BG C.S.H.B. 561 75(R)BILL ANALYSIS


PUBLIC HEALTH
C.S.H.B. 561
By: Hochberg
4-10-97
Committee Report (Substituted)


BACKGROUND 

No general statute currently exists that allows health regulatory agencies
to share information concerning an ongoing investigation with another
agency, unless the agency is conducting a criminal investigation. When a
violation occurs and a regulatory agency commences an investigation, they
cannot report to another agency any information concerning violations of a
rule or statute enforced by another agency. This lack of communication
leads to duplicative investigations or non-enforcement of penalties
against those who violate the rules or statutes of an agency not directly
involved in the investigation. 

PURPOSE

CSHB 561 will provide an avenue for the exchange of information between
health care regulatory agencies. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 7 of the Government Code by adding Chapter 774,
as follows: 

Sec. 774.001 defines health care provider, health care regulatory agency,
license, and regulatory agency. 

Sec. 774.002 entitled, "Duty to Exchange Information," is added as follows:

Subsection (a) requires a health care regulatory agency to forward any
pertinent information or determinations to another health care regulatory
agency, if obtained during the course of an investigation or complaint
review that may be grounds for the other health care regulatory agency to
also conduct an investigative or disciplinary proceeding. 

Subsection (b) specifies that information relating to a violation of a
rule or statute enforced by the other health care regulatory agency, or
that in the good faith belief of the agency obtaining the information, is
likely to lead to discovery of a violation, may be grounds for
investigative or disciplinary action by another health care regulatory
agency. 

Subsection (c) establishes that privileged or confidential information
will retain its privileged or confidential nature.  Provides that this
privilege or confidentiality extends to any agency communication,
regardless of form or manner or content.   

Subsections (d) and (e) establish that there are no waivers or exceptions
to the confidentiality of the information, and that neither the provision
of information nor the failure to provide information give rise to a cause
of action against the agency. 

Sec. 774.003. entitled "Procedure for Exchange of Information," is added
as follows: 

 Subsection (a) requires a health care regulatory agency to establish and
implement written procedures to ensure that the required forwarding of
information is done by the 15th day after the agency determines that it is
information believed to be grounds for another health care agency to
conduct investigation or initiate disciplinary proceedings.  

Subsection (b) stipulates that an adopted procedure must provide that the
executive head or designee of a health care agency may forward information
as specified only to the executive head or designee of the appropriate
health care regulatory agency. 

Subsection (c) provides the meaning of "executive head" as used in this
section.  

SECTION 2.  Provides that this act takes effect September 1, 1997, and is
applicable only to information obtained on or after that date.
Establishes that information obtained prior to the effective date is
governed by existing law, which is continued in effect for that purpose. 

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

In SECTION 1, CSHB 561 adds language and creates additional subsections to
the original bill's Sec. 774.003 for the sake of clarifying and specifying
the exchange of information procedure of regulatory agencies.