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.