1-1        By:  Maxey, et al. (Senate Sponsor - Patterson) H.B. No. 1048
    1-2        (In the Senate - Received from the House April 27, 1995;
    1-3  May 1, 1995, read first time and referred to Committee on Health
    1-4  and Human Services; May 17, 1995, reported adversely, with
    1-5  favorable Committee Substitute by the following vote:  Yeas 9, Nays
    1-6  0; May 17, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR H.B. No. 1048               By:  Patterson
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the creation of the Texas Health Care Information
   1-11  Council; providing civil penalties.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Subtitle E, Title 2, Health and Safety Code, is
   1-14  amended by adding Chapter 108 to read as follows:
   1-15          CHAPTER 108.  TEXAS HEALTH CARE INFORMATION COUNCIL
   1-16        Sec. 108.001.  CREATION OF COUNCIL.  The Texas Health Care
   1-17  Information Council shall administer this chapter and report to the
   1-18  governor, the legislature, and the public.
   1-19        Sec. 108.002.  DEFINITIONS.  In this chapter:
   1-20              (1)  "Board" means the Texas Board of Health.
   1-21              (2)  "Charge" or "rate" means the amount billed by a
   1-22  provider for specific procedures or services provided to a patient
   1-23  before any adjustment for contractual allowances.  The term does
   1-24  not include copayment charges to health maintenance organization
   1-25  enrollees by providers paid by capitation or salary in a health
   1-26  maintenance organization.
   1-27              (3)  "Council" means the Texas Health Care Information
   1-28  Council.
   1-29              (4)  "Data" means information collected under Section
   1-30  108.009 in the form initially received.
   1-31              (5)  "Department" means the Texas Department of Health.
   1-32              (6)  "Health care facility" means:
   1-33                    (A)  a hospital;
   1-34                    (B)  an ambulatory surgical center licensed under
   1-35  Chapter 243;
   1-36                    (C)  a chemical dependency treatment facility
   1-37  licensed under Chapter 464;
   1-38                    (D)  a renal dialysis facility;
   1-39                    (E)  a birthing center;
   1-40                    (F)  a rural health clinic; or
   1-41                    (G)  a federally qualified health center as
   1-42  defined by 42 U.S.C.  Section 1396d(l)(2)(B).
   1-43              (7)  "Health maintenance organization" means an
   1-44  organization as defined in Section 2, Texas Health Maintenance
   1-45  Organization Act (Article 20A.02, Vernon's Texas  Insurance Code).
   1-46              (8)  "Hospital" means a public, for-profit, or
   1-47  nonprofit institution licensed or owned by this state that is a
   1-48  general or special hospital, private mental hospital, chronic
   1-49  disease hospital, or other type of hospital.
   1-50              (9)  "Outcome data" means measures related to the
   1-51  provision of care, including:
   1-52                    (A)  patient demographic information;
   1-53                    (B)  patient length of stay;
   1-54                    (C)  mortality;
   1-55                    (D)  co-morbidity;
   1-56                    (E)  complications; and
   1-57                    (F)  charges.
   1-58              (10)  "Physician" means an individual licensed under
   1-59  the laws of this state to practice medicine under the Medical
   1-60  Practice Act (Article 4495b, Vernon's Texas Civil Statutes).
   1-61              (11)  "Provider" means a physician, health care
   1-62  facility, or health maintenance organization.
   1-63              (12)  "Provider quality" means the extent to which a
   1-64  provider renders care that, within the capabilities of modern
   1-65  medicine, obtains for patients medically acceptable health outcomes
   1-66  and prognoses, after severity adjustment.
   1-67              (13)  "Rural provider" means a provider located in:
   1-68                    (A)  a county with a population of not more than
    2-1  35,000;
    2-2                    (B)  those portions of extended cities that the
    2-3  United States Bureau of the Census has determined to be rural; or
    2-4                    (C)  an area that is not delineated as an
    2-5  urbanized area by the United States Bureau of the Census.
    2-6              (14)  "Severity adjustment" means a method to stratify
    2-7  patient groups by degrees of illness and mortality.
    2-8              (15)  "Uniform patient identifier" means a number
    2-9  assigned to an individual patient and composed of numeric, alpha,
   2-10  or alphanumeric characters.
   2-11              (16)  "Uniform physician identifier" means a number
   2-12  assigned to an individual physician and composed of numeric, alpha,
   2-13  or alphanumeric characters.
   2-14        Sec. 108.003.  COUNCIL COMPOSITION; EXPENSES.  (a)  The
   2-15  council is composed of three nonvoting ex officio state agency
   2-16  members and 15 members appointed by the governor in accordance with
   2-17  this section.
   2-18        (b)  The nonvoting ex officio members of the council are:
   2-19              (1)  the commissioner of public health;
   2-20              (2)  the commissioner of health and human services; and
   2-21              (3)  the commissioner of insurance.
   2-22        (c)  The governor shall appoint the following members of the
   2-23  council:
   2-24              (1)  three representatives of the business community,
   2-25  with at least one representing small businesses, who are purchasers
   2-26  of health care but who are not involved in the provision of health
   2-27  care or health insurance;
   2-28              (2)  two representatives from labor, one of whom is not
   2-29  directly involved with management of health care benefits;
   2-30              (3)  two representatives of consumers who are not
   2-31  professionally involved in the purchase, provision, administration,
   2-32  or review of health care or health care insurance;
   2-33              (4)  two representatives of hospitals;
   2-34              (5)  one representative of health maintenance
   2-35  organizations;
   2-36              (6)  three representatives of physicians who are
   2-37  involved in direct patient care; and
   2-38              (7)  two members who are not professionally involved in
   2-39  the purchase, provision, administration, or review of health care
   2-40  or health care insurance and who have expertise in:
   2-41                    (A)  health planning;
   2-42                    (B)  health economics;
   2-43                    (C)  provider quality assurance;
   2-44                    (D)  statistics or health data management; or
   2-45                    (E)  the reimbursement of medical education and
   2-46  research costs.
   2-47        (d)  The chairman is appointed by and serves at the pleasure
   2-48  of the governor.  Members annually shall elect a vice chairman.
   2-49        (e)  A majority of voting members constitutes a quorum for
   2-50  the transaction of any business.  An act by the majority of the
   2-51  voting members present at any meeting at which there is a quorum is
   2-52  considered to be an act of the council.
   2-53        (f)  The council may appoint subcommittees and may elect any
   2-54  officers subordinate to those provided for in Subsection (d).
   2-55        (g)  The council shall appoint technical advisory committees.
   2-56  The technical advisory committees shall work in coordination with
   2-57  each other and may consult with other professionals, as necessary.
   2-58  The technical advisory committees shall include:
   2-59              (1)  a technical advisory committee that includes,
   2-60  among other individuals, at least five practicing physicians
   2-61  licensed in this state to provide advice and recommendations to the
   2-62  council on:
   2-63                    (A)  the development and implementation of the
   2-64  methodology and the interpretation of provider quality data under
   2-65  Section 108.010; and
   2-66                    (B)  the development and dissemination of
   2-67  consumer education information and materials;
   2-68              (2)  a technical advisory committee composed of at
   2-69  least five practicing physicians licensed in this state who have
   2-70  been actively engaged in organized peer review at a hospital in
    3-1  this state to provide advice, recommendations, and peer review
    3-2  expertise to the council on:
    3-3                    (A)  the use of peer review in the determination
    3-4  of quality inpatient care;
    3-5                    (B)  the development and interpretation of data
    3-6  elements necessary to the determination of quality inpatient care;
    3-7  and
    3-8                    (C)  the development and format of reports and
    3-9  information relating to provider quality;
   3-10              (3)  a technical advisory committee composed of
   3-11  individuals who have expertise in the reimbursement of medical
   3-12  education and research costs; and
   3-13              (4)  a technical advisory committee composed of
   3-14  representatives of health maintenance organizations to assist the
   3-15  council in complying with Section 108.009(o).
   3-16        (h)  A member of the council may not receive compensation for
   3-17  service on the council.  However, the member shall be reimbursed
   3-18  for the member's actual and necessary meals, lodging,
   3-19  transportation, and incidental expenses if incurred while
   3-20  performing council business.
   3-21        (i)  A member of an advisory committee appointed by the
   3-22  council may not receive compensation or reimbursement of any
   3-23  expense incurred while serving on the committee.
   3-24        (j)  Appointments to the council shall be made without regard
   3-25  to the race, color, disability, sex, religion, age, or national
   3-26  origin of appointees.  Additionally, in making the appointments to
   3-27  the council, the governor shall consider geographical
   3-28  representation.
   3-29        (k)  A person may not serve as a member of the council if the
   3-30  person is required to register as a lobbyist under Chapter 305,
   3-31  Government Code, because of the person's activities for
   3-32  compensation on behalf of a profession related to the operation of
   3-33  the council.
   3-34        Sec. 108.004.  MEETINGS.  (a)  The council, council
   3-35  subcommittees, and technical advisory committees are subject to the
   3-36  open meetings law, Chapter 551, Government Code.
   3-37        (b)  The council shall meet as often as necessary, but not
   3-38  less often than quarterly, to perform its duties under this
   3-39  chapter.
   3-40        (c)  The council shall publish a notice of its meetings in at
   3-41  least four newspapers of general circulation in this state.
   3-42        Sec. 108.005.  TERMS.  (a)  The terms of the agency members
   3-43  are concurrent with their terms of office.  The appointed council
   3-44  members serve six-year staggered terms, with the terms of five
   3-45  members expiring September 1 of each odd-numbered year.
   3-46        (b)  An appointed member may not serve more than two full
   3-47  consecutive terms.
   3-48        (c)  It is a ground for removal from the council if a member
   3-49  of the council:
   3-50              (1)  does not have at the time of appointment the
   3-51  qualifications required by Section 108.003;
   3-52              (2)  does not maintain during service the
   3-53  qualifications required by Section 108.003;
   3-54              (3)  cannot discharge the member's duties for a
   3-55  substantial part of the term for which the member is appointed
   3-56  because of illness or disability; or
   3-57              (4)  fails to attend at least one-half of the regularly
   3-58  scheduled meetings that the member is eligible to attend during a
   3-59  calendar year.
   3-60        Sec. 108.006.  POWERS AND DUTIES OF COUNCIL.  (a)  The
   3-61  council shall develop a statewide health care data collection
   3-62  system to collect health care charges, utilization data, provider
   3-63  quality data, and outcome data to facilitate the promotion and
   3-64  accessibility of cost-effective, good quality health care.  The
   3-65  council shall:
   3-66              (1)  direct the collection, dissemination, and analysis
   3-67  of data under this chapter;
   3-68              (2)  contract with the department to collect the data
   3-69  under this chapter;
   3-70              (3)  adopt policies and rules necessary to carry out
    4-1  this chapter, including rules concerning data collection
    4-2  requirements;
    4-3              (4)  build on and not duplicate other data collection
    4-4  required by state or federal law, by an accreditation organization,
    4-5  or by board rule;
    4-6              (5)  working with appropriate agencies, review public
    4-7  health data collection programs in this state and recommend, where
    4-8  appropriate, consolidation of the programs and any legislation
    4-9  necessary to effect the consolidation;
   4-10              (6)  assure that data collected is made available and
   4-11  accessible to interested persons;
   4-12              (7)  prescribe by rule a format for providers to submit
   4-13  data consistent with Section 108.009;
   4-14              (8)  adopt by rule and implement a methodology to
   4-15  collect and disseminate data reflecting provider quality in
   4-16  accordance with Section 108.010;
   4-17              (9)  make reports to the legislature, the governor, and
   4-18  the public on:
   4-19                    (A)  the charges and rate of change in the
   4-20  charges for health care services in this state;
   4-21                    (B)  the effectiveness of the council in carrying
   4-22  out the legislative intent of this chapter;
   4-23                    (C)  if applicable, any recommendations on the
   4-24  need for further legislation; and
   4-25                    (D)  the quality and effectiveness of health care
   4-26  and access to health care for all citizens of this state;
   4-27              (10)  develop an annual work plan and establish
   4-28  priorities to accomplish its duties;
   4-29              (11)  provide consumer education on the interpretation
   4-30  and understanding of the information that is released to the
   4-31  public;
   4-32              (12)  work with the Health and Human Services
   4-33  Commission and each health and human services agency that
   4-34  administers a part of the state Medicaid program to avoid
   4-35  duplication of expenditures of state funds for computer systems,
   4-36  staff, or services in the collection and analysis of data relating
   4-37  to the state Medicaid program; and
   4-38              (13)  work with the Department of Information Resources
   4-39  in developing and implementing the statewide health care data
   4-40  collection system and maintain consistency with Department of
   4-41  Information Resources standards.
   4-42        (b)  The council may:
   4-43              (1)  employ or contract with the department to employ
   4-44  an executive director and other staff, including administrative and
   4-45  legal personnel, necessary to comply with this chapter and rules
   4-46  adopted under this chapter;
   4-47              (2)  engage professional consultants as it considers
   4-48  necessary to the performance of its duties;
   4-49              (3)  adopt rules clarifying which health care
   4-50  facilities must provide data under this chapter; and
   4-51              (4)  apply for and receive any appropriation, donation,
   4-52  or other funds from the state or federal government or any other
   4-53  public or private source, subject to Section 108.015 and
   4-54  limitations and conditions provided by legislative appropriation.
   4-55        (c)  The council may not establish or recommend rates of
   4-56  payment for health care services.
   4-57        (d)  The council may not take an action that affects or
   4-58  relates to the validity, status, or terms of a department
   4-59  interagency agreement or a contract without the board's approval.
   4-60        (e)  In the collection of data, the council shall consider
   4-61  the research and initiatives being pursued by the United States
   4-62  Department of Health and Human Services, the National Committee for
   4-63  Quality Assurance, and the Joint Commission on Accreditation of
   4-64  Healthcare Organizations to reduce potential duplication or
   4-65  inconsistencies.  The council may not adopt rules that conflict
   4-66  with or duplicate any federally mandated data collection programs
   4-67  or requirements of comparable scope.
   4-68        Sec. 108.007.  REVIEW POWERS.  (a)  The council, through the
   4-69  department and  subject to reasonable rules and guidelines, may:
   4-70              (1)  inspect documents and records used by data sources
    5-1  that are required to compile data and reports; and
    5-2              (2)  compel providers to produce accurate documents and
    5-3  records.
    5-4        (b)  The council may enter into a memorandum of understanding
    5-5  with a state agency, including the division of the Health and Human
    5-6  Services Commission responsible for the state Medicaid program, or
    5-7  with a school of public health or another institution of higher
    5-8  education, to share data and expertise, to obtain data for the
    5-9  council, or to make data available to the council.  An agreement
   5-10  entered into under this subsection must protect patient
   5-11  confidentiality.
   5-12        Sec. 108.008.  DUTIES OF DEPARTMENT.  (a)  The department, as
   5-13  the state health planning and development agency under Chapter 104,
   5-14  is responsible for the collection of data under Chapter 311.
   5-15        (b)  The department shall:
   5-16              (1)  contract with the council to collect data under
   5-17  this chapter;
   5-18              (2)  provide administrative and legal assistance to the
   5-19  council in accordance with rules adopted by the board after
   5-20  consulting with the council and set out in the contract with the
   5-21  council;
   5-22              (3)  coordinate administrative responsibilities with
   5-23  the council to avoid unnecessary duplication of the collection of
   5-24  data and other duties;
   5-25              (4)  give the council access to data collected by the
   5-26  department on request of the council;
   5-27              (5)  submit or assist in the council's budget request
   5-28  to the legislature; and
   5-29              (6)  work with the Department of Information Resources
   5-30  in developing and implementing the statewide health care data
   5-31  collection system and maintain consistency with Department of
   5-32  Information Resources standards.
   5-33        (c)  The department may not take an action that affects or
   5-34  relates to the validity, status, or terms of a council interagency
   5-35  agreement or a contract without the council's approval.
   5-36        Sec. 108.009.  DATA SUBMISSION AND COLLECTION.  (a)  The
   5-37  council may collect, and, except as provided by Subsections (c) and
   5-38  (d), providers shall submit to the council or another entity as
   5-39  determined by the council, all data required by this section.  The
   5-40  data shall be collected according to uniform submission formats,
   5-41  coding systems, and other technical specifications necessary to
   5-42  make the incoming data substantially valid, consistent, compatible,
   5-43  and manageable using electronic data processing, if available.
   5-44        (b)  The council shall adopt rules to implement the data
   5-45  submission requirements imposed by Subsection (a) in appropriate
   5-46  stages to allow for the development of efficient systems for the
   5-47  collection and submission of the data.
   5-48        (c)  A rural provider may, but is not required to, provide
   5-49  the data required by this section.
   5-50        (d)  The council may not collect data from individual
   5-51  physicians or from an entity that is composed entirely of
   5-52  physicians and that is a professional association organized under
   5-53  the Texas Professional Association Act (Article 1528f, Vernon's
   5-54  Texas Civil Statutes), a limited liability partnership organized
   5-55  under Section 3.08, Texas Revised Partnership Act (Article
   5-56  6132b-3.08, Vernon's Texas Civil Statutes), or a limited liability
   5-57  company organized under the Texas Limited Liability Company Act
   5-58  (Article 1528n, Vernon's Texas Civil Statutes), except to the
   5-59  extent the entity owns and operates a health care facility in this
   5-60  state.  This subsection does not prohibit the release of data about
   5-61  physicians that has been collected from a health care facility
   5-62  under this chapter.
   5-63        (e)  The council shall establish the department as the single
   5-64  collection point for receipt of data from providers.  With the
   5-65  approval of the council and the board, the department may transfer
   5-66  collection of any data required to be collected by the department
   5-67  under any other law to the statewide health care data collection
   5-68  system.
   5-69        (f)  The council may not require providers to submit data
   5-70  more frequently than quarterly, but providers may submit data on a
    6-1  more frequent basis.
    6-2        (g)  The council shall coordinate data collection with the
    6-3  data collection formats used by federally qualified health centers.
    6-4  To satisfy the requirements of this chapter:
    6-5              (1)  a federally qualified health center shall submit
    6-6  annually to the council a copy of the Medicaid cost report of
    6-7  federally qualified health centers; and
    6-8              (2)  a provider receiving federal funds under 42 U.S.C.
    6-9  Section 254b, 254c, or 256 shall submit annually to the council a
   6-10  copy of the Bureau of Common Reporting Requirements data report
   6-11  developed by the United States Public Health Service.
   6-12        (h)  The council shall, to the extent feasible, coordinate
   6-13  data collection with the data collection formats used by hospitals
   6-14  and other providers.  The council shall accept data in the format
   6-15  developed by the National Uniform Billing Committee (Uniform
   6-16  Hospital Billing Form UB 92) and HCFA-1500 or their successors or
   6-17  other universally accepted standardized forms approved by the
   6-18  council.
   6-19        (i)  The council shall develop by rule reasonable alternate
   6-20  data submission procedures for providers that do not possess
   6-21  electronic data processing capacity.
   6-22        (j)  The council shall collect data and disseminate reports
   6-23  reflecting provider quality in accordance with Section 108.010.
   6-24        (k)  In developing the statewide health care data collection
   6-25  system, the council shall identify health care data elements
   6-26  relating to health care charges, provider quality, payer type, the
   6-27  outcome data related to health care services, and the use of health
   6-28  care services by consumers.
   6-29        (l)  The council shall develop and implement a health care
   6-30  information plan to be used by the department to:
   6-31              (1)  support public health and preventive health
   6-32  initiatives;
   6-33              (2)  assist in the delivery of primary and preventive
   6-34  health care services;
   6-35              (3)  facilitate the establishment of appropriate
   6-36  benchmark data to measure performance improvements;
   6-37              (4)  establish and maintain a systematic approach for
   6-38  the collection, storage, and analysis of health care data for
   6-39  longitudinal, epidemiological, and policy impact studies; and
   6-40              (5)  develop and use system-based protocols to identify
   6-41  individuals and populations at risk.
   6-42        (m)  To the extent feasible, the council shall obtain from
   6-43  public records the information that is available from those
   6-44  records.
   6-45        (n)  The council shall develop the statewide health care data
   6-46  collection system in accordance with Department of Information
   6-47  Resources standards.
   6-48        (o)  A health maintenance organization shall annually submit
   6-49  to the council aggregate data by service area required by the
   6-50  Health Plan Employer Data Information Set (HEDIS) as operated by
   6-51  the National Committee for Quality Assurance.  The council may
   6-52  approve the submission of data in accordance with other methods
   6-53  generally used by the health maintenance organization industry.
   6-54  This subsection does not relieve a health care facility that
   6-55  provides services to a health maintenance organization from the
   6-56  requirements of this chapter.
   6-57        Sec. 108.010.  COLLECTION AND DISSEMINATION OF PROVIDER
   6-58  QUALITY DATA.  (a)  Subject to Section 108.009, the council shall
   6-59  collect data reflecting provider quality based on a methodology and
   6-60  review process established through the council's rulemaking
   6-61  process.  The methodology shall identify and measure quality
   6-62  standards and adhere to any federal mandates.
   6-63        (b)  After a majority of the council has been appointed, the
   6-64  council shall study and analyze initial methodologies for obtaining
   6-65  provider quality data.  The council shall adopt an initial
   6-66  methodology not later than January 1, 1997, but may not adopt the
   6-67  initial methodology before the first anniversary of the date on
   6-68  which a majority of the council is appointed.  If the council
   6-69  determines additional time for development of the initial
   6-70  methodology is needed, the council, by a two-thirds vote of the
    7-1  full council, may extend the deadline established by this
    7-2  subsection for adopting the initial methodology.
    7-3        (c)  The council shall test the methodology by collecting
    7-4  provider quality data for one year, subject to Section 108.009.
    7-5  The council may test using pilot methodologies.  After collecting
    7-6  provider quality data for one year, the council shall report
    7-7  findings applicable to a provider to that provider and allow the
    7-8  provider to review and comment on the initial quality outcome data
    7-9  applicable to that provider.  The council shall verify the accuracy
   7-10  of the data during this review and revision process.  After the
   7-11  review and revision process, quality outcome data for subsequent
   7-12  reports shall be published and made available to the public, on a
   7-13  time schedule the council considers appropriate.
   7-14        (d)  If the council determines that quality outcome data to
   7-15  be published under Subsection (c) does not provide the intended
   7-16  result or is inaccurate or inappropriate for dissemination, the
   7-17  council is not required to publish the data or reports based in
   7-18  whole or in part on the data.  This subsection does not affect the
   7-19  release of data collected under Section 108.009.
   7-20        (e)  The council shall adopt rules allowing a provider to
   7-21  submit written comments regarding any specific data to be released
   7-22  concerning the provider.  The comments may be attached to any
   7-23  public release of data.
   7-24        (f)  The methodology adopted by the council for measuring
   7-25  quality shall include case-mix qualifiers, severity adjustment
   7-26  factors, adjustments for medical education and research, and any
   7-27  other factors necessary to accurately reflect provider quality.
   7-28        (g)  In addition to the requirements of this section, any
   7-29  release of provider quality data shall comply with Sections
   7-30  108.011(d)-(f).
   7-31        (h)  A quality outcome data report may not identify an
   7-32  individual physician by name, but must identify the physician by
   7-33  the uniform physician identifier designated by the council under
   7-34  Section 108.011(c).
   7-35        Sec. 108.011.  DATA DISSEMINATION AND PUBLICATION.  (a)  The
   7-36  council shall promptly provide data to those requesting it, subject
   7-37  to the restrictions on access to council data prescribed by
   7-38  Sections 108.010 and 108.013.
   7-39        (b)  Subject to the restrictions on access to council data
   7-40  prescribed by Sections 108.010 and 108.013, and using the data
   7-41  collected under Section 108.009 and other data, records, and
   7-42  matters of record available to it, the council shall prepare and
   7-43  issue reports to the governor, the legislature, and the public as
   7-44  provided by this section and Section 108.006(a).  The council must
   7-45  issue the reports at least annually.
   7-46        (c)  Subject to the restrictions on access to council data
   7-47  prescribed by Sections 108.010 and 108.013, the council shall
   7-48  prepare and issue reports that provide information relating to
   7-49  providers, such as the incidence rate of selected medical or
   7-50  surgical procedures and the provider quality.  The reports must
   7-51  provide the data in a manner that identifies individual providers
   7-52  and that identifies and compares data elements for all providers.
   7-53  Individual physicians may not be identified by name, but shall be
   7-54  identified by uniform physician identifiers.  The council by rule
   7-55  shall designate the characters to be used as uniform physician
   7-56  identifiers.
   7-57        (d)  The council shall adopt procedures to verify the
   7-58  accuracy of the data before a report containing the data is
   7-59  released to the public.
   7-60        (e)  If provider data is requested from the council for a
   7-61  specific provider, the council shall notify the provider about the
   7-62  release of the data.  This subsection does not authorize the
   7-63  provider to interfere with the release of that data.
   7-64        (f)  A report issued by the council shall include a
   7-65  reasonable review and comment period for the affected providers
   7-66  before public release of the report.
   7-67        Sec. 108.012.  COMPUTER ACCESS TO DATA.  (a)  The council
   7-68  shall provide a means for computer-to-computer access to the data.
   7-69  All reports shall maintain patient confidentiality as provided by
   7-70  Section 108.013.
    8-1        (b)  The council may charge a person requesting data a fee
    8-2  for the data.  The fees may reflect the quantity of information
    8-3  provided and the expense incurred by the council in collecting and
    8-4  providing the data and shall be set at a level     that will raise
    8-5  revenue sufficient for the operation of the council.  The council
    8-6  may not charge a fee for providing data to another state agency.
    8-7        Sec. 108.013.  CONFIDENTIALITY AND GENERAL ACCESS TO DATA.
    8-8  (a)  The data received by the council shall be used by the council
    8-9  for the benefit of the public.   The council is subject to the open
   8-10  records law, Chapter 552, Government Code.  Subject to specific
   8-11  limitations established by this chapter and council rule, the
   8-12  council shall make determinations on requests for information in
   8-13  favor of access.
   8-14        (b)  The council by rule shall designate the characters to be
   8-15  used by providers as uniform patient identifiers.
   8-16        (c)  Unless specifically authorized by this chapter, the
   8-17  council may not release and a person or entity may not gain access
   8-18  to any data:
   8-19              (1)  that could reasonably be expected to reveal the
   8-20  identity of a patient or physician or that reveals the zip code of
   8-21  a patient's primary residence;
   8-22              (2)  disclosing provider discounts or differentials
   8-23  between payments and billed charges; or
   8-24              (3)  relating to actual payments to an identified
   8-25  provider made by a payer.
   8-26        (d)  All data collected and used by the department and the
   8-27  council under this chapter is subject to the confidentiality
   8-28  provisions and criminal penalties of:
   8-29              (1)  Section 311.037;
   8-30              (2)  Section 81.103; and
   8-31              (3)  Section 5.08, Medical Practice Act (Article 4495b,
   8-32  Vernon's Texas Civil Statutes).
   8-33        (e)  Data on patients and physicians and compilations,
   8-34  reports, or analyses produced from the data collected that identify
   8-35  patients and physicians are not:
   8-36              (1)  subject to discovery, subpoena, or other means of
   8-37  legal compulsion for release to any person or entity except as
   8-38  provided by this section; or
   8-39              (2)  admissible in any civil, administrative, or
   8-40  criminal proceeding.
   8-41        (f)  Notwithstanding Subsection (c)(1), the council may use
   8-42  zip code information to analyze data on a geographic basis.
   8-43        Sec. 108.014.  CIVIL PENALTY.  (a)  A person who knowingly or
   8-44  negligently releases data in violation of this chapter is liable
   8-45  for a civil penalty of not more than $10,000.
   8-46        (b)  A person who fails to supply available data under
   8-47  Sections 108.009 and 108.010 is liable for a civil penalty of not
   8-48  less than $1,000 or more than $10,000 for each act of violation.
   8-49        (c)  The attorney general, at the request of the council,
   8-50  shall enforce this chapter.
   8-51        Sec. 108.015.  CONFLICT OF INTEREST.  The council may not
   8-52  accept a donation from a person required to provide data under this
   8-53  chapter or from a person or business entity who provides goods or
   8-54  services to the council for compensation.
   8-55        SECTION 2.  Section 311.032(a), Health and Safety Code, is
   8-56  amended to read as follows:
   8-57        (a)  The department shall establish a uniform reporting and
   8-58  collection system for hospital financial and<,> utilization<, and
   8-59  patient discharge> data.
   8-60        SECTION 3.  Section 311.035(c), Health and Safety Code, is
   8-61  amended to read as follows:
   8-62        (c)  The department shall enter into an interagency agreement
   8-63  with the Texas Department of Mental Health and Mental Retardation,
   8-64  Texas Commission on Alcohol and Drug Abuse, and Texas Department of
   8-65  Insurance relating to the mental health and chemical dependency
   8-66  <hospital discharge> data collected under Section 311.0335.  The
   8-67  agreement shall address the collection, analysis, and sharing of
   8-68  the data by the agencies.
   8-69        SECTION 4.  Subchapter C, Chapter 2054, Government Code, is
   8-70  amended by adding Section 2054.0541 to read as follows:
    9-1        Sec. 2054.0541.  STATEWIDE HEALTH CARE DATA COLLECTION
    9-2  SYSTEM.  The department shall assist the Texas Health Care
    9-3  Information Council and the Texas Department of Health with
    9-4  planning, analyses, and management functions relating to the
    9-5  procurement, use, and implementation of a statewide health care
    9-6  data collection system under Chapter 108, Health and Safety Code.
    9-7        SECTION 5.  The following laws are repealed:
    9-8              (1)  Section 311.035(b), Health and Safety Code; and
    9-9              (2)  Section 311.034, Health and Safety Code.
   9-10        SECTION 6.  (a)  The governor shall make appointments to the
   9-11  Texas Health Care Information Council as soon as practicable after
   9-12  the effective date of this Act.
   9-13        (b)  The governor shall make the initial appointments to the
   9-14  Texas Health Care Information Council as follows:
   9-15              (1)  one representative of business, one representative
   9-16  from labor, one representative of hospitals, one representative of
   9-17  physicians, and one non-health-care professional member serve terms
   9-18  expiring September 1, 1997;
   9-19              (2)  one representative of business, one consumer
   9-20  representative, one representative of physicians, one
   9-21  representative of hospitals, and the representative of a health
   9-22  maintenance organization serve terms expiring September 1, 1999;
   9-23  and
   9-24              (3)  one representative from labor, one representative
   9-25  of business, one consumer representative, one representative of
   9-26  physicians, and one non-health-care professional member serve terms
   9-27  expiring September 1, 2001.
   9-28        SECTION 7.  Not later than December 1, 1996, the Texas Health
   9-29  Care Information Council appointed under Chapter 108, Health and
   9-30  Safety Code, as added by this Act, shall make recommendations under
   9-31  Section 108.006(a)(5) of that code relating to consolidation of
   9-32  health data collection programs existing on the effective date of
   9-33  this Act, together with proposed legislation necessary to effect
   9-34  any recommended consolidation.
   9-35        SECTION 8.  This Act takes effect September 1, 1995.
   9-36        SECTION 9.  The importance of this legislation and the
   9-37  crowded condition of the calendars in both houses create an
   9-38  emergency and an imperative public necessity that the
   9-39  constitutional rule requiring bills to be read on three several
   9-40  days in each house be suspended, and this rule is hereby suspended.
   9-41                               * * * * *