75R10983 CAG-D                           

         By Hochberg                                            H.B. No. 561

         Substitute the following for H.B. No. 561:

         By Berlanga                                        C.S.H.B. No. 561

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the exchange of information between certain health care

 1-3     regulatory agencies.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Title 7, Government Code, is amended by adding

 1-6     Chapter 774 to read as follows:

 1-7                CHAPTER 774.  EXCHANGE OF INFORMATION BETWEEN

 1-8                             REGULATORY AGENCIES

 1-9           Sec. 774.001.  DEFINITIONS.  In this chapter:

1-10                 (1)  "Health care provider" means a person who has been

1-11     issued a license by a health care regulatory agency.

1-12                 (2)  "Health care regulatory agency" means a regulatory

1-13     agency that:

1-14                       (A)  appoints a member of the Health Professions

1-15     Council; or

1-16                       (B)  is supervised by the health licensing

1-17     division of the Texas Department of Health.

1-18                 (3)  "License" includes a license, certificate,

1-19     registration, permit, or other authorization, required by law or

1-20     state agency rule, that a person must obtain to practice or engage

1-21     in a particular business or occupation.

1-22                 (4)  "Regulatory agency" means an agency, including a

1-23     department, commission, board, or office, that:

1-24                       (A)  is created by the constitution or by

 2-1     statute;

 2-2                       (B)  is in the executive branch of state

 2-3     government;

 2-4                       (C)  has statewide authority; and

 2-5                       (D)  has authority to deny, grant, renew, revoke,

 2-6     or suspend a license.

 2-7           Sec. 774.002.  DUTY TO EXCHANGE INFORMATION.  (a)  A health

 2-8     care regulatory agency that, in the course of an audit, review,

 2-9     investigation, or examination of a complaint, obtains information

2-10     pertaining to the complaint that it believes may be grounds for

2-11     another health care regulatory agency to conduct an investigation

2-12     of or institute a disciplinary proceeding against a health care

2-13     provider shall forward the information and any subsequently

2-14     obtained information or final determination regarding the health

2-15     care provider to the other health care regulatory agency.

2-16           (b)  Information that may be grounds for investigative or

2-17     disciplinary action by another health care regulatory agency

2-18     includes information:

2-19                 (1)  that relates to a violation of a rule or statute

2-20     enforced by the other health care regulatory agency; or

2-21                 (2)  that, in the good faith belief of the agency

2-22     obtaining the information, is likely to lead to the discovery of a

2-23     violation of a rule or statute enforced by the other health care

2-24     regulatory agency.

2-25           (c)  Information forwarded by a health care regulatory agency

2-26     under this section that is privileged or confidential retains its

2-27     privileged or confidential nature following the receipt by another

 3-1     health care regulatory agency.  The privilege or confidentiality

 3-2     extends to any agency communication concerning the information

 3-3     forwarded, regardless of the form, manner, or content of the

 3-4     communication.

 3-5           (d)  The forwarding of privileged or confidential information

 3-6     by a health care regulatory agency does not waive a privilege in or

 3-7     create an exception to the confidentiality of the information.

 3-8           (e)  An agency's provision of information or failure to

 3-9     provide information under this section does not give rise to a

3-10     cause of action against the agency.

3-11           Sec. 774.003.  PROCEDURE FOR EXCHANGE OF INFORMATION.  (a)  A

3-12     health care regulatory agency shall establish and implement written

3-13     procedures to ensure that information obtained that is required to

3-14     be forwarded under Section 774.002 is forwarded to the appropriate

3-15     health care regulatory agency not later than the 15th day after the

3-16     date the agency determines that the information is information that

3-17     it believes may be grounds for another health care regulatory

3-18     agency to conduct an investigation of or institute a disciplinary

3-19     proceeding against a health care provider under Section 774.002.

3-20           (b)  A procedure adopted under this section must provide that

3-21     the executive head of a health care regulatory agency or the

3-22     executive head's designee may forward information under this

3-23     section only to the executive head or the executive head's designee

3-24     of the appropriate health care regulatory agency.

3-25           (c)  In this section, "executive head" means the director,

3-26     executive director, commissioner, administrator, chief clerk, or

3-27     other individual who is appointed by the governing body or highest

 4-1     officer of a health care regulatory agency to act as the chief

 4-2     executive or administrative officer of the agency and who is not an

 4-3     appointed officer.

 4-4           SECTION 2.  This Act takes effect September 1, 1997, and

 4-5     applies only to information obtained by a health care regulatory

 4-6     agency on or after the effective date of this Act.  Information

 4-7     obtained by a health care regulatory agency before the effective

 4-8     date of this Act is governed by the law in effect on the date it

 4-9     was obtained, and the former law is continued in effect for that

4-10     purpose.

4-11           SECTION 3.  The importance of this legislation and the

4-12     crowded condition of the calendars in both houses create an

4-13     emergency and an imperative public necessity that the

4-14     constitutional rule requiring bills to be read on three several

4-15     days in each house be suspended, and this rule is hereby suspended.