By:  Sibley                                            S.R. No. 981

                                  SENATE RESOLUTION

 1-1           BE IT RESOLVED by the Senate of the State of Texas, 75th

 1-2     Legislature, Regular Session, 1997, That Senate Rule 12.03 be

 1-3     suspended in part as provided by Senate Rule 12.08 to enable the

 1-4     conference committee appointed to resolve the differences on Senate

 1-5     Bill No. 385 to consider and take action on the following specific

 1-6     matters:

 1-7           Senate Rules 12.03(2) and (3) are suspended to permit the

 1-8     committee to change Subdivision (4) and add Subdivisions (5)

 1-9     through (10) to Subsection (e), Article 1.35A, Insurance Code, to

1-10     read as follows:

1-11                 (4)  The office of public insurance counsel shall use

1-12     the information collected or received under this subsection for the

1-13     benefit of the public.  Except as provided by this subsection, the

1-14     information is subject to the open records law, Chapter 552,

1-15     Government Code, and the office of public insurance counsel shall

1-16     make determinations on requests for information in favor of access.

1-17                 (5)  The office of public insurance counsel is entitled

1-18     to information that is confidential under any law of this state,

1-19     including Section 27, Texas Health Maintenance Organization Act

1-20     (Article 20A.27, Vernon's Texas Insurance Code), Chapter 108,

1-21     Health and Safety Code, and the open records law, Chapter 552,

1-22     Government Code.

1-23                 (6)  The office of public insurance counsel may not

 2-1     make public confidential information provided to the office under

 2-2     this subsection but may disclose a summary of the information that

 2-3     does not directly or indirectly identify the health maintenance

 2-4     organization that is the subject of the information.  The office of

 2-5     public insurance counsel may not release, and a person or entity

 2-6     may not gain access to, any information that:

 2-7                       (A)  could reasonably be expected to reveal the

 2-8     identity of a patient or physician or that reveals the zip code of

 2-9     a patient's primary residence;

2-10                       (B)  discloses provider discounts or

2-11     differentials between payments and billed charges; or

2-12                       (C)  relates to actual payments to an identified

2-13     provider made by a payer.

2-14                 (7)  Information collected or used by the office of

2-15     public insurance counsel under this subsection is subject to the

2-16     confidentiality provisions and criminal penalties of:

2-17                       (A)  Section 81.103, Health and Safety Code;

2-18                       (B)  Section 311.037, Health and Safety Code; and

2-19                       (C)  Section 5.08, Medical Practice Act (Article

2-20     4495b, Vernon's Texas Civil Statutes).

2-21                 (8)  Information that is in the possession of the

2-22     office of public insurance counsel and that relates to patients and

2-23     physicians and any compilation, report, or analysis produced from

2-24     the information that identifies patients and physicians are not:

2-25                       (A)  subject to discovery, subpoena, or other

 3-1     means of legal compulsion for release to any person or entity; or

 3-2                       (B)  admissible in any civil, administrative, or

 3-3     criminal proceeding.

 3-4                 (9)  Notwithstanding Subdivision (6)(A) of this

 3-5     subsection, the office of public insurance counsel may use zip code

 3-6     information to analyze information on a geographic basis.

 3-7                 (10)  The office may not endorse or recommend a

 3-8     specific health maintenance organization or plan, or subjectively

 3-9     rate or rank such organizations or plans, other than through

3-10     comparison and evaluation of objective criteria.

3-11           Explanation:  These changes are necessary to provide adequate

3-12     confidentiality provisions to protect information reviewed by the

3-13     office of public insurance counsel and to ensure that evaluations

3-14     and comparisons of health maintenance organizations are done on a

3-15     fair and objective basis.

3-16                                  ______________________________________

3-17                                          President of the Senate

3-18                                       I hereby certify that the above

3-19                                  Resolution was adopted by the Senate

3-20                                  on May 31, 1997, by the following vote:

3-21                                  Yeas 30, Nays 0.

3-22                                  ______________________________________

3-23                                          Secretary of the Senate