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