S.B. No. 623
                                        AN ACT
    1-1  relating to the continuation and functions of the State Board of
    1-2  Veterinary Medical Examiners and to the regulation of the practice
    1-3  of veterinary medicine and the administration of dangerous drugs to
    1-4  animals; providing penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 2, The Veterinary Licensing Act (Article
    1-7  8890, Revised Statutes), is amended by amending Subdivision (2) and
    1-8  adding Subdivisions (7) through (11) to read as follows:
    1-9              (2)  <Any person shall be deemed in the> "Practice of
   1-10  Veterinary Medicine" means:
   1-11                    (A)  the diagnosis, treatment, correction,
   1-12  change, manipulation, relief, or prevention of animal disease,
   1-13  deformity, defect, injury, or other physical condition, including
   1-14  the prescription or administration of a drug, biologic, anesthetic,
   1-15  apparatus, or other therapeutic or diagnostic substance or
   1-16  technique;
   1-17                    (B)  the representation of an ability and
   1-18  willingness to perform an act included in Paragraph (A) of this
   1-19  subdivision;
   1-20                    (C)  the use of a title, words, or letters to
   1-21  induce the belief that a person is legally authorized and qualified
   1-22  to perform an act included in Paragraph (A) of this subdivision; or
   1-23                    (D)  the receipt of compensation for performing
   1-24  an act included in Paragraph (A) of this subdivision  <who
    2-1  represents himself as engaged in the practice of veterinary
    2-2  medicine; or uses any words, letters or titles in such connection
    2-3  or under such circumstances as to induce the belief that the person
    2-4  using them is engaged in the practice of veterinary medicine, or
    2-5  any person who performs a surgical or dental operation or who
    2-6  diagnoses, treats, immunizes or prescribes any prescription drug,
    2-7  prescription medicine, veterinary appliance, or veterinary
    2-8  application for any physical ailment, injury, deformity, or
    2-9  condition of animals, for compensation>.
   2-10              (7)  "Compensation" includes all fees, monetary
   2-11  rewards, discounts, and emoluments received directly or indirectly
   2-12  by a person.
   2-13              (8)  "Direct supervision" means the actual physical
   2-14  presence of a responsible veterinarian on the premises.
   2-15              (9)  "General supervision" means supervision by a
   2-16  responsible veterinarian being readily available to communicate
   2-17  with the person being supervised by the veterinarian.
   2-18              (10)  "Registered veterinary technician" means a person
   2-19  who works under the supervision of a licensee and who fulfills the
   2-20  requirements established by an organization approved by the Board.
   2-21              (11)  "Veterinary medicine" includes veterinary
   2-22  surgery, veterinary reproduction and obstetrics, veterinary
   2-23  dentistry, veterinary ophthalmology, veterinary dermatology,
   2-24  veterinary cardiology, and all other disciplines and specialties of
   2-25  veterinary medicine.
   2-26        SECTION 2.  Section 2A, The Veterinary Licensing Act (Article
   2-27  8890, Revised Statutes), is amended to read as follows:
    3-1        Sec. 2A.  (a)  A veterinarian-client-patient relationship
    3-2  exists if:
    3-3              (1)  a veterinarian assumes responsibility for medical
    3-4  judgments regarding the health of an animal and a client who is the
    3-5  owner or other caretaker of the animal agrees to follow the
    3-6  veterinarian's instructions; <or>
    3-7              (2)  there is sufficient knowledge of the animal by the
    3-8  veterinarian to initiate at least a general or preliminary
    3-9  diagnosis of the medical condition of the animal.  This means that
   3-10  the veterinarian has recently seen and/or is personally acquainted
   3-11  with the keeping and care of the animal by virtue of the
   3-12  examination of the animal, and/or by medically appropriate and
   3-13  timely visits to the premises where the animal is kept; and
   3-14              (3)  the veterinarian is readily available to provide
   3-15  or has provided follow-up medical care in case of an adverse
   3-16  reaction or failure of the regimen of therapy provided by the
   3-17  veterinarian.
   3-18        (b)  The professional services of a veterinarian may not be
   3-19  controlled or exploited by any person or entity not licensed under
   3-20  this Act that intervenes between the client and the veterinarian.
   3-21  A veterinarian may not allow a person or entity not licensed under
   3-22  this Act to interfere or intervene with the veterinarian's practice
   3-23  of veterinary medicine and a veterinarian may not submit to
   3-24  interference or intervention by a person or entity not licensed
   3-25  under this Act.  A veterinarian shall avoid all relationships that
   3-26  may result in interference or intervention in the veterinarian's
   3-27  practice by a person or entity not licensed under this Act.  A
    4-1  veterinarian is responsible for the veterinarian's own actions and
    4-2  is directly responsible to the client and for the care and
    4-3  treatment of the patient.  <a veterinarian, through personal
    4-4  examination of an animal or a representative sample of a herd or
    4-5  flock, obtains sufficient information to make at least a general or
    4-6  preliminary diagnosis of the medical condition of the animal, herd,
    4-7  or flock, which is expanded through medically appropriate visits to
    4-8  the premises where the animal, herd, or flock is kept.>
    4-9        SECTION 3.  Section 3, The Veterinary Licensing Act (Article
   4-10  8890, Revised Statutes), is amended by amending Subsection (a) and
   4-11  adding Subsection (e) to read as follows:
   4-12        (a)  The provisions of this Act do <shall> not apply to:
   4-13              (1)  treatment <Treatment> or caring for animals in any
   4-14  manner either personally by the owner <thereof,> or by any employee
   4-15  of the owner or a designated caretaker <thereof>, unless the
   4-16  ownership, <or> employment, or designation was <has been>
   4-17  established with the intent of circumventing this Act;<.>
   4-18              (2)  a person who performs acts prescribed by the Board
   4-19  as accepted livestock management practices, including:
   4-20                    (A)  performing <Performance of> the operation of
   4-21  male castration on animals raised for human consumption, or docking
   4-22  or earmarking of animals raised for human consumption;
   4-23                    (B)  performing<.  (3)  Performance of> the
   4-24  operation of dehorning cattle;
   4-25                    (C)  aiding<, or aid> in the nonsurgical birth
   4-26  process in large animals, as defined by Board rule;
   4-27                    (D)  treating<.  (4)  Treatment of> animals for
    5-1  disease prevention <internal or external parasites, or vaccination
    5-2  for black-leg, shipping fever, or sore mouth> with a
    5-3  nonprescription medicine or vaccine;
    5-4                    (E)  branding or identification of animals in any
    5-5  manner;
    5-6                    (F)  artificial insemination, including training,
    5-7  insemination, and compensation for services associated with this
    5-8  practice; and
    5-9                    (G)  shoeing horses;
   5-10              (3)  the performance<.  (5)  Selling by a retail
   5-11  distributor of a nonprescription medicine, remedy or insecticide
   5-12  which is adequately labeled.>
   5-13              <(6)  Performance> of cosmetic or production techniques
   5-14  to reduce injury in poultry intended for human consumption;
   5-15              (4)  the performance of duties involving food
   5-16  production animals, other than diagnosis, prescription, or surgery,
   5-17  by an employee of a licensed veterinarian under the direction and
   5-18  general supervision of the veterinarian who shall be responsible
   5-19  for the employee's performance; and
   5-20              (5)  the performance of acts<.  (7)  Branding animals
   5-21  in any manner.>
   5-22              <(8)  Acts performed> by persons who are full-time
   5-23  students of an accredited college of veterinary medicine or who are
   5-24  foreign graduates of a Board-approved equivalent competency program
   5-25  for foreign veterinary graduates and who are participating in an
   5-26  extern or preceptor program approved by the Board if the acts are
   5-27  performed under direct supervision of a licensee employing the
    6-1  person.
    6-2        (e)  This Act does not apply to consultations by a
    6-3  veterinarian residing in another state who is lawfully qualified
    6-4  under the laws of that state with a licensed veterinarian in this
    6-5  state.
    6-6        SECTION 4.  Section 4, The Veterinary Licensing Act (Article
    6-7  8890, Revised Statutes), is amended to read as follows:
    6-8        Sec. 4.  (a)  Except as provided by Section 3 of this Act, a
    6-9  person may not practice, offer or attempt to practice veterinary
   6-10  medicine in this State without first having obtained a valid
   6-11  license to do so from the Texas Board of Veterinary Medical
   6-12  Examiners.
   6-13        (b)  A person commits an offense if the person violates this
   6-14  section.  The offense is a Class A misdemeanor.
   6-15        SECTION 5.  Section 5, The Veterinary Licensing Act (Article
   6-16  8890, Revised Statutes), is amended by amending Subsections (b),
   6-17  (c), (d), (g), (i), and (k) through (o) and adding Subsections (p)
   6-18  and (q) to read as follows:
   6-19        (b)  Appointments to the Board shall be made without regard
   6-20  to the race, color <creed>, disability, sex, religion, age, or
   6-21  national origin of the appointees.  Six members must be licensed
   6-22  veterinarians and three members must be members of the general
   6-23  public.  Not more than one veterinarian member of the Board may be
   6-24  a member of the faculty of a college of veterinary medicine.
   6-25        (c)  To be eligible for appointment to the Board as a
   6-26  licensed veterinarian member, a person must:
   6-27              (1)  have resided in the state and practiced veterinary
    7-1  medicine for the six years next preceding his appointment;
    7-2              (2)  be of good repute; and
    7-3              (3)  not be licensed under Section 10A of this Act <a
    7-4  member of the faculty of any veterinary medical college or of the
    7-5  veterinary medical department of any college or have a financial
    7-6  interest in a veterinary medical college>.
    7-7        (d)  A person is not eligible for appointment as a public
    7-8  member if the person or the person's spouse:
    7-9              (1)  is licensed by an occupational regulatory agency
   7-10  in the field of health care;
   7-11              (2)  is employed by or participates in the management
   7-12  of a business entity or other organization that provides
   7-13  health-care services or that sells, manufactures, or distributes
   7-14  health-care supplies or equipment or that is regulated by the Board
   7-15  or receives funds from the Board; <or>
   7-16              (3)  owns, controls, or has, directly or indirectly,
   7-17  more than a 10 percent interest in a business entity or other
   7-18  organization that provides health-care services or that sells,
   7-19  manufactures, or distributes health-care supplies or equipment or
   7-20  that is regulated by the Board or receives funds from the Board;
   7-21  or
   7-22              (4)  uses or receives a substantial amount of tangible
   7-23  goods, services, or funds from the Board, other than compensation
   7-24  or reimbursement authorized by law for Board membership,
   7-25  attendance, or expenses.
   7-26        (g)  At its first meeting each year the Board shall elect
   7-27  from its number a president and any other officers it considers
    8-1  necessary or convenient.  Five <Six> members of the Board
    8-2  constitute a quorum for the transaction of Board business.
    8-3        (i)  The State Board of Veterinary Medical Examiners is
    8-4  subject to Chapter 325, Government Code (Texas Sunset Act).  Unless
    8-5  continued in existence as provided by that chapter, the board is
    8-6  abolished and this Act expires September 1, 2005 <1993>.
    8-7        (k)  An officer, employee, or paid consultant of a Texas
    8-8  trade association in the field of health care may not be a member
    8-9  or employee of the Board who is exempt from the state's position
   8-10  classification plan or is compensated at or above the amount
   8-11  prescribed by the General Appropriations Act for step 1, salary
   8-12  group 17, of the position classification salary schedule.
   8-13        (l)  A person who is the spouse of an officer, manager, or
   8-14  paid consultant of a Texas trade association in the field of health
   8-15  care may not be a Board member and may not be an employee of the
   8-16  Board who is exempt from the state's position classification plan
   8-17  or is compensated at or above the amount prescribed by the General
   8-18  Appropriations Act for step 1, salary group 17, of the position
   8-19  classification salary schedule.
   8-20        (m)  For the purposes of Subsections (k) and (l) of this
   8-21  section, a Texas trade association is a nonprofit, cooperative, and
   8-22  voluntarily joined association of business or professional
   8-23  competitors in this state designed to assist its members and its
   8-24  industry or profession in dealing with mutual business or
   8-25  professional problems and in promoting their common interest <A
   8-26  member or employee of the Board may not be an officer, employee, or
   8-27  paid consultant of a trade association in the veterinary medical
    9-1  industry>.
    9-2        (n) <(l)  A member or employee of the Board may not be
    9-3  related within the second degree by affinity or consanguinity, as
    9-4  determined under Article 5996h, Revised Statutes, to a person who
    9-5  is an officer, employee, or paid consultant of a trade association
    9-6  in the regulated industry.>
    9-7        <(m)>  A person may not serve as a member of the Board or act
    9-8  as general counsel to the Board if the person <who> is required to
    9-9  register as a lobbyist under Chapter 305, Government Code, because
   9-10  of the person's activities for compensation on behalf of a
   9-11  profession related to the operation of the Board <may not serve as
   9-12  a member of the Board or act as the general counsel to the Board>.
   9-13        (o) <(n)>  It is a ground for removal from the Board if a
   9-14  member:
   9-15              (1)  does not have at the time of appointment the
   9-16  qualifications required by Subsection (c) or (d) of this section
   9-17  <for appointment to the Board>;
   9-18              (2)  does not maintain during <his> service on the
   9-19  Board the qualifications required by Subsection (c) or (d) of this
   9-20  section <for appointment to the Board>;
   9-21              (3)  violates a prohibition established by Subsection
   9-22  (k), (l), or (n) <(m)> of this section; <or>
   9-23              (4)  cannot discharge the member's duties for a
   9-24  substantial part of the term for which the member is appointed
   9-25  because of illness or disability; or
   9-26              (5)  is absent from more than <fails to attend at
   9-27  least> half of the regularly scheduled Board meetings that the
   10-1  member is eligible to attend during <held in> a calendar year
   10-2  unless the absence is excused by majority vote<, excluding meetings
   10-3  held while the person was not a member> of the Board.
   10-4        (p) <(o)>  The validity of an action of the Board is not
   10-5  affected by the fact that it was taken when a ground for removal of
   10-6  a Board member exists <of the Board existed>.
   10-7        (q)  If the executive director has knowledge that a potential
   10-8  ground for removal exists, the executive director shall notify the
   10-9  president of the Board of the ground.  The president shall then
  10-10  notify the governor that a potential ground for removal exists.
  10-11        SECTION 6.  The Veterinary Licensing Act (Article 8890,
  10-12  Revised Statutes) is amended by adding Section 5A to read as
  10-13  follows:
  10-14        Sec. 5A.  (a)  Each Board member shall comply with the Board
  10-15  member training requirements established by any other state agency
  10-16  that is given authority to establish the requirements for the
  10-17  Board.
  10-18        (b)  The Board shall provide to its members and employees, as
  10-19  often as necessary, information regarding their qualifications for
  10-20  office or employment under this Act and their responsibilities
  10-21  under applicable laws relating to standards of conduct for state
  10-22  officers or employees.
  10-23        SECTION 7.  The Veterinary Licensing Act (Article 8890,
  10-24  Revised Statutes) is amended by adding Section 5B to read as
  10-25  follows:
  10-26        Sec. 5B.  The Board shall develop and implement policies that
  10-27  clearly define the respective responsibilities of the Board and the
   11-1  staff of the Board.
   11-2        SECTION 8.  The Veterinary Licensing Act (Article 8890,
   11-3  Revised Statutes) is amended by adding Section 5C to read as
   11-4  follows:
   11-5        Sec. 5C.  (a)  The Board shall establish a training program
   11-6  for the members of the Board.
   11-7        (b)  Before a member of the Board may assume the member's
   11-8  duties, the member must complete at least one course of the
   11-9  training program established under this section, and before the
  11-10  member may be confirmed by the senate, the member must pass an
  11-11  examination given in conjunction with the Attorney General on
  11-12  subjects described by Subsections (c)(7), (8), and (9) of this
  11-13  section.
  11-14        (c)  A training program established under this section shall
  11-15  provide information to a participant regarding:
  11-16              (1)  the enabling legislation that created the Board to
  11-17  which the member is appointed;
  11-18              (2)  the programs operated by the Board;
  11-19              (3)  the role and functions of the Board;
  11-20              (4)  the rules of the Board with an emphasis on the
  11-21  rules that relate to disciplinary and investigatory authority;
  11-22              (5)  the current budget for the Board;
  11-23              (6)  the results of the most recent formal audit of the
  11-24  Board;
  11-25              (7)  the requirements of the:
  11-26                    (A)  open meetings law, Chapter 271, Acts of the
  11-27  60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
   12-1  Texas Civil Statutes), and its subsequent amendments;
   12-2                    (B)  open records law, Chapter 424, Acts of the
   12-3  63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
   12-4  Texas Civil Statutes), and its subsequent amendments; and
   12-5                    (C)  Administrative Procedure and Texas Register
   12-6  Act (Article 6252-13a, Vernon's Texas Civil Statutes) and its
   12-7  subsequent amendments;
   12-8              (8)  the requirements of the conflict of interest laws
   12-9  and other laws relating to public officials; and
  12-10              (9)  any applicable ethics policies adopted by the
  12-11  Board or the Texas Ethics Commission.
  12-12        (d)  In developing the training requirements provided for in
  12-13  this section, the Board shall consult with the governor's office,
  12-14  the attorney general's office, and the Texas Ethics Commission.
  12-15        (e)  In the event that another state agency or entity is
  12-16  given the authority to establish the training requirements, the
  12-17  Board shall allow that training in lieu of developing its own
  12-18  program.
  12-19        SECTION 9.  Subsection (b), Section 6, The Veterinary
  12-20  Licensing Act (Article 8890, Revised Statutes), is amended to read
  12-21  as follows:
  12-22        (b)  The executive director or the executive director's
  12-23  designee shall develop an intra-agency <intraagency> career ladder
  12-24  program.  The program shall require intra-agency<, one part of
  12-25  which shall be the intraagency> posting of all nonentry level
  12-26  positions concurrently with <for at least 10 days before> any
  12-27  public posting.
   13-1        SECTION 10.  The Veterinary Licensing Act (Article 8890,
   13-2  Revised Statutes) is amended by adding Section 6A to read as
   13-3  follows:
   13-4        Sec. 6A.  (a)  The executive director or the director's
   13-5  designee shall prepare and maintain a written policy statement to
   13-6  ensure implementation of a program of equal employment opportunity
   13-7  under which all personnel transactions are made without regard to
   13-8  race, color, disability, sex, religion, age, or national origin.
   13-9  The policy statement must include:
  13-10              (1)  personnel policies, including policies relating to
  13-11  recruitment, evaluation, selection, application, training, and
  13-12  promotion of personnel that are in compliance with the Commission
  13-13  on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes)
  13-14  and its subsequent amendments;
  13-15              (2)  a comprehensive analysis of the Board work force
  13-16  that meets federal and state guidelines;
  13-17              (3)  procedures by which a determination can be made of
  13-18  significant underutilization in the Board work force of all persons
  13-19  for whom federal or state guidelines encourage a more equitable
  13-20  balance; and
  13-21              (4)  reasonable methods to address those areas of
  13-22  underutilization appropriately.
  13-23        (b)  A policy statement prepared under Subsection (a) of this
  13-24  section must cover an annual period, be updated annually, be
  13-25  reviewed by the Commission on Human Rights for compliance with
  13-26  Subsection (a)(1) of this section, and be filed with the governor's
  13-27  office.
   14-1        (c)  The governor's office shall deliver a biennial report to
   14-2  the legislature based on the information received under Subsection
   14-3  (b) of this section.  The report may be made separately or as part
   14-4  of other biennial reports to the legislature.
   14-5        SECTION 11.  The Veterinary Licensing Act (Article 8890,
   14-6  Revised Statutes) is amended by adding Section 6B to read as
   14-7  follows:
   14-8        Sec. 6B.  (a)  The Board shall develop and implement policies
   14-9  that provide the public with a reasonable opportunity to appear
  14-10  before the Board and to speak on any issue under the jurisdiction
  14-11  of the Board.
  14-12        (b)  The Board shall prepare and maintain a written plan that
  14-13  describes how a person who does not speak English can be provided
  14-14  reasonable access to the Board's programs.  The Board shall also
  14-15  comply with federal and state laws for program and facility
  14-16  accessibility.
  14-17        SECTION 12.  Subsections (b) and (c), Section 7, The
  14-18  Veterinary Licensing Act (Article 8890, Revised Statutes), are
  14-19  amended to read as follows:
  14-20        (b)  The Board shall adopt rules to protect the public and to
  14-21  ensure that the performance of alternate therapies, including
  14-22  ultrasound diagnosis and therapy, magnetic field therapy, holistic
  14-23  medicine, homeopathy, chiropractic treatment, acupuncture, and
  14-24  laser therapy are performed only by a licensee or under the
  14-25  supervision of a licensee.
  14-26        (c)  The Board may adopt rules for the use of registered
  14-27  veterinary technicians working under the supervision of a licensee.
   15-1        (d)  The Board shall require its licensees to maintain a
   15-2  record-keeping system for controlled substances, as prescribed by
   15-3  Chapter 481, Health and Safety Code.  The records are subject to
   15-4  review by law enforcement agencies and by representatives of the
   15-5  Board.  A failure to keep such records shall be grounds for
   15-6  revoking, cancelling, suspending, or probating the license of any
   15-7  practitioner of veterinary medicine.
   15-8        (e) <(c)>  After notice and hearing, the Board may approve an
   15-9  exception to a rule adopted by the Board.  The Board may consider
  15-10  an exception on the request of a person subject to regulation by
  15-11  the Board.
  15-12        SECTION 13.  Subsection (d), Section 9, The Veterinary
  15-13  Licensing Act (Article 8890, Revised Statutes), is amended to read
  15-14  as follows:
  15-15        (d)  The investigation files and records of the Board,
  15-16  including files and records relating to complaints found to be
  15-17  groundless, are confidential.
  15-18        SECTION 14.  Section 10, The Veterinary Licensing Act
  15-19  (Article 8890, Revised Statutes), is amended by amending Subsection
  15-20  (b) and adding Subsections (c), (d), and (e) to read as follows:
  15-21        (b)  The Board may grant a provisional license to an
  15-22  applicant who presents proof of a current license in another state,
  15-23  the District of Columbia, or a territory of the United States that
  15-24  maintains professional standards considered by the Board to be
  15-25  equivalent to those set forth in this Act <waive any license
  15-26  requirement for an applicant with a valid license from any
  15-27  jurisdiction whose licensing requirements are approved by the
   16-1  Board.  The Board may require the applicant to demonstrate
   16-2  proficiency and competency through a skills assessment examination
   16-3  prescribed by the Board>.  An applicant for a provisional license
   16-4  under this section must:
   16-5              (1)  be licensed in good standing as a veterinarian in
   16-6  another state, the District of Columbia, or a territory of the
   16-7  United States that has licensing requirements that are
   16-8  substantially equivalent to the requirements of this Act;
   16-9              (2)  have passed a national or other examination
  16-10  recognized by the Board relating to veterinary medicine; and
  16-11              (3)  be sponsored by a person licensed by the Board
  16-12  under this Act with whom the provisional licensee may practice
  16-13  under this section.
  16-14        (c)  An applicant for a provisional license may be excused
  16-15  from the requirement of Subsection (b)(3) of this section if the
  16-16  Board determines that compliance with that subsection constitutes a
  16-17  hardship to the applicant.
  16-18        (d)  A provisional license is valid until the date the Board
  16-19  approves or denies the provisional licensee's application for a
  16-20  license.  The Board shall issue a license under this Act to the
  16-21  holder of a provisional license under this section if:
  16-22              (1)  the provisional licensee passes the examination
  16-23  under Section 12 of this Act;
  16-24              (2)  the Board verifies that the provisional licensee
  16-25  has the academic and experience requirements for a license under
  16-26  this Act; and
  16-27              (3)  the provisional licensee satisfies any other
   17-1  license requirements under this Act.
   17-2        (e)  The Board must complete the processing of a provisional
   17-3  licensee's application for a license not later than the 180th day
   17-4  after the date the provisional license is issued.
   17-5        SECTION 15.  The Veterinary Licensing Act (Article 8890,
   17-6  Revised Statutes) is amended by adding Section 10B to read as
   17-7  follows:
   17-8        Sec. 10B.  (a)  The Board by rule may provide for the
   17-9  issuance of a temporary license.
  17-10        (b)  The Board by rule may provide for a person who holds a
  17-11  license under this Act to be placed on inactive status.  Rules
  17-12  adopted under this subsection shall include a time limit for a
  17-13  licensee to remain on inactive status.
  17-14        SECTION 16.  Subsections (c), (e), and (f), Section 12, The
  17-15  Veterinary Licensing Act (Article 8890, Revised Statutes), are
  17-16  amended to read as follows:
  17-17        (c)  Examinations may be given orally, in writing, or a
  17-18  practical demonstration of the applicant's skill, or any
  17-19  combination of these as the Board may determine.  The Board shall
  17-20  have the written portion of the examination, if any, validated by
  17-21  an independent testing professional.
  17-22        (e)  Not later than the 30th day after the date on which a
  17-23  licensing examination is administered under this Act, the <The>
  17-24  Board shall notify each examinee of the <examination> results of
  17-25  the examination <not later than the 14th day after the date on
  17-26  which the Board has obtained all of the examination results>.
  17-27  However, if an examination is graded or reviewed by a national
   18-1  testing service, the Board shall notify examinees of the results of
   18-2  the examination not later than the 14th day after the date on which
   18-3  the Board receives the results from the testing service.  If the
   18-4  notice of examination results graded or reviewed by a national
   18-5  testing service will be delayed for longer <more> than 90 days
   18-6  after the examination date, the Board shall notify the examinee of
   18-7  the reason for the delay before the 90th day.
   18-8        (f)  If requested in writing by a person who fails a <the
   18-9  state Board> licensing examination administered under this Act, the
  18-10  Board shall furnish the person with an analysis <a review> of the
  18-11  person's performance on the examination.  <The Board shall conduct
  18-12  the review at its main office in Austin, Texas.>
  18-13        SECTION 17.  Section 13, The Veterinary Licensing Act
  18-14  (Article 8890, Revised Statutes), is amended to read as follows:
  18-15        Sec. 13.  (a)  A person may renew an unexpired license by
  18-16  paying to the Board before the expiration of the license the
  18-17  required renewal fee  <Licenses shall expire March 1st of each
  18-18  calendar year, and any licensee may renew the license on or before
  18-19  March 1st by making written application to the Board setting forth
  18-20  such facts as the Board may require, and by paying the required
  18-21  fee>.
  18-22        (b)  <A person may renew an unexpired license by paying to
  18-23  the Board before the expiration date of the license the required
  18-24  renewal fee.>  If a person's license has been expired for <not more
  18-25  than> 90 days or less, the person may renew the license by paying
  18-26  to the Board the required renewal fee and a fee that is one-half
  18-27  <(1/2)> of the examination fee for the license.
   19-1        (c)  If a person's license has been expired for longer <more>
   19-2  than 90 days but less than one year <two years>, the person may
   19-3  renew the license by paying to the Board all unpaid renewal fees
   19-4  and a fee that is equal to the examination fee for the license.
   19-5        (d)  If a person's license has been expired for one year <two
   19-6  years> or longer <more>, the person may not renew the license.  The
   19-7  person may obtain a new license by submitting to reexamination and
   19-8  complying with the requirements and procedures for obtaining an
   19-9  original license.  However, the Board may renew without
  19-10  reexamination an expired license of a person who was licensed in
  19-11  this state, moved to another state, and is currently licensed and
  19-12  has been in practice in the other state for the two years preceding
  19-13  application.  The person must pay to the Board a fee that is equal
  19-14  to the examination fee for the license.
  19-15        (e)  At least 30 days before the expiration of a person's
  19-16  license, the Board shall send written notice of the impending
  19-17  license expiration to the person at the licensee's last known
  19-18  address according to the records of the Board.
  19-19        (f) <(c)>  The requirements governing the payment of the
  19-20  annual renewal fee and the penalty for late renewal shall not apply
  19-21  to licensees who are on active duty with the Armed Forces of the
  19-22  United States of America and who do not engage in private or
  19-23  civilian practice or to licensees who are permanently and totally
  19-24  retired.
  19-25        (g)  The Board by rule shall establish a minimum number of
  19-26  hours of continuing education required to renew a license under
  19-27  this Act.  The Board may establish broad general categories of
   20-1  continuing education that meet the needs of licensees and may
   20-2  require licensees to successfully complete continuing education
   20-3  courses.
   20-4        <(d)  The Board may recognize, prepare, or implement
   20-5  continuing education programs for veterinarians.  Participation in
   20-6  the programs is voluntary.>
   20-7        SECTION 18.  Section 14, The Veterinary Licensing Act
   20-8  (Article 8890, Revised Statutes), is amended by amending Subsection
   20-9  (a) and adding Subsections (d), (e), and (f) to read as follows:
  20-10        (a)  Except as provided by this section with respect to
  20-11  conviction of a felony under Chapter 481, Health and Safety Code,
  20-12  Section 485.033, Health and Safety Code, or Chapter 483, Health and
  20-13  Safety Code, the Board may revoke or suspend a license, impose a
  20-14  civil penalty, place a licensee or person whose license has been
  20-15  suspended on probation, or reprimand a licensee, or may refuse to
  20-16  examine an applicant or to issue a license or a renewal of a
  20-17  license, after notice and hearing as provided in Section 15 of this
  20-18  Act, or as provided by the rules of the Board, if it finds that an
  20-19  applicant or licensee:
  20-20              (1)  has presented to the Board dishonest or fraudulent
  20-21  evidence of qualification or has been guilty of fraud or deception
  20-22  in the process of examination, or for the purpose of securing a
  20-23  license;
  20-24              (2)  is chronically or habitually intoxicated, has a
  20-25  chemical dependency, or is addicted to drugs;
  20-26              (3)  has engaged in dishonest or illegal practices in
  20-27  or connected with the practice of veterinary medicine;
   21-1              (4)  has been convicted of a felony under the laws of
   21-2  this or any other state of the United States or of the United
   21-3  States;
   21-4              (5)  has engaged in practices or conduct in connection
   21-5  with the practice of veterinary medicine which are violative of the
   21-6  standards of professional conduct as duly promulgated by the Board
   21-7  in accordance with law;
   21-8              (6)  has permitted or allowed another to use his
   21-9  license, or certificate to practice veterinary medicine in this
  21-10  state;
  21-11              (7)  has fraudulently issued a health certificate,
  21-12  vaccination certificate, test chart, or other form used in the
  21-13  practice of veterinary medicine that relates to the presence or
  21-14  absence of animal disease;
  21-15              (8)  has issued a false certificate relating to the
  21-16  sale for human consumption of inedible animal products;
  21-17              (9)  has committed fraud in the application or
  21-18  reporting of any test of animal disease;
  21-19              (10)  has paid or received any kickback, rebate, bonus,
  21-20  or other remuneration for treating an animal or for referring a
  21-21  client to another provider of veterinary services or goods;
  21-22              (11)  has performed or prescribed unnecessary or
  21-23  unauthorized treatment;
  21-24              (12)  has ordered prescription drugs or controlled
  21-25  substances for the treatment of an animal without first
  21-26  establishing a valid veterinarian-patient-client relationship;
  21-27              (13)  has refused to admit a representative of the
   22-1  Board to inspect the client and patient records and business
   22-2  premises of the person during regular business hours;
   22-3              (14)  has failed to keep the equipment and business
   22-4  premises in a sanitary condition;
   22-5              (15)  has committed gross malpractice or is guilty of a
   22-6  pattern of acts indicating consistent malpractice, negligence, or
   22-7  incompetence in the practice of veterinary medicine; or
   22-8              (16)  is subject to a disciplinary action in another
   22-9  jurisdiction, including the suspension, probation, or revocation of
  22-10  a license to practice veterinary medicine issued by another
  22-11  jurisdiction.
  22-12        (d)  A person not licensed under this Act who violates this
  22-13  Act or a rule adopted by the Board under this Act is subject to a
  22-14  civil penalty of $1,000 for each day of violation.  At the request
  22-15  of the Board, the attorney general shall bring an action to recover
  22-16  a civil penalty authorized under this subsection.
  22-17        (e)  In addition to the other disciplinary actions authorized
  22-18  by this section, the Board may require that a licensee who violates
  22-19  this Act participate in continuing education programs.  The Board
  22-20  shall specify the continuing education programs that may be
  22-21  attended and the number of hours that must be completed by an
  22-22  individual licensee to fulfill the requirements of this subsection.
  22-23  However, the continuing education programs specified by the Board
  22-24  must be relevant to the violation, and the number of hours required
  22-25  under this subsection are not in addition to the hours required to
  22-26  renew a license under this Act.
  22-27        (f)  If a license suspension is probated, the Board may
   23-1  require the licensee to:
   23-2              (1)  report regularly to the Board on matters that are
   23-3  the basis of the probation;
   23-4              (2)  limit practice to the areas prescribed by the
   23-5  Board; or
   23-6              (3)  continue or review continuing professional
   23-7  education until the licensee attains a degree of skill satisfactory
   23-8  to the Board in those areas that are the basis of the probation.
   23-9        SECTION 19.  Section 14B, The Veterinary Licensing Act
  23-10  (Article 8890, Revised Statutes), is amended to read as follows:
  23-11        Sec. 14B.  (a)  The <If a person violates this Act in a
  23-12  manner that constitutes grounds for disciplinary action by the
  23-13  Board, the> Board may impose an administrative <assess a civil>
  23-14  penalty against a <that> person who violates a provision of this
  23-15  Act or a rule or order adopted <in addition to taking action> under
  23-16  <Section 14 or 14A of> this Act.
  23-17        (b)  The <Board may assess the civil> penalty for each
  23-18  violation may be in an amount not to exceed $2,500.  The penalty
  23-19  for a violation related to a controlled substance may not exceed
  23-20  $5,000 per violation.
  23-21        (c)  The Board shall base the amount of the penalty on:
  23-22              (1)  the seriousness of the violation, including the
  23-23  nature, circumstances, extent, and gravity of any prohibited acts,
  23-24  and the hazard or potential hazard created to the health, safety,
  23-25  or economic welfare of the public;
  23-26              (2)  the economic harm to property or the environment
  23-27  caused by the violation;
   24-1              (3)  the history of previous violations;
   24-2              (4)  the amount necessary to deter future violations;
   24-3              (5)  efforts to correct the violation; and
   24-4              (6)  any other matter that justice may require.  <In
   24-5  determining the amount of the penalty, the Board shall consider the
   24-6  seriousness of the violation.>
   24-7        (d)  A subcommittee of the Board shall recommend the amount
   24-8  of the penalty based on a standardized penalty schedule.  The
   24-9  subcommittee shall consist of at least one public member of the
  24-10  Board.  The penalty schedule used by the subcommittee shall be
  24-11  developed by the Board, through rule, and shall be based on the
  24-12  criteria in Subsection (c) of this section.
  24-13        (e)  If the subcommittee of the Board determines that a
  24-14  violation has occurred, it may issue to the Board a report that
  24-15  states the facts on which the determination is based and the
  24-16  subcommittee's recommendation on the imposition of a penalty,
  24-17  including a recommendation on the amount of the penalty.
  24-18        (f)  Within 14 days after the date the report is issued to
  24-19  the Board, the executive director shall give written notice of the
  24-20  subcommittee's report to the person who committed the violation.
  24-21  The notice may be given by certified mail.  The notice must include
  24-22  a notice of all the alleged violations and a statement of the
  24-23  amount of the recommended penalty and must inform the person that
  24-24  the person has a right to a hearing on the occurrence of the
  24-25  violation, the amount of the penalty, or both the occurrence of the
  24-26  violation and the amount of the penalty.
  24-27        (g)  Within 20 days after the date the person receives the
   25-1  notice, the person in writing may accept the determination and
   25-2  recommended penalty of the subcommittee or may make a written
   25-3  request for a hearing on the occurrence of the violation, the
   25-4  amount of the penalty, or both the occurrence of the violation and
   25-5  the amount of the penalty.
   25-6        (h)  If the person accepts the determination and recommended
   25-7  penalty of the subcommittee, the Board by order shall approve the
   25-8  determination and impose the recommended penalty.
   25-9        (i)  If the person requests a hearing or fails to respond
  25-10  timely to the notice, the executive director shall set a hearing
  25-11  and give notice of the hearing to the person.  The hearing shall be
  25-12  held by an administrative law judge of the State Office of
  25-13  Administrative Hearings.  The administrative law judge shall make
  25-14  findings of fact and conclusions of law and promptly issue to the
  25-15  Board a proposal for a decision about the occurrence of the
  25-16  violation and the amount of a proposed penalty.  Based on the
  25-17  findings of fact, conclusions of law, and proposal for a decision,
  25-18  the Board by order may find that a violation has occurred and
  25-19  impose a penalty or may find that no violation occurred.
  25-20        (j)  The notice of the Board's order given to the person
  25-21  under the Administrative Procedure and Texas Register Act (Article
  25-22  6252-13a, Vernon's Texas Civil Statutes) and its subsequent
  25-23  amendments must include a statement of the right of the person to
  25-24  judicial review of the order.
  25-25        (k)  Within 30 days after the date the Board's order is final
  25-26  as provided by Section 16(c), Administrative Procedure and Texas
  25-27  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
   26-1  its subsequent amendments, the person shall:
   26-2              (1)  pay the amount of the penalty;
   26-3              (2)  pay the amount of the penalty and file a petition
   26-4  for judicial review contesting the occurrence of the violation, the
   26-5  amount of the penalty, or both the occurrence of the violation and
   26-6  the amount of the penalty; or
   26-7              (3)  without paying the amount of the penalty, file a
   26-8  petition for judicial review contesting the occurrence of the
   26-9  violation, the amount of the penalty, or both the occurrence of the
  26-10  violation and the amount of the penalty.
  26-11        (l)  Within the 30-day period, a person who acts under
  26-12  Subsection (k)(3) of this section may:
  26-13              (1)  stay enforcement of the penalty by:
  26-14                    (A)  paying the amount of the penalty to the
  26-15  court for placement in an escrow account; or
  26-16                    (B)  giving to the court a supersedeas bond that
  26-17  is approved by the court for the amount of the penalty and that is
  26-18  effective until all judicial review of the Board's order is final;
  26-19  or
  26-20              (2)  request the court to stay enforcement of the
  26-21  penalty by:
  26-22                    (A)  filing with the court a sworn affidavit of
  26-23  the person stating that the person is financially unable to pay the
  26-24  amount of the penalty and is financially unable to give the
  26-25  supersedeas bond; and
  26-26                    (B)  giving a copy of the affidavit to the
  26-27  executive director by certified mail.
   27-1        (m)  An executive director who receives a copy of an
   27-2  affidavit under Subsection (l)(2) of this section may file with the
   27-3  court, within five days after the date the copy is received, a
   27-4  contest to the affidavit.  The court shall hold a hearing on the
   27-5  facts alleged in the affidavit as soon as practicable and shall
   27-6  stay the enforcement of the penalty on finding that the alleged
   27-7  facts are true.  The person who files an affidavit has the burden
   27-8  of proving that the person is financially unable to pay the amount
   27-9  of the penalty and to give the supersedeas bond.
  27-10        (n)  If the person does not pay the amount of the penalty and
  27-11  the enforcement of the penalty is not stayed, the executive
  27-12  director may refer the matter to the attorney general for
  27-13  collection of the amount of the penalty.
  27-14        (o)  Judicial review of the order of the Board:
  27-15              (1)  is instituted by filing a petition as provided by
  27-16  Section 19, Administrative Procedure and Texas Register Act
  27-17  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
  27-18  subsequent amendments; and
  27-19              (2)  is under the substantial evidence rule.
  27-20        (p)  If the court sustains the occurrence of the violation,
  27-21  the court may uphold or reduce the amount of the penalty and order
  27-22  the person to pay the full or reduced amount of the penalty.  If
  27-23  the court does not sustain the occurrence of the violation, the
  27-24  court shall order that no penalty is owed.
  27-25        (q)  When the judgment of the court becomes final, the court
  27-26  shall proceed under this subsection.  If the person paid the amount
  27-27  of the penalty and if that amount is reduced or is not upheld by
   28-1  the court, the court shall order that the appropriate amount plus
   28-2  accrued interest be remitted to the person.  The rate of the
   28-3  interest is the rate charged on loans to depository institutions by
   28-4  the New York Federal Reserve Bank, and the interest shall be paid
   28-5  for the period beginning on the date the penalty was paid and
   28-6  ending on the date the penalty is remitted.  If the person gave a
   28-7  supersedeas bond and if the amount of the penalty is reduced, the
   28-8  court shall order the release of the bond after the person pays the
   28-9  amount.
  28-10        (r)  A penalty collected under this section shall be remitted
  28-11  to the comptroller for deposit in the general revenue fund.
  28-12        (s)  All proceedings under this section are subject to the
  28-13  Administrative Procedure and Texas Register Act (Article 6252-13a,
  28-14  Vernon's Texas Civil Statutes) and its subsequent amendments.
  28-15        (t)  Nothing in this section shall be construed as preventing
  28-16  the Board from assessing an administrative penalty using an
  28-17  informal proceeding governed by the requirements of Section 18F of
  28-18  this Act.
  28-19        SECTION 20.  The Veterinary Licensing Act (Article 8890,
  28-20  Revised Statutes) is amended by adding Section 14C to read as
  28-21  follows:
  28-22        Sec. 14C.  (a)  An executive committee of the Board,
  28-23  consisting of the president of the Board and two other Board
  28-24  members appointed by the president, may temporarily suspend the
  28-25  license of a licensee under this Act if the executive committee
  28-26  determines from the evidence or information presented to the
  28-27  committee that the continued practice by the licensee constitutes a
   29-1  continuing or imminent threat to the public welfare.
   29-2        (b)  A temporary suspension authorized under Subsection (a)
   29-3  of this section may also be ordered on a majority vote of the
   29-4  Board.
   29-5        (c)  A license temporarily suspended under this section may
   29-6  be suspended without notice or hearing if, at the time the
   29-7  suspension is ordered, a hearing on whether disciplinary
   29-8  proceedings under this Act should be initiated against the licensee
   29-9  is scheduled to be held not later than the 14th day after the date
  29-10  of the suspension.  A second hearing on the suspended license shall
  29-11  be held not later than the 60th day after the date the suspension
  29-12  was ordered.  If the second hearing is not held in the time
  29-13  required by this subsection, the suspended license is automatically
  29-14  reinstated.
  29-15        (d)  The Board by rule shall adopt procedures for the
  29-16  temporary suspension of a license under this section.
  29-17        SECTION 21.  Section 15, The Veterinary Licensing Act
  29-18  (Article 8890, Revised Statutes), is amended to read as follows:
  29-19        Sec. 15.  (a)  If the Board refuses to examine an applicant
  29-20  for a license, refuses a person's application for a license,
  29-21  suspends or revokes a person's license, or places on probation,
  29-22  reprimands, or assesses a civil penalty against a licensee, the
  29-23  applicant or licensee is entitled to a hearing before the State
  29-24  Office of Administrative Hearings <Board>.  The proceedings are
  29-25  governed by the Administrative Procedure and Texas Register Act, as
  29-26  amended (Article 6252-13a, Vernon's Texas Civil Statutes).  The
  29-27  schedule of sanctions adopted by the Board by rule shall be used by
   30-1  the State Office of Administrative Hearings for any sanction
   30-2  imposed as the result of a hearing conducted by that office.
   30-3        (b)  The Board may in its discretion conduct deliberations
   30-4  relative to licensee disciplinary actions in executive session.  At
   30-5  the conclusion of its deliberations relative to licensee
   30-6  disciplinary action, the Board shall vote and announce its decision
   30-7  to the licensee in open session.
   30-8        SECTION 22.  Section 17, The Veterinary Licensing Act
   30-9  (Article 8890, Revised Statutes), is amended to read as follows:
  30-10        Sec. 17.  The Board, through the Attorney General or any
  30-11  District or County Attorney, may institute any injunction
  30-12  proceeding or any such other proceeding incident to such injunction
  30-13  proceeding as to enforce the provisions of this Act and to enjoin
  30-14  any person from the practice of veterinary medicine, as defined in
  30-15  this Act, without such person having complied with the other
  30-16  provisions of this Act.  The venue for such injunction proceedings
  30-17  shall be in the county of the residence of the person against whom
  30-18  such injunction proceedings are instituted.  If the person does not
  30-19  reside in this state, venue is in Travis County.
  30-20        SECTION 23.  Subsection (b), Section 18, The Veterinary
  30-21  Licensing Act (Article 8890, Revised Statutes), is amended to read
  30-22  as follows:
  30-23        (b)  A person commits an offense if the person violates this
  30-24  Act.  An offense under this subsection is a Class A <B>
  30-25  misdemeanor.
  30-26        SECTION 24.  Section 18A, The Veterinary Licensing Act
  30-27  (Article 8890, Revised Statutes), is amended to read as follows:
   31-1        Sec. 18A.  (a)  The Board shall prepare information of public
   31-2  <consumer> interest describing the <regulatory> functions of the
   31-3  Board and the Board's procedures by which <consumer> complaints are
   31-4  filed with and resolved by the Board.  The Board shall make the
   31-5  information available to the <general> public and appropriate state
   31-6  agencies.
   31-7        (b)  The Board by rule shall establish methods by which
   31-8  consumers and service recipients are notified of the name, mailing
   31-9  address, and telephone number of the Board for the purpose of
  31-10  directing complaints to the Board.
  31-11        (c)  The Board shall list along with its regular telephone
  31-12  number the toll-free telephone number that may be called to present
  31-13  a complaint about a veterinarian if the toll-free number is
  31-14  established under other state law <shall maintain an information
  31-15  file about each complaint filed with the Board relating to a
  31-16  licensee.>
  31-17        <(c)  If a written complaint is filed with the Board relating
  31-18  to a licensee, the Board, at least as frequently as quarterly and
  31-19  until final disposition of the complaint, shall notify the parties
  31-20  to the complaint of the status of the complaint unless the notice
  31-21  would jeopardize an undercover investigation>.
  31-22        SECTION 25.  Section 18B, The Veterinary Licensing Act
  31-23  (Article 8890, Revised Statutes), is amended to read as follows:
  31-24        Sec. 18B.  (a)  The Board shall maintain an information file
  31-25  about each complaint filed with the Board <relating to a licensee>.
  31-26  The Board's information file shall be kept current and contain a
  31-27  record for each complaint of:
   32-1              (1)  all persons contacted in relation to the
   32-2  complaint;
   32-3              (2)  a summary of findings made at each step of the
   32-4  complaint process;
   32-5              (3)  an explanation of the legal basis and reason for a
   32-6  complaint that is dismissed; and
   32-7              (4)  other relevant information.
   32-8        (b)  If a written complaint is filed with the Board that the
   32-9  Board has authority to resolve <relating to a licensee>, the Board,
  32-10  at least as frequently as quarterly and until final disposition of
  32-11  the complaint, shall notify the parties to the complaint of the
  32-12  status of the complaint unless the notice would jeopardize an
  32-13  undercover investigation.
  32-14        (c)  The Board by rule shall adopt a form to standardize
  32-15  information concerning complaints made to the Board.  The Board by
  32-16  rule shall prescribe information to be provided to a person when
  32-17  the person files a complaint with the Board.
  32-18        (d)  The Board shall provide reasonable assistance to a
  32-19  person who wishes to file a complaint with the Board.
  32-20        SECTION 26.  The Veterinary Licensing Act (Article 8890,
  32-21  Revised Statutes) is amended by adding Section 18D to read as
  32-22  follows:
  32-23        Sec. 18D.  (a)  The Board shall adopt rules concerning the
  32-24  investigation of a complaint filed with the Board.  The rules
  32-25  adopted under this subsection shall:
  32-26              (1)  distinguish between categories of complaints;
  32-27              (2)  ensure that complaints are not dismissed without
   33-1  appropriate consideration;
   33-2              (3)  require that the Board be advised of a complaint
   33-3  that is dismissed and that a letter be sent to the person who filed
   33-4  the complaint explaining the action taken on the dismissed
   33-5  complaint;
   33-6              (4)  ensure that the person who filed the complaint has
   33-7  an opportunity to explain the allegations made in the complaint;
   33-8  and
   33-9              (5)  prescribe guidelines concerning the categories of
  33-10  complaints that require the use of a private investigator and the
  33-11  procedures for the Board to obtain the services of a private
  33-12  investigator.
  33-13        (b)  The Board shall dispose of all complaints in a timely
  33-14  manner.  The Board shall establish a schedule for conducting each
  33-15  phase of a complaint that is under the control of the Board not
  33-16  later than the 30th day after the date the complaint is received by
  33-17  the Board.  The schedule shall be kept in the information file for
  33-18  the complaint and all parties shall be notified of the projected
  33-19  time requirements for pursuing the complaint.  A change in the
  33-20  schedule must be noted in the complaint information file and all
  33-21  parties to the complaint must be notified not later than the
  33-22  seventh day after the date the change is made.
  33-23        (c)  The executive director of the Board shall notify the
  33-24  Board of a complaint that extends beyond the time prescribed by the
  33-25  Board for resolving the complaint so that the Board may take
  33-26  necessary action on the complaint.
  33-27        SECTION 27.  The Veterinary Licensing Act (Article 8890,
   34-1  Revised Statutes) is amended by adding Section 18E to read as
   34-2  follows:
   34-3        Sec. 18E.  (a)  A veterinarian may not violate the
   34-4  confidential relationship between the veterinarian and a client and
   34-5  may not be required to disclose any information concerning the
   34-6  veterinarian's care for an animal except on written authorization
   34-7  or another form of waiver executed by the client or on receipt by
   34-8  the veterinarian of an appropriate court order or subpoena.
   34-9        (b)  A veterinarian who releases information on written
  34-10  authorization or another form of waiver executed by the client or
  34-11  on receipt by the veterinarian of an appropriate court order or
  34-12  subpoena is not liable to the client or any other person for an
  34-13  action resulting from the release of that information.
  34-14        (c)  The privilege under this section is waived to the extent
  34-15  that the client of a veterinarian or the owner of an animal treated
  34-16  by the veterinarian places the care and treatment of the animal by
  34-17  the veterinarian or the nature and extent of injuries of an animal
  34-18  treated by the veterinarian at issue in a civil or criminal
  34-19  proceeding.
  34-20        (d)  This section does not apply to inspections or
  34-21  investigations conducted by the Board or an agent of the Board.
  34-22        SECTION 28.  The Veterinary Licensing Act (Article 8890,
  34-23  Revised Statutes) is amended by adding Section 18F to read as
  34-24  follows:
  34-25        Sec. 18F.  (a)  The Board by rule shall adopt procedures
  34-26  governing:
  34-27              (1)  informal disposition of a contested case under
   35-1  Section 13(e), Administrative Procedure and Texas Register Act
   35-2  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
   35-3  subsequent amendments; and
   35-4              (2)  informal proceedings held in compliance with
   35-5  Section 18(c), Administrative Procedure and Texas Register Act
   35-6  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
   35-7  subsequent amendments.
   35-8        (b)  Rules adopted under this section must provide the
   35-9  complainant and the licensee an opportunity to be heard and must
  35-10  require the presence of a representative of the office of the
  35-11  Attorney General to advise the Board or Board's employees.
  35-12        SECTION 29.  The Veterinary Licensing Act (Article 8890,
  35-13  Revised Statutes) is amended by adding Section 18G to read as
  35-14  follows:
  35-15        Sec. 18G.  The Board by rule shall develop a system for
  35-16  monitoring licensees' compliance with the requirements of this Act.
  35-17  Rules adopted under this section shall include procedures for
  35-18  monitoring a licensee who is ordered by the Board to perform
  35-19  certain acts to ascertain that the license holder performs the
  35-20  required acts and to identify and monitor licensees who represent a
  35-21  risk to the public.
  35-22        SECTION 30.  Section 19, The Veterinary Licensing Act
  35-23  (Article 8890, Revised Statutes), is amended to read as follows:
  35-24        Sec. 19.  (a)  The Board by rule shall establish reasonable
  35-25  and necessary fees so that the fees, in the aggregate, produce
  35-26  sufficient revenue to cover the costs of administering <for the
  35-27  administration of> this Act.
   36-1        (b)  The <board shall not maintain unnecessary fund balances,
   36-2  and> fee amounts <shall be> set by the Board may be adjusted so
   36-3  that the total fees collected are sufficient to cover the costs of
   36-4  administering this Act <in accordance with this requirement>.
   36-5        (c)  The Board may not set a fee for an amount less than the
   36-6  amount of that fee on September 1, 1993.
   36-7        SECTION 31.  Subsection (c), Section 20, The Veterinary
   36-8  Licensing Act (Article 8890, Revised Statutes), is amended to read
   36-9  as follows:
  36-10        (c)  The Board shall file annually with the governor and the
  36-11  presiding officer of each house of the legislature a complete and
  36-12  detailed written report accounting for all funds received and
  36-13  disbursed by the Board during the preceding fiscal year.  The
  36-14  annual report must be in the form and reported in the time provided
  36-15  by the General Appropriations Act <On or before January 1 of each
  36-16  year, the Board shall make in writing to the Governor and the
  36-17  Presiding Officer of each House of the Legislature a complete and
  36-18  detailed annual report accounting for all funds received and
  36-19  disbursed by the Board during the preceding year>.
  36-20        SECTION 32.  Section 22, The Veterinary Licensing Act
  36-21  (Article 8890, Revised Statutes), is amended to read as follows:
  36-22        Sec. 22.  (a)  No sole proprietorship, partnership, or
  36-23  corporation shall engage in veterinary medicine unless the owner,
  36-24  partners, or shareholders, respectively, are all licensees.
  36-25        (b)  A partnership between a veterinarian and a member of
  36-26  another profession or a person who is not a member of a profession
  36-27  may not be formed or permitted if a part of the partnership
   37-1  employment consists of the practice of veterinary medicine <Each of
   37-2  the following fees imposed by or under another section of this Act
   37-3  is increased by $200:>
   37-4              <(1)  any examination fee established by the Board; and>
   37-5              <(2)  any license renewal fee established by the Board.>
   37-6        <(b)  Of each fee increase collected, $50 shall be deposited
   37-7  to the credit of the foundation school fund and $150 shall be
   37-8  deposited to the credit of the general revenue fund.  This
   37-9  subsection applies to the disposition of each fee increase
  37-10  regardless of any other provision of law providing for a different
  37-11  disposition of funds>.
  37-12        SECTION 33.  The Veterinary Licensing Act (Article 8890,
  37-13  Revised Statutes) is amended by adding Sections 23 and 24 to read
  37-14  as follows:
  37-15        Sec. 23.  (a)  The practice of a veterinarian who leases
  37-16  space from and practices veterinary medicine on the premises of a
  37-17  mercantile establishment must be owned by a licensed veterinarian.
  37-18  The practice and the leased premises must be under the exclusive
  37-19  control of a licensed veterinarian.  The leased space must be
  37-20  definite and apart from the space occupied by other occupants of
  37-21  the premises, which means the space must be separated from space
  37-22  used by other occupants of the premises by the use of solid, opaque
  37-23  partitions or walls from floor to ceiling.  Railings, curtains, and
  37-24  other similar arrangements are not sufficient to comply with the
  37-25  requirement of this subsection.  The leased space shall have a
  37-26  patient's entrance opening on a public street, hall, lobby,
  37-27  corridor, or other public thoroughfare.  The aisle of a mercantile
   38-1  establishment does not comply with the requirement of this
   38-2  subsection.  An entrance to the leased space is not a patient's
   38-3  entrance within the meaning of this subsection unless the entrance
   38-4  is actually used as an entrance by the veterinarian's patients.
   38-5  However, an additional patient's entrance, that may be nonopaque,
   38-6  is permitted from inside the mercantile establishment directly into
   38-7  the leased space.  No part of the veterinarian's practice may be
   38-8  conducted as a department or concession of the mercantile
   38-9  establishment and there may not be legends or signs stating
  38-10  "Veterinary Department," or other words that imply the practice is
  38-11  not an independent veterinary practice, displayed in the premises
  38-12  or in any advertising for the premises.  Any use of a
  38-13  veterinarian's name must clearly indicate that the veterinarian's
  38-14  practice is independent and not under the ownership or control of
  38-15  the mercantile establishment.  Provided, however, this paragraph
  38-16  shall not prohibit the delivery of temporary limited-service
  38-17  veterinary activities, including preventative veterinary services,
  38-18  such as vaccinations and testing, at a mercantile establishment not
  38-19  owned or under the exclusive control of a veterinarian so long as
  38-20  such services are delivered by a veterinarian and are periodic only
  38-21  in nature.  The Board may establish by rule the conditions under
  38-22  which such services may be provided.
  38-23        (b)  All patient and business records of the practice are the
  38-24  sole property of the veterinarian and free from the control of the
  38-25  mercantile establishment or any person not licensed under this Act.
  38-26  Business records essential to the initiation or continuation of a
  38-27  percentage of gross receipts lease of space may be inspected by the
   39-1  applicable lessor.  Nothing in this subsection prohibits a
   39-2  veterinarian from entering into a management agreement and
   39-3  permitting employees or agents of the management company to have
   39-4  access to or copies of patient records as necessary for management
   39-5  functions.
   39-6        (c)  It shall not be construed as a violation of this Act for
   39-7  a veterinarian or a business entity authorized by the provisions of
   39-8  this Act to render veterinary services to lease space, to pay for
   39-9  franchise fees or other services on a percentage of receipts basis,
  39-10  or to sell, transfer, or assign accounts receivable.
  39-11        (d)  The provisions of Subsection (a) of this section
  39-12  regarding the requirement of a patient's entrance opening on a
  39-13  public street, hall, lobby, corridor, or other public thoroughfare
  39-14  do not apply to a practice or its legal successor operating in
  39-15  space in which the practice was open and operating prior to
  39-16  January 1, 1993.
  39-17        Sec. 24.  In the event of the death of a licensed
  39-18  veterinarian, the practice ownership and patient records become the
  39-19  property of the veterinarian's heirs to dispose of as necessary not
  39-20  later than the second anniversary of the veterinarian's death.
  39-21        SECTION 34.  Section 483.042, Health and Safety Code, is
  39-22  amended by adding Subsection (e) to read as follows:
  39-23        (e)  The labeling provisions of Subsection (a) do not apply
  39-24  to a dangerous drug prescribed or dispensed for administration to
  39-25  food production animals in an agricultural operation under a
  39-26  written medical directive or treatment guideline from a
  39-27  veterinarian licensed under The Veterinary Licensing Act (Article
   40-1  8890, Revised Statutes) and its subsequent amendments.
   40-2        SECTION 35.  (a)  On the effective date of this Act, a
   40-3  contested case pending before the State Board of Veterinary Medical
   40-4  Examiners is transferred to the State Office of Administrative
   40-5  Hearings.  A proceeding transferred under this subsection is
   40-6  treated as if the actions taken in the proceedings had been taken
   40-7  by the State Office of Administrative Hearings.
   40-8        (b)  The changes in law made by this Act relating to a
   40-9  penalty that may be imposed apply only to a violation of The
  40-10  Veterinary Licensing Act (Article 8890, Revised Statutes) or a rule
  40-11  adopted by the State Board of Veterinary Medical Examiners that
  40-12  occurs on or after the effective date of this Act only if each
  40-13  element of the violation occurs on or after that date.  A violation
  40-14  that occurs before the effective date of this Act is governed by
  40-15  the law in effect on the date the violation occurred, and the
  40-16  former law is continued in effect for this purpose.
  40-17        (c)  The changes in law made by this Act in the
  40-18  qualifications of members of the State Board of Veterinary Medical
  40-19  Examiners do not affect the entitlement of a member appointed
  40-20  before September 1, 1993, to continue to hold office on the board
  40-21  for the term for which the member was appointed.  The changes in
  40-22  the qualifications apply only to a member appointed on or after
  40-23  September 1, 1993.
  40-24        SECTION 36.  This Act takes effect September 1, 1993.
  40-25        SECTION 37.  The importance of this legislation and the
  40-26  crowded condition of the calendars in both houses create an
  40-27  emergency and an imperative public necessity that the
   41-1  constitutional rule requiring bills to be read on three several
   41-2  days in each house be suspended, and this rule is hereby suspended.