MINUTES 
                                           
                        SENATE COMMITTEE ON HEALTH SERVICES 
              Joint Hearing on Privacy of Senate Economic Development  
                                   Committee and  
                             Health Services Committee 
                                Monday, May 15, 2000 
                                     10:00 a.m. 
                                   Senate Chamber 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Health  
         Services was held on Monday, May 15, 2000, in the Senate Chamber  
         at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Jane Nelson, Chair              Senator Drew Nixon 
         Senator Mike Moncrief 
         Senator Jon Lindsay 
         Senator Frank Madla 
                                           
                                       ***** 
                                           
         The chair called the meeting to order at 10:10 a.m.  There being  
         a quorum present, the following business was transacted. 
          
         Senator Nelson made opening remarks thanking Senator Sibley and  
         the Economic Development Committee for their willingness to jointly  
         investigate and offer recommendations to insure that privacy  
         protections are adequate and consistent in Texas.  Senator Nelson also  
         applauded Lieutenant Governor Rick Perry for having the foresight to  
         assign this committee the interim of charge of reviewing and revising  
         our medical privacy laws. 
          
         Senator Sibley made opening remarks stating that the purpose for the  
         two committees to meet together to look at the privacy issue and how  
         it relates to insurance, banking and financial institutions, and  
         health insurance so that they can better understand the issues as not  
         to develop contridictory legisation next session.  He stressed that he  
         wants to create a coherent body of law that makes sense to the  
         citizens of Texas.  Senator Sibley thanked Senator Nelson for working  
         together on such an important issue. 
          
         Senator Nelson called for the witnesses for panel #1 to give an  
         overview on privacy issues. 
          
         The following persons provided written and oral testimony: 
          
              Carolyn Purcell, Department of Information Resources 
  
              Elizabeth Rogers, Vinson & Elkins 
          
         The following persons provided oral testimony: 
          
              John Ryan, Conference of State Bank Supervisors 
          
              Rebecca L. Payne, Attorney General's Office 
          
         There being no further questions of these witnesses, Senator  
         Nelson called the witnesses for panel #2 to give an overview on  
         health privacy issues. 
          
         The following persons provided written and oral testimony: 
          
              Steve Palmer, Pharmaceutical Research and Manufacturers of  
                   America    
          
              Will Davis, Texas Association of Life and Health  
              Underwriters 
          
              Nicole Cooper, M.D., Texas Medical Association 
          
              Jim Jacobson, Disease Management Association of America 
          
              Lisa McGiffert, Consumers Union 
               
              A.G. Breitenstein, Self 
          
         There being no further questions of these witnesses, Senator  
         Nelson called for the witnesses for panel #3 to give an overview  
         on industry and commerce privacy issues. 
          
         The following person provided written and oral testimony: 
          
              J. Bradley Johnston, Temple-Inland Financial Services, Inc. 
          
         The following persons provided oral testimony: 
          
              Jeff Clark, Alliance for Responsible Information Practices 
          
              Karen Neeley, Independent Bankers Association of Texas 
          
              Rob Schneider, Consumers Union 
          
         There being no further business, at 2:20 p.m. Senator Nelson  
         recessed the Health Committee, subject to the call of the chair. 
          
         Senator Sibley announced that the Economic Development Committee  
         will stand in recess subject to the call of the chair. 
          
         ______________________ 
         Senator Jane Nelson, Chair 
          
         ______________________ 
         Cheri Huddleston, Clerk