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.