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Fifth Substitute S.B. 61

Senator Michael G. Waddoups proposes the following substitute bill:


             1     
PRIVATELY OWNED HEALTH CARE ORGANIZATION TASK FORCE

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Michael G. Waddoups

             5      D. Chris Buttars
             6      Gene Davis
             7      Mike Dmitrich
             8      Dan R. Eastman
             9      Beverly Ann EvansThomas V. Hatch
Parley G. Hellewell
Scott K. Jenkins
Sheldon L. Killpack
Peter C. KnudsonMark B. Madsen
Ed Mayne
Darin G. Peterson
Howard A. Stephenson
David L. Thomas              10     
             11      LONG TITLE
             12      General Description:
             13          This bill creates the Privately Owned Health Care Organization Task Force.
             14      Highlighted Provisions:
             15          This bill:
             16          .    establishes a legislative task force to study:
             17              .    market penetration, geographic distribution, and contracting arrangements of
             18      integrated health care systems in the health insurance and health care markets in
             19      the state;
             20              .    the impact of divestiture of integrated health care systems in the health care
             21      market in the state;
             22              .    state policies that promote fair and appropriate competition in the health care
             23      market, including the adequacy and application of antitrust provisions to health
             24      care organizations;
             25              .    business and financial practices of health care organizations and how they may
             26      impede or enhance a fair and competitive health care market place and impact


             27      consumers;
             28              .    the tax exempt status of nonprofit health care organizations;
             29              .    the statutory definition of charitable care;
             30              .    the contracting practices of health care organizations that promote cost-effective
             31      health care;
             32              .    the need for consumer protections from health care provider conflicts of
             33      interest; and
             34              .    the impact of proliferation of medical technology and facilities; and
             35          .    provides an exception to the Open and Public Meetings Act which permits the task
             36      force to close a meeting for the purpose of a discussing a record which is a trade
             37      secret or contains commercial information and is designated as a protected record
             38      under the Government Records Access and Management Act.
             39      Monies Appropriated in this Bill:
             40          This bill appropriates:
             41          .    $6,000 to the Senate for fiscal years 2004-05 and 2005-06;
             42          .    $9,000 to the House of Representatives for fiscal years 2004-05 and 2005-06; and
             43          .    $400,000 to the Office of Legislative Research and General Counsel for fiscal year
             44      2004-05 only, for the purpose of providing economic and actuarial services to the
             45      task force.
             46      Other Special Clauses:
             47          This bill provides an immediate effective date.
             48          This bill is repealed on November 30, 2006.
             49      Uncodified Material Affected:
             50      ENACTS UNCODIFIED MATERIAL
             51     
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Privately Owned Health Care Organization Task Force -- Creation --
             54      Membership -- Interim rules followed -- Compensation -- Staff.
             55          (1) There is created the Privately Owned Health Care Organization Task Force
             56      consisting of the following 15 members:
             57          (a) six members of the Senate appointed by the president of the Senate, no more than


             58      four of whom may be from the same political party; and
             59          (b) nine members of the House of Representatives appointed by the speaker of the
             60      House of Representatives, no more than seven of whom may be from the same political party.
             61          (2) (a) The president of the Senate shall designate a member of the Senate appointed
             62      under Subsection (1)(a) as a cochair of the task force.
             63          (b) The speaker of the House of Representatives shall designate a member of the House
             64      of Representatives appointed under Subsection (1)(b) as a cochair of the task force.
             65          (3) In conducting its business, the task force shall comply with the rules of legislative
             66      interim committees.
             67          (4) Salaries and expenses of the members of the task force shall be paid in accordance
             68      with Section 36-2-2 and Legislative Joint Rule 15.03.
             69          (5) The Office of Legislative Research and General Counsel shall provide staff support
             70      to the task force, and may, as permitted by the availability of funds, in consultation with the
             71      task force, contract with an economist, a financial analyst, and an actuary for services to the
             72      task force.
             73          Section 2. Duties -- Interim report.
             74          (1) The task force shall review and make recommendations on the following issues:
             75          (a) market penetration, geographic distribution, and contracting arrangements of
             76      integrated health care systems in the health insurance and health care markets in the state;
             77          (b) the impact of divestiture of integrated health care systems in the health care market
             78      in the state;
             79          (c) state policies that promote fair and appropriate competition in the health care
             80      market, including the adequacy and application of antitrust provisions to health care
             81      organizations;
             82          (d) business and financial practices of health care organizations and how they may
             83      impede or enhance a fair and competitive health care market place and impact consumers;
             84          (e) the tax exempt status of nonprofit health care organizations;
             85          (f) the statutory definition of charitable care;
             86          (g) the contracting practices of health care organizations that promote cost-effective
             87      health care;
             88          (h) the need for consumer protections from health care provider conflicts of interest;


             89      and
             90          (i) the impact of proliferation of medical technology and facilities.
             91          (2) Notwithstanding the provisions of Section 52-4-5 , the task force may close a
             92      meeting to review or discuss a record which is:
             93          (a) a trade secret; or
             94          (b) contains commercial information; and
             95          (c) is classified as a protected record under Section 63-2-304 .
             96          (3) (a) An initial report shall be made to the Business and Labor Interim Committee
             97      and Revenue and Taxation Interim Committee by November 30, 2005.
             98          (b) A final report, including any proposed legislation, shall be presented to the
             99      Business and Labor Interim Committee and Revenue and Taxation Interim Committee before
             100      November 30, 2006.
             101          Section 3. Appropriation.
             102          (1) There is appropriated from the General Fund for fiscal year 2004-05 only:
             103          (a) $6,000 to the Senate to pay for the compensation and expenses of senators on the
             104      task force; and
             105          (b) $ 9,000 to the House of Representatives to pay for the compensation and expenses
             106      of representatives on the task force.
             107          (2) There is appropriated from the General Fund for fiscal year 2005-06 only:
             108          (a) $6,000 to the Senate to pay for the compensation and expenses of senators on the
             109      task force; and
             110          (b) $ 9,000 to the House of Representatives to pay for the compensation and expenses
             111      of representatives on the task force.
             112          (3) There is appropriated from the General Fund for fiscal year 2004-05 only, $400,000
             113      to the Office of Legislative Research and General Counsel to pay for staffing the task force
             114      with appropriate economic, financial, and actuary services.
             115          Section 4. Effective date.
             116          If approved by two-thirds of all the members elected to each house, this bill takes effect
             117      upon approval by the governor, or the day following the constitutional time limit of Utah
             118      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             119      the date of veto override.


             120          Section 5. Repeal date.
             121          This bill is repealed on November 30, 2006.


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