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