SRC-JFA C.S.H.B. 39 75(R)BILL ANALYSIS
Senate Research CenterC.S.H.B. 39
By: McCall (Zaffirini)
Economic Development
5-5-97
Committee Report (Substituted)
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, C.S.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.
Sec. 8. EFFECT OF PREGNANCY. Prohibits an issuer of a
group health benefit plan from
requiring as a condition of insurance coverage, genetic
testing of a child in utero without the
consent of the pregnant woman. Prohibits an issuer of a
group health plan from using genetic
information to coerce or compel a pregnant woman to have an
induced abortion. Defines
"coercion."
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.
SUMMARY OF COMMITTEE CHANGES
Amendment 1.
Page 5, line 4, strike "and."
Page 5, line 6, strike "." and substitute "; and."
Page 5, between lines 6 and 7, insert "(3) the information
is provided by the Texas
Department of Health to comply with Chapter 87, Health and
Safety Code."
Page 9, line 9, strike "and."
Page 9, line 11, strike "." and substitute "; and."
Page 9, between lines 11 and 12, insert "(3) the information
is provided by the Texas
Department of Health to comply with Chapter 87, Health and
Safety Code."
Amendment 2.
Page 18, lines 9 and 10, insert Section 8, in regard to the
effect of pregnancy.
Amendment 3.
Page 1, lines 16-18, strike ", proteins," from the proposed
definition of "genetic test."
Page 6, lines 10-12, strike ", proteins," from the proposed
definition of "genetic test."
Page 10, lines 15-17, strike ", proteins," from the proposed