SRC-JBJ S.B. 753 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 753
76R5714 SMJ-FBy: Madla
State Affairs
3/16/1999
As Filed


DIGEST 

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), so its affiliate must
also adhere to the Act.  As a result of the openness, however, sensitive
records, such as pricing contracts, are available to competitors, foiling
the participation of the public entity in managed care reform.  Granting an
exemption to the special HMOs for certain sensitive activities, already
enjoyed by the governing board of a municipal hospital, municipal hospital
authority, and hospital district, would protect pricing contract
information from competitors, while leaving all other matters in the domain
of open government.  S.B. 753 exempts certain publicly held HMOs activities
from the open meeting requirements. 

PURPOSE

As proposed, S.B. 753 exempts certain publicly held health maintenance
organization activities from the open meetings law requirements. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

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

Sec. 551.085.  New heading:  GOVERNING BOARD OF CERTAIN PROVIDERS OF HEALTH
CARE SERVICES.  Establishes that this chapter does not require the
governing board of a nonprofit health maintenance organization created
under Section 534.101, Health and Safety Code, to conduct an open meeting
for certain deliberations.  Makes conforming 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 certain community center.  Requires notice
of the meeting to be posted in accordance with Sections 551.041, 551.043,
and 551.054, Government Code.  Requires the board of the nonprofit
corporation to provide public notice and to offer an opportunity for public
comment. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4.Emergency clause.