HBA-EVB S.B. 753 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 753
By: Madla
State Affairs
4/27/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, a local mental health and mental retardation center (MHMR
center) may maintain a limited purpose health maintenance organization
(HMO).  The MHMR center is a local governmental organization and must
adhere to the Open Meetings and Records Act (Act), and so must its
affiliated HMO.  There is concern that adherence to open meetings
requirements may make certain information available to competitors, such as
pricing or financial planning information, or information relating to a
proposed new service or product line, thus placing the public entity at a
disadvantage.  S.B. 753 exempts certain publicly held HMOs activities from
the open meeting requirements. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 551.085, Government Code, as follows:

Sec. 551.085.  New title: GOVERNING BOARD OF CERTAIN PROVIDERS OF HEALTH
CARE SERVICES.  Provides that this chapter does not require the governing
board of a nonprofit health maintenance organization created under Section
534.101(Health Maintenance Organization Certificate of Authority), Health
and Safety Code, to conduct an open meeting to deliberate enumerated items.
Deletes  "municipal hospital, hospital district, or municipal hospital
authority" from the title.  Makes conforming and nonsubstantive changes. 

SECTION 2.  Amends Sections 534.101(c) and (d), Health and Safety Code, to
require a nonprofit corporation to disclose in an open meeting, rather than
in writing to the Texas Department of Mental Health and Mental Retardation,
the services to be provided by a community center, before submitting any
bids.  Provides that notice of the meeting must be posted in accordance
with Sections 551.041 (Notice of Meeting Required), 551.043 (Time and
Accessibility of Notice; General Rule), and 551.054 (District or Political
Subdivision Extending Into Fewer Than Four Counties: Notice to Public and
County Clerks; Place of Posting Notice), Government Code.  Requires the
board of the nonprofit corporation to provide for public notice and to
provide an opportunity for public comment. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.