S.B. No. 2423

	AN ACT
	relating to the transfer or sale of patient information or
	prescription drug history by discount health care programs;
	providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subdivisions (3) and (4), Section 76.001, Health
	and Safety Code, are amended to read as follows:
	(3)  "Discount health care program" means a business
	arrangement or contract in which an entity, in exchange for fees,
	dues, charges, or other consideration, offers its members access to
	discounts on health care services provided by health care
	providers. The term does not include an insurance policy,
	certificate of coverage, or other product regulated by the Texas
	Department of Insurance or a self-funded or self-insured employee
	benefit plan. For purposes of this subsection, consideration
	includes patient information or patient prescription drug history
	provided by members, if the entity engages in the transfer or sale
	of such patient information, patient prescription drug history, or
	drug manufacturer rebates.
	(4)  "Discount health care program operator" means a
	person who, in exchange for fees, dues, charges, or other
	consideration, operates a discount health care program and
	contracts with providers, provider networks, or other discount
	health care program operators to offer access to health care
	services at a discount and determines the charge to members. For
	purposes of this subsection, consideration includes patient
	information or patient prescription drug history provided by
	members, if the person engages in the transfer or sale of such
	patient information, patient prescription drug history, or drug
	manufacturer rebates.
	SECTION 2.  Section 76.053, Health and Safety Code, is
	amended by adding Subsection (a-1) and amending Subsection (b) to
	read as follows:
	(a-1)  If a program operator engages in the transfer or sale
	of a member's patient information or patient prescription drug
	history, the program operator shall, before enrollment, provide
	each prospective member disclosure materials describing the
	program operator's practices regarding such transfer or sale.
	(b)  A marketer shall use disclosure materials that comply
	with this section [Subsection (a)].
	SECTION 3.  Title 21, Insurance Code, is amended by adding
	Chapter 7002 to read as follows:
	CHAPTER 7002. SUPPLEMENTAL PROVISIONS RELATING TO DISCOUNT HEALTH
	CARE OPERATORS
	Sec. 7002.001.  DEFINITION. For purposes of Chapters 562
	and 7001, Insurance Code, consideration provided to a discount
	health care program or a discount health care program operator
	includes patient information or patient prescription drug history
	provided by members, if the entity engages in the transfer or sale
	of such patient information, patient prescription drug history, or
	drug manufacturer rebates.
	Sec. 7002.002.  REQUIRED DISCLOSURE. If a discount health
	care program operator engages in the transfer or sale of a member's
	patient information or patient prescription drug history, the
	program operator shall, before enrollment, provide each
	prospective member disclosure materials describing the program
	operator's practices regarding such transfer or sale.
	Sec. 7002.003.  VIOLATION; PENALTIES. A violation of this
	chapter may be enforced in the same manner as a violation of Chapter
	562 or 7001.
	SECTION 4.  (a)  Sections 1 and 2 of this Act take effect
	only if House Bill No. 4341 or Senate Bill No. 2339, Acts of the 81st
	Legislature, Regular Session, 2009, or another Act of the 81st
	Legislature, Regular Session, 2009, enacting Chapter 562 and Title
	21, Insurance Code, concerning discount health care programs is not
	enacted or does not become law.
	(b)  Section 3 of this Act takes effect only if House Bill No.
	4341 or Senate Bill No. 2339, Acts of the 81st Legislature, Regular
	Session, 2009, or another Act of the 81st Legislature, Regular
	Session, 2009, enacting Chapter 562 and Title 21, Insurance Code,
	concerning discount health care programs is enacted and becomes
	law.
	SECTION 5.  This Act takes effect September 1, 2009.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 2423 passed the Senate on
	May 1, 2009, by the following vote:  Yeas 31, Nays 0;
	May 21, 2009, Senate refused to concur in House amendments and
	requested appointment of Conference Committee; May 23, 2009, House
	granted request of the Senate; May 30, 2009, Senate adopted
	Conference Committee Report by the following vote:  Yeas 31,
	Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 2423 passed the House, with
	amendments, on May 15, 2009, by the following vote:  Yeas 144,
	Nays 0, one present not voting; May 23, 2009, House granted request
	of the Senate for appointment of Conference Committee;
	May 28, 2009, House adopted Conference Committee Report by the
	following vote:  Yeas 141, Nays 0, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor