By Kubiak                                             H.B. No. 2607
       74R7968 T
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the duty to examine the affairs of a health maintenance
    1-3  organization.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article 20A.17 of the Texas Insurance Code is
    1-6  amended by striking the current Subsections (a) and (b) and
    1-7  substituting therefor the following:
    1-8        (a)  The Commissioner may make an examination of the affairs
    1-9  of any health maintenance organization as is deemed necessary, but
   1-10  not less frequently than once every three years, except a single
   1-11  purpose health maintenance organization, which does not pay claims,
   1-12  shall not be subject to this examination so long as it is
   1-13  furnishing an independent audit of financial statement, as required
   1-14  by Art. 1.15A of the Insurance Code.
   1-15        (b)  The Commissioner may make an examination concerning the
   1-16  quality of health care services of any health care organization as
   1-17  often as is deemed necessary if no other state agency has examined
   1-18  such quality of health care within the last three years.
   1-19        SECTION 2.  This Act takes effect September 1, 1995.
   1-20        SECTION 3.  The importance of this legislation and the
   1-21  crowded conditions of the calendars in both houses create an
   1-22  emergency and an imperative public necessity  that the
   1-23  constitutional rules requiring bills to be read on three several
   1-24  days in each house be suspended, and this rule is hereby suspended.