By McDonald                                            H.B. No. 756
          Substitute the following for H.B. No. 756:
          By McDonald                                        C.S.H.B. No. 756
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of the practice of professional nursing.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 2, Chapter 570, Acts of the 70th
    1-5  Legislature, Regular Session, 1987 (Article 4525a, Vernon's Texas
    1-6  Civil Statutes), is amended by amending Secs.  1, 2, 3, and 4 to
    1-7  read as follows; adding new Secs. 1, 3 and 18 to read as follows;
    1-8  and renumbering the current sections accordingly.
    1-9        Sec. 1.  The board shall adopt rules governing reporting
   1-10  required under this article to minimize unnecessary duplicative
   1-11  reporting and the reporting of minor incidents.  A "minor incident"
   1-12  means conduct that does not indicate the nurse's continuing to
   1-13  practice professional nursing poses a risk of harm to a client or
   1-14  other person.
   1-15        Sec. 2 <1>.  Each registered nurse having reasonable cause to
   1-16  suspect that a registered nurse has exposed or is likely to expose
   1-17  a patient or other person unnecessarily to a risk of harm <because
   1-18  of>, engaged in unprofessional conduct or failed<, failure to care
   1-19  adequately for a patient, failure> to conform to the minimum
   1-20  standards of acceptable professional nursing practice, or that a
   1-21  registered nurse's practice is or is likely to be impaired by
   1-22  chemical dependency <impaired status> shall report in a signed,
   1-23  written report to the board the identity <name> of the nurse
    2-1  <committing the violation or suspected violation> and such
    2-2  additional <any other pertinent> information <within the nurse's
    2-3  knowledge> as the board may require.  <A registered nurse without
    2-4  personal knowledge of the nurse's actions is not required to report
    2-5  under this section if she or he has reasonable cause to believe the
    2-6  nurse has already been reported.>
    2-7        Sec. 3.  Each Professional Nursing Peer Review Committee that
    2-8  finds a registered nurse exposed or is likely to expose a patient
    2-9  or other person unnecessarily to a risk of harm, engaged in
   2-10  unprofessional conduct or failed to conform to the minimum
   2-11  standards of acceptable professional nursing practice, or that a
   2-12  registered nurse's practice is or is likely  to be impaired by
   2-13  chemical dependency shall report in a signed, written report to the
   2-14  board the identity of the nurse and such additional information as
   2-15  the board may require.  The report shall include what corrective
   2-16  action was taken against the nurse and whether the committee
   2-17  recommends the board take formal disciplinary action against the
   2-18  nurse.
   2-19        Sec. 4 <2>.   (a)  Each hospital, health science center,
   2-20  nursing home, home health agency, other health-care facility, state
   2-21  agency, political subdivision, school of professional nursing,
   2-22  temporary nursing service, or person that employs, hires, or
   2-23  contracts for the services of registered nurses that terminates,
   2-24  suspends for more than 7 days, or takes other substantive
   2-25  disciplinary action as defined by the board against a registered
    3-1  nurse because the registered nurse has exposed or is likely to
    3-2  expose a patient or other person <was exposed or is likely to be
    3-3  exposed> unnecessarily to a risk of harm <because of> the
    3-4  registered nurse engaged in unprofessional conduct<, failure to
    3-5  care adequately for a patient, failure> or failed to conform to the
    3-6  minimum standards of acceptable professional nursing practice, or
    3-7  because the registered nurse's practice is or is likely to be
    3-8  impaired by chemical dependency <impaired status> shall report in
    3-9  writing to the board the identity <name> of the nurse and such
   3-10  additional information as the board may require <other pertinent
   3-11  information within the knowledge of the facility, agency, school,
   3-12  or person>.
   3-13        (b)  Each hospital, nursing home, health science center, home
   3-14  health agency, other health-care facility, state agency, political
   3-15  subdivision, school of professional nursing, temporary nursing
   3-16  service, or person that regularly employs, hires, or otherwise
   3-17  contracts for the services of 10 or more registered nurses shall
   3-18  develop a written plan for identifying and reporting registered
   3-19  nurses in its service who expose or are likely to expose patients
   3-20  or other persons unnecessarily to a risk of harm <because of>,
   3-21  engage in unprofessional conduct<, failure to care adequately for a
   3-22  patient, failure> or fail to conform to the minimum standards of
   3-23  acceptable professional nursing practice, or whose practice is or
   3-24  is likely to be impaired by chemical dependency <impaired status>.
   3-25  The plan must include an appropriate process for the review of any
    4-1  incident reportable under this section by a professional nursing
    4-2  peer review committee established and operated under Article 4525b,
    4-3  Revised Statutes, and for the affected nurse to submit rebuttal
    4-4  information to that committee.  The board shall enter into
    4-5  memoranda of understanding with any state agency that licenses,
    4-6  registers, or certifies health-care facilities or agencies or
    4-7  surveys such facilities or agencies with respect to professional
    4-8  nursing care as to how that state agency can promote compliance
    4-9  with this subsection.
   4-10        (c)  The requirement that a report to the board be reviewed
   4-11  by a professional nursing peer review committee applies only to a
   4-12  required report, and review by the peer review committee is only
   4-13  advisory.  The requirement may not be construed as subjecting an
   4-14  employer's or other person's administrative decision to discipline
   4-15  a registered nurse to the peer review process or as preventing an
   4-16  employer or other person from taking disciplinary action before
   4-17  review by the peer review committee is conducted.  The review by
   4-18  the peer review committee established under Subsection (b) of this
   4-19  section must include a determination as to whether or not the nurse
   4-20  undergoing review <engaged in conduct that> exposed or was likely
   4-21  to expose a patient or other person unnecessarily to risk of harm
   4-22  <because of>, engaged in unprofessional conduct<, failure to care
   4-23  adequately for a patient, failure> or failed to conform to the
   4-24  minimum standards of acceptable professional nursing practice, or
   4-25  if the registered nurse's practice is or is likely to be impaired
    5-1  by chemical dependency <impaired status>.  The peer review
    5-2  committee's determination shall be included in the report made to
    5-3  the board under Subsection (a) of this section.
    5-4        Sec. 5 <3>.  Each professional association of registered
    5-5  nurses or any organization that conducts a certification or
    5-6  accreditation program for registered nurses that expels,
    5-7  decertifies, or takes any other substantive disciplinary action, as
    5-8  defined by the board, against a registered nurse as a result of the
    5-9  registered nurse's failure to conform to the minimum standards of
   5-10  acceptable professional nursing practice shall report in writing to
   5-11  the board the identity of the nurse <nurse's name> and such
   5-12  additional information <other pertinent information within the
   5-13  organization's knowledge> as the board may require.
   5-14        Sec. 6 <4>.  Each state agency that licenses, registers or
   5-15  certifies <surveys> hospitals, nursing homes, health science
   5-16  centers, home health agencies, or other health-care facilities or
   5-17  agencies or surveys such facilities or agencies with respect to
   5-18  quality of professional nursing care provided, unless otherwise
   5-19  expressly prohibited by state or federal law, shall report in
   5-20  writing to the board any registered nurse that it has reason to
   5-21  believe exposed or is likely to expose patients or other persons
   5-22  unnecessarily to a risk of harm <because of>, has engaged in
   5-23  unprofessional conduct<, failure to care adequately for a patient,
   5-24  failure> or failed to conform to the minimum standards of
   5-25  acceptable professional nursing practice, or that the registered
    6-1  nurse's practice is or is likely to be impaired by chemical
    6-2  dependency <impaired status>.
    6-3        Sec. 18.  A report under this article shall be handled as a
    6-4  complaint under Article 4525(b) except that:
    6-5        (a)  If the board determines that the conduct reported does
    6-6  not indicate the reported nurse's continuing to practice
    6-7  professional nursing poses a risk of harm to clients or other
    6-8  persons, the board may, with the written consent of the reported
    6-9  nurse and the person making the report, elect not to proceed with
   6-10  investigation or to file formal charges.  In such event, the board
   6-11  shall keep a record of the report and shall investigate if it
   6-12  receives 2 or more reports involving separate incidents on a nurse
   6-13  in any 5 year period.
   6-14        (b)  The board need not investigate a report filed by an
   6-15  insurer under section 7 of this article, but shall maintain a
   6-16  record of the report and investigate if it receives 2 or more
   6-17  reports involving separate incidents on a nurse in any 5 year
   6-18  period.
   6-19        SECTION 2.  Section 3, Chapter 570, Acts of the 70th
   6-20  Legislature, Regular Session, 1987 (Article 4525b, Vernon's Texas
   6-21  Civil Statutes), is amended by amending Secs.  1(1) and 3 to read
   6-22  as follows; adding new Secs. 2 and 3 to read as follows; and
   6-23  renumbering the current sections accordingly:
   6-24        Sec. 1.  In this article:
   6-25              (1)  "Professional nursing peer review committee" means
    7-1  a committee <composed of at least a majority of registered nurses>
    7-2  established under the authority of the governing body of a
    7-3  national, state, or local professional nursing association, a
    7-4  school of professional nursing, the nursing staff of a hospital,
    7-5  health science center, nursing home, home health agency, temporary
    7-6  nursing service, or other health-care facility, or state agency or
    7-7  political subdivision for the purpose of conducting peer review.  A
    7-8  professional nursing peer review committee includes the employees
    7-9  and agents of the committee, including assistants, investigators,
   7-10  intervenors, attorneys, and any other person or organization that
   7-11  is employed by or serves the committee in any capacity.
   7-12        Sec. 2.  A professional nursing peer review committee shall
   7-13  comply with the following standards:
   7-14        (a)  three-fourths of the members shall be registered nurses;
   7-15        (b)  have only registered nurses as voting members;
   7-16        (c)  to the extent feasible, consist of at least one
   7-17  registered nurse who has a working familiarity with the area of
   7-18  nursing practice in which the nurse being reviewed practices;
   7-19        (d)  afford the nurse being reviewed minimum due process
   7-20  including notice and opportunity for hearing; and
   7-21        (e)  afford the nurse the opportunity to file a rebuttal
   7-22  statement as provided for in subsection 5(c) of this article.
   7-23        Sec. 3.  Any registered nurse who, as a temporary agency
   7-24  nurse, faculty member or similar personnel, practices professional
   7-25  nursing for a person, educational institution or health care
    8-1  facility, agency or entity other than the one that employs or
    8-2  directly compensates him or her shall be subject to peer review by
    8-3  both and for the purposes of exchange of information, the peer
    8-4  review committee reviewing the nurse's conduct shall be considered
    8-5  as established under the authority of both.  The two may contract
    8-6  with respect to which will conduct peer review of the nurse.
    8-7        Sec. 5 <3>.  (a)  A professional nursing peer review
    8-8  committee shall disclose on request written or oral communications
    8-9  made to the committee and the records and proceedings of the
   8-10  committee to:
   8-11              (1)  the state board of registration or licensure of
   8-12  any state; or
   8-13              (2)  a law enforcement authority investigating a
   8-14  criminal matter.
   8-15        (b)  A professional nursing peer review committee may
   8-16  disclose written or oral communications made to the committee and
   8-17  the records and proceedings of the committee to:
   8-18              (1)  the state board of registration or licensure of
   8-19  any state;
   8-20              (2)  a law enforcement authority investigating a
   8-21  criminal matter;
   8-22              (3 <1>)  the association, school, agency, facility, or
   8-23  other organization under whose authority the committee is
   8-24  established;
   8-25              (4 <2>)  another professional nursing peer review
    9-1  committee;
    9-2              (5 <3>)  a peer assistance program approved by the
    9-3  board under Chapter 467, Health and Safety Code;
    9-4              (6 <4>)  appropriate state or federal agencies or
    9-5  accrediting organizations which accredit health-care facilities or
    9-6  schools of nursing or which survey facilities for quality of care;
    9-7  or
    9-8              (7 <5>)  persons engaged in bona fide research, if all
    9-9  individual-identifying information is deleted.
   9-10        (c)  If a professional nursing peer review committee
   9-11  discloses information under Subsections (a) of this section that
   9-12  could result in the reprimand, suspension, termination, or other
   9-13  disciplinary action of a professional nurse, or itself recommends
   9-14  or takes such action, the committee shall provide the nurse with a
   9-15  detailed summary of information disclosed or the basis of its
   9-16  action or recommendation.  The nurse shall be permitted an
   9-17  opportunity to offer rebuttal information and to submit a rebuttal
   9-18  statement of reasonable length.  The rebuttal statement shall be
   9-19  included with the information disclosed.
   9-20        (d)  If a committee discloses information <to a nurse> under
   9-21  this section, the committee has not by that action waived the
   9-22  privilege of nondisclosure of committee information and
   9-23  proceedings.
   9-24        SECTION 3.  Section (c), Article 4523, Revised Statutes, is
   9-25  amended to read as follows:
   10-1        (c)  To allow a nurse to satisfy a requirement imposed 1)
   10-2  under Article 4526, Revised Statutes, to renew a license expired
   10-3  for two years or more, 2) <or a requirement imposed> under Article
   10-4  4526b, Revised Statutes, to reactivate a nursing license from
   10-5  inactive status, or 3) under Article 4525(c), Revised Statutes, to
   10-6  reissue a suspended or revoked license, the board may issue a
   10-7  temporary permit to practice professional nursing for the limited
   10-8  purpose of satisfying the requirement.  A permit issued under this
   10-9  subsection expires on the earlier of the receipt of a permanent
  10-10  license or six months from the date of issuance.
  10-11        SECTION 4.  Section (b), Article 4525, Revised Statutes, is
  10-12  amended to read.
  10-13        (b)  Proceedings under this article shall be governed by the
  10-14  following:
  10-15              (1)  Proceedings shall be begun by filing a written
  10-16  complaint with the board <of nurse examiners>.  Such complaint may
  10-17  be made by any person or filed by the board on its own initiative.
  10-18              (2)  Upon filing a complaint, the board may conduct a
  10-19  preliminary investigation into the identity of the person(s) named
  10-20  or described in the complaint.  Thereafter, unless it would
  10-21  jeopardize an investigation, the board shall notify the registered
  10-22  nurse that a complaint has been filed and the nature of the
  10-23  complaint.
  10-24              (3)  An information file about each complaint filed
  10-25  relating to a licensee shall be maintained by the board.  <If a
   11-1  written complaint is filed with the board relating to a licensee,
   11-2  the> The board, at least as frequently as every four months
   11-3  <quarterly> and until final disposition of the complaint, shall
   11-4  notify the complainant and the person being complained against
   11-5  <party that filed the complaint> of the status of the file unless
   11-6  notice would jeopardize an investigation.
   11-7              (4)  The board shall make a timely and appropriate
   11-8  preliminary investigation of the complaint and may, upon written
   11-9  waiver of notice and hearing and agreement of the licensee, enter
  11-10  orders containing the full range of disciplinary actions <issue a
  11-11  warning or reprimand to the person against whom the complaint was
  11-12  filed>.  If the investigation reveals probable cause to take
  11-13  further disciplinary action, the board may <shall> file formal
  11-14  charges against the registered nurse stating the provisions of this
  11-15  chapter or the board's rules that are alleged to have been violated
  11-16  and a brief description of the acts or omissions that constituted
  11-17  the violation.  <If the board proposes to refuse to admit a person
  11-18  to its examination, to refuse to issue a temporary permit, license,
  11-19  certificate of registration, certificate of re-registration, or to
  11-20  suspend or revoke a person's permit, license, or certificate, the
  11-21  person is entitled to a hearing before the board.  The hearing may
  11-22  be before a subcommittee of the board, a majority of which is
  11-23  composed of registered nurses.  The person shall on request be
  11-24  granted a hearing before the entire board.>
  11-25              (5)  Proceedings under this article shall be <for a
   12-1  disciplinary action are> governed by the Administrative Procedure
   12-2  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
   12-3  Statutes).
   12-4              (6)  The board may assess a person found to have
   12-5  violated any provision of this chapter the administrative costs of
   12-6  conducting a hearing to determine that violation.
   12-7              (7)  If a registered <licensed professional> nurse
   12-8  voluntarily surrenders his or her license to the board and executes
   12-9  a sworn statement that he or she no longer desires to be licensed,
  12-10  the board may revoke his or her license without the necessity of
  12-11  formal charges, notice, or opportunity of hearing.
  12-12              (8)  At the time of suspending or revoking a license,
  12-13  the board may impose conditions on reinstatement which the nurse
  12-14  must satisfy before being re-issued an unencumbered license.
  12-15        SECTION 5.  Section (c), Article 4525, Revised Statutes, to
  12-16  read as follows:
  12-17        (c)  Any person against whom the board has taken adverse
  12-18  action under this article <whose license or certificate to practice
  12-19  professional nursing has been revoked or suspended by the board or
  12-20  who has been otherwise disciplined by the board> may take an appeal
  12-21  to any of the district courts in the county of residence or in
  12-22  Travis County, but the decision of the board shall not be enjoined
  12-23  or stayed except on application to such district courts after
  12-24  notice to the board.  Upon application the board may reissue a
  12-25  license or certificate to practice professional nursing to a person
   13-1  whose license has been revoked or suspended but such application,
   13-2  in the case of revocation, shall not be made prior to one year
   13-3  after the revocation was issued and shall be made in such manner
   13-4  and form as the board may require.  At the time of denying an
   13-5  application, the board may set a reasonable period of time that
   13-6  must lapse before the applicant can re-apply for reinstatement.
   13-7        SECTION 6.  Section 9, Chapter 590, Acts of the 66th
   13-8  Legislature, Regular Session, 1979 (Article 4526b, Vernon's Texas
   13-9  Civil Statutes), is amended to read as follows:
  13-10  Article 4526b.  Inactive Status List
  13-11        Any nurse licensed under the provisions of this law, not
  13-12  actively or actually engaged in the practice of professional
  13-13  nursing, at the expiration of any such license upon written request
  13-14  to the board in such form and manner as the board shall determine
  13-15  may be placed on an inactive status list which shall be maintained
  13-16  by the board.  No professional nurse on such inactive status list
  13-17  shall perform any professional nursing services or work or violate
  13-18  any of the provisions of this law or any rule or regulation of the
  13-19  board so long as on such inactive status.  At any time such person
  13-20  desires to reenter the active practice of professional nursing or
  13-21  again begin performing or offering to perform professional nursing
  13-22  services, such person shall notify the board and upon payment of
  13-23  appropriate fees and meeting requirements as determined by the
  13-24  board shall be removed from the inactive status list.  The board
  13-25  shall adopt rules permitting a nurse on inactive status under this
   14-1  section who is sixty-five or older to use the title "Registered
   14-2  Nurse Retired" or "RN Retired."
   14-3        SECTION 7.  Section 2, Article 4527, Revised Statutes, is
   14-4  amended to read as follows:
   14-5        Sec. 2.  The Board shall not maintain unnecessary fund
   14-6  balances, and fee amounts shall be set in accordance with this
   14-7  requirement.  The Board shall set and collect a sales charge for
   14-8  copies of any paper or record in the office of the Board and for
   14-9  any printed material published by the Board.  The charges are to be
  14-10  in an amount considered sufficient to reimburse the Board for its
  14-11  actual expenses.  All fees received by said Board under this law
  14-12  shall be placed in the State Treasury to the credit of a special
  14-13  fund to be known as the "Professional Nurse Registration Fund" and
  14-14  the Comptroller shall upon requisition of the Board from time to
  14-15  time draw warrants upon the State Treasurer for the amounts
  14-16  specified in such requisition; provided, however, all fees
  14-17  collected by the Board and deposited in the Professional Nurse
  14-18  Registration Fund shall be expended as specified by itemized
  14-19  appropriation in the General Appropriations Act and shall be used
  14-20  by the Board, and under its direction, only for purposes of
  14-21  carrying out this Act.  The Board may use any of the fees and
  14-22  charges collected by it, as necessary, to retain, hire, or contract
  14-23  for additional prosecutors, hearing examiners, investigators, and
  14-24  support staff as necessary to aid in the investigation of
  14-25  complaints and the prosecution of persons subject to the Board's
   15-1  jurisdiction.  This provision shall apply to all fees of whatsoever
   15-2  nature as permitted by law.  The Board may charge a fee in the
   15-3  amount necessary to produce and disseminate to its licensees the
   15-4  information required under sec. 16(a) of Article 4525a, Revised
   15-5  Statutes.  Such fees shall be expended for a periodic newsletter.
   15-6  Any balance remaining from this fee at the end of a fiscal year
   15-7  will be carried forward for the purposes stated.  The financial
   15-8  transactions of the Board are subject to audit by the state auditor
   15-9  in accordance with Chapter 321, Government Code.
  15-10        SECTION 8.  Article 4517, Revised Statutes, is amended to
  15-11  read as follows:
  15-12        Article 4517.  Executive Director <Secretary and Bonds>
  15-13        Section 1.  The Board shall employ a qualified executive
  15-14  director <secretary>, who shall not be a member of the board.
  15-15  Under the direction of the board, the executive director
  15-16  <secretary> shall perform duties required by this Act and duties
  15-17  designated by the board.  Also, the board shall employ all other
  15-18  persons necessary to carry on the work of the board.  <The
  15-19  executive secretary shall upon employment execute a bond in the sum
  15-20  of One Thousand Dollars payable to the Governor.  The bond is
  15-21  conditioned that the executive secretary shall faithfully perform
  15-22  the duties of his or her office and shall account for funds coming
  15-23  into his or her hands as executive secretary.  The bond shall be
  15-24  signed by two or more sufficient sureties or by a surety company
  15-25  authorized to do business in this state and approved by the
   16-1  president of the board.>
   16-2        Sec. 2.  The  executive director <secretary> or his designee
   16-3  shall develop a system of annual performance evaluations based on
   16-4  measurable job tasks.  All merit pay authorized by the executive
   16-5  director <secretary> must be based on the system established under
   16-6  this section.
   16-7        SECTION 9.  Article 4516, Revised Statutes, is repealed.
   16-8        SECTION 10.  Section 1, Chapter 374, Acts of the 72nd
   16-9  Legislature, Regular Session, 1971 (Article 4519a, Vernon's Texas
  16-10  Civil Statutes), is amended by renumbering sections (a) and (b) as
  16-11  Secs. 1 and 2.
  16-12        SECTION 11.  Article 4523, Revised Statutes, is amended by
  16-13  renumbering sections (a)-(d) as Secs. 1-4.
  16-14        SECTION 12.  Article 4525, Revised Statutes, is amended by
  16-15  renumbering subsections (a)-(j) as Secs. 1-10, renumbering
  16-16  subdivisions (1)-(12) of section (a) as (a)-(1), renumbering
  16-17  subdivisions (1)-(5) of section (g) as subdivisions (a)-(e),
  16-18  renumbering subdivisions (1)-(3) of section (j) as subdivisions
  16-19  (a)-(c) and amending subdivision (4) of section (j) to read as
  16-20  follows:
  16-21        (d <4>)  conduct resulting in revocation of probation imposed
  16-22  under a conviction for conduct or an offense listed in Subdivision
  16-23  (a (1)), (b (2)), or (c (3)) of this section <subsection>.
  16-24        SECTION 13.  This Act takes effect September 1, 1993.
  16-25        SECTION 14.  The importance of this legislation and the
   17-1  crowded condition of the calendars in both houses create an
   17-2  emergency and an imperative public necessity that the
   17-3  constitutional rule requiring bills to be read on three several
   17-4  days in each house be suspended, and this rule is hereby suspended.