AN ACT

 1-1     relating to prevention and treatment of diabetes.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3                ARTICLE 1.  TEXAS DIABETES CARE PILOT PROGRAM

 1-4           SECTION 1.01.  In this article:

 1-5                 (1)  "Commission" means the Health and Human Services

 1-6     Commission.

 1-7                 (2)  "Council" means the Texas Diabetes Council.

 1-8                 (3)  "Program" means the Texas Diabetes Care Pilot

 1-9     Program established under this article.

1-10           SECTION 1.02.  (a)  The Health and Human Services Commission

1-11     by rule shall develop a Texas Diabetes Care Pilot Program for

1-12     initial implementation in counties, selected by the commission,

1-13     with a high incidence of and a high death rate from diabetes.

1-14           (b)  The program shall provide continuous care, including

1-15     preventive services such as structured outpatient diabetes

1-16     education, nutrition counseling, and case management, to Medicaid

1-17     recipients who have diabetes-related conditions.  In developing the

1-18     program, the commission shall consider the program operated in 1993

1-19     and 1994 in Maryland.

1-20           (c)  The Texas Diabetes Council shall administer the program

1-21     under the direction of the commission.

1-22           (d)  Except as provided by Section 1.04 of this article, the

1-23     commission and the council shall implement the program not later

 2-1     than November 1, 1997.

 2-2           SECTION 1.03.  (a)  Not later than September 1, 1998, the

 2-3     commission shall submit an interim written report to the lieutenant

 2-4     governor and the speaker of the house of representatives on the

 2-5     effectiveness, including the cost-effectiveness, of the program.

 2-6           (b)  Not later than September 1, 1999, the commission shall

 2-7     submit a final written report to the lieutenant governor and the

 2-8     speaker of the house of representatives on the effectiveness,

 2-9     including the cost-effectiveness, of the program.

2-10           SECTION 1.04.  If before implementing this article the

2-11     commission determines that a waiver or authorization from a federal

2-12     agency is necessary for implementation, the commission shall

2-13     request the waiver or authorization and may delay implementing this

2-14     section until the waiver or authorization is granted.

2-15           SECTION 1.05.  This article expires September 1, 2001.

2-16        ARTICLE 2.  BENEFITS FOR DIABETES CARE PROVIDED UNDER HEALTH

2-17                                BENEFIT PLANS

2-18           SECTION 2.01.  Subchapter E, Chapter 21, Insurance Code, is

2-19     amended by adding Article 21.53D to read as follows:

2-20           Art. 21.53D.  GUIDELINES FOR DIABETES CARE

2-21           Sec. 1.  DEFINITIONS.  In this article:

2-22                 (1)  "Enrollee" means a person entitled to coverage

2-23     under a health benefit plan.

2-24                 (2)  "Health benefit plan" means a plan described by

2-25     Section 2 of this article.

 3-1           Sec. 2.  SCOPE OF ARTICLE.  (a)  This article applies only to

 3-2     a health benefit plan that provides benefits for medical or

 3-3     surgical expenses incurred as a result of a health condition,

 3-4     accident, or sickness, including:

 3-5                 (1)  an individual, group, blanket, or franchise

 3-6     insurance policy or insurance agreement, a group hospital service

 3-7     contract, or an individual or group evidence of coverage that is

 3-8     offered by:

 3-9                       (A)  an insurance company;

3-10                       (B)  a group hospital service corporation

3-11     operating under Chapter 20 of this code;

3-12                       (C)  a fraternal benefit society operating under

3-13     Chapter 10 of this code;

3-14                       (D)  a stipulated premium insurance company

3-15     operating under Chapter 22 of this code; or

3-16                       (E)  a health maintenance organization operating

3-17     under the Texas Health Maintenance Organization Act (Chapter 20A,

3-18     Vernon's Texas Insurance Code);

3-19                 (2)  to the extent permitted by the Employee Retirement

3-20     Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.), a

3-21     health benefit plan that is offered by:

3-22                       (A)  a multiple employer welfare arrangement as

3-23     defined by Section 3, Employee Retirement Income Security Act of

3-24     1974 (29 U.S.C. Section 1002); or

3-25                       (B)  another analogous benefit arrangement; or

 4-1                 (3)  notwithstanding Section 172.014, Local Government

 4-2     Code, or any other law, health and accident coverage provided by a

 4-3     risk pool created under Chapter 172, Local Government Code.

 4-4           (b)  This article does not apply to:

 4-5                 (1)  a plan that provides coverage:

 4-6                       (A)  only for a specified disease;

 4-7                       (B)  only for accidental death or dismemberment;

 4-8                       (C)  for wages or payments in lieu of wages for a

 4-9     period during which an employee is absent from work because of

4-10     sickness or injury;

4-11                       (D)  as a supplement to liability insurance;

4-12                       (E)  dental or vision care only; or

4-13                       (F)  hospital confinement indemnity coverage

4-14     only;

4-15                 (2)  a plan written under Chapter 26 of this code;

4-16                 (3)  a Medicare supplemental policy as defined by

4-17     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);

4-18                 (4)  workers' compensation insurance coverage;

4-19                 (5)  medical payment insurance issued as part of a

4-20     motor vehicle insurance policy; or

4-21                 (6)  a long-term care policy, including a nursing home

4-22     fixed indemnity policy, unless the commissioner determines that the

4-23     policy provides benefit coverage so comprehensive that the policy

4-24     is a health benefit plan as described by Subsection (a) of this

4-25     section.

 5-1           Sec. 3.  DIABETES CARE GUIDELINES.  (a)  The commissioner, in

 5-2     consultation with the Texas Diabetes Council, shall by rule adopt

 5-3     minimum standards for benefits provided to enrollees with diabetes.

 5-4           (b)  Each health care benefit plan shall provide benefits for

 5-5     the care required by the minimum standards adopted under Subsection

 5-6     (a) of this section.

 5-7           (c)  The benefits required under this article may not be

 5-8     subject to a deductible, coinsurance, or copayment requirement that

 5-9     exceeds the applicable deductible, coinsurance, or copayment

5-10     applicable to other similar benefits provided under the plan.

5-11           SECTION 2.02.  The Commissioner of Insurance shall, in

5-12     consultation with the Texas Diabetes Council, adopt the minimum

5-13     benefits required under Article 21.53D, Insurance Code, as added by

5-14     this Act, not later than September 1, 1998.

5-15           SECTION 2.03.  Article 21.53D, Insurance Code, as added by

5-16     this Act, applies only to a health benefit plan that is delivered,

5-17     issued for delivery, or renewed on or after January 1, 1999.  A

5-18     policy that is delivered, issued for delivery, or renewed before

5-19     January 1, 1999, is governed by the law as it existed immediately

5-20     before the effective date of this Act, and that law is continued in

5-21     effect for that purpose.

5-22            ARTICLE 3.  COMPOSITION OF THE TEXAS DIABETES COUNCIL

5-23           SECTION 3.01.  Section 103.005, Health and Safety Code, is

5-24     amended to read as follows:

5-25           Sec. 103.005. TERMS.  (a)  Council members appointed by the

 6-1     governor serve for staggered six-year [four-year] terms, with the

 6-2     terms of four [six citizen] members [and two agency

 6-3     representatives] expiring February 1 of each odd-numbered year [and

 6-4     the terms of six citizen members and three agency representatives

 6-5     expiring February 1 of each even-numbered year].

 6-6           (b)  A council member appointed as a representative of an

 6-7     agency serves at the will of the appointing agency.

 6-8           SECTION 3.02.  Subsection (a), Section 103.008, Health and

 6-9     Safety Code, is amended to read as follows:

6-10           (a)  The office of a member appointed by an agency becomes

6-11     vacant when the person terminates employment with the agency or

6-12     when the agency elects to replace the person as provided by Section

6-13     103.005.

6-14           SECTION 3.03.  (a)  The Texas Diabetes Council is abolished

6-15     on the effective date of this Act.  As soon as possible after the

6-16     effective date of this Act, the governor and each state agency

6-17     listed in Section 103.002, Health and Safety Code, as appropriate,

6-18     shall appoint a new Texas Diabetes Council to accomplish the

6-19     membership plan for the council established by this Act.  This

6-20     subsection does not prohibit the governor or a state agency from

6-21     appointing to the council a person serving on the council on the

6-22     effective date of this Act.

6-23           (b)  In making appointments to the Texas Diabetes Council

6-24     under Subsection (a) of this section, the governor shall appoint

6-25     four members for terms expiring February 1, 1999, four members for

 7-1     terms expiring February 1, 2001, and four members for terms

 7-2     expiring February 1, 2003.

 7-3               ARTICLE 4.  DIABETES INFORMATION AND EDUCATION

 7-4           SECTION 4.01.  Chapter 103, Health and Safety Code, is

 7-5     amended by amending Section 103.017 and adding Section 103.0175 to

 7-6     read as follows:

 7-7           Sec. 103.017.  PUBLIC AWARENESS AND TRAINING.  (a)  The

 7-8     department, the Texas Commission for the Blind, the Texas

 7-9     Rehabilitation Commission, the Texas Department of Human Services,

7-10     and the Texas [Central] Education Agency shall work with the

7-11     council to jointly develop, produce, and implement a general public

7-12     awareness strategy focusing on diabetes, its complications, and

7-13     techniques for achieving good management.  Each agency shall pay

7-14     for the costs of producing and disseminating information on

7-15     diabetes to clients served by that agency.

7-16           (b)  The strategy developed under Subsection (a) must include

7-17     a plan under which the council provides public awareness

7-18     information through businesses, civic organizations, and similar

7-19     entities.

7-20           (c)  The department, the Texas Commission for the Blind, the

7-21     Texas Rehabilitation Commission, the Texas Department of Human

7-22     Services, and the Texas [Central] Education Agency may jointly

7-23     develop and implement a statewide plan for conducting regional

7-24     training sessions for public and private service providers,

7-25     including institutional health care providers, who have routine

 8-1     contact with persons with diabetes.

 8-2           (d) [(c)]  The council must approve the strategies and plans

 8-3     developed under this section.

 8-4           Sec. 103.0175.  MATERIALS FOR SCHOOL-BASED AND SCHOOL-LINKED

 8-5     CLINICS.  The council, in consultation with the department, shall

 8-6     develop and make available materials that provide information about

 8-7     diabetes to be distributed to students and the parents of students

 8-8     by health clinics at public primary or secondary schools.

 8-9           SECTION 4.02.  Section 28.002, Education Code, is amended by

8-10     adding Subsection (k) to read as follows:

8-11           (k)  The State Board of Education, in consultation with the

8-12     Texas Department of Health and the Texas Diabetes Council, shall

8-13     develop a diabetes education program that a school district may use

8-14     in the health curriculum under Subsection (a)(2)(B).

8-15                    ARTICLE 5.  EFFECTIVE DATE; EMERGENCY

8-16           SECTION 5.01.  This Act takes effect September 1, 1997.

8-17           SECTION 5.02.  The importance of this legislation and the

8-18     crowded condition of the calendars in both houses create an

8-19     emergency and an imperative public necessity that the

8-20     constitutional rule requiring bills to be read on three several

8-21     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 162 passed the Senate on

         March 10, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendments on May 28, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 162 passed the House, with

         amendments, on May 24, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor