BILL ANALYSIS C.S.H.B. 1604 By: Glaze 04-19-95 Committee Report (Substituted) BACKGROUND The Texas Department of Health (TDH) regulates the state's emergency medical services (EMS) providers and has identified several provisions in the EMS Act that are in need of updating. Currently, EMS providers are required to secure a surety bond or purchase and maintain contractual liability insurance before creating and operating a subscription program. The purpose is to insure that subscribers get their money back if the EMS provider goes bankrupt, leaves the service area, loses its license or otherwise discontinues service. It has since been learned that there is no contractual liability insurance that will protect the subscribers by reimbursing their money in cases of provider default; this protection can be provided, however, with surety bonds or self-insurance. In 1991, the EMS Act was amended to allow for the licensing of EMS providers (ambulance services or firms). Prior to that, the TDH permitted individual vehicles only. References in the Act need to be changed to be consistent with the concept of total provider management, since the agency's responsibilities have extended beyond regulation of ambulances, or vehicles. All EMS courses are conducted by certified course coordinators. Presently, the TDH's only option in sanctioning coordinators is to suspend or revoke their certification. There are occasions when an infraction cannot be overlooked, but is not severe enough to warrant such serious action. The option of assessing an administrative penalty would address this concern. A provision requiring a hospital-based EMS provider to transport patients to the hospital nearest the patient's location was enacted in 1983. This section is in direct conflict with federal law that states that an ambulance owned by a hospital is an extension of that facility and to take a patient to another facility prior to medical assessment would constitute patient dumping. More importantly, the current provision specifies facility designation without regard to patient needs and regional triage patterns based on appropriateness of care. PURPOSE H.B. 1604 as substituted removes the existing requirement for EMS providers to purchase and maintain contractual liability insurance before operating a subscription program; updates terms by replacing all references to EMS "vehicle" with "provider;" establishes fees for certain applications; subjects course coordinators to administrative penalties; replaces existing language relating to administrative penalties with updated language; and repeals specific provisions relating to transportation of patients, notice of rule changes and refund of administrative penalties. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 773.003(11), Health and Safety Code, by adding the use of medical equipment to the existing definition of "emergency medical services provider." SECTION 2. Amends Section 773.011(c) and (d), Health and Safety Code, by removing the requirement for an EMS provider to purchase and maintain contractual liability insurance before creating and operating a subscription program. SECTION 3. Amends Section 773.042, Health and Safety Code, by changing existing references from "vehicle" to "provider" and adding "personnel" to the qualifications to be a basic life-support EMS provider. SECTION 4. Amends Section 773.043, Health and Safety Code, by changing existing references from "vehicle" to "provider" and adding "personnel" to the qualifications to be an advanced life-support EMS provider. SECTION 5. Amends Section 773.044, Health and Safety Code, by changing existing references from "vehicle" to "provider" and adding "personnel" to the qualifications to be a mobile intensive-care provider. SECTION 6. Amends Section 773.045, Health and Safety Code, by changing existing references from "vehicle" to "provider" and adding "personnel" to the qualifications to be a specialized EMS provider. SECTION 7. Amends Section 773.050(b)(c) and (d), Health and Safety Code, as follows: (b) Requires the Board to establish minimum standards in the areas outlined in this section. (c) Specifies that a $100 nonrefundable fee must accompany each out-of-state application for certification; allows the Board to establish criteria for out-of-country EMS personnel certification and specifies that such applications must be accompanied by a $150 nonrefundable fee. (d) Modifies definitions in existing provision regarding rules affecting advanced life- support or staffing. SECTION 8. Amends Section 773.051, Health and Safety Code, by removing reference to "staffing or equipping" standards and changing "vehicle" to "provider." SECTION 9. Amends Section 773.054, Health and Safety Code, by amending Subsection (c) and adding Subsection (d) as follows: (c) Adds a requirement for a $50 nonrefundable fee to be submitted with certification applications from course coordinators. (d) Adds a provision specifying that applications for approval of a course or training program must be submitted with a $25 nonrefundable fee for a basic course or program or $50 for an advanced course or program; prohibits the TDH from requiring a fee for approval of a course or program for which a course coordinator or sponsoring agency is not compensated. SECTION 10. Amends Section 773.055(a), Health and Safety Code, by deleting the phrase "examination for certification of" from existing provision relating to fees for personnel certification. SECTION 11. Amends Section 773.056(b), Health and Safety Code, by requiring the TDH to charge a $5 fee for replacement of lost or stolen certificates. SECTION 12. Amends Sections 773.057(b) and (c), Health and Safety Code, as follows: (b) Requires a nonrefundable fee not exceeding $150 for each EMS vehicle to be determined by the Board and to be submitted with each application. Deletes the language setting a $2,000 fee for a fleet of EMS vehicles. (c) Clarifies that the TDH may delegate vehicle inspections to local governments. SECTION 13. Amends Section 773.0571, Health and Safety Code, by modifying the section title and deleting reference to "conducting an inspection." SECTION 14. Amends Section 773.0572, Health and Safety Code, by adding a declaration that a $25 nonrefundable fee must be submitted with each application for a provisional license. SECTION 15. Amends Section 773.0611(c), Health and Safety Code, by adding the requirement that an EMS provider pay a $25 nonrefundable fee if reinspection is necessary to determine compliance with applicable laws and rules. SECTION 16. Amends Section 773.065, Health and Safety Code, by applying the TDH's existing administrative penalty authority to course coordinators. SECTION 17. Amends Section 773.066, Health and Safety Code, by adding course coordinators to existing provisions regarding administrative penalties. SECTION 18. Amends Section 773.067, Health and Safety Code, as follows: (a) Requires course coordinators, as well as EMS providers, within 30 days after an order of a penalty is final as provided by Chapter 2001, Government Code, to pay the penalty in full, pay the penalty and file a petition for judicial review of all or parts of the charge, or file a petition for judicial review without paying the penalty. (b) Specifies conditions under which a person who declines to pay the penalty and files for judicial review may stay enforcement of the penalty or request the court to do so. (c) Permits the Commissioner of Health, within five days after receiving a copy of an affidavit, to file a contest to the affidavit with the court; requires the court to hold a hearing on the facts alleged in the affidavit as soon as practicable and to stay the enforcement of the penalty upon finding that the alleged facts are true; declares that the person who files the affidavit has the burden of proving financial inability to pay the penalty and to give a supersedeas bond. (d) Authorizes the commissioner to refer the matter to the attorney general if the penalty is not paid and enforcement of the penalty is not stayed. (e) Clarifies that judicial review of the commissioner's order is instituted by filing a petition under Subchapter G, Chapter 2001, Government Code and is under the substantial evidence rule. (f) Authorizes the court to uphold or reduce the penalty amount and order the person to pay accordingly, or the court shall order that no penalty is owed, depending upon the court's decision as to the occurrence of the violation. (g) Sets forth procedures under which the court shall act, upon final judgment, relating to payment of the penalty, plus interest, or release of the supersedeas bond; deletes existing language relating to payment of administrative penalties. SECTION 19. Repeals Section 773.010, Health and Safety Code, requiring a hospital-based EMS provider to transport certain patients to the hospital nearest the patient's location; Section 773.053, Health and Safety Code, relating to notice of rule changes, and Section 773.068, Health and Safety Code, relating to refund of administrative penalties. SECTION 20. Emergency clause. Effective immediately. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute for H.B. 1604 deletes Section 7(b)(8) of the original bill, which required the Board to establish, by rule, minimum standards for the scope of practice of emergency medical service personnel. The substitute also amends the language in Section 12 of the bill to permit the Board to set the amount of a fee for vehicle licensure up to a maximum of $150, deleting the language that set an exact fee of $150 in the statute. SUMMARY OF COMMITTEE ACTION H.B. 1604 was considered by the Public Health Committee in a public hearing on April 19, 1995. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed by a record vote of 8 AYES, 0 NAYS, 0 PNV, 1 ABSENT.