SRC-CDH H.B. 2389 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2389
By: Maxey (Zaffirini)
Health & Human Services
5-10-97
Engrossed


DIGEST 

Over the last few years, the Texas Department of Health (TDH) has upgraded
its laboratory, assembling a team of knowledgeable, well-trained
professionals.  It is currently building a state-ofthe-art laboratory
facility which will provide the staff with the necessary infrastructure to
offer a wide array of services.  Providing these services to other states
and federal agencies could generate considerable revenue for Texas.
States have previously approached TDH about carrying out such assignments,
but TDH has declined these offers due to a lack of statutory clarity
regarding the laboratory's role.  H.B. 2389 allows TDH to enter into
contracts for the sale and provision of laboratory services, and
authorizes the adoption of necessary rules for setting and collecting
fees. 

PURPOSE

As proposed, H.B. 2389 provides for the sale of laboratory services to
certain persons by the Texas Department of Health. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Department of Health in
SECTION 1 (Section 12.020(d), Health and Safety Code) of this bill.   

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 12B, Health and Safety Code, by adding Section
12.020, as follows: 

Sec. 12.020.  SALE OF LABORATORY SERVICES.  Authorizes the Texas
Department of Health (TDH) to enter into a contract for the sale and
provision of laboratory services in accordance with this section.
Authorizes TDH to enter into a contract with a federal, state, or local
governmental entity or a freestanding public health clinic owned or
controlled by a nonprofit organization.  Provides that for purposes of
Subsection (b)(1), a contract with a federal governmental entity does not
include a contract relating to Medicare managed care services.  Authorizes
TDH, by rule, to establish charges for the sale of laboratory services.
Authorizes TDH to enter into a contract with a party in or outside of this
state.  Defines "laboratory services." 

SECTION 2. Amends Section 12.035, Health and Safety Code, by amending
Subsection (a), and by adding Subsection (c), to require TDH to deposit
all money collected for fees and charges collected under Sections
12.020(d) and 12.032(a) in the state treasury to the credit of the TDH
public health services fee fund.  Provides that the public health services
fee fund is exempt from Section 403.095(b), Government Code. 

SECTION 3. Emergency clause.
  Effective date:  upon passage.