73R10746 E
          By Parker, Moncrief                                   S.B. No. 1062
          Substitute the following for S.B. No. 1062:
          By Berlanga                                       C.S.S.B. No. 1062
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the continuation and operation of the Texas State Board
    1-3  of Medical Examiners and to the regulation of the practice of
    1-4  medicine, including the practice of acupuncture; providing
    1-5  penalties.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Section 1.03(a), Medical Practice Act (Article
    1-8  4495b, Vernon's Texas Civil Statutes), is amended by amending
    1-9  Subdivision (6) to read as follows:
   1-10              (6)  "Medical peer review committee" or "professional
   1-11  review body" means a committee of a health-care entity, the
   1-12  governing board of a health-care entity, or the medical staff of a
   1-13  health-care entity, provided the committee or medical staff
   1-14  operates pursuant to written bylaws that have been approved by the
   1-15  policy-making body or the governing board of the health-care entity
   1-16  and authorized to evaluate the quality of medical and health-care
   1-17  services or the competence of physicians, including those functions
   1-18  specified by Section 85.204, Health and Safety Code, and its
   1-19  subsequent amendments.  Such a committee includes the employees and
   1-20  agents of the committee, including assistants, investigators,
   1-21  intervenors, attorneys, and any other persons or organizations that
   1-22  serve the committee in any capacity.
   1-23        SECTION 2.  Section 2.03, Medical Practice Act (Article
   1-24  4495b, Vernon's Texas Civil Statutes), is amended to read as
    2-1  follows:
    2-2        Sec. 2.03.  Appointment to Board.  Members of the board shall
    2-3  be appointed by the governor and confirmed by the senate.  Any
    2-4  vacancy on the board shall be filled by appointment of the
    2-5  governor.  Any appointment made shall be without regard to race,
    2-6  color, disability <creed>, sex, religion, age, or national origin,
    2-7  except that a person younger than 18 years of age is not eligible
    2-8  for appointment.
    2-9        SECTION 3.  Section 2.04, Medical Practice Act (Article
   2-10  4495b, Vernon's Texas Civil Statutes), is amended to read as
   2-11  follows:
   2-12        Sec. 2.04.  Removal from Office.  (a)  It is a ground for
   2-13  removal from the board if a member:
   2-14              (1)  does not have at the time of appointment the
   2-15  qualifications required by Sections 2.05(a), (b), (c), (d), and (e)
   2-16  of this Act;
   2-17              (2)  does not maintain during service on the board the
   2-18  qualifications required by Sections 2.05(a), (b), (c), (d), and (e)
   2-19  of this Act;
   2-20              (3)  violates a prohibition established by Section
   2-21  2.05(f), (g), (h), (j), or (k) of this Act;
   2-22              (4)  cannot discharge the member's duties for a
   2-23  substantial part of the term for which the member is appointed
   2-24  because of illness or disability; or
   2-25              (5)  is absent from more than half of the regularly
   2-26  scheduled board meetings that the member is eligible to attend
   2-27  during a calendar year<, during a member's service on the board,
    3-1  the member fails to meet the qualifications set forth in this Act
    3-2  for members of the board.  The validity of an action of the board
    3-3  is not affected by the fact that it was taken when a ground for
    3-4  removal of a member of the board existed>.
    3-5        (b)  The validity of an action of the board is not affected
    3-6  by the fact that it is taken when a ground for removal of a board
    3-7  member exists <Each member of the board shall be present for at
    3-8  least one-half of the regularly scheduled board meetings held each
    3-9  year.  Failure of a board member to meet this requirement is
   3-10  grounds for removal of the member from the board and the removal
   3-11  creates a vacancy on the board>.
   3-12        (c)  If the executive director has knowledge that a potential
   3-13  ground for removal exists, the executive director shall notify the
   3-14  president of the board of the ground.  The president shall then
   3-15  notify the governor that a potential ground for removal exists.
   3-16        SECTION 4.  Section 2.05, Medical Practice Act (Article
   3-17  4495b, Vernon's Texas Civil Statutes), is amended by amending
   3-18  Subsections (b), (c), (d), (g), (h), and (i) and adding Subsections
   3-19  (j), (k), and (l) to read as follows:
   3-20        (b)  Eight <Nine> members of the board must:
   3-21              (1)  be learned and eminent physicians licensed to
   3-22  practice medicine within this state for at least three years prior
   3-23  to appointment and be graduates of a reputable medical school or
   3-24  college with a degree of doctor of medicine (M.D.); <and>
   3-25              (2)  have been actively engaged in the practice of
   3-26  medicine for at least five years immediately preceding their
   3-27  appointment; and
    4-1              (3)  have been actively engaged in organized peer
    4-2  review at a health care entity for at least three years immediately
    4-3  preceding their appointment.
    4-4        (c)  Three members of the board must:
    4-5              (1)  be learned and eminent physicians licensed to
    4-6  practice medicine within this state for at least three years prior
    4-7  to appointment and be graduates of a reputable medical school or
    4-8  college with a degree of doctor of osteopathic medicine (D.O.);
    4-9  <and>
   4-10              (2)  have been actively engaged in the practice of
   4-11  medicine for at least five years immediately preceding their
   4-12  appointment; and
   4-13              (3)  have been actively engaged in organized peer
   4-14  review at a health care entity for at least three years immediately
   4-15  preceding their appointment.
   4-16        (d)  Four <Three> members of the board must be public
   4-17  representatives who are not licensed to practice medicine, who are
   4-18  not financially involved in any organization subject to the
   4-19  regulation of the board, and who are not providers of health care.
   4-20  "Provider of health care" means:
   4-21              (1)  an individual who is a direct provider of health
   4-22  care (including but not limited to a dentist, registered nurse,
   4-23  licensed vocational nurse, chiropractor, podiatrist, physician
   4-24  assistant, psychologist, athletic trainer, physical therapist,
   4-25  social psychotherapist, pharmacist, optometrist, hospital
   4-26  administrator, or nursing home administrator) in that the
   4-27  individual's primary current activity is the provision of health
    5-1  care to individuals or the administration of facilities or
    5-2  institutions (including but not limited to hospitals, long-term
    5-3  care facilities, out-patient facilities, and health maintenance
    5-4  organizations) in which such care is provided and, when required by
    5-5  law or otherwise, the individual has received professional or other
    5-6  training in the provision of such care or in such administration
    5-7  and is licensed or certified or holds himself out for such
    5-8  provision or administration;
    5-9              (2)  one who is an indirect provider of health care in
   5-10  that the individual holds a fiduciary position with or has a
   5-11  fiduciary interest in an entity described below in this
   5-12  subdivision; for purposes of this subdivision, a fiduciary position
   5-13  or interest as applied to any entity means a position or interest
   5-14  with respect to such entity affected with the character of a trust,
   5-15  including members of boards of directors and officers, majority
   5-16  shareholders, or agents, and receivers (either directly or through
   5-17  their spouses) of more than one-tenth of their annual income from
   5-18  any one or combination of fees or other compensation for research
   5-19  into or instruction in the provision of health-care entities (or
   5-20  associations or organizations composed of such entities) engaged
   5-21  (or comprised of individuals who are engaged) in the provision of
   5-22  health care or in the provision of health care and entities (or
   5-23  associations or organizations composed of such entities engaged in
   5-24  producing drugs or other such articles);
   5-25              (3)  one who is a member of the immediate family of an
   5-26  individual described in this subsection; for purposes of this
   5-27  subsection "immediate family" as applied to any individual includes
    6-1  only his parents, spouse, children, brothers, and sisters who
    6-2  reside in the same household;
    6-3              (4)  one who is engaged in or employed by an entity
    6-4  issuing any policy or contract of individual or group health
    6-5  insurance or hospital or medical service benefits; or
    6-6              (5)  one who is employed by, on the board of directors
    6-7  of, or holds elective office by or under the authority of any unit
    6-8  of federal, state, or local government or any organization that
    6-9  receives a significant part of its funding from any such unit of
   6-10  federal, state, or local government.
   6-11        (g)  An officer, employee, or paid consultant of a Texas
   6-12  trade or professional association in the field of health care may
   6-13  not be a member or employee of the board who is exempt from the
   6-14  state's position classification plan or is compensated at or above
   6-15  the amount prescribed by the General Appropriations Act for step 1,
   6-16  salary group 17, of the position classification salary schedule.
   6-17        (h)  A person who is the spouse of an officer, manager, or
   6-18  paid consultant of a Texas trade or professional association in the
   6-19  field of health care may not be a board member and may not be a
   6-20  board employee who is exempt from the state's position
   6-21  classification plan or is compensated at or above the amount
   6-22  prescribed by the General Appropriations Act for step 1, salary
   6-23  group 17, of the position classification salary schedule.
   6-24        (i)  For the purposes of this section, a "Texas trade or
   6-25  professional association" is a nonprofit, cooperative, and
   6-26  voluntarily joined association of business or professional
   6-27  competitors in this state designed to assist its members and its
    7-1  industry or profession in dealing with mutual business or
    7-2  professional problems and in promoting their common interest.
    7-3        (j)  A person may not serve as a member of the board if the
    7-4  person is required to register as a lobbyist under Chapter 305,
    7-5  Government Code, and its subsequent amendments, because of the
    7-6  person's activities for compensation on behalf of a profession
    7-7  related to the operation of the board  <A person required to
    7-8  register as a lobbyist under Chapter 305, Government Code, by
    7-9  virtue of his activities on behalf of a trade or professional
   7-10  association in the regulated profession may not act as a member of
   7-11  the board>.
   7-12        (k) <(h)>  A person is ineligible for appointment to the
   7-13  board if, at the time of appointment, the person is a stockholder,
   7-14  paid full-time faculty member, or a member of the board of trustees
   7-15  of a medical school.
   7-16        (l) <(i)>  All board members must take the official oath.
   7-17        SECTION 5.  Section 2.07(a), Medical Practice Act (Article
   7-18  4495b, Vernon's Texas Civil Statutes), is amended to read as
   7-19  follows:
   7-20        (a)  Not later than December after each regular session of
   7-21  the legislature <At the first meeting of the board after each
   7-22  biennial appointment>, the governor shall appoint from the members
   7-23  of the board a president and the board shall elect from its members
   7-24  a <president,> vice-president, secretary-treasurer, and other
   7-25  officers as are required, in the opinion of the board, to carry out
   7-26  its duties.
   7-27        SECTION 6.  Section 2.09, Medical Practice Act (Article
    8-1  4495b, Vernon's Texas Civil Statutes), is amended by amending
    8-2  Subsections (b), (c), (g), (k), (s), and (u) and adding Subsections
    8-3  (b-1), (x), (y), (z), and (aa) to read as follows:
    8-4        (b)  The board shall develop and implement policies that
    8-5  clearly define the respective responsibilities of the board and the
    8-6  staff of the board.  The board shall appoint an executive director
    8-7  who shall be its chief executive and administrative officer, who
    8-8  shall be charged with the primary responsibility of administering,
    8-9  enforcing, and carrying out the provisions of the Medical Practice
   8-10  Act under the control and supervision and at the direction of the
   8-11  board.  The executive director shall hold such position at the
   8-12  pleasure of board and may be discharged at any time.  The board may
   8-13  act under its rules through the executive director, an executive
   8-14  committee, or other committee, unless otherwise specified in this
   8-15  Act.  The executive committee shall be the president,
   8-16  vice-president, and secretary-treasurer except where otherwise
   8-17  provided in this Act<.  Any duty of the secretary-treasurer in this
   8-18  Act may be performed by the executive director within the
   8-19  discretion of the board.  Any reference to secretary-treasurer
   8-20  shall have the same meaning as executive director when so
   8-21  designated by the board>.
   8-22        (b-1)  The executive director may employ a chief operating
   8-23  officer who shall be primarily responsible for administering,
   8-24  implementing, and monitoring systems and necessary measures to
   8-25  promote quality and efficiency of ongoing board operations and
   8-26  other duties as may be assigned by the executive director.  If the
   8-27  board appoints an executive director who is not a physician
    9-1  licensed to practice in this state, the executive director shall
    9-2  appoint a medical director who is a physician licensed to practice
    9-3  in this state and who shall be primarily responsible for
    9-4  implementing and maintaining policies, systems, and measures
    9-5  regarding clinical and professional issues and determinations.  The
    9-6  chief operating officer or medical director shall act under the
    9-7  control and supervision and at the direction of the executive
    9-8  director.
    9-9        (c)  The board may make rules and establish fees as are
   9-10  reasonable relating to the granting and extension of expiration
   9-11  dates of temporary licenses and the placing of licensees on
   9-12  inactive status.  The board shall by rule set time limits on the
   9-13  periods for which licensees may hold temporary licenses or maintain
   9-14  inactive status.
   9-15        (g)  A person may not serve as a member of the board or act
   9-16  as the general counsel to the board if the person is required to
   9-17  register as a lobbyist under Chapter 305, Government Code, and its
   9-18  subsequent amendments, because of the person's activities for
   9-19  compensation on behalf of a profession related to the operation of
   9-20  the board <A person who is required personally to register as a
   9-21  lobbyist under Chapter 305, Government Code, representing
   9-22  physicians, health-care entities, or health-care related
   9-23  professions, may not be employed by the board in any capacity>.
   9-24        (k)  The board <shall establish> by rule shall establish
   9-25  reasonable and necessary fees so that the fees, in the aggregate,
   9-26  produce sufficient revenue to cover the cost of administering this
   9-27  Act.  The fees set by the board may be adjusted so that the total
   10-1  fees collected shall be sufficient to meet the expenses of
   10-2  administering this Act.  The board may not set a fee for an amount
   10-3  less than the amount of that fee on September 1, 1993 <a reasonable
   10-4  charge for those fees not specifically determined but authorized by
   10-5  this Act>.  The board may not waive collection of any fee or
   10-6  penalty.  The board shall place all fees received under authority
   10-7  of this Act, not otherwise specified, into the medical licensing
   10-8  fund.  The board is authorized and shall by annual budget determine
   10-9  the manner of handling the funds and the purpose, consistent with
  10-10  this Act, for which the same may be used.  The budgeted expenses
  10-11  authorized by the board shall not be a charge upon the general
  10-12  revenue of the state nor paid from the general revenue.
  10-13        (s)(1)  The board shall prepare information of public
  10-14  <consumer> interest describing the functions of the board and the
  10-15  board's procedures by which complaints are filed with and resolved
  10-16  by the board.  The board shall make the information available to
  10-17  the public and appropriate state agencies.
  10-18              (2)  The board by rule shall establish methods by which
  10-19  the public and licensees of the board are notified of the name,
  10-20  mailing address, and telephone number of the board for the purpose
  10-21  of directing complaints to the board.  The board may provide for
  10-22  that notification:
  10-23                    (A)  on each registration form, application, or
  10-24  written contract for services of an individual or entity regulated
  10-25  under this Act;
  10-26                    (B)  on a sign prominently displayed in the place
  10-27  of business of each individual or entity regulated under this Act;
   11-1  or
   11-2                    (C)  in a bill for services provided by an
   11-3  individual or entity regulated under this Act.
   11-4              (3)  The board shall list along with its regular
   11-5  telephone number the toll-free telephone number that may be called
   11-6  to present a complaint about a health professional if the toll-free
   11-7  number is established under other state law <regulatory functions
   11-8  of the board and describing the board's procedures by which
   11-9  consumer complaints are filed with and resolved by the board>.  On
  11-10  written request the board shall make information available to the
  11-11  general public for a reasonable fee to cover expenses and
  11-12  appropriate state agencies including a summary of any previous
  11-13  disciplinary orders by the board against a specific physician
  11-14  licensed in this state, the date of the order, and the current
  11-15  status of the order.  The board shall establish an eight-hour
  11-16  toll-free telephone number to make the information immediately
  11-17  available to any caller if the board is not required to establish a
  11-18  toll-free telephone number under other state law.
  11-19        (u)  The executive director or the executive director's
  11-20  designee shall develop an intra-agency career ladder program.  The
  11-21  program shall require intra-agency posting of all nonentry level
  11-22  positions concurrently with any public posting <board shall cause
  11-23  to be developed an intraagency career ladder program, one part of
  11-24  which shall be the intraagency posting of each job opening with the
  11-25  board in a nonentry-level position.  The intraagency posting shall
  11-26  be made at least 10 days before any public posting>.
  11-27        (x)  Each board member shall comply with the board member
   12-1  training requirements established by any other state agency that is
   12-2  given authority to establish the requirements for the board.
   12-3        (y)  The board shall provide to its members and employees, as
   12-4  often as necessary, information regarding their qualifications for
   12-5  office or employment under this Act and their responsibilities
   12-6  under applicable laws relating to standards of conduct for state
   12-7  officers or employees.
   12-8        (z)  The board shall develop and implement policies that
   12-9  provide the public with a reasonable opportunity to appear before
  12-10  the board and to speak on any issue under the jurisdiction of the
  12-11  board.
  12-12        (aa)  The board shall prepare and maintain a written plan
  12-13  that describes how a person who does not speak English can be
  12-14  provided reasonable access to the board's programs.  The board
  12-15  shall also comply with federal and state laws for program and
  12-16  facility accessibility.
  12-17        SECTION 7.  The Medical Practice Act (Article 4495b, Vernon's
  12-18  Texas Civil Statutes) is amended by adding Section 2.10 to read as
  12-19  follows:
  12-20        Sec. 2.10.  EQUAL EMPLOYMENT OPPORTUNITY.  (a)  The executive
  12-21  director or the executive director's designee shall prepare and
  12-22  maintain a written policy statement to assure implementation of a
  12-23  program of equal employment opportunity under which all personnel
  12-24  decisions are made without regard to race, color, disability, sex,
  12-25  religion, age, or national origin.  The policy statement must
  12-26  include:
  12-27              (1)  personnel policies, including policies relating to
   13-1  recruitment, evaluation, selection, appointment, training, and
   13-2  promotion of personnel, that are in compliance with requirements of
   13-3  the Commission on Human Rights Act (Article 5221k, Vernon's Texas
   13-4  Civil Statutes) and its subsequent amendments;
   13-5              (2)  a comprehensive analysis of the board's work force
   13-6  that meets federal and state guidelines;
   13-7              (3)  procedures by which a determination can be made of
   13-8  significant underuse in the board's work force of all persons for
   13-9  whom federal or state guidelines encourage a more equitable
  13-10  balance; and
  13-11              (4)  reasonable methods to appropriately address those
  13-12  areas of significant underuse.
  13-13        (b)  A policy statement prepared under Subsection (a) of this
  13-14  section must cover an annual period, be updated annually and
  13-15  reviewed by the Commission on Human Rights for compliance with
  13-16  requirements of the Commission on Human Rights Act (Article 5221k,
  13-17  Vernon's Texas Civil Statutes) and its subsequent amendments, and
  13-18  be filed with the governor's office.
  13-19        (c)  The governor's office shall deliver a biennial report to
  13-20  the legislature based on the information received under Subsection
  13-21  (b) of this section.  The report may be made separately or as a
  13-22  part of other biennial reports made to the legislature.
  13-23        SECTION 8.  Sections 3.01(a), (c), (f), (h), and (i), Medical
  13-24  Practice Act (Article 4495b, Vernon's Texas Civil Statutes), are
  13-25  amended to read as follows:
  13-26        (a)  All persons now lawfully qualified to practice medicine
  13-27  in this state, or who are hereafter licensed for the practice of
   14-1  medicine by the board, shall be registered as practitioners with
   14-2  the board on or before the first day of January and thereafter
   14-3  shall register in like manner annually, on or before the first day
   14-4  of January of each succeeding year.  Each person so registered with
   14-5  the board shall pay, in connection with each annual registration
   14-6  and for the receipt hereinafter provided for, a fee established by
   14-7  the board which fee shall accompany the application of each person
   14-8  for registration.  The payment shall be made to the board.  Every
   14-9  person so registered shall file with the board a written
  14-10  application for annual registration, setting forth his name and
  14-11  mailing address, the place or places where the applicant is engaged
  14-12  in the practice of medicine, and other necessary information
  14-13  prescribed by the board.  If the person is licensed for the
  14-14  practice of medicine by another state, the District of Columbia, a
  14-15  territory of the United States, Canada, any other country, or the
  14-16  uniformed services of the United States, the application must
  14-17  include a description of any investigations the person knows are in
  14-18  progress and of any sanctions imposed by or disciplinary matters
  14-19  pending in the state, district, territory, country, or service.
  14-20        (c)(1)  A person may renew an unexpired license by paying to
  14-21  the board on or before the expiration date of the license the
  14-22  required renewal fee.
  14-23              (2)  If a person's license has been expired for 90 days
  14-24  or less, the person may renew the license by paying to the board
  14-25  the required renewal fee and a fee that is one-half of the
  14-26  examination fee for the license.
  14-27              (3)  If a person's license has been expired for longer
   15-1  than 90 days but less than one year, the person may renew the
   15-2  license by paying to the board all unpaid renewal fees and a fee
   15-3  that is equal to the examination fee for the license.
   15-4              (4)  If a person's license has been expired for one
   15-5  year, it is considered to have been canceled, and the person may
   15-6  not renew the license.  The person may obtain a new license by
   15-7  submitting to reexamination and complying with the requirements and
   15-8  procedures for obtaining an original license.
   15-9              (5)  The board may renew without examination an expired
  15-10  license of a person who was licensed in this state, moved to
  15-11  another state, and is currently licensed and has been in practice
  15-12  in the other state for not more than two years preceding
  15-13  application.  The person must pay to the board a fee that is equal
  15-14  to the examination fee for the license.  <Failure of any licensee
  15-15  to pay the annual license renewal fee on or before the 90th day
  15-16  after the date it is due automatically cancels his licensure.  Any
  15-17  licensee whose license has been canceled because of failure to pay
  15-18  the annual license renewal fee may secure reinstatement of his
  15-19  license at any time within that license year upon payment of the
  15-20  delinquent fee together with a penalty in an amount as the board
  15-21  may determine to be reasonable.  After expiration of the license
  15-22  year for which the license fee was not paid, no license shall be
  15-23  reinstated except upon application and satisfaction of other
  15-24  conditions as the board may establish and payment of delinquent
  15-25  fees and a penalty to be assessed by the board.>
  15-26        (f)  <In performing its duties as provided in this Act, the
  15-27  board may act through the secretary-treasurer of the board.  The
   16-1  secretary-treasurer is entitled to a salary to be fixed by the
   16-2  legislature in its General Appropriations Act for the performance
   16-3  of duties under this Act.>  The executive director
   16-4  <secretary-treasurer> of the board shall file a surety bond with
   16-5  the board.  The bond shall be in an amount not less than $10,000,
   16-6  be in compliance with the insurance laws of the state, and be
   16-7  payable to the state for the use of the state if the executive
   16-8  director <secretary-treasurer> does not faithfully discharge the
   16-9  duties of the office.  The board shall pay the premium on the bond.
  16-10  <The salary shall be paid out of said medical registration fund and
  16-11  shall not be in any way a charge upon the general revenue of the
  16-12  state.>
  16-13        (h)  The <secretary-treasurer or the> executive director
  16-14  shall review each application for licensure by examination or
  16-15  reciprocity and shall recommend to the board all applicants
  16-16  eligible for licensure.  The <secretary-treasurer or the> executive
  16-17  director also shall report to the board the names of all applicants
  16-18  determined to be ineligible for licensure, together with the
  16-19  reasons for each recommendation.  An applicant deemed ineligible
  16-20  for licensure by the <secretary-treasurer or the> executive
  16-21  director may request review of such recommendation by a committee
  16-22  of the board within 20 days of receipt of such notice, and the
  16-23  <secretary-treasurer or the> executive director may refer any
  16-24  application to said committee for a recommendation concerning
  16-25  eligibility.  If the committee finds the applicant ineligible for
  16-26  licensure, such recommendation, together with the reasons therefor,
  16-27  shall be submitted to the board unless the applicant requests a <an
   17-1  appellate> hearing <before a hearing examiner appointed by the
   17-2  board> within 20 days of receipt of notice of the committee's
   17-3  determination.  The hearing shall be before an administrative law
   17-4  judge of the State Office of Administrative Hearings and shall
   17-5  comply with the Administrative Procedure Act and its subsequent
   17-6  amendments and the rules of the State Office of Administrative
   17-7  Hearings and the board.  The committee may refer any application
   17-8  for determination of eligibility to the full board.  The board
   17-9  shall, after receiving the administrative law judge's proposed
  17-10  findings of fact and conclusions of law, determine the eligibility
  17-11  of the applicant for licensure <an appellate hearing on its own
  17-12  motion.  The board may elect to hear any appeal in lieu of
  17-13  proceedings before a hearing examiner, and it shall adopt, modify,
  17-14  or reject each decision made by a hearing examiner.  The board also
  17-15  shall adopt, modify, or reject each recommendation of ineligibility
  17-16  made by the secretary-treasurer or the executive director or by the
  17-17  committee, unless the applicant has requested a timely review of
  17-18  the recommendation.  Such action by the board shall constitute a
  17-19  final administrative decision concerning licensure.  Any hearing
  17-20  before the board or before a hearing examiner under this subsection
  17-21  becomes a contested case under the Administrative Procedure Act>.
  17-22  A physician whose application for licensure is denied by the board
  17-23  shall receive a written statement<, upon request,> containing the
  17-24  reasons for the board's action.  All reports received or gathered
  17-25  by the board on each applicant are confidential and are not subject
  17-26  to disclosure under the Open Records Law.  The board may disclose
  17-27  such reports to appropriate licensing authorities in other states
   18-1  <upon request>.
   18-2        (i)  At least 30 days before the expiration of a person's
   18-3  license, the board shall send written notice of the impending
   18-4  license expiration to the person at the licensee's last known
   18-5  address according to the records of the board  <The board must
   18-6  notify each delinquent licensee of his impending license
   18-7  cancellation by registered or certified mail sent to the licensee's
   18-8  address listed with the board not less than 30 days prior to the
   18-9  cancellation.  This requirement shall be waived when the licensee
  18-10  has requested in writing that his or her license be canceled>.
  18-11        SECTION 9.  The Medical Practice Act (Article 4495b, Vernon's
  18-12  Texas Civil Statutes) is amended by adding Section 3.025 to read as
  18-13  follows:
  18-14        Sec. 3.025.  CONTINUING MEDICAL EDUCATION.  (a)  The board by
  18-15  rule shall adopt, monitor, and enforce a reporting program for
  18-16  continuing medical education of licensees.  The board shall adopt
  18-17  and administer rules:
  18-18              (1)  requiring the number of hours of continuing
  18-19  medical education the board determines appropriate as a
  18-20  prerequisite to the annual registration of a licensee under this
  18-21  Act;
  18-22              (2)  requiring at least one-half of the hours of
  18-23  continuing medical education required under Subdivision (1) of this
  18-24  subsection to be approved by the board after taking into account
  18-25  the standards of the American Medical Association for its
  18-26  Physician's Recognition Award, the Council on Medical Specialty
  18-27  Societies, or the American Osteopathic Association and permitting
   19-1  the remaining hours to be composed of self-study or equivalent
   19-2  self-directed continuing medical education according to guidelines
   19-3  determined by the board; and
   19-4              (3)  adopting a process to assess a licensee's
   19-5  participation in continuing medical education courses.
   19-6        (b)  A licensee shall be presumed to have complied with this
   19-7  section if in the preceding 36 months the licensee becomes board
   19-8  certified or recertified in a medical specialty and the medical
   19-9  specialty program takes into consideration the standards of the
  19-10  American Board of Medical Specialties, the American Medical
  19-11  Association, the Advisory Board for Osteopathic Specialists and
  19-12  Boards of Certification, or the American Osteopathic Association.
  19-13        (c)  The board may temporarily exempt a licensee from the
  19-14  requirement for continuing medical education for:
  19-15              (1)  catastrophic illness;
  19-16              (2)  military service of longer than one year's
  19-17  duration outside the state;
  19-18              (3)  medical practice and residence of longer than one
  19-19  year's duration outside the United States; or
  19-20              (4)  good cause shown on written application of the
  19-21  licensee that gives satisfactory evidence to the board that the
  19-22  licensee is unable to comply with the requirement for continuing
  19-23  medical education.
  19-24        (d)  A temporary exemption under Subsection (c) of this
  19-25  section may not exceed one year but may be renewed annually.
  19-26        (e)  Subsection (a) of this section does not apply to a
  19-27  licensee who is retired and has been exempted by rule from paying
   20-1  the annual registration fee.
   20-2        (f)  This section does not prevent the board from taking
   20-3  disciplinary action with respect to a licensee or an applicant for
   20-4  a license by requiring additional hours of continuing medical
   20-5  education or of specific course subjects.
   20-6        SECTION 10.  Section 3.03, Medical Practice Act (Article
   20-7  4495b, Vernon's Texas Civil Statutes), is amended by amending
   20-8  Subsections (a)-(f) to read as follows:
   20-9        (a)  The board, at its sole discretion and upon payment by an
  20-10  applicant of a fee prescribed by the board under this Act, may
  20-11  grant a license to practice medicine to any <reputable> physician
  20-12  who is a graduate of an acceptable <a reputable> medical college as
  20-13  determined by the board and who<:>
  20-14              <(1)>  is a licensee of another state or Canadian
  20-15  province having requirements for physician registration and
  20-16  practice substantially equivalent to those established by the laws
  20-17  of this state<; or>
  20-18              <(2)  is qualified by an examination for a certificate
  20-19  to practice medicine under a commission in the uniformed services
  20-20  of the United States>.
  20-21        (b)  An application for a license under this section must be
  20-22  in writing and upon a form prescribed by the board.  The
  20-23  application must be accompanied by:
  20-24              (1)  a diploma or photograph of a diploma awarded to
  20-25  the applicant by an acceptable <a reputable> medical college and a
  20-26  certified transcript showing courses and grades <or a certificate,
  20-27  license, or commission issued to the applicant by the Medical Corps
   21-1  of the uniformed services of the United States>;
   21-2              (2)  a license or a certified copy of a license to
   21-3  practice medicine lawfully issued to the applicant<, on
   21-4  examination,> by some other state or a Canadian province that
   21-5  requires in its examination the same general degree of fitness
   21-6  required by this state and that grants the same reciprocal
   21-7  privileges to persons licensed by the board; <or>
   21-8              (3)  a certification made by <an executive officer of
   21-9  the uniformed services of the United States,> the president or
  21-10  secretary of the board that issued the license<,> or a duly
  21-11  constituted registration office of the state or Canadian province
  21-12  that issued the certificate or license, reciting that the
  21-13  accompanying certificate or license has not been canceled,
  21-14  suspended, or revoked <except by honorable discharge from the
  21-15  Medical Corps of the uniformed services of the United States> and
  21-16  reciting that the statement of the qualifications made in the
  21-17  application for medical license in Texas is true and correct; and
  21-18              (4)  evidence of a passing grade on an examination
  21-19  required by the board.
  21-20        (c)  Applicants for a license under this section must
  21-21  subscribe to an oath in writing before an officer authorized by law
  21-22  to administer oaths.  The written oath must be a part of the
  21-23  application.  The application must:
  21-24              (1)  state that:
  21-25                    (A) <(1)>  the license, certificate, or authority
  21-26  under which the applicant has most recently practiced medicine in
  21-27  the state or Canadian province from which the applicant is
   22-1  transferring to this state <removed> or in the uniformed service in
   22-2  which the applicant served is <was at the time of the removal or
   22-3  completion of service> in full force and not restricted, canceled,
   22-4  suspended, or revoked;
   22-5                    (B) <(2)>  the applicant is the identical person
   22-6  to whom the certificate or<,> license<, or commission> and the
   22-7  diploma were issued;
   22-8                    (C) <(3)>  no proceeding has been instituted
   22-9  against the applicant for the restriction, cancellation,
  22-10  suspension, or revocation of the certificate, license, or authority
  22-11  to practice medicine in the state, Canadian province, or uniformed
  22-12  service of the United States in which it was issued; and
  22-13                    (D) <(4)>  no prosecution is pending against the
  22-14  applicant in any state, federal, or Canadian court for any offense
  22-15  that under the laws of this state is a felony;
  22-16              (2)  include a description of any sanctions imposed by
  22-17  or disciplinary matters pending in the state or Canadian province
  22-18  in which the applicant was or is licensed or certified to practice
  22-19  medicine; and
  22-20              (3)  include evidence of postgraduate training required
  22-21  by the board.
  22-22        (d)  An applicant for a license under this section must <A
  22-23  "reputable physician" means one who would> be eligible for
  22-24  examination by the board.  <A "reputable medical school or college"
  22-25  means a medical school or college that was approved by the board at
  22-26  the time the applicant's degree was conferred.>
  22-27        (e)  In addition to other licensure requirements, the board
   23-1  may require by rule and regulation that an applicant who is a
   23-2  licensee of another state or Canadian province and who is a
   23-3  graduate <graduates> of a medical school <schools> located outside
   23-4  of the United States and Canada, or the school itself <schools
   23-5  themselves>, provide additional information to the board concerning
   23-6  the medical school attended prior to approval of the applicant.
   23-7        (f)  The board may refuse to issue a license to an applicant
   23-8  who is a licensee of another state or Canadian province and who
   23-9  graduated from a medical school outside of the United States and
  23-10  Canada if it finds that the applicant does not possess the
  23-11  requisite qualifications to provide the same standard of medical
  23-12  care as provided by a licensed physician in this state.
  23-13        SECTION 11.  The Medical Practice Act (Article 4495b,
  23-14  Vernon's Texas Civil Statutes) is amended by adding Section 3.0305
  23-15  to read as follows:
  23-16        Sec. 3.0305.  TEMPORARY LICENSE FOR OUT-OF-STATE
  23-17  PRACTITIONERS.  (a)  On application, the board shall grant a
  23-18  temporary license to practice medicine.  An applicant for a
  23-19  temporary license under this section must:
  23-20              (1)  have a current, active, and unrestricted license,
  23-21  without any pending disciplinary matters, as a physician in another
  23-22  state, the District of Columbia, or a territory of the United
  23-23  States that has licensing requirements that are substantially
  23-24  equivalent to the requirements of this Act;
  23-25              (2)  have passed a national or other examination
  23-26  recognized by the board relating to the practice of medicine; and
  23-27              (3)  be sponsored by a person licensed by the board
   24-1  under this Act with whom the temporary license holder may practice
   24-2  under this section.
   24-3        (b)  An applicant for a temporary license may be excused from
   24-4  the requirement of Subsection (a)(3) of this section if the board
   24-5  determines that compliance with that subsection constitutes a
   24-6  hardship to the applicant.
   24-7        (c)  A temporary license is valid until the date the board
   24-8  approves or denies the temporary license holder's application for a
   24-9  license.  The board shall issue a license under this Act to the
  24-10  holder of a temporary license under this section if:
  24-11              (1)  the temporary license holder passes the
  24-12  examination required by Section 3.05 of this Act;
  24-13              (2)  the board verifies that the temporary license
  24-14  holder has satisfied the academic and experience requirements for a
  24-15  license under this Act; and
  24-16              (3)  the temporary license holder has satisfied any
  24-17  other license requirements under this Act.
  24-18        (d)  The board must assemble the documents and information
  24-19  necessary to process a temporary license holder's application for a
  24-20  license not later than the 90th day after the date the temporary
  24-21  license is issued and complete the processing of the application
  24-22  not later than the 90th day after the date the documents and
  24-23  information are assembled.  If by the 180th day after the date the
  24-24  temporary license is issued the board has not completed the
  24-25  processing of the application, the board shall review the
  24-26  application to determine the cause of the delay.
  24-27        SECTION 12.  Section 3.04, Medical Practice Act (Article
   25-1  4495b, Vernon's Texas Civil Statutes), is amended to read as
   25-2  follows:
   25-3        Sec. 3.04.  Qualification of Licensee.  (a)  An applicant, to
   25-4  be eligible for the examination and issuance of a license, must
   25-5  present satisfactory proof to the board that the applicant:
   25-6              (1)  is at least 21 years of age;
   25-7              (2)  is of good professional character;
   25-8              (3)  has completed 60 semester hours of college courses
   25-9  other than in medical school, which courses would be acceptable, at
  25-10  the time of completion, to The University of Texas for credit on a
  25-11  bachelor of arts degree or a bachelor of science degree; and
  25-12              (4)  is a graduate of an acceptable <a> medical school
  25-13  or college that was approved by the board at the time the degree
  25-14  was conferred<;> and has completed a one-year program of graduate
  25-15  medical training approved by the board.
  25-16        (b)  The <(5)  has successfully completed a one year program
  25-17  of graduate medical training approved by the board.  In addition to
  25-18  other licensure requirements, the board may require by rule and
  25-19  regulation that graduates of medical schools located outside the
  25-20  United States and Canada comply with other requirements that the
  25-21  board considers appropriate, including but not limited to
  25-22  additional graduate medical training in the United States, except
  25-23  those who qualify for licensure in Section 5.04 of this Act.
  25-24  However, the> applicant shall be eligible for examination prior to
  25-25  complying with the graduate training requirement of Subsection
  25-26  (a)(4) <Subdivision (5) of Subsection (a)> of this section but
  25-27  shall not be eligible for the issuance of an unrestricted license
   26-1  until the requirements of Subsection (a) of this section <this
   26-2  subsection> have been satisfied.
   26-3        (c) <(b)>  Applications for examination must be made in
   26-4  writing, verified by affidavit, filed with the board on forms
   26-5  prescribed by the board, and accompanied by documents and a fee as
   26-6  the board determines to be reasonable.
   26-7        (d)  To be recognized by the board for the purposes of this
   26-8  subchapter, all allopathic or osteopathic medical education
   26-9  instruction taught in the United States must be accredited by an
  26-10  accrediting body officially recognized by the United States
  26-11  Department of Education and the Council on Postsecondary
  26-12  Accreditation as the accrediting body for medical education leading
  26-13  to the doctor of medicine degree or the doctor of osteopathy degree
  26-14  in the United States.
  26-15        (e)  The requirements for eligibility for licensure of a
  26-16  graduate of an unapproved foreign medical school are set out in
  26-17  Section 5.035 of this Act, and the requirements for eligibility for
  26-18  licensure of a person who has completed all of the didactic work of
  26-19  a foreign medical school but has not graduated from the school
  26-20  (Fifth Pathway Program) are set out in Section 5.04 of this Act.
  26-21        SECTION 13.  Sections 3.05(a), (c), and (e), Medical Practice
  26-22  Act (Article 4495b, Vernon's Texas Civil Statutes), are amended to
  26-23  read as follows:
  26-24        (a)  All examinations for license to practice medicine shall
  26-25  be conducted in writing in the English language and in a manner as
  26-26  to be entirely fair and impartial to all individuals and to every
  26-27  school or system of medicine.  <All applicants shall be known to
   27-1  the examiners only by numbers, without names or other method of
   27-2  identification on examination papers by which members of the board
   27-3  may be able to identify the applicants or examinees, until after
   27-4  the general averages of the examinees' numbers in the class have
   27-5  been determined and license granted or refused.>  Examinations
   27-6  shall be conducted on and cover those subjects generally taught by
   27-7  medical schools, a knowledge of which is commonly and generally
   27-8  required of candidates for the degree of doctor of medicine or
   27-9  doctor of osteopathy conferred by schools or colleges of medicine
  27-10  approved by the board, and the examinations shall also be conducted
  27-11  on and cover the subject of medical jurisprudence.  Examinations
  27-12  shall be prepared by a national testing service or prepared by the
  27-13  board and validated by qualified independent testing professionals.
  27-14  On satisfactory examination conducted as required by this Act under
  27-15  rules of the board, applicants may <shall> be granted licenses to
  27-16  practice medicine.  All questions and answers, with the grades
  27-17  attached, shall be preserved for one year in the executive office
  27-18  of the board or such other repository as the board by rule may
  27-19  direct.  All applicants examined at the same time shall be given
  27-20  identical questions.  All certificates shall be attested by the
  27-21  seal of the board.  The board in its discretion may give the
  27-22  examination for license in two or more parts.
  27-23        (c)  All applicants for license to practice medicine in this
  27-24  state not otherwise licensed under the provisions of law must
  27-25  successfully pass a uniform <an> examination approved by the board
  27-26  as determined by rule.  The board is authorized to adopt and
  27-27  enforce all rules of procedure not inconsistent with statutory
   28-1  requirements.  All applicants shall be given due notice of the date
   28-2  and place of the examination<; provided that the partial
   28-3  examinations provided for in this Act shall not be disturbed by
   28-4  this section>.  If any applicant, because of failure to pass the
   28-5  required examination, is refused a license, the applicant, at a
   28-6  time as the board may fix, shall be permitted to take a subsequent
   28-7  examination not more than two additional times <upon any subjects
   28-8  required in the original examination> as the board may prescribe on
   28-9  the payment of a fee as the board may determine to be reasonable.
  28-10  In the event satisfactory grades shall be made on the subjects
  28-11  prescribed and taken on the reexamination, the board may grant the
  28-12  applicant a license to practice medicine.  The board shall
  28-13  determine the credit to be given examinees on answers turned in on
  28-14  the subjects of complete and partial examination, and its decision
  28-15  is final.
  28-16        (e)  Within 90 <30> days after the day on which an
  28-17  examination is administered under this Act, the board shall notify
  28-18  each examinee of the results of the examination.  However, if an
  28-19  examination is graded or reviewed by a national testing service,
  28-20  the board shall notify each examinee of the results of the
  28-21  examination not later than the 30th day <within four weeks> after
  28-22  the date the board receives the results from the testing service.
  28-23  If the notice of the examination results will be delayed for longer
  28-24  than 90 days after the examination, the board shall notify the
  28-25  examinee of the reason for the delay before the 90th day.
  28-26        SECTION 14.  Section 3.06(d)(5), Medical Practice Act
  28-27  (Article 4495b, Vernon's Texas Civil Statutes), is amended by
   29-1  adding Paragraph (G) to read as follows:
   29-2                    (G)  An advertisement for a site serving a
   29-3  medically underserved population shall include the name and
   29-4  business address of the supervising physician for the site.
   29-5        SECTION 15.  Section 3.06, Medical Practice Act (Article
   29-6  4495b, Vernon's Texas Civil Statutes), is amended by adding
   29-7  Subsections (g) and (h) to read as follows:
   29-8        (g)  This Act does not prohibit a nonprofit clinic that is
   29-9  operated by a nonprofit hospital or organization and that primarily
  29-10  serves a financially indigent population from:
  29-11              (1)  contracting with a physician to provide services
  29-12  at the clinic;
  29-13              (2)  paying a physician a minimum guarantee to assure
  29-14  the physician's availability;
  29-15              (3)  billing to and collecting from patients as the
  29-16  physician's agent the physician's professional fees; or
  29-17              (4)  retaining any professional fees collected under
  29-18  Subdivision (3) of this subsection up to the amount of the minimum
  29-19  guarantee fee and a reasonable collection fee.
  29-20        (h)  In Subsection (g), "financially indigent population"
  29-21  means persons meeting Medicaid eligibility requirements or
  29-22  uninsured persons who are accepted for care with no obligation to
  29-23  pay or with a discounted obligation to pay for services rendered
  29-24  based on the clinic's eligibility system.
  29-25        SECTION 16.  Section 3.08, Medical Practice Act (Article
  29-26  4495b, Vernon's Texas Civil Statutes), is amended to read as
  29-27  follows:
   30-1        Sec. 3.08.  Grounds for Refusal to Admit Persons to
   30-2  Examination and to Issue License and Renewal License And For
   30-3  Disciplinary Action.  The board may refuse to admit persons to its
   30-4  examinations and to issue a license to practice medicine to any
   30-5  person and may take disciplinary action against any person for any
   30-6  of the following reasons:
   30-7              (1)  submission of a false or misleading statement,
   30-8  document, or certificate to the board in an application for
   30-9  examination or licensure; the presentation to the board of any
  30-10  license, certificate, or diploma that was illegally or fraudulently
  30-11  obtained; the practice of fraud or deception in taking or passing
  30-12  an examination;
  30-13              (2)  conviction of a crime of the grade of a felony or
  30-14  a crime of a lesser degree that involves moral turpitude;
  30-15              (3)  intemperate use of alcohol or drugs that, in the
  30-16  opinion of the board, could endanger the lives of patients;
  30-17              (4)  unprofessional or dishonorable conduct that is
  30-18  likely to deceive or defraud the public or injure the public.
  30-19  Unprofessional or dishonorable conduct likely to deceive or defraud
  30-20  the public includes but is not limited to the following acts:
  30-21                    (A)  committing any act that is in violation of
  30-22  the laws of the State of Texas if the act is connected with the
  30-23  physician's practice of medicine.  A complaint, indictment, or
  30-24  conviction of a law violation is not necessary for the enforcement
  30-25  of this provision.  Proof of the commission of the act while in the
  30-26  practice of medicine or under the guise of the practice of medicine
  30-27  is sufficient for action by the board under this section;
   31-1                    (B)  failing to keep complete and accurate
   31-2  records of purchases and disposals of drugs listed in Chapter 481,
   31-3  Health and Safety Code, or of controlled substances scheduled in
   31-4  the Federal Comprehensive Drug Abuse Prevention and Control Act of
   31-5  1970, 21 U.S.C.A.  Section 801 et seq. (Public Law 91-513).  A
   31-6  physician shall keep records of his purchases and disposals of
   31-7  these drugs to include without limitation the date of purchase, the
   31-8  sale or disposal of the drugs by the physician, the name and
   31-9  address of the person receiving the drugs, and the reason for the
  31-10  disposing or dispensing of the drugs to the person.  A failure to
  31-11  keep the records for a reasonable time is grounds for revoking,
  31-12  canceling, suspending, or probating the license of any practitioner
  31-13  of medicine.  The board or its representative may enter and inspect
  31-14  a physician's place(s) of practice during reasonable business hours
  31-15  for the purpose of verifying the correctness of these records and
  31-16  of taking inventory of the prescription drugs on hand;
  31-17                    (C)  writing prescriptions for or dispensing to a
  31-18  person known to be an abuser <a habitual user> of narcotic drugs,
  31-19  controlled substances, or dangerous drugs or to a person who the
  31-20  physician should have known was an abuser <a habitual user> of the
  31-21  narcotic drugs, controlled substances, or dangerous drugs.  This
  31-22  provision does not apply to those persons:
  31-23                          (i)  being treated by the physician for
  31-24  their narcotic use after the physician notifies the board in
  31-25  writing of the name and address of the person being so treated; or
  31-26                          (ii)  who the physician is treating for
  31-27  intractable pain under the Intractable Pain Treatment Act (Article
   32-1  4495c, Revised Statutes) and its subsequent amendments;
   32-2                    (D)  writing false or fictitious prescriptions
   32-3  for dangerous drugs as defined by Chapter 483, Health and Safety
   32-4  Code, of controlled substances scheduled in the Texas Controlled
   32-5  Substances Act (Chapter 481, Health and Safety Code) <(Article
   32-6  4476-15, Vernon's Texas Civil Statutes)>, or of controlled
   32-7  substances scheduled in the Federal Comprehensive Drug Abuse
   32-8  Prevention and Control Act of 1970, 21 U.S.C.A.  Section 801 et
   32-9  seq. (Public Law 91-513);
  32-10                    (E)  prescribing or administering a drug or
  32-11  treatment that is nontherapeutic in nature or nontherapeutic in the
  32-12  manner the drug or treatment is administered or prescribed;
  32-13                    (F)  prescribing, administering, or dispensing in
  32-14  a manner not consistent with public health and welfare dangerous
  32-15  drugs as defined by Chapter 483, Health and Safety Code, controlled
  32-16  substances scheduled in the Texas Controlled Substances Act
  32-17  (Chapter 481, Health and Safety Code) <(Article 4476-15, Vernon's
  32-18  Texas Civil Statutes)>, or controlled substances scheduled in the
  32-19  Federal Comprehensive Drug Abuse Prevention and Control Act of
  32-20  1970, 21 U.S.C.A. Section 801 et seq. (Public Law 91-513);
  32-21                    (G)  persistently or <and> flagrantly
  32-22  overcharging or overtreating patients;
  32-23                    (H)  failing to supervise adequately the
  32-24  activities of those acting under the supervision of the physician;
  32-25  or
  32-26                    (I)  delegating professional medical
  32-27  responsibility or acts to a person if the delegating physician
   33-1  knows or has reason to know that the person is not qualified by
   33-2  training, experience, or licensure to perform the responsibility or
   33-3  acts;
   33-4              (5)  violation or attempted violation, direct or
   33-5  indirect, of any valid rules issued under this Act, either as a
   33-6  principal, accessory, or accomplice;
   33-7              (6)  use of any advertising statement that is false,
   33-8  misleading, or deceptive;
   33-9              (7)  advertising professional superiority or the
  33-10  performance of professional service in a superior manner if the
  33-11  advertising is not readily subject to verification;
  33-12              (8)  purchase, sale, barter, or use or any offer to
  33-13  purchase, sell, barter, or use any medical degree, license,
  33-14  certificate, diploma, or transcript of license, certificate, or
  33-15  diploma in or incident to an application to the board for a license
  33-16  to practice medicine;
  33-17              (9)  altering, with fraudulent intent, any medical
  33-18  license, certificate, diploma, or transcript of a medical license,
  33-19  certificate, or diploma;
  33-20              (10)  using any medical license, certificate, diploma,
  33-21  or transcript of a medical license, certificate, or diploma that
  33-22  has been fraudulently purchased, issued, or counterfeited or that
  33-23  has been materially altered;
  33-24              (11)  impersonating or acting as proxy for another in
  33-25  any examination required by this Act for a medical license; or
  33-26  engaging in conduct which subverts or attempts to subvert any
  33-27  examination process required by this Act for a medical license.
   34-1  Conduct which subverts or attempts to subvert the medical licensing
   34-2  examination process includes, but is not limited to:
   34-3                    (A)  conduct which violates the security of the
   34-4  examination materials, as prescribed by board rules;
   34-5                    (B)  conduct which violates the standard of test
   34-6  administration, as prescribed by board rules; or
   34-7                    (C)  conduct which violates the accreditation
   34-8  process, as prescribed by board rules;
   34-9              (12)  impersonating a licensed practitioner or
  34-10  permitting or allowing another to use his license or certificate to
  34-11  practice medicine in this state for the purpose of diagnosing,
  34-12  treating, or offering to treat sick, injured, or afflicted human
  34-13  beings;
  34-14              (13)  employing, directly or indirectly, any person
  34-15  whose license to practice medicine has been suspended, canceled, or
  34-16  revoked or association in the practice of medicine with any person
  34-17  or persons whose license to practice medicine has been suspended,
  34-18  canceled, or revoked or any person who has been convicted of the
  34-19  unlawful practice of medicine in Texas or elsewhere;
  34-20              (14)  performing or procuring a criminal abortion or
  34-21  aiding or abetting in the procuring of a criminal abortion or
  34-22  attempting to perform or procure a criminal abortion or attempting
  34-23  to aid or abet the performance or procurement of a criminal
  34-24  abortion;
  34-25              (15)  aiding or abetting, directly or indirectly, the
  34-26  practice of medicine by any person, partnership, association, or
  34-27  corporation not duly licensed to practice medicine by the board;
   35-1              (16)  inability to practice medicine with reasonable
   35-2  skill and safety to patients by reason of illness, drunkenness,
   35-3  excessive use of drugs, narcotics, chemicals, or any other type of
   35-4  material or as a result of any mental or physical condition.  In
   35-5  enforcing this subdivision the board shall, upon probable cause,
   35-6  request a physician to submit to a mental or physical examination
   35-7  by physicians designated by the board.  If the physician refuses to
   35-8  submit to the examination, the board shall issue an order requiring
   35-9  the physician to show cause why he should not be required to submit
  35-10  to the examination and shall schedule a hearing on the order within
  35-11  30 days after notice is served on the physician.  The physician
  35-12  shall be notified by either personal service or certified mail with
  35-13  return receipt requested.  At the hearing, the physician and his
  35-14  attorney are entitled to present any testimony and other evidence
  35-15  to show why the physician should not be required to submit to the
  35-16  examination.  After a complete hearing, the board shall issue an
  35-17  order either requiring the physician to submit to the examination
  35-18  or withdrawing the request for examination.  An appeal from the
  35-19  decision of the board shall be taken under the Administrative
  35-20  Procedure Act;
  35-21              (17)  judgment by a court of competent jurisdiction
  35-22  that a person licensed to practice medicine is of unsound mind;
  35-23              (18)  professional failure to practice medicine in an
  35-24  acceptable manner consistent with public health and welfare;
  35-25              (19)  being removed, suspended, or having disciplinary
  35-26  action taken by his peers in any professional medical association
  35-27  or society, whether the association or society is local, regional,
   36-1  state, or national in scope, or being disciplined by a licensed
   36-2  hospital or medical staff of a hospital, including removal,
   36-3  suspension, limitation of hospital privileges, or other
   36-4  disciplinary action, if that action in the opinion of the board was
   36-5  based on unprofessional conduct or professional incompetence that
   36-6  was likely to harm the public, provided that the board finds that
   36-7  the actions were appropriate and reasonably supported by evidence
   36-8  submitted to it.  The action does not constitute state action on
   36-9  the part of the association, society, or hospital medical staff;
  36-10              (20)  repeated or recurring meritorious health-care
  36-11  liability claims that in the opinion of the board evidence
  36-12  professional incompetence likely to injure the public; or
  36-13              (21)  suspension, revocation, <or> restriction, or
  36-14  other disciplinary action by another state of a license to practice
  36-15  medicine, or disciplinary action by the uniformed services of the
  36-16  United States, based upon acts by the licensee similar to acts
  36-17  described in this section.  A certified copy of the record of the
  36-18  state taking the action is conclusive evidence of it.
  36-19        SECTION 17.  The Medical Practice Act (Article 4495b,
  36-20  Vernon's Texas Civil Statutes) is amended by adding Section 3.085
  36-21  to read as follows:
  36-22        Sec. 3.085.  RESTRICTIONS ON BIDDING AND ADVERTISING.  (a)
  36-23  The board may not adopt rules restricting competitive bidding or
  36-24  advertising by a person regulated by the board except to prohibit
  36-25  false, misleading, or deceptive practices by the person.
  36-26        (b)  The board may not include in its rules to prohibit
  36-27  false, misleading, or deceptive practices by a person regulated by
   37-1  the board a rule that:
   37-2              (1)  restricts the use of any medium for advertising;
   37-3              (2)  restricts the person's personal appearance or use
   37-4  of the person's voice in an advertisement;
   37-5              (3)  relates to the size or duration of an
   37-6  advertisement by the person; or
   37-7              (4)  restricts the person's advertisement under a trade
   37-8  name.
   37-9        SECTION 18.  Sections 3.10(b), (c), (d), and (e), Medical
  37-10  Practice Act (Article 4495b, Vernon's Texas Civil Statutes), are
  37-11  amended to read as follows:
  37-12        (b)  <The board may not set, charge, collect, receive, or
  37-13  deposit any of the following fees in excess of:>
  37-14              <(1)  for processing and granting a license  by
  37-15  reciprocity to a licensee of another state.....................$700>
  37-16              <(2)  for   processing   an   application   and
  37-17  administration   of   a   partial   examination  for
  37-18  licensure......................................................$700>
  37-19              <(3)  for   processing  an    application   and
  37-20  administration   of  a   complete   examination  for
  37-21  licensure......................................................$700>
  37-22              <(4)  for   processing  an    application   and
  37-23  issuance of a temporary license................................$200>
  37-24              <(5)  for   processing   an   application   and
  37-25  issuance of a duplicate license................................$200>
  37-26              <(6)  for   processing   an   application   and
  37-27  issuance of a license of reinstatement after a lapse
   38-1  or cancellation of a license...................................$700>
   38-2              <(7)  for   processing   an   application   and
   38-3  issuance of an annual registration of a licensee...............$200>
   38-4              <(8)  for  processing   and  issuance   of   an
   38-5  institutional  permit  for  interns,  residents, and
   38-6  others in approved medical training programs...................$200>
   38-7              <(9)  for   processing   an   application   and
   38-8  issuance  of  an endorsement to  other state medical
   38-9  boards.........................................................$200>
  38-10              <(10)  for  processing and issuance of a permit
  38-11  to a physician who supervises a physician assistant............$200>
  38-12              <(11)  for  processing and issuance of a permit
  38-13  to a physician who supervises an acupuncturist...............$200.>
  38-14        <(c)>  The board may set and collect a sales charge for
  38-15  making copies of any paper of record in the office of the board and
  38-16  for any printed material published by the board.  The charges shall
  38-17  be in amounts considered sufficient to reimburse the board for the
  38-18  actual expense.
  38-19        (c) <(d)>  The financial transactions of the board are
  38-20  subject to audit by the state auditor in accordance with Chapter
  38-21  321, Government Code.
  38-22        (d)  The board shall file annually with the governor and the
  38-23  presiding officer of each house of the legislature a complete and
  38-24  detailed written report accounting for all funds received and
  38-25  disbursed by the board during the preceding fiscal year.  The
  38-26  annual report must be in the form and reported in the time provided
  38-27  by the General Appropriations Act <(e)  On or before the first day
   39-1  of January each year, the board shall file with the governor and
   39-2  the presiding officer of each house of the legislature a complete
   39-3  and detailed written report accounting for all funds received and
   39-4  disbursed by the board during the preceding year>.
   39-5        SECTION 19.  Section 3.11A, Medical Practice Act (Article
   39-6  4495b, Vernon's Texas Civil Statutes), is amended to read as
   39-7  follows:
   39-8        Sec. 3.11A.  Disposition of <Increase in> fees.  (a)  This
   39-9  section applies to each <Each> of the following fees <imposed by or
  39-10  under another section of this Act is increased by $200>:
  39-11              (1)  fee for processing and granting a license by
  39-12  reciprocity to a licensee of another state;
  39-13              (2)  fee for processing an application and
  39-14  administration of a partial examination for licensure;
  39-15              (3)  fee for processing an application and
  39-16  administration of a complete examination for licensure;
  39-17              (4)  fee for processing an application and issuance of
  39-18  a license of reinstatement after a lapse or cancellation of a
  39-19  license; and
  39-20              (5)  fee for processing an application and issuance of
  39-21  an annual registration of a licensee.
  39-22        (b)  Of each fee <increase> collected, $50 shall be deposited
  39-23  to the credit of the foundation school fund and $150 shall be
  39-24  deposited to the credit of the general revenue fund.  This
  39-25  subsection applies to the disposition of the stated portion of each
  39-26  fee <increase> regardless of any other provision of law providing
  39-27  for a different disposition of funds.
   40-1        SECTION 20.  Section 4.01, Medical Practice Act (Article
   40-2  4495b, Vernon's Texas Civil Statutes), is amended to read as
   40-3  follows:
   40-4        Sec. 4.01.  Grounds for Cancellation, Revocation, Suspension,
   40-5  and Probation of License.  (a)  The board shall, except for good
   40-6  cause shown, revoke or suspend a license, place on probation a
   40-7  person whose license has been suspended, or reprimand a licensee
   40-8  for a violation of this Act or a rule of the board <Except as
   40-9  provided herein, the board may cancel, revoke, or suspend the
  40-10  license of any practitioner of medicine or impose any other
  40-11  authorized means of discipline upon proof of the violation of this
  40-12  Act in any respect> or for any cause for which the board is
  40-13  authorized to refuse to admit persons to its examination and to
  40-14  issue a license and renewal license, including an initial
  40-15  conviction or the initial finding of the trier of fact of guilt of
  40-16  a felony or misdemeanor involving moral turpitude.
  40-17        (b)  On proof that a practitioner of medicine has been
  40-18  initially convicted of a felony or the initial finding of the trier
  40-19  of fact of guilt of a felony under Chapter 481, Health and Safety
  40-20  Code, Section 485.033, Health and Safety Code, Chapter 483, Health
  40-21  and Safety Code, or the Federal Comprehensive Drug Abuse Prevention
  40-22  and Control Act of 1970, 21 U.S.C.A. Section 801 et seq.  (Public
  40-23  Law 91-513), the board shall suspend the practitioner's license.
  40-24  On the practitioner's final conviction for such a felony offense,
  40-25  the board shall revoke the practitioner's license.
  40-26        (c)  The board shall suspend the license of a practitioner
  40-27  who is serving a prison term in a state or federal penitentiary
   41-1  during his incarceration regardless of the offense.
   41-2        SECTION 21.  Section 4.04, Medical Practice Act (Article
   41-3  4495b, Vernon's Texas Civil Statutes), is redesignated as Section
   41-4  4.02 and amended to read as follows:
   41-5        Sec. 4.02 <4.04>.  COMPLAINT; INVESTIGATION.  (a)  Any
   41-6  person, including a partnership, association, corporation, or other
   41-7  entity, may file a complaint against a licensee with the board, or
   41-8  the board may file a complaint on its own initiative.  The board
   41-9  shall adopt rules concerning the investigation of a complaint filed
  41-10  with the board.  The rules adopted under this subsection shall:
  41-11              (1)  distinguish between categories of complaints;
  41-12              (2)  ensure that complaints are not dismissed without
  41-13  appropriate consideration;
  41-14              (3)  require that the board be advised of a complaint
  41-15  that is dismissed and that a letter be sent to the person who filed
  41-16  the complaint explaining the action taken on the dismissed
  41-17  complaint;
  41-18              (4)  ensure that the person who filed the complaint has
  41-19  an opportunity to explain the allegations made in the complaint;
  41-20  and
  41-21              (5)  prescribe guidelines concerning the categories of
  41-22  complaints that require the use of a private investigator and the
  41-23  procedures for the board to obtain the services of a private
  41-24  investigator.
  41-25        (b)  The board shall keep an information file about each
  41-26  complaint filed with the board.  The board's information file shall
  41-27  be kept current and contain a record for each complaint of:
   42-1              (1)  potential witnesses contacted in relation to the
   42-2  complaint;
   42-3              (2)  a summary of findings made at each step of the
   42-4  complaint process;
   42-5              (3)  an explanation of the legal basis and reason for a
   42-6  complaint that is dismissed; and
   42-7              (4)  other relevant information.
   42-8        (c)  If a written complaint is filed with the board that the
   42-9  board has authority to resolve, the board, at least as frequently
  42-10  as quarterly and until final disposition of the complaint, shall
  42-11  notify the parties to the complaint of the status of the complaint
  42-12  unless the notice would jeopardize an investigation.
  42-13        (d)  The board by rule shall adopt a form to standardize
  42-14  information concerning complaints made to the board.  The board by
  42-15  rule shall prescribe information to be provided to a person when
  42-16  the person files a complaint with the board.
  42-17        (e)  The board shall provide reasonable assistance to a
  42-18  person who wishes to file a complaint with the board.
  42-19        (f)  Except as otherwise provided by this section, all
  42-20  investigations shall be conducted by the board or persons
  42-21  authorized by the board to conduct them.  The board may commission
  42-22  investigators as peace officers for the purpose of enforcing this
  42-23  Act.  However, investigators of the board so commissioned as peace
  42-24  officers may not carry a firearm or exercise arrest powers.  Each
  42-25  complaint against a physician which requires a determination of
  42-26  medical competency shall be reviewed by a board member, consultant,
  42-27  or employee with medical background considered sufficient by the
   43-1  board.
   43-2        (g) <(b)>  Unless it would jeopardize an investigation, the
   43-3  board shall notify the physician that a complaint has been filed
   43-4  and the nature of the complaint.  The board shall make a
   43-5  preliminary investigation of the complaint.  The first
   43-6  consideration of the board shall be whether the physician
   43-7  constitutes a continuing threat to the public welfare.
   43-8        (h)  The board may, unless precluded by the law or this Act,
   43-9  make a disposition of any complaint or matter relating to this Act,
  43-10  or of any contested case by stipulation, agreed settlement, or
  43-11  consent order.  The board shall dispose of a complaint, contested
  43-12  case, or other matter in writing, and if appropriate, the physician
  43-13  shall sign the writing.  An agreed disposition is a disciplinary
  43-14  order for purposes of reporting under this Act and of
  43-15  administrative hearings and proceedings by state and federal
  43-16  regulatory agencies regarding the practice of medicine.  An agreed
  43-17  disposition is a public record.
  43-18        (i)  In civil or criminal litigation, an agreed disposition
  43-19  is a settlement agreement under Rule 408, Texas Rules of Civil
  43-20  Evidence, and Rule 408, Texas Rules of Criminal Evidence.  This
  43-21  subsection does not apply to a licensee who has previously entered
  43-22  into an agreed disposition with the board of a different
  43-23  disciplinary matter or whose license the board is seeking to
  43-24  revoke.
  43-25        (j)  The board shall adopt such rules as are appropriate to
  43-26  carry out this section <such disposition.  Such disposition shall
  43-27  be considered a disciplinary order>.
   44-1        (k)  The board shall dispose of all complaints in a timely
   44-2  manner.  The board shall establish a schedule for conducting each
   44-3  phase of a complaint that is under the control of the board not
   44-4  later than the 30th day after the date the complaint is received by
   44-5  the board.  The schedule shall be kept in the information file for
   44-6  the complaint and all parties shall be notified of the projected
   44-7  time requirements for pursuing the complaint.  A change in the
   44-8  schedule must be noted in the complaint information file, and all
   44-9  parties to the complaint must be notified not later than the 14th
  44-10  day after the date the change is made unless the notice would
  44-11  jeopardize an investigation.
  44-12        (l)  The executive director of the board shall notify the
  44-13  board of a complaint that extends beyond the time prescribed by the
  44-14  board for resolving the complaint so that the board may take
  44-15  necessary action on the complaint.
  44-16        (m)  Except in the case of a suspension under Section 4.13 of
  44-17  this Act or in accordance with the terms of an agreement between
  44-18  the board and  a licensee, no revocation, suspension, involuntary
  44-19  modification, or disciplinary action relating to a license is
  44-20  effective unless, before board proceedings are instituted:
  44-21              (1)  the board has served notice, in a manner
  44-22  consistent with the requirements for service under Subsection (g)
  44-23  of this section, to the physician of the facts or conduct alleged
  44-24  to warrant the intended action; and
  44-25              (2)  the physician was given an opportunity to show
  44-26  compliance with all requirements of law for the retention of the
  44-27  license either in writing or through personal appearance at an
   45-1  informal meeting with one or more representatives of the board, at
   45-2  the option of the licensee.
   45-3        (n)  If the licensee exercises the option to personally
   45-4  appear at an informal meeting with one or more representatives of
   45-5  the board and the informal meeting is held, the staff of the board
   45-6  and the representatives of the board shall be subject to the ex
   45-7  parte provisions of the Administrative Procedure Act with regard to
   45-8  subsequent contacts with board members and administrative law
   45-9  judges concerning the case.
  45-10        SECTION 22.  The Medical Practice Act (Article 4495b,
  45-11  Vernon's Texas Civil Statutes) is amended by adding Section 4.025
  45-12  to read as follows:
  45-13        Sec. 4.025.  INFORMAL PROCEEDINGS.  (a)  The board by rule
  45-14  shall adopt procedures governing:
  45-15              (1)  informal disposition of a contested case under
  45-16  Section 13(e), Administrative Procedure Act, and its subsequent
  45-17  amendments; and
  45-18              (2)  informal proceedings held in compliance with
  45-19  Section 18(c), Administrative Procedure Act, and its subsequent
  45-20  amendments.
  45-21        (b)  Rules adopted under this section must provide the
  45-22  complainant and the licensee an opportunity to be heard and must
  45-23  require the presence of the board's legal counsel or a
  45-24  representative of the office of the attorney general to advise the
  45-25  board or  board's employees.
  45-26        SECTION 23.  Section 4.02, Medical Practice Act (Article
  45-27  4495b, Vernon's Texas Civil Statutes), is redesignated as Section
   46-1  4.03 and amended to read as follows:
   46-2        Sec. 4.03 <4.02>.  Initiation of Charges.  (a)  Proceedings,
   46-3  unless otherwise specified, under this Act or other applicable law
   46-4  and charges against a licensee may be instituted by a duly
   46-5  authorized representative of the board <on its own initiative or by
   46-6  any person>.  Charges must be in writing and on sworn affidavit
   46-7  filed with the records custodian or assistant records custodian of
   46-8  the board detailing the nature of the charges as required by this
   46-9  Act or other applicable law.  The president or an authorized <his>
  46-10  designee shall <set a time and place for a hearing and shall> cause
  46-11  a copy of the charges<, together with a notice of the time and
  46-12  place fixed for the hearing> to be served on the respondent or the
  46-13  respondent's counsel of record.
  46-14        (b)  The president or designee shall notify the State Office
  46-15  of Administrative Hearings of a formal complaint.
  46-16        (c)  A formal complaint shall be in writing and shall allege
  46-17  with reasonable certainty the specific act or acts relied on by the
  46-18  agency to constitute a violation of a specific statute or rule.
  46-19  The formal complaint shall be specific enough to enable a person of
  46-20  common understanding to know what is meant by the formal complaint
  46-21  and shall contain a degree of certainty that will give the person
  46-22  who is the subject of the formal complaint notice of the particular
  46-23  act or acts alleged to be a violation of a specific statute or
  46-24  rule.
  46-25        (d)  The board shall adopt reasonable rules to promote
  46-26  discovery by all parties to contested cases.
  46-27        (e)  In this section, "formal complaint" means a written
   47-1  statement made by a credible person under oath that is filed and
   47-2  presented by a representative of the board charging a person with
   47-3  having committed an act or acts that if proven could affect the
   47-4  legal rights or privileges of a licensee or other person under the
   47-5  jurisdiction of the board.
   47-6        SECTION 24.  Section 4.03, Medical Practice Act (Article
   47-7  4495b, Vernon's Texas Civil Statutes), is redesignated as Section
   47-8  4.04 and amended to read as follows:
   47-9        Sec. 4.04 <4.03>.  Notice.  (a)  Service of process notifying
  47-10  the respondent of <the time and place of> a hearing about <and the
  47-11  nature of> the charges against the person shall be made in
  47-12  accordance with the requirements of the Administrative Procedure
  47-13  Act and its subsequent amendments <person or by mail.  Notice shall
  47-14  be sufficient if made in person or if sent by registered or
  47-15  certified mail to the person charged at the address shown in the
  47-16  board files or on his most recent application for registration or
  47-17  renewal, no later than 10 days before the hearing>.
  47-18        (b)  If service of notice as prescribed by Subsection (a) of
  47-19  this section is impossible or cannot be effected, the board shall
  47-20  cause to be published once a week for two successive weeks a notice
  47-21  of the hearing in a newspaper published in the county of the last
  47-22  known place of practice in Texas of the person, if known.  If the
  47-23  licensee is not currently practicing in Texas as evidenced by
  47-24  information in the board files, or if the last county of practice
  47-25  is unknown, publication shall be in a newspaper in Travis County.
  47-26  When publication of notice is used, the date of hearing may not be
  47-27  less than 10 days after the date of the last publication of notice.
   48-1        SECTION 25.  Section 4.05, Medical Practice Act (Article
   48-2  4495b, Vernon's Texas Civil Statutes), is amended to read as
   48-3  follows:
   48-4        Sec. 4.05.  Hearings, Rules.  (a)  The <president of the>
   48-5  board by rule shall adopt procedures governing formal disposition
   48-6  of a contested case under the Administrative Procedure Act and its
   48-7  subsequent amendments.  A formal hearing shall be conducted by an
   48-8  administrative law judge employed by the State Office of
   48-9  Administrative Hearings <designate one of the following alternative
  48-10  procedures for the conduct of each individual contested case in a
  48-11  disciplinary matter:>
  48-12              <(1)  a hearing before the board itself where a quorum
  48-13  of the board shall be present for the hearing and decision at the
  48-14  conclusion of the hearing;>
  48-15              <(2)  a hearing committee appointed by the president of
  48-16  the board, provided that the hearing committee shall be composed of
  48-17  not less than three members of the board and the composition of
  48-18  such committee shall be consistent with the provisions of Sections
  48-19  2.08 and 2.09 of this Act; or>
  48-20              <(3)  a hearing before a hearing examiner appointed by
  48-21  the board to conduct a hearing and to prepare and submit to the
  48-22  board for action a proposal for decision as provided in the
  48-23  Administrative Procedure and Texas Register Act (Article 6252-13a,
  48-24  Vernon's Texas Civil Statutes).>
  48-25        <Any individual conducting a hearing under this subchapter is
  48-26  empowered to administer oaths and to receive evidence at the
  48-27  hearing and shall report the hearing as prescribed by board rules>.
   49-1  Notwithstanding any other provision of this Act or other law, the
   49-2  board may, in its sole discretion, employ, retain, and compensate
   49-3  such attorneys, consultants, and other professionals as it deems
   49-4  necessary and appropriate to serve as <hearing examiners,> board
   49-5  consultants or<,> special counsel to prosecute on behalf of the
   49-6  hearings division and investigating division such complaints as are
   49-7  filed with the board, court reporters, and other staff deemed
   49-8  necessary or appropriate by the board to prepare for or represent
   49-9  the board in <conduct> the hearings authorized by this section.
  49-10  <All hearings conducted under this subchapter by the board shall
  49-11  comply with the provisions of the Administrative Procedure Act and
  49-12  the board's rules.>
  49-13        (b)  <The licensee shall have the right to produce witnesses
  49-14  or evidence on the person's behalf, to cross-examine witnesses, and
  49-15  to have subpoenas issued by the board to be served at the
  49-16  licensee's expense.>
  49-17        <(c)>  The board shall, after receiving the administrative
  49-18  law judge's findings of fact and conclusions of law <the hearing>,
  49-19  determine the charges upon their merits.
  49-20        (c) <(d)>  All complaints, adverse reports, investigation
  49-21  files, other investigation reports, and other investigative
  49-22  information in the possession of, received or gathered by the board
  49-23  or its employees or agents relating to a licensee, an application
  49-24  for license, or a criminal investigation or proceedings are
  49-25  privileged and confidential and are not subject to discovery,
  49-26  subpoena, or other means of legal compulsion for their release to
  49-27  anyone other than the board or its employees or agents involved in
   50-1  licensee discipline.  Not later than 30 days after receiving a
   50-2  written request from a licensee who is the subject of a formal
   50-3  complaint initiated and filed under Section 4.03 of this Act or
   50-4  from the licensee's counsel of record and subject to any other
   50-5  privileges or restrictions set forth by rule, statute, or legal
   50-6  precedent, and unless good cause is shown for delay, the board
   50-7  shall provide the licensee with access to all information in its
   50-8  possession that the board intends to offer into evidence in
   50-9  presenting its case in chief at the contested hearing on the
  50-10  complaint.  However, the board is not required to provide board
  50-11  investigative reports or investigative memoranda, the identity of
  50-12  nontestifying complainants, attorney-client communications,
  50-13  attorney-work product, or other materials covered by a privilege as
  50-14  recognized by the Texas Rules of Civil Procedure or the Texas Rules
  50-15  of Civil Evidence.  The furnishing of information shall not
  50-16  constitute a waiver of privilege or confidentiality under this
  50-17  section, this Act, or other applicable law.  Investigative
  50-18  <However, investigative> information in the possession of the board
  50-19  or its employees or agents which relates to licensee discipline may
  50-20  be disclosed to the appropriate licensing authority in another
  50-21  state, the District of Columbia, or a territory or country in which
  50-22  the licensee is licensed or has applied for a license, or to a peer
  50-23  review committee reviewing an application for privileges or the
  50-24  qualifications of the licensee with respect to retaining
  50-25  privileges.  If the investigative information in the possession of
  50-26  the board or its employees or agents indicates a crime may have
  50-27  been committed, the information shall be reported to the proper law
   51-1  enforcement agency.  The board shall cooperate and assist all law
   51-2  enforcement agencies conducting criminal investigations of
   51-3  licensees by providing information which is relevant to the
   51-4  criminal investigation to the investigating agency.  Any
   51-5  information disclosed by the board to an investigative agency shall
   51-6  remain confidential and shall not be disclosed by the investigating
   51-7  agency except as necessary to further the investigation.  The board
   51-8  shall provide information upon the written request of a health-care
   51-9  entity about a complaint filed against a licensee that was resolved
  51-10  after investigation by a disciplinary order of the board or by an
  51-11  agreed settlement and the basis of and current status of any
  51-12  complaint under active investigation.  The board shall keep
  51-13  information on file about each complaint filed with the board,
  51-14  consistent with this Act.  If a written complaint is filed with the
  51-15  board relating to a person licensed by the board, the board, at
  51-16  least as often as quarterly and until final determination of the
  51-17  action to be taken relative to the complaint, shall notify the
  51-18  parties to the complaint <complaining party> consistent with this
  51-19  Act of the status of the complaint unless the notice would
  51-20  jeopardize an active investigation.
  51-21        (d) <(e)>  The board in its discretion may accept the
  51-22  voluntary surrender of a license.  No license may be returned
  51-23  unless the board determines, under rules established by it, that
  51-24  the licensee is competent to resume practice.
  51-25        SECTION 26.  Section 4.10, Medical Practice Act (Article
  51-26  4495b, Vernon's Texas Civil Statutes), is amended to read as
  51-27  follows:
   52-1        Sec. 4.10.  Petition for Reinstatement.  (a)  Upon
   52-2  application, the board may reissue a license to practice medicine
   52-3  to a person whose license has been canceled, revoked, or suspended,
   52-4  but the application, in the case of revocation, may not be made
   52-5  prior to one year after the revocation was issued or became final
   52-6  and must be made upon payment of the fees as established by the
   52-7  board and in the manner and form and under the conditions as the
   52-8  board may require.  Further, the board may not reinstate or reissue
   52-9  a license to a person whose license has been canceled, revoked, or
  52-10  suspended because of a felony conviction under Chapter 481, Health
  52-11  and Safety Code, Section 485.033, Health and Safety Code, Chapter
  52-12  483, Health and Safety Code, or the Federal Comprehensive Drug
  52-13  Abuse Prevention and Control Act of 1970, 21 U.S.C.A. Section 801
  52-14  et seq. (Public Law 91-513), except on an express determination
  52-15  based on substantial evidence contained in an investigative report
  52-16  indicating that the reinstatement or reissue of the license is in
  52-17  the best interests of the public and of the person whose license
  52-18  has been canceled, revoked, or suspended.
  52-19        (b)  A decision by the board to deny an application to
  52-20  reinstate or reissue a license is subject to judicial review in the
  52-21  manner provided by Section 4.09 of this Act.
  52-22        SECTION 27.  Section 4.11, Medical Practice Act (Article
  52-23  4495b, Vernon's Texas Civil Statutes), is amended to read as
  52-24  follows:
  52-25        Sec. 4.11.  Monitoring of License Holder; Probation.
  52-26  (a)  The board by rule shall develop a system for monitoring the
  52-27  compliance with the requirements of this Act of license holders who
   53-1  are the subject of disciplinary action.  Rules adopted under this
   53-2  section shall include procedures for monitoring a license holder
   53-3  who is ordered by the board to perform certain acts to ascertain
   53-4  that the license holder performs the required acts and to identify
   53-5  and monitor license holders who are the subject of disciplinary
   53-6  action and who present a continuing threat to the public welfare
   53-7  through the practice of medicine.
   53-8        (b)  The board upon majority vote may provide that the order
   53-9  canceling, revoking, or suspending a license or imposing any other
  53-10  method of discipline be probated so long as the probationer
  53-11  conforms to the orders, conditions, and rules that the board may
  53-12  set out as the terms of probation.  However, the board may not
  53-13  grant probation to a person whose license has been canceled,
  53-14  revoked, or suspended because of a felony conviction under Chapter
  53-15  481, Health and Safety Code, Section 485.033, Health and Safety
  53-16  Code, Chapter 483, Health and Safety Code, or the Federal
  53-17  Comprehensive Drug Abuse Prevention and Control Act of 1970, 21
  53-18  U.S.C.A. Section 801 et seq. (Public Law 91-513), except on an
  53-19  express determination, based on substantial evidence, that the
  53-20  grant of probation is in the best interests of the public and of
  53-21  the person whose license has been suspended, revoked, or canceled.
  53-22  The board, at the time of probation, shall set out the period of
  53-23  time that constitutes the probationary period.  The board may not
  53-24  grant probation to a physician who poses, through the practice of
  53-25  medicine, a continuing threat to the public welfare.
  53-26        (c) <(b)>  The board may at any time while a license holder
  53-27  <the probationer> remains on probation, with adequate grounds being
   54-1  shown, cause <hold> a hearing to be held and, upon proof of a
   54-2  violation of the order <majority vote>, rescind the probation and
   54-3  enforce the board's original action and may impose any disciplinary
   54-4  action permitted under Section 4.12 of this Act in addition to or
   54-5  in lieu of enforcing the original order.  The board <and> shall
   54-6  revoke or suspend a probationer's license <do so> if the board
   54-7  determines that the probationer poses, through the practice of
   54-8  medicine, a continuing threat to the public welfare.
   54-9        (d) <(c)>  The hearing to rescind the probation shall be
  54-10  governed by the same provisions as are set forth in this subchapter
  54-11  for other charges.
  54-12        SECTION 28.  Section 4.12, Medical Practice Act (Article
  54-13  4495b, Vernon's Texas Civil Statutes), is amended to read as
  54-14  follows:
  54-15        Sec. 4.12.  Methods of Discipline.  (a)  Except as otherwise
  54-16  provided in Section 4.01, if the board finds any person to have
  54-17  committed any of the acts set forth in Section 3.08 of this Act, it
  54-18  shall enter an order imposing one or more of the following:
  54-19              (1)  deny the person's application for a license or
  54-20  other authorization to practice medicine;
  54-21              (2)  administer a public reprimand;
  54-22              (3)  suspend, limit, or restrict the person's license
  54-23  or other authorization to practice medicine, including limiting the
  54-24  practice of the person to or by the exclusion of one or more
  54-25  specified activities of medicine or stipulating periodic board
  54-26  review;
  54-27              (4)  revoke the person's license or other authorization
   55-1  to practice medicine;
   55-2              (5)  require the person to submit to care, counseling,
   55-3  or treatment of physicians designated by the board as a condition
   55-4  for the initial, continued, or renewal of a license or other
   55-5  authorization to practice medicine;
   55-6              (6)  require the person to participate in a program of
   55-7  education or counseling prescribed by the board;
   55-8              (7)  require the person to practice under the direction
   55-9  of a physician designated by the board for a specified period of
  55-10  time; <or>
  55-11              (8)  require the person to perform public service
  55-12  considered appropriate by the board; or
  55-13              (9)  assess an administrative penalty against the
  55-14  person as provided by Section 4.125 of this Act.
  55-15        (b)  Providing however, if the board determines that, through
  55-16  the practice of medicine, the physician poses a continuing threat
  55-17  to the public welfare, it shall revoke, suspend or deny the
  55-18  license.
  55-19        (c)  In addition to the other disciplinary actions authorized
  55-20  by this section, the board may issue a written reprimand to a
  55-21  license holder who violates this Act or require that a license
  55-22  holder who violates this Act participate in continuing education
  55-23  programs.  The board shall specify the continuing education
  55-24  programs that may be attended and the number of hours that must be
  55-25  completed by an individual license holder to fulfill the
  55-26  requirements of this subsection.
  55-27        (d)  If a license suspension is probated, the board may
   56-1  require the license holder to:
   56-2              (1)  report regularly to the board on matters that are
   56-3  the basis of the probation;
   56-4              (2)  limit practice to the areas prescribed by the
   56-5  board; or
   56-6              (3)  continue or review continuing professional
   56-7  education until the license holder attains a degree of skill
   56-8  satisfactory to the board in those areas that are the basis of the
   56-9  probation.
  56-10        (e)  The schedule of sanctions adopted by the board by rule
  56-11  shall be used by the State Office of Administrative Hearings for
  56-12  any sanction imposed as the result of a hearing conducted by that
  56-13  office.
  56-14        SECTION 29.  The Medical Practice Act (Article 4495b,
  56-15  Vernon's Texas Civil Statutes) is amended by adding Section 4.125
  56-16  to read as follows:
  56-17        Sec. 4.125.  ADMINISTRATIVE PENALTY.  (a)  The board by order
  56-18  may impose an administrative penalty against a person licensed or
  56-19  regulated under this Act who violates this Act or a rule or order
  56-20  adopted under this Act.
  56-21        (b)  The penalty for a violation may be in an amount not to
  56-22  exceed $5,000.   Each day a violation continues or occurs is a
  56-23  separate violation for purposes of imposing a penalty.
  56-24        (c)  The amount of the penalty shall be based on:
  56-25              (1)  the seriousness of the violation, including the
  56-26  nature, circumstances, extent, and gravity of any prohibited acts,
  56-27  and the hazard or potential hazard created to the health, safety,
   57-1  or economic welfare of the public;
   57-2              (2)  the economic harm to property or the environment
   57-3  caused by the violation;
   57-4              (3)  the history of previous violations;
   57-5              (4)  the amount necessary to deter future violations;
   57-6              (5)  efforts to correct the violation; and
   57-7              (6)  any other matter that justice may require.
   57-8        (d)  The board by rule shall prescribe the procedure by which
   57-9  it may impose an administrative penalty.
  57-10        (e)  All proceedings under this section are subject to the
  57-11  Administrative Procedure Act and its subsequent amendments.
  57-12        (f)  If the board by order finds that a violation has
  57-13  occurred and imposes an administrative penalty, the board shall
  57-14  give notice to the person of the board's order.  The notice must
  57-15  include a statement of the right of the person to judicial review
  57-16  of the order.
  57-17        (g)  Within 30 days after the date the board's order imposing
  57-18  the penalty is final as provided by Section 16(c), Administrative
  57-19  Procedure Act, and its subsequent amendments, the person shall:
  57-20              (1)  pay the amount of the penalty;
  57-21              (2)  pay the amount of the penalty and file a petition
  57-22  for judicial review contesting the occurrence of the violation, the
  57-23  amount of the penalty, or both the occurrence of the violation and
  57-24  the amount of the penalty; or
  57-25              (3)  without paying the amount of the penalty, file a
  57-26  petition for judicial review contesting the occurrence of the
  57-27  violation, the amount of the penalty, or both the occurrence of the
   58-1  violation and the amount of the penalty.
   58-2        (h)  Within the 30-day period, a person who acts under
   58-3  Subsection (g)(3) of this section may:
   58-4              (1)  stay enforcement of the penalty by:
   58-5                    (A)  paying the amount of the penalty to the
   58-6  court for placement in an escrow account; or
   58-7                    (B)  giving to the court a supersedeas bond that
   58-8  is approved by the court for the amount of the penalty and that is
   58-9  effective until all judicial review of the board's order is final;
  58-10  or
  58-11              (2)  request the court to stay enforcement of the
  58-12  penalty by:
  58-13                    (A)  filing with the court a sworn affidavit of
  58-14  the person stating that the person is financially unable to pay the
  58-15  amount of the penalty and is financially unable to give the
  58-16  supersedeas bond; and
  58-17                    (B)  giving a copy of the affidavit to the
  58-18  executive director by certified mail.
  58-19        (i)  An executive director who receives a copy of an
  58-20  affidavit under Subsection (h)(2) of this section may file with the
  58-21  court, within five days after the date the copy is received, a
  58-22  contest to the affidavit.  The court shall hold a hearing on the
  58-23  facts alleged in the affidavit as soon as practicable and shall
  58-24  stay the enforcement of the penalty on finding that the alleged
  58-25  facts are true.  The person who files an affidavit has the burden
  58-26  of proving that the person is financially unable to pay the amount
  58-27  of the penalty and to give a supersedeas bond.
   59-1        (j)  If the person does not pay the amount of the penalty and
   59-2  the enforcement of the penalty is not stayed, the executive
   59-3  director may refer the matter to the attorney general for
   59-4  collection of the amount of the penalty.
   59-5        (k)  If on appeal the court sustains the occurrence of the
   59-6  violation, the court may uphold or reduce the amount of the penalty
   59-7  and order the person to pay the full or reduced amount of the
   59-8  penalty.  If the court does not sustain the occurrence of the
   59-9  violation, the court shall order that no penalty is owed.
  59-10        (l)  When the judgment of the court becomes final, the court
  59-11  shall proceed under this subsection.  If the person paid the amount
  59-12  of the penalty and if that amount is reduced or is not upheld by
  59-13  the court, the court shall order that the appropriate amount plus
  59-14  accrued interest be remitted to the person.  The rate of the
  59-15  interest is the rate charged on loans to depository institutions by
  59-16  the New York Federal Reserve Bank, and the interest shall be paid
  59-17  for the period beginning on the date the penalty was paid and
  59-18  ending on the date the penalty is remitted.  If the person gave a
  59-19  supersedeas bond and if the amount of the penalty is not upheld by
  59-20  the court, the court shall order the release of the bond.  If the
  59-21  person gave a supersedeas bond and if the amount of the penalty is
  59-22  reduced, the court shall order the release of the bond after the
  59-23  person pays the amount.
  59-24        (m)  A penalty collected under this section shall be remitted
  59-25  to the comptroller for deposit in the general revenue fund.
  59-26        SECTION 30.  The Medical Practice Act (Article 4495b,
  59-27  Vernon's Texas Civil Statutes) is amended by adding Section 4.126
   60-1  to read as follows:
   60-2        Sec. 4.126.  CIVIL PENALTY.  (a)  If it appears that a person
   60-3  is in violation of or is threatening to violate this Act or a rule
   60-4  or order adopted by the board, the attorney general may institute
   60-5  an action for a civil penalty of $1,000 for each violation.  Each
   60-6  day of a violation shall constitute a separate violation.
   60-7        (b)  A civil action filed under this section by the attorney
   60-8  general  must be filed in a district court in Travis County or the
   60-9  county in which the violation occurred.
  60-10        (c)  The attorney general may recover reasonable expenses
  60-11  incurred in obtaining a civil penalty under this section, including
  60-12  court costs, reasonable attorney's fees, investigative costs,
  60-13  witness fees, and deposition expenses.
  60-14        (d)  A civil penalty recovered in an action by the attorney
  60-15  general  under this section shall be deposited in the general
  60-16  revenue fund.
  60-17        SECTION 31.  Section 4.13, Medical Practice Act (Article
  60-18  4495b, Vernon's Texas Civil Statutes), is amended to read as
  60-19  follows:
  60-20        Sec. 4.13.  Temporary Suspension of License.  (a)  The
  60-21  president of the board, with the approval of the board, shall
  60-22  appoint a three-member disciplinary panel consisting of members of
  60-23  the board for the purpose of determining whether a person's license
  60-24  to practice medicine in this state should be temporarily suspended
  60-25  under this section.
  60-26        (b)  If the disciplinary panel <executive committee of the
  60-27  board> determines from the evidence or information presented to it
   61-1  that a person licensed to practice medicine in this state by his
   61-2  continuation in practice would constitute a continuing threat to
   61-3  the public welfare, the disciplinary panel <executive committee of
   61-4  the board> shall temporarily suspend the license of that person.
   61-5        (c)  The license may be suspended under this section without
   61-6  notice or hearing on the complaint, provided institution of
   61-7  proceedings for a hearing before the board is initiated
   61-8  simultaneously with the temporary suspension and provided that a
   61-9  hearing is held as soon as can be accomplished under the
  61-10  Administrative Procedure Act and this Act.
  61-11        (d)  Notwithstanding the open meetings law, Chapter 271, Acts
  61-12  of the 60th Legislature, Regular Session, 1967 (Article 6252-17,
  61-13  Vernon's Texas Civil Statutes), the disciplinary panel may hold a
  61-14  meeting by telephone conference call if immediate action is
  61-15  required and the convening at one location of the disciplinary
  61-16  panel is inconvenient for any member of the disciplinary panel.
  61-17        SECTION 32.  Subchapter E, Medical Practice Act (Article
  61-18  4495b, Vernon's Texas Civil Statutes), is amended by adding Section
  61-19  5.035 to read as follows:
  61-20        Sec. 5.035.  GRADUATES OF UNAPPROVED FOREIGN MEDICAL SCHOOLS.
  61-21  (a)  An applicant who is a graduate of a medical school that is
  61-22  located outside the United States and Canada and that was not
  61-23  approved by the board at the time the degree was conferred, to be
  61-24  eligible for the issuance of a license, must present satisfactory
  61-25  proof to the board that the applicant:
  61-26              (1)  meets the requirements set out in Sections
  61-27  3.04(a)(1), (2), and (3) of this Act;
   62-1              (2)  is a graduate of a school whose curriculum meets
   62-2  the requirements for an unapproved medical school as determined by
   62-3  a committee of experts selected by the Texas Higher Education
   62-4  Coordinating Board;
   62-5              (3)  has successfully completed three years of graduate
   62-6  medical training in the United States or Canada that was approved
   62-7  by the board on the date the training was completed;
   62-8              (4)  is eligible for licensure to practice medicine in
   62-9  the country in which the school is located;
  62-10              (5)  possesses a valid certificate issued by the
  62-11  Educational Commission for Foreign Medical Graduates;
  62-12              (6)  has the ability to communicate in the English
  62-13  language; and
  62-14              (7)  has passed the examination required by the board
  62-15  of all applicants for license as required by Section 3.05 of this
  62-16  Act.
  62-17        (b)  In addition to other licensure requirements, the board
  62-18  may require by rule that a graduate of an unapproved medical school
  62-19  located outside the United States and Canada or the school of which
  62-20  the person is a graduate provide additional information to the
  62-21  board concerning the school before approving the applicant.
  62-22        (c)  The board may refuse to issue a license to an applicant
  62-23  who graduated from an unapproved medical school located outside the
  62-24  United States and Canada if it finds that the applicant does not
  62-25  possess the requisite qualifications to provide the same standard
  62-26  of medical care as provided by a physician licensed in this state.
  62-27        (d)  The board may refuse to issue a license to an applicant
   63-1  who graduated from an unapproved medical school located outside the
   63-2  United States and Canada if the applicant fails to provide the
   63-3  board evidence to establish that the applicant completed medical
   63-4  education or professional training substantially equivalent to that
   63-5  provided by a medical school in this state.
   63-6        SECTION 33.  Section 5.04, Medical Practice Act, is amended
   63-7  to read as follows:
   63-8        Sec. 5.04.  FIFTH PATHWAY FOR FOREIGN MEDICAL SCHOOL
   63-9  STUDENTS.  (a)  An applicant <Notwithstanding any other provision
  63-10  of law, an individual> who has been a student of a foreign medical
  63-11  school, to be eligible for the  issuance of a license, must present
  63-12  satisfactory proof to the board that the applicant <is eligible for
  63-13  licensure to practice medicine in this state if he>:
  63-14              (1)  meets the requirements set out in Sections
  63-15  3.04(a)(1), (2), and (3) of this Act;
  63-16              (2)  has studied medicine in an acceptable <a
  63-17  reputable> medical school as defined by the board located outside
  63-18  the United States and Canada;
  63-19              (3) <(2)>  has completed all of the didactic work of
  63-20  the foreign medical school but has not graduated from the school;
  63-21              (4) <(3)>  has attained a score satisfactory to a
  63-22  medical school in the United States approved by the Liaison
  63-23  Committee on Medical Education on a qualifying examination and has
  63-24  satisfactorily completed one academic year of supervised clinical
  63-25  training for foreign medical students as defined by the American
  63-26  Medical Association Council on Medical Education (Fifth Pathway
  63-27  Program) under the direction of the medical school in the United
   64-1  States;
   64-2              (5) <(4)>  has attained a passing score on the
   64-3  Educational Commission <Council> for Foreign Medical Graduates
   64-4  examination, or other examination, if required by the board; <and>
   64-5              (6)  has successfully completed three years of graduate
   64-6  medical training in the United States or Canada that was approved
   64-7  by the board on the date the training was completed; and
   64-8              (7) <(5)>  has passed the examination required by the
   64-9  board of all applicants for license as required by Section 3.05 of
  64-10  this Act.
  64-11        (b)  Satisfaction of the requirements of Subsection (a) of
  64-12  this section are in lieu of the completion of any requirements of
  64-13  the foreign medical school beyond completion of the didactic work,
  64-14  and no other medical education requirements shall be a condition of
  64-15  licensure to practice medicine in this state.
  64-16        (c)  Satisfaction of the requirements specified in Subsection
  64-17  (a) of this section shall be in lieu of certification by the
  64-18  Educational Commission <Council> for Foreign Medical Graduates, and
  64-19  the certification is not a condition of licensure to practice
  64-20  medicine in this state for candidates who have completed the
  64-21  requirements of Subsection (a) of this section.
  64-22        (d)  A hospital that is licensed by this state, that is
  64-23  operated by the state or a political subdivision of the state, or
  64-24  that receives state financial assistance, directly or indirectly,
  64-25  may not require an individual who has been a student of a foreign
  64-26  medical school but has not graduated from the school to satisfy any
  64-27  requirements other than those contained in <Subdivisions (1), (2),
   65-1  (3), and (4) of> Subsection (a) of this section prior to commencing
   65-2  an internship or residency.
   65-3        (e)  A document granted by a medical school located outside
   65-4  the United States issued after the completion of all the didactic
   65-5  work of the foreign medical school shall, on certification by the
   65-6  medical school in the United States in which the training was
   65-7  received of satisfactory completion by the person to whom the
   65-8  document was issued of the requirements listed in Subdivision (4)
   65-9  <(3)> of Subsection (a) of this section, be considered the
  65-10  equivalent of a degree of doctor of medicine or doctor of
  65-11  osteopathy for purposes of licensure.
  65-12        SECTION 34.  Section 5.08(k), Medical Practice Act (Article
  65-13  4495b, Vernon's Texas Civil Statutes), is amended to read as
  65-14  follows:
  65-15        (k)  A physician shall furnish copies of medical records
  65-16  requested, or a summary or narrative of the records, pursuant to a
  65-17  written consent for release of the information as provided by
  65-18  Subsection (j) of this section, except if the physician determines
  65-19  that access to the information would be harmful to the physical,
  65-20  mental, or emotional health of the patient, and the physician may
  65-21  delete confidential information about another person who has not
  65-22  consented to the release.  The information shall be furnished by
  65-23  the physician within 30 days after the date of receipt of the
  65-24  request <a reasonable period of time> and reasonable fees for
  65-25  furnishing the information shall be paid by the patient or someone
  65-26  on his behalf.  If the physician denies the request, in whole or in
  65-27  part, the physician shall furnish the patient a written statement,
   66-1  signed and dated, stating the reason for the denial.  A copy of the
   66-2  statement denying the request shall be placed in the patient's
   66-3  medical records.  In this subsection, "medical records" means any
   66-4  records pertaining to the history, diagnosis, treatment, or
   66-5  prognosis of the patient.
   66-6        SECTION 35.  Section 5.10, Medical Practice Act (Article
   66-7  4495b, Vernon's Texas Civil Statutes), is amended to read as
   66-8  follows:
   66-9        Sec. 5.10.  Sunset provision.  The Texas State Board of
  66-10  Medical Examiners is subject to Chapter 325, Government Code (Texas
  66-11  Sunset Act).  Unless continued in existence as provided by that
  66-12  chapter, the board is abolished and this Act expires September 1,
  66-13  2005 <1993>.
  66-14        SECTION 36.  The Medical Practice Act (Article 4495b,
  66-15  Vernon's Texas Civil Statutes) is amended by adding Subchapter F to
  66-16  read as follows:
  66-17                  SUBCHAPTER F.  ACUPUNCTURE PRACTICE
  66-18        Sec. 6.01.  LEGISLATIVE FINDINGS AND PURPOSE.  The
  66-19  legislature finds that:
  66-20              (1)  the review and establishment of statewide
  66-21  standards for the training, education, and discipline of persons
  66-22  performing acupuncture are in the public interest; and
  66-23              (2)  the health, safety, and welfare of the people of
  66-24  this state are best served by an orderly system of regulating the
  66-25  practice of acupuncture.
  66-26        Sec. 6.02.  DEFINITIONS.  In this subchapter:
  66-27              (1)  "Acupuncture" means:
   67-1                    (A)  the insertion of an acupuncture needle and
   67-2  the application of moxibustion to specific areas of the human body
   67-3  as a primary mode of therapy to treat and mitigate a human
   67-4  condition; and
   67-5                    (B)  the administration of thermal or electrical
   67-6  treatments or the recommendation of dietary guidelines, therapeutic
   67-7  exercise, or dietary or herbal supplements in conjunction with the
   67-8  treatment described by Paragraph (A) of this subdivision.
   67-9              (2)  "Acupuncturist" means a person who practices
  67-10  acupuncture.
  67-11              (3)  "Acupuncture board" means the Texas State Board of
  67-12  Acupuncture Examiners.
  67-13              (4)  "Chiropractor" means a licensee of the Texas Board
  67-14  of Chiropractic Examiners.
  67-15              (5)  "Executive director" means the executive director
  67-16  of the Texas State Board of Medical Examiners.
  67-17              (6)  "Medical board" means the Texas State Board of
  67-18  Medical Examiners.
  67-19              (7)  "Physician" means a licensee of the Texas State
  67-20  Board of Medical Examiners.
  67-21        Sec. 6.03.  EXEMPTION; LIMITATION.  (a)  This subchapter does
  67-22  not apply to a health care professional licensed under another
  67-23  subchapter of this Act or another statute of this state and acting
  67-24  within the scope of the license.
  67-25        (b)  This subchapter does not:
  67-26              (1)  limit the practice of medicine by a physician or
  67-27  permit the unauthorized practice of medicine; or
   68-1              (2)  permit a person to dispense, administer, or supply
   68-2  any controlled substance, narcotic, or dangerous drug if the person
   68-3  is not otherwise authorized by law to do so.
   68-4        Sec. 6.04.  ACUPUNCTURE BOARD.  (a)  The Texas State Board of
   68-5  Acupuncture Examiners is composed of nine members appointed by the
   68-6  governor as follows:
   68-7              (1)  four acupuncturists who have at least five years
   68-8  of experience in the practice of acupuncture in this state and are
   68-9  not licensed in this state as physicians;
  68-10              (2)  two physicians who are licensed in this state and
  68-11  are experienced in the practice of acupuncture; and
  68-12              (3)  three members of the general public who are not
  68-13  licensed or trained in a health care profession and who represent
  68-14  the public.
  68-15        (b)  The following persons may not serve on the acupuncture
  68-16  board:
  68-17              (1)  a person who is required to register as a lobbyist
  68-18  under Chapter 305, Government Code, and its subsequent amendments;
  68-19  and
  68-20              (2)  a person who is currently employed by or serving
  68-21  as president, vice-president, secretary, or treasurer of a
  68-22  statewide or national organization incorporated for the purpose of
  68-23  representing a health care profession in this state or the United
  68-24  States.
  68-25        (c)  Members of the acupuncture board hold office for
  68-26  staggered terms of six years, with three members' terms expiring
  68-27  January 31 of each odd-numbered year.
   69-1        (d)  The governor shall designate a presiding officer of the
   69-2  acupuncture board from the members of the acupuncture board.
   69-3        (e)  A vacancy on the acupuncture board shall be filled by
   69-4  appointment of the governor.
   69-5        (f)  A member of the acupuncture board may not receive
   69-6  compensation for service on the board but is entitled to receive a
   69-7  per diem as set by legislative appropriation for transportation and
   69-8  related expenses incurred for each day that the member engages in
   69-9  the business of the board.
  69-10        (g)  The acupuncture board is subject to the open meetings
  69-11  law, the open records law, and the Administrative Procedure Act and
  69-12  any subsequent amendments.
  69-13        (h)  The acupuncture board is subject to Chapter 325,
  69-14  Government Code (Texas Sunset Act).  Unless continued in existence
  69-15  as provided by that chapter, the board is abolished and this
  69-16  subchapter expires September 1, 1997.
  69-17        Sec. 6.05.  POWERS AND DUTIES OF ACUPUNCTURE BOARD.  (a)
  69-18  Subject to the advice and approval of the medical board, the
  69-19  acupuncture board shall:
  69-20              (1)  establish qualifications for an acupuncturist to
  69-21  practice in this state;
  69-22              (2)  establish minimum educational and training
  69-23  requirements necessary for the acupuncture board to recommend that
  69-24  the medical board issue a license to practice acupuncture;
  69-25              (3)  administer an examination that is validated by
  69-26  independent testing professionals for a license to practice
  69-27  acupuncture;
   70-1              (4)  develop requirements for licensure by endorsement
   70-2  of other states;
   70-3              (5)  prescribe the application form for a license to
   70-4  practice acupuncture;
   70-5              (6)  make recommendations on applications for licenses
   70-6  to practice acupuncture;
   70-7              (7)  establish a procedure for reporting and processing
   70-8  complaints relating to the practice of acupuncture under this
   70-9  article;
  70-10              (8)  establish the requirements for a tutorial program
  70-11  for students who have completed at least 48 semester hours of
  70-12  college; and
  70-13              (9)  recommend additional rules as are necessary for
  70-14  the administration and enforcement of this subchapter.
  70-15        (b)  Notwithstanding Subsection (a) of this section, the
  70-16  acupuncture board has no independent rulemaking authority.
  70-17        Sec. 6.06.  LICENSE REQUIRED.  A person may not practice
  70-18  acupuncture in this state unless the person holds a license to
  70-19  practice acupuncture issued by the medical board under this
  70-20  subchapter.
  70-21        Sec. 6.07.  QUALIFICATIONS OF ACUPUNCTURISTS.  (a)  An
  70-22  applicant for a license to practice acupuncture who is not
  70-23  otherwise licensed under this subchapter must pass an examination
  70-24  approved by the acupuncture board.
  70-25        (b)  To be eligible for the examination, an applicant must:
  70-26              (1)  be at least 21 years of age;
  70-27              (2)  have completed at least 48 semester hours of
   71-1  college courses, including basic science courses as determined by
   71-2  the advisory board; and
   71-3              (3)  be a graduate of an acceptable acupuncture school
   71-4  whose entrance requirements and course of instruction meet
   71-5  standards set by the acupuncture board.
   71-6        (c)  A reputable acupuncture school must:
   71-7              (1)  maintain a resident course of instruction
   71-8  equivalent to not less than six terms of four months each for a
   71-9  total of not less than 1,800 instructional hours;
  71-10              (2)  provide supervised patient treatment for at least
  71-11  two terms of the resident course of instruction;
  71-12              (3)  maintain a course of instruction in
  71-13  anatomy-histology, bacteriology, physiology, symptomatology,
  71-14  pathology, meridian and point locations, hygiene, and public
  71-15  health; and
  71-16              (4)  have the necessary teaching force and facilities
  71-17  for proper instruction in required subjects.
  71-18        (d)  In establishing standards for the entrance requirements
  71-19  and course of instruction of an acupuncture school, the acupuncture
  71-20  board may consider the standards set by the National Accreditation
  71-21  Commission for Schools and Colleges of Acupuncture and Oriental
  71-22  Medicine.
  71-23        (e)  The examination shall be conducted on practical and
  71-24  theoretical acupuncture and other subjects required by the
  71-25  acupuncture board.
  71-26        (f)  An application for examination must be:
  71-27              (1)  in writing on a form prescribed by the acupuncture
   72-1  board;
   72-2              (2)  verified by affidavit;
   72-3              (3)  filed with the executive director of the medical
   72-4  board; and
   72-5              (4)  accompanied by a fee set by the medical board.
   72-6        (g)  The medical board shall notify all applicants of the
   72-7  time and place of the examination.
   72-8        (h)  The examination may be in writing, by a practical
   72-9  demonstration of the applicant's skill, or both, as the acupuncture
  72-10  board may require.
  72-11        Sec. 6.08.  ASSISTANCE BY MEDICAL BOARD.  The medical board
  72-12  shall provide administrative and clerical employees as necessary to
  72-13  enable the acupuncture board to carry out this subchapter.
  72-14        Sec. 6.09.  FEES.  (a)  The medical board shall set and
  72-15  collect fees in amounts that are reasonable and necessary to cover
  72-16  the costs of administering and enforcing this subchapter without
  72-17  the use of any other funds generated by the medical board.
  72-18        (b)  Fees collected by the medical board under this
  72-19  subchapter shall be deposited by the medical board in the state
  72-20  treasury to the credit of an account in the general revenue fund
  72-21  and may be expended to cover the costs of administering and
  72-22  enforcing this subchapter.  At the end of each fiscal biennium, the
  72-23  comptroller shall transfer any surplus money remaining in the
  72-24  account to the general revenue fund.
  72-25        Sec. 6.10.  ISSUANCE OF LICENSE.  (a)  After consulting the
  72-26  acupuncture board, the medical board shall issue a license to
  72-27  practice acupuncture in this state to a person who meets the
   73-1  requirements of this subchapter and the rules adopted under this
   73-2  subchapter.
   73-3        (b)  The medical board shall by rule provide for the annual
   73-4  renewal of a license to practice acupuncture.
   73-5        Sec. 6.11.  DENIAL OF LICENSE; DISCIPLINE OF LICENSE HOLDER.
   73-6  (a)  A license to practice acupuncture may be denied or, after
   73-7  notice and hearing, suspended, probated, or revoked if the
   73-8  applicant for a license or the holder of a license:
   73-9              (1)  uses drugs or intoxicating liquors to an extent
  73-10  that affects the person's professional competence;
  73-11              (2)  obtains or attempts to obtain a license by fraud
  73-12  or deception;
  73-13              (3)  is adjudged mentally incompetent by a court of
  73-14  competent jurisdiction;
  73-15              (4)  practices acupuncture in a manner detrimental to
  73-16  the public health and welfare;
  73-17              (5)  violates this subchapter or a rule adopted under
  73-18  this subchapter;
  73-19              (6)  is convicted of a felony or a crime involving
  73-20  moral turpitude; or
  73-21              (7)  holds himself out as a physician or surgeon or any
  73-22  combination or derivative of those terms unless the person is also
  73-23  licensed by the medical board as a physician or surgeon.
  73-24        (b)  Except as provided by Subsection (c) of this section, a
  73-25  license to practice acupuncture shall be denied or, after notice
  73-26  and hearing, revoked if the holder of a license has performed
  73-27  acupuncture on a person who was not evaluated by a physician or
   74-1  dentist, as appropriate, for the condition being treated within six
   74-2  months before the date acupuncture was performed.
   74-3        (c)  The holder of a license may perform acupuncture on a
   74-4  person who was referred by a doctor licensed to practice
   74-5  chiropractic by the Texas Board of Chiropractic Examiners if the
   74-6  licensee commences the treatment within 30 days of the date of the
   74-7  referral.  The licensee shall refer the person to a physician after
   74-8  performing acupuncture 20 times or for 30 days, whichever occurs
   74-9  first, if no substantial improvement occurs in the person's
  74-10  condition for which the referral was made.
  74-11        (d)  The holder of a license must obtain reasonable
  74-12  documentation that the evaluation required by Subsection (b) of
  74-13  this section has taken place.  If the licensee is unable to
  74-14  determine that an evaluation has taken place, the licensee must
  74-15  obtain a written statement signed by the person on a form
  74-16  prescribed by the acupuncture board that states that the person has
  74-17  been evaluated by a physician within the prescribed time frame.
  74-18  The form shall contain a clear statement that the person should be
  74-19  evaluated by a physician for the condition being treated by the
  74-20  licensee.
  74-21        (e)  The medical board with advice from the acupuncture board
  74-22  by rule may modify the requirement of the time frame or the scope
  74-23  of the evaluation under Subsection (b) of this section.
  74-24        (f)  The medical board with advice from the acupuncture board
  74-25  by rule may modify the requirement of the time frame for
  74-26  commencement of treatment after referral by a chiropractor or the
  74-27  number of treatments or days before referral to a physician is
   75-1  required under Subsection (c) of this section.
   75-2        (g)  Notwithstanding Subsections (b) and (c) of this section,
   75-3  an acupuncturist holding a current and valid license may without a
   75-4  referral from a physician, dentist, or chiropractor perform
   75-5  acupuncture on a person for smoking addiction, weight loss, or, as
   75-6  established by the medical board with advice from the acupuncture
   75-7  board by rule, substance abuse.
   75-8        Sec. 6.12.  OFFENSE.  (a)  A person commits an offense if the
   75-9  person violates Section 6.06 of this Act.
  75-10        (b)  An offense under Subsection (a) of this section is a
  75-11  Class A misdemeanor.
  75-12        (c)  Each day of a violation constitutes a separate offense.
  75-13        Sec. 6.13.  INJUNCTIVE RELIEF; CIVIL PENALTY.  (a)  The
  75-14  medical board, the attorney general, or a district or county
  75-15  attorney may bring a civil action to compel compliance with this
  75-16  subchapter or to enforce a rule adopted under this subchapter.
  75-17        (b)  In addition to injunctive relief or any other remedy
  75-18  provided by law, a person who violates this subchapter or a rule
  75-19  adopted under this subchapter is liable to the state for a civil
  75-20  penalty in an amount not to exceed $2,000 for each violation.  Each
  75-21  day a violation continues or occurs is a separate violation for
  75-22  purposes of imposing a civil penalty.  The attorney general, at the
  75-23  request of the medical board or on the attorney general's own
  75-24  initiative, may bring a civil action to collect a civil penalty
  75-25  under this subsection.  A civil penalty recovered shall be
  75-26  deposited to the credit of the general revenue fund.
  75-27        Sec. 6.14.  AUTOMATIC LICENSURE.  (a)  With the approval of
   76-1  the medical board, the acupuncture board shall establish
   76-2  appropriate and reasonable requirements to determine those persons
   76-3  practicing acupuncture on the effective date of this subchapter who
   76-4  are eligible for immediate approval for a license to practice
   76-5  acupuncture under this section.
   76-6        (b)  This section only applies to a person who meets the
   76-7  requirements for immediate licensure under this section and who
   76-8  applies for immediate approval on or before June 1, 1994.
   76-9        (c)  This section expires June 2, 1994.
  76-10        SECTION 37.  (a)  As soon as possible on or after the
  76-11  effective date of this Act, the governor shall appoint 15 new
  76-12  members to the Texas State Board of Medical Examiners in accordance
  76-13  with Section 2.05, Medical Practice Act (Article 4495b, Vernon's
  76-14  Texas Civil Statutes), as amended by this Act.  In making the
  76-15  appointments, the governor shall designate five members for terms
  76-16  expiring April 13, 1995, five members for terms expiring April 13,
  76-17  1997, and five members for terms expiring April 13, 1999.  The
  76-18  members appointed under this subsection may not perform the
  76-19  functions of the board until the day after the date a majority of
  76-20  the new members take office.
  76-21        (b)  Until the date the new members of the Texas State Board
  76-22  of Medical Examiners may begin performing the functions of the
  76-23  board under Subsection (a) of this section, the members serving on
  76-24  the board immediately before the effective date of this Act shall
  76-25  continue to carry out the functions of the board.  On the date the
  76-26  new members may begin performing the functions of the board, the
  76-27  offices of the members serving immediately before the effective
   77-1  date of this Act are abolished.
   77-2        (c)  The changes in law made by this Act in the
   77-3  qualifications of, and the prohibitions applying to, members of the
   77-4  Texas State Board of Medical Examiners do not affect the
   77-5  entitlement of a member serving on the board immediately before the
   77-6  effective date of this Act to continue to carry out the functions
   77-7  of the board for the period prescribed by Subsection (b) of this
   77-8  section.  The changes in law apply only to a member appointed on or
   77-9  after the effective date of this Act.  This Act does not prohibit a
  77-10  person who is a member of the board on the effective date of this
  77-11  Act from being reappointed to the board if the person has the
  77-12  qualifications required for a member under the Medical Practice Act
  77-13  (Article 4495b, Vernon's Texas Civil Statutes), as amended by this
  77-14  Act.
  77-15        (d)  The changes in law made by this Act relating to an
  77-16  administrative penalty or civil penalty apply only to a violation
  77-17  of the Medical Practice Act (Article 4495b, Vernon's Texas Civil
  77-18  Statutes) or a rule or order adopted by the Texas State Board of
  77-19  Medical Examiners that occurs on or after the effective date of
  77-20  this Act.  A violation occurs on or after the effective date of
  77-21  this Act only if each element of the violation occurs on or after
  77-22  that date.  A violation that occurs before the effective date of
  77-23  this Act is governed by the law in effect on the date the violation
  77-24  occurred, and the former law is continued in effect for that
  77-25  purpose.
  77-26        (e)  A person is not required to obtain a license to practice
  77-27  acupuncture under Subchapter F, Medical Practice Act (Article
   78-1  4495b, Vernon's Texas Civil Statutes),  as added by this Act, until
   78-2  June 1, 1994.
   78-3        (f)  The Texas State Board of Medical Examiners shall adopt
   78-4  rules under Subchapter F, Medical Practice Act (Article 4495b,
   78-5  Vernon's Texas Civil Statutes), as added by this Act, not later
   78-6  than February 1, 1994.
   78-7        (g)  Not later than January 1, 1994, the governor shall make
   78-8  initial appointments to the Texas State Board of Acupuncture
   78-9  Examiners and shall designate three members for terms expiring
  78-10  January 31, 1995, three members for terms expiring January 31,
  78-11  1997, and three members for terms expiring January 31, 1999.
  78-12        (h)  Notwithstanding other provisions of this Act, Sections
  78-13  6.06 and 6.12 of the Medical Practice Act (Article 4495b, Vernon's
  78-14  Texas Civil Statutes), as added by this Act, take effect June 1,
  78-15  1994.
  78-16        SECTION 38.  This Act takes effect September 1, 1993.
  78-17        SECTION 39.  The importance of this legislation and the
  78-18  crowded condition of the calendars in both houses create an
  78-19  emergency and an imperative public necessity that the
  78-20  constitutional rule requiring bills to be read on three several
  78-21  days in each house be suspended, and this rule is hereby suspended.