S.B. No. 839
                                        AN ACT
    1-1  relating to the regulation of the practice of vocational nursing
    1-2  and to the continuation of the Board of Vocational Nurse Examiners;
    1-3  providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subsections (a) and (b), Section 1, Chapter 118,
    1-6  Acts of the 52nd Legislature, 1951 (Article 4528c, Vernon's Texas
    1-7  Civil Statutes), are amended to read as follows:
    1-8              (a)  "Board" means the Board of Vocational Nurse
    1-9  Examiners.
   1-10              (b)  "Licensed Vocational Nurse" means a person who is
   1-11  licensed under this Act by the Board of Vocational Nurse Examiners.
   1-12        SECTION 2.  Section 5, Chapter 118, Acts of the 52nd
   1-13  Legislature, 1951 (Article 4528c, Vernon's Texas Civil Statutes),
   1-14  is amended to read as follows:
   1-15        Sec. 5.  TERM OF OFFICE, ORGANIZATION, MEETINGS OF BOARD<;
   1-16  CONTINUING EDUCATION>.  (a)  There is hereby created a board to be
   1-17  known as the Board of Vocational Nurse Examiners, consisting of
   1-18  fifteen (15) <twelve (12)> members to be appointed by the Governor
   1-19  and confirmed by the State Senate.  Appointments to the Board shall
   1-20  be made without regard to the race, color, handicap <creed>, sex,
   1-21  religion, or national origin of the appointees.
   1-22        Seven (7) members of the Board must be Licensed Vocational
   1-23  Nurses who are graduates of approved schools of vocational nursing,
   1-24  who have been actively engaged in the practice of vocational
    2-1  nursing for five (5) years immediately preceding their
    2-2  appointments, and who are not licensed physicians, registered
    2-3  professional nurses, or hospital administrators.
    2-4        One (1) member of the Board must be a Registered Nurse
    2-5  licensed by the Board of Nurse Examiners who is actively engaged in
    2-6  a teaching, administrative, or supervisory capacity in a vocational
    2-7  nursing educational program and who is not a licensed physician,
    2-8  hospital administrator, or licensed vocational nurse.
    2-9        One (1) member of the Board must be a physician licensed by
   2-10  the Texas State Board of Medical Examiners who has been actively
   2-11  engaged in the practice of medicine for five (5) years immediately
   2-12  preceding appointment and who is not a hospital administrator,
   2-13  registered professional nurse, or licensed vocational nurse.
   2-14        One (1) member of the Board must be a hospital administrator
   2-15  who has been actively engaged in hospital administration for a
   2-16  period of five (5) years and who is not a licensed physician,
   2-17  registered professional nurse, or licensed vocational nurse.
   2-18        Five (5) <Two (2)> members of the Board must be
   2-19  representatives of the general public.  A person is not eligible
   2-20  for appointment as a public member of the Board if the person or
   2-21  the person's spouse:
   2-22              (1)  is registered, certified, or licensed by an
   2-23  occupational regulatory agency in the field of health care;
   2-24              (2)  is employed by or participates in the management
   2-25  of a business entity or other organization regulated by the Board
   2-26  or receiving funds from the Board;
   2-27              (3)  owns or controls, directly or indirectly, more
    3-1  than 10 percent interest in a business entity or other organization
    3-2  regulated by the Board or receiving funds from the Board; or
    3-3              (4)  uses or receives a substantial amount of tangible
    3-4  goods, services, or funds from the Board, other than compensation
    3-5  or reimbursement authorized by law for Board membership,
    3-6  attendance, or expenses <if the person or the person's spouse is
    3-7  licensed by an occupational regulatory agency in the field of
    3-8  health care or is employed by, participates in the management of,
    3-9  or has, other than as a consumer, a financial interest in a
   3-10  business entity or other organization that provides health-care
   3-11  services or that sells, manufactures, or distributes health-care
   3-12  supplies or equipment>.
   3-13        (b)  The term of office of each member of the Board shall be
   3-14  six (6) years.  A member may not immediately succeed the member's
   3-15  term <himself (or herself)> in office.  In case of death,
   3-16  resignation or vacancy from any cause on the Board, the vacancy of
   3-17  the unexpired term shall be filled by the Governor within sixty
   3-18  (60) days after the occurrence of such vacancy.
   3-19        Each appointee to the Board <of Vocational Nurse Examiners>
   3-20  shall, within fifteen (15) days of the date of his appointment,
   3-21  qualify by taking the constitutional oath of office.
   3-22        (c)(1)  An officer, employee, or paid consultant of a Texas
   3-23  trade association in the field of health care may not be a Board
   3-24  member.
   3-25              (2)  A person who is the spouse of an officer, manager,
   3-26  or paid consultant of a Texas trade association in the field of
   3-27  health care may not be a Board member.
    4-1              (3)  For the purposes of this section, a Texas trade
    4-2  association is a nonprofit, cooperative, and voluntarily joined
    4-3  association of business or professional competitors in this state
    4-4  designed to assist its members and its industry or profession in
    4-5  dealing with mutual business or professional problems and in
    4-6  promoting their common interest.  <A member or employee of the
    4-7  Board may not be an officer, employee, or paid consultant of a
    4-8  national or state trade association in the vocational nursing
    4-9  field.>
   4-10        (d)  A person may not serve as a Board member or serve as
   4-11  general counsel to the Board if the person is required to register
   4-12  as a lobbyist under Chapter 305, Government Code, and its
   4-13  subsequent amendments, because of the person's activities for
   4-14  compensation on behalf of a profession related to the operation of
   4-15  the Board  <member or employee of the Board may not be related
   4-16  within the second degree by affinity or consanguinity, as
   4-17  determined under Article 5996h, Revised Statutes, to a person who
   4-18  is an officer, employee, or paid consultant of a national or state
   4-19  trade association in the vocational nursing field>.
   4-20        (e)(1)  It is a ground for removal from the Board if a
   4-21  member:
   4-22                    (A) <(1)>  does not have at the time of
   4-23  appointment the qualifications required by Subsection (a) of this
   4-24  section <for appointment to the Board>;
   4-25                    (B) <(2)>  does not maintain during <his> service
   4-26  on the Board the qualifications required by Subsection (a) of this
   4-27  section <for appointment to the Board>;
    5-1                    (C) <(3)>  violates a prohibition established
    5-2  <prescribed> by Subsections <Subsection> (c) and <or> (d) of this
    5-3  section;
    5-4                    (D)  cannot discharge the member's duties for a
    5-5  substantial part of the term for which the member is appointed
    5-6  because of illness or disability; or
    5-7                    (E)  is absent from more than half of the
    5-8  regularly scheduled Board meetings that the member is eligible to
    5-9  attend during a calendar year unless the absence is excused by
   5-10  majority vote of the Board.
   5-11              (2)  The validity of an action of the Board is not
   5-12  affected by the fact that it is taken when a ground for removal of
   5-13  a Board member exists.
   5-14              (3)  If the executive director has knowledge that a
   5-15  potential ground for removal exists, the executive director shall
   5-16  notify the presiding officer of the Board of the ground.  The
   5-17  presiding officer shall then notify the Governor that a potential
   5-18  ground for removal exists.
   5-19              <(4)  fails to attend at least half of the regularly
   5-20  scheduled Board meetings held in a calendar year, excluding
   5-21  meetings held while the person was not a Board member.>
   5-22        (f)  The Governor shall designate from the members of the
   5-23  Board the President of the Board.  The person designated as
   5-24  President serves in that capacity at the will of the Governor.
   5-25  <validity of an action of the Board is not affected by the fact
   5-26  that it was taken when a ground for removal of a member of the
   5-27  Board existed.>
    6-1        <(g)>  The Board shall elect a <President,> Vice-president<,>
    6-2  and Secretary-treasurer yearly at an annual meeting.  The Board may
    6-3  make such rules and regulations as may be necessary to govern its
    6-4  proceedings and to carry in effect the purposes of this law.  The
    6-5  Secretary-treasurer shall be required to keep minutes of each
    6-6  meeting of said Board, a register of the names of all nurses
    6-7  licensed under this law, and books of account of fees received and
    6-8  disbursements; and all minutes, the register of Licensed Vocational
    6-9  Nurses and books of account shall be at all times open to public
   6-10  inspection.  The financial transactions of this Board are subject
   6-11  to audit by the state auditor in accordance with Chapter 321,
   6-12  Government Code.  The Board shall employ a person other than a
   6-13  member of the Board as the executive director of the Board.  The
   6-14  executive director shall perform the administrative functions of
   6-15  the Board.  The Board shall employ other persons that it considers
   6-16  necessary in carrying out the provisions of this law.  The
   6-17  Secretary-treasurer shall be bonded by the Board in such amount as
   6-18  may be recommended by the State Auditor.
   6-19        (g) <(h)  The executive director or his designee shall
   6-20  develop a system of annual performance evaluations based on
   6-21  measurable job tasks.  All merit pay authorized by the executive
   6-22  director must be based on the system established under this
   6-23  subsection.>
   6-24        <(i)>  The Board shall employ a full-time Director of
   6-25  Education, who shall have had at least five (5) years experience in
   6-26  teaching nursing in an accredited school of nursing or an approved
   6-27  program in vocational nursing.  The Board may select either a
    7-1  Licensed Vocational Nurse or a Registered Nurse as the Director of
    7-2  Education.  The duties of the Director of Education shall be to
    7-3  visit and inspect all schools of vocational nursing to determine
    7-4  whether the Board's minimum requirements for vocational nursing
    7-5  programs are being met.  The Board, by rule, may establish a
    7-6  separate fee for the survey of approved programs.  The Board shall
    7-7  prescribe such methods and rules of visiting, and such methods of
    7-8  reporting <by the Director of Education> as may in its judgment be
    7-9  deemed proper.
   7-10        (h) <(j)>  Regular meetings of the Board shall be held at
   7-11  least twice a year, one of which shall be designated as an Annual
   7-12  Meeting for election of officers and the reading of auditors'
   7-13  reports.  At least twice each year the Board shall hold
   7-14  examinations in various cities in the state for qualified
   7-15  applicants for licensure.  Examinations may be held under the
   7-16  supervision of a Board member or such other person as the Board may
   7-17  specify.  Special <Not less than sixty (60) days notice of the
   7-18  holding of the examination shall be given by publication in at
   7-19  least three (3) daily newspapers of general circulation, to be
   7-20  selected by the Board; special> meetings shall be held upon request
   7-21  of five (5) <four (4)> members of the Board or upon the call of the
   7-22  president; eight (8) <six (6)> members of the Board shall
   7-23  constitute a quorum for the transaction of business, and should a
   7-24  quorum not be present on the day appointed for any meeting, those
   7-25  persons present may adjourn from day to day until a quorum shall be
   7-26  present, providing that such period shall not be longer than three
   7-27  (3) successive days; each member of said Board is entitled to a per
    8-1  diem set by legislative appropriation for each day that the member
    8-2  engages in the business of the Board.  A member may not receive any
    8-3  compensation for travel expenses, including expenses for meals and
    8-4  lodging, other than transportation expenses.  A member is entitled
    8-5  to compensation for transportation expenses as provided by the
    8-6  General Appropriations Act.
    8-7        (i) <(k)>  The Board may not adopt rules restricting
    8-8  competitive bidding or advertising by a licensee of the Board
    8-9  except to prohibit false, misleading, or deceptive practices by the
   8-10  licensee.  The Board may not include in its rules to prohibit
   8-11  false, misleading, or deceptive practices by a licensee a rule
   8-12  that:
   8-13              (1)  restricts the licensee's use of any medium for
   8-14  advertising;
   8-15              (2)  restricts the licensee's personal appearance or
   8-16  use of the person's <his> voice in an advertisement;
   8-17              (3)  relates to the size or duration of an
   8-18  advertisement by the licensee; or
   8-19              (4)  restricts the licensee's advertisement under a
   8-20  trade name.
   8-21        (j) <(l)(1)  The Board may recognize, prepare, or implement
   8-22  continuing education programs for licensees and may require
   8-23  participation in continuing education programs as a condition of
   8-24  renewal of a license.>
   8-25              <(2)  The Board may not require more than a total of 20
   8-26  hours of continuing education in a two-year license period and may
   8-27  not require that more than 10 of those hours consist of classroom
    9-1  instruction in approved programs.  The remaining 10 hours may
    9-2  consist of any combination of classroom instruction,
    9-3  institutional-based instruction, or individualized study.>
    9-4              <(3)  If the Board requires participation in continuing
    9-5  education programs as a condition of renewal of a license, the
    9-6  Board shall by rule establish a system for the approval of programs
    9-7  and providers of continuing education.  In adopting the rules, the
    9-8  board shall consider but is not obligated to approve programs or
    9-9  providers approved or accredited through continuing education
   9-10  accreditation systems established by national or state associations
   9-11  of licensed vocational nurses and nurse in-service programs offered
   9-12  by hospitals accredited by the Joint Commission on Accreditation of
   9-13  Healthcare Organizations, certified by Medicare, or maintained or
   9-14  operated by the federal government or the State of Texas.  The
   9-15  Board may assess programs and providers a fee in an amount
   9-16  reasonable and necessary to defray the costs incurred in approving
   9-17  providers and programs.  The fee collected under this subsection
   9-18  shall be deposited in the Vocational Nurse Examiners Fund.>
   9-19              <(4)  The Board may adopt other rules as necessary to
   9-20  implement this section.>
   9-21        <(m)  The Board shall prepare information of consumer
   9-22  interest describing the regulatory functions of the Board and the
   9-23  Board's procedures by which consumer complaints are filed with and
   9-24  resolved by the Board.  The Board shall make the information
   9-25  available to the general public and appropriate state agencies.>
   9-26        <(n)>  The Board shall enforce this Act.  The Board may
   9-27  retain outside legal counsel to represent the Board.  However,
   10-1  before the Board may retain outside counsel, the Board shall
   10-2  request the attorney general to perform the necessary services and
   10-3  may retain the outside counsel only if the attorney general
   10-4  certifies to the Board that the services cannot be performed.
   10-5        (k) <(o)  A person who is required to register as a lobbyist
   10-6  under Chapter 305, Government Code, may not serve as a member of
   10-7  the Board or act as the general counsel to the Board.>
   10-8        <(p)>  The Board of Vocational Nurse Examiners is subject to
   10-9  Chapter 325, Government Code (Texas Sunset Act).  Unless continued
  10-10  in existence as provided by that chapter, the board is abolished
  10-11  and this Act expires September 1, 2005 <1993>.
  10-12        (l) <(q)>  The Board is subject to the open meetings law,
  10-13  Chapter 271, Acts of the 60th Legislature, Regular Session, 1967,
  10-14  as amended (Article 6252-17, Vernon's Texas Civil Statutes), and
  10-15  the Administrative Procedure and Texas Register Act, as amended
  10-16  (Article 6252-13a, Vernon's Texas Civil Statutes).
  10-17        (m)(1)  The executive director or the executive director's
  10-18  designee shall develop an intra-agency career ladder program.  The
  10-19  program shall require intra-agency posting of all non-entry-level
  10-20  positions concurrently with any public posting.
  10-21              (2)  The executive director or the executive director's
  10-22  designee shall develop a system of annual performance evaluations
  10-23  based on measurable job tasks.  All merit pay for Board employees
  10-24  must be based on the system established under this subsection.
  10-25        (n)(1)  The executive director or the executive director's
  10-26  designee shall prepare and maintain a written policy statement to
  10-27  assure implementation of a program of equal employment opportunity
   11-1  under which all personnel transactions are made without regard to
   11-2  race, color, disability, sex, religion, age, or national origin.
   11-3  The policy statement must include:
   11-4                    (A)  personnel policies, including policies
   11-5  relating to recruitment, evaluation, selection, application,
   11-6  training, and promotion of personnel that are in compliance with
   11-7  the Commission on Human Rights Act (Article 5221k, Vernon's Texas
   11-8  Civil Statutes), and its subsequent amendments;
   11-9                    (B)  a comprehensive analysis of the Board
  11-10  workforce that meets federal and state guidelines;
  11-11                    (C)  procedures by which a determination can be
  11-12  made of significant underuse in the Board workforce of all persons
  11-13  for whom federal or state guidelines encourage a more equitable
  11-14  balance; and
  11-15                    (D)  reasonable methods to appropriately address
  11-16  those areas of underuse.
  11-17              (2)  A policy statement prepared under Subdivision (1)
  11-18  of this subsection must cover an annual period, be updated
  11-19  annually, be reviewed by the Commission on Human Rights for
  11-20  compliance with Subdivision (1)(A) of this subsection, and be filed
  11-21  with the governor's office.
  11-22              (3)  The governor's office shall deliver a biennial
  11-23  report to the legislature based on the information received under
  11-24  Subdivision (2)  of this subsection.  The report may be made
  11-25  separately or as part of other biennial reports to the legislature.
  11-26        (o)(1)  The Board shall prepare information of public
  11-27  interest describing the functions of the Board and the Board's
   12-1  procedures by which complaints are filed with and resolved by the
   12-2  Board.  The Board shall make the information available to the
   12-3  public and appropriate state agencies.
   12-4              (2)  The Board by rule shall establish methods by which
   12-5  consumers and service recipients are notified of the name, mailing
   12-6  address, and telephone number of the Board for the purpose of
   12-7  directing complaints to the Board.  The Board may provide for that
   12-8  notification:
   12-9                    (A)  on each registration form, application, or
  12-10  written contract for services of an individual or entity regulated
  12-11  by the Board;
  12-12                    (B)  on a sign prominently displayed in the place
  12-13  of business of each individual or entity regulated by the Board; or
  12-14                    (C)  in a bill for service provided by an
  12-15  individual or entity regulated by the Board.
  12-16              (3)  The Board shall enter into memoranda of
  12-17  understanding with each state agency that licenses health care
  12-18  facilities or agencies for the purpose of coordinating any
  12-19  notification requirements under Subdivision (2) of this subsection
  12-20  with notification requirements that may be imposed on the health
  12-21  care facility or agency by any other state agency.
  12-22              (4)  The Board shall list along with its regular
  12-23  telephone number the toll-free telephone number that may be called
  12-24  to present a complaint about a health professional if the toll-free
  12-25  number is established under other state law.
  12-26        (p)  The Board shall develop and implement policies that
  12-27  provide the public with a reasonable opportunity to appear before
   13-1  the Board and to speak on any issue under the jurisdiction of the
   13-2  Board.
   13-3        (q)  The Board shall prepare and maintain a written plan that
   13-4  describes how a person who does not speak English can be provided
   13-5  reasonable access to the Board's programs.  The Board shall also
   13-6  comply with federal and state laws for program and facility
   13-7  accessibility.
   13-8        (r)(1)  The Board shall establish a training program for the
   13-9  members of the Board.
  13-10              (2)  Before a member of the  Board may assume the
  13-11  member's duties, the member must complete at least one course of
  13-12  the training program established under this subsection.
  13-13              (3)  A training program established under this
  13-14  subsection shall provide information to a participant regarding:
  13-15                    (A)  the enabling legislation that created the
  13-16  Board;
  13-17                    (B)  the programs operated by the Board;
  13-18                    (C)  the role and functions of the Board;
  13-19                    (D)  the rules of the Board with an emphasis on
  13-20  the rules that relate to disciplinary and investigatory authority;
  13-21                    (E)  the current budget for the Board;
  13-22                    (F)  the results of the most recent formal audit
  13-23  of the Board;
  13-24                    (G)  the requirements of the:
  13-25                          (i)  open meetings law, Chapter 271, Acts
  13-26  of the 60th Legislature, Regular Session, 1967 (Article 6252-17,
  13-27  Vernon's Texas Civil Statutes), and its subsequent amendments;
   14-1                          (ii)  open records law, Chapter 424, Acts
   14-2  of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
   14-3  Vernon's Texas Civil Statutes), and its subsequent amendments; and
   14-4                          (iii)  Administrative Procedure and Texas
   14-5  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) and
   14-6  its subsequent amendments;
   14-7                    (H)  the requirements of the conflict of interest
   14-8  laws and other laws relating to public officials; and
   14-9                    (I)  any applicable ethics policies adopted by
  14-10  the Board or the Texas Ethics Commission.
  14-11              (4)  In developing the training requirements provided
  14-12  for in this subsection, the Board shall consult with the governor's
  14-13  office, the attorney general's office, and the Texas Ethics
  14-14  Commission.
  14-15              (5)  In the event that another state agency or entity
  14-16  is given the authority to establish the training requirements, the
  14-17  Board shall allow that training in lieu of developing its own
  14-18  program.
  14-19        (s)  The Board shall provide to its members and employees, as
  14-20  often as necessary, information regarding their qualifications for
  14-21  office or employment under this article and their responsibilities
  14-22  under applicable laws relating to standards of conduct for state
  14-23  officers or employees.
  14-24        (t)  The Board may enter interagency contracts for any
  14-25  purpose authorized by law.
  14-26        <(r)  If the appropriate standing committees of both houses
  14-27  of the legislature acting under Subsection (g), Section 5,
   15-1  Administrative Procedure and Texas Register Act, as amended
   15-2  (Article 6252-13a, Vernon's Texas Civil Statutes), transmit to the
   15-3  Board statements opposing adoption of a rule under that section,
   15-4  the rule may not take effect, or if the rule has already taken
   15-5  effect, the rule is repealed effective on the date the Board
   15-6  receives the committee's statements.>
   15-7        SECTION 3.  Section 6, Chapter 118, Acts of the 52nd
   15-8  Legislature, 1951 (Article 4528c, Vernon's Texas Civil Statutes),
   15-9  is amended to read as follows:
  15-10        Sec. 6.  Examination and Licenses.  (a)  Except as provided
  15-11  in Section 7 of this Act, every person desiring to be licensed as a
  15-12  Licensed Vocational Nurse or use the abbreviation L.V.N. in the
  15-13  State of Texas, shall be required to pass the examination approved
  15-14  <given> by the Board of Vocational Nurse Examiners <or its
  15-15  delegate>.  The applicant shall make application by presenting to
  15-16  <the secretary of> the Board, on forms furnished by the Board,
  15-17  satisfactory sworn evidence that the applicant has had at least two
  15-18  (2) years of high school education or its equivalent and has
  15-19  completed an approved course <of not less than twelve (12) months>
  15-20  in an approved school for educating vocational nurses.  An approved
  15-21  school as used herein shall mean one approved by the Board or by
  15-22  another state.  Application for examination by the Board or its
  15-23  delegate shall be made at least thirty (30) days prior to the date
  15-24  set for the examination.
  15-25        (b)  The Board in its discretion may waive the requirement in
  15-26  Subsection (a) of this section for completion of a course in an
  15-27  approved school for educating vocational or practical nurses upon
   16-1  presentation of satisfactory sworn evidence that the applicant has
   16-2  completed an acceptable level <at least two (2) years> of education
   16-3  in a nursing school approved by the State Board of Nurse Examiners
   16-4  of Texas or in some other school of professional nurse education
   16-5  located in another state, the District of Columbia, a possession of
   16-6  the United States, or a foreign country.  The Board by rule shall
   16-7  determine acceptable levels of education.  The Board shall have the
   16-8  written portion of the examination, if any, validated by an
   16-9  independent testing professional.  If the applicant received
  16-10  training in another state, the District of Columbia, a possession
  16-11  of the United States, or a foreign country, the applicant must
  16-12  present evidence satisfactory to the Board that the nursing
  16-13  education received is equivalent to that required for licensure as
  16-14  a vocational nurse in this state.
  16-15        (c)  Not later than the 30th day <Within 30 days> after the
  16-16  date a licensing examination is administered under this Act, the
  16-17  Board shall notify each examinee of the results of the examination.
  16-18  However, if an examination is graded or reviewed by a national
  16-19  testing service, the Board shall notify each examinee of the
  16-20  results of the examination within two weeks after the date the
  16-21  Board receives the results from the testing service.  If the notice
  16-22  of the examination results will be delayed for more than 90 days
  16-23  after the examination date, the Board shall notify each examinee of
  16-24  the reason for the delay before the 90th day.  If requested in
  16-25  writing by a person who fails the licensing examination
  16-26  administered under this Act, the Board shall furnish the person
  16-27  with an analysis of the person's performance on the examination or
   17-1  other information which the Board has available to it after the
   17-2  tests are scored.
   17-3        (d)  If an applicant has graduated from an approved
   17-4  educational program in vocational nursing in this state, another
   17-5  state, or the District of Columbia, or successfully completed an
   17-6  acceptable level of education in a professional nursing program
   17-7  <two years of an associate degree program or diploma program in
   17-8  professional nursing education> in this state, another state, or
   17-9  the District of Columbia, the Board may issue to the applicant,
  17-10  pending the results of the licensing examination, a temporary
  17-11  permit to practice vocational nursing under the direct supervision
  17-12  of a licensed vocational nurse, registered professional nurse, or
  17-13  licensed physician.  A permit issued to an applicant who fails the
  17-14  examination expires on the date indicated on the permit.  A permit
  17-15  issued to an applicant who passes the examination expires on the
  17-16  applicant's receipt of a license from the Board.  A permit may not
  17-17  be issued to an applicant who has previously failed an examination
  17-18  administered by the Board or by another state.  <The Board may
  17-19  issue a temporary permit to practice vocational nursing to an
  17-20  applicant who is a vocational or practical nurse who has graduated
  17-21  from an approved program for educating vocational or practical
  17-22  nurses, holds a license as a vocational or practical nurse from
  17-23  another state, the District of Columbia, or a possession of the
  17-24  United States, and has actually been engaged in the practice of
  17-25  vocational or practical nursing within the past five years.  Such
  17-26  an applicant must practice under the direct supervision of a
  17-27  licensed vocational nurse, registered professional nurse, or
   18-1  licensed physician.  A temporary permit issued to an applicant from
   18-2  another state, the District of Columbia, or a possession of the
   18-3  United States expires on receipt of a license from the Board or on
   18-4  the expiration of 90 days, whichever occurs first.  The Board may,
   18-5  by mutual agreement, assign the function of physical distribution
   18-6  of the temporary permits to an agent designated by the Board to act
   18-7  on behalf of the Board.>
   18-8        (e)  Any nurse who is licensed under the provisions of this
   18-9  Act, when on duty in a public or private hospital, nursing home, or
  18-10  licensed health-care facility, shall wear <identifying> insignia
  18-11  identifying the nurse as a licensed vocational nurse <on white caps
  18-12  or uniforms>.
  18-13        SECTION 4.  Section 7, Chapter 118, Acts of the 52nd
  18-14  Legislature, Regular Session, 1951 (Article 4528c, Vernon's Texas
  18-15  Civil Statutes), is amended to read as follows:
  18-16        Sec. 7.  QUALIFICATION FOR LICENSING BY ENDORSEMENT.  (a)  To
  18-17  qualify for a temporary license to practice as a licensed
  18-18  vocational nurse by endorsement, an applicant for licensing must:
  18-19              (1)  submit to the Board an application fee as
  18-20  determined by the Board and a completed application given under
  18-21  oath, in the form prescribed by the Board;
  18-22              (2)  have possessed at the time of initial licensing as
  18-23  a licensed vocational nurse the qualifications necessary to have
  18-24  been eligible for licensing at that time in this state;
  18-25              (3)  have presented to the Board proof of initial
  18-26  licensing by examination and proof that the current active license
  18-27  and other license or licenses granted to the applicant by any other
   19-1  state have not been suspended, revoked, canceled, surrendered, or
   19-2  otherwise restricted for any reason; and
   19-3              (4)  submit to the Board a notice of sponsorship of the
   19-4  applicant by the holder of a Texas health care professional license
   19-5  under whom the applicant will practice.
   19-6        (b)  A holder of a temporary license under this section shall
   19-7  receive a permanent license if the applicant:
   19-8              (1)  has submitted official verification of  the
   19-9  academic and professional credentials of the applicant; and
  19-10              (2)  satisfies any other requirement set by statute.
  19-11        (c)  The Board shall either grant or deny an application for
  19-12  a permanent license within 180 days after the date of the Board's
  19-13  receipt of all required forms or information.  The Board may extend
  19-14  the 180-day deadline to allow for the receipt and tabulation of
  19-15  pending examination results.
  19-16        (d)  The Board shall adopt rules relating to the conditions
  19-17  of sponsorship under Subsection (a)(4) of this section, including
  19-18  waiver of the requirement in the event of a hardship.
  19-19        (e)  The Board shall specify training, education, or
  19-20  examination requirements that an applicant may complete in lieu of
  19-21  the requirements of Subsection (a)(2) of this section. <Any
  19-22  applicant who holds a license as a Vocational Nurse or Practical
  19-23  Nurse issued by the District of Columbia or another state whose
  19-24  requirements are equal to those of Texas, and whose individual
  19-25  qualifications shall be equivalent to those required by this law,
  19-26  may be granted a license to practice nursing as a Licensed
  19-27  Vocational Nurse in this State without examination provided the
   20-1  required fee is paid to the Board by such applicant.>
   20-2        SECTION 5.  Subsections (a), (b), and (c), Section 8, Chapter
   20-3  118, Acts of the 52nd Legislature, 1951 (Article 4528c, Vernon's
   20-4  Texas Civil Statutes), are amended to read as follows:
   20-5        (a)  The Board <board> by rule shall adopt a system under
   20-6  which licenses expire on various dates during the year <every two
   20-7  years>.  <For the year in which the expiration date is changed,
   20-8  license fees payable on September 1 shall be prorated on a monthly
   20-9  basis so that each licensee shall pay only that portion of the
  20-10  license fee which is allocable to the number of months during which
  20-11  the license is valid.  On renewal of the license on the new
  20-12  expiration date, the total license renewal fee is payable.>
  20-13        (b)  At <The Board shall notify each licensee about the
  20-14  expiration date of the person's license at> least 30 days before
  20-15  the expiration of a person's license, the Board <date.  The Board
  20-16  by United States mail> shall send written notice of the impending
  20-17  license expiration to the person, at the person's last known
  20-18  address according to the Board's records <with the notice an
  20-19  application for license renewal to the licensee's address contained
  20-20  in the Board's records.  A licensee whose completed application for
  20-21  renewal is received by the Board after the expiration date of the
  20-22  license shall be charged a late fee>.
  20-23        (c)  If a person's license has been expired for <not more
  20-24  than> 90 days or less, the person may renew the license by paying
  20-25  to the Board the required renewal fee and a fee that is one-half
  20-26  the examination fee for the license.  If a person's license has
  20-27  been expired for more than 90 days but less than one year <two
   21-1  years>, the person may renew the license by paying to the Board all
   21-2  unpaid renewal fees and a fee that is equal to the examination fee
   21-3  for the license.  The Board by rule shall set a length of time
   21-4  beyond which an expired license may not be renewed.  The Board by
   21-5  rule may establish additional requirements that apply to the
   21-6  renewal of a license that has been expired for more than one year
   21-7  but less than the period set by the Board beyond which a license
   21-8  may not be renewed <If a person's license has been expired for two
   21-9  years or more, the person may renew the license by complying with
  21-10  the requirements set forth in substantive rules adopted by the
  21-11  Board>.  The person may obtain a new license by submitting to
  21-12  reexamination and complying with the requirements and procedures
  21-13  for obtaining an original license.  However, the Board may renew
  21-14  without examination an expired license of a person who was licensed
  21-15  in this state, moved to another state, and is currently licensed
  21-16  and has been in practice in the other state for the two years
  21-17  preceding application.  The person must pay to the Board a fee that
  21-18  is equal to the examination fee for the license.
  21-19        SECTION 6.  Chapter 118, Acts of the 52nd Legislature, 1951
  21-20  (Article 4528c, Vernon's Texas Civil Statutes), is amended by
  21-21  adding Section 8A to read as follows:
  21-22        Sec. 8A.  MANDATORY CONTINUING EDUCATION REQUIREMENTS.
  21-23  (a)  To renew a license, a licensee must demonstrate to the
  21-24  satisfaction of the Board completion of the requirement for
  21-25  continuing professional education.
  21-26        (b)  The Board shall adopt rules relating to the operation of
  21-27  the mandatory continuing education programs.  In establishing the
   22-1  requirement for continuing education, the Board shall consider:
   22-2              (1)  factors that lead to the competent performance of
   22-3  professional duties; and
   22-4              (2)  the continuing education needs of licensees.
   22-5        (c)  The Board shall adopt rules relating to the adoption or
   22-6  approval of mandatory continuing education programs and providers
   22-7  and shall adopt rules to evaluate the effectiveness of the programs
   22-8  and a licensee's participation and performance in the programs.
   22-9        SECTION 7.  Section 9, Chapter 118, Acts of the 52nd
  22-10  Legislature, 1951 (Article 4528c, Vernon's Texas Civil Statutes),
  22-11  is amended to read as follows:
  22-12        Sec. 9.  Fees.  (a)  The Board by rule shall establish
  22-13  reasonable and necessary fees so that the fees, in the aggregate,
  22-14  produce sufficient revenue to cover the cost of administering this
  22-15  Act.  The fees set by the Board may be adjusted so that the total
  22-16  fees collected shall be sufficient to meet the expenses of
  22-17  administering this Act.  The Board may not set a fee for an amount
  22-18  less than the amount of that fee on September 1, 1993  <for the
  22-19  administration of this Act in amounts not to exceed:>
  22-20              <(1)  examination and application fee:  $40;>
  22-21              <(2)  reexamination fee:  $40;>
  22-22              <(3)  renewal fee:  $20;>
  22-23              <(4)  endorsement fee:  $40;>
  22-24              <(5)  accreditation of new programs fee:  $75;>
  22-25              <(6)  duplicate temporary permit or license fee:  $10;>
  22-26              <(7)  filing of affidavits in rechange of name fee:
  22-27  $10;>
   23-1              <(8)  endorsement to another state fee:  $40; and>
   23-2              <(9)  reactivating from inactive status fee:  $30>.
   23-3  The Board shall not maintain unnecessary fund balances, and fee
   23-4  amounts shall be set in accordance with this requirement.
   23-5        (b)  All expenses under this Act shall be paid from fees
   23-6  collected by the Board under this Act, and no expense incurred
   23-7  under this Act shall ever be charged against the funds of the State
   23-8  of Texas.
   23-9        (c)  On or before January 1 of each year, the Board shall
  23-10  make in writing to the Governor and the presiding officer of each
  23-11  house of the legislature a complete and detailed report accounting
  23-12  for all funds received and disbursed by the Board during the
  23-13  preceding year.  The annual report must be in the form and reported
  23-14  in the time provided by the General Appropriations Act.
  23-15        SECTION 8.  Chapter 118, Acts of the 52nd Legislature, 1951
  23-16  (Article 4528c, Vernon's Texas Civil Statutes), is amended by
  23-17  adding Sections 10A through 10F to read as follows:
  23-18        Sec. 10A.  RECORDS OF COMPLAINTS.  (a)  The Board shall keep
  23-19  an information file about each complaint filed with the Board.  The
  23-20  Board's information file shall be kept current and contain a record
  23-21  for each complaint of:
  23-22              (1)  all persons contacted in relation to the
  23-23  complaint;
  23-24              (2)  a summary of findings made at each step of the
  23-25  complaint process;
  23-26              (3)  an explanation of the legal basis and reason for a
  23-27  complaint that is dismissed; and
   24-1              (4)  other relevant information.
   24-2        (b)  If a written complaint is filed with the Board that the
   24-3  Board has authority to resolve, the Board, at least as frequently
   24-4  as quarterly and until final disposition of the complaint, shall
   24-5  notify the parties to the complaint of the status of the complaint
   24-6  unless the notice would jeopardize an undercover investigation.
   24-7        (c)  The Board by rule shall adopt a form to standardize
   24-8  information concerning complaints made to the Board.  The Board by
   24-9  rule shall prescribe information to be provided to a person when
  24-10  the person files a complaint with the Board.
  24-11        (d)  The Board shall provide reasonable assistance to a
  24-12  person who wishes to file a complaint with the Board.
  24-13        Sec. 10B.  COMPLAINT INVESTIGATION AND DISPOSITION.  (a)  The
  24-14  Board shall adopt rules concerning the investigation of a complaint
  24-15  filed with the Board.  The rules adopted under this subsection
  24-16  shall:
  24-17              (1)  distinguish between categories of complaints;
  24-18              (2)  ensure that complaints are not dismissed without
  24-19  appropriate consideration;
  24-20              (3)  require that the Board be advised of a complaint
  24-21  that is dismissed and that a letter be sent to the person who filed
  24-22  the complaint explaining the action taken on the dismissed
  24-23  complaint;
  24-24              (4)  ensure that the person who filed the complaint has
  24-25  an opportunity to explain the allegations made in the complaint;
  24-26  and
  24-27              (5)  prescribe guidelines concerning the categories of
   25-1  complaints that require the use of a private investigator and the
   25-2  procedures for the Board to obtain the services of a private
   25-3  investigator.
   25-4        (b)  The Board shall dispose of all complaints in a timely
   25-5  manner.  The Board shall establish a time line for conducting each
   25-6  phase of a complaint that is under the control of the Board not
   25-7  later than the 30th day after the date the complaint is received by
   25-8  the Board.  The time line shall be kept in the information file for
   25-9  the complaint, and all parties shall be notified of the projected
  25-10  time requirements for pursuing the complaint.  A change in the time
  25-11  line must be noted in the complaint information file and all
  25-12  parties to the complaint must be notified not later than the
  25-13  seventh day after the date the change is made.
  25-14        (c)  The executive director shall notify the Board of a
  25-15  complaint that extends beyond the time prescribed by the Board for
  25-16  resolving the complaint so that the Board may take necessary action
  25-17  on the complaint.
  25-18        Sec. 10C.  INFORMAL PROCEEDINGS.  (a)  The Board by rule
  25-19  shall adopt procedures governing:
  25-20              (1)  informal disposition of a contested case under
  25-21  Subsection (e), Section 13, Administrative Procedure and Texas
  25-22  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
  25-23  its subsequent amendments; and
  25-24              (2)  informal proceedings held in compliance with
  25-25  Subsection (c), Section 18, Administrative Procedure and Texas
  25-26  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
  25-27  its subsequent amendments.
   26-1        (b)  Rules adopted under this section must provide the
   26-2  complainant and the licensee an opportunity to be heard and must
   26-3  require the presence of a representative of the Board's legal staff
   26-4  or of the office of the attorney general to advise the Board or the
   26-5  Board's employees.
   26-6        Sec. 10D.  MONITORING OF LICENSEE.  The Board by rule shall
   26-7  develop a system for monitoring licensees' compliance with the
   26-8  requirements of this Act.  Rules adopted under this section shall
   26-9  include procedures for monitoring a licensee who is ordered by the
  26-10  Board to perform certain acts to ascertain that the licensee
  26-11  performs the required acts and to identify and monitor licensees
  26-12  who represent a risk to the public.
  26-13        Sec. 10E.  ADMINISTRATIVE PENALTIES.  (a)  The Board may
  26-14  impose an administrative penalty against a person licensed or
  26-15  regulated under this Act who violates this Act or a rule or order
  26-16  adopted under this Act.
  26-17        (b)  The penalty for each violation may be in an amount not
  26-18  to exceed $1,000.  Each day a violation continues or occurs is a
  26-19  separate violation for purposes of imposing a penalty.
  26-20        (c)  The amount of the penalty shall be based on:
  26-21              (1)  the seriousness of the violation, including the
  26-22  nature, circumstances, extent, and gravity of any prohibited acts,
  26-23  and the hazard or potential hazard created to the health, safety,
  26-24  or economic welfare of the public;
  26-25              (2)  the economic harm to property or the environment
  26-26  caused by the violation;
  26-27              (3)  the history of previous violations;
   27-1              (4)  the amount necessary to deter future violations;
   27-2              (5)  efforts to correct the violation; and
   27-3              (6)  any other matter that justice may require.
   27-4        (d)  If the executive director determines that a violation
   27-5  has occurred, the executive director may issue to the Board a
   27-6  report that states the facts on which the determination is based
   27-7  and the executive director's recommendation on the imposition of a
   27-8  penalty, including a recommendation on the amount of the penalty.
   27-9        (e)  Within 14 days after the date the report is issued, the
  27-10  executive director shall give written notice of the report to the
  27-11  person.  The notice may be given by certified mail.  The notice
  27-12  must include a brief summary of the alleged violation and a
  27-13  statement of the amount of the recommended penalty and must inform
  27-14  the person that the person has a right to a hearing on the
  27-15  occurrence of the violation, the amount of the penalty, or both the
  27-16  occurrence of the violation and the amount of the penalty.
  27-17        (f)  Within 20 days after the date the person receives the
  27-18  notice, the person in writing may accept the determination and
  27-19  recommended penalty of the executive director or may make a written
  27-20  request for a hearing on the occurrence of the violation, the
  27-21  amount of the penalty, or both the occurrence of the violation and
  27-22  the amount of the penalty.
  27-23        (g)  If the person accepts the determination and recommended
  27-24  penalty of the executive director, the Board by order shall approve
  27-25  the determination and impose the recommended penalty.
  27-26        (h)  If the person requests a hearing or fails to respond
  27-27  timely to the notice, the executive director shall set a hearing
   28-1  and give notice of the hearing to the person.  The hearing shall be
   28-2  held by an administrative law judge of the State Office of
   28-3  Administrative Hearings.  The administrative law judge shall make
   28-4  findings of fact and conclusions of law.  The administrative law
   28-5  judge shall promptly issue to the Board a proposal for a decision
   28-6  about the occurrence of the violation and the amount of a proposed
   28-7  penalty.  Based on the findings of fact, conclusions of law, and
   28-8  proposal for a decision, the Board by order may find that a
   28-9  violation has occurred and impose a penalty or may find that no
  28-10  violation occurred.
  28-11        (i)  The notice of the Board's order given to the person
  28-12  under the Administrative Procedure and Texas Register Act (Article
  28-13  6252-13a, Vernon's Texas Civil Statutes) and its subsequent
  28-14  amendments must include a statement of the right of the person to
  28-15  judicial review of the order.
  28-16        (j)  Within 30 days after the date the Board's order is final
  28-17  as provided by Subsection (c), Section 16, Administrative Procedure
  28-18  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  28-19  Statutes), and its subsequent amendments, the person shall:
  28-20              (1)  pay the amount of the penalty;
  28-21              (2)  pay the amount of the penalty and file a petition
  28-22  for judicial review contesting the occurrence of the violation, the
  28-23  amount of the penalty, or both the occurrence of the violation and
  28-24  the amount of the penalty; or
  28-25              (3)  without paying the amount of the penalty, file a
  28-26  petition for judicial review contesting the occurrence of the
  28-27  violation, the amount of the penalty, or both the occurrence of the
   29-1  violation and the amount of the penalty.
   29-2        (k)  Within the 30-day period, a person who acts under
   29-3  Subsection (j)(3) of this section may:
   29-4              (1)  stay enforcement of the penalty by:
   29-5                    (A)  paying the amount of the penalty to the
   29-6  court for placement in an escrow account; or
   29-7                    (B)  giving to the court a supersedeas bond
   29-8  approved by the court for the amount of the penalty and that is
   29-9  effective until all judicial review of the Board's order is final;
  29-10  or
  29-11              (2)  request the court to stay enforcement of the
  29-12  penalty by:
  29-13                    (A)  filing with the court a sworn affidavit of
  29-14  the person stating that the person is financially unable to pay the
  29-15  amount of the penalty and is financially unable to give the
  29-16  supersedeas bond; and
  29-17                    (B)  giving a copy of the affidavit to the
  29-18  executive director by certified mail.
  29-19        (l)  An executive director who receives a copy of an
  29-20  affidavit under Subsection (k)(2) of this section may file with the
  29-21  court, within five days after the date the copy is received, a
  29-22  contest to the affidavit.  The court shall hold a hearing on the
  29-23  facts alleged in the affidavit as soon as practicable and shall
  29-24  stay the enforcement of the penalty on finding that the alleged
  29-25  facts are true.  The person who files an affidavit has the burden
  29-26  of proving that the person is financially unable to pay the amount
  29-27  of the penalty and to give a supersedeas bond.
   30-1        (m)  If the person does not pay the amount of the penalty and
   30-2  the enforcement of the penalty is not stayed, the executive
   30-3  director may refer the matter to the attorney general for
   30-4  collection of the amount of the penalty.
   30-5        (n)  Judicial review of the order of the Board:
   30-6              (1)  is instituted by filing a petition as provided by
   30-7  Section 19, Administrative Procedure and Texas Register Act
   30-8  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
   30-9  subsequent amendments; and
  30-10              (2)  is under the substantial evidence rule.
  30-11        (o)  If the court sustains the occurrence of the violation,
  30-12  the court may uphold or reduce the amount of the penalty and order
  30-13  the person to pay the full or reduced amount of the penalty.  If
  30-14  the court does not sustain the occurrence of the violation, the
  30-15  court shall order that no penalty is owed.
  30-16        (p)  When the judgment of the court becomes final, the court
  30-17  shall proceed under this subsection.  If the person paid the amount
  30-18  of the penalty and if that amount is reduced or is not upheld by
  30-19  the court, the court shall order that the appropriate amount plus
  30-20  accrued interest be remitted to the person.  The rate of the
  30-21  interest is the rate charged on loans to depository institutions by
  30-22  the New York Federal Reserve Bank, and the interest shall be paid
  30-23  for the period beginning on the date the penalty was paid and
  30-24  ending on the date the penalty is remitted.  If the person gave a
  30-25  supersedeas bond and if the amount of the penalty is not upheld by
  30-26  the court, the court shall order the release of the bond.  If the
  30-27  person gave a supersedeas bond and if the amount of the penalty is
   31-1  reduced, the court shall order the release of the bond after the
   31-2  person pays the amount.
   31-3        (q)  A penalty collected under this section shall be remitted
   31-4  to the comptroller for deposit in the general revenue fund.
   31-5        (r)  All proceedings under this section are subject to the
   31-6  Administrative Procedure and Texas Register Act (Article 6252-13a,
   31-7  Vernon's Texas Civil Statutes) and its subsequent amendments.
   31-8        Sec. 10F.  SCHEDULE OF SANCTIONS.  The schedule of sanctions
   31-9  adopted by the Board by rule shall be used by the State Office of
  31-10  Administrative Hearings for any sanction imposed as the result of a
  31-11  hearing conducted by that office.
  31-12        SECTION 9.  Section 11, Chapter 118, Acts of the 52nd
  31-13  Legislature, 1951 (Article 4528c, Vernon's Texas Civil Statutes),
  31-14  is amended by adding Subsection (c) to read as follows:
  31-15        (c)  A person who violates this Act is liable to the state
  31-16  for a civil penalty that does not exceed $1,000 a day.  The civil
  31-17  penalty may be collected in a suit initiated by the Board.
  31-18        SECTION 10.  (a)  The changes in law made by this Act in the
  31-19  qualifications of members of the Board of Vocational Nurse
  31-20  Examiners do not affect the entitlement of a member appointed
  31-21  before September 1, 1993, to continue to hold office for the term
  31-22  for which the member was appointed.  The changes in the
  31-23  qualifications apply only to a member appointed on or after
  31-24  September 1, 1993.
  31-25        (b)  As soon as possible on or after September 1, 1993, the
  31-26  governor shall appoint three additional public members to the Board
  31-27  of Vocational Nurse Examiners.  In making the initial appointments
   32-1  of the new members, the governor shall designate one for a term
   32-2  expiring on the regular expiration date of board members in 1995,
   32-3  one for a term expiring on the regular expiration date of board
   32-4  members in 1997, and one for a term expiring on the regular
   32-5  expiration date of board members in 1999.
   32-6        SECTION 11.  This Act takes effect September 1, 1993.
   32-7        SECTION 12.  The importance of this legislation and the
   32-8  crowded condition of the calendars in both houses create an
   32-9  emergency and an imperative public necessity that the
  32-10  constitutional rule requiring bills to be read on three several
  32-11  days in each house be suspended, and this rule is hereby suspended.