By Zaffirini                                            S.B. No. 98

      75R1944 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a prohibition of discrimination in the determination of

 1-3     eligibility for employment and insurance coverage based on the use

 1-4     of certain genetic tests and to limitations on the use of

 1-5     information derived from those tests.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  Chapter 21, Labor Code, is amended by adding

 1-8     Subchapter  H  to read as follows:

 1-9          SUBCHAPTER H.  DISCRIMINATORY USE OF GENETIC INFORMATION

1-10           Sec. 21.401.   DEFINITIONS.  In this subchapter:

1-11                 (1)  "Genetic characteristic" means an inherited gene

1-12     or chromosome, or an alteration of such a gene or chromosome, that

1-13     is scientifically or medically believed to:

1-14                       (A)  predispose an individual to a disease,

1-15     disorder, or syndrome; or

1-16                       (B)  be associated with a statistically

1-17     significant  increased risk of development of a disease, disorder,

1-18     or syndrome.

1-19                 (2)  "Genetic information" means information about

1-20     genes, gene products, or inherited characteristics that may derive

1-21     from an individual or family member.

1-22                 (3)  "Genetic test" means a laboratory test used to

1-23     determine the presence or absence of genetic characteristics.  The

1-24     term includes a test to diagnose a genetic characteristic,

 2-1     including a test of:

 2-2                       (A)  a nucleic acid, including DNA, RNA, or

 2-3     mitochondrial DNA;

 2-4                       (B)  a chromosome; or

 2-5                       (C)  a protein.

 2-6           Sec. 21.402.  DISCRIMINATORY USE OF GENETIC INFORMATION

 2-7     PROHIBITED.  (a)  An employer commits an unlawful employment

 2-8     practice if the employer fails or refuses to hire, discharges, or

 2-9     otherwise discriminates against an individual with respect to

2-10     compensation or the terms, conditions, or privileges of employment:

2-11                 (1)  on the basis of genetic information concerning the

2-12     individual derived from a genetic test; or

2-13                 (2)  because of the refusal of the individual to submit

2-14     to a genetic test.

2-15           (b)  A labor organization commits an unlawful employment

2-16     practice if the labor organization excludes or expels from

2-17     membership or otherwise discriminates against an individual:

2-18                 (1)  on the basis of genetic information concerning the

2-19     individual derived from a genetic test; or

2-20                 (2)  because of the refusal of the individual to submit

2-21     to a genetic test.

2-22           (c)  An employment agency commits an unlawful employment

2-23     practice if the employment agency classifies or refers for

2-24     employment, fails or refuses to refer for employment, or otherwise

2-25     discriminates against an individual:

2-26                 (1)  on the basis of genetic information concerning the

2-27     individual derived from a genetic test; or

 3-1                 (2)  because of the refusal of the individual to submit

 3-2     to a genetic test.

 3-3           (d)  An employer, labor organization, or employment agency

 3-4     commits an unlawful employment practice if the employer, labor

 3-5     organization, or employment agency limits, segregates, or

 3-6     classifies an employee, member, or applicant for employment or

 3-7     membership in a way that would deprive or tend to deprive the

 3-8     employee, member, or applicant of employment opportunities or

 3-9     otherwise adversely affect the status of the employee, member, or

3-10     applicant:

3-11                 (1)  on the basis of genetic information concerning the

3-12     employee, member, or applicant derived from a genetic test; or

3-13                 (2)  because of the refusal of the employee, member, or

3-14     applicant to submit to a genetic test.

3-15           Sec. 21.403.  INFORMATION CONFIDENTIAL; EXCEPTIONS.  (a)

3-16     Except as provided by Subsection (c), genetic information is

3-17     confidential and privileged regardless of the source of the

3-18     information.  A person or entity who holds that information may not

3-19     disclose or be compelled to disclose, by subpoena or otherwise,

3-20     genetic information about an individual unless the disclosure is

3-21     specifically authorized by the individual as provided by Subsection

3-22     (b).  This subsection applies to a redisclosure of genetic

3-23     information by a secondary recipient of the information after

3-24     disclosure of the information by an initial recipient.

3-25           (b)  An individual or the legal representative of an

3-26     individual may authorize the disclosure of genetic information

3-27     relating to that individual through a written authorization that

 4-1     includes:

 4-2                 (1)  a description of the information to be disclosed;

 4-3                 (2)  the name of the person or entity to whom the

 4-4     disclosure is made; and

 4-5                 (3)  the purpose for the disclosure.

 4-6           (c)  Subject to Subchapter G, Chapter 411, Government Code,

 4-7     genetic information relating to an individual may be disclosed

 4-8     without the authorization required under Subsection (b) if the

 4-9     disclosure is:

4-10                 (1)  authorized under a state or federal criminal law

4-11     relating to:

4-12                       (A)  the identification of individuals; or

4-13                       (B)  a criminal or juvenile proceeding, an

4-14     inquest, or a child fatality review by a multidisciplinary child

4-15     abuse team;

4-16                 (2)  required under a specific order of a state or

4-17     federal court;

4-18                 (3)  authorized under a state or federal law to

4-19     establish paternity;

4-20                 (4)  made to furnish genetic information relating to a

4-21     decedent to the blood relatives of the decedent for the purpose of

4-22     medical diagnosis; or

4-23                 (5)  to identify a decedent.

4-24           Sec. 21.404.  RETENTION OF SAMPLE.  A sample of genetic

4-25     material taken for a genetic  test from an individual remains the

4-26     property of that individual, and shall be destroyed promptly after

4-27     the purpose for which the sample was obtained is accomplished

 5-1     unless retention of the sample is required by order of a court.

 5-2           SECTION 2.  Subchapter E, Chapter 21, Insurance Code, is

 5-3     amended by adding Article 21.73 to read as follows:

 5-4           Art. 21.73.  USE OF GENETIC TESTING INFORMATION BY INSURERS

 5-5           Sec. 1.  DEFINITIONS.  In this article:

 5-6                 (1)  "Genetic characteristic" means an inherited gene

 5-7     or chromosome, or an alteration of such a gene or chromosome, that

 5-8     is scientifically or medically believed to:

 5-9                       (A)  predispose an individual to a disease,

5-10     disorder, or syndrome; or

5-11                       (B)  be associated with a statistically

5-12     significant  increased risk of development of a disease, disorder,

5-13     or syndrome.

5-14                 (2)  "Genetic information" means information about

5-15     genes, gene products, or inherited characteristics that may derive

5-16     from an individual or family member.

5-17                 (3)  "Genetic test" means a laboratory test  used

5-18     to  determine the presence or absence of genetic characteristics.

5-19     The term includes a test to diagnose a genetic characteristic,

5-20     including a test of:

5-21                       (A)  a nucleic acid, including DNA, RNA, or

5-22     mitochondrial DNA;

5-23                       (B)  a chromosome; or

5-24                       (C)  a protein.

5-25                 (4)  "Insurer" includes:

5-26                       (A)  a company authorized to engage in the

5-27     business of insurance in this state under Chapter 3 of this code;

 6-1                       (B)  a group hospital service corporation under

 6-2     Chapter 20 of this code;

 6-3                       (C)  a health maintenance organization under the

 6-4     Texas Health Maintenance Organization Act (Chapter 20A, Vernon's

 6-5     Texas Insurance Code);

 6-6                       (D)  a nonprofit hospital or other entity that

 6-7     provides health care insurance or long-term care insurance coverage

 6-8     and is subject to the jurisdiction of the commissioner; and

 6-9                       (E)  any other person engaged in the business of

6-10     health insurance in this state who is subject to regulation under

6-11     this code or the other insurance laws of this state.

6-12           Sec. 2.  USE OF GENETIC INFORMATION BY INSURERS.  (a)  An

6-13     insurer, in the writing of a health insurance policy or evidence of

6-14     coverage, may not use genetic information to reject, deny, limit,

6-15     cancel, refuse to renew, increase the premiums for, or otherwise

6-16     adversely affect eligibility for or coverage under the policy or

6-17     contract or evidence of coverage.

6-18           (b)  An insurer may not discriminate in the fees,

6-19     commissions, or other compensation paid to an insurance agent for

6-20     writing or renewing a health insurance policy or contract or

6-21     evidence of coverage for an individual because genetic

6-22     characteristics of that individual may be associated with a

6-23     disability in the individual or the individual's descendants.

6-24           Sec. 3.  INFORMATION CONFIDENTIAL; EXCEPTIONS.  (a)  Except

6-25     as provided by Subsection (c) of this section, genetic information

6-26     is confidential and privileged regardless of the source of the

6-27     information.  A person or entity who holds that information may not

 7-1     disclose or be compelled to disclose, by subpoena or otherwise,

 7-2     genetic information about an individual unless the disclosure is

 7-3     specifically authorized by the individual as provided by Subsection

 7-4     (b) of this section.  This subsection applies to a redisclosure of

 7-5     genetic information by a secondary recipient of the information

 7-6     after disclosure of the information by an initial recipient.

 7-7           (b)  An individual or the legal representative of an

 7-8     individual may authorize the disclosure of genetic information

 7-9     relating to that individual through a written authorization that

7-10     includes:

7-11                 (1)  a description of the information to be disclosed;

7-12                 (2)  the name of the person or entity to whom the

7-13     disclosure is made; and

7-14                 (3)  the purpose for the disclosure.

7-15           (c)  Subject to Subchapter G, Chapter 411, Government Code,

7-16     genetic information relating to an individual may be disclosed

7-17     without the authorization required under Subsection (b) if the

7-18     disclosure is:

7-19                 (1)  authorized under a state or federal criminal law

7-20     relating to:

7-21                       (A)  the identification of individuals; or

7-22                       (B)  a criminal or juvenile proceeding, an

7-23     inquest, or a child fatality review by a multidisciplinary child

7-24     abuse team;

7-25                 (2)  required under a specific order of a state or

7-26     federal court;

7-27                 (3)  authorized under a state or federal law to

 8-1     establish paternity;

 8-2                 (4)  made to furnish genetic information relating to a

 8-3     decedent to the blood relatives of the decedent for the purpose of

 8-4     medical diagnosis; or

 8-5                 (5)  to identify a decedent.

 8-6           Sec. 4.  RETENTION OF SAMPLE.  A sample of genetic material

 8-7     taken for a genetic  test from an individual remains the property

 8-8     of that individual, and shall be destroyed promptly after the

 8-9     purpose for which the sample was obtained is accomplished unless

8-10     retention of the sample is required by order of a court.

8-11           Sec. 5.  UNFAIR PRACTICE; REMEDIES.  An insurer  who requires

8-12     an individual to submit to a genetic test or who uses or reveals

8-13     genetic information in violation of the requirements of this

8-14     article commits an unfair practice under Article 21.21 of this code

8-15     and is liable to that individual as provided by that article.

8-16           SECTION 3.  This Act takes effect September 1, 1997.

8-17           SECTION 4.  Article 21.73, Insurance Code, as added by

8-18     Section 2 of this  Act,  applies only to an insurance policy or

8-19     evidence of coverage that is delivered, issued for delivery, or

8-20     renewed on or after January 1, 1998.  A policy or evidence of

8-21     coverage that is delivered, issued for delivery, or renewed before

8-22     January 1, 1998, is governed by the law as it existed immediately

8-23     before the effective date of this Act, and that law is continued in

8-24     effect for that purpose.

8-25           SECTION 5.  The importance of this legislation and the

8-26     crowded condition of the calendars in both houses create an

8-27     emergency and an imperative public necessity that the

 9-1     constitutional rule requiring bills to be read on three several

 9-2     days in each house be suspended, and this rule is hereby suspended.