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A BILL TO BE ENTITLED
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AN ACT
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relating to required disclosures to health benefit plan enrollees |
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regarding professional services provided by certain non-network |
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health care providers; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 8, Insurance Code, is amended |
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by adding Chapter 1456 to read as follows: |
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CHAPTER 1456. DISCLOSURE OF PROVIDER STATUS |
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Sec. 1456.001. DEFINITIONS. In this chapter: |
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(1) "Balance billing" means the practice of charging |
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an enrollee in a health benefit plan that uses a provider network to |
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recover from the enrollee the balance of a non-network health care |
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provider's fee for service received by the enrollee from the health |
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care provider that is not fully reimbursed by the enrollee's health |
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benefit plan. |
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(2) "Enrollee" means an individual who is eligible to |
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receive health care services through a health benefit plan. |
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(3) "Facility-based physician" means a radiologist, |
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an anesthesiologist, a pathologist, or an emergency department |
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physician: |
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(A) to whom the facility has granted clinical |
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privileges; and |
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(B) who provides services to patients of the |
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facility under those clinical privileges. |
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(4) "Health care facility" means a hospital, emergency |
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clinic, outpatient clinic, or other facility providing health care |
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services. |
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(5) "Health care practitioner" means an individual who |
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is licensed to provide and provides health care services. |
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(6) "Health care provider" means a health care |
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facility or health care practitioner. |
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(7) "Provider network" means a health benefit plan |
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under which health care services are provided to enrollees through |
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contracts with health care providers and that requires those |
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enrollees to use health care providers participating in the plan |
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and procedures covered by the plan. The term includes a network |
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operated by: |
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(A) a health maintenance organization; |
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(B) a preferred provider benefit plan issuer; or |
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(C) another entity that issues a health benefit |
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plan, including an insurance company. |
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Sec. 1456.002. APPLICABILITY OF CHAPTER. This chapter |
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applies to any health benefit plan that: |
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(1) provides benefits for medical or surgical expenses |
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incurred as a result of a health condition, accident, or sickness, |
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including an individual, group, blanket, or franchise insurance |
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policy or insurance agreement, a group hospital service contract, |
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or an individual or group evidence of coverage that is offered by: |
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(A) an insurance company; |
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(B) a group hospital service corporation |
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operating under Chapter 842; |
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(C) a fraternal benefit society operating under |
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Chapter 885; |
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(D) a stipulated premium company operating under |
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Chapter 884; |
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(E) a health maintenance organization operating |
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under Chapter 843; |
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(F) a multiple employer welfare arrangement that |
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holds a certificate of authority under Chapter 846; |
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(G) an approved nonprofit health corporation |
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that holds a certificate of authority under Chapter 844; or |
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(H) an entity not authorized under this code or |
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another insurance law of this state that contracts directly for |
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health care services on a risk-sharing basis, including a |
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capitation basis; or |
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(2) provides health and accident coverage through a |
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risk pool created under Chapter 172, Local Government Code, |
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notwithstanding Section 172.014, Local Government Code, or any |
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other law. |
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Sec. 1456.003. REQUIRED DISCLOSURE: HEALTH BENEFIT PLAN. |
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(a) Each health benefit plan that provides health care through a |
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provider network shall provide notice to its enrollees that: |
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(1) a facility-based physician or other health care |
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practitioner may not be included in the health benefit plan's |
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provider network; and |
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(2) a health care practitioner described by |
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Subdivision (1) may balance bill the enrollee for amounts not paid |
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by the health benefit plan. |
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(b) The health benefit plan shall provide the disclosure in |
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writing to each enrollee: |
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(1) in any materials sent to the enrollee in |
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conjunction with issuance or renewal of the plan's insurance policy |
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or evidence of coverage; |
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(2) in an explanation of payment summary provided to |
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the enrollee; |
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(3) in any other analogous document that describes the |
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enrollee's benefits under the plan; or |
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(4) conspicuously displayed on any website that an |
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enrollee is reasonably expected to access. |
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Sec. 1456.004. REQUIRED DISCLOSURE: HEALTH CARE FACILITY. |
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(a) Each health care facility that has entered into a contract with |
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a health benefit plan to serve as a provider in the health benefit |
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plan's provider network shall provide notice to enrollees receiving |
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health care services at the facility that: |
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(1) a facility-based physician or other health care |
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practitioner may not be included in the health benefit plan's |
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provider network; and |
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(2) a health care practitioner described by |
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Subdivision (1) may balance bill the enrollee for amounts not paid |
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by the health benefit plan. |
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(b) The health care facility shall provide the disclosure in |
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writing at the time the enrollee is first admitted to the facility |
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or first receives services at the facility. |
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Sec. 1456.005. REQUIRED DISCLOSURE: FACILITY-BASED |
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PHYSICIANS. If a facility-based physician bills a patient who is |
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covered by a health benefit plan, as described in Section 1456.002, |
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that does not have a contract with the facility-based physician, |
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the facility-based physician shall send a billing statement that: |
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(1) contains an itemized listing of the services and |
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supplies provided along with the dates the services and supplies |
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were provided; |
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(2) contains a conspicuous, plain-language |
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explanation that: |
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(A) the facility-based physician is not within |
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the provider network; and |
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(B) the health benefit plan has paid the usual |
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and customary rate, as determined by the health benefit plan, which |
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is below the facility-based physician billed amount; |
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(3) contains a telephone number to call to discuss the |
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statement, provide an explanation of any acronyms, abbreviations, |
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and numbers used on the statement, or discuss any payment issues; |
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(4) contains a statement that the patient may call to |
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discuss alternative payment arrangements; |
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(5) contains a notice that the patient may file |
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complaints with the Texas Medical Board and includes the Texas |
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Medical Board's mailing address and complaint telephone number; and |
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(6) for billing statements that total an amount |
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greater than $200, over any applicable copayments or deductibles, |
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states, in plain language, that if the patient finalizes a payment |
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plan agreement within 45 days of receiving the first billing |
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statement and substantially complies with the agreement, the |
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facility-based physician may not furnish adverse information to a |
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consumer reporting agency regarding an amount owed by the patient |
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for the receipt of medical treatment for one calendar year from the |
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first statement date. A patient may be considered by the |
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facility-based physician to be out of substantial compliance with |
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the payment plan agreement if payments are not made in compliance |
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with the agreement for a period of 90 days. |
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Sec. 1456.006. DISCIPLINARY ACTION AND ADMINISTRATIVE |
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PENALTY. (a) The commissioner may take disciplinary action |
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against a health benefit plan issuer that violates this chapter in |
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accordance with Chapter 84. A health care provider that violates |
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this chapter is subject to disciplinary action by the appropriate |
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regulatory agency. |
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(b) A violation of this chapter by a health care provider or |
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facility-based physician is grounds for disciplinary action and |
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imposition of an administrative penalty by the appropriate |
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regulatory agency that issued a license, certification, or |
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registration to the health care provider or facility-based |
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physician who committed the violation. |
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(c) The regulatory agency shall: |
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(1) notify a health care provider or facility-based |
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physician of a finding by the regulatory agency that the health care |
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provider or facility-based physician is violating or has violated |
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this chapter or a rule adopted under this chapter; and |
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(2) provide the health care provider or facility-based |
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physician with an opportunity to correct the violation. |
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(d) A violation of this chapter by a physician is not |
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considered to require a determination of medical competency, and |
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Section 154.058, Occupations Code, does not apply to such a |
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violation. |
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Sec. 1456.007. COMMISSIONER RULES; FORM OF DISCLOSURE. The |
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commissioner by rule may prescribe specific requirements for the |
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disclosure required under Sections 1456.003 and 1456.004. The form |
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of the disclosure must be substantially as follows: |
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NOTICE |
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ALTHOUGH HEALTH CARE SERVICES MAY BE OR HAVE BEEN PROVIDED TO |
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YOU AT A HEALTH CARE FACILITY THAT IS A MEMBER OF THE PROVIDER |
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NETWORK USED BY YOUR HEALTH BENEFIT PLAN, OTHER PROFESSIONAL |
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SERVICES MAY BE OR HAVE BEEN PROVIDED AT OR THROUGH THE FACILITY BY |
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HEALTH CARE PROVIDERS WHO ARE NOT MEMBERS OF THAT NETWORK. YOU MAY |
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BE RESPONSIBLE FOR PAYMENT OF ALL OR PART OF THE FEES FOR THOSE |
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PROFESSIONAL SERVICES THAT ARE NOT COVERED BY YOUR HEALTH BENEFIT |
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PLAN. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |