This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  H.B. No. 1066
 
 
 
 
AN ACT
  relating to health information technology and the creation of the
  Texas Health Services Authority.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle I, Title 2, Health and Safety Code, is
  amended by adding Chapter 182 to read as follows:
  CHAPTER 182. TEXAS HEALTH SERVICES AUTHORITY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 182.001.  PURPOSE. This chapter establishes the Texas
  Health Services Authority as a public-private collaborative to
  implement the state-level health information technology functions
  identified by the Texas Health Information Technology Advisory
  Committee by serving as a catalyst for the development of a seamless
  electronic health information infrastructure to support the health
  care system in the state and to improve patient safety and quality
  of care.
         Sec. 182.002.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of directors of the
  corporation.
               (2)  "Corporation" means the Texas Health Services
  Authority.
               (3)  "De-identified protected health information"
  means protected health information that is not individually
  identifiable health information as that term is defined by the
  privacy rule of the Administrative Simplification subtitle of the
  Health Insurance Portability and Accountability Act of 1996 (Pub.
  L. No. 104-191) contained in 45 C.F.R. Part 160 and 45 C.F.R. Part
  164, Subparts A and E.
               (4)  "Individually identifiable health information"
  means individually identifiable health information as that term is
  defined by the privacy rule of the Administrative Simplification
  subtitle of the Health Insurance Portability and Accountability Act
  of 1996 (Pub. L. No. 104-191) contained in 45 C.F.R. Part 160 and 45
  C.F.R. Part 164, Subparts A and E.
               (5)  "Physician" means:
                     (A)  an individual licensed to practice medicine
  in this state under the authority of Subtitle B, Title 3,
  Occupations Code;
                     (B)  a professional entity organized in
  conformity with Title 7, Business Organizations Code, and permitted
  to practice medicine under Subtitle B, Title 3, Occupations Code;
                     (C)  a partnership organized in conformity with
  Title 4, Business Organizations Code, composed entirely of
  individuals licensed to practice medicine under Subtitle B, Title
  3, Occupations Code;
                     (D)  an approved nonprofit health corporation
  certified under Chapter 162, Occupations Code;
                     (E)  a medical school or medical and dental unit,
  as defined or described by Section 61.003, 61.501, or 74.601,
  Education Code, that employs or contracts with physicians to teach
  or provide medical services or employs physicians and contracts
  with physicians in a practice plan; or
                     (F)  an entity wholly owned by individuals
  licensed to practice medicine under Subtitle B, Title 3,
  Occupations Code.
               (6)  "Protected health information" means protected
  health information as that term is defined by the privacy rule of
  the Administrative Simplification subtitle of the Health Insurance
  Portability and Accountability Act of 1996 (Pub. L. No. 104-191)
  contained in 45 C.F.R. Part 160 and 45 C.F.R. Part 164, Subparts A
  and E.
  [Sections 182.003-182.050 reserved for expansion]
  SUBCHAPTER B. ADMINISTRATION
         Sec. 182.051.  TEXAS HEALTH SERVICES AUTHORITY; PURPOSE.
  (a)  The corporation is established to:
               (1)  promote, implement, and facilitate the voluntary
  and secure electronic exchange of health information; and
               (2)  create incentives to promote, implement, and
  facilitate the voluntary and secure electronic exchange of health
  information.
         (b)  The corporation is a public nonprofit corporation and,
  except as otherwise provided in this chapter, has all the powers and
  duties incident to a nonprofit corporation under the Business
  Organizations Code.
         (c)  The corporation is subject to state law governing
  nonprofit corporations, except that:
               (1)  the corporation may not be placed in receivership;
  and
               (2)  the corporation is not required to make reports to
  the secretary of state under Section 22.357, Business Organizations
  Code.
         (d)  Except as otherwise provided by law, all expenses of the
  corporation shall be paid from income of the corporation.
         (e)  The corporation is subject to Chapter 551, Government
  Code.
         Sec. 182.052.  APPLICATION OF SUNSET ACT. The corporation
  is subject to Chapter 325, Government Code. Unless continued in
  existence as provided by that chapter, the corporation is abolished
  and this chapter expires September 1, 2011. The governor may order
  the dissolution of the corporation at any time the governor
  declares that the purposes of the corporation have been fulfilled
  or that the corporation is inoperative or abandoned.
         Sec. 182.053.  COMPOSITION OF BOARD OF DIRECTORS. (a)  The
  corporation is governed by a board of 11 directors appointed by the
  governor, with the advice and consent of the senate.
         (b)  The governor shall also appoint at least two ex officio,
  nonvoting members representing the Department of State Health
  Services.
         (c)  The governor shall appoint as voting board members
  individuals who represent consumers, clinical laboratories, health
  benefit plans, hospitals, regional health information exchange
  initiatives, pharmacies, physicians, or rural health providers, or
  who possess expertise in any other area the governor finds
  necessary for the successful operation of the corporation.
         (d)  An individual may not serve on the board of the
  corporation if the individual serves on the board of any other
  governmental body in this state.
         (e)  Appointments to the board shall be made without regard
  to the race, color, disability, sex, religion, age, or national
  origin of the appointees.
         (f)  An individual may not serve on the board of the
  corporation, in any capacity, if the individual has made a gift or
  grant, in cash or in kind, to the corporation.
         (g)  An individual may not serve on the board of the
  corporation, in any capacity, if the individual is required to
  register as a lobbyist under Chapter 305, Government Code, because
  of the person's activities for compensation on behalf of a
  profession or entity that is engaged in the providing of health
  care, the review or analysis of health care, the payment for health
  care services or procedures, or the providing of information
  technology.
         Sec. 182.054.  TERMS OF OFFICE. Appointed members of the
  board serve two-year terms and may continue to serve until a
  successor has been appointed by the governor.
         Sec. 182.055.  EXPENSES. Members of the board serve without
  compensation but are entitled to reimbursement for actual and
  necessary expenses in attending meetings of the board or performing
  other official duties authorized by the presiding officer.
         Sec. 182.056.  OFFICERS; CONFLICT OF INTEREST. (a) The
  governor shall designate a member of the board as presiding officer
  to serve in that capacity at the pleasure of the governor.
         (b)  Any board member or a member of a committee formed by the
  board with direct interest in a matter, personally or through an
  employer, before the board shall abstain from deliberations and
  actions on the matter in which the conflict of interest arises and
  shall further abstain on any vote on the matter, and may not
  otherwise participate in a decision on the matter.
         (c)  Each board member shall file a conflict of interest
  statement and a statement of ownership interests with the board to
  ensure disclosure of all existing and potential personal interests
  related to board business.
         Sec. 182.057. PROHIBITION ON CERTAIN CONTRACTS AND
  EMPLOYMENT.  The board may not compensate, employ, or contract with
  any individual who serves as a member of the board or advisory
  council to any other governmental body, including any agency,
  council, or committee, in this state.
         Sec. 182.058.  MEETINGS. (a) The board may meet as often as
  necessary, but shall meet at least twice a year.
         (b)  The board shall develop and implement policies that
  provide the public with a reasonable opportunity to appear before
  the board and to speak on any issue under the authority of the
  corporation.
         Sec. 182.059.  CHIEF EXECUTIVE OFFICER; PERSONNEL. The
  board may hire a chief executive officer. Under the direction of
  the board, the chief executive officer shall perform the duties
  required by this chapter or designated by the board. The chief
  executive officer may hire additional staff to carry out the
  responsibilities of the corporation.
         Sec. 182.060.  TECHNOLOGY POLICY. The board shall implement
  a policy requiring the corporation to use appropriate technological
  solutions to improve the corporation's ability to perform its
  functions. The policy must ensure that the public is able to
  interact with the corporation on the Internet.
         Sec. 182.061.  LIABILITIES OF AUTHORITY. Liabilities
  created by the corporation are not debts or obligations of the
  state, and the corporation may not secure any liability with funds
  or assets of the state except as otherwise provided by law.
         Sec. 182.062.  BOARD MEMBER IMMUNITY. (a)  A board member
  may not be held civilly liable for an act performed, or omission
  made, in good faith in the performance of the member's powers and
  duties under this chapter.
         (b)  A cause of action does not arise against a member of the
  board for an act or omission described by Subsection (a).
  [Sections 182.063-182.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 182.101.  The corporation may:
               (1)  establish statewide health information exchange
  capabilities, including capabilities for electronic laboratory
  results, diagnostic studies, and medication history delivery, and,
  where applicable, promote definitions and standards for electronic
  interactions statewide;
               (2)  seek funding to:
                     (A)  implement, promote, and facilitate the
  voluntary exchange of secure electronic health information between
  and among individuals and entities that are providing or paying for
  health care services or procedures; and
                     (B)  create incentives to implement, promote, and
  facilitate the voluntary exchange of secure electronic health
  information between and among individuals and entities that are
  providing or paying for health care services or procedures;
               (3)  establish statewide health information exchange
  capabilities for streamlining health care administrative functions
  including:
                     (A)  communicating point of care services,
  including laboratory results, diagnostic imaging, and prescription
  histories;
                     (B)  communicating patient identification and
  emergency room required information in conformity with state and
  federal privacy laws;
                     (C)  real-time communication of enrollee status
  in relation to health plan coverage, including enrollee
  cost-sharing responsibilities; and
                     (D)  current census and status of health plan
  contracted providers;
               (4)  support regional health information exchange
  initiatives by:
                     (A)  identifying data and messaging standards for
  health information exchange;
                     (B)  administering programs providing financial
  incentives, including grants and loans for the creation and support
  of regional health information networks, subject to available
  funds;
                     (C)  providing technical expertise where
  appropriate;
                     (D)  sharing intellectual property developed
  under Section 182.105;
                     (E)  waiving the corporation's fees associated
  with intellectual property, data, expertise, and other services or
  materials provided to regional health information exchanges
  operated on a nonprofit basis; and
                     (F)  applying operational and technical standards
  developed by the corporation to existing health information
  exchanges only on a voluntary basis, except for standards related
  to ensuring effective privacy and security of individually
  identifiable health information;
               (5)  identify standards for streamlining health care
  administrative functions across payors and providers, including
  electronic patient registration, communication of enrollment in
  health plans, and information at the point of care regarding
  services covered by health plans; and
               (6)  support the secure, electronic exchange of health
  information through other strategies identified by the board.
         Sec. 182.102.  PROHIBITED ACTS.  (a)  The corporation has no
  authority and shall not engage in any of the following:
               (1)  the collection and analysis of clinical data;
               (2)  the comparison of physicians to other physicians,
  including comparisons to peer group physicians, physician groups,
  and physician teams, and to national specialty society adopted
  quality measurements;
               (3)  the creation of a tool to measure physician
  performance compared to:
                     (A)  peer group physicians on state and specialty
  levels; or
                     (B)  objective standards;
               (4)  the providing of access to aggregated,
  de-identified protected health information to local health
  information exchanges and other users of quality care studies,
  disease management and population health assessments;
               (5)  providing to public health programs trended,
  aggregated, de-identified protected health information to help
  assess the health status of populations and the providing of
  regular reports of trends and important incidence of events to
  public health avenues for intervention, education, and prevention
  programs; or
               (6)  the creation of evidence-based standards for the
  practice of medicine.
         (b)  The corporation has no authority and shall not
  disseminate information, in any manner, to the public that
  compares, rates, tiers, classifies, measures, or ranks a
  physician's performance, efficiency, or quality of practice.
         Sec. 182.103.  PRIVACY OF INFORMATION. (a) Protected
  health information and individually identifiable health
  information collected, assembled, or maintained by the corporation
  is confidential and is not subject to disclosure under Chapter 552,
  Government Code.
         (b)  The corporation shall comply with all state and federal
  laws and rules relating to the transmission of health information,
  including the Health Insurance Portability and Accountability Act
  of 1996 (Pub. L. No. 104-191) and rules adopted under that Act.
         (c)  The corporation shall develop privacy, security,
  operational, and technical standards to assist health information
  networks in the state to ensure effective statewide privacy, data
  security, efficiency, and interoperability across networks. The
  network's standards shall be guided by reference to the standards
  of the Certification Commission for Healthcare Information
  Technology or the Health Information Technology Standards Panel, or
  other federally approved certification standards, that exist on May
  1, 2007, as to the process of implementation, acquisition, upgrade,
  or installation of electronic health information technology.
         Sec. 182.104.  SECURITY COMPLIANCE. The corporation shall:
               (1)  establish appropriate security standards to
  protect both the transmission and the receipt of individually
  identifiable health information or health care data;
               (2)  establish appropriate security standards to
  protect access to any individually identifiable health information
  or health care data collected, assembled, or maintained by the
  corporation;
               (3)  establish the highest levels of security and
  protection for access to and control of individually identifiable
  health information, including mental health care data and data
  relating to specific disease status, that is governed by more
  stringent state or federal privacy laws; and
               (4)  establish policies and procedures for the
  corporation for taking disciplinary actions against a board member,
  employee, or other person with access to individually identifiable
  health care information that violates state or federal privacy laws
  related to health care information or data maintained by the
  corporation.
         Sec. 182.105.  INTELLECTUAL PROPERTY. The corporation shall
  take commercially reasonable measures to protect its intellectual
  property, including obtaining patents, trademarks, and copyrights
  where appropriate.
         Sec. 182.106.  ANNUAL REPORT. The corporation shall submit
  an annual report to the governor, the lieutenant governor, the
  speaker of the house of representatives, and the appropriate
  oversight committee in the senate and the house of representatives.
  The annual report must include financial information and a progress
  update on the corporation's efforts to carry out its mission.
         Sec. 182.107.  FUNDING. (a) The corporation may be funded
  through the General Appropriations Act and may request, accept, and
  use gifts and grants as necessary to implement its functions.
         (b)  The corporation may assess transaction, convenience, or
  subscription fees to cover costs associated with implementing its
  functions. All fees must be voluntary but receipt of services
  provided by the corporation may be conditioned on payment of fees.
         (c)  The corporation may participate in other
  revenue-generating activities that are consistent with the
  corporation's purposes.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1066 was passed by the House on May 9,
  2007, by the following vote:  Yeas 134, Nays 1, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1066 on May 25, 2007, by the following vote:  Yeas 139, Nays 4,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1066 was passed by the Senate, with
  amendments, on May 23, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor