By: Madla S.B. No. 753
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the application of the open meetings law to certain
1-2 nonprofit health maintenance organizations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 551.085, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 551.085. GOVERNING BOARD OF CERTAIN PROVIDERS OF HEALTH
1-7 CARE SERVICES [MUNICIPAL HOSPITAL, HOSPITAL DISTRICT, OR MUNICIPAL
1-8 HOSPITAL AUTHORITY]. This chapter does not require the governing
1-9 board of a municipal hospital, municipal hospital authority, [or]
1-10 hospital district created under general or special law, or
1-11 nonprofit health maintenance organization created under Section
1-12 534.101, Health and Safety Code, to conduct an open meeting to
1-13 deliberate:
1-14 (1) pricing or financial planning information relating
1-15 to a bid or negotiation for the arrangement or provision of
1-16 services or product lines to another person if disclosure of the
1-17 information would give advantage to competitors of the hospital,
1-18 [or] hospital district, or nonprofit health maintenance
1-19 organization; or
1-20 (2) information relating to a proposed new service or
1-21 product line of the hospital, [or] hospital district, or nonprofit
1-22 health maintenance organization before [the hospital] publicly
1-23 announcing [announces] the service or product line.
1-24 SECTION 2. Subsections (c) and (d), Section 534.101, Health
2-1 and Safety Code, are amended to read as follows:
2-2 (c) Before submitting any bids, a nonprofit corporation
2-3 operating under this subchapter shall disclose in an open meeting
2-4 [writing to the department] the services to be provided by the
2-5 community center through any capitated or other at-risk payment
2-6 arrangement by the nonprofit corporation. Notice of the meeting
2-7 must be posted in accordance with Sections 551.041, 551.043, and
2-8 551.054, Government Code. The department shall verify that the
2-9 services provided under any capitated or other at-risk payment
2-10 arrangement are within the scope of services approved by the
2-11 department in each community center's plan required under
2-12 Subchapter A.
2-13 (d) The board of the nonprofit corporation shall:
2-14 (1) provide for public notice of the nonprofit
2-15 corporation's intent to submit a bid to provide or arrange services
2-16 through a capitated or other at-risk payment arrangement through
2-17 placement as a board agenda item on the next regularly scheduled
2-18 board meeting that allows at least 15 days' public review of the
2-19 plan; and
2-20 (2) provide an opportunity for public comment on the
2-21 services to be provided through such arrangements and on the
2-22 consideration of local input into the plan.
2-23 SECTION 3. This Act takes effect September 1, 1999.
2-24 SECTION 4. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
2-26 emergency and an imperative public necessity that the
3-1 constitutional rule requiring bills to be read on three several
3-2 days in each house be suspended, and this rule is hereby suspended.