H.B. No. 1015
AN ACT
relating to the continuation and functions of the Texas State Board 
of Examiners of Psychologists.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 501.005, Occupations Code, is amended to 
read as follows:
	Sec. 501.005.  APPLICATION OF SUNSET ACT.  The Texas State 
Board of Examiners of Psychologists is subject to Chapter 325, 
Government Code (Texas Sunset Act). Unless continued in existence 
as provided by that chapter, the board is abolished and this chapter 
expires September 1, 2017 [2005].
	SECTION 2.  Section 501.052, Occupations Code, is amended to 
read as follows:
	Sec. 501.052.  ELIGIBILITY OF PUBLIC MEMBERS.  A person is 
not eligible for appointment as a public member of the board if:
		(1)  the person [or the person's spouse:              
		[(1)]  is registered, certified, or licensed by an 
occupational regulatory agency in the field of health services;
		(2)  the person's spouse is registered, certified, or 
licensed by an occupational regulatory agency in the field of 
mental health; or
		(3)  the person or the person's spouse:                                
			(A)  is employed by or participates in the 
management of a business entity or other organization regulated by 
the board or receiving funds from the board;
			(B) [(3)]  owns or controls, directly or 
indirectly, more than a 10 percent interest in a business entity or 
other organization regulated by the board or receiving funds from 
the board; or
			(C) [(4)]  uses or receives a substantial amount 
of tangible goods, services, or funds from the board, other than 
compensation or reimbursement authorized by law for board 
membership, attendance, or expenses.
	SECTION 3.  Section 501.053, Occupations Code, is amended to 
read as follows:
	Sec. 501.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a) In 
this section, "Texas trade association" means a [nonprofit,] 
cooperative[,] and voluntarily joined statewide association of 
business or professional competitors in this state designed to 
assist its members and its industry or profession in dealing with 
mutual business or professional problems and in promoting their 
common interest.
	(b)  A person [An officer, employee, or paid consultant of a 
Texas trade association in the field of health services] may not be 
a member [or employee] of the board and may not be a board employee 
employed in a "bona fide executive, administrative, or professional 
capacity," as that phrase is used for purposes of establishing an 
exemption to the overtime provisions of the federal Fair Labor 
Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
		(1)  the person is an officer, employee, or paid 
consultant of a Texas trade association in the field of health 
services; or
		(2)  the person's spouse is an officer, manager, or paid 
consultant of a Texas trade association in the field of mental 
health [who is exempt from the state's position classification plan 
or is compensated at or above the amount prescribed by the General 
Appropriations Act for step 1, salary group A17, of the position 
classification salary schedule].
	(c)  [A person who is the spouse of an officer, manager, or 
paid consultant of a Texas trade association in the field of health 
services may not be a board member and may not be an employee of the 
board who is exempt from the state's position classification plan 
or is compensated at or above the amount prescribed by the General 
Appropriations Act for step 1, salary group A17, of the position 
classification salary schedule.
	[(d)]  A person may not be [serve as] a member of the board or 
act as the general counsel to the board if the person 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 related to the operation of the board.
	SECTION 4.  Sections 501.055(a) and (c), Occupations Code, 
are amended to read as follows:
	(a)  It is a ground for removal from the board that a member:                  
		(1)  does not have at the time of taking office
[appointment] the qualifications required by Sections 501.051 and 
501.052;
		(2)  does not maintain during [the member's] service on 
the board the qualifications required by Sections 501.051 and 
501.052;
		(3)  is ineligible for membership under [violates a 
prohibition established by] Section 501.053;
		(4)  cannot, because of illness or disability, 
discharge the member's duties for a substantial part of the member's 
term; or
		(5)  is absent from more than half of the regularly 
scheduled board meetings that the member is eligible to attend 
during a calendar year without an excuse approved [, unless the 
absence is excused] by a majority vote of the board.
	(c)  If the executive director has knowledge that a potential 
ground for removal exists [may exist], the executive director shall 
notify the presiding officer of the board of the potential ground.  
The presiding officer [On a determination that a potential ground 
for removal exists, the board] shall then notify the governor and 
the attorney general that a potential ground for removal exists.  If 
the potential ground for removal involves the presiding officer, 
the executive director shall notify the next highest ranking 
officer of the board, who shall then notify the governor and the 
attorney general that a potential ground for removal exists.
	SECTION 5.  Section 501.057(a), Occupations Code, is amended 
to read as follows:
	(a)  The governor shall designate a member of the board as 
the presiding officer of the board to serve in that capacity at the 
pleasure of the governor. The board shall hold an annual meeting 
during which the board shall select from its members [a presiding 
officer and] an assistant presiding officer.
	SECTION 6.  Section 501.059, Occupations Code, is amended to 
read as follows:
	Sec. 501.059.  TRAINING PROGRAM FOR MEMBERS.  (a)  A person 
who is appointed to and qualifies for office as [Before] a [board] 
member of the board may not vote, deliberate, or be counted as a 
member in attendance at a meeting of [assume the member's duties or 
be confirmed by the senate, the member must complete at least one 
course of the training program established by] the board until the 
person completes a training program that complies with [under] this 
section.
	(b)  The training program must provide the person with
information [to a participant] regarding:
		(1)  this chapter and the programs, functions, rules, 
and budget of the board;
		(2)  [the programs operated by the board;                    
		[(3)  the role and functions of the board;                   
		[(4)  the rules of the board, with an emphasis on the 
rules that relate to disciplinary and investigatory authority;
		[(5)  the current budget for the board;                      
		[(6)]  the results of the most recent formal audit of 
the board;
		(3) [(7)]  the requirements of laws relating to open 
meetings, public information, administrative procedure, and 
conflicts of interest [Chapters 551, 552, and 2001, Government 
Code;
		[(8)  the requirements of the conflict of interest laws 
and other laws relating to public officials]; and
		(4) [(9)]  any applicable ethics policies adopted by 
the board or the Texas Ethics Commission.
	(c)  A person appointed to the board is entitled to 
reimbursement, as provided by the General Appropriations Act, for 
the travel expenses incurred in attending the training program 
regardless of whether the attendance at the program occurs before 
or after the person qualifies for office. [In developing the 
program, the board shall consult with the governor, attorney 
general, and Texas Ethics Commission.
	[(d)  If another state agency or entity is authorized to 
establish the training requirements for board members, the board 
shall adopt that training instead of developing its own program.]
	SECTION 7.  Section 501.103, Occupations Code, is amended to 
read as follows:
	Sec. 501.103.  DIVISION OF RESPONSIBILITIES.  The board 
shall develop and implement policies that clearly separate [define] 
the policymaking [respective] responsibilities of the board and the 
management responsibilities of the executive director and the staff 
of the board.
	SECTION 8.  Subchapter D, Chapter 501, Occupations Code, is 
amended by adding Section 501.160 to read as follows:
	Sec. 501.160.  USE OF TECHNOLOGY.  The board shall implement 
a policy requiring the use of appropriate technological solutions 
to improve the board's ability to perform its functions.  The policy 
must ensure that the public is able to interact with the board on 
the Internet.
	SECTION 9.  Subchapter D, Chapter 501, Occupations Code, is 
amended by adding Section 501.161 to read as follows:
	Sec. 501.161.  NEGOTIATED RULEMAKING AND ALTERNATIVE 
DISPUTE RESOLUTION.  (a)  The board shall develop and implement a 
policy to encourage the use of:
		(1)  negotiated rulemaking procedures under Chapter 
2008, Government Code, for the adoption of board rules; and
		(2)  appropriate alternative dispute resolution 
procedures under Chapter 2009, Government Code, to assist in the 
resolution of internal and external disputes under the board's 
jurisdiction.
	(b)  The board's procedures relating to alternative dispute 
resolution must conform, to the extent possible, to any model 
guidelines issued by the State Office of Administrative Hearings 
for the use of alternative dispute resolution by state agencies.
	(c)  The board shall designate a trained person to:                     
		(1)  coordinate the implementation of the policy 
adopted under Subsection (a);
		(2)  serve as a resource for any training needed to 
implement the procedures for negotiated rulemaking or alternative 
dispute resolution; and
		(3)  collect data concerning the effectiveness of those 
procedures, as implemented by the board.
	SECTION 10.  Subchapter D, Chapter 501, Occupations Code, is 
amended by adding Section 501.162 to read as follows:
	Sec. 501.162.  DEVELOPMENT OF PROPOSED RULES.  (a)  This 
section applies to the process by which the board develops proposed 
rules before the proposed rules are published in the Texas Register 
and before the board complies with the rulemaking requirements of 
the administrative procedure law, Chapter 2001, Government Code.  
This section does not affect the duty of the board to comply with 
the rulemaking requirements of that law.
	(b)  The board shall establish methods under which the board, 
to the extent appropriate, will seek input early in the rule 
development process from the public and from persons who will be 
most affected by a proposed rule.  Methods shall include 
identifying persons who will be most affected and soliciting, at a 
minimum, the advice and opinions of those persons.
	(c)  Methods may include negotiated rulemaking, informal 
conferences, advisory committees, and any other appropriate 
method.
	(d)  A rule adopted by the board may not be challenged on the 
grounds that the board did not comply with this section.  If the 
board was unable to solicit a significant amount of advice and 
opinion from the public or from affected persons early in the rule 
development process, the board shall state in writing the reasons 
why the board was unable to do so.
	SECTION 11.  Section 501.201(a), Occupations Code, is 
amended to read as follows:
	(a)  The board shall prepare information of public interest 
describing the functions of the board [and the procedures by which 
complaints are filed with and resolved by the board].
	SECTION 12.  Section 501.203, Occupations Code, is amended 
to read as follows:
	Sec. 501.203.  INFORMATION ABOUT COMPLAINT ACTIONS [RECORDS 
OF COMPLAINTS].  (a)  The board shall maintain a system to promptly 
and efficiently act on complaints filed with the board.  The board 
shall maintain information about parties to a complaint, the 
subject matter of the complaint, a summary of the results of the 
review or investigation of the complaint, and the disposition of 
the complaint [keep an information file about each complaint 
relating to a license holder filed with the board.  The information 
file must be kept current and contain a record for each complaint 
of:
		[(1)  each person contacted regarding the complaint;         
		[(2)  a summary of findings made at each step of the 
complaint process;
		[(3)  an explanation of the legal basis and reason for 
dismissing a complaint;
		[(4)  the schedule established for the complaint under 
Section 501.204 and a notation of any change in the schedule; and
		[(5)  other relevant information].                           
	(b)  The board shall make information available describing 
its procedures for complaint investigation and resolution.
	(c)  The board shall periodically notify the complaint 
parties of the status of the complaint [If a written complaint is 
filed with the board that the board has authority to resolve, the 
board, at least quarterly and] until final disposition [of the 
complaint, shall notify the parties to the complaint of the status 
of the complaint unless the notice would jeopardize an undercover 
investigation].
	(d)  The board shall analyze complaints filed with the board 
to identify any trends or issues related to certain violations, 
including:
		(1)  the reason for each complaint;                                    
		(2)  how each complaint was resolved; and                              
		(3)  the subject matter of each complaint that was not 
within the jurisdiction of the board and how the board responded to 
the complaint.
	SECTION 13.  Section 501.204, Occupations Code, is amended 
by adding Subsection (e) to read as follows:
	(e)  The board shall assign priorities and investigate 
complaints based on:
		(1)  the severity of the conduct alleged in the 
complaint; and       
		(2)  the degree of harm to public health and safety.                   
	SECTION 14.  Section 501.253, Occupations Code, is amended 
by amending Subsection (b) and adding Subsections (e) and (f) to 
read as follows:
	(b)  A provisional license holder is entitled to practice 
psychology under the supervision of a psychologist to meet the 
requirements for issuance of a license under Section 501.252.  A 
provisional license holder who is licensed in another state to 
independently practice psychology and is in good standing in that 
state and who seeks a license in this state is entitled to practice 
psychology without the supervision of a psychologist during the 
time that the board is processing the person's application for a 
license.
	(e)  The board may not restrict the issuance of a license or 
provisional license to an applicant who is licensed in another 
state to independently practice psychology and is in good standing 
in that state based on the number of years the applicant has been 
licensed in good standing in that state.
	(f)  If an applicant who is licensed in another state to 
independently practice psychology and is in good standing in that 
state presents credentials from a national accreditation 
organization to the board and the board determines that the 
requirements for obtaining those credentials from that 
organization are sufficient to protect the public, the board may 
issue a provisional license to the applicant.  An applicant who 
obtains a provisional license under this subsection must have 
passed the examination described by Section 501.256(b)(2).
	SECTION 15.  Section 501.256, Occupations Code, is amended 
by amending Subsection (c) and adding Subsections (f) and (g) to 
read as follows:
	(c)  The board may waive the discipline and professional 
segment of the examination requirement for an applicant who:
		(1)  is a specialist [diplomate] of the American Board 
of Professional Psychology; or
		(2)  in the board's judgment, has demonstrated 
competence in the areas covered by the examination.
	(f)  On the oral examination administered under this section 
the board may only assess knowledge of psychological principles and 
techniques, applicable laws and regulations, and ethical 
principles.  The board may not assess personal characteristics 
through the oral examination.
	(g)  For purposes of the oral examination, the board shall by 
rule clearly define the standards used by the board to determine 
whether a person has demonstrated sufficient entry-level knowledge 
of the practice of psychology to have passed the examination.
	SECTION 16.  Subchapter F, Chapter 501, Occupations Code, is 
amended by adding Section 501.2561 to read as follows:
	Sec. 501.2561.  EVALUATION OF ORAL EXAMINATION.  (a)  The 
board by rule shall establish a work group to evaluate the oral 
examination for the purpose of improving the consistency of the 
administration and the objectivity of the examination.  The work 
group must include persons interested in or affected by the 
regulation of the practice of psychology under this chapter, 
including faculty members of college or university psychology 
departments and licensees with varying levels of experience.  The 
work group shall:
		(1)  review audiotapes of passed and failed 
examinations;            
		(2)  review analyses of the performance of persons who 
failed the examination provided under Section 501.256(e);
		(3)  assess scoring criteria and clinical scenarios 
used in the administration of the examination;
		(4)  recommend improvements to standardize the 
administration of the examination; and
		(5)  conduct other appropriate tasks.                                  
	(b)  Members of the board may not participate in the 
evaluation of the oral examination but may otherwise participate in 
the work group.
	(c)  The work group shall report biennially to the board the 
group's recommendations for improving the consistency of the 
administration and the objectivity of the oral examination.  The 
board shall modify the oral examination, as necessary, based on the 
work group's recommendations before the next administration of the 
oral examination.
	SECTION 17.  Section 501.259(a), Occupations Code, is 
amended to read as follows:
	(a)  The board[, with the advice of the Psychological 
Associate Advisory Committee,] shall set standards for the issuance 
of licenses to psychological personnel who hold a master's degree 
from an accredited university or college in a program that is 
primarily psychological in nature.
	SECTION 18.  Sections 501.263(a) and (b), Occupations Code, 
are amended to read as follows:
	(a)  The board may issue a temporary license to an applicant 
seeking to practice in this state for a limited time and limited 
purpose [a permanent license, including a person seeking a license 
by reciprocity under Section 501.262,] if the applicant:
		(1)  pays the required application fee;                                       
		(2)  submits an application to the board in the form 
prescribed by the board;
		(3)  is licensed, certified, or registered as a 
psychologist or psychological associate by another state having 
requirements substantially equal to those prescribed by this 
chapter;
		(4)  is in good standing with the regulatory agency of 
the jurisdiction in which the person is licensed, certified, or 
registered;
		(5)  is supervised by a person licensed by the board 
under this chapter with whom the temporary license holder may 
consult during the time the person holds a temporary license; and
		(6) [(5)]  has passed an examination recognized by the 
board as equivalent to the examination required by the board for a 
permanent license under this chapter.
	(b)  A temporary license is valid only for the period 
specified by the board and for the limited purpose approved by the 
board [until the earlier of:
		[(1)  the date the board approves or denies the 
temporary license holder's application for a permanent license; or
		[(2)  the first anniversary of the date the board 
issues the temporary license if no action is taken by the board].
	SECTION 19.  Section 501.304, Occupations Code, is amended 
by adding Subsection (e) to read as follows:
	(e)  The process developed under Subsection (c)(1) may 
include a process under which the board evaluates and approves 
appropriate courses for the continuing education program that are 
developed or approved for license holders by national and state 
associations that represent license holders, by other mental health 
professional associations, and by institutions of higher 
education.
	SECTION 20.  Section 501.404, Occupations Code, is amended 
to read as follows:
	Sec. 501.404.  SCHEDULE OF SANCTIONS.  (a)  The board by rule 
shall adopt a [broad] schedule of the disciplinary sanctions that 
the board may impose under this chapter.  In adopting the schedule 
of sanctions, the board shall ensure that the severity of the 
sanction imposed is appropriate to the type of violation or conduct 
that is the basis for disciplinary action [for violations under 
this chapter].
	(b)  In determining the appropriate disciplinary action, 
including the amount of any administrative penalty to assess, the 
board shall consider whether the person:
		(1)  is being disciplined for multiple violations of 
either this chapter or a rule or order adopted under this chapter; 
or
		(2)  has previously been the subject of disciplinary 
action by the board.
	(c)  In the case of a person described by:                              
		(1)  Subsection (b)(1), the board shall consider taking 
a more severe disciplinary action, including revocation of the 
person's license, than the disciplinary action that would be taken 
for a single violation; and
		(2)  Subsection (b)(2), the board shall consider taking 
a more severe disciplinary action, including revocation of the 
person's license, than the disciplinary action that would be taken 
for a person who has not previously been the subject of disciplinary 
action by the board.
	(d)  The State Office of Administrative Hearings shall use 
the schedule for any sanction imposed as the result of a hearing 
conducted by that office.
	SECTION 21.  Section 501.410(b), Occupations Code, is 
amended to read as follows:
	(b)  Rules adopted under Subsection (a) must:                                  
		(1)  provide the complainant and the license holder an 
opportunity to be heard; [and]
		(2)  require the presence of a member of the board's 
legal staff, if the board has a legal staff, or, if the board does 
not have a legal staff, a representative of the attorney general's 
office to advise the board or board employees; and
		(3)  require the presence of at least one public member 
of the board.
	SECTION 22.  Subchapter K, Chapter 501, Occupations Code, is 
amended by adding Section 501.505 to read as follows:
	Sec. 501.505.  OPTION TO ORDER REFUND.  (a)  Under an 
agreement resulting from an informal settlement conference,  the 
board may order a license holder to refund to the person who paid 
for the psychological services at issue an amount not to exceed the 
amount the person paid to the license holder for a service regulated 
by this chapter instead of or in addition to imposing an 
administrative penalty under this chapter.
	(b)  The board may not include an estimation of other damages 
or harm in a refund order.
	SECTION 23.  Article 60.061(a), Code of Criminal Procedure, 
is amended to read as follows:
	(a)  The Texas State Board of Medical Examiners, the Texas 
State Board of Podiatric Medical Examiners, the State Board of 
Dental Examiners, the Texas State Board of Pharmacy, the Texas 
State Board of Examiners of Psychologists, and the State Board of 
Veterinary Medical Examiners shall provide to the Department of 
Public Safety through electronic means, magnetic tape, or disk, as 
specified by the department, a list including the name, date of 
birth, and any other personal descriptive information required by 
the department for each person licensed by the respective agency.  
Each agency shall update this information and submit to the 
Department of Public Safety the updated information quarterly.
	SECTION 24.  Subchapter H, Chapter 501, Occupations Code, is 
repealed.       
	SECTION 25.  The Psychological Associate Advisory Committee 
is abolished.    
	SECTION 26.  The changes in law made by this Act to Section 
501.053, Occupations Code, do not affect the entitlement of a 
member serving on the Texas State Board of Examiners of 
Psychologists immediately before September 1, 2005, to continue to 
serve and function as a member of the Texas State Board of Examiners 
of Psychologists for the remainder of the term the member is serving 
on that date.  Those changes in law apply only to a member appointed 
on or after September 1, 2005.
	SECTION 27.  The work group established under Section 
501.2561, Occupations Code, as added by this Act, shall submit the 
group's first report to the Texas State Board of Examiners of 
Psychologists in time for the board to make necessary modifications 
to the oral examination that will be administered in January 2007.
	SECTION 28.  This Act takes effect September 1, 2005.                          
______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      
	I certify that H.B. No. 1015 was passed by the House on April 
19, 2005, by a non-record vote.
                                                  ______________________________
                                                     Chief Clerk of the House   
	I certify that H.B. No. 1015 was passed by the Senate on May 
12, 2005, by the following vote:  Yeas 31, Nays 0.
                                                  ______________________________
                                                     Secretary of the Senate    
APPROVED:  _____________________                                            
 
                   Date                                                      
 
          _____________________                                          
 
                 Governor