H.B. No. 1048
    1-1                                AN ACT
    1-2  relating to the creation of the Texas Health Care Information
    1-3  Council; providing civil penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subtitle E, Title 2, Health and Safety Code, is
    1-6  amended by adding Chapter 108 to read as follows:
    1-7          CHAPTER 108.  TEXAS HEALTH CARE INFORMATION COUNCIL
    1-8        Sec. 108.001.  CREATION OF COUNCIL.  The Texas Health Care
    1-9  Information Council shall administer this chapter and report to the
   1-10  governor, the legislature, and the public.
   1-11        Sec. 108.002.  DEFINITIONS.  In this chapter:
   1-12              (1)  "Board" means the Texas Board of Health.
   1-13              (2)  "Charge" or "rate" means the amount billed by a
   1-14  provider for specific procedures or services provided to a patient
   1-15  before any adjustment for contractual allowances.  The term does
   1-16  not include copayment charges to health maintenance organization
   1-17  enrollees by providers paid by capitation or salary in a health
   1-18  maintenance organization.
   1-19              (3)  "Council" means the Texas Health Care Information
   1-20  Council.
   1-21              (4)  "Data" means information collected under Section
   1-22  108.009 in the form initially received.
   1-23              (5)  "Department" means the Texas Department of Health.
   1-24              (6)  "Health care facility" means:
    2-1                    (A)  a hospital;
    2-2                    (B)  an ambulatory surgical center licensed under
    2-3  Chapter 243;
    2-4                    (C)  a chemical dependency treatment facility
    2-5  licensed under Chapter 464;
    2-6                    (D)  a renal dialysis facility;
    2-7                    (E)  a birthing center;
    2-8                    (F)  a rural health clinic; or
    2-9                    (G)  a federally qualified health center as
   2-10  defined by 42 U.S.C.  Section 1396d(l)(2)(B).
   2-11              (7)  "Health maintenance organization" means an
   2-12  organization as defined in Section 2, Texas Health Maintenance
   2-13  Organization Act (Article 20A.02, Vernon's Texas  Insurance Code).
   2-14              (8)  "Hospital" means a public, for-profit, or
   2-15  nonprofit institution licensed or owned by this state that is a
   2-16  general or special hospital, private mental hospital, chronic
   2-17  disease hospital, or other type of hospital.
   2-18              (9)  "Outcome data" means measures related to the
   2-19  provision of care, including:
   2-20                    (A)  patient demographic information;
   2-21                    (B)  patient length of stay;
   2-22                    (C)  mortality;
   2-23                    (D)  co-morbidity;
   2-24                    (E)  complications; and
   2-25                    (F)  charges.
   2-26              (10)  "Physician" means an individual licensed under
   2-27  the laws of this state to practice medicine under the Medical
    3-1  Practice Act (Article 4495b, Vernon's Texas Civil Statutes).
    3-2              (11)  "Provider" means a physician, health care
    3-3  facility, or health maintenance organization.
    3-4              (12)  "Provider quality" means the extent to which a
    3-5  provider renders care that, within the capabilities of modern
    3-6  medicine, obtains for patients medically acceptable health outcomes
    3-7  and prognoses, after severity adjustment.
    3-8              (13)  "Rural provider" means a provider located in:
    3-9                    (A)  a county with a population of not more than
   3-10  35,000;
   3-11                    (B)  those portions of extended cities that the
   3-12  United States Bureau of the Census has determined to be rural; or
   3-13                    (C)  an area that is not delineated as an
   3-14  urbanized area by the United States Bureau of the Census.
   3-15              (14)  "Severity adjustment" means a method to stratify
   3-16  patient groups by degrees of illness and mortality.
   3-17              (15)  "Uniform patient identifier" means a number
   3-18  assigned to an individual patient and composed of numeric, alpha,
   3-19  or alphanumeric characters.
   3-20              (16)  "Uniform physician identifier" means a number
   3-21  assigned to an individual physician and composed of numeric, alpha,
   3-22  or alphanumeric characters.
   3-23        Sec. 108.003.  COUNCIL COMPOSITION; EXPENSES.  (a)  The
   3-24  council is composed of three nonvoting ex officio state agency
   3-25  members and 15 members appointed by the governor in accordance with
   3-26  this section.
   3-27        (b)  The nonvoting ex officio members of the council are:
    4-1              (1)  the commissioner of public health;
    4-2              (2)  the commissioner of health and human services; and
    4-3              (3)  the commissioner of insurance.
    4-4        (c)  The governor shall appoint the following members of the
    4-5  council:
    4-6              (1)  three representatives of the business community,
    4-7  with at least one representing small businesses, who are purchasers
    4-8  of health care but who are not involved in the provision of health
    4-9  care or health insurance;
   4-10              (2)  two representatives from labor, one of whom is not
   4-11  directly involved with management of health care benefits;
   4-12              (3)  two representatives of consumers who are not
   4-13  professionally involved in the purchase, provision, administration,
   4-14  or review of health care or health care insurance;
   4-15              (4)  two representatives of hospitals;
   4-16              (5)  one representative of health maintenance
   4-17  organizations;
   4-18              (6)  three representatives of physicians who are
   4-19  involved in direct patient care; and
   4-20              (7)  two members who are not professionally involved in
   4-21  the purchase, provision, administration, or review of health care
   4-22  or health care insurance and who have expertise in:
   4-23                    (A)  health planning;
   4-24                    (B)  health economics;
   4-25                    (C)  provider quality assurance;
   4-26                    (D)  statistics or health data management; or
   4-27                    (E)  the reimbursement of medical education and
    5-1  research costs.
    5-2        (d)  The chairman is appointed by and serves at the pleasure
    5-3  of the governor.  Members annually shall elect a vice chairman.
    5-4        (e)  A majority of voting members constitutes a quorum for
    5-5  the transaction of any business.  An act by the majority of the
    5-6  voting members present at any meeting at which there is a quorum is
    5-7  considered to be an act of the council.
    5-8        (f)  The council may appoint subcommittees and may elect any
    5-9  officers subordinate to those provided for in Subsection (d).
   5-10        (g)  The council shall appoint technical advisory committees.
   5-11  The technical advisory committees shall work in coordination with
   5-12  each other and may consult with other professionals, as necessary.
   5-13  The technical advisory committees shall include:
   5-14              (1)  a technical advisory committee that includes,
   5-15  among other individuals, at least five practicing physicians
   5-16  licensed in this state to provide advice and recommendations to the
   5-17  council on:
   5-18                    (A)  the development and implementation of the
   5-19  methodology and the interpretation of provider quality data under
   5-20  Section 108.010; and
   5-21                    (B)  the development and dissemination of
   5-22  consumer education information and materials;
   5-23              (2)  a technical advisory committee composed of at
   5-24  least five practicing physicians licensed in this state who have
   5-25  been actively engaged in organized peer review at a hospital in
   5-26  this state to provide advice, recommendations, and peer review
   5-27  expertise to the council on:
    6-1                    (A)  the use of peer review in the determination
    6-2  of quality inpatient care;
    6-3                    (B)  the development and interpretation of data
    6-4  elements necessary to the determination of quality inpatient care;
    6-5  and
    6-6                    (C)  the development and format of reports and
    6-7  information relating to provider quality;
    6-8              (3)  a technical advisory committee composed of
    6-9  individuals who have expertise in the reimbursement of medical
   6-10  education and research costs; and
   6-11              (4)  a technical advisory committee composed of
   6-12  representatives of health maintenance organizations to assist the
   6-13  council in complying with Section 108.009(o).
   6-14        (h)  A member of the council may not receive compensation for
   6-15  service on the council.  However, the member shall be reimbursed
   6-16  for the member's actual and necessary meals, lodging,
   6-17  transportation, and incidental expenses if incurred while
   6-18  performing council business.
   6-19        (i)  A member of an advisory committee appointed by the
   6-20  council may not receive compensation or reimbursement of any
   6-21  expense incurred while serving on the committee.
   6-22        (j)  Appointments to the council shall be made without regard
   6-23  to the race, color, disability, sex, religion, age, or national
   6-24  origin of appointees.  Additionally, in making the appointments to
   6-25  the council, the governor shall consider geographical
   6-26  representation.
   6-27        (k)  A person may not serve as a member of the council if the
    7-1  person is required to register as a lobbyist under Chapter 305,
    7-2  Government Code, because of the person's activities for
    7-3  compensation on behalf of a profession related to the operation of
    7-4  the council.
    7-5        Sec. 108.004.  MEETINGS.  (a)  The council, council
    7-6  subcommittees, and technical advisory committees are subject to the
    7-7  open meetings law, Chapter 551, Government Code.
    7-8        (b)  The council shall meet as often as necessary, but not
    7-9  less often than quarterly, to perform its duties under this
   7-10  chapter.
   7-11        (c)  The council shall publish a notice of its meetings in at
   7-12  least four newspapers of general circulation in this state.
   7-13        Sec. 108.005.  TERMS.  (a)  The terms of the agency members
   7-14  are concurrent with their terms of office.  The appointed council
   7-15  members serve six-year staggered terms, with the terms of five
   7-16  members expiring September 1 of each odd-numbered year.
   7-17        (b)  An appointed member may not serve more than two full
   7-18  consecutive terms.
   7-19        (c)  It is a ground for removal from the council if a member
   7-20  of the council:
   7-21              (1)  does not have at the time of appointment the
   7-22  qualifications required by Section 108.003;
   7-23              (2)  does not maintain during service the
   7-24  qualifications required by Section 108.003;
   7-25              (3)  cannot discharge the member's duties for a
   7-26  substantial part of the term for which the member is appointed
   7-27  because of illness or disability; or
    8-1              (4)  fails to attend at least one-half of the regularly
    8-2  scheduled meetings that the member is eligible to attend during a
    8-3  calendar year.
    8-4        Sec. 108.006.  POWERS AND DUTIES OF COUNCIL.  (a)  The
    8-5  council shall develop a statewide health care data collection
    8-6  system to collect health care charges, utilization data, provider
    8-7  quality data, and outcome data to facilitate the promotion and
    8-8  accessibility of cost-effective, good quality health care.  The
    8-9  council shall:
   8-10              (1)  direct the collection, dissemination, and analysis
   8-11  of data under this chapter;
   8-12              (2)  contract with the department to collect the data
   8-13  under this chapter;
   8-14              (3)  adopt policies and rules necessary to carry out
   8-15  this chapter, including rules concerning data collection
   8-16  requirements;
   8-17              (4)  build on and not duplicate other data collection
   8-18  required by state or federal law, by an accreditation organization,
   8-19  or by board rule;
   8-20              (5)  working with appropriate agencies, review public
   8-21  health data collection programs in this state and recommend, where
   8-22  appropriate, consolidation of the programs and any legislation
   8-23  necessary to effect the consolidation;
   8-24              (6)  assure that data collected is made available and
   8-25  accessible to interested persons;
   8-26              (7)  prescribe by rule a format for providers to submit
   8-27  data consistent with Section 108.009;
    9-1              (8)  adopt by rule and implement a methodology to
    9-2  collect and disseminate data reflecting provider quality in
    9-3  accordance with Section 108.010;
    9-4              (9)  make reports to the legislature, the governor, and
    9-5  the public on:
    9-6                    (A)  the charges and rate of change in the
    9-7  charges for health care services in this state;
    9-8                    (B)  the effectiveness of the council in carrying
    9-9  out the legislative intent of this chapter;
   9-10                    (C)  if applicable, any recommendations on the
   9-11  need for further legislation; and
   9-12                    (D)  the quality and effectiveness of health care
   9-13  and access to health care for all citizens of this state;
   9-14              (10)  develop an annual work plan and establish
   9-15  priorities to accomplish its duties;
   9-16              (11)  provide consumer education on the interpretation
   9-17  and understanding of the information that is released to the
   9-18  public;
   9-19              (12)  work with the Health and Human Services
   9-20  Commission and each health and human services agency that
   9-21  administers a part of the state Medicaid program to avoid
   9-22  duplication of expenditures of state funds for computer systems,
   9-23  staff, or services in the collection and analysis of data relating
   9-24  to the state Medicaid program; and
   9-25              (13)  work with the Department of Information Resources
   9-26  in developing and implementing the statewide health care data
   9-27  collection system and maintain consistency with Department of
   10-1  Information Resources standards.
   10-2        (b)  The council may:
   10-3              (1)  employ or contract with the department to employ
   10-4  an executive director and other staff, including administrative and
   10-5  legal personnel, necessary to comply with this chapter and rules
   10-6  adopted under this chapter;
   10-7              (2)  engage professional consultants as it considers
   10-8  necessary to the performance of its duties;
   10-9              (3)  adopt rules clarifying which health care
  10-10  facilities must provide data under this chapter; and
  10-11              (4)  apply for and receive any appropriation, donation,
  10-12  or other funds from the state or federal government or any other
  10-13  public or private source, subject to Section 108.015 and
  10-14  limitations and conditions provided by legislative appropriation.
  10-15        (c)  The council may not establish or recommend rates of
  10-16  payment for health care services.
  10-17        (d)  The council may not take an action that affects or
  10-18  relates to the validity, status, or terms of a department
  10-19  interagency agreement or a contract without the board's approval.
  10-20        (e)  In the collection of data, the council shall consider
  10-21  the research and initiatives being pursued by the United States
  10-22  Department of Health and Human Services, the National Committee for
  10-23  Quality Assurance, and the Joint Commission on Accreditation of
  10-24  Healthcare Organizations to reduce potential duplication or
  10-25  inconsistencies.  The council may not adopt rules that conflict
  10-26  with or duplicate any federally mandated data collection programs
  10-27  or requirements of comparable scope.
   11-1        Sec. 108.007.  REVIEW POWERS.  (a)  The council, through the
   11-2  department and  subject to reasonable rules and guidelines, may:
   11-3              (1)  inspect documents and records used by data sources
   11-4  that are required to compile data and reports; and
   11-5              (2)  compel providers to produce accurate documents and
   11-6  records.
   11-7        (b)  The council may enter into a memorandum of understanding
   11-8  with a state agency, including the division of the Health and Human
   11-9  Services Commission responsible for the state Medicaid program, or
  11-10  with a school of public health or another institution of higher
  11-11  education, to share data and expertise, to obtain data for the
  11-12  council, or to make data available to the council.  An agreement
  11-13  entered into under this subsection must protect patient
  11-14  confidentiality.
  11-15        Sec. 108.008.  DUTIES OF DEPARTMENT.  (a)  The department, as
  11-16  the state health planning and development agency under Chapter 104,
  11-17  is responsible for the collection of data under Chapter 311.
  11-18        (b)  The department shall:
  11-19              (1)  contract with the council to collect data under
  11-20  this chapter;
  11-21              (2)  provide administrative and legal assistance to the
  11-22  council in accordance with rules adopted by the board after
  11-23  consulting with the council and set out in the contract with the
  11-24  council;
  11-25              (3)  coordinate administrative responsibilities with
  11-26  the council to avoid unnecessary duplication of the collection of
  11-27  data and other duties;
   12-1              (4)  give the council access to data collected by the
   12-2  department on request of the council;
   12-3              (5)  submit or assist in the council's budget request
   12-4  to the legislature; and
   12-5              (6)  work with the Department of Information Resources
   12-6  in developing and implementing the statewide health care data
   12-7  collection system and maintain consistency with Department of
   12-8  Information Resources standards.
   12-9        (c)  The department may not take an action that affects or
  12-10  relates to the validity, status, or terms of a council interagency
  12-11  agreement or a contract without the council's approval.
  12-12        Sec. 108.009.  DATA SUBMISSION AND COLLECTION.  (a)  The
  12-13  council may collect, and, except as provided by Subsections (c) and
  12-14  (d), providers shall submit to the council or another entity as
  12-15  determined by the council, all data required by this section.  The
  12-16  data shall be collected according to uniform submission formats,
  12-17  coding systems, and other technical specifications necessary to
  12-18  make the incoming data substantially valid, consistent, compatible,
  12-19  and manageable using electronic data processing, if available.
  12-20        (b)  The council shall adopt rules to implement the data
  12-21  submission requirements imposed by Subsection (a) in appropriate
  12-22  stages to allow for the development of efficient systems for the
  12-23  collection and submission of the data.
  12-24        (c)  A rural provider may, but is not required to, provide
  12-25  the data required by this section.
  12-26        (d)  The council may not collect data from individual
  12-27  physicians or from an entity that is composed entirely of
   13-1  physicians and that is a professional association organized under
   13-2  the Texas Professional Association Act (Article 1528f, Vernon's
   13-3  Texas Civil Statutes), a limited liability partnership organized
   13-4  under Section 3.08, Texas Revised Partnership Act (Article
   13-5  6132b-3.08, Vernon's Texas Civil Statutes), or a limited liability
   13-6  company organized under the Texas Limited Liability Company Act
   13-7  (Article 1528n, Vernon's Texas Civil Statutes), except to the
   13-8  extent the entity owns and operates a health care facility in this
   13-9  state.  This subsection does not prohibit the release of data about
  13-10  physicians that has been collected from a health care facility
  13-11  under this chapter.
  13-12        (e)  The council shall establish the department as the single
  13-13  collection point for receipt of data from providers.  With the
  13-14  approval of the council and the board, the department may transfer
  13-15  collection of any data required to be collected by the department
  13-16  under any other law to the statewide health care data collection
  13-17  system.
  13-18        (f)  The council may not require providers to submit data
  13-19  more frequently than quarterly, but providers may submit data on a
  13-20  more frequent basis.
  13-21        (g)  The council shall coordinate data collection with the
  13-22  data collection formats used by federally qualified health centers.
  13-23  To satisfy the requirements of this chapter:
  13-24              (1)  a federally qualified health center shall submit
  13-25  annually to the council a copy of the Medicaid cost report of
  13-26  federally qualified health centers; and
  13-27              (2)  a provider receiving federal funds under 42 U.S.C.
   14-1  Section 254b, 254c, or 256 shall submit annually to the council a
   14-2  copy of the Bureau of Common Reporting Requirements data report
   14-3  developed by the United States Public Health Service.
   14-4        (h)  The council shall, to the extent feasible, coordinate
   14-5  data collection with the data collection formats used by hospitals
   14-6  and other providers.  The council shall accept data in the format
   14-7  developed by the National Uniform Billing Committee (Uniform
   14-8  Hospital Billing Form UB 92) and HCFA-1500 or their successors or
   14-9  other universally accepted standardized forms approved by the
  14-10  council.
  14-11        (i)  The council shall develop by rule reasonable alternate
  14-12  data submission procedures for providers that do not possess
  14-13  electronic data processing capacity.
  14-14        (j)  The council shall collect data and disseminate reports
  14-15  reflecting provider quality in accordance with Section 108.010.
  14-16        (k)  In developing the statewide health care data collection
  14-17  system, the council shall identify health care data elements
  14-18  relating to health care charges, provider quality, payer type, the
  14-19  outcome data related to health care services, and the use of health
  14-20  care services by consumers.
  14-21        (l)  The council shall develop and implement a health care
  14-22  information plan to be used by the department to:
  14-23              (1)  support public health and preventive health
  14-24  initiatives;
  14-25              (2)  assist in the delivery of primary and preventive
  14-26  health care services;
  14-27              (3)  facilitate the establishment of appropriate
   15-1  benchmark data to measure performance improvements;
   15-2              (4)  establish and maintain a systematic approach for
   15-3  the collection, storage, and analysis of health care data for
   15-4  longitudinal, epidemiological, and policy impact studies; and
   15-5              (5)  develop and use system-based protocols to identify
   15-6  individuals and populations at risk.
   15-7        (m)  To the extent feasible, the council shall obtain from
   15-8  public records the information that is available from those
   15-9  records.
  15-10        (n)  The council shall develop the statewide health care data
  15-11  collection system in accordance with Department of Information
  15-12  Resources standards.
  15-13        (o)  A health maintenance organization shall annually submit
  15-14  to the council aggregate data by service area required by the
  15-15  Health Plan Employer Data Information Set (HEDIS) as operated by
  15-16  the National Committee for Quality Assurance.  The council may
  15-17  approve the submission of data in accordance with other methods
  15-18  generally used by the health maintenance organization industry.
  15-19  This subsection does not relieve a health care facility that
  15-20  provides services to a health maintenance organization from the
  15-21  requirements of this chapter.
  15-22        Sec. 108.010.  COLLECTION AND DISSEMINATION OF PROVIDER
  15-23  QUALITY DATA.  (a)  Subject to Section 108.009, the council shall
  15-24  collect data reflecting provider quality based on a methodology and
  15-25  review process established through the council's rulemaking
  15-26  process.  The methodology shall identify and measure quality
  15-27  standards and adhere to any federal mandates.
   16-1        (b)  After a majority of the council has been appointed, the
   16-2  council shall study and analyze initial methodologies for obtaining
   16-3  provider quality data.  The council shall adopt an initial
   16-4  methodology not later than January 1, 1997, but may not adopt the
   16-5  initial methodology before the first anniversary of the date on
   16-6  which a majority of the council is appointed.  If the council
   16-7  determines additional time for development of the initial
   16-8  methodology is needed, the council, by a two-thirds vote of the
   16-9  full council, may extend the deadline established by this
  16-10  subsection for adopting the initial methodology.
  16-11        (c)  The council shall test the methodology by collecting
  16-12  provider quality data for one year, subject to Section 108.009.
  16-13  The council may test using pilot methodologies.  After collecting
  16-14  provider quality data for one year, the council shall report
  16-15  findings applicable to a provider to that provider and allow the
  16-16  provider to review and comment on the initial quality outcome data
  16-17  applicable to that provider.  The council shall verify the accuracy
  16-18  of the data during this review and revision process.  After the
  16-19  review and revision process, quality outcome data for subsequent
  16-20  reports shall be published and made available to the public, on a
  16-21  time schedule the council considers appropriate.
  16-22        (d)  If the council determines that quality outcome data to
  16-23  be published under Subsection (c) does not provide the intended
  16-24  result or is inaccurate or inappropriate for dissemination, the
  16-25  council is not required to publish the data or reports based in
  16-26  whole or in part on the data.  This subsection does not affect the
  16-27  release of data collected under Section 108.009.
   17-1        (e)  The council shall adopt rules allowing a provider to
   17-2  submit written comments regarding any specific data to be released
   17-3  concerning the provider.  The comments may be attached to any
   17-4  public release of data.
   17-5        (f)  The methodology adopted by the council for measuring
   17-6  quality shall include case-mix qualifiers, severity adjustment
   17-7  factors, adjustments for medical education and research, and any
   17-8  other factors necessary to accurately reflect provider quality.
   17-9        (g)  In addition to the requirements of this section, any
  17-10  release of provider quality data shall comply with Sections
  17-11  108.011(d)-(f).
  17-12        (h)  A quality outcome data report may not identify an
  17-13  individual physician by name, but must identify the physician by
  17-14  the uniform physician identifier designated by the council under
  17-15  Section 108.011(c).
  17-16        Sec. 108.011.  DATA DISSEMINATION AND PUBLICATION.  (a)  The
  17-17  council shall promptly provide data to those requesting it, subject
  17-18  to the restrictions on access to council data prescribed by
  17-19  Sections 108.010 and 108.013.
  17-20        (b)  Subject to the restrictions on access to council data
  17-21  prescribed by Sections 108.010 and 108.013, and using the data
  17-22  collected under Section 108.009 and other data, records, and
  17-23  matters of record available to it, the council shall prepare and
  17-24  issue reports to the governor, the legislature, and the public as
  17-25  provided by this section and Section 108.006(a).  The council must
  17-26  issue the reports at least annually.
  17-27        (c)  Subject to the restrictions on access to council data
   18-1  prescribed by Sections 108.010 and 108.013, the council shall
   18-2  prepare and issue reports that provide information relating to
   18-3  providers, such as the incidence rate of selected medical or
   18-4  surgical procedures and the provider quality.  The reports must
   18-5  provide the data in a manner that identifies individual providers
   18-6  and that identifies and compares data elements for all providers.
   18-7  Individual physicians may not be identified by name, but shall be
   18-8  identified by uniform physician identifiers.  The council by rule
   18-9  shall designate the characters to be used as uniform physician
  18-10  identifiers.
  18-11        (d)  The council shall adopt procedures to verify the
  18-12  accuracy of the data before a report containing the data is
  18-13  released to the public.
  18-14        (e)  If provider data is requested from the council for a
  18-15  specific provider, the council shall notify the provider about the
  18-16  release of the data.  This subsection does not authorize the
  18-17  provider to interfere with the release of that data.
  18-18        (f)  A report issued by the council shall include a
  18-19  reasonable review and comment period for the affected providers
  18-20  before public release of the report.
  18-21        Sec. 108.012.  COMPUTER ACCESS TO DATA.  (a)  The council
  18-22  shall provide a means for computer-to-computer access to the data.
  18-23  All reports shall maintain patient confidentiality as provided by
  18-24  Section 108.013.
  18-25        (b)  The council may charge a person requesting data a fee
  18-26  for the data.  The fees may reflect the quantity of information
  18-27  provided and the expense incurred by the council in collecting and
   19-1  providing the data and shall be set at a level     that will raise
   19-2  revenue sufficient for the operation of the council.  The council
   19-3  may not charge a fee for providing data to another state agency.
   19-4        Sec. 108.013.  CONFIDENTIALITY AND GENERAL ACCESS TO DATA.
   19-5  (a)  The data received by the council shall be used by the council
   19-6  for the benefit of the public.   The council is subject to the open
   19-7  records law, Chapter 552, Government Code.  Subject to specific
   19-8  limitations established by this chapter and council rule, the
   19-9  council shall make determinations on requests for information in
  19-10  favor of access.
  19-11        (b)  The council by rule shall designate the characters to be
  19-12  used by providers as uniform patient identifiers.
  19-13        (c)  Unless specifically authorized by this chapter, the
  19-14  council may not release and a person or entity may not gain access
  19-15  to any data:
  19-16              (1)  that could reasonably be expected to reveal the
  19-17  identity of a patient or physician or that reveals the zip code of
  19-18  a patient's primary residence;
  19-19              (2)  disclosing provider discounts or differentials
  19-20  between payments and billed charges; or
  19-21              (3)  relating to actual payments to an identified
  19-22  provider made by a payer.
  19-23        (d)  All data collected and used by the department and the
  19-24  council under this chapter is subject to the confidentiality
  19-25  provisions and criminal penalties of:
  19-26              (1)  Section 311.037;
  19-27              (2)  Section 81.103; and
   20-1              (3)  Section 5.08, Medical Practice Act (Article 4495b,
   20-2  Vernon's Texas Civil Statutes).
   20-3        (e)  Data on patients and physicians and compilations,
   20-4  reports, or analyses produced from the data collected that identify
   20-5  patients and physicians are not:
   20-6              (1)  subject to discovery, subpoena, or other means of
   20-7  legal compulsion for release to any person or entity except as
   20-8  provided by this section; or
   20-9              (2)  admissible in any civil, administrative, or
  20-10  criminal proceeding.
  20-11        (f)  Notwithstanding Subsection (c)(1), the council may use
  20-12  zip code information to analyze data on a geographic basis.
  20-13        Sec. 108.014.  CIVIL PENALTY.  (a)  A person who knowingly or
  20-14  negligently releases data in violation of this chapter is liable
  20-15  for a civil penalty of not more than $10,000.
  20-16        (b)  A person who fails to supply available data under
  20-17  Sections 108.009 and 108.010 is liable for a civil penalty of not
  20-18  less than $1,000 or more than $10,000 for each act of violation.
  20-19        (c)  The attorney general, at the request of the council,
  20-20  shall enforce this chapter.
  20-21        Sec. 108.015.  CONFLICT OF INTEREST.  The council may not
  20-22  accept a donation from a person required to provide data under this
  20-23  chapter or from a person or business entity who provides goods or
  20-24  services to the council for compensation.
  20-25        SECTION 2.  Section 311.032(a), Health and Safety Code, is
  20-26  amended to read as follows:
  20-27        (a)  The department shall establish a uniform reporting and
   21-1  collection system for hospital financial and<,> utilization<, and
   21-2  patient discharge> data.
   21-3        SECTION 3.  Section 311.035(c), Health and Safety Code, is
   21-4  amended to read as follows:
   21-5        (c)  The department shall enter into an interagency agreement
   21-6  with the Texas Department of Mental Health and Mental Retardation,
   21-7  Texas Commission on Alcohol and Drug Abuse, and Texas Department of
   21-8  Insurance relating to the mental health and chemical dependency
   21-9  <hospital discharge> data collected under Section 311.0335.  The
  21-10  agreement shall address the collection, analysis, and sharing of
  21-11  the data by the agencies.
  21-12        SECTION 4.  Subchapter C, Chapter 2054, Government Code, is
  21-13  amended by adding Section 2054.0541 to read as follows:
  21-14        Sec. 2054.0541.  STATEWIDE HEALTH CARE DATA COLLECTION
  21-15  SYSTEM.  The department shall assist the Texas Health Care
  21-16  Information Council and the Texas Department of Health with
  21-17  planning, analyses, and management functions relating to the
  21-18  procurement, use, and implementation of a statewide health care
  21-19  data collection system under Chapter 108, Health and Safety Code.
  21-20        SECTION 5.  The following laws are repealed:
  21-21              (1)  Section 311.035(b), Health and Safety Code; and
  21-22              (2)  Section 311.034, Health and Safety Code.
  21-23        SECTION 6.  (a)  The governor shall make appointments to the
  21-24  Texas Health Care Information Council as soon as practicable after
  21-25  the effective date of this Act.
  21-26        (b)  The governor shall make the initial appointments to the
  21-27  Texas Health Care Information Council as follows:
   22-1              (1)  one representative of business, one representative
   22-2  from labor, one representative of hospitals, one representative of
   22-3  physicians, and one non-health-care professional member serve terms
   22-4  expiring September 1, 1997;
   22-5              (2)  one representative of business, one consumer
   22-6  representative, one representative of physicians, one
   22-7  representative of hospitals, and the representative of a health
   22-8  maintenance organization serve terms expiring September 1, 1999;
   22-9  and
  22-10              (3)  one representative from labor, one representative
  22-11  of business, one consumer representative, one representative of
  22-12  physicians, and one non-health-care professional member serve terms
  22-13  expiring September 1, 2001.
  22-14        SECTION 7.  Not later than December 1, 1996, the Texas Health
  22-15  Care Information Council appointed under Chapter 108, Health and
  22-16  Safety Code, as added by this Act, shall make recommendations under
  22-17  Section 108.006(a)(5) of that code relating to consolidation of
  22-18  health data collection programs existing on the effective date of
  22-19  this Act, together with proposed legislation necessary to effect
  22-20  any recommended consolidation.
  22-21        SECTION 8.  This Act takes effect September 1, 1995.
  22-22        SECTION 9.  The importance of this legislation and the
  22-23  crowded condition of the calendars in both houses create an
  22-24  emergency and an imperative public necessity that the
  22-25  constitutional rule requiring bills to be read on three several
  22-26  days in each house be suspended, and this rule is hereby suspended.