By Hochberg                                            H.B. No. 568
       74R1250 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the mandatory exchange of information between certain
    1-3  regulatory agencies.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 7, Government Code, is amended by adding
    1-6  Chapter 774 to read as follows:
    1-7        CHAPTER 774.  MANDATORY EXCHANGE OF INFORMATION BETWEEN
    1-8                          REGULATORY AGENCIES
    1-9        Sec. 774.001.  DEFINITION.  In this chapter, "regulatory
   1-10  agency" means an agency, including a department, commission, board,
   1-11  or office that:
   1-12              (1)  is created by the constitution or by statute;
   1-13              (2)  is in the executive branch of state government;
   1-14              (3)  has statewide authority; and
   1-15              (4)  has authority to deny, grant, renew, revoke, or
   1-16  suspend a certificate, license, permit, registration, or other form
   1-17  of permission required before a person may engage in an occupation
   1-18  or business.
   1-19        Sec. 774.002.  DUTY TO EXCHANGE INFORMATION.  (a)  A
   1-20  regulatory agency that, in the course of an audit, review,
   1-21  investigation, or examination of a complaint, obtains information
   1-22  that may be grounds for another regulatory agency to conduct an
   1-23  investigation or institute a disciplinary proceeding shall forward
   1-24  the information to the other regulatory agency.
    2-1        (b)  Information that may be grounds for investigative or
    2-2  disciplinary action by another regulatory agency includes
    2-3  information:
    2-4              (1)  relating to a violation of a rule or statute
    2-5  enforced by the regulatory agency; and
    2-6              (2)  that, in the good faith belief of the agency, is
    2-7  likely to lead to the discovery of a violation of a rule or statute
    2-8  enforced by the regulatory agency.
    2-9        Sec. 774.003.  MANNER OF EXCHANGE OF INFORMATION.  (a)  The
   2-10  executive director or equivalent officer of a regulatory agency
   2-11  that obtains information required to be forwarded under Section
   2-12  774.002 shall forward the information to the executive director or
   2-13  equivalent officer of the other regulatory agency not later than
   2-14  the 15th day after the date the agency obtains the information.
   2-15        (b)  After an exchange of information under Subsection (a),
   2-16  an agency shall continue to send other information obtained by the
   2-17  agency relating to the initial exchange of information in the same
   2-18  manner as information obtained under Section 774.002.  The agency
   2-19  that forwards information under Section 774.002 shall send a final
   2-20  report of its investigation, if any, to any other agency to which
   2-21  the agency provided information under this chapter.
   2-22        SECTION 2.  This Act takes effect September 1, 1995, and
   2-23  applies to information obtained by a regulatory agency on or after
   2-24  the effective date of this Act.  Information obtained by a
   2-25  regulatory agency before the effective date of this Act is governed
   2-26  by the law in effect on the date it was obtained, and that former
   2-27  law is continued in effect for that purpose.
    3-1        SECTION 3.  The importance of this legislation and the
    3-2  crowded condition of the calendars in both houses create an
    3-3  emergency and an imperative public necessity that the
    3-4  constitutional rule requiring bills to be read on three several
    3-5  days in each house be suspended, and this rule is hereby suspended.