1-1     By:  Madla                                             S.B. No. 753
 1-2           (In the Senate - Filed March 1, 1999; March 2, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     March 24, 1999, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 1; March 24, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the application of the open meetings law to certain
 1-9     nonprofit health maintenance organizations.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 551.085, Government Code, is amended to
1-12     read as follows:
1-13           Sec. 551.085.  GOVERNING BOARD OF CERTAIN PROVIDERS OF HEALTH
1-14     CARE SERVICES [MUNICIPAL HOSPITAL, HOSPITAL DISTRICT, OR MUNICIPAL
1-15     HOSPITAL AUTHORITY].  This chapter does not require the governing
1-16     board of a municipal hospital, municipal hospital authority, [or]
1-17     hospital district created under general or special law, or
1-18     nonprofit health maintenance organization created under Section
1-19     534.101, Health and Safety Code, to conduct an open meeting to
1-20     deliberate:
1-21                 (1)  pricing or financial planning information relating
1-22     to a bid or negotiation for the arrangement or provision of
1-23     services or product lines to another person if disclosure of the
1-24     information would give advantage to competitors of the hospital,
1-25     [or] hospital district, or nonprofit health maintenance
1-26     organization; or
1-27                 (2)  information relating to a proposed new service or
1-28     product line of the hospital, [or] hospital district, or nonprofit
1-29     health maintenance organization before [the hospital] publicly
1-30     announcing [announces] the service or product line.
1-31           SECTION 2.  Subsections (c) and (d), Section 534.101, Health
1-32     and Safety Code, are amended to read as follows:
1-33           (c)  Before submitting any bids, a nonprofit corporation
1-34     operating under this subchapter shall disclose in an open meeting
1-35     [writing to the department] the services to be provided by the
1-36     community center through any capitated or other at-risk payment
1-37     arrangement by the nonprofit corporation.  Notice of the meeting
1-38     must be posted in accordance with Sections 551.041, 551.043, and
1-39     551.054, Government Code.  The department shall verify that the
1-40     services provided under any capitated or other at-risk payment
1-41     arrangement are within the scope of services approved by the
1-42     department in each community center's plan required under
1-43     Subchapter A.
1-44           (d)  The board of the nonprofit corporation shall:
1-45                 (1)  provide for public notice of the nonprofit
1-46     corporation's intent to submit a bid to provide or arrange services
1-47     through a capitated or other at-risk payment arrangement through
1-48     placement as a board agenda item on the next regularly scheduled
1-49     board meeting that allows at least 15 days' public review of the
1-50     plan; and
1-51                 (2)  provide an opportunity for public comment on the
1-52     services to be provided through such arrangements and on the
1-53     consideration of local input into the plan.
1-54           SECTION 3.  This Act takes effect September 1, 1999.
1-55           SECTION 4.  The importance of this legislation and the
1-56     crowded condition of the calendars in both houses create an
1-57     emergency and an imperative public necessity that the
1-58     constitutional rule requiring bills to be read on three several
1-59     days in each house be suspended, and this rule is hereby suspended.
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