1-1     By:  McCall, et al. (Senate Sponsor - Zaffirini)        H.B. No. 39

 1-2           (In the Senate - Received from the House April 3, 1997;

 1-3     April 8, 1997, read first time and referred to Committee on

 1-4     Economic Development; May 6, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 8, Nays

 1-6     0; May 6, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 39                    By:  Sibley

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to a prohibition of discrimination in the determination of

1-11     eligibility for employment, occupational licenses, and coverage

1-12     under certain health benefit plans based on the use of certain

1-13     genetic tests and to limitations on the use of information derived

1-14     from those tests.

1-15           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-16           SECTION 1.  Chapter 21, Labor Code, is amended by adding

1-17     Subchapter  H  to read as follows:

1-18          SUBCHAPTER H.  DISCRIMINATORY USE OF GENETIC INFORMATION

1-19           Sec. 21.401.   DEFINITIONS.  In this subchapter:

1-20                 (1)  "DNA" means deoxyribonucleic acid.

1-21                 (2)  "Genetic information" means information derived

1-22     from the results of a genetic test.

1-23                 (3)  "Genetic test" means a laboratory test of an

1-24     individual's DNA, RNA or chromosomes to identify by analysis of the

1-25     DNA, RNA or chromosomes the genetic mutations or alterations in the

1-26     DNA, RNA or chromosomes that are  associated with a predisposition

1-27     for a clinically recognized disease or disorder.  The term does not

1-28     include:

1-29                       (A)  a routine physical examination or a routine

1-30     test performed as a part of a physical examination;

1-31                       (B)  a chemical, blood, or urine analysis;

1-32                       (C)  a test to determine drug use; or

1-33                       (D)  a test for the presence of the human

1-34     immunodeficiency virus.

1-35                 (4)  "RNA" means ribonucleic acid.

1-36           Sec. 21.402.  DISCRIMINATORY USE OF GENETIC INFORMATION

1-37     PROHIBITED.  (a)  An employer commits an unlawful employment

1-38     practice if the employer fails or refuses to hire, discharges, or

1-39     otherwise discriminates against an individual with respect to

1-40     compensation or the terms, conditions, or privileges of employment:

1-41                 (1)  on the basis of genetic information concerning the

1-42     individual; or

1-43                 (2)  because of the refusal of the individual to submit

1-44     to a genetic test.

1-45           (b)  A labor organization commits an unlawful employment

1-46     practice if the labor organization excludes or expels from

1-47     membership or otherwise discriminates against an individual:

1-48                 (1)  on the basis of genetic information concerning the

1-49     individual; or

1-50                 (2)  because of the refusal of the individual to submit

1-51     to a genetic test.

1-52           (c)  An employment agency commits an unlawful employment

1-53     practice if the employment agency classifies or refers for

1-54     employment, fails or refuses to refer for employment, or otherwise

1-55     discriminates against an individual:

1-56                 (1)  on the basis of genetic information concerning the

1-57     individual; or

1-58                 (2)  because of the refusal of the individual to submit

1-59     to a genetic test.

1-60           (d)  An employer, labor organization, or employment agency

1-61     commits an unlawful employment practice if the employer, labor

1-62     organization, or employment agency limits, segregates, or

1-63     classifies an employee, member, or applicant for employment or

1-64     membership in a way that would deprive or tend to deprive the

 2-1     employee, member, or applicant of employment opportunities or

 2-2     otherwise adversely affect the status of the employee, member, or

 2-3     applicant:

 2-4                 (1)  on the basis of genetic information concerning the

 2-5     employee, member, or applicant; or

 2-6                 (2)  because of the refusal of the employee, member, or

 2-7     applicant to submit to a genetic test.

 2-8           Sec. 21.403.  INFORMATION CONFIDENTIAL; EXCEPTIONS.

 2-9     (a)  Except as provided by Subsections (c) and (d), genetic

2-10     information is confidential and privileged regardless of the source

2-11     of the information.  A person who holds that information may not

2-12     disclose or be compelled to disclose, by subpoena or otherwise,

2-13     genetic information about an individual unless the disclosure is

2-14     specifically authorized by the individual as provided by Subsection

2-15     (b).  This subsection applies to a redisclosure of genetic

2-16     information by a secondary recipient of the information after

2-17     disclosure of the information by an initial recipient.

2-18           (b)  An individual or the legal representative of an

2-19     individual may authorize the disclosure of genetic information

2-20     relating to that individual through a written authorization that

2-21     includes:

2-22                 (1)  a description of the information to be disclosed;

2-23                 (2)  the name of the person to whom the disclosure is

2-24     made; and

2-25                 (3)  the purpose for the disclosure.

2-26           (c)  Subject to Subchapter G, Chapter 411, Government Code,

2-27     genetic information relating to an individual may be disclosed

2-28     without the  authorization required under Subsection (b) if the

2-29     disclosure is:

2-30                 (1)  authorized under a state or federal criminal law

2-31     relating to:

2-32                       (A)  the identification of individuals; or

2-33                       (B)  a criminal or juvenile  proceeding, an

2-34     inquest, or a child fatality review by a multidisciplinary child

2-35     abuse team;

2-36                 (2)  required under a specific order of a state or

2-37     federal court;

2-38                 (3)  authorized under a state or federal law to

2-39     establish paternity;

2-40                 (4)  made to furnish genetic information relating to a

2-41     decedent to the blood relatives of the decedent for the purpose of

2-42     medical diagnosis; or

2-43                 (5)  made to identify a decedent.

2-44           (d)  In addition to the exceptions under Subsection (c),

2-45     genetic information relating to an individual may be disclosed

2-46     without the authorization required under Subsection (b) if:

2-47                 (1)  the disclosure is for information from a research

2-48     study in which the procedure for obtaining informed written consent

2-49     and use of the information is governed by national standards for

2-50     protecting participants involved in research projects, including

2-51     guidelines issued under 21 C.F.R. Part 50 and 45  C.F.R. Part 46;

2-52                 (2)  the information does not identify a particular

2-53     individual; and

2-54                 (3)  the information is provided by the Texas

2-55     Department of Health to comply with Chapter 87, Health and Safety

2-56     Code.

2-57           Sec. 21.404.  RIGHT TO KNOW TEST RESULTS.  An individual who

2-58     submits to a genetic test has the right to know the results of that

2-59     test.  On the written request of the individual, the entity that

2-60     performed the test shall disclose the test results to the

2-61     individual or to a physician designated by the individual.

2-62           Sec. 21.405.  RETENTION OF SAMPLE.  A sample of genetic

2-63     material taken for a genetic test from an individual shall be

2-64     destroyed promptly after the purpose for which the sample was

2-65     obtained is accomplished unless:

2-66                 (1)  the sample is retained under a court order;

2-67                 (2)  the individual tested authorizes retention of the

2-68     sample for purposes of medical treatment or scientific research;

2-69                 (3)  for a sample obtained for research that is cleared

 3-1     by an institutional review board, the sample is retained under the

 3-2     requirements that the institutional review board imposes on a

 3-3     specific research project or as authorized by the research

 3-4     participant with institutional review board approval under federal

 3-5     law; or

 3-6                 (4)  the sample was obtained for a screening test

 3-7     established by the Texas Department of Health and performed by that

 3-8     department or  by a laboratory approved by that department under

 3-9     Section 33.011, Health and Safety Code.

3-10           SECTION 2.  Chapter 20, Title 132, Revised Statutes, is

3-11     amended by adding Article 9031 to read as follows:

3-12           Art. 9031.  PROHIBITED USE OF GENETIC INFORMATION

3-13           Sec. 1.  DEFINITIONS.  In this article:

3-14                 (1)  "DNA" means deoxyribonucleic acid.

3-15                 (2)  "Genetic information" means information derived

3-16     from the results of a genetic test.

3-17                 (3)  "Genetic test" means a laboratory test of an

3-18     individual's DNA, RNA or chromosomes to identify by analysis of the

3-19     DNA, RNA or chromosomes the genetic mutations or alterations in the

3-20     DNA, RNA or chromosomes that are  associated with a predisposition

3-21     for a clinically recognized disease or disorder.  The term does not

3-22     include:

3-23                       (A)  a routine physical examination or a routine

3-24     test performed as a part of a physical examination;

3-25                       (B)  a chemical, blood, or urine analysis;

3-26                       (C)  a test to determine drug use; or

3-27                       (D)  a test for the presence of the human

3-28     immunodeficiency virus.

3-29                 (4)  "Licensing authority" means a state agency or

3-30     political subdivision that issues an occupational license.

3-31                 (5)  "Occupational license" means a license,

3-32     certificate, registration, permit, or other form of authorization

3-33     required by law or rule that must be obtained by an individual to

3-34     engage in a particular business or occupation.

3-35                 (6)  "Political subdivision" means a municipality,

3-36     county, or special district or authority.  The term includes a

3-37     school district.

3-38                 (7)  "RNA" means ribonucleic acid.

3-39                 (8)  "State agency" means a department, board, bureau,

3-40     commission, committee, division, office, council, or agency in the

3-41     executive  or judicial branch of state government.

3-42           Sec. 2.  GENETIC TESTING REQUIREMENT PROHIBITED.  A licensing

3-43     authority may not deny an application for an occupational license,

3-44     suspend, revoke, or refuse to renew an occupational license, or

3-45     take any other disciplinary action against a license holder based

3-46     on the refusal of the license applicant or license holder to:

3-47                 (1)  submit to a genetic test; or

3-48                 (2)  reveal:

3-49                       (A)  whether the applicant or holder has

3-50     submitted to a genetic test; or

3-51                       (B)  the results of any genetic test to which the

3-52     applicant or holder has submitted.

3-53           Sec. 3.  INFORMATION CONFIDENTIAL; EXCEPTIONS.  (a)  Except

3-54     as provided by Subsections (c) and (d) of this section, genetic

3-55     information is confidential and privileged regardless of the source

3-56     of the information.  A person or entity that holds that information

3-57     may not disclose or be compelled to disclose, by subpoena or

3-58     otherwise, genetic information about an individual unless the

3-59     disclosure is specifically authorized by the individual as provided

3-60     by Subsection (b) of this section.  This subsection applies to a

3-61     redisclosure of genetic information by a secondary recipient of the

3-62     information after disclosure of the information by an initial

3-63     recipient.

3-64           (b)  An individual or the legal representative of an

3-65     individual may authorize the disclosure of genetic information

3-66     relating to that individual through a written authorization that

3-67     includes:

3-68                 (1)  a description of the information to be disclosed;

3-69                 (2)  the name of the person or entity to whom the

 4-1     disclosure is made; and

 4-2                 (3)  the purpose for the disclosure.

 4-3           (c)  Subject to Subchapter G, Chapter 411, Government Code,

 4-4     genetic information relating to an individual may be disclosed

 4-5     without the  authorization required under Subsection (b) of this

 4-6     section if the disclosure is:

 4-7                 (1)  authorized under a state or federal criminal law

 4-8     relating to:

 4-9                       (A)  the identification of individuals; or

4-10                       (B)  a criminal or juvenile proceeding, an

4-11     inquest, or a child fatality review by a multidisciplinary

4-12     child-abuse team;

4-13                 (2)  required under a specific order of a state or

4-14     federal court;

4-15                 (3)  authorized under a state or federal law to

4-16     establish paternity;

4-17                 (4)  made to furnish genetic information relating to a

4-18     decedent to the blood relatives of the decedent for the purpose of

4-19     medical diagnosis; or

4-20                 (5)  made to identify a decedent.

4-21           (d)  In addition to the exceptions under Subsection (c),

4-22     genetic information relating to an individual may be disclosed

4-23     without the authorization required under Subsection (b) if:

4-24                 (1)  the disclosure is for information from a research

4-25     study in which the procedure for obtaining informed written consent

4-26     and use of the information is governed by national standards for

4-27     protecting participants involved in research projects, including

4-28     guidelines issued under 21 C.F.R. Part 50  and  45  C.F.R. Part 46;

4-29                 (2)  the information does not identify a particular

4-30     individual; and

4-31                 (3)  the information is provided by the Texas

4-32     Department of Health to comply with Chapter 87, Health and Safety

4-33     Code.

4-34           Sec. 4.  RIGHT TO KNOW TEST RESULTS.  An individual who

4-35     submits to a genetic test has the right to know the results of that

4-36     test.  On the  written request of the individual, the entity that

4-37     performed the test shall disclose the test results to the

4-38     individual or to a physician designated by the individual.

4-39           Sec. 5.  RETENTION OF SAMPLE.  A sample of genetic material

4-40     taken for a genetic test from an individual shall be destroyed

4-41     promptly after the purpose for which the sample was obtained is

4-42     accomplished unless:

4-43                 (1)  the sample is retained under a court order;

4-44                 (2)  the individual tested authorizes retention of the

4-45     sample for purposes of medical treatment or scientific research;

4-46                 (3)  for a sample obtained for research that is cleared

4-47     by an institutional review board, the sample is retained under the

4-48     requirements that the institutional review board imposes on a

4-49     specific research project or as authorized by the research

4-50     participant with institutional review board approval under federal

4-51     law; or

4-52                 (4)  the sample was obtained for a screening test

4-53     established by the Texas Department of Health and performed by that

4-54     department or  by a laboratory approved by that department under

4-55     Section 33.011, Health and Safety Code.

4-56           SECTION 3.  Subchapter E, Chapter 21, Insurance Code, is

4-57     amended by adding Article 21.73 to read as follows:

4-58           Art. 21.73.  USE OF GENETIC TESTING INFORMATION BY INSURERS

4-59           Sec. 1.  DEFINITIONS.  In this article:

4-60                 (1)  "DNA" means deoxyribonucleic acid.

4-61                 (2)  "Genetic information" means information derived

4-62     from the results of a genetic test.

4-63                 (3)  "Genetic test" means a laboratory test of an

4-64     individual's DNA, RNA or chromosomes to identify by analysis of the

4-65     DNA, RNA or chromosomes the genetic mutations or alterations in the

4-66     DNA, RNA or chromosomes that are  associated with a predisposition

4-67     for a clinically recognized disease or disorder.  The term does not

4-68     include:

4-69                       (A)  a routine physical examination or a routine

 5-1     test performed as a part of a physical examination;

 5-2                       (B)  a chemical, blood, or urine analysis;

 5-3                       (C)  a test to determine drug use; or

 5-4                       (D)  a test for the presence of the human

 5-5     immunodeficiency virus.

 5-6                 (4)  "Group health benefit plan" means a plan described

 5-7     by Section 2 of this article.

 5-8                 (5)  "RNA" means ribonucleic acid.

 5-9           Sec. 2.  SCOPE OF ARTICLE.  (a)  This article applies to a

5-10     group health benefit plan that:

5-11                 (1)  provides benefits for medical or surgical expenses

5-12     incurred as a result of a health condition, accident, or sickness,

5-13     including:

5-14                       (A)  a group, blanket, or franchise insurance

5-15     policy or insurance agreement, a group hospital service contract,

5-16     or a group evidence of coverage that is offered by:

5-17                             (i)  an insurance company;

5-18                             (ii)  a group hospital service corporation

5-19     operating under Chapter 20 of this code;

5-20                             (iii)  a fraternal benefit society

5-21     operating under Chapter 10 of this code;

5-22                             (iv)  a stipulated premium insurance

5-23     company operating under Chapter 22 of this code; or

5-24                             (v)  a health maintenance organization

5-25     operating under the Texas Health Maintenance Organization Act

5-26     (Chapter 20A, Vernon's Texas Insurance Code); or

5-27                       (B)  to the extent permitted by the Employee

5-28     Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et

5-29     seq.), a group health benefit plan that is offered by:

5-30                             (i)  a multiple employer welfare

5-31     arrangement as defined by Section 3, Employee Retirement Income

5-32     Security Act of 1974 (29 U.S.C. Section 1002);

5-33                             (ii)  any other entity not licensed under

5-34     this code or another insurance law of this state that contracts

5-35     directly for health  care services on a risk-sharing basis,

5-36     including an entity that contracts for health care services on a

5-37     capitation basis; or

5-38                             (iii)  another analogous benefit

5-39     arrangement; or

5-40                 (2)  is offered by an approved nonprofit health

5-41     corporation that is certified under Section 5.01(a), Medical

5-42     Practice Act (Article 4495b, Vernon's Texas Civil Statutes), and

5-43     that holds a certificate of authority  issued by the commissioner

5-44     under Article 21.52F of this code.

5-45           (b)  This article does not apply to:

5-46                 (1)  a plan that provides coverage:

5-47                       (A)  only for a specified disease;

5-48                       (B)  only for accidental death or dismemberment;

5-49                       (C)  for wages or payments in lieu of wages for a

5-50     period during which an employee is absent from work because of

5-51     sickness or injury; or

5-52                       (D)  as a supplement to liability insurance;

5-53                 (2)  a Medicare supplemental policy as defined by

5-54     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);

5-55                 (3)  workers' compensation insurance coverage;

5-56                 (4)  medical payment insurance issued as part of a

5-57     motor vehicle insurance policy; or

5-58                 (5)  a long-term care policy, including a nursing home

5-59     fixed indemnity policy, unless the commissioner determines that the

5-60     policy provides benefit coverage so comprehensive that the policy

5-61     is a group health benefit plan as described by Subsection (a) of

5-62     this section.

5-63           Sec. 3.  USE OF GENETIC INFORMATION BY GROUP HEALTH BENEFIT

5-64     PLAN.  (a)  A group health benefit plan issuer may not use genetic

5-65     information to reject, deny, limit, cancel, refuse to renew,

5-66     increase the premiums for, or otherwise adversely affect

5-67     eligibility for or coverage under the group health benefit plan.

5-68           (b)  If a group health benefit plan issuer requests that an

5-69     applicant for coverage under the plan submit to a genetic test in

 6-1     connection with the application for coverage for a purpose other

 6-2     than a purpose prohibited under Subsection (a) of this section, the

 6-3     issuer must:

 6-4                 (1)  notify the applicant that the test is required;

 6-5                 (2)  disclose to the applicant the proposed use of the

 6-6     test results; and

 6-7                 (3)  obtain the applicant's written informed consent

 6-8     for the test before the administration of the test.

 6-9           (c)  In the consent form, the applicant shall state whether

6-10     the applicant elects to be informed of the results of the test.  If

6-11     the applicant does so elect, the person or entity that performs the

6-12     test shall disclose the results of the test to the applicant, as

6-13     well as to the group health benefit plan issuer, and the group

6-14     health benefit plan issuer shall ensure that:

6-15                 (1)  the applicant receives an interpretation of the

6-16     test results made by a qualified health care practitioner; and

6-17                 (2)  a physician or other health care practitioner

6-18     designated by the applicant receives a copy of the results of the

6-19     test.

6-20           (d)  A group health benefit plan issuer may not use the

6-21     results of a genetic test conducted in accordance with Subsection

6-22     (b) of this  section as an inducement for the purchase of coverage

6-23     under the plan.

6-24           (e)  A group health benefit plan issuer may not use the

6-25     refusal of an applicant to submit to a genetic test to reject,

6-26     deny, limit, cancel, refuse to renew, increase the premiums for, or

6-27     otherwise adversely affect eligibility for or coverage under the

6-28     group health benefit plan.

6-29           Sec. 4.  INFORMATION CONFIDENTIAL; EXCEPTIONS.  (a)  Except

6-30     as provided by Subsections (c) and (d) of this section, genetic

6-31     information is confidential and privileged regardless of the source

6-32     of the information.  A person or entity that holds that information

6-33     may not disclose or be compelled to disclose, by subpoena or

6-34     otherwise, genetic information about an individual unless the

6-35     disclosure is specifically authorized by the individual as provided

6-36     by Subsection (b) of this section.  This subsection applies to a

6-37     redisclosure of genetic information by a secondary recipient of the

6-38     information after disclosure of the information by an initial

6-39     recipient.

6-40           (b)  An individual or the legal representative of an

6-41     individual may authorize the disclosure of genetic information

6-42     relating to that individual through an authorization that:

6-43                 (1)  is written in plain language;

6-44                 (2)  is dated;

6-45                 (3)  contains a specific description of the information

6-46     to be disclosed;

6-47                 (4)  identifies or describes each person authorized to

6-48     disclose the genetic information to a group health benefit plan

6-49     issuer;

6-50                 (5)  identifies or describes the individuals or

6-51     entities to whom the disclosure or subsequent redisclosure of the

6-52     genetic information may be made;

6-53                 (6)  describes the specific purpose of the disclosure;

6-54                 (7)  is signed by the individual or the legal

6-55     representative and, if the disclosure is for claiming proceeds of

6-56     any affected life insurance policy, the claimant; and

6-57                 (8)  advises the individual or legal representative

6-58     that the individual's authorized representative is entitled to

6-59     receive a copy of the authorization form.

6-60           (c)  Subject to Subchapter G, Chapter 411, Government Code,

6-61     genetic information relating to an individual may be disclosed

6-62     without the  authorization required under Subsection (b) of this

6-63     section if the disclosure is:

6-64                 (1)  authorized under a state or federal criminal law

6-65     relating to:

6-66                       (A)  the identification of individuals; or

6-67                       (B)  a criminal or juvenile proceeding, an

6-68     inquest, or a child fatality review by a multidisciplinary

6-69     child-abuse team;

 7-1                 (2)  required under a specific order of a state or

 7-2     federal court;

 7-3                 (3)  authorized under a state or federal law to

 7-4     establish paternity;

 7-5                 (4)  made to furnish genetic information relating to a

 7-6     decedent to the blood relatives of the decedent for the purpose of

 7-7     medical diagnosis; or

 7-8                 (5)  made to identify a decedent.

 7-9           (d)  Except as provided by this subsection, a group health

7-10     benefit plan issuer may not redisclose genetic information unless

7-11     the redisclosure is consistent with the disclosures authorized by

7-12     the tested individual under an authorization form executed under

7-13     Subsection (b) of this section.  A group health benefit plan issuer

7-14     may redisclose genetic information:

7-15                 (1)  for actuarial or research studies if:

7-16                       (A)  a tested individual may not be identified in

7-17     any actuarial or research report; and

7-18                       (B)  any materials that identify a tested

7-19     individual are returned or destroyed as soon as reasonably

7-20     practicable;

7-21                 (2)  to the department for the purposes of the

7-22     enforcement of this article; or

7-23                 (3)  for purposes directly related to enabling business

7-24     decisions to be made about the purchase, transfer, merger, or sale

7-25     of all or part of an insurance business or about obtaining

7-26     reinsurance affecting that insurance business.

7-27           (e)  A redisclosure authorized under Subsection (d) of this

7-28     section may contain only information reasonably necessary to

7-29     accomplish the purpose for which the information is disclosed.

7-30           Sec. 5.  RIGHT TO KNOW TEST RESULTS.  An individual who

7-31     submits to a genetic test has the right to know the results of that

7-32     test.   On the written request of the individual, the group health

7-33     benefit plan issuer or other entity that performed the test shall

7-34     disclose the test results to the individual or to a physician

7-35     designated by the individual.  The right to information under this

7-36     section is in addition to any right or requirement established

7-37     under Section 3 of this article.

7-38           Sec. 6.  RETENTION OF SAMPLE.  A sample of genetic material

7-39     taken for a genetic test from an individual shall be destroyed

7-40     promptly after the purpose for which the sample was obtained is

7-41     accomplished unless:

7-42                 (1)  the sample is retained under a court order;

7-43                 (2)  the individual tested authorizes retention of the

7-44     sample for purposes of medical treatment or scientific research;

7-45                 (3)  for a sample obtained for research that is cleared

7-46     by an institutional review board, the sample is retained under the

7-47     requirements that the institutional review board imposes on a

7-48     specific research project or as authorized by the research

7-49     participant with institutional review board approval under federal

7-50     law; or

7-51                 (4)  the sample was obtained for a screening test

7-52     established by the Texas Department of Health and performed by that

7-53     department or  by a laboratory approved by that department under

7-54     Section 33.011, Health and Safety Code.

7-55           Sec. 7.  CEASE AND DESIST ORDER; ADMINISTRATIVE PENALTY.

7-56     (a)  On a finding by the commissioner that a group health benefit

7-57     plan issuer is in violation of this article, the commissioner may

7-58     enter a cease and desist order in the manner provided under Article

7-59     1.10A of this code.  If the group health benefit plan issuer

7-60     refuses or fails to comply with the cease and desist order, the

7-61     commissioner may, in the manner provided by this code and the other

7-62     insurance laws of this state, revoke or suspend the issuer's

7-63     certificate of authority or other authorization to engage in the

7-64     operation of a group health benefit plan in this state.

7-65           (b)  A group health benefit plan issuer that operates the

7-66     plan in violation of this article is subject to an administrative

7-67     penalty as provided by Article 1.10E of this code.

7-68           Sec. 8.  EFFECT OF PREGNANCY.  (a) No issuer of a group

7-69     health benefit plan shall require, as a condition of insurance

 8-1     coverage, genetic testing of a child in utero without the consent

 8-2     of the pregnant woman.

 8-3           (b)  No issuer of a group health benefit plan shall use

 8-4     genetic information to coerce or compel a pregnant woman to have an

 8-5     induced abortion.

 8-6           (c)  "Coercion" for the purposes of this section means the

 8-7     restraining or domination of the free will of a woman by actual or

 8-8     implied force, or by actual or implied threat of rejection, denial,

 8-9     limitation, cancellation, refusal to renew, or otherwise adversely

8-10     affecting eligibility for coverage under a group health benefit

8-11     plan.

8-12           SECTION 4.  This Act takes effect September 1, 1997.

8-13           SECTION 5.  Article 9031, Revised Statutes, as added by this

8-14     Act, applies only to a license issued or renewed by a licensing

8-15     authority on or after the effective date of this Act.  A license

8-16     issued or renewed before that date is governed by the law in effect

8-17     on the date the license was issued or renewed, and the former law

8-18     is continued in effect for that purpose.

8-19           SECTION 6.  Article 21.73, Insurance Code, as added by this

8-20     Act, applies only to a group health benefit plan that is delivered,

8-21     issued for delivery, or renewed on or after January 1, 1998.  A

8-22     group health benefit plan that is delivered, issued for delivery,

8-23     or renewed before January 1, 1998, is governed by the law as it

8-24     existed immediately before the effective date of this Act, and that

8-25     law is continued in effect for that purpose.

8-26           SECTION 7.  The importance of this legislation and the

8-27     crowded condition of the calendars in both houses create an

8-28     emergency and an imperative public necessity that the

8-29     constitutional rule requiring bills to be read on three several

8-30     days in each house be suspended, and this rule is hereby suspended.

8-31                                  * * * * *