By Capelo                                             H.B. No. 3223
         76R6052 JMM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of health services provided by and the
 1-3     scope of practice of advanced practice nurses and  physician
 1-4     assistants.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 241.003, Health and Safety Code, as
 1-7     amended by Chapters 43 and 623, Acts of the 75th Legislature,
 1-8     Regular Session, 1997, is amended to read as follows:
 1-9           Sec. 241.003.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Advanced practice nurse" means a registered nurse
1-11     recognized as an advanced practice nurse by the Board of Nurse
1-12     Examiners.
1-13                 (2)  "Board" means the Texas Board of Health.
1-14                 (3) [(2)]  "Comprehensive medical rehabilitation
1-15     hospital" means a general hospital that specializes in providing
1-16     comprehensive medical  rehabilitation services, including surgery
1-17     and related ancillary services.
1-18                 (4) [(2)]  "Department" means the Texas Department of
1-19     Health.
1-20                 (5) [(3)]  "General hospital" means an establishment
1-21     that:
1-22                       (A)  offers services, facilities, and beds for
1-23     use for more than 24 hours for two or more unrelated individuals
1-24     requiring diagnosis, treatment, or care for illness, injury,
 2-1     deformity, abnormality, or pregnancy; and
 2-2                       (B)  regularly maintains, at a minimum, clinical
 2-3     laboratory services, diagnostic X-ray services, treatment
 2-4     facilities including surgery or obstetrical care or both, and other
 2-5     definitive medical or surgical treatment of similar extent.
 2-6                 (6) [(4)]  "Governmental unit" means a political
 2-7     subdivision of the state, including a hospital district, county, or
 2-8     municipality, and any  department, division, board, or other agency
 2-9     of a political subdivision.
2-10                 (7) [(5)]  "Hospital" includes a general hospital and a
2-11     special hospital.
2-12                 (8) [(6)]  "Medical staff" means a physician or group
2-13     of physicians and a podiatrist or group of podiatrists who by
2-14     action of the governing  body of a hospital are privileged to work
2-15     in and use the facilities of a hospital for or in connection with
2-16     the observation, care, diagnosis, or treatment of an individual who
2-17     is, or may be, suffering from a mental or physical disease or
2-18     disorder or a physical deformity or injury.
2-19                 (9)  "Pediatric and adolescent hospital" means a
2-20     general hospital that specializes in providing services to children
2-21     and adolescents,  including surgery and related ancillary services.
2-22                 (10)  "Person" means an individual, firm, partnership,
2-23     corporation, association, or joint stock company, and includes a
2-24     receiver, trustee,  assignee, or other similar representative of
2-25     those entities.
2-26                 (11)  "Physician" means a physician licensed by the
2-27     Texas State Board of Medical Examiners.
 3-1                 (12)  "Physician assistant" means a physician assistant
 3-2     licensed by the Texas State Board of Physician Assistant Examiners.
 3-3                 (13) [(12)]  "Podiatrist" means a podiatrist licensed
 3-4     by the Texas State Board of Podiatric Medical Examiners.
 3-5                 (14) [(13)]  "Premises" means:
 3-6                       (A)  a single building where inpatients receive
 3-7     hospital services; or
 3-8                       (B)  multiple buildings where inpatients receive
 3-9     hospital services, provided that the following criteria are met:
3-10                             (i)  all inpatient buildings and inpatient
3-11     services are subject to the control and direction of the governing
3-12     body of the hospital;
3-13                             (ii)  all inpatient buildings are within a
3-14     30-mile radius of the main address of the licensee;
3-15                             (iii)  there is integration of the
3-16     organized medical staff of the hospital;
3-17                             (iv)  there is a single chief executive
3-18     officer who reports directly to the governing body and through whom
3-19     all administrative authority flows and who exercises control and
3-20     surveillance over all administrative activities of the hospital;
3-21                             (v)  there is a single chief medical
3-22     officer who reports directly to the governing body and who is
3-23     responsible for all medical staff activities of the hospital; and
3-24                             (vi)  each building that is geographically
3-25     separate from other buildings contains at least one nursing unit
3-26     for inpatients, unless providing only diagnostic or laboratory
3-27     services, or a combination thereof, in the building for hospital
 4-1     inpatients.
 4-2                 (15) [(14)]  "Special hospital" means an establishment
 4-3     that:
 4-4                       (A)  offers services, facilities, and beds for
 4-5     use for more than 24 hours for two or more unrelated individuals
 4-6     who are regularly admitted, treated, and discharged and who require
 4-7     services more intensive than room, board, personal services, and
 4-8     general nursing care;
 4-9                       (B)  has clinical laboratory facilities,
4-10     diagnostic X-ray facilities, treatment facilities, or other
4-11     definitive medical treatment;
4-12                       (C)  has a medical staff in regular attendance;
4-13     and
4-14                       (D)  maintains records of the clinical work
4-15     performed for each patient.
4-16           SECTION 2.  Subchapter E, Chapter 241, Health and Safety
4-17     Code, is amended by adding Section 241.105 to read as follows:
4-18           Sec. 241.105.  HOSPITAL PRIVILEGES FOR ADVANCED PRACTICE
4-19     NURSES AND PHYSICIAN ASSISTANTS.  (a)  The governing body of a
4-20     hospital may establish policies concerning the granting of
4-21     privileges to advanced practice nurses and physician assistants.
4-22     The policies may include the application process, reasonable
4-23     qualifications for privileges, and the process for the renewal,
4-24     modification, or revocation of privileges.
4-25           (b)  If the governing body of a hospital has adopted a policy
4-26     of granting privileges to advanced practice nurses or physician
4-27     assistants, an advanced practice nurse or physician assistant who
 5-1     qualifies for privileges under the policy is entitled to certain
 5-2     procedural rights to provide fairness of process, as determined by
 5-3     the governing body, when an application for privileges is submitted
 5-4     to the hospital.  Any policy adopted must at least specify a
 5-5     reasonable time for processing and considering the application and
 5-6     provide for written notification of the applicant of any final
 5-7     action by the hospital on the application, including a reason for
 5-8     denying or restricting the requested privileges.
 5-9           (c)  A hospital that has granted clinical privileges to an
5-10     advanced practice nurse or physician assistant may not modify or
5-11     revoke the privileges without providing certain procedural rights
5-12     to provide fairness of process to the advanced practice nurse or
5-13     physician assistant as determined by the hospital governing body.
5-14     The hospital must at least provide the advanced practice nurse or
5-15     physician assistant with written reasons for the modification or
5-16     revocation and a means to appeal the decision to an appropriate
5-17     entity within the hospital as determined by the governing body.
5-18           (d)  If a hospital has granted clinical privileges to an
5-19     advanced practice nurse or physician assistant with the condition
5-20     that the advanced practice nurse or physician assistant must have a
5-21     sponsoring or collaborative relationship with a physician and that
5-22     relationship ceases to exist, the advanced practice nurse or
5-23     physician assistant shall provide written notification of that fact
5-24     to the hospital.  On receipt of the notice, the hospital is
5-25     considered to meet its responsibilities under this section by
5-26     notifying the advanced practice nurse or physician assistant in
5-27     writing that the person's clinical privileges at the hospital are
 6-1     revoked.
 6-2           (e)  This section may not be construed as modifying:
 6-3                 (1)  the Medical Practice Act (Article 4495b, Vernon's
 6-4     Texas Civil Statutes);
 6-5                 (2)  the Nursing Practice Act (Article 4513 et seq.,
 6-6     Revised Statutes);
 6-7                 (3)  the Physician Assistant Licensing Act (Article
 6-8     4495b-1, Vernon's Texas Civil Statutes); or
 6-9                 (4)  any other law relating to the scope of practice of
6-10     a physician, advanced practice nurse, or physician assistant.
6-11           SECTION 3.  Subchapter B, Chapter 483, Health and Safety
6-12     Code, is amended by adding Section 483.0225 to read as follows:
6-13           Sec. 483.0225.  COMMUNICATION OF PRESCRIPTIONS OF ADVANCED
6-14     PRACTICE NURSE AND PHYSICIAN ASSISTANT.  A designated agent under
6-15     Section 483.001(4)(A) or (B) may be designated by a practitioner to
6-16     communicate the prescriptions of an advanced practice nurse or
6-17     physician assistant under Section 3.06(d)(5) or (6), Medical
6-18     Practice Act (Article 4495b, Vernon's Texas Civil Statutes).
6-19           SECTION 4.  Section 1, Article 21.52, Insurance Code, is
6-20     amended to read as follows:
6-21           Sec. 1.  DEFINITIONS.  As used in this article:
6-22                 (a)  "health insurance policy" means any individual,
6-23     group, blanket, or franchise insurance policy, insurance agreement,
6-24     or group hospital service contract, providing benefits for medical
6-25     or surgical expenses incurred as a result of an accident or
6-26     sickness;
6-27                 (b)  "doctor of podiatric medicine" includes D.P.M.,
 7-1     podiatrist, doctor of surgical chiropody, D.S.C. and chiropodist;
 7-2                 (c)  "doctor of optometry" includes optometrist, doctor
 7-3     of optometry, and O.D.;
 7-4                 (d)  "doctor of chiropractic" means a person who is
 7-5     licensed by the Texas Board of Chiropractic Examiners to practice
 7-6     chiropractic;
 7-7                 (e)  "licensed dentist" means a person who is licensed
 7-8     to practice dentistry by the State Board of Dental Examiners;
 7-9                 (f)  "licensed audiologist" means a person who has
7-10     received a master's or doctorate degree in audiology from an
7-11     accredited college or university and is licensed as an audiologist
7-12     by the State Board [Committee] of Examiners for Speech-Language
7-13     Pathology and Audiology;
7-14                 (g)  "licensed speech-language pathologist" means a
7-15     person who has received a master's or doctorate degree in
7-16     speech-language pathology from an accredited college or university
7-17     and is licensed as a speech-language pathologist by the State Board
7-18     [Committee] of Examiners for Speech-Language Pathology and
7-19     Audiology;
7-20                 (h)  "licensed master social worker--advanced clinical
7-21     practitioner" means a person who is licensed by the Texas State
7-22     Board of Social Worker Examiners as a licensed master social worker
7-23     with the order of recognition of advanced clinical practitioner;
7-24                 (i)  "licensed dietitian" means a person who is
7-25     licensed by the Texas State Board of Examiners of Dietitians;
7-26                 (j)  "licensed professional counselor" means a person
7-27     who is licensed by the Texas State Board of Examiners of
 8-1     Professional Counselors;
 8-2                 (k)  "psychologist" means a person licensed to practice
 8-3     psychology by the Texas State Board of Examiners of Psychologists;
 8-4                 (l)  "licensed marriage and family therapist" means a
 8-5     person who is licensed by the Texas State Board of Examiners of
 8-6     Marriage and Family Therapists;
 8-7                 (m)  "licensed chemical dependency counselor" means a
 8-8     person who is licensed by the Texas Commission on Alcohol and Drug
 8-9     Abuse;
8-10                 (n)  "licensed hearing aid fitter and dispenser" means
8-11     a person who is licensed by the State Committee [Texas Board] of
8-12     Examiners in the Fitting and Dispensing of Hearing Instruments;
8-13     [Aids]
8-14                 (o)  "licensed psychological associate" means a person
8-15     who is licensed by the Texas State Board of Examiners of
8-16     Psychologists and who practices under the supervision of a licensed
8-17     psychologist;
8-18                 (p)  "occupational therapist" means a person who is
8-19     licensed to practice occupational therapy by the Texas Board of
8-20     Occupational Therapy Examiners; [and]
8-21                 (q)  "physical therapist" means a person who practices
8-22     physical therapy and is licensed by the Texas Board of Physical
8-23     Therapy Examiners;
8-24                 (r)  "advanced practice nurse" means a person licensed
8-25     by the Board of Nurse Examiners and recognized by that board as an
8-26     advanced practice nurse; and
8-27                 (s)  "physician assistant" means a person licensed by
 9-1     the Texas State Board of Physician Assistant Examiners.
 9-2           SECTION 5.  Section 3, Article 21.52, Insurance Code, as
 9-3     amended by Chapter 541, Acts of the 74th Legislature, Regular
 9-4     Session, 1995, and as reenacted and amended by Chapter 946, Acts of
 9-5     the 75th Legislature, Regular Session, 1997, is amended to read as
 9-6     follows:
 9-7           Sec. 3.  SELECTION OF PRACTITIONERS.  (a)  Any person who is
 9-8     issued, who is a party to, or who is a beneficiary under any health
 9-9     insurance policy delivered, renewed, or issued for delivery in this
9-10     state by any insurance company, association, or organization to
9-11     which this article applies may select:
9-12                 (1)  a licensed doctor of podiatric medicine, a
9-13     licensed dentist, or a doctor of chiropractic to perform the
9-14     medical or surgical services or procedures scheduled in the policy
9-15     which fall within the scope of the license of that practitioner;
9-16                 (2)  [,] a licensed doctor of optometry to perform the
9-17     services or procedures scheduled in the policy which fall within
9-18     the scope of the license of that doctor of optometry;
9-19                 (3)  [,] an occupational therapist to provide the
9-20     services scheduled in the policy which fall within the scope of the
9-21     license of that occupational therapist;
9-22                 (4)  [,] a physical therapist to provide the services
9-23     scheduled in the policy which fall within the scope of the license
9-24     of that physical therapist;
9-25                 (5)  [,] a licensed audiologist to measure hearing for
9-26     the purpose of determining the presence or extent of a hearing loss
9-27     and to provide aural rehabilitation services to a person with a
 10-1    hearing loss if those services or procedures are scheduled in the
 10-2    policy;
 10-3                (6)  [,] a licensed speech-language pathologist to
 10-4    evaluate speech and language and to provide habilitative and
 10-5    rehabilitative services to restore speech or language loss or to
 10-6    correct a speech or language impairment if those services or
 10-7    procedures are scheduled in the policy;
 10-8                (7)  [,] a licensed master social worker--advanced
 10-9    clinical practitioner to provide the services that fall within the
10-10    scope of the license of such certified practitioner and which are
10-11    specified as services within the terms of the policy of insurance,
10-12    including the provision of direct, diagnostic, preventive, or
10-13    clinical services to individuals, families, and groups whose
10-14    functioning is threatened or affected by social or psychological
10-15    stress or health impairment, if those services or procedures are
10-16    scheduled in the policy;
10-17                (8)  [,] a licensed dietitian including a provisional
10-18    licensed dietitian under a licensed dietitian's supervision to
10-19    provide the services that fall within the scope of the license of
10-20    that dietitian if those services are scheduled in the policy;
10-21                (9)  [,] a licensed professional counselor to provide
10-22    the services that fall within the scope of the license of that
10-23    professional if those services are scheduled in the policy;
10-24                (10)  [,] a licensed marriage and family therapist to
10-25    provide the services that fall within the scope of the license of
10-26    that professional if those services are scheduled in the policy;
10-27                (11)  [,] a psychologist to perform the services or
 11-1    procedures scheduled in the policy that fall within the scope of
 11-2    the license of that psychologist;
 11-3                (12)  a licensed chemical dependency counselor to
 11-4    perform the services or procedures scheduled in the policy that
 11-5    fall within the scope of the license of that practitioner;
 11-6                (13)  [,] a licensed hearing aid fitter and dispenser
 11-7    to provide the services or procedures scheduled in the policy that
 11-8    fall within the scope of the license of that practitioner;
 11-9                (14)  [, or] a licensed psychological associate to
11-10    provide the services that fall within the scope of the license of
11-11    that professional if those services are scheduled in the policy;
11-12                (15)  an advanced practice nurse to provide the
11-13    services scheduled in the policy that fall within the scope of the
11-14    license of that advanced practice nurse; or
11-15                (16)  a physician assistant to provide the services
11-16    scheduled in the policy that fall within the scope of the license
11-17    of that physician assistant.
11-18          (b)  The services of a licensed master social
11-19    worker--advanced clinical practitioner, licensed professional
11-20    counselor, or licensed marriage and family therapist that are
11-21    included in this Act may require a professional recommendation by a
11-22    doctor of medicine or doctor of osteopathy unless the health
11-23    insurance policy terms do not require such a recommendation.
11-24          (c)  The payment or reimbursement by the insurance company,
11-25    association, or organization for [those] services or procedures in
11-26    accordance with the payment schedule or the payment provisions in
11-27    the policy shall not be denied because the same were performed by a
 12-1    licensed doctor of podiatric medicine, a licensed doctor of
 12-2    optometry, a licensed doctor of chiropractic, a licensed dentist,
 12-3    an occupational therapist, a physical therapist, a licensed
 12-4    audiologist, a licensed speech-language pathologist, a licensed
 12-5    master social worker--advanced clinical practitioner, a licensed
 12-6    dietitian, a licensed professional counselor, a licensed marriage
 12-7    and family therapist, a psychologist, a licensed psychological
 12-8    associate, a licensed chemical dependency counselor, [or] a
 12-9    licensed hearing aid fitter and dispenser, an advanced practice
12-10    nurse, or a physician assistant.
12-11          (d)  There shall not be any classification, differentiation,
12-12    or other discrimination in the payment schedule or the payment
12-13    provisions in a health insurance policy, nor in the amount or
12-14    manner of payment or reimbursement thereunder, between scheduled
12-15    services or procedures when performed by a doctor of podiatric
12-16    medicine, a doctor of optometry, a doctor of chiropractic, a
12-17    licensed dentist, an occupational therapist, a physical therapist,
12-18    a licensed audiologist, a licensed speech-language pathologist, a
12-19    licensed master social worker--advanced clinical practitioner, a
12-20    licensed dietitian, a licensed professional counselor, a licensed
12-21    marriage and family therapist, a psychologist, a licensed
12-22    psychological associate, a licensed chemical dependency counselor,
12-23    [or] a licensed hearing aid fitter and dispenser, an advanced
12-24    practice nurse, or a physician assistant which fall within the
12-25    scope of that practitioner's [his] license or certification and the
12-26    same services or procedures when performed by any other
12-27    practitioner of the healing arts whose services or procedures are
 13-1    covered by the policy.  However, a health insurance policy may
 13-2    provide for a different amount of payment or reimbursement for
 13-3    scheduled services or procedures performed by an advanced practice
 13-4    nurse or physician assistant if the reimbursement methodology used
 13-5    to compute the payment or reimbursement is the same methodology
 13-6    used to compute the payment for performance of the same service or
 13-7    procedure by a physician.
 13-8          (e)  Any provision in a health insurance policy contrary to
 13-9    or in conflict with the provisions of this article shall, to the
13-10    extent of the  conflict, be void, but such invalidity shall not
13-11    affect the validity of the other provisions of this policy.  Any
13-12    presently approved policy form containing any provision in conflict
13-13    with the requirements of this Act shall be brought into compliance
13-14    with this Act by the use of riders and endorsements which have been
13-15    approved by the commissioner [State Board of Insurance] or by the
13-16    filing of new or revised policy forms for approval by the
13-17    commissioner [State Board of Insurance].
13-18          SECTION 6.  Section 33, Texas Pharmacy Act (Article 4542a-1,
13-19    Vernon's Texas Civil Statutes), is amended by adding Subsection (f)
13-20    to read as follows:
13-21          (f)  A designated agent under Section 5(18)(A) or (B) may be
13-22    designated by a practitioner to communicate the prescriptions of an
13-23    advanced practice nurse or physician assistant under Section
13-24    3.06(d)(5) or (6), Medical Practice Act (Article 4495b, Vernon's
13-25    Texas Civil Statutes).
13-26          SECTION 7.  Section 31, Chapter 1036, Acts of the 62nd
13-27    Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
 14-1    Civil Statutes), is amended to read as follows:
 14-2          Sec. 31.  HEALTH CERTIFICATE.  (a)  Every applicant for an
 14-3    original or renewal operator license, instructor license,
 14-4    reciprocal license, or specialty certificate must submit a
 14-5    certificate of health signed by a licensed physician, advanced
 14-6    practice nurse, or licensed physician assistant, showing that the
 14-7    applicant is  free, as determined by an examination, from
 14-8    tuberculosis, hepatitis, or a contagious disease for which the
 14-9    applicant is not entitled to protection under the Americans with
14-10    Disabilities Act (42 U.S.C. Section 12101 et seq.).
14-11          (b)  Any physician, advanced practice nurse, or physician
14-12    assistant who signs a health certificate required by Subsection (a)
14-13    of this section showing the applicant to be free from a disease
14-14    covered by that subsection without having made the physical
14-15    examination is guilty of a misdemeanor, and on conviction may be
14-16    fined not less than $50 or more than $200.
14-17          SECTION 8.  Section 3, Article 21.52, Insurance Code, as
14-18    amended by Chapter 429, Acts of the 74th Legislature, Regular
14-19    Session, 1995, and as reenacted and amended by Chapter 946, Acts of
14-20    the 75th Legislature, Regular Session, 1997, is repealed.
14-21          SECTION 9.  This Act takes effect September 1, 1999, and
14-22    applies only to a health insurance policy that is delivered, issued
14-23    for delivery, or renewed on or after January 1, 2000.  A health
14-24    insurance policy that is delivered, issued for delivery, or renewed
14-25    before January 1, 2000, is governed by the law as it existed
14-26    immediately before the effective date of this Act, and that law is
14-27    continued in effect for that purpose.
 15-1          SECTION 10.  The importance of this legislation and the
 15-2    crowded condition of the calendars in both houses create an
 15-3    emergency and an imperative public necessity that the
 15-4    constitutional rule requiring bills to be read on three several
 15-5    days in each house be suspended, and this rule is hereby suspended.