review, investigation, or examinations of a complaint, a regulatory agency obtains information pertaining to the complaint that may be grounds for another regulatory agency to conduct an investigation or institute a disciplinary proceeding against another person or entity, the agency shall forward that information to the second agency. Information that may be grounds for an investigation or disciplinary proceeding includes information relating to a violation of a rule or statute enforced by the agency and that is likely to lead to the discovery of a violation of a rule or statute enforced by the regulatory agency. Confidential or privileged information forwarded by a regulatory agency under this section retains its privileged nature upon its receipt by another agency. An agency's provision of information or failure to provide information under this section does not give rise to a cause of action under this section. Sec. 774.003 The agency that obtains the information required to be forwarded, must forward the information the other agency within 15 days of obtaining the information. The executive directors, or equivalent officers of the agencies have the responsibility to send and receive the information. After sending the initial information, the agency shall continue to send any additional information obtained relating to the initial exchange. The agency that forwards such information shall send a final report of its investigation, if any, to any agencies that it has forwarded information to. SECTION 2. Effective date: September 1, 1995. Makes application of this act prospective. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill stated that a regulatory agency that obtained information during investigation of a complaint that may be grounds for another regulatory agency to conduct an investigation of institute a disciplinary proceeding, shall forward such information to the other regulatory agency. The substitute adds that the information obtained by the first agency must pertain to the complaint and that the information must be grounds for the receiving agency to conduct and investigation against another person or entity. The substitute also adds language to ensure that confidential or privileged information forwarded by a regulatory agency under this section retains its privileged nature upon its receipt by another agency, and that an agency's provision of information or failure to provide information under this section does not give rise to a cause of action under this section. SUMMARY OF COMMITTEE ACTION Pursuant to public notice posted on February 15, 1995, HB 568 was considered by the Committee on State Affairs in a public hearing on February 20, 1995. The Chair laid out HB 568 and recognized Rep. Hochberg to explain the bill. The following person testified for the bill: Matthew T. Wall representing the Texas Hospital Association. The following persons provided neutral testimony on the bill: Bruce A. Levy, M.D., J.D. representing the Texas State Board of Medical Examiners. The Chair recognized Rep. Hochberg to close. The Chair left HB 568 pending. HB 568 was considered by the Committee on State Affairs in a public hearing on March 27, 1995. The Chair laid out HB 568. The committee considered a complete substitute for the bill which was adopted without objection. The bill was reported favorably as substituted with the recommendation that it do pass and be printed, by a record vote of 15 ayes, 0 nay, 0 pnv, 0 absent.