BG C.S.H.B. 2389 75(R)BILL ANALYSIS


PUBLIC HEALTH
C.S.H.B. 2389
By: Maxey
4-17-97
Committee Report (Substituted)


BACKGROUND 

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 stateof-the-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
the department has declined these offers due to a lack of statutory
clarity regarding the laboratory's role. 

PURPOSE

CSHB 2389 allows TDH to enter into contracts for the sale and provision of
laboratory services, and authorizes adoption of necessary rules for
setting and collecting fees. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly grants additional
rulemaking authority to the Texas Department of Health in SECTION 1
(Section 12.020(d),Health and Safety Code). 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 12, Health & Safety Code, by
adding Section 12.020, entitled "Sale of Laboratory Services" as follows: 
 
Subsection (a) allows TDH to enter into a contract for the sale and
provision of laboratory services. 

Subsection (b) allows TDH to enter into a contract with a federal, state
or local government entity or a freestanding public health clinic owned or
controlled by a nonprofit organization. 

Subsection (c) excludes TDH from entering into a contract with a federal
government entity that relates to Medicare managed care services. 

Subsection (d) allows TDH by rule to establish charges for the sale of
laboratory services. 

Subsection (e) allows TDH to enter into a contract with a party in or
outside of the state. 

Subsection (f) defines "laboratory services" for this section. The term
includes the provision of supplies and test materials and the performance
of scientific procedures to analyze or assess specimens from any source.
It, however, does not include tissue and cytology specimens, except for
pap smears for recipients under federally funded programs or genetic
testing. 
  
SECTION 2.  Amends Section 12.035 of the Health and Safety Code as follows:
 
Subsection (a) clarifies that funds collected by TDH for the sale of
laboratory services includes charges and that these funds, including those
cited in Sec. 12.020(d), will be  credited to the department's public
health services fee fund. 

Subsection (c) is added to exempt the public health services fee fund from
Section 403.095 (b) of the Government Code. 

SECTION 3. Emergency Clause. Establishes that this Act takes effect upon
passage.  

COMPARISON OF ORIGINAL TO SUBSTITUTE

In SECTION 1, Sec. 12.020 of CSHB 2389 the words "any person" are deleted
from the original bill as it was a drafting error and intent was to limit
the sale of laboratory services to public entities, not to have the state
compete with private entities or individuals. Subsection (a) is added to
the substitute bill as an explanation of the purpose of the bill. CSHB
2389 adds subsection (b) to clarify which types of entities with which the
state laboratory can contract. CSHB 2389 adds subsection (c) in order to
exclude Medicare managed care services from federal contracts for
laboratory services. Subsection (d) and (e) are added to the substitute
bill from language that was already in HB 2389, but now are in separate
subsections. Plus CSHB 2389 adds subsection (f) which defines "laboratory
services". 

A new SECTION 2 amending Section 12.035 of Health and Safety Code, is
inserted into the substitute bill in order to clean-up language in
subsection (a); and to add subsection (c) which exempts public health
services fee funds from Sec. 403.095 (b) of the Government Code. 

SECTION 3, which is emergency clause in the substitute bill, is renumbered
from HB 2389.