By:  Parker, Moncrief                                 S.B. No. 1062
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the continuation and operation of the Texas State Board
    1-2  of Medical Examiners and to the regulation of the practice of
    1-3  medicine, including the practice of acupuncture; providing
    1-4  penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subdivision (6), Subsection (a), Section 1.03,
    1-7  Medical Practice Act (Article 4495b, Vernon's Texas Civil
    1-8  Statutes), is amended to read as follows:
    1-9              (6)  "Medical peer review committee" or "professional
   1-10  review body" means a committee of a health-care entity, the
   1-11  governing board of a health-care entity, or the medical staff of a
   1-12  health-care entity, provided the committee or medical staff
   1-13  operates pursuant to written bylaws that have been approved by the
   1-14  policy-making body or the governing board of the health-care entity
   1-15  and authorized to evaluate the quality of medical and health-care
   1-16  services or the competence of physicians, including those functions
   1-17  specified by Section 85.204, Health and Safety Code, and its
   1-18  subsequent amendments.  Such a committee includes the employees and
   1-19  agents of the committee, including assistants, investigators,
   1-20  intervenors, attorneys, and any other persons or organizations that
   1-21  serve the committee in any capacity.
   1-22        SECTION 2.  Section 2.03, Medical Practice Act (Article
   1-23  4495b, Vernon's Texas Civil Statutes), is amended to read as
   1-24  follows:
    2-1        Sec. 2.03.  Appointment to Board.  Members of the board shall
    2-2  be appointed by the governor and confirmed by the senate.  Any
    2-3  vacancy on the board shall be filled by appointment of the
    2-4  governor.  Any appointment made shall be without regard to race,
    2-5  color, disability <creed>, sex, religion, age, or national origin,
    2-6  except that a person younger than 18 years of age is not eligible
    2-7  for appointment.
    2-8        SECTION 3.  Section 2.04, Medical Practice Act (Article
    2-9  4495b, Vernon's Texas Civil Statutes), is amended to read as
   2-10  follows:
   2-11        Sec. 2.04.  Removal from Office.  (a)  It is a ground for
   2-12  removal from the board if a member:
   2-13              (1)  does not have at the time of appointment the
   2-14  qualifications required by Sections 2.05(a), (b), (c), (d), and (e)
   2-15  of this Act;
   2-16              (2)  does not maintain during service on the board the
   2-17  qualifications required by Sections 2.05(a), (b), (c), (d), and (e)
   2-18  of this Act;
   2-19              (3)  violates a prohibition established by Section
   2-20  2.05(f), (g), (h), (j), or (k) of this Act;
   2-21              (4)  cannot discharge the member's duties for a
   2-22  substantial part of the term for which the member is appointed
   2-23  because of illness or disability; or
   2-24              (5)  is absent from more than half of the regularly
   2-25  scheduled board meetings that the member is eligible to attend
   2-26  during a calendar year<, during a member's service on the board,
   2-27  the member fails to meet the qualifications set forth in this Act
    3-1  for members of the board.  The validity of an action of the board
    3-2  is not affected by the fact that it was taken when a ground for
    3-3  removal of a member of the board existed>.
    3-4        (b)  The validity of an action of the board is not affected
    3-5  by the fact that it is taken when a ground for removal of a board
    3-6  member exists <Each member of the board shall be present for at
    3-7  least one-half of the regularly scheduled board meetings held each
    3-8  year.  Failure of a board member to meet this requirement is
    3-9  grounds for removal of the member from the board and the removal
   3-10  creates a vacancy on the board>.
   3-11        (c)  If the executive director has knowledge that a potential
   3-12  ground for removal exists, the executive director shall notify the
   3-13  president of the board of the ground.  The president shall then
   3-14  notify the governor that a potential ground for removal exists.
   3-15        SECTION 4.  Section 2.05, Medical Practice Act (Article
   3-16  4495b, Vernon's Texas Civil Statutes), is amended by amending
   3-17  Subsections (b), (d), (g), (h), and (i) and adding Subsections (j),
   3-18  (k), and (l) to read as follows:
   3-19        (b)  Seven <Nine> members of the board must:
   3-20              (1)  be learned and eminent physicians licensed to
   3-21  practice medicine within this state for at least three years prior
   3-22  to appointment and be graduates of a reputable medical school or
   3-23  college with a degree of doctor of medicine (M.D.); and
   3-24              (2)  have been actively engaged in the practice of
   3-25  medicine for at least five years immediately preceding their
   3-26  appointment.
   3-27        (d)  Five <Three> members of the board must be public
    4-1  representatives who are not licensed to practice medicine, who are
    4-2  not financially involved in any organization subject to the
    4-3  regulation of the board, and who are not providers of health care.
    4-4  "Provider of health care" means:
    4-5              (1)  an individual who is a direct provider of health
    4-6  care (including but not limited to a dentist, registered nurse,
    4-7  licensed vocational nurse, chiropractor, podiatrist, physician
    4-8  assistant, psychologist, athletic trainer, physical therapist,
    4-9  social psychotherapist, pharmacist, optometrist, hospital
   4-10  administrator, or nursing home administrator) in that the
   4-11  individual's primary current activity is the provision of health
   4-12  care to individuals or the administration of facilities or
   4-13  institutions (including but not limited to hospitals, long-term
   4-14  care facilities, out-patient facilities, and health maintenance
   4-15  organizations) in which such care is provided and, when required by
   4-16  law or otherwise, the individual has received professional or other
   4-17  training in the provision of such care or in such administration
   4-18  and is licensed or certified or holds himself out for such
   4-19  provision or administration;
   4-20              (2)  one who is an indirect provider of health care in
   4-21  that the individual holds a fiduciary position with or has a
   4-22  fiduciary interest in an entity described below in this
   4-23  subdivision; for purposes of this subdivision, a fiduciary position
   4-24  or interest as applied to any entity means a position or interest
   4-25  with respect to such entity affected with the character of a trust,
   4-26  including members of boards of directors and officers, majority
   4-27  shareholders, or agents, and receivers (either directly or through
    5-1  their spouses) of more than one-tenth of their annual income from
    5-2  any one or combination of fees or other compensation for research
    5-3  into or instruction in the provision of health-care entities (or
    5-4  associations or organizations composed of such entities) engaged
    5-5  (or comprised of individuals who are engaged) in the provision of
    5-6  health care or in the provision of health care and entities (or
    5-7  associations or organizations composed of such entities engaged in
    5-8  producing drugs or other such articles);
    5-9              (3)  one who is a member of the immediate family of an
   5-10  individual described in this subsection; for purposes of this
   5-11  subsection "immediate family" as applied to any individual includes
   5-12  only his parents, spouse, children, brothers, and sisters who
   5-13  reside in the same household;
   5-14              (4)  one who is engaged in or employed by an entity
   5-15  issuing any policy or contract of individual or group health
   5-16  insurance or hospital or medical service benefits; or
   5-17              (5)  one who is employed by, on the board of directors
   5-18  of, or holds elective office by or under the authority of any unit
   5-19  of federal, state, or local government or any organization that
   5-20  receives a significant part of its funding from any such unit of
   5-21  federal, state, or local government.
   5-22        (g)  An officer, employee, or paid consultant of a Texas
   5-23  trade or professional association in the field of health care may
   5-24  not be a member or employee of the board who is exempt from the
   5-25  state's position classification plan or is compensated at or above
   5-26  the amount prescribed by the General Appropriations Act for step 1,
   5-27  salary group 17, of the position classification salary schedule.
    6-1        (h)  A person who is the spouse of an officer, manager, or
    6-2  paid consultant of a Texas trade or professional association in the
    6-3  field of health care may not be a board member and may not be a
    6-4  board employee who is exempt from the state's position
    6-5  classification plan or is compensated at or above the amount
    6-6  prescribed by the General Appropriations Act for step 1, salary
    6-7  group 17, of the position classification salary schedule.
    6-8        (i)  For the purposes of this section, a "Texas trade or
    6-9  professional association" is a nonprofit, cooperative, and
   6-10  voluntarily joined association of business or professional
   6-11  competitors in this state designed to assist its members and its
   6-12  industry or profession in dealing with mutual business or
   6-13  professional problems and in promoting their common interest.
   6-14        (j)  A person may not serve as a member of the board if the
   6-15  person is required to register as a lobbyist under Chapter 305,
   6-16  Government Code, and its subsequent amendments, because of the
   6-17  person's activities for compensation on behalf of a profession
   6-18  related to the operation of the board  <A person required to
   6-19  register as a lobbyist under Chapter 305, Government Code, by
   6-20  virtue of his activities on behalf of a trade or professional
   6-21  association in the regulated profession may not act as a member of
   6-22  the board>.
   6-23        (k) <(h)>  A person is ineligible for appointment to the
   6-24  board if, at the time of appointment, the person is a stockholder,
   6-25  paid full-time faculty member, or a member of the board of trustees
   6-26  of a medical school.
   6-27        (l) <(i)>  All board members must take the official oath.
    7-1        SECTION 5.  Subsection (a), Section 2.07, Medical Practice
    7-2  Act (Article 4495b, Vernon's Texas Civil Statutes), is amended to
    7-3  read as follows:
    7-4        (a)  Not later than December after each regular session of
    7-5  the legislature <At the first meeting of the board after each
    7-6  biennial appointment>, the governor shall appoint from the members
    7-7  of the board a president and the board shall elect from its members
    7-8  a <president,> vice-president, secretary-treasurer, and other
    7-9  officers as are required, in the opinion of the board, to carry out
   7-10  its duties.
   7-11        SECTION 6.  The Medical Practice Act (Article 4495b, Vernon's
   7-12  Texas Civil Statutes), is amended by adding Section 2.081 to read
   7-13  as follows:
   7-14        Sec. 2.081.  TRAINING AND GUIDELINES FOR MEMBERS OF THE
   7-15  BOARD.  (a)  The board shall establish a training program for the
   7-16  members of the board.
   7-17        (b)  Before a member of the board may assume the member's
   7-18  duties, the member must complete at least one course of the
   7-19  training program established under this section, and before the
   7-20  member may be confirmed by the senate, the member must pass an
   7-21  examination given in conjunction with the attorney general on
   7-22  subjects described by Subsections (c)(7), (8), and (9) of this
   7-23  section.
   7-24        (c)  A training program established under this section shall
   7-25  provide information to a participant regarding:
   7-26              (1)  the enabling legislation that created the board;
   7-27              (2)  the programs operated by the board;
    8-1              (3)  the role and functions of the board;
    8-2              (4)  the rules of the board with an emphasis on the
    8-3  rules that relate to disciplinary and investigatory authority;
    8-4              (5)  the current budget for the board;
    8-5              (6)  the results of the most recent formal audit of the
    8-6  board;
    8-7              (7)  the requirements of the:
    8-8                    (A)  open meetings law, Chapter 271, Acts of the
    8-9  60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
   8-10  Texas Civil Statutes), and its subsequent amendments;
   8-11                    (B)  open records law, Chapter 424, Acts of the
   8-12  63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
   8-13  Texas Civil Statutes), and its subsequent amendments; and
   8-14                    (C)  Administrative Procedure and Texas Register
   8-15  Act (Article 6252-13a, Vernon's Texas Civil Statutes) and its
   8-16  subsequent amendments;
   8-17              (8)  the requirements of the conflict of interest laws
   8-18  and other laws relating to public officials; and
   8-19              (9)  any applicable ethics policies adopted by the
   8-20  board or the Texas Ethics Commission.
   8-21        (d)  In developing the training requirements provided for in
   8-22  this section, the board shall consult with the governor's office,
   8-23  the attorney general's office, and the Texas Ethics Commission.
   8-24        (e)  In the event that another state agency or entity is
   8-25  given the authority to establish the training requirements, the
   8-26  board shall allow that training in lieu of developing its own
   8-27  program.
    9-1        SECTION 7.  Section 2.09, Medical Practice Act (Article
    9-2  4495b, Vernon's Texas Civil Statutes), is amended by amending
    9-3  Subsections (b), (c), (g), (k), (s), and (u) and adding Subsections
    9-4  (b-1), (x), (y), (z), and (aa) to read as follows:
    9-5        (b)  The board shall develop and implement policies that
    9-6  clearly define the respective responsibilities of the board and the
    9-7  staff of the board.  The board shall appoint an executive director
    9-8  who shall be its chief executive and administrative officer, who
    9-9  shall be charged with the primary responsibility of administering,
   9-10  enforcing, and carrying out the provisions of the Medical Practice
   9-11  Act under the control and supervision and at the direction of the
   9-12  board.  The executive director shall hold such position at the
   9-13  pleasure of board and may be discharged at any time.  The board may
   9-14  act under its rules through the executive director, an executive
   9-15  committee, or other committee, unless otherwise specified in this
   9-16  Act.  The executive committee shall be the president,
   9-17  vice-president, and secretary-treasurer except where otherwise
   9-18  provided in this Act<.  Any duty of the secretary-treasurer in this
   9-19  Act may be performed by the executive director within the
   9-20  discretion of the board.  Any reference to secretary-treasurer
   9-21  shall have the same meaning as executive director when so
   9-22  designated by the board>.
   9-23        (b-1)  The executive director may employ a chief operating
   9-24  officer who shall be primarily responsible for administering,
   9-25  implementing, and monitoring systems and necessary measures to
   9-26  promote quality and efficiency of ongoing board operations and
   9-27  other duties as may be assigned by the executive director.  If the
   10-1  board appoints an executive director who is not a physician
   10-2  licensed to practice in this state, the executive director shall
   10-3  appoint a medical director who is a physician licensed to practice
   10-4  in this state and who shall be primarily responsible for
   10-5  implementing and maintaining policies, systems, and measures
   10-6  regarding clinical and professional issues and determinations.  The
   10-7  chief operating officer or medical director shall act under the
   10-8  control and supervision and at the direction of the executive
   10-9  director.
  10-10        (c)  The board may make rules and establish fees as are
  10-11  reasonable relating to the granting and extension of expiration
  10-12  dates of temporary licenses and the placing of licensees on
  10-13  inactive status.  The board shall by rule set time limits on the
  10-14  periods for which licensees may hold temporary licenses or maintain
  10-15  inactive status.
  10-16        (g)  A person may not serve as a member of the board or act
  10-17  as the general counsel to the board if the person is required to
  10-18  register as a lobbyist under Chapter 305, Government Code, and its
  10-19  subsequent amendments, because of the person's activities for
  10-20  compensation on behalf of a profession related to the operation of
  10-21  the board <who is required personally to register as a lobbyist
  10-22  under Chapter 305, Government Code, representing physicians,
  10-23  health-care entities, or health-care related professions, may not
  10-24  be employed by the board in any capacity>.
  10-25        (k)  The board <shall establish> by rule shall establish
  10-26  reasonable and necessary fees so that the fees, in the aggregate,
  10-27  produce sufficient revenue to cover the cost of administering this
   11-1  Act.  The fees set by the board may be adjusted so that the total
   11-2  fees collected shall be sufficient to meet the expenses of
   11-3  administering this Act.  The board may not set a fee for an amount
   11-4  less than the amount of that fee on September 1, 1993 <a reasonable
   11-5  charge for those fees not specifically determined but authorized by
   11-6  this Act>.  The board may not waive collection of any fee or
   11-7  penalty.  Except as otherwise provided by this Act, the <The> board
   11-8  shall deposit <place> all fees received under authority of this
   11-9  Act, not otherwise specified, in the state treasury to the credit
  11-10  of a special account in the general revenue fund.  The special
  11-11  account may be used only to cover the costs of administering and
  11-12  enforcing this Act <into the medical licensing fund>.  The board is
  11-13  authorized and shall by annual budget determine the manner of
  11-14  handling the funds and the purpose, consistent with this Act, for
  11-15  which the same may be used.  The special account is exempt from
  11-16  Section 403.094(h), Government Code, and its subsequent amendments
  11-17  <The budgeted expenses authorized by the board shall not be a
  11-18  charge upon the general revenue of the state nor paid from the
  11-19  general revenue>.
  11-20        (s)(1)  The board shall prepare information of public
  11-21  <consumer> interest describing the functions of the board and the
  11-22  board's procedures by which complaints are filed with and resolved
  11-23  by the board.  The board shall make the information available to
  11-24  the public and appropriate state agencies.
  11-25              (2)  The board by rule shall establish methods by which
  11-26  the public and licensees of the board are notified of the name,
  11-27  mailing address, and telephone number of the board for the purpose
   12-1  of directing complaints to the board.  The board may provide for
   12-2  that notification:
   12-3                    (A)  on each registration form, application, or
   12-4  written contract for services of an individual or entity regulated
   12-5  under this Act;
   12-6                    (B)  on a sign prominently displayed in the place
   12-7  of business of each individual or entity regulated under this Act;
   12-8  or
   12-9                    (C)  in a bill for services provided by an
  12-10  individual or entity regulated under this Act.
  12-11              (3)  The board shall list along with its regular
  12-12  telephone number the toll-free telephone number that may be called
  12-13  to present a complaint about a health professional if the toll-free
  12-14  number is established under other state law <regulatory functions
  12-15  of the board and describing the board's procedures by which
  12-16  consumer complaints are filed with and resolved by the board>.  On
  12-17  written request the board shall make information available to the
  12-18  general public for a reasonable fee to cover expenses and
  12-19  appropriate state agencies including a summary of any previous
  12-20  disciplinary orders by the board against a specific physician
  12-21  licensed in this state, the date of the order, and the current
  12-22  status of the order.  The board shall establish an eight-hour
  12-23  toll-free telephone number to make the information immediately
  12-24  available to any caller if the board is not required to establish a
  12-25  toll-free telephone number under other state law.
  12-26        (u)  The executive director or the executive director's
  12-27  designee shall develop an intraagency career ladder program.  The
   13-1  program shall require intraagency posting of all non-entry-level
   13-2  positions concurrently with any public posting <board shall cause
   13-3  to be developed an intraagency career ladder program, one part of
   13-4  which shall be the intraagency posting of each job opening with the
   13-5  board in a nonentry-level position.  The intraagency posting shall
   13-6  be made at least 10 days before any public posting>.
   13-7        (x)  Each board member shall comply with the board member
   13-8  training requirements established by any other state agency that is
   13-9  given authority to establish the requirements for the board.
  13-10        (y)  The board shall provide to its members and employees, as
  13-11  often as necessary, information regarding their qualifications for
  13-12  office or employment under this Act and their responsibilities
  13-13  under applicable laws relating to standards of conduct for state
  13-14  officers or employees.
  13-15        (z)  The board shall develop and implement policies that
  13-16  provide the public with a reasonable opportunity to appear before
  13-17  the board and to speak on any issue under the jurisdiction of the
  13-18  board.
  13-19        (aa)  The board shall prepare and maintain a written plan
  13-20  that describes how a person who does not speak English can be
  13-21  provided reasonable access to the board's programs.  The board
  13-22  shall also comply with federal and state laws for program and
  13-23  facility accessibility.
  13-24        SECTION 8.  Subchapter B, Medical Practice Act (Article
  13-25  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
  13-26  2.10 to read as follows:
  13-27        Sec. 2.10.  EQUAL EMPLOYMENT OPPORTUNITY.  (a)  The executive
   14-1  director or the executive director's designee shall prepare and
   14-2  maintain a written policy statement to assure implementation of a
   14-3  program of equal employment opportunity under which all personnel
   14-4  decisions are made without regard to race, color, disability, sex,
   14-5  religion, age, or national origin.  The policy statement must
   14-6  include:
   14-7              (1)  personnel policies, including policies relating to
   14-8  recruitment, evaluation, selection, appointment, training, and
   14-9  promotion of personnel, that are in compliance with requirements of
  14-10  the Commission on Human Rights Act (Article 5221k, Vernon's Texas
  14-11  Civil Statutes) and its subsequent amendments;
  14-12              (2)  a comprehensive analysis of the board's work force
  14-13  that meets federal and state guidelines;
  14-14              (3)  procedures by which a determination can be made of
  14-15  significant underutilization in the board's work force of all
  14-16  persons for whom federal or state guidelines encourage a more
  14-17  equitable balance; and
  14-18              (4)  reasonable methods to appropriately address those
  14-19  areas of significant underutilization.
  14-20        (b)  A policy statement prepared under Subsection (a) of this
  14-21  section must cover an annual period, be updated annually and
  14-22  reviewed by the Commission on Human Rights for compliance with
  14-23  requirements of the Commission on Human Rights Act (Article 5221k,
  14-24  Vernon's Texas Civil Statutes) and its subsequent amendments, and
  14-25  be filed with the governor's office.
  14-26        (c)  The governor's office shall deliver a biennial report to
  14-27  the legislature based on the information received under Subsection
   15-1  (b) of this section.  The report may be made separately or as a
   15-2  part of other biennial reports made to the legislature.
   15-3        SECTION 9.  Subsections (a), (b), (c), (f), (h), and (i),
   15-4  Section 3.01, Medical Practice Act (Article 4495b, Vernon's Texas
   15-5  Civil Statutes), are amended to read as follows:
   15-6        (a)  All persons now lawfully qualified to practice medicine
   15-7  in this state, or who are hereafter licensed for the practice of
   15-8  medicine by the board, shall be registered as practitioners with
   15-9  the board on or before the first day of January and thereafter
  15-10  shall register in like manner annually, on or before the first day
  15-11  of January of each succeeding year.  Each person so registered with
  15-12  the board shall pay, in connection with each annual registration
  15-13  and for the receipt hereinafter provided for, a fee established by
  15-14  the board which fee shall accompany the application of each person
  15-15  for registration.  The payment shall be made to the board.  Every
  15-16  person so registered shall file with the board a written
  15-17  application for annual registration, setting forth his name and
  15-18  mailing address, the place or places where the applicant is engaged
  15-19  in the practice of medicine, and other necessary information
  15-20  prescribed by the board.  If the person is licensed for the
  15-21  practice of medicine by another state, the District of Columbia, a
  15-22  territory of the United States, Canada, any other country, or the
  15-23  uniformed services of the United States, the application must
  15-24  include a description of any investigations the person knows are in
  15-25  progress and of any sanctions imposed by or disciplinary matters
  15-26  pending in the state, district, territory, country, or service.
  15-27        (b)  Physicians not otherwise licensed by the board who are
   16-1  participating in graduate medical education training programs
   16-2  approved by the board may be issued institutional permits as
   16-3  provided by rules of the board.  A reasonable fee shall be charged
   16-4  and deposited into the special account established by Section
   16-5  2.09(k) of this Act <medical registration fund>.  This permit does
   16-6  not authorize the performance of medical acts except as the acts
   16-7  are performed as a part of graduate medical education programs and
   16-8  under the supervision of a licensed practitioner of medicine.
   16-9        (c)(1)  A person may renew an unexpired license by paying to
  16-10  the board on or before the expiration date of the license the
  16-11  required renewal fee.
  16-12              (2)  If a person's license has been expired for 90 days
  16-13  or less, the person may renew the license by paying to the board
  16-14  the required renewal fee and a fee that is one-half of the
  16-15  examination fee for the license.
  16-16              (3)  If a person's license has been expired for longer
  16-17  than 90 days but less than one year, the person may renew the
  16-18  license by paying to the board all unpaid renewal fees and a fee
  16-19  that is equal to the examination fee for the license.
  16-20              (4)  If a person's license has been expired for one
  16-21  year, it is considered to have been canceled, and the person may
  16-22  not renew the license.  The person may obtain a new license by
  16-23  submitting to reexamination and complying with the requirements and
  16-24  procedures for obtaining an original license.
  16-25              (5)  The board may renew without examination an expired
  16-26  license of a person who was licensed in this state, moved to
  16-27  another state, and is currently licensed and has been in practice
   17-1  in the other state for not more than two years preceding
   17-2  application.  The person must pay to the board a fee that is equal
   17-3  to the examination fee for the license.  <Failure of any licensee
   17-4  to pay the annual license renewal fee on or before the 90th day
   17-5  after the date it is due automatically cancels his licensure.  Any
   17-6  licensee whose license has been canceled because of failure to pay
   17-7  the annual license renewal fee may secure reinstatement of his
   17-8  license at any time within that license year upon payment of the
   17-9  delinquent fee together with a penalty in an amount as the board
  17-10  may determine to be reasonable.  After expiration of the license
  17-11  year for which the license fee was not paid, no license shall be
  17-12  reinstated except upon application and satisfaction of other
  17-13  conditions as the board may establish and payment of delinquent
  17-14  fees and a penalty to be assessed by the board.>
  17-15        (f)  <In performing its duties as provided in this Act, the
  17-16  board may act through the secretary-treasurer of the board.  The
  17-17  secretary-treasurer is entitled to a salary to be fixed by the
  17-18  legislature in its General Appropriations Act for the performance
  17-19  of duties under this Act.>  The executive director
  17-20  <secretary-treasurer> of the board shall file a surety bond with
  17-21  the board.  The bond shall be in an amount not less than $10,000,
  17-22  be in compliance with the insurance laws of the state, and be
  17-23  payable to the state for the use of the state if the executive
  17-24  director <secretary-treasurer> does not faithfully discharge the
  17-25  duties of the office.  The board shall pay the premium on the bond.
  17-26  <The salary shall be paid out of said medical registration fund and
  17-27  shall not be in any way a charge upon the general revenue of the
   18-1  state.>
   18-2        (h)  The <secretary-treasurer or the> executive director
   18-3  shall review each application for licensure by examination or
   18-4  reciprocity and shall recommend to the board all applicants
   18-5  eligible for licensure.  The <secretary-treasurer or the> executive
   18-6  director also shall report to the board the names of all applicants
   18-7  determined to be ineligible for licensure, together with the
   18-8  reasons for each recommendation.  An applicant deemed ineligible
   18-9  for licensure by the <secretary-treasurer or the> executive
  18-10  director may request review of such recommendation by a committee
  18-11  of the board within 20 days of receipt of such notice, and the
  18-12  <secretary-treasurer or the> executive director may refer any
  18-13  application to said committee for a recommendation concerning
  18-14  eligibility.  If the committee finds the applicant ineligible for
  18-15  licensure, such recommendation, together with the reasons therefor,
  18-16  shall be submitted to the board unless the applicant requests a <an
  18-17  appellate> hearing <before a hearing examiner appointed by the
  18-18  board> within 20 days of receipt of notice of the committee's
  18-19  determination.  The hearing shall be before an administrative law
  18-20  judge of the State Office of Administrative Hearings and shall
  18-21  comply with the Administrative Procedure Act and its subsequent
  18-22  amendments and the rules of the State Office of Administrative
  18-23  Hearings and the board.  The committee may refer any application
  18-24  for determination of eligibility to the full board.  The board
  18-25  shall, after receiving the administrative law judge's proposed
  18-26  findings of fact and conclusions of law, determine the eligibility
  18-27  of the applicant for licensure <an appellate hearing on its own
   19-1  motion.  The board may elect to hear any appeal in lieu of
   19-2  proceedings before a hearing examiner, and it shall adopt, modify,
   19-3  or reject each decision made by a hearing examiner.  The board also
   19-4  shall adopt, modify, or reject each recommendation of ineligibility
   19-5  made by the secretary-treasurer or the executive director or by the
   19-6  committee, unless the applicant has requested a timely review of
   19-7  the recommendation.  Such action by the board shall constitute a
   19-8  final administrative decision concerning licensure.  Any hearing
   19-9  before the board or before a hearing examiner under this subsection
  19-10  becomes a contested case under the Administrative Procedure Act>.
  19-11  A physician whose application for licensure is denied by the board
  19-12  shall receive a written statement<, upon request,> containing the
  19-13  reasons for the board's action.  All reports received or gathered
  19-14  by the board on each applicant are confidential and are not subject
  19-15  to disclosure under the Open Records Law.  The board may disclose
  19-16  such reports to appropriate licensing authorities in other states
  19-17  <upon request>.
  19-18        (i)  At least 30 days before the expiration of a person's
  19-19  license, the board shall send written notice of the impending
  19-20  license expiration to the person at the licensee's last known
  19-21  address according to the records of the board  <The board must
  19-22  notify each delinquent licensee of his impending license
  19-23  cancellation by registered or certified mail sent to the licensee's
  19-24  address listed with the board not less than 30 days prior to the
  19-25  cancellation.  This requirement shall be waived when the licensee
  19-26  has requested in writing that his or her license be canceled>.
  19-27        SECTION 10.  Subchapter C, Medical Practice Act (Article
   20-1  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
   20-2  3.025 to read as follows:
   20-3        Sec. 3.025.  CONTINUING MEDICAL EDUCATION.  (a)  The board by
   20-4  rule shall adopt, monitor, and enforce a reporting program for
   20-5  continuing medical education of licensees.  The board shall adopt
   20-6  and administer rules:
   20-7              (1)  requiring the number of hours of continuing
   20-8  medical education the board determines appropriate as a
   20-9  prerequisite to the annual registration of a licensee under this
  20-10  Act;
  20-11              (2)  requiring at least one-half of the hours of
  20-12  continuing medical education required under Subdivision (1) of this
  20-13  subsection to be approved by the board after taking into account
  20-14  the standards of the American Medical Association for its
  20-15  Physician's Recognition Award, the Council on Medical Specialty
  20-16  Societies, or the American Osteopathic Association and permitting
  20-17  the remaining hours to be composed of self-study or equivalent
  20-18  self-directed continuing medical education according to guidelines
  20-19  determined by the board; and
  20-20              (3)  adopting a process to assess a licensee's
  20-21  participation in continuing medical education courses.
  20-22        (b)  A licensee shall be presumed to have complied with this
  20-23  section if in the preceding 36 months the licensee becomes board
  20-24  certified or recertified in a medical specialty and the medical
  20-25  specialty program takes into consideration the standards of the
  20-26  American Board of Medical Specialties, the American Medical
  20-27  Association, the Advisory Board for Osteopathic Specialists and
   21-1  Boards of Certification, or the American Osteopathic Association.
   21-2        (c)  The board may temporarily exempt a licensee from the
   21-3  requirement for continuing medical education for:
   21-4              (1)  catastrophic illness;
   21-5              (2)  military service of longer than one year's
   21-6  duration outside the state;
   21-7              (3)  medical practice and residence of longer than one
   21-8  year's duration outside the United States; or
   21-9              (4)  good cause shown on written application of the
  21-10  licensee that gives satisfactory evidence to the board that the
  21-11  licensee is unable to comply with the requirement for continuing
  21-12  medical education.
  21-13        (d)  A temporary exemption under Subsection (c) of this
  21-14  section may not exceed one year but may be renewed annually.
  21-15        (e)  Subsection (a) of this section does not apply to a
  21-16  licensee who is retired and has been exempted by rule from paying
  21-17  the annual registration fee.
  21-18        (f)  This section does not prevent the board from taking
  21-19  disciplinary action with respect to a licensee or an applicant for
  21-20  a license by requiring additional hours of continuing medical
  21-21  education or of specific course subjects.
  21-22        SECTION 11.  Subsections (a) through (f), Section 3.03,
  21-23  Medical Practice Act (Article 4495b, Vernon's Texas Civil
  21-24  Statutes), are amended to read as follows:
  21-25        (a)  The board, at its sole discretion and upon payment by an
  21-26  applicant of a fee prescribed by the board under this Act, may
  21-27  grant a license to practice medicine to any <reputable> physician
   22-1  who is a graduate of an acceptable <a reputable> medical college as
   22-2  determined by the board and who<:>
   22-3              <(1)>  is a licensee of another state or Canadian
   22-4  province having requirements for physician registration and
   22-5  practice substantially equivalent to those established by the laws
   22-6  of this state<; or>
   22-7              <(2)  is qualified by an examination for a certificate
   22-8  to practice medicine under a commission in the uniformed services
   22-9  of the United States>.
  22-10        (b)  An application for a license under this section must be
  22-11  in writing and upon a form prescribed by the board.  The
  22-12  application must be accompanied by:
  22-13              (1)  a diploma or photograph of a diploma awarded to
  22-14  the applicant by an acceptable <a reputable> medical college and a
  22-15  certified transcript showing courses and grades <or a certificate,
  22-16  license, or commission issued to the applicant by the Medical Corps
  22-17  of the uniformed services of the United States>;
  22-18              (2)  a license or a certified copy of a license to
  22-19  practice medicine lawfully issued to the applicant<, on
  22-20  examination,> by some other state or a Canadian province that
  22-21  requires in its examination the same general degree of fitness
  22-22  required by this state and that grants the same reciprocal
  22-23  privileges to persons licensed by the board; <or>
  22-24              (3)  a certification made by <an executive officer of
  22-25  the uniformed services of the United States,> the president or
  22-26  secretary of the board that issued the license<,> or a duly
  22-27  constituted registration office of the state or Canadian province
   23-1  that issued the certificate or license, reciting that the
   23-2  accompanying certificate or license has not been canceled,
   23-3  suspended, or revoked <except by honorable discharge from the
   23-4  Medical Corps of the uniformed services of the United States> and
   23-5  reciting that the statement of the qualifications made in the
   23-6  application for medical license in Texas is true and correct; and
   23-7              (4)  evidence of a passing grade on an examination
   23-8  required by the board.
   23-9        (c)  Applicants for a license under this section must
  23-10  subscribe to an oath in writing before an officer authorized by law
  23-11  to administer oaths.  The written oath must be a part of the
  23-12  application.  The application must:
  23-13              (1)  state that:
  23-14                    (A) <(1)>  the license, certificate, or authority
  23-15  under which the applicant has most recently practiced medicine in
  23-16  the state or Canadian province from which the applicant is
  23-17  transferring to this state <removed> or in the uniformed service in
  23-18  which the applicant served is <was at the time of the removal or
  23-19  completion of service> in full force and not restricted, canceled,
  23-20  suspended, or revoked;
  23-21                    (B) <(2)>  the applicant is the identical person
  23-22  to whom the certificate or<,> license<, or commission> and the
  23-23  diploma were issued;
  23-24                    (C) <(3)>  no proceeding has been instituted
  23-25  against the applicant for the restriction, cancellation,
  23-26  suspension, or revocation of the certificate, license, or authority
  23-27  to practice medicine in the state, Canadian province, or uniformed
   24-1  service of the United States in which it was issued; and
   24-2                    (D) <(4)>  no prosecution is pending against the
   24-3  applicant in any state, federal, or Canadian court for any offense
   24-4  that under the laws of this state is a felony;
   24-5              (2)  include a description of any sanctions imposed by
   24-6  or disciplinary matters pending in the state or Canadian province
   24-7  in which the applicant was or is licensed or certified to practice
   24-8  medicine; and
   24-9              (3)  include evidence of postgraduate training required
  24-10  by the board.
  24-11        (d)  An applicant for a license under this section must <A
  24-12  "reputable physician" means one who would> be eligible for
  24-13  examination by the board.  <A "reputable medical school or college"
  24-14  means a medical school or college that was approved by the board at
  24-15  the time the applicant's degree was conferred.>
  24-16        (e)  In addition to other licensure requirements, the board
  24-17  may require by rule and regulation that an applicant who is a
  24-18  licensee of another state or Canadian province and who is a
  24-19  graduate <graduates> of a medical school <schools> located outside
  24-20  of the United States and Canada, or the school itself <schools
  24-21  themselves>, provide additional information to the board concerning
  24-22  the medical school attended prior to approval of the applicant.
  24-23        (f)  The board may refuse to issue a license to an applicant
  24-24  who is a licensee of another state or Canadian province and who
  24-25  graduated from a medical school outside of the United States and
  24-26  Canada if it finds that the applicant does not possess the
  24-27  requisite qualifications to provide the same standard of medical
   25-1  care as provided by a licensed physician in this state.
   25-2        SECTION 12.  Subchapter C, Medical Practice Act (Article
   25-3  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
   25-4  3.0305 to read as follows:
   25-5        Sec. 3.0305.  TEMPORARY LICENSE FOR OUT-OF-STATE
   25-6  PRACTITIONERS.  (a)  On application, the board shall grant a
   25-7  temporary license to practice medicine.  An applicant for a
   25-8  temporary license under this section must:
   25-9              (1)  have a current, active, and unrestricted license,
  25-10  without any pending disciplinary matters, as a physician in another
  25-11  state, the District of Columbia, or a territory of the United
  25-12  States that has licensing requirements that are substantially
  25-13  equivalent to the requirements of this Act;
  25-14              (2)  have passed a national or other examination
  25-15  recognized by the board relating to the practice of medicine; and
  25-16              (3)  be sponsored by a person licensed by the board
  25-17  under this Act with whom the temporary license holder may practice
  25-18  under this section.
  25-19        (b)  An applicant for a temporary license may be excused from
  25-20  the requirement of Subsection (a)(3) of this section if the board
  25-21  determines that compliance with that subsection constitutes a
  25-22  hardship to the applicant.
  25-23        (c)  A temporary license is valid until the date the board
  25-24  approves or denies the temporary license holder's application for a
  25-25  license.  The board shall issue a license under this Act to the
  25-26  holder of a temporary license under this section if:
  25-27              (1)  the temporary license holder passes the
   26-1  examination required by Section 3.05 of this Act;
   26-2              (2)  the board verifies that the temporary license
   26-3  holder has satisfied the academic and experience requirements for a
   26-4  license under this Act; and
   26-5              (3)  the temporary license holder has satisfied any
   26-6  other license requirements under this Act.
   26-7        (d)  The board must assemble the documents and information
   26-8  necessary to process a temporary license holder's application for a
   26-9  license not later than the 90th day after the date the temporary
  26-10  license is issued and complete the processing of the application
  26-11  not later than the 90th day after the date the documents and
  26-12  information are assembled.  If by the 180th day after the date the
  26-13  temporary license is issued the board has not completed the
  26-14  processing of the application, the board shall review the
  26-15  application to determine the cause of the delay.
  26-16        SECTION 13.  Section 3.04, Medical Practice Act (Article
  26-17  4495b, Vernon's Texas Civil Statutes), is amended to read as
  26-18  follows:
  26-19        Sec. 3.04.  Qualification of Licensee.  (a)  An applicant, to
  26-20  be eligible for the examination and issuance of a license, must
  26-21  present satisfactory proof to the board that the applicant:
  26-22              (1)  is at least 21 years of age;
  26-23              (2)  is of good professional character;
  26-24              (3)  has completed 60 semester hours of college courses
  26-25  other than in medical school, which courses would be acceptable, at
  26-26  the time of completion, to The University of Texas for credit on a
  26-27  bachelor of arts degree or a bachelor of science degree; and
   27-1              (4)  is a graduate of an acceptable <a> medical school
   27-2  or college that was approved by the board at the time the degree
   27-3  was conferred<;> and has completed a one-year program of graduate
   27-4  medical training approved by the board.
   27-5        (b)  The <(5)  has successfully completed a one year program
   27-6  of graduate medical training approved by the board.  In addition to
   27-7  other licensure requirements, the board may require by rule and
   27-8  regulation that graduates of medical schools located outside the
   27-9  United States and Canada comply with other requirements that the
  27-10  board considers appropriate, including but not limited to
  27-11  additional graduate medical training in the United States, except
  27-12  those who qualify for licensure in Section 5.04 of this Act.
  27-13  However, the> applicant shall be eligible for examination prior to
  27-14  complying with the graduate training requirement of Subsection
  27-15  (a)(4) <Subdivision (5) of Subsection (a)> of this section but
  27-16  shall not be eligible for the issuance of an unrestricted license
  27-17  until the requirements of Subsection (a) of this section <this
  27-18  subsection> have been satisfied.
  27-19        (c) <(b)>  Applications for examination must be made in
  27-20  writing, verified by affidavit, filed with the board on forms
  27-21  prescribed by the board, and accompanied by documents and a fee as
  27-22  the board determines to be reasonable.
  27-23        (d)  To be recognized by the board for the purposes of this
  27-24  subchapter, all allopathic or osteopathic medical education
  27-25  instruction taught in the United States must be accredited by an
  27-26  accrediting body officially recognized by the United States
  27-27  Department of Education and the Council on Postsecondary
   28-1  Accreditation as the accrediting body for medical education leading
   28-2  to the doctor of medicine degree or the doctor of osteopathy degree
   28-3  in the United States.
   28-4        (e)  The requirements for eligibility for licensure of a
   28-5  graduate of an unapproved foreign medical school are set out in
   28-6  Section 5.035 of this Act, and the requirements for eligibility for
   28-7  licensure of a person who has completed all of the didactic work of
   28-8  a foreign medical school but has not graduated from the school
   28-9  (Fifth Pathway Program) are set out in Section 5.04 of this Act.
  28-10        SECTION 14.  Subsections (a), (c), and (e), Section 3.05,
  28-11  Medical Practice Act (Article 4495b, Vernon's Texas Civil
  28-12  Statutes), are amended to read as follows:
  28-13        (a)  All examinations for license to practice medicine shall
  28-14  be conducted in writing in the English language and in a manner as
  28-15  to be entirely fair and impartial to all individuals and to every
  28-16  school or system of medicine.  <All applicants shall be known to
  28-17  the examiners only by numbers, without names or other method of
  28-18  identification on examination papers by which members of the board
  28-19  may be able to identify the applicants or examinees, until after
  28-20  the general averages of the examinees' numbers in the class have
  28-21  been determined and license granted or refused.>  Examinations
  28-22  shall be conducted on and cover those subjects generally taught by
  28-23  medical schools, a knowledge of which is commonly and generally
  28-24  required of candidates for the degree of doctor of medicine or
  28-25  doctor of osteopathy conferred by schools or colleges of medicine
  28-26  approved by the board, and the examinations shall also be conducted
  28-27  on and cover the subject of medical jurisprudence.  Examinations
   29-1  shall be prepared by a national testing service or prepared by the
   29-2  board and validated by qualified independent testing professionals.
   29-3  On satisfactory examination conducted as required by this Act under
   29-4  rules of the board, applicants may <shall> be granted licenses to
   29-5  practice medicine.  All questions and answers, with the grades
   29-6  attached, shall be preserved for one year in the executive office
   29-7  of the board or such other repository as the board by rule may
   29-8  direct.  All applicants examined at the same time shall be given
   29-9  identical questions.  All certificates shall be attested by the
  29-10  seal of the board.  The board in its discretion may give the
  29-11  examination for license in two or more parts.
  29-12        (c)  All applicants for license to practice medicine in this
  29-13  state not otherwise licensed under the provisions of law must
  29-14  successfully pass a uniform <an> examination approved by the board
  29-15  as determined by rule.  The board is authorized to adopt and
  29-16  enforce all rules of procedure not inconsistent with statutory
  29-17  requirements.  All applicants shall be given due notice of the date
  29-18  and place of the examination<; provided that the partial
  29-19  examinations provided for in this Act shall not be disturbed by
  29-20  this section>.  If any applicant, because of failure to pass the
  29-21  required examination, is refused a license, the applicant, at a
  29-22  time as the board may fix, shall be permitted to take a subsequent
  29-23  examination not more than two additional times <upon any subjects
  29-24  required in the original examination> as the board may prescribe on
  29-25  the payment of a fee as the board may determine to be reasonable.
  29-26  In the event satisfactory grades shall be made on the subjects
  29-27  prescribed and taken on the reexamination, the board may grant the
   30-1  applicant a license to practice medicine.  The board shall
   30-2  determine the credit to be given examinees on answers turned in on
   30-3  the subjects of complete and partial examination, and its decision
   30-4  is final.
   30-5        (e)  Within 90 <30> days after the day on which an
   30-6  examination is administered under this Act, the board shall notify
   30-7  each examinee of the results of the examination.  However, if an
   30-8  examination is graded or reviewed by a national testing service,
   30-9  the board shall notify each examinee of the results of the
  30-10  examination not later than the 30th day <within four weeks> after
  30-11  the date the board receives the results from the testing service.
  30-12  If the notice of the examination results will be delayed for longer
  30-13  than 90 days after the examination, the board shall notify the
  30-14  examinee of the reason for the delay before the 90th day.
  30-15        SECTION 15.  Subdivision (5), Subsection (d), Section 3.06,
  30-16  Medical Practice Act (Article 4495b, Vernon's Texas Civil
  30-17  Statutes), is amended by adding Paragraph (G) to read as follows:
  30-18                    (G)  An advertisement for a site serving a
  30-19  medically underserved population shall include the name and
  30-20  business address of the supervising physician for the site.
  30-21        SECTION 16.  Section 3.06, Medical Practice Act (Article
  30-22  4495b, Vernon's Texas Civil Statutes), is amended by adding
  30-23  Subsections (g) and (h) to read as follows:
  30-24        (g)  This Act does not prohibit a nonprofit clinic that is
  30-25  operated by a nonprofit hospital or organization and that primarily
  30-26  serves a financially indigent population from:
  30-27              (1)  contracting with a physician to provide services
   31-1  at the clinic;
   31-2              (2)  paying a physician a minimum guarantee to assure
   31-3  the physician's availability;
   31-4              (3)  billing to and collecting from patients as the
   31-5  physician's agent the physician's professional fees; or
   31-6              (4)  retaining any professional fees collected under
   31-7  Subdivision (3) of this subsection up to the amount of the minimum
   31-8  guarantee fee and a reasonable collection fee.
   31-9        (h)  In Subsection (g) of this section, "financially indigent
  31-10  population" means persons meeting Medicaid eligibility requirements
  31-11  or uninsured persons who are accepted for care with no obligation
  31-12  to pay or with a discounted obligation to pay for services rendered
  31-13  based on the clinic's eligibility system.
  31-14        SECTION 17.  Section 3.08, Medical Practice Act (Article
  31-15  4495b, Vernon's Texas Civil Statutes), is amended to read as
  31-16  follows:
  31-17        Sec. 3.08.  Grounds for Refusal to Admit Persons to
  31-18  Examination and to Issue License and Renewal License And For
  31-19  Disciplinary Action.  The board may refuse to admit persons to its
  31-20  examinations and to issue a license to practice medicine to any
  31-21  person and may take disciplinary action against any person for any
  31-22  of the following reasons:
  31-23              (1)  submission of a false or misleading statement,
  31-24  document, or certificate to the board in an application for
  31-25  examination or licensure; the presentation to the board of any
  31-26  license, certificate, or diploma that was illegally or fraudulently
  31-27  obtained; the practice of fraud or deception in taking or passing
   32-1  an examination;
   32-2              (2)  conviction of a crime of the grade of a felony or
   32-3  a crime of a lesser degree that involves moral turpitude;
   32-4              (3)  intemperate use of alcohol or drugs that, in the
   32-5  opinion of the board, could endanger the lives of patients;
   32-6              (4)  unprofessional or dishonorable conduct that is
   32-7  likely to deceive or defraud the public or injure the public.
   32-8  Unprofessional or dishonorable conduct likely to deceive or defraud
   32-9  the public includes but is not limited to the following acts:
  32-10                    (A)  committing any act that is in violation of
  32-11  the laws of the State of Texas if the act is connected with the
  32-12  physician's practice of medicine.  A complaint, indictment, or
  32-13  conviction of a law violation is not necessary for the enforcement
  32-14  of this provision.  Proof of the commission of the act while in the
  32-15  practice of medicine or under the guise of the practice of medicine
  32-16  is sufficient for action by the board under this section;
  32-17                    (B)  failing to keep complete and accurate
  32-18  records of purchases and disposals of drugs listed in Chapter 481,
  32-19  Health and Safety Code, or of controlled substances scheduled in
  32-20  the Federal Comprehensive Drug Abuse Prevention and Control Act of
  32-21  1970, 21 U.S.C.A.  Section 801 et seq. (Public Law 91-513).  A
  32-22  physician shall keep records of his purchases and disposals of
  32-23  these drugs to include without limitation the date of purchase, the
  32-24  sale or disposal of the drugs by the physician, the name and
  32-25  address of the person receiving the drugs, and the reason for the
  32-26  disposing or dispensing of the drugs to the person.  A failure to
  32-27  keep the records for a reasonable time is grounds for revoking,
   33-1  canceling, suspending, or probating the license of any practitioner
   33-2  of medicine.  The board or its representative may enter and inspect
   33-3  a physician's place(s) of practice during reasonable business hours
   33-4  for the purpose of verifying the correctness of these records and
   33-5  of taking inventory of the prescription drugs on hand;
   33-6                    (C)  writing prescriptions for or dispensing to a
   33-7  person known to be an abuser <a habitual user> of narcotic drugs,
   33-8  controlled substances, or dangerous drugs or to a person who the
   33-9  physician should have known was an abuser <a habitual user> of the
  33-10  narcotic drugs, controlled substances, or dangerous drugs.  This
  33-11  provision does not apply to those persons:
  33-12                          (i)  being treated by the physician for
  33-13  their narcotic use after the physician notifies the board in
  33-14  writing of the name and address of the person being so treated; or
  33-15                          (ii)  who the physician is treating for
  33-16  intractable pain under the Intractable Pain Treatment Act (Article
  33-17  4495c, Revised Statutes) and its subsequent amendments;
  33-18                    (D)  writing false or fictitious prescriptions
  33-19  for dangerous drugs as defined by Chapter 483, Health and Safety
  33-20  Code, of controlled substances scheduled in the Texas Controlled
  33-21  Substances Act (Chapter 481, Health and Safety Code) <(Article
  33-22  4476-15, Vernon's Texas Civil Statutes)>, or of controlled
  33-23  substances scheduled in the Federal Comprehensive Drug Abuse
  33-24  Prevention and Control Act of 1970, 21 U.S.C.A. Section 801 et seq.
  33-25  (Public Law 91-513);
  33-26                    (E)  prescribing or administering a drug or
  33-27  treatment that is nontherapeutic in nature or nontherapeutic in the
   34-1  manner the drug or treatment is administered or prescribed;
   34-2                    (F)  prescribing, administering, or dispensing in
   34-3  a manner not consistent with public health and welfare dangerous
   34-4  drugs as defined by Chapter 483, Health and Safety Code, controlled
   34-5  substances scheduled in the Texas Controlled Substances Act
   34-6  (Chapter 481, Health and Safety Code) <(Article 4476-15, Vernon's
   34-7  Texas Civil Statutes)>, or controlled substances scheduled in the
   34-8  Federal Comprehensive Drug Abuse Prevention and Control Act of
   34-9  1970, 21 U.S.C.A. Section 801 et seq. (Public Law 91-513);
  34-10                    (G)  persistently or <and> flagrantly
  34-11  overcharging or overtreating patients;
  34-12                    (H)  failing to supervise adequately the
  34-13  activities of those acting under the supervision of the physician;
  34-14  or
  34-15                    (I)  delegating professional medical
  34-16  responsibility or acts to a person if the delegating physician
  34-17  knows or has reason to know that the person is not qualified by
  34-18  training, experience, or licensure to perform the responsibility or
  34-19  acts;
  34-20              (5)  violation or attempted violation, direct or
  34-21  indirect, of any valid rules issued under this Act, either as a
  34-22  principal, accessory, or accomplice;
  34-23              (6)  use of any advertising statement that is false,
  34-24  misleading, or deceptive;
  34-25              (7)  advertising professional superiority or the
  34-26  performance of professional service in a superior manner if the
  34-27  advertising is not readily subject to verification;
   35-1              (8)  purchase, sale, barter, or use or any offer to
   35-2  purchase, sell, barter, or use any medical degree, license,
   35-3  certificate, diploma, or transcript of license, certificate, or
   35-4  diploma in or incident to an application to the board for a license
   35-5  to practice medicine;
   35-6              (9)  altering, with fraudulent intent, any medical
   35-7  license, certificate, diploma, or transcript of a medical license,
   35-8  certificate, or diploma;
   35-9              (10)  using any medical license, certificate, diploma,
  35-10  or transcript of a medical license, certificate, or diploma that
  35-11  has been fraudulently purchased, issued, or counterfeited or that
  35-12  has been materially altered;
  35-13              (11)  impersonating or acting as proxy for another in
  35-14  any examination required by this Act for a medical license; or
  35-15  engaging in conduct which subverts or attempts to subvert any
  35-16  examination process required by this Act for a medical license.
  35-17  Conduct which subverts or attempts to subvert the medical licensing
  35-18  examination process includes, but is not limited to:
  35-19                    (A)  conduct which violates the security of the
  35-20  examination materials, as prescribed by board rules;
  35-21                    (B)  conduct which violates the standard of test
  35-22  administration, as prescribed by board rules; or
  35-23                    (C)  conduct which violates the accreditation
  35-24  process, as prescribed by board rules;
  35-25              (12)  impersonating a licensed practitioner or
  35-26  permitting or allowing another to use his license or certificate to
  35-27  practice medicine in this state for the purpose of diagnosing,
   36-1  treating, or offering to treat sick, injured, or afflicted human
   36-2  beings;
   36-3              (13)  employing, directly or indirectly, any person
   36-4  whose license to practice medicine has been suspended, canceled, or
   36-5  revoked or association in the practice of medicine with any person
   36-6  or persons whose license to practice medicine has been suspended,
   36-7  canceled, or revoked or any person who has been convicted of the
   36-8  unlawful practice of medicine in Texas or elsewhere;
   36-9              (14)  performing or procuring a criminal abortion or
  36-10  aiding or abetting in the procuring of a criminal abortion or
  36-11  attempting to perform or procure a criminal abortion or attempting
  36-12  to aid or abet the performance or procurement of a criminal
  36-13  abortion;
  36-14              (15)  aiding or abetting, directly or indirectly, the
  36-15  practice of medicine by any person, partnership, association, or
  36-16  corporation not duly licensed to practice medicine by the board;
  36-17              (16)  inability to practice medicine with reasonable
  36-18  skill and safety to patients by reason of illness, drunkenness,
  36-19  excessive use of drugs, narcotics, chemicals, or any other type of
  36-20  material or as a result of any mental or physical condition.  In
  36-21  enforcing this subdivision the board shall, upon probable cause,
  36-22  request a physician to submit to a mental or physical examination
  36-23  by physicians designated by the board.  If the physician refuses to
  36-24  submit to the examination, the board shall issue an order requiring
  36-25  the physician to show cause why he should not be required to submit
  36-26  to the examination and shall schedule a hearing on the order within
  36-27  30 days after notice is served on the physician.  The physician
   37-1  shall be notified by either personal service or certified mail with
   37-2  return receipt requested.  At the hearing, the physician and his
   37-3  attorney are entitled to present any testimony and other evidence
   37-4  to show why the physician should not be required to submit to the
   37-5  examination.  After a complete hearing, the board shall issue an
   37-6  order either requiring the physician to submit to the examination
   37-7  or withdrawing the request for examination.  An appeal from the
   37-8  decision of the board shall be taken under the Administrative
   37-9  Procedure Act;
  37-10              (17)  judgment by a court of competent jurisdiction
  37-11  that a person licensed to practice medicine is of unsound mind;
  37-12              (18)  professional failure to practice medicine in an
  37-13  acceptable manner consistent with public health and welfare;
  37-14              (19)  being removed, suspended, or having disciplinary
  37-15  action taken by his peers in any professional medical association
  37-16  or society, whether the association or society is local, regional,
  37-17  state, or national in scope, or being disciplined by a licensed
  37-18  hospital or medical staff of a hospital, including removal,
  37-19  suspension, limitation of hospital privileges, or other
  37-20  disciplinary action, if that action in the opinion of the board was
  37-21  based on unprofessional conduct or professional incompetence that
  37-22  was likely to harm the public, provided that the board finds that
  37-23  the actions were appropriate and reasonably supported by evidence
  37-24  submitted to it.  The action does not constitute state action on
  37-25  the part of the association, society, or hospital medical staff;
  37-26              (20)  repeated or recurring meritorious health-care
  37-27  liability claims that in the opinion of the board evidence
   38-1  professional incompetence likely to injure the public; or
   38-2              (21)  suspension, revocation, <or> restriction, or
   38-3  other disciplinary action by another state of a license to practice
   38-4  medicine, or disciplinary action by the uniformed services of the
   38-5  United States, based upon acts by the licensee similar to acts
   38-6  described in this section.  A certified copy of the record of the
   38-7  state taking the action is conclusive evidence of it.
   38-8        SECTION 18.  Subchapter C, Medical Practice Act (Article
   38-9  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
  38-10  3.085 to read as follows:
  38-11        Sec. 3.085.  RESTRICTIONS ON BIDDING AND ADVERTISING.
  38-12  (a)  The board may not adopt rules restricting competitive bidding
  38-13  or advertising by a person regulated by the board except to
  38-14  prohibit false, misleading, or deceptive practices by the person.
  38-15        (b)  The board may not include in its rules to prohibit
  38-16  false, misleading, or deceptive practices by a person regulated by
  38-17  the board a rule that:
  38-18              (1)  restricts the use of any medium for advertising;
  38-19              (2)  restricts the person's personal appearance or use
  38-20  of the person's voice in an advertisement;
  38-21              (3)  relates to the size or duration of an
  38-22  advertisement by the person; or
  38-23              (4)  restricts the person's advertisement under a trade
  38-24  name.
  38-25        SECTION 19.  Section 3.10, Medical Practice Act (Article
  38-26  4495b, Vernon's Texas Civil Statutes), is amended to read as
  38-27  follows:
   39-1        Sec. 3.10.  FEES AND OTHER FUNDS.  (a)  All annual
   39-2  registration fees collected and other funds received by the board
   39-3  shall be deposited, except as otherwise provided by this Act,
   39-4  <placed in the State Treasury> to the credit of the special account
   39-5  established by Section 2.09(k) of this Act <medical registration
   39-6  fund.  The fees deposited to this special fund shall be credited to
   39-7  the appropriations of the board and may be spent only as provided
   39-8  by the General Appropriations Act, this Act, or other applicable
   39-9  statutes.  Money in that fund may be used by the board and under
  39-10  its direction in the enforcement of this Act, the prohibition of
  39-11  the unlawful practice of medicine, the dissemination of information
  39-12  to prevent the violation of the laws, and the prosecution of those
  39-13  who violate the laws.  All distributions from the fund may be made
  39-14  only upon written approval of the secretary-treasurer of the board
  39-15  or his designated representative, and the comptroller shall upon
  39-16  requisition of the board from time to time draw warrants upon the
  39-17  State Treasurer for the amounts specified in the requisition.>
  39-18        <(b)  The board may not set, charge, collect, receive, or
  39-19  deposit any of the following fees in excess of:>
  39-20              <(1)  for processing and granting a license  by
  39-21  reciprocity to a licensee of another state.....................$700>
  39-22              <(2)  for   processing   an   application   and
  39-23  administration   of   a   partial   examination  for
  39-24  licensure......................................................$700>
  39-25              <(3)  for   processing  an    application   and
  39-26  administration   of  a   complete   examination  for
  39-27  licensure......................................................$700>
   40-1              <(4)  for   processing  an    application   and
   40-2  issuance of a temporary license................................$200>
   40-3              <(5)  for   processing   an   application   and
   40-4  issuance of a duplicate license................................$200>
   40-5              <(6)  for   processing   an   application   and
   40-6  issuance of a license of reinstatement after a lapse
   40-7  or cancellation of a license...................................$700>
   40-8              <(7)  for   processing   an   application   and
   40-9  issuance of an annual registration of a licensee...............$200>
  40-10              <(8)  for  processing   and  issuance   of   an
  40-11  institutional  permit  for  interns,  residents, and
  40-12  others in approved medical training programs...................$200>
  40-13              <(9)  for   processing   an   application   and
  40-14  issuance  of  an endorsement to  other state medical
  40-15  boards.........................................................$200>
  40-16              <(10)  for  processing and issuance of a permit
  40-17  to a physician who supervises a physician assistant............$200>
  40-18              <(11)  for  processing and issuance of a permit
  40-19  to a physician who supervises an acupuncturist..............$200>.
  40-20        (b) <(c)>  The board may set and collect a sales charge for
  40-21  making copies of any paper of record in the office of the board and
  40-22  for any printed material published by the board.  The charges shall
  40-23  be in amounts considered sufficient to reimburse the board for the
  40-24  actual expense.
  40-25        (c) <(d)>  The financial transactions of the board are
  40-26  subject to audit by the state auditor in accordance with Chapter
  40-27  321, Government Code.
   41-1        (d)  The board shall file annually with the governor and the
   41-2  presiding officer of each house of the legislature a complete and
   41-3  detailed written report accounting for all funds received and
   41-4  disbursed by the board during the preceding fiscal year.  The
   41-5  annual report must be in the form and reported in the time provided
   41-6  by the General Appropriations Act <(e)  On or before the first day
   41-7  of January each year, the board shall file with the governor and
   41-8  the presiding officer of each house of the legislature a complete
   41-9  and detailed written report accounting for all funds received and
  41-10  disbursed by the board during the preceding year>.
  41-11        SECTION 20.  Section 3.11A, Medical Practice Act (Article
  41-12  4495b, Vernon's Texas Civil Statutes), is amended to read as
  41-13  follows:
  41-14        Sec. 3.11A.  Disposition of <Increase in> fees.  (a)  This
  41-15  section applies to each <Each> of the following fees <imposed by or
  41-16  under another section of this Act is increased by $200>:
  41-17              (1)  fee for processing and granting a license by
  41-18  reciprocity to a licensee of another state;
  41-19              (2)  fee for processing an application and
  41-20  administration of a partial examination for licensure;
  41-21              (3)  fee for processing an application and
  41-22  administration of a complete examination for licensure;
  41-23              (4)  fee for processing an application and issuance of
  41-24  a license of reinstatement after a lapse or cancellation of a
  41-25  license; and
  41-26              (5)  fee for processing an application and issuance of
  41-27  an annual registration of a licensee.
   42-1        (b)  Of each fee <increase> collected, $50 shall be deposited
   42-2  to the credit of the foundation school fund and $150 shall be
   42-3  deposited to the credit of the general revenue fund.  This
   42-4  subsection applies to the disposition of the stated portion of each
   42-5  fee <increase> regardless of any other provision of law providing
   42-6  for a different disposition of funds.
   42-7        SECTION 21.  Section 4.01, Medical Practice Act (Article
   42-8  4495b, Vernon's Texas Civil Statutes), is amended to read as
   42-9  follows:
  42-10        Sec. 4.01.  Grounds for Cancellation, Revocation, Suspension,
  42-11  and Probation of License.  (a)  The board shall, except for good
  42-12  cause shown, revoke or suspend a license, place on probation a
  42-13  person whose license has been suspended, or reprimand a licensee
  42-14  for a violation of this Act or a rule of the board <Except as
  42-15  provided herein, the board may cancel, revoke, or suspend the
  42-16  license of any practitioner of medicine or impose any other
  42-17  authorized means of discipline upon proof of the violation of this
  42-18  Act in any respect> or for any cause for which the board is
  42-19  authorized to refuse to admit persons to its examination and to
  42-20  issue a license and renewal license, including an initial
  42-21  conviction or the initial finding of the trier of fact of guilt of
  42-22  a felony or misdemeanor involving moral turpitude.
  42-23        (b)  On proof that a practitioner of medicine has been
  42-24  initially convicted of a felony or the initial finding of the trier
  42-25  of fact of guilt of a felony under Chapter 481, Health and Safety
  42-26  Code, Section 485.033, Health and Safety Code, Chapter 483, Health
  42-27  and Safety Code, or the Federal Comprehensive Drug Abuse Prevention
   43-1  and Control Act of 1970, 21 U.S.C.A. Section 801 et seq. (Public
   43-2  Law 91-513), the board shall suspend the practitioner's license.
   43-3  On the practitioner's final conviction for such a felony offense,
   43-4  the board shall revoke the practitioner's license.
   43-5        (c)  The board shall suspend the license of a practitioner
   43-6  who is serving a prison term in a state or federal penitentiary
   43-7  during his incarceration regardless of the offense.
   43-8        SECTION 22.  Section 4.04, Medical Practice Act (Article
   43-9  4495b, Vernon's Texas Civil Statutes), is redesignated as Section
  43-10  4.02 and amended to read as follows:
  43-11        Sec. 4.02 <4.04>.  COMPLAINT; INVESTIGATION.  (a)  Any
  43-12  person, including a partnership, association, corporation, or other
  43-13  entity, may file a complaint against a licensee with the board, or
  43-14  the board may file a complaint on its own initiative.  The board
  43-15  shall adopt rules concerning the investigation of a complaint filed
  43-16  with the board.  The rules adopted under this subsection shall:
  43-17              (1)  distinguish between categories of complaints;
  43-18              (2)  ensure that complaints are not dismissed without
  43-19  appropriate consideration;
  43-20              (3)  require that the board be advised of a complaint
  43-21  that is dismissed and that a letter be sent to the person who filed
  43-22  the complaint explaining the action taken on the dismissed
  43-23  complaint;
  43-24              (4)  ensure that the person who filed the complaint has
  43-25  an opportunity to explain the allegations made in the complaint;
  43-26  and
  43-27              (5)  prescribe guidelines concerning the categories of
   44-1  complaints that require the use of a private investigator and the
   44-2  procedures for the board to obtain the services of a private
   44-3  investigator.
   44-4        (b)  The board shall keep an information file about each
   44-5  complaint filed with the board.  The board's information file shall
   44-6  be kept current and contain a record for each complaint of:
   44-7              (1)  potential witnesses contacted in relation to the
   44-8  complaint;
   44-9              (2)  a summary of findings made at each step of the
  44-10  complaint process;
  44-11              (3)  an explanation of the legal basis and reason for a
  44-12  complaint that is dismissed; and
  44-13              (4)  other relevant information.
  44-14        (c)  If a written complaint is filed with the board that the
  44-15  board has authority to resolve, the board, at least as frequently
  44-16  as quarterly and until final disposition of the complaint, shall
  44-17  notify the parties to the complaint of the status of the complaint
  44-18  unless the notice would jeopardize an investigation.
  44-19        (d)  The board by rule shall adopt a form to standardize
  44-20  information concerning complaints made to the board.  The board by
  44-21  rule shall prescribe information to be provided to a person when
  44-22  the person files a complaint with the board.
  44-23        (e)  The board shall provide reasonable assistance to a
  44-24  person who wishes to file a complaint with the board.
  44-25        (f)  Except as otherwise provided by this section, all
  44-26  investigations shall be conducted by the board or persons
  44-27  authorized by the board to conduct them.  The board may commission
   45-1  investigators as peace officers for the purpose of enforcing this
   45-2  Act.  However, investigators of the board so commissioned as peace
   45-3  officers may not carry a firearm or exercise arrest powers.  Each
   45-4  complaint against a physician which requires a determination of
   45-5  medical competency shall be reviewed by a board member, consultant,
   45-6  or employee with medical background considered sufficient by the
   45-7  board.
   45-8        (g) <(b)>  Unless it would jeopardize an investigation, the
   45-9  board shall notify the physician that a complaint has been filed
  45-10  and the nature of the complaint.  The board shall make a
  45-11  preliminary investigation of the complaint.  The first
  45-12  consideration of the board shall be whether the physician
  45-13  constitutes a continuing threat to the public welfare.
  45-14        (h)  The board may, unless precluded by the law or this Act,
  45-15  make a disposition of any complaint or matter relating to this Act,
  45-16  or of any contested case by stipulation, agreed settlement, or
  45-17  consent order.  The board shall dispose of a complaint, contested
  45-18  case, or other matter in writing, and if appropriate, the physician
  45-19  shall sign the writing.  An agreed disposition is a disciplinary
  45-20  order for purposes of reporting under this Act and of
  45-21  administrative hearings and proceedings by state and federal
  45-22  regulatory agencies regarding the practice of medicine.  An agreed
  45-23  disposition is a public record.
  45-24        (i)  In civil or criminal litigation, an agreed disposition
  45-25  is a settlement agreement under Rule 408, Texas Rules of Civil
  45-26  Evidence, and Rule 408, Texas Rules of Criminal Evidence.  This
  45-27  subsection does not apply to a licensee who has previously entered
   46-1  into an agreed disposition with the board of a different
   46-2  disciplinary matter or whose license the board is seeking to
   46-3  revoke.
   46-4        (j)  The board shall adopt such rules as are appropriate to
   46-5  carry out this section <such disposition.  Such disposition shall
   46-6  be considered a disciplinary order>.
   46-7        (k)  The board shall dispose of all complaints in a timely
   46-8  manner.  The board shall establish a schedule for conducting each
   46-9  phase of a complaint that is under the control of the board not
  46-10  later than the 30th day after the date the complaint is received by
  46-11  the board.  The schedule shall be kept in the information file for
  46-12  the complaint and all parties shall be notified of the projected
  46-13  time requirements for pursuing the complaint.  A change in the
  46-14  schedule must be noted in the complaint information file, and all
  46-15  parties to the complaint must be notified not later than the 14th
  46-16  day after the date the change is made unless the notice would
  46-17  jeopardize an investigation.
  46-18        (l)  The executive director of the board shall notify the
  46-19  board of a complaint that extends beyond the time prescribed by the
  46-20  board for resolving the complaint so that the board may take
  46-21  necessary action on the complaint.
  46-22        (m)  Except in the case of a suspension under Section 4.13 of
  46-23  this Act or in accordance with the terms of an agreement between
  46-24  the board and  a licensee, no revocation, suspension, involuntary
  46-25  modification, or disciplinary action relating to a license is
  46-26  effective unless, before board proceedings are instituted:
  46-27              (1)  the board has served notice, in a manner
   47-1  consistent with the requirements for service under Subsection (g)
   47-2  of this section, to the physician of the facts or conduct alleged
   47-3  to warrant the intended action; and
   47-4              (2)  the physician was given an opportunity to show
   47-5  compliance with all requirements of law for the retention of the
   47-6  license either in writing or through personal appearance at an
   47-7  informal meeting with one or more representatives of the board, at
   47-8  the option of the licensee.
   47-9        (n)  If the licensee exercises the option to personally
  47-10  appear at an informal meeting with one or more representatives of
  47-11  the board and the informal meeting is held, the staff of the board
  47-12  and the representatives of the board shall be subject to the ex
  47-13  parte provisions of the Administrative Procedure Act with regard to
  47-14  subsequent contacts with board members and administrative law
  47-15  judges concerning the case.
  47-16        SECTION 23.  Subchapter D, Medical Practice Act (Article
  47-17  4495b, Vernon's Texas Civil Statutes) is amended by adding Section
  47-18  4.025 to read as follows:
  47-19        Sec. 4.025.  INFORMAL PROCEEDINGS.  (a)  The board by rule
  47-20  shall adopt procedures governing:
  47-21              (1)  informal disposition of a contested case under
  47-22  Section 13(e), Administrative Procedure Act, and its subsequent
  47-23  amendments; and
  47-24              (2)  informal proceedings held in compliance with
  47-25  Section 18(c), Administrative Procedure Act, and its subsequent
  47-26  amendments.
  47-27        (b)  Rules adopted under this section must provide the
   48-1  complainant and the licensee an opportunity to be heard and must
   48-2  require the presence of the board's legal counsel or a
   48-3  representative of the office of the attorney general to advise the
   48-4  board or  board's employees.
   48-5        SECTION 24.  Section 4.02, Medical Practice Act (Article
   48-6  4495b, Vernon's Texas Civil Statutes), is redesignated as Section
   48-7  4.03 and amended to read as follows:
   48-8        Sec. 4.03 <4.02>.  Initiation of Charges.  (a)  Proceedings,
   48-9  unless otherwise specified, under this Act or other applicable law
  48-10  and charges against a licensee may be instituted by a duly
  48-11  authorized representative of the board <on its own initiative or by
  48-12  any person>.  Charges must be in writing and on sworn affidavit
  48-13  filed with the records custodian or assistant records custodian of
  48-14  the board detailing the nature of the charges as required by this
  48-15  Act or other applicable law.  The president or an authorized <his>
  48-16  designee shall <set a time and place for a hearing and shall> cause
  48-17  a copy of the charges<, together with a notice of the time and
  48-18  place fixed for the hearing> to be served on the respondent or the
  48-19  respondent's counsel of record.
  48-20        (b)  The president or designee shall notify the State Office
  48-21  of Administrative Hearings of a formal complaint.
  48-22        (c)  A formal complaint shall be in writing and shall allege
  48-23  with reasonable certainty the specific act or acts relied on by the
  48-24  agency to constitute a violation of a specific statute or rule.
  48-25  The formal complaint shall be specific enough to enable a person of
  48-26  common understanding to know what is meant by the formal complaint
  48-27  and shall contain a degree of certainty that will give the person
   49-1  who is the subject of the formal complaint notice of the particular
   49-2  act or acts alleged to be a violation of a specific statute or
   49-3  rule.
   49-4        (d)  The board shall adopt reasonable rules to promote
   49-5  discovery by all parties to contested cases.
   49-6        (e)  In this section, "formal complaint" means a written
   49-7  statement made by a credible person under oath that is filed and
   49-8  presented by a representative of the board charging a person with
   49-9  having committed an act or acts that if proven could affect the
  49-10  legal rights or privileges of a licensee or other person under the
  49-11  jurisdiction of the board.
  49-12        SECTION 25.  Section 4.03, Medical Practice Act (Article
  49-13  4495b, Vernon's Texas Civil Statutes), is redesignated as Section
  49-14  4.04 and amended to read as follows:
  49-15        Sec. 4.04 <4.03>.  Notice.  (a)  Service of process notifying
  49-16  the respondent of <the time and place of> a hearing about <and the
  49-17  nature of> the charges against the person shall be made in
  49-18  accordance with the requirements of the Administrative Procedure
  49-19  Act and its subsequent amendments <person or by mail.  Notice shall
  49-20  be sufficient if made in person or if sent by registered or
  49-21  certified mail to the person charged at the address shown in the
  49-22  board files or on his most recent application for registration or
  49-23  renewal, no later than 10 days before the hearing>.
  49-24        (b)  If service of notice as prescribed by Subsection (a) of
  49-25  this section is impossible or cannot be effected, the board shall
  49-26  cause to be published once a week for two successive weeks a notice
  49-27  of the hearing in a newspaper published in the county of the last
   50-1  known place of practice in Texas of the person, if known.  If the
   50-2  licensee is not currently practicing in Texas as evidenced by
   50-3  information in the board files, or if the last county of practice
   50-4  is unknown, publication shall be in a newspaper in Travis County.
   50-5  When publication of notice is used, the date of hearing may not be
   50-6  less than 10 days after the date of the last publication of notice.
   50-7        SECTION 26.  Section 4.05, Medical Practice Act (Article
   50-8  4495b, Vernon's Texas Civil Statutes), is amended to read as
   50-9  follows:
  50-10        Sec. 4.05.  Hearings, Rules.  (a)  The <president of the>
  50-11  board by rule shall adopt procedures governing formal disposition
  50-12  of a contested case under the Administrative Procedure Act and its
  50-13  subsequent amendments.  A formal hearing shall be conducted by an
  50-14  administrative law judge employed by the State Office of
  50-15  Administrative Hearings <designate one of the following alternative
  50-16  procedures for the conduct of each individual contested case in a
  50-17  disciplinary matter:>
  50-18              <(1)  a hearing before the board itself where a quorum
  50-19  of the board shall be present for the hearing and decision at the
  50-20  conclusion of the hearing;>
  50-21              <(2)  a hearing committee appointed by the president of
  50-22  the board, provided that the hearing committee shall be composed of
  50-23  not less than three members of the board and the composition of
  50-24  such committee shall be consistent with the provisions of Sections
  50-25  2.08 and 2.09 of this Act; or>
  50-26              <(3)  a hearing before a hearing examiner appointed by
  50-27  the board to conduct a hearing and to prepare and submit to the
   51-1  board for action a proposal for decision as provided in the
   51-2  Administrative Procedure and Texas Register Act (Article 6252-13a,
   51-3  Vernon's Texas Civil Statutes).>
   51-4        <Any individual conducting a hearing under this subchapter is
   51-5  empowered to administer oaths and to receive evidence at the
   51-6  hearing and shall report the hearing as prescribed by board rules>.
   51-7  Notwithstanding any other provision of this Act or other law, the
   51-8  board may, in its sole discretion, employ, retain, and compensate
   51-9  such attorneys, consultants, and other professionals as it deems
  51-10  necessary and appropriate to serve as <hearing examiners,> board
  51-11  consultants or<,> special counsel to prosecute on behalf of the
  51-12  hearings division and investigating division such complaints as are
  51-13  filed with the board, court reporters, and other staff deemed
  51-14  necessary or appropriate by the board to prepare for or represent
  51-15  the board in <conduct> the hearings authorized by this section.
  51-16  <All hearings conducted under this subchapter by the board shall
  51-17  comply with the provisions of the Administrative Procedure Act and
  51-18  the board's rules.>
  51-19        (b)  <The licensee shall have the right to produce witnesses
  51-20  or evidence on the person's behalf, to cross-examine witnesses, and
  51-21  to have subpoenas issued by the board to be served at the
  51-22  licensee's expense.>
  51-23        <(c)>  The board shall, after receiving the administrative
  51-24  law judge's findings of fact and conclusions of law <the hearing>,
  51-25  determine the charges upon their merits.
  51-26        (c) <(d)>  All complaints, adverse reports, investigation
  51-27  files, other investigation reports, and other investigative
   52-1  information in the possession of, received or gathered by the board
   52-2  or its employees or agents relating to a licensee, an application
   52-3  for license, or a criminal investigation or proceedings are
   52-4  privileged and confidential and are not subject to discovery,
   52-5  subpoena, or other means of legal compulsion for their release to
   52-6  anyone other than the board or its employees or agents involved in
   52-7  licensee discipline.  Not later than 30 days after receiving a
   52-8  written request from a licensee who is the subject of a formal
   52-9  complaint initiated and filed under Section 4.03 of this Act or
  52-10  from the licensee's counsel of record and subject to any other
  52-11  privileges or restrictions set forth by rule, statute, or legal
  52-12  precedent, and unless good cause is shown for delay, the board
  52-13  shall provide the licensee with access to all information in its
  52-14  possession that the board intends to offer into evidence in
  52-15  presenting its case in chief at the contested hearing on the
  52-16  complaint.  However, the board is not required to provide board
  52-17  investigative reports or investigative memoranda, the identity of
  52-18  nontestifying complainants, attorney-client communications,
  52-19  attorney-work product, or other materials covered by a privilege as
  52-20  recognized by the Texas Rules of Civil Procedure or the Texas Rules
  52-21  of Civil Evidence.  The furnishing of information shall not
  52-22  constitute a waiver of privilege or confidentiality under this
  52-23  section, this Act, or other applicable law.  Investigative
  52-24  <However, investigative> information in the possession of the board
  52-25  or its employees or agents which relates to licensee discipline may
  52-26  be disclosed to the appropriate licensing authority in another
  52-27  state, the District of Columbia, or a territory or country in which
   53-1  the licensee is licensed or has applied for a license, or to a peer
   53-2  review committee reviewing an application for privileges or the
   53-3  qualifications of the licensee with respect to retaining
   53-4  privileges.  If the investigative information in the possession of
   53-5  the board or its employees or agents indicates a crime may have
   53-6  been committed, the information shall be reported to the proper law
   53-7  enforcement agency.  The board shall cooperate and assist all law
   53-8  enforcement agencies conducting criminal investigations of
   53-9  licensees by providing information which is relevant to the
  53-10  criminal investigation to the investigating agency.  Any
  53-11  information disclosed by the board to an investigative agency shall
  53-12  remain confidential and shall not be disclosed by the investigating
  53-13  agency except as necessary to further the investigation.  The board
  53-14  shall provide information upon the written request of a health-care
  53-15  entity about a complaint filed against a licensee that was resolved
  53-16  after investigation by a disciplinary order of the board or by an
  53-17  agreed settlement and the basis of and current status of any
  53-18  complaint under active investigation.  The board shall keep
  53-19  information on file about each complaint filed with the board,
  53-20  consistent with this Act.  If a written complaint is filed with the
  53-21  board relating to a person licensed by the board, the board, at
  53-22  least as often as quarterly and until final determination of the
  53-23  action to be taken relative to the complaint, shall notify the
  53-24  parties to the complaint <complaining party> consistent with this
  53-25  Act of the status of the complaint unless the notice would
  53-26  jeopardize an active investigation.
  53-27        (d) <(e)>  The board in its discretion may accept the
   54-1  voluntary surrender of a license.  No license may be returned
   54-2  unless the board determines, under rules established by it, that
   54-3  the licensee is competent to resume practice.
   54-4        SECTION 27.  Section 4.10, Medical Practice Act (Article
   54-5  4495b, Vernon's Texas Civil Statutes), is amended to read as
   54-6  follows:
   54-7        Sec. 4.10.  Petition for Reinstatement.  (a)  Upon
   54-8  application, the board may reissue a license to practice medicine
   54-9  to a person whose license has been canceled, revoked, or suspended,
  54-10  but the application, in the case of revocation, may not be made
  54-11  prior to one year after the revocation was issued or became final
  54-12  and must be made upon payment of the fees as established by the
  54-13  board and in the manner and form and under the conditions as the
  54-14  board may require.  Further, the board may not reinstate or reissue
  54-15  a license to a person whose license has been canceled, revoked, or
  54-16  suspended because of a felony conviction under Chapter 481, Health
  54-17  and Safety Code, Section 485.033, Health and Safety Code, Chapter
  54-18  483, Health and Safety Code, or the Federal Comprehensive Drug
  54-19  Abuse Prevention and Control Act of 1970, 21 U.S.C.A. Section 801
  54-20  et seq. (Public Law 91-513), except on an express determination
  54-21  based on substantial evidence contained in an investigative report
  54-22  indicating that the reinstatement or reissue of the license is in
  54-23  the best interests of the public and of the person whose license
  54-24  has been canceled, revoked, or suspended.
  54-25        (b)  A decision by the board to deny an application to
  54-26  reinstate or reissue a license is subject to judicial review in the
  54-27  manner provided by Section 4.09 of this Act.
   55-1        SECTION 28.  Section 4.11, Medical Practice Act (Article
   55-2  4495b, Vernon's Texas Civil Statutes), is amended to read as
   55-3  follows:
   55-4        Sec. 4.11.  Monitoring of License Holder; Probation.
   55-5  (a)  The board by rule shall develop a system for monitoring the
   55-6  compliance with the requirements of this Act of license holders who
   55-7  are the subject of disciplinary action.  Rules adopted under this
   55-8  section shall include procedures for monitoring a license holder
   55-9  who is ordered by the board to perform certain acts to ascertain
  55-10  that the license holder performs the required acts and to identify
  55-11  and monitor license holders who are the subject of disciplinary
  55-12  action and who present a continuing threat to the public welfare
  55-13  through the practice of medicine.
  55-14        (b)  The board upon majority vote may provide that the order
  55-15  canceling, revoking, or suspending a license or imposing any other
  55-16  method of discipline be probated so long as the probationer
  55-17  conforms to the orders, conditions, and rules that the board may
  55-18  set out as the terms of probation.  However, the board may not
  55-19  grant probation to a person whose license has been canceled,
  55-20  revoked, or suspended because of a felony conviction under Chapter
  55-21  481, Health and Safety Code, Section 485.033, Health and Safety
  55-22  Code, Chapter 483, Health and Safety Code, or the Federal
  55-23  Comprehensive Drug Abuse Prevention and Control Act of 1970, 21
  55-24  U.S.C.A. Section 801 et seq. (Public Law 91-513), except on an
  55-25  express determination, based on substantial evidence, that the
  55-26  grant of probation is in the best interests of the public and of
  55-27  the person whose license has been suspended, revoked, or canceled.
   56-1  The board, at the time of probation, shall set out the period of
   56-2  time that constitutes the probationary period.  The board may not
   56-3  grant probation to a physician who poses, through the practice of
   56-4  medicine, a continuing threat to the public welfare.
   56-5        (c) <(b)>  The board may at any time while a license holder
   56-6  <the probationer> remains on probation, with adequate grounds being
   56-7  shown, cause <hold> a hearing to be held and, upon proof of a
   56-8  violation of the order <majority vote>, rescind the probation and
   56-9  enforce the board's original action and may impose any disciplinary
  56-10  action permitted under Section 4.12 of this Act in addition to or
  56-11  in lieu of enforcing the original order.  The board <and> shall
  56-12  revoke or suspend a probationer's license <do so> if the board
  56-13  determines that the probationer poses, through the practice of
  56-14  medicine, a continuing threat to the public welfare.
  56-15        (d) <(c)>  The hearing to rescind the probation shall be
  56-16  governed by the same provisions as are set forth in this subchapter
  56-17  for other charges.
  56-18        SECTION 29.  Section 4.12, Medical Practice Act (Article
  56-19  4495b, Vernon's Texas Civil Statutes), is amended to read as
  56-20  follows:
  56-21        Sec. 4.12.  Methods of Discipline.  (a)  Except as otherwise
  56-22  provided in Section 4.01, if the board finds any person to have
  56-23  committed any of the acts set forth in Section 3.08 of this Act, it
  56-24  shall enter an order imposing one or more of the following:
  56-25              (1)  deny the person's application for a license or
  56-26  other authorization to practice medicine;
  56-27              (2)  administer a public reprimand;
   57-1              (3)  suspend, limit, or restrict the person's license
   57-2  or other authorization to practice medicine, including limiting the
   57-3  practice of the person to or by the exclusion of one or more
   57-4  specified activities of medicine or stipulating periodic board
   57-5  review;
   57-6              (4)  revoke the person's license or other authorization
   57-7  to practice medicine;
   57-8              (5)  require the person to submit to care, counseling,
   57-9  or treatment of physicians designated by the board as a condition
  57-10  for the initial, continued, or renewal of a license or other
  57-11  authorization to practice medicine;
  57-12              (6)  require the person to participate in a program of
  57-13  education or counseling prescribed by the board;
  57-14              (7)  require the person to practice under the direction
  57-15  of a physician designated by the board for a specified period of
  57-16  time; <or>
  57-17              (8)  require the person to perform public service
  57-18  considered appropriate by the board; or
  57-19              (9)  assess an administrative penalty against the
  57-20  person as provided by Section 4.125 of this Act.
  57-21        (b)  Providing however, if the board determines that, through
  57-22  the practice of medicine, the physician poses a continuing threat
  57-23  to the public welfare, it shall revoke, suspend or deny the
  57-24  license.
  57-25        (c)  In addition to the other disciplinary actions authorized
  57-26  by this section, the board may issue a written reprimand to a
  57-27  license holder who violates this Act or require that a license
   58-1  holder who violates this Act participate in continuing education
   58-2  programs.  The board shall specify the continuing education
   58-3  programs that may be attended and the number of hours that must be
   58-4  completed by an individual license holder to fulfill the
   58-5  requirements of this subsection.
   58-6        (d)  If a license suspension is probated, the board may
   58-7  require the license holder to:
   58-8              (1)  report regularly to the board on matters that are
   58-9  the basis of the probation;
  58-10              (2)  limit practice to the areas prescribed by the
  58-11  board; or
  58-12              (3)  continue or review continuing professional
  58-13  education until the license holder attains a degree of skill
  58-14  satisfactory to the board in those areas that are the basis of the
  58-15  probation.
  58-16        (e)  The schedule of sanctions adopted by the board by rule
  58-17  shall be used by the State Office of Administrative Hearings for
  58-18  any sanction imposed as the result of a hearing conducted by that
  58-19  office.
  58-20        SECTION 30.  Subchapter D, Medical Practice Act (Article
  58-21  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
  58-22  4.125 to read as follows:
  58-23        Sec. 4.125.  ADMINISTRATIVE PENALTY.  (a)  The board by order
  58-24  may impose an administrative penalty against a person licensed or
  58-25  regulated under this Act who violates this Act or a rule or order
  58-26  adopted under this Act.
  58-27        (b)  The penalty for a violation may be in an amount not to
   59-1  exceed $5,000.   Each day a violation continues or occurs is a
   59-2  separate violation for purposes of imposing a penalty.
   59-3        (c)  The amount of the penalty shall be based on:
   59-4              (1)  the seriousness of the violation, including the
   59-5  nature, circumstances, extent, and gravity of any prohibited acts,
   59-6  and the hazard or potential hazard created to the health, safety,
   59-7  or economic welfare of the public;
   59-8              (2)  the economic harm to property or the environment
   59-9  caused by the violation;
  59-10              (3)  the history of previous violations;
  59-11              (4)  the amount necessary to deter future violations;
  59-12              (5)  efforts to correct the violation; and
  59-13              (6)  any other matter that justice may require.
  59-14        (d)  The board by rule shall prescribe the procedure by which
  59-15  it may impose an administrative penalty.
  59-16        (e)  All proceedings under this section are subject to the
  59-17  Administrative Procedure Act and its subsequent amendments.
  59-18        (f)  If the board by order finds that a violation has
  59-19  occurred and imposes an administrative penalty, the board shall
  59-20  give notice to the person of the board's order.  The notice must
  59-21  include a statement of the right of the person to judicial review
  59-22  of the order.
  59-23        (g)  Within 30 days after the date the board's order imposing
  59-24  the penalty is final as provided by Section 16(c), Administrative
  59-25  Procedure Act, and its subsequent amendments, the person shall:
  59-26              (1)  pay the amount of the penalty;
  59-27              (2)  pay the amount of the penalty and file a petition
   60-1  for judicial review contesting the occurrence of the violation, the
   60-2  amount of the penalty, or both the occurrence of the violation and
   60-3  the amount of the penalty; or
   60-4              (3)  without paying the amount of the penalty, file a
   60-5  petition for judicial review contesting the occurrence of the
   60-6  violation, the amount of the penalty, or both the occurrence of the
   60-7  violation and the amount of the penalty.
   60-8        (h)  Within the 30-day period, a person who acts under
   60-9  Subsection (g)(3) of this section may:
  60-10              (1)  stay enforcement of the penalty by:
  60-11                    (A)  paying the amount of the penalty to the
  60-12  court for placement in an escrow account; or
  60-13                    (B)  giving to the court a supersedeas bond that
  60-14  is approved by the court for the amount of the penalty and that is
  60-15  effective until all judicial review of the board's order is final;
  60-16  or
  60-17              (2)  request the court to stay enforcement of the
  60-18  penalty by:
  60-19                    (A)  filing with the court a sworn affidavit of
  60-20  the person stating that the person is financially unable to pay the
  60-21  amount of the penalty and is financially unable to give the
  60-22  supersedeas bond; and
  60-23                    (B)  giving a copy of the affidavit to the
  60-24  executive director by certified mail.
  60-25        (i)  An executive director who receives a copy of an
  60-26  affidavit under Subsection (h)(2) of this section may file with the
  60-27  court, within five days after the date the copy is received, a
   61-1  contest to the affidavit.  The court shall hold a hearing on the
   61-2  facts alleged in the affidavit as soon as practicable and shall
   61-3  stay the enforcement of the penalty on finding that the alleged
   61-4  facts are true.  The person who files an affidavit has the burden
   61-5  of proving that the person is financially unable to pay the amount
   61-6  of the penalty and to give a supersedeas bond.
   61-7        (j)  If the person does not pay the amount of the penalty and
   61-8  the enforcement of the penalty is not stayed, the executive
   61-9  director may refer the matter to the attorney general for
  61-10  collection of the amount of the penalty.
  61-11        (k)  If on appeal the court sustains the occurrence of the
  61-12  violation, the court may uphold or reduce the amount of the penalty
  61-13  and order the person to pay the full or reduced amount of the
  61-14  penalty.  If the court does not sustain the occurrence of the
  61-15  violation, the court shall order that no penalty is owed.
  61-16        (l)  When the judgment of the court becomes final, the court
  61-17  shall proceed under this subsection.  If the person paid the amount
  61-18  of the penalty and if that amount is reduced or is not upheld by
  61-19  the court, the court shall order that the appropriate amount plus
  61-20  accrued interest be remitted to the person.  The rate of the
  61-21  interest is the rate charged on loans to depository institutions by
  61-22  the New York Federal Reserve Bank, and the interest shall be paid
  61-23  for the period beginning on the date the penalty was paid and
  61-24  ending on the date the penalty is remitted.  If the person gave a
  61-25  supersedeas bond and if the amount of the penalty is not upheld by
  61-26  the court, the court shall order the release of the bond.  If the
  61-27  person gave a supersedeas bond and if the amount of the penalty is
   62-1  reduced, the court shall order the release of the bond after the
   62-2  person pays the amount.
   62-3        (m)  A penalty collected under this section shall be remitted
   62-4  to the comptroller for deposit in the general revenue fund.
   62-5        SECTION 31.  Subchapter D, Medical Practice Act (Article
   62-6  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
   62-7  4.126 to read as follows:
   62-8        Sec. 4.126.  CIVIL PENALTY.  (a)  If it appears that a person
   62-9  is in violation of or is threatening to violate this Act or a rule
  62-10  or order adopted by the board, the attorney general may institute
  62-11  an action for a civil penalty of $1,000 for each violation.  Each
  62-12  day of a violation shall constitute a separate violation.
  62-13        (b)  A civil action filed under this section by the attorney
  62-14  general  must be filed in a district court in Travis County or the
  62-15  county in which the violation occurred.
  62-16        (c)  The attorney general may recover reasonable expenses
  62-17  incurred in obtaining a civil penalty under this section, including
  62-18  court costs, reasonable attorney fees, investigative costs, witness
  62-19  fees, and deposition expenses.
  62-20        (d)  A civil penalty recovered in an action by the attorney
  62-21  general  under this section shall be deposited in the general
  62-22  revenue fund.
  62-23        SECTION 32.  Section 4.13, Medical Practice Act (Article
  62-24  4495b, Vernon's Texas Civil Statutes), is amended to read as
  62-25  follows:
  62-26        Sec. 4.13.  Temporary Suspension of License.  (a)  The
  62-27  president of the board, with the approval of the board, shall
   63-1  appoint a three-member disciplinary panel consisting of members of
   63-2  the board for the purpose of determining whether a person's license
   63-3  to practice medicine in this state should be temporarily suspended
   63-4  under this section.
   63-5        (b)  If the disciplinary panel <executive committee of the
   63-6  board> determines from the evidence or information presented to it
   63-7  that a person licensed to practice medicine in this state by his
   63-8  continuation in practice would constitute a continuing threat to
   63-9  the public welfare, the disciplinary panel <executive committee of
  63-10  the board> shall temporarily suspend the license of that person.
  63-11        (c)  The license may be suspended under this section without
  63-12  notice or hearing on the complaint, provided institution of
  63-13  proceedings for a hearing before the board is initiated
  63-14  simultaneously with the temporary suspension and provided that a
  63-15  hearing is held as soon as can be accomplished under the
  63-16  Administrative Procedure Act and this Act.
  63-17        (d)  Notwithstanding the open meetings law, Chapter 271, Acts
  63-18  of the 60th Legislature, Regular Session, 1967 (Article 6252-17,
  63-19  Vernon's Texas Civil Statutes), the disciplinary panel may hold a
  63-20  meeting by telephone conference call if immediate action is
  63-21  required and the convening at one location of the disciplinary
  63-22  panel is inconvenient for any member of the disciplinary panel.
  63-23        SECTION 33.  Subchapter E, Medical Practice Act (Article
  63-24  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
  63-25  5.035 to read as follows:
  63-26        Sec. 5.035.  GRADUATES OF UNAPPROVED FOREIGN MEDICAL SCHOOLS.
  63-27  (a)  An applicant who is a graduate of a medical school that is
   64-1  located outside the United States and Canada and that was not
   64-2  approved by the board at the time the degree was conferred, to be
   64-3  eligible for the issuance of a license, must present satisfactory
   64-4  proof to the board that the applicant:
   64-5              (1)  meets the requirements set out in Sections
   64-6  3.04(a)(1), (2), and (3) of this Act;
   64-7              (2)  is a graduate of a school whose curriculum meets
   64-8  the requirements for an unapproved medical school as determined by
   64-9  a committee of experts selected by the Texas Higher Education
  64-10  Coordinating Board;
  64-11              (3)  has successfully completed three years of graduate
  64-12  medical training in the United States or Canada that was approved
  64-13  by the board on the date the training was completed;
  64-14              (4)  is eligible for licensure to practice medicine in
  64-15  the country in which the school is located;
  64-16              (5)  possesses a valid certificate issued by the
  64-17  Educational Commission for Foreign Medical Graduates;
  64-18              (6)  has the ability to communicate in the English
  64-19  language; and
  64-20              (7)  has passed the examination required by the board
  64-21  of all applicants for license as required by Section 3.05 of this
  64-22  Act.
  64-23        (b)  In addition to other licensure requirements, the board
  64-24  may require by rule that a graduate of an unapproved medical school
  64-25  located outside the United States and Canada or the school of which
  64-26  the person is a graduate provide additional information to the
  64-27  board concerning the school before approving the applicant.
   65-1        (c)  The board may refuse to issue a license to an applicant
   65-2  who graduated from an unapproved medical school located outside the
   65-3  United States and Canada if it finds that the applicant does not
   65-4  possess the requisite qualifications to provide the same standard
   65-5  of medical care as provided by a physician licensed in this state.
   65-6        (d)  The board may refuse to issue a license to an applicant
   65-7  who graduated from an unapproved medical school located outside the
   65-8  United States and Canada if the applicant fails to provide the
   65-9  board evidence to establish that the applicant completed medical
  65-10  education or professional training substantially equivalent to that
  65-11  provided by a medical school in this state.
  65-12        SECTION 34.  Section 5.04, Medical Practice Act (Article
  65-13  4495b, Vernon's Texas Civil Statutes), is amended to read as
  65-14  follows:
  65-15        Sec. 5.04.  FIFTH PATHWAY FOR FOREIGN MEDICAL SCHOOL
  65-16  STUDENTS.  (a)  An applicant <Notwithstanding any other provision
  65-17  of law, an individual> who has been a student of a foreign medical
  65-18  school, to be eligible for the  issuance of a license, must present
  65-19  satisfactory proof to the board that the applicant <is eligible for
  65-20  licensure to practice medicine in this state if he>:
  65-21              (1)  meets the requirements set out in Sections
  65-22  3.04(a)(1), (2), and (3) of this Act;
  65-23              (2)  has studied medicine in an acceptable <a
  65-24  reputable> medical school as defined by the board located outside
  65-25  the United States and Canada;
  65-26              (3) <(2)>  has completed all of the didactic work of
  65-27  the foreign medical school but has not graduated from the school;
   66-1              (4) <(3)>  has attained a score satisfactory to a
   66-2  medical school in the United States approved by the Liaison
   66-3  Committee on Medical Education on a qualifying examination and has
   66-4  satisfactorily completed one academic year of supervised clinical
   66-5  training for foreign medical students as defined by the American
   66-6  Medical Association Council on Medical Education (Fifth Pathway
   66-7  Program) under the direction of the medical school in the United
   66-8  States;
   66-9              (5) <(4)>  has attained a passing score on the
  66-10  Educational Commission <Council> for Foreign Medical Graduates
  66-11  examination, or other examination, if required by the board; <and>
  66-12              (6)  has successfully completed three years of graduate
  66-13  medical training in the United States or Canada that was approved
  66-14  by the board on the date the training was completed; and
  66-15              (7) <(5)>  has passed the examination required by the
  66-16  board of all applicants for license as required by Section 3.05 of
  66-17  this Act.
  66-18        (b)  Satisfaction of the requirements of Subsection (a) of
  66-19  this section are in lieu of the completion of any requirements of
  66-20  the foreign medical school beyond completion of the didactic work,
  66-21  and no other medical education requirements shall be a condition of
  66-22  licensure to practice medicine in this state.
  66-23        (c)  Satisfaction of the requirements specified in Subsection
  66-24  (a) of this section shall be in lieu of certification by the
  66-25  Educational Commission <Council> for Foreign Medical Graduates, and
  66-26  the certification is not a condition of licensure to practice
  66-27  medicine in this state for candidates who have completed the
   67-1  requirements of Subsection (a) of this section.
   67-2        (d)  A hospital that is licensed by this state, that is
   67-3  operated by the state or a political subdivision of the state, or
   67-4  that receives state financial assistance, directly or indirectly,
   67-5  may not require an individual who has been a student of a foreign
   67-6  medical school but has not graduated from the school to satisfy any
   67-7  requirements other than those contained in <Subdivisions (1), (2),
   67-8  (3), and (4) of> Subsection (a) of this section prior to commencing
   67-9  an internship or residency.
  67-10        (e)  A document granted by a medical school located outside
  67-11  the United States issued after the completion of all the didactic
  67-12  work of the foreign medical school shall, on certification by the
  67-13  medical school in the United States in which the training was
  67-14  received of satisfactory completion by the person to whom the
  67-15  document was issued of the requirements listed in Subdivision (4)
  67-16  <(3)> of Subsection (a) of this section, be considered the
  67-17  equivalent of a degree of doctor of medicine or doctor of
  67-18  osteopathy for purposes of licensure.
  67-19        SECTION 35.  Section 5.08, Medical Practice Act (Article
  67-20  4495b, Vernon's Texas Civil Statutes), is amended by amending
  67-21  Subsections (d) and (k) and adding Subsection (n) to read as
  67-22  follows:
  67-23        (d)  The prohibitions of this section continue to apply to
  67-24  confidential communications or records concerning any patient
  67-25  irrespective of when the patient received the services of a
  67-26  physician, except for medical records 100 years old or older
  67-27  requested for historical purposes.
   68-1        (k)  A physician shall furnish copies of medical records
   68-2  requested, or a summary or narrative of the records, pursuant to a
   68-3  written consent for release of the information as provided by
   68-4  Subsection (j) of this section, except if the physician determines
   68-5  that access to the information would be harmful to the physical,
   68-6  mental, or emotional health of the patient, and the physician may
   68-7  delete confidential information about another person who has not
   68-8  consented to the release.  The information shall be furnished by
   68-9  the physician within 30 days after the date of receipt of the
  68-10  request <a reasonable period of time> and reasonable fees for
  68-11  furnishing the information shall be paid by the patient or someone
  68-12  on his behalf.  If the physician denies the request, in whole or in
  68-13  part, the physician shall furnish the patient a written statement,
  68-14  signed and dated, stating the reason for the denial.  A copy of the
  68-15  statement denying the request shall be placed in the patient's
  68-16  medical records.  In this subsection, "medical records" means any
  68-17  records pertaining to the history, diagnosis, treatment, or
  68-18  prognosis of the patient.
  68-19        (n)  A person who may provide a copy of a record or a summary
  68-20  of the record to another under this section may provide the copy,
  68-21  summary, or narrative:
  68-22              (1)  on paper; or
  68-23              (2)  on microfilm, microfiche, computer hard disk,
  68-24  magnetic tape, optical disk, or by means of another appropriate
  68-25  medium, including a machine-readable medium, if the person who is
  68-26  to provide and the person who is to receive the copy, summary, or
  68-27  narrative agree to a form authorized by this subdivision.
   69-1        SECTION 36.  Section 5.10, Medical Practice Act (Article
   69-2  4495b, Vernon's Texas Civil Statutes), is amended to read as
   69-3  follows:
   69-4        Sec. 5.10.  Sunset provision.  The Texas State Board of
   69-5  Medical Examiners is subject to Chapter 325, Government Code (Texas
   69-6  Sunset Act).  Unless continued in existence as provided by that
   69-7  chapter, the board is abolished and this Act expires September 1,
   69-8  2005 <1993>.
   69-9        SECTION 37.  The Medical Practice Act (Article 4495b,
  69-10  Vernon's Texas Civil Statutes) is amended by adding Subchapter F to
  69-11  read as follows:
  69-12                  SUBCHAPTER F.  ACUPUNCTURE PRACTICE
  69-13        Sec. 6.01.  LEGISLATIVE FINDINGS AND PURPOSE.  The
  69-14  legislature finds that:
  69-15              (1)  the review and establishment of statewide
  69-16  standards for the training, education, and discipline of persons
  69-17  performing acupuncture are in the public interest; and
  69-18              (2)  the health, safety, and welfare of the people of
  69-19  this state are best served by an orderly system of regulating the
  69-20  practice of acupuncture.
  69-21        Sec. 6.02.  DEFINITIONS.  In this subchapter:
  69-22              (1)  "Acupuncture" means:
  69-23                    (A)  the insertion of an acupuncture needle and
  69-24  the application of moxibustion to specific areas of the human body
  69-25  as a primary mode of therapy to treat and mitigate a human
  69-26  condition; and
  69-27                    (B)  the administration of thermal or electrical
   70-1  treatments or the recommendation of dietary guidelines, therapeutic
   70-2  exercise, or dietary or herbal supplements in conjunction with the
   70-3  treatment described by Paragraph (A) of this subdivision.
   70-4              (2)  "Acupuncturist" means a person who practices
   70-5  acupuncture.
   70-6              (3)  "Acupuncture board" means the Texas State Board of
   70-7  Acupuncture Examiners.
   70-8              (4)  "Chiropractor" means a licensee of the Texas Board
   70-9  of Chiropractic Examiners.
  70-10              (5)  "Executive director" means the executive director
  70-11  of the Texas State Board of Medical Examiners.
  70-12              (6)  "Medical board" means the Texas State Board of
  70-13  Medical Examiners.
  70-14              (7)  "Physician" means a licensee of the Texas State
  70-15  Board of Medical Examiners.
  70-16        Sec. 6.03.  EXEMPTION; LIMITATION.  (a)  This subchapter does
  70-17  not apply to a health care professional licensed under another
  70-18  subchapter of this Act or another statute of this state and acting
  70-19  within the scope of the license.
  70-20        (b)  This subchapter does not:
  70-21              (1)  limit the practice of medicine by a physician or
  70-22  permit the unauthorized practice of medicine; or
  70-23              (2)  permit a person to dispense, administer, or supply
  70-24  any controlled substance, narcotic, or dangerous drug if the person
  70-25  is not otherwise authorized by law to do so.
  70-26        Sec. 6.04.  ACUPUNCTURE BOARD.  (a)  The Texas State Board of
  70-27  Acupuncture Examiners is composed of nine members appointed by the
   71-1  governor as follows:
   71-2              (1)  four acupuncturists who have at least five years
   71-3  of experience in the practice of acupuncture in this state and are
   71-4  not licensed in this state as physicians;
   71-5              (2)  two physicians who are licensed in this state and
   71-6  are experienced in the practice of acupuncture; and
   71-7              (3)  three members of the general public who are not
   71-8  licensed or trained in a health care profession and who represent
   71-9  the public.
  71-10        (b)  The following persons may not serve on the acupuncture
  71-11  board:
  71-12              (1)  a person who is required to register as a lobbyist
  71-13  under Chapter 305, Government Code, and its subsequent amendments;
  71-14  and
  71-15              (2)  a person who is currently employed by or serving
  71-16  as president, vice-president, secretary, or treasurer of a
  71-17  statewide or national organization incorporated for the purpose of
  71-18  representing a health care profession in this state or the United
  71-19  States.
  71-20        (c)  Members of the acupuncture board hold office for
  71-21  staggered terms of six years, with three members' terms expiring
  71-22  January 31 of each odd-numbered year.
  71-23        (d)  The governor shall designate a presiding officer of the
  71-24  acupuncture board from the members of the acupuncture board.
  71-25        (e)  A vacancy on the acupuncture board shall be filled by
  71-26  appointment of the governor.
  71-27        (f)  A member of the acupuncture board may not receive
   72-1  compensation for service on the board but is entitled to receive a
   72-2  per diem as set by legislative appropriation for transportation and
   72-3  related expenses incurred for each day that the member engages in
   72-4  the business of the board.
   72-5        (g)  The acupuncture board is subject to the open meetings
   72-6  law, the open records law, and the Administrative Procedure Act and
   72-7  any subsequent amendments.
   72-8        (h)  The acupuncture board is subject to Chapter 325,
   72-9  Government Code (Texas Sunset Act).  Unless continued in existence
  72-10  as provided by that chapter, the board is abolished and this
  72-11  subchapter expires September 1, 1997.
  72-12        Sec. 6.05.  POWERS AND DUTIES OF ACUPUNCTURE BOARD.
  72-13  (a)  Subject to the advice and approval of the medical board, the
  72-14  acupuncture board shall:
  72-15              (1)  establish qualifications for an acupuncturist to
  72-16  practice in this state;
  72-17              (2)  establish minimum educational and training
  72-18  requirements necessary for the acupuncture board to recommend that
  72-19  the medical board issue a license to practice acupuncture;
  72-20              (3)  administer an examination that is validated by
  72-21  independent testing professionals for a license to practice
  72-22  acupuncture;
  72-23              (4)  develop requirements for licensure by endorsement
  72-24  of other states;
  72-25              (5)  prescribe the application form for a license to
  72-26  practice acupuncture;
  72-27              (6)  make recommendations on applications for licenses
   73-1  to practice acupuncture;
   73-2              (7)  establish a procedure for reporting and processing
   73-3  complaints relating to the practice of acupuncture under this
   73-4  article;
   73-5              (8)  establish the requirements for a tutorial program
   73-6  for students who have completed at least 48 semester hours of
   73-7  college; and
   73-8              (9)  recommend additional rules as are necessary for
   73-9  the administration and enforcement of this subchapter.
  73-10        (b)  Notwithstanding Subsection (a) of this section, the
  73-11  acupuncture board has no independent rulemaking authority.
  73-12        Sec. 6.06.  LICENSE REQUIRED.  A person may not practice
  73-13  acupuncture in this state unless the person holds a license to
  73-14  practice acupuncture issued by the medical board under this
  73-15  subchapter.
  73-16        Sec. 6.07.  QUALIFICATIONS OF ACUPUNCTURISTS.  (a)  An
  73-17  applicant for a license to practice acupuncture who is not
  73-18  otherwise licensed under this subchapter must pass an examination
  73-19  approved by the acupuncture board.
  73-20        (b)  To be eligible for the examination, an applicant must:
  73-21              (1)  be at least 21 years of age;
  73-22              (2)  have completed at least 48 semester hours of
  73-23  college courses, including basic science courses as determined by
  73-24  the advisory board; and
  73-25              (3)  be a graduate of an acceptable acupuncture school
  73-26  whose entrance requirements and course of instruction meet
  73-27  standards set by the acupuncture board.
   74-1        (c)  A reputable acupuncture school must:
   74-2              (1)  maintain a resident course of instruction
   74-3  equivalent to not less than six terms of four months each for a
   74-4  total of not less than 1,800 instructional hours;
   74-5              (2)  provide supervised patient treatment for at least
   74-6  two terms of the resident course of instruction;
   74-7              (3)  maintain a course of instruction in
   74-8  anatomy-histology, bacteriology, physiology, symptomatology,
   74-9  pathology, meridian and point locations, hygiene, and public
  74-10  health; and
  74-11              (4)  have the necessary teaching force and facilities
  74-12  for proper instruction in required subjects.
  74-13        (d)  In establishing standards for the entrance requirements
  74-14  and course of instruction of an acupuncture school, the acupuncture
  74-15  board may consider the standards set by the National Accreditation
  74-16  Commission for Schools and Colleges of Acupuncture and Oriental
  74-17  Medicine.
  74-18        (e)  The examination shall be conducted on practical and
  74-19  theoretical acupuncture and other subjects required by the
  74-20  acupuncture board.
  74-21        (f)  An application for examination must be:
  74-22              (1)  in writing on a form prescribed by the acupuncture
  74-23  board;
  74-24              (2)  verified by affidavit;
  74-25              (3)  filed with the executive director of the medical
  74-26  board; and
  74-27              (4)  accompanied by a fee set by the medical board.
   75-1        (g)  The medical board shall notify all applicants of the
   75-2  time and place of the examination.
   75-3        (h)  The examination may be in writing, by a practical
   75-4  demonstration of the applicant's skill, or both, as the acupuncture
   75-5  board may require.
   75-6        Sec. 6.08.  ASSISTANCE BY MEDICAL BOARD.  The medical board
   75-7  shall provide administrative and clerical employees as necessary to
   75-8  enable the acupuncture board to carry out this subchapter.
   75-9        Sec. 6.09.  FEES.  (a)  The medical board shall set and
  75-10  collect fees in amounts that are reasonable and necessary to cover
  75-11  the costs of administering and enforcing this subchapter without
  75-12  the use of any other funds generated by the medical board.
  75-13        (b)  Fees collected by the medical board under this
  75-14  subchapter shall be deposited by the medical board in the state
  75-15  treasury to the credit of a special account in the general revenue
  75-16  fund.  The special account may be used only to cover the costs of
  75-17  administering and enforcing this subchapter.  The special account
  75-18  is exempt from Section 403.094(h), Government Code, and its
  75-19  subsequent amendments.
  75-20        Sec. 6.10.  ISSUANCE OF LICENSE.  (a)  After consulting the
  75-21  acupuncture board, the medical board shall issue a license to
  75-22  practice acupuncture in this state to a person who meets the
  75-23  requirements of this subchapter and the rules adopted under this
  75-24  subchapter.
  75-25        (b)  The medical board shall by rule provide for the annual
  75-26  renewal of a license to practice acupuncture.
  75-27        Sec. 6.11.  DENIAL OF LICENSE; DISCIPLINE OF LICENSE HOLDER.
   76-1  (a)  A license to practice acupuncture may be denied or, after
   76-2  notice and hearing, suspended, probated, or revoked if the
   76-3  applicant for a license or the holder of a license:
   76-4              (1)  uses drugs or intoxicating liquors to an extent
   76-5  that affects the person's professional competence;
   76-6              (2)  obtains or attempts to obtain a license by fraud
   76-7  or deception;
   76-8              (3)  is adjudged mentally incompetent by a court of
   76-9  competent jurisdiction;
  76-10              (4)  practices acupuncture in a manner detrimental to
  76-11  the public health and welfare;
  76-12              (5)  violates this subchapter or a rule adopted under
  76-13  this subchapter;
  76-14              (6)  is convicted of a felony or a crime involving
  76-15  moral turpitude; or
  76-16              (7)  holds himself out as a physician or surgeon or any
  76-17  combination or derivative of those terms unless the person is also
  76-18  licensed by the medical board as a physician or surgeon.
  76-19        (b)  Except as provided by Subsection (c) of this section, a
  76-20  license to practice acupuncture shall be denied or, after notice
  76-21  and hearing, revoked if the holder of a license has performed
  76-22  acupuncture on a person who was not evaluated by a physician or
  76-23  dentist, as appropriate, for the condition being treated within six
  76-24  months before the date acupuncture was performed.
  76-25        (c)  The holder of a license may perform acupuncture on a
  76-26  person who was referred by a doctor licensed to practice
  76-27  chiropractic by the Texas Board of Chiropractic Examiners if the
   77-1  licensee commences the treatment within 30 days of the date of the
   77-2  referral.  The licensee shall refer the person to a physician after
   77-3  performing acupuncture 20 times or for 30 days, whichever occurs
   77-4  first, if no substantial improvement occurs in the person's
   77-5  condition for which the referral was made.
   77-6        (d)  The holder of a license must obtain reasonable
   77-7  documentation that the evaluation required by Subsection (b) of
   77-8  this section has taken place.  If the licensee is unable to
   77-9  determine that an evaluation has taken place, the licensee must
  77-10  obtain a written statement signed by the person on a form
  77-11  prescribed by the acupuncture board that states that the person has
  77-12  been evaluated by a physician within the prescribed time frame.
  77-13  The form shall contain a clear statement that the person should be
  77-14  evaluated by a physician for the condition being treated by the
  77-15  licensee.
  77-16        (e)  The medical board with advice from the acupuncture board
  77-17  by rule may modify the requirement of the time frame or the scope
  77-18  of the evaluation under Subsection (b) of this section.
  77-19        (f)  The medical board with advice from the acupuncture board
  77-20  by rule may modify the requirement of the time frame for
  77-21  commencement of treatment after referral by a chiropractor or the
  77-22  number of treatments or days before referral to a physician is
  77-23  required under Subsection (c) of this section.
  77-24        (g)  Notwithstanding Subsections (b) and (c) of this section,
  77-25  an acupuncturist holding a current and valid license may without a
  77-26  referral from a physician, dentist, or chiropractor perform
  77-27  acupuncture on a person for smoking addiction, weight loss, or, as
   78-1  established by the medical board with advice from the acupuncture
   78-2  board by rule, substance abuse.
   78-3        Sec. 6.12.  OFFENSE.  (a)  A person commits an offense if the
   78-4  person violates Section 6.06 of this Act.
   78-5        (b)  An offense under Subsection (a) of this section is a
   78-6  Class A misdemeanor.
   78-7        (c)  Each day of a violation constitutes a separate offense.
   78-8        Sec. 6.13.  INJUNCTIVE RELIEF; CIVIL PENALTY.  (a)  The
   78-9  medical board, the attorney general, or a district or county
  78-10  attorney may bring a civil action to compel compliance with this
  78-11  subchapter or to enforce a rule adopted under this subchapter.
  78-12        (b)  In addition to injunctive relief or any other remedy
  78-13  provided by law, a person who violates this subchapter or a rule
  78-14  adopted under this subchapter is liable to the state for a civil
  78-15  penalty in an amount not to exceed $2,000 for each violation.  Each
  78-16  day a violation continues or occurs is a separate violation for
  78-17  purposes of imposing a civil penalty.  The attorney general, at the
  78-18  request of the medical board or on the attorney general's own
  78-19  initiative, may bring a civil action to collect a civil penalty
  78-20  under this subsection.  A civil penalty recovered shall be
  78-21  deposited to the credit of the general revenue fund.
  78-22        Sec. 6.14.  AUTOMATIC LICENSURE.  (a)  With the approval of
  78-23  the medical board, the acupuncture board shall establish
  78-24  appropriate and reasonable requirements to determine those persons
  78-25  practicing acupuncture on the effective date of this subchapter who
  78-26  are eligible for immediate approval for a license to practice
  78-27  acupuncture under this section.
   79-1        (b)  This section only applies to a person who meets the
   79-2  requirements for immediate licensure under this section and who
   79-3  applies for immediate approval on or before June 1, 1994.
   79-4        (c)  This section expires June 2, 1994.
   79-5        SECTION 38.  Subsection (a), Section 19, Texas Medical
   79-6  Physics Practice Act (Article 4512n, Vernon's Texas Civil
   79-7  Statutes), is amended to read as follows:
   79-8        (a)  The board may issue a license to practice medical
   79-9  physics in this state, without an examination, to a person who,
  79-10  before September 1, 1994, is a resident of this state and:
  79-11              (1)  has an earned bachelor's, master's, or doctoral
  79-12  degree from an accredited college or university that signifies the
  79-13  completion of courses approved by the board in physics, medical
  79-14  physics, biophysics, radiological physics, medical health physics,
  79-15  or nuclear engineering and demonstrated to the board's satisfaction
  79-16  the completion of at least two years of full-time work experience
  79-17  in the five years preceding January 1, 1993, <the effective date of
  79-18  this Act> in the medical physics specialty for which application is
  79-19  made; or
  79-20              (2)  has completed a training course approved by the
  79-21  board in physics, medical physics, biophysics, radiological
  79-22  physics, or medical health physics and demonstrated to the board's
  79-23  satisfaction the completion of at least 10 years of full-time work
  79-24  experience in the 12 years preceding January 1, 1993, <the
  79-25  effective date of this Act> in the medical physics specialty for
  79-26  which application is made.
  79-27        SECTION 39.  (a)  The changes in law made by this Act in the
   80-1  qualifications of, and the prohibitions applying to, members of the
   80-2  Texas State Board of Medical Examiners do not affect the
   80-3  entitlement of a member serving on the board immediately before the
   80-4  effective date of this Act to continue to carry out the functions
   80-5  of the board for the remainder of the member's term.  The changes
   80-6  in law apply only to a member appointed on or after the effective
   80-7  date of this Act.  This Act does not prohibit a person who is a
   80-8  member of the board on the effective date of this Act from being
   80-9  reappointed to the board if the person has the qualifications
  80-10  required for a member under the Medical Practice Act (Article
  80-11  4495b, Vernon's Texas Civil Statutes), as amended by this Act.  As
  80-12  the terms of members of the board expire or as vacancies occur on
  80-13  the board, the governor shall appoint members to the board to
  80-14  achieve, as soon as possible, the membership plan prescribed for
  80-15  the board by this Act.
  80-16        (b)  The changes in law made by this Act relating to an
  80-17  administrative penalty or civil penalty apply only to a violation
  80-18  of the Medical Practice Act (Article 4495b, Vernon's Texas Civil
  80-19  Statutes) or a rule or order adopted by the Texas State Board of
  80-20  Medical Examiners that occurs on or after the effective date of
  80-21  this Act.  A violation occurs on or after the effective date of
  80-22  this Act only if each element of the violation occurs on or after
  80-23  that date.  A violation that occurs before the effective date of
  80-24  this Act is governed by the law in effect on the date the violation
  80-25  occurred, and the former law is continued in effect for that
  80-26  purpose.
  80-27        (c)  A person is not required to obtain a license to practice
   81-1  acupuncture under Subchapter F, Medical Practice Act (Article
   81-2  4495b, Vernon's Texas Civil Statutes), as added by this Act, until
   81-3  June 1, 1994.
   81-4        (d)  The Texas State Board of Medical Examiners shall adopt
   81-5  rules under Subchapter F, Medical Practice Act (Article 4495b,
   81-6  Vernon's Texas Civil Statutes), as added by this Act, not later
   81-7  than February 1, 1994.
   81-8        (e)  Not later than January 1, 1994, the governor shall make
   81-9  initial appointments to the Texas State Board of Acupuncture
  81-10  Examiners and shall designate three members for terms expiring
  81-11  January 31, 1995, three members for terms expiring January 31,
  81-12  1997, and three members for terms expiring January 31, 1999.
  81-13        (f)  Notwithstanding other provisions of this Act, Sections
  81-14  6.06 and 6.12 of the Medical Practice Act (Article 4495b, Vernon's
  81-15  Texas Civil Statutes), as added by this Act, take effect June 1,
  81-16  1994.
  81-17        SECTION 40.  This Act takes effect September 1, 1993.
  81-18        SECTION 41.  The importance of this legislation and the
  81-19  crowded condition of the calendars in both houses create an
  81-20  emergency and an imperative public necessity that the
  81-21  constitutional rule requiring bills to be read on three several
  81-22  days in each house be suspended, and this rule is hereby suspended.