AN ACT

 1-1     relating to licensing regulations for physician assistants and

 1-2     acupuncturists; providing an administrative penalty.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (h), Section 4, Physician Assistant

 1-5     Licensing Act (Article 4495b-1, Vernon's Texas Civil Statutes), is

 1-6     amended to read as follows:

 1-7           (h)  The board is subject to the open meetings law, Chapter

 1-8     551, Government Code, and its subsequent amendments, and Chapter

 1-9     2001, Government Code (Administrative Procedure Act), and its

1-10     subsequent amendments except as provided by this Act.

1-11           SECTION 2.  Section 7, Physician Assistant Licensing Act

1-12     (Article 4495b-1, Vernon's Texas Civil Statutes), is amended to

1-13     read as follows:

1-14           Sec. 7.  LICENSURE QUALIFICATIONS.  The board shall issue a

1-15     license under this Act to an applicant who:

1-16                 (1)  submits an application on a form prescribed by the

1-17     board;

1-18                 (2)  pays the application fee as prescribed by the

1-19     board;

1-20                 (3)  has successfully completed an educational program

1-21     for physician assistants or surgeon assistants accredited by the

1-22     Committee on Allied Health Education and Accreditation or by that

1-23     committee's predecessor or successor entities, [and] has passed the

 2-1     Physician Assistant National Certifying Examination administered by

 2-2     the National Commission on Certification of Physician Assistants,

 2-3     and holds a valid certificate issued by the National Commission on

 2-4     Certification of Physician Assistants;

 2-5                 (4)  certifies that the applicant is mentally and

 2-6     physically able to function safely as a physician assistant;

 2-7                 (5)  does not have a license, certification, or

 2-8     registration as a physician assistant in this state or from any

 2-9     other licensing authority that is currently revoked or suspended or

2-10     the applicant is not subject to probation or other disciplinary

2-11     action for cause resulting from the applicant's acts as a physician

2-12     assistant, unless the board takes that fact into consideration in

2-13     determining whether to issue the license;

2-14                 (6)  is of good moral character;

2-15                 (7)  submits to the board any other information the

2-16     board considers necessary to evaluate the applicant's

2-17     qualifications; and

2-18                 (8)  meets any other requirement established by rules

2-19     adopted by the board.

2-20           SECTION 3.  The Physician Assistant Licensing Act (Article

2-21     4495b-1, Vernon's Texas Civil Statutes) is amended by amending

2-22     Sections 18 and 19 and adding Section 19.125 to read as follows:

2-23           Sec. 18.  Disciplinary Proceedings.  The board may refuse to

2-24     issue a license to any person and may take disciplinary action

2-25     against any[, publicly or privately reprimand a license holder, or

 3-1     suspend, revoke, or place other restrictions on a license of a]

 3-2     person who:

 3-3                 (1)  fraudulently or deceptively obtains or attempts to

 3-4     obtain a license;

 3-5                 (2)  fraudulently or deceptively uses a license;

 3-6                 (3)  violates any provision of this Act or any rule

 3-7     adopted under this Act;

 3-8                 (4)  is convicted of a felony or has imposition of

 3-9     deferred adjudication or pretrial diversion;

3-10                 (5)  habitually uses [is a habitual user of intoxicants

3-11     or nontherapeutic] drugs or intoxicating liquors to the extent

3-12     that, in the opinion of the board, the person cannot safely perform

3-13     as a physician assistant;

3-14                 (6)  has been adjudicated as mentally incompetent or

3-15     has a mental or physical condition that renders the person unable

3-16     to safely perform as a physician assistant;

3-17                 (7)  has committed an act of moral turpitude;

3-18                 (8)  represents that the person is a physician;

3-19                 (9)  has acted in an unprofessional or dishonorable

3-20     manner which is likely to deceive, defraud, or injure any member of

3-21     the public;

3-22                 (10)  has failed to practice as a physician assistant

3-23     in an acceptable manner consistent with public health and welfare;

3-24                 (11)  has committed any act that is in violation of the

3-25     laws of the State of Texas if the act is connected with practice as

 4-1     a physician assistant; a complaint, indictment, or conviction of a

 4-2     law violation is not necessary for the enforcement of this

 4-3     provision; proof of the commission of the act while in practice as

 4-4     a physician assistant or under the guise of practice as a physician

 4-5     assistant is sufficient for action by the board under this section;

 4-6     [or]

 4-7                 (12)  has had the person's license or other

 4-8     authorization to practice as a physician assistant suspended,

 4-9     revoked, or restricted or who has had other disciplinary action

4-10     taken by another state regarding practice as a physician assistant

4-11     or had disciplinary action taken by the uniformed services of the

4-12     United States.  A[, based on acts by the licensee similar to acts

4-13     described in this section; a] certified copy of the record of the

4-14     state or uniformed services of the United States taking the action

4-15     is conclusive evidence of it;

4-16                 (13)  fails to keep complete and accurate records of

4-17     purchases and disposals of drugs listed in Chapter 483, Health and

4-18     Safety Code, as required by Chapter 483, Health and Safety Code, or

4-19     any subsequent rules.  A failure to keep the records for a

4-20     reasonable time is grounds for disciplinary action against the

4-21     license of a physician assistant.  The board or its representative

4-22     may enter and inspect a physician assistant's place or places of

4-23     practice during reasonable business hours for the purpose of

4-24     verifying the correctness of these records and of taking inventory

4-25     of the drugs on hand;

 5-1                 (14)  writes a false or fictitious prescription for a

 5-2     dangerous drug as defined by Chapter 483, Health and Safety Code;

 5-3                 (15)  prescribes, dispenses, or administers a drug or

 5-4     treatment that is nontherapeutic in nature or nontherapeutic in the

 5-5     manner the drug or treatment is prescribed, dispensed, or

 5-6     administered;

 5-7                 (16)  unlawfully advertises in a false, misleading, or

 5-8     deceptive manner.  Advertisements shall be defined as false,

 5-9     misleading, or deceptive consistent with Section 4, Article 4512p,

5-10     Revised Statutes;

5-11                 (17)  alters, with fraudulent intent, any physician

5-12     assistant license, certificate, or diploma;

5-13                 (18)  uses any physician assistant license,

5-14     certificate, or diploma that has been fraudulently purchased,

5-15     issued, or counterfeited or that has been materially altered;

5-16                 (19)  aids or abets, directly or indirectly, the

5-17     practice as a physician assistant by any person not duly licensed

5-18     to practice as a physician assistant by the board;

5-19                 (20)  is removed or suspended or has disciplinary

5-20     action taken by his peers in any professional association or

5-21     society, whether the association or society is local, regional,

5-22     state, or national in scope, or is being disciplined by a licensed

5-23     hospital or medical staff of a hospital, including removal,

5-24     suspension, limitation of privileges, or other disciplinary action,

5-25     if that action, in the opinion of the board, was based on

 6-1     unprofessional conduct or professional incompetence that was likely

 6-2     to harm the public.  This action does not constitute state action

 6-3     on the part of the association, society, or hospital medical staff;

 6-4                 (21)  has repeated or recurring meritorious health care

 6-5     liability claims that in the opinion of the board evidence

 6-6     professional incompetence likely to harm the public; or

 6-7                 (22)  through his practice as a physician assistant,

 6-8     sexually abuses or exploits another person.

 6-9           Sec. 19.  [ADDITIONAL] DISCIPLINARY AUTHORITY.  Except as

6-10     provided in Section 20 of this Act, if the board finds any person

6-11     to have committed any of the acts set forth [In addition to the

6-12     authority under Section 18 of this Act, the board may, on finding

6-13     that a physician assistant has committed an offense described] in

6-14     Section 18 of this Act, it shall enter an order imposing one or

6-15     more of the following:

6-16                 (1)  deny the person's application for a license or

6-17     other authorization to practice as a physician assistant;

6-18                 (2)  assess an administrative penalty against the

6-19     person as provided by Section 19.125 of this Act;

6-20                 (3)  administer a public reprimand;

6-21                 (4)  suspend, limit, or restrict the person's license

6-22     or other authorization to practice as a physician assistant,

6-23     including limiting the practice of the person to, or excluding from

6-24     the practice, one or more specified activities of the practice as a

6-25     physician assistant or stipulating periodic board review;

 7-1                 (5)  revoke the person's license or other authorization

 7-2     to practice as a physician assistant;

 7-3                 (6)  require a physician assistant to submit to the

 7-4     care, counseling, or treatment of a health care practitioner

 7-5     designated by the board;

 7-6                 (7) [(2)]  stay enforcement of an order and place the

 7-7     physician assistant on probation with the board retaining the right

 7-8     to vacate the probationary stay and enforce the original order for

 7-9     noncompliance with the terms of probation or impose any other

7-10     remedial measures or sanctions authorized by this section;

7-11                 (8) [(3)]  restore or reissue a license or remove any

7-12     disciplinary or corrective measure that the board may have imposed;

7-13                 (9) [(4)]  order the physician assistant to perform

7-14     public service; or

7-15                 (10) [(5)]  require the physician assistant to complete

7-16     additional training.

7-17           Sec. 19.125.  ADMINISTRATIVE PENALTY.  (a)  The board by

7-18     order may impose an administrative penalty against a person

7-19     licensed or regulated under this Act who violates this Act or a

7-20     rule or order adopted under this Act.

7-21           (b)  The penalty for a violation may be in an amount not to

7-22     exceed $5,000.  Each day a violation continues or occurs is a

7-23     separate violation for purposes of imposing a penalty.

7-24           (c)  The amount of the penalty shall be based on:

7-25                 (1)  patient harm and the severity of patient harm;

 8-1                 (2)  economic harm to any individual or entity and the

 8-2     severity of such harm;

 8-3                 (3)  environmental harm and severity of such harm;

 8-4                 (4)  increased potential for harm to the public;

 8-5                 (5)  attempted concealment of misconduct;

 8-6                 (6)  premeditated misconduct;

 8-7                 (7)  intentional misconduct;

 8-8                 (8)  motive;

 8-9                 (9)  prior misconduct of a similar or related nature;

8-10                 (10)  disciplinary history;

8-11                 (11)  prior written warnings or written admonishments

8-12     from any government agency or official regarding statutes or

8-13     regulations pertaining to the misconduct;

8-14                 (12)  violation of a board order;

8-15                 (13)  failure to implement remedial measures to correct

8-16     or mitigate harm from the misconduct;

8-17                 (14)  lack of rehabilitative potential or likelihood of

8-18     future misconduct of a similar nature;

8-19                 (15)  relevant circumstances increasing the seriousness

8-20     of the misconduct; and

8-21                 (16)  any other matter that justice may require.

8-22           (d)  The board by rule shall prescribe the procedure by which

8-23     it may impose an administrative penalty.

8-24           (e)  All proceedings under this section are subject to

8-25     Chapter 2001, Government Code.

 9-1           (f)  If the board by order finds that a violation has

 9-2     occurred and imposes an administrative penalty, the board shall

 9-3     give notice to the person of the board's order.  The notice must

 9-4     include a statement of the right of the person to judicial review

 9-5     of the order.

 9-6           SECTION 4.  Section 28, Physician Assistant Licensing Act

 9-7     (Article 4495b-1, Vernon's Texas Civil Statutes), is amended to

 9-8     read as follows:

 9-9           Sec. 28.  IMMUNITY AND REPORTING REQUIREMENTS.  (a)  A

9-10     person, health care entity, medical peer review committee, or other

9-11     entity that without malice furnishes records, information, or

9-12     assistance to the board is immune from any civil liability arising

9-13     from such act.

9-14           (b)  Any medical peer review committee in this state, any

9-15     physician assistant licensed to practice in this state, any

9-16     physician assistant student, or any physician licensed to practice

9-17     medicine or otherwise lawfully practicing medicine in this state

9-18     shall report relevant information to the board related to the acts

9-19     of any physician assistant in this state if, in the opinion of the

9-20     medical peer review committee, physician assistant, physician

9-21     assistant student, or physician, a physician assistant poses a

9-22     continuing threat to the public welfare through his practice as a

9-23     physician assistant.  The duty to report under this section shall

9-24     not be nullified through contract.

9-25           SECTION 5.  Subsections (b), (d), (f), (i), (k), and (r),

 10-1    Section 5.06, Medical Practice Act (Article 4495b, Vernon's Texas

 10-2    Civil Statutes), are amended to read as follows:

 10-3          (b)  Each medical peer review committee or health-care entity

 10-4    shall report in writing to the board the results and circumstances

 10-5    of any professional review action that adversely affects the

 10-6    clinical privileges of a physician, physician assistant, or

 10-7    acupuncturist for a period longer than 30 days, accepts the

 10-8    surrender of clinical privileges of a physician, physician

 10-9    assistant, or acupuncturist while the physician, physician

10-10    assistant, or acupuncturist is under an investigation by the

10-11    medical peer review committee relating to possible incompetence or

10-12    improper professional conduct, or in return for not conducting such

10-13    an investigation or proceeding, or in the case of an entity which

10-14    is a professional society or association, takes a professional

10-15    review action which adversely affects the membership of a

10-16    physician, physician assistant, or acupuncturist in the society or

10-17    association.  The duty to report under this section shall not be

10-18    nullified through contract.

10-19          (d)  Any medical peer review committee in this state, any

10-20    physician licensed to practice medicine or otherwise lawfully

10-21    practicing medicine in this state, any physician engaged in

10-22    graduate medical education or training, [or] any medical student,

10-23    any physician assistant licensed to practice in this state or

10-24    otherwise lawfully practicing as a physician assistant in this

10-25    state, any physician assistant student, any acupuncturist licensed

 11-1    to practice in this state or otherwise lawfully practicing

 11-2    acupuncture in this state, or any acupuncture student shall report

 11-3    relevant information to the board relating to the acts of any

 11-4    physician, physician assistant, or acupuncturist in this state if,

 11-5    in the opinion of the medical peer review committee, physician,

 11-6    [or] medical student, physician assistant, physician assistant

 11-7    student, acupuncturist, or acupuncture student, the physician,

 11-8    physician assistant, or acupuncturist poses a continuing threat to

 11-9    the public welfare through the practice of medicine or acupuncture

11-10    or practice as a physician assistant.  The duty to report under

11-11    this section shall not be nullified through contract.

11-12          (f)  The filing of a report with the board pursuant to this

11-13    section, investigation by the board, or any disposition by the

11-14    board does not, in itself, preclude any action by a health-care

11-15    entity to suspend, restrict, or revoke the privileges or membership

11-16    of the physician, physician assistant, or acupuncturist.

11-17          (i)  Disclosure of confidential peer review committee

11-18    information to the affected physician, physician assistant, or

11-19    acupuncturist pertinent to the matter under review shall not

11-20    constitute waiver of the confidentiality provisions provided in

11-21    this Act.  If a medical peer review committee takes action that

11-22    could result in censure, suspension, restriction, limitation,

11-23    revocation, or denial of membership or privileges in a health-care

11-24    entity, the affected physician, physician assistant, or

11-25    acupuncturist shall be provided a written copy of the

 12-1    recommendation of the medical peer review committee and a copy of

 12-2    the final decision, including a statement of the basis for the

 12-3    decision.

 12-4          (k)  Governing bodies and medical staffs of health-care

 12-5    entities and others shall comply fully with a subpoena for

 12-6    documents or information issued by the board under Subsection (i)

 12-7    of Section 2.09 of this Act or Subsection (a), Section 27,

 12-8    Physician Assistant Licensing Act (Article 4495b-1, Vernon's Texas

 12-9    Civil Statutes).  The disclosure of documents or information under

12-10    such a subpoena does not constitute a waiver of the privilege

12-11    associated with medical peer review committee proceedings.  Failure

12-12    to comply with such a subpoena constitutes grounds for disciplinary

12-13    action against the facility or individual by the appropriate

12-14    licensing board.

12-15          (r)  If a court of competent jurisdiction makes a final

12-16    determination that a report or complaint made to the board was made

12-17    in bad faith, then such complaint shall be expunged from the

12-18    physician's, physician assistant's, acupuncturist's, or applicant's

12-19    individual historical record.

12-20          SECTION 6.  Subdivisions (1) and (2), Subsection (s), Section

12-21    5.06, Medical Practice Act (Article 4495b, Vernon's Texas Civil

12-22    Statutes), are amended to read as follows:

12-23          (s)(1)  Reports, information, or records received and

12-24    maintained by the board pursuant to this section and Section 5.05

12-25    of this Act, including any material received or developed by the

 13-1    board during an investigation or hearing, are strictly confidential

 13-2    and subject to the provisions of Subdivision (4) of this

 13-3    subsection.  However, the board may disclose this confidential

 13-4    information only:

 13-5                      (A)  in a disciplinary hearing before the board

 13-6    or in a subsequent trial or appeal of a board action or order;

 13-7                      (B)  to the physician, physician assistant, or

 13-8    acupuncture licensing or disciplinary authorities of other

 13-9    jurisdictions, to a local, state, or national professional medical,

13-10    physician assistant, or acupuncture society or association, or to a

13-11    medical, physician assistant, or acupuncture peer review committee

13-12    located inside or outside this state that is concerned with

13-13    granting, limiting, or denying a physician, physician assistant, or

13-14    acupuncturist hospital privileges;

13-15                      (C)  pursuant to an order of a court of competent

13-16    jurisdiction; or

13-17                      (D)  to qualified personnel for bona fide

13-18    research or educational purposes, if personally identifiable

13-19    information relating to any person or physician is first deleted.

13-20                (2)  Disciplinary orders of the board against a

13-21    physician, physician assistant, or acupuncturist and known hospital

13-22    suspensions for 30 days or longer of a physician, physician

13-23    assistant, or acupuncturist relating to the competence of a

13-24    physician, physician assistant, or acupuncturist are not

13-25    confidential.

 14-1          SECTION 7.  This Act takes effect September 1, 1997.

 14-2          SECTION 8.  The importance of this legislation and the

 14-3    crowded condition of the calendars in both houses create an

 14-4    emergency and an imperative public necessity that the

 14-5    constitutional rule requiring bills to be read on three several

 14-6    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1566 passed the Senate on

         April 28, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendment on May 26, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1566 passed the House, with

         amendment, on May 23, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor