By: Homer H.B. No. 4519

Substitute the following for H.B. No. 4519:

By: Eiland C.S.H.B. No. 4519

A BILL TO BE ENTITLED

AN ACT

relating to standards for independent review organizations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 4202.002, Insurance Code, is amended by adding Subsection (c) to read as follows:

(c) In addition to the standards described by Subsection (b), the commissioner shall adopt standards and rules that:

(1) prohibit:

(A) more than one independent review organization from operating out of the same office or other facility;

(B) an individual or entity from owning more than one independent review organization;

(C) an individual from owning stock in or serving board of more than one independent review organization;

(D) an individual who has served on the board of an independent review organization whose certification was revoked for cause from serving on the board of another independent review organization before the fifth anniversary of the date on which the revocation occurred;

(E) an attorney who is, or has in the past served as, the registered agent for an independent review organization from representing the independent review organization in legal proceedings; and

(F) an independent review organization from disclosing confidential patient information, except to a provider who is under contract to perform the review; and

(2) require:

(A) an independent review organization to be based and certified in this state and to locate the organization's primary offices in this state;

(B) an independent review organization to voluntarily surrender the organization's certification while the organization is under investigation or as part of an agreed order; and

(C) an independent review organization to apply for and receive a new certification after the organization is sold to a new owner.

SECTION 2. This Act takes effect September 1, 2009.