By Madla                                               S.B. No. 753
         76R5714 SMJ-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application of the open meetings law to certain
 1-3     nonprofit health maintenance organizations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 551.085, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 551.085.  GOVERNING BOARD OF CERTAIN PROVIDERS OF HEALTH
 1-8     CARE SERVICES [MUNICIPAL HOSPITAL, HOSPITAL DISTRICT, OR MUNICIPAL
 1-9     HOSPITAL  AUTHORITY].  This chapter does not require the governing
1-10     board of a municipal hospital, municipal hospital authority, [or]
1-11     hospital district created under general or special law, or
1-12     nonprofit health maintenance organization created under Section
1-13     534.101, Health and Safety Code, to conduct an open meeting to
1-14     deliberate:
1-15                 (1)  pricing or financial planning information relating
1-16     to a bid or negotiation for the arrangement or provision of
1-17     services or product lines to another person if disclosure of the
1-18     information would give advantage to competitors of the hospital,
1-19     [or] hospital district, or nonprofit health maintenance
1-20     organization; or
1-21                 (2)  information relating to a proposed new service or
1-22     product line of the hospital, [or] hospital district, or nonprofit
1-23     health maintenance organization before [the hospital] publicly
1-24     announcing [announces] the service or product line.
 2-1           SECTION 2.  Sections 534.101(c) and (d), Health and Safety
 2-2     Code, are amended to read as follows:
 2-3           (c)  Before submitting any bids, a nonprofit corporation
 2-4     operating under this subchapter shall disclose in an open meeting
 2-5     [in writing to the department] the services to be provided by the
 2-6     community center through any capitated or other at-risk payment
 2-7     arrangement by the nonprofit corporation.  Notice of the meeting
 2-8     must be posted in accordance with Sections 551.041, 551.043, and
 2-9     551.054, Government Code.  The department shall verify that the
2-10     services provided under any capitated or other at-risk payment
2-11     arrangement are within the scope of services approved by the
2-12     department in each community center's plan required under
2-13     Subchapter A.
2-14           (d)  The board of the nonprofit corporation shall:
2-15                 (1)  provide for public notice of the nonprofit
2-16     corporation's intent to submit a bid to provide or arrange services
2-17     through a capitated or other at-risk payment arrangement through
2-18     placement as a board agenda item on the next regularly scheduled
2-19     board meeting that allows at least 15 days' public review of the
2-20     plan; and
2-21                 (2)  provide an opportunity for public comment on the
2-22     services to be provided through such arrangements and on the
2-23     consideration of local input into the plan.
2-24           SECTION 3.  This Act takes effect September 1, 1999.
2-25           SECTION 4.  The importance of this legislation and the
2-26     crowded condition of the calendars in both houses create an
2-27     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.