SRC-JFA H.B. 39 75(R) BILL ANALYSIS
Senate Research Center H.B. 39
By: McCall (Zaffirini)
Economic Development
4-23-97
Engrossed
DIGEST
Currently, persons may choose not to undergo genetic testing because they
fear results will be released to employers and/or insurers who will use
this information to discriminate in employment practices or insurance
coverage. This bill would prohibit the use of genetic information for
employment, issuance of occupational licenses, and health insurance
eligibility. Additionally, this bill would make genetic information
confidential and prohibit the disclosure of the information unless
authorized by the individual.
PURPOSE
As proposed, H.B. 39 prohibits the use of genetic information for
employment, issuance of occupational licenses, and health insurance
eligibility. This bill makes genetic information confidential and
prohibits the disclosure of the information unless authorized by the
individual.
RULEMAKING AUTHORITY
The bill does not grant any additional rulemaking authority to a state
officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 21, Labor Code, by adding Subchapter H, as
follows:
SUBCHAPTER H. DISCRIMINATORY USE OF GENETIC INFORMATION
Sec. 21.401. DEFINITIONS. Defines "DNA," "genetic information," "genetic
test," or "RNA."
Sec. 21.402. DISCRIMINATORY USE OF GENETIC INFORMATION PROHIBITED. (a)
Provides that an employer commits an unlawful employment practice if the
employer fails or refuses to hire, discharges, or otherwise discriminates
against an individual with respect to compensation or the terms,
conditions, or privileges of employment on the basis of genetic
information concerning the individual; or because of the refusal of the
individual to submit to a genetic test.
(b) Provides that a labor organization commits an unlawful employment
practice if the labor organization excludes or expels from membership or
otherwise discriminates against an individual on the basis of genetic
information concerning the individual; or because of the refusal of the
individual to submit to a genetic test.
(c) Provides that an employment agency commits an unlawful employment
practice if the employment agency classifies or refers for employment,
fails or refuses to refer for employment, or otherwise discriminates
against an individual on the basis of genetic information concerning the
individual; or because of the refusal of the individual to submit to a
genetic test.
(d) Provides that an employer, labor organization, or employment agency
commits an unlawful employment practice if the employer, labor
organization, or employment agency limits, segregates, or classifies an
employee, member, or applicant for employment or membership in a way that
would deprive or tend to deprive the employee, member, or applicant of
employment opportunities or otherwise adversely affect the status of the
employee, member, or applicant on the basis of genetic information
concerning the employee, member, or applicant; or because of the refusal
of the employee, member, or applicant to submit to a genetic test.
Sec. 21.403. INFORMATION CONFIDENTIAL; EXCEPTIONS. Provides that genetic
information is confidential and privileged and the holder of the
information is prohibited from disclosing genetic information about an
individual unless authorized by the individual to do so. Sets forth the
provisions by which the disclosure of genetic information is authorized.
Sec. 21.404. RIGHT TO KNOW TEST RESULTS. Provides that an individual who
submits to a genetic test has the right to know the results of that test.
Requires the entity that performed the test to disclose the test results
to the individual or to a physician designated by the individual on the
written request of the individual.
Sec. 21.405. RETENTION OF SAMPLE. Sets forth instances in which a sample
of genetic material taken for a genetic test from an individual is not
required to be destroyed after the purpose for which the sample was taken
is accomplished.
SECTION 2. Amends Chapter 20, Title 132, V.T.C.S., by adding Article 9031,
as follows:
Art. 9031. PROHIBITED USE OF GENETIC INFORMATION
Sec. 1. DEFINITIONS. Defines "DNA," "genetic information," "genetic
test," "licensing authority," "occupational license," "political
subdivision," "RNA," and "state agency."
Sec. 2. GENETIC TESTING REQUIREMENT PROHIBITED. Prohibits a licensing
authority from denying an application for an occupational license, from
suspending, revoking, or refusing to renew an occupational license, or
from taking any other disciplinary action against a license holder based
on the refusal of the license applicant or license holder to submit to a
genetic test; or to reveal whether the applicant or holder has submitted
to a genetic test; or the results of any genetic test to which the
applicant or holder has submitted.
Sec. 3. INFORMATION CONFIDENTIAL; EXCEPTIONS. (a) Provides that genetic
information is confidential and privileged regardless of the source of the
information. Prohibits a person or entity that holds that information from
disclosing or being compelled to disclose, by subpoena or otherwise,
genetic information about an individual unless the disclosure is
specifically authorized by the individual as provided by Subsection (b) of
this section. Provides that this subsection applies to a redisclosure of
genetic information by a secondary recipient of the information after
disclosure of the information by an initial recipient.
(b) Authorizes an individual or the legal representative of an individual
to authorize the disclosure of genetic information relating to that
individual through a written authorization that includes certain
information.
(c) Authorizes genetic information relating to an individual, subject to
Subchapter G, Chapter 411, Government Code, to be disclosed without the
authorization required under Subsection (b) under certain conditions.
(d) Authorizes genetic information relating to an individual to be
disclosed without the authorization required under Subsection (b) under
certain conditions.
Sec. 4. RIGHT TO KNOW TEST RESULTS. Provides that an individual who
submits to a genetic test has the right to know the results of that test.
Requires the entity that performed the test, on the written request of
the individual, to disclose the test results to the individual or to a
physician designated by the individual.
Sec. 5. RETENTION OF SAMPLE. Requires a sample of genetic material taken
for a genetic test from an individual to be destroyed promptly after the
purpose for which the sample was obtained is accomplished except under
certain conditions.
SECTION 3. Amends Chapter 21E, Insurance Code, by adding Article 21.73, as
follows:
Art. 21.73. USE OF GENETIC TESTING INFORMATION BY INSURERS
Sec. 1. DEFINITIONS. Defines "DNA," "genetic information," "genetic
test," "group health benefit plan," and "RNA."
Sec. 2. SCOPE OF ARTICLE. Sets forth certain group health benefit plans
to which this article applies. Sets forth certain plans to which this
article does not apply.
Sec. 3. USE OF GENETIC INFORMATION BY GROUP HEALTH BENEFIT PLAN. (a)
Prohibits a group health benefit plan issuer from using genetic
information to reject, deny, limit, cancel, refuse to renew, increase the
premiums for, or otherwise adversely affect eligibility for or coverage
under the group health benefit plan.
(b) Requires an issuer to perform certain actions if a group health
benefit plan issuer requests that an applicant for coverage under the plan
submit to a genetic test in connection with the application for coverage
for a purpose other than a purpose prohibited under Subsection (a) of this
section.
(c) Requires the applicant in the consent form, to state whether the
applicant elects to be informed of the results of the test. Requires the
person or entity that performs the test, if the applicant does so elect,
to disclose the results of the test to the applicant, as well as to the
group health benefit plan issuer, and the group health benefit plan issuer
shall ensure that the applicant receives an interpretation of the test
results made by a qualified health care practitioner; and a physician or
other care practitioner designated by the applicant receives a copy of the
results of the test.
(d) Prohibits the group health benefit plan issuer from using the results
of a genetic test conducted in accordance with Subsection (b) as an
inducement for the purchase of coverage under the plan.
(e) Prohibits a group health benefit plan issuer from using the refusal
of an applicant to submit to a genetic test to reject, deny, limit,
cancel, refuse to renew, increase the premiums for, or otherwise adversely
affect eligibility for or coverage under the group health benefit plan.
Sec. 4. INFORMATION CONFIDENTIAL; EXCEPTIONS. (a) Provides that genetic
information is confidential and privileged regardless of the source of the
information. Prohibits a person or entity that holds that information from
disclosing or being compelled to disclose, by subpoena or otherwise,
genetic information about an individual unless the disclosure is
specifically authorized by the individual as provided by Subsection (b).
Provides that this subsection applies to a redisclosure of genetic
information by a secondary recipient of the information after disclosure
of the information by an initial recipient.
(b) Authorizes an individual or the legal representative of an individual
from authorizing the disclosure of genetic information relating to that
individual through an authorization that contains certain information.
(c) Authorizes genetic information relating to an individual, subject to
Chapter 411G, Government Code, to be disclosed without the authorization
required under Subsection (b) under certain conditions.
(d) Prohibits a group health issuer from redisclosing genetic information
unless the redisclosure is consistent with the disclosures authorized by
the tested individual under an authorization form executed under
Subsection (b). Authorizes a group health benefit plan issuer to
redisclose genetic information to certain entities.
(e) Authorizes a redisclosure authorized under Subsection (d) to contain
only information reasonably necessary to accomplish the purpose for which
the information is disclosed.
Sec. 5. RIGHT TO KNOW TEST RESULTS. Provides that an individual who
submits to a genetic test has the right to know the results of that test.
Requires the group health benefit plan issuer or other entity that
performed the test to disclose the test results to the individual or to a
physician designated by the individual. Provides that the right to
information under this section is in addition to any right or requirement
established under Section 3 of this article.
Sec. 6. RETENTION OF SAMPLE. Requires a sample of genetic material taken
for a genetic test from an individual to be destroyed promptly after the
purpose for which the sample was obtained is accomplished except under
certain conditions.
Sec. 7. CEASE AND DESIST ORDER; ADMINISTRATIVE PENALTY. Authorizes the
commissioner of insurance (commissioner), on a finding by the commissioner
that a group health benefit plan issuer is in violation of this article,
to enter a cease and desist order in the manner provided under Article
1.10A of this code. Authorizes the commissioner, if the group health
benefit plan issuer refuses or fails to comply with the cease and desist
order, to revoke or suspend the issuer's certificate of authority or other
authorization to engage in the operation of a group health benefit plan in
this state. Provides that a group health benefit plan issuer that
operates the plan in violation of this article is subject to an
administrative penalty as provided by Article 1.10E of this code.
SECTION 4. Effective date: September 1, 1997.
SECTION 5. Makes application of Article 9031, V.T.C.S., as added by this
Act, prospective.
SECTION 6. Makes application of Article 21.73, Insurance Code, as added by
this Act, prospective to January 1, 1998.
SECTION 7. Emergency clause.