AN ACT
 1-1     relating to advanced practice nurses and physician assistants;
 1-2     providing penalties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 241.003, Health and Safety Code, is
 1-5     amended to read as follows:
 1-6           Sec. 241.003.  Definitions.  In this chapter:
 1-7                 (1)  "Advanced practice nurse" means a registered nurse
 1-8     recognized as an advanced practice nurse by the Board of Nurse
 1-9     Examiners.
1-10                 (2)  "Board" means the Texas Board of Health.
1-11                 (3) [(2)]  "Comprehensive medical rehabilitation
1-12     hospital" means a general hospital that specializes in providing
1-13     comprehensive medical rehabilitation services, including surgery
1-14     and related ancillary services.
1-15                 (4) [(2)]  "Department" means the Texas Department of
1-16     Health.
1-17                 (5) [(3)]  "General hospital" means an establishment
1-18     that:
1-19                       (A)  offers services, facilities, and beds for
1-20     use for more than 24 hours for two or more unrelated individuals
1-21     requiring diagnosis, treatment, or care for illness, injury,
1-22     deformity, abnormality, or pregnancy; and
1-23                       (B)  regularly maintains, at a minimum, clinical
1-24     laboratory services, diagnostic X-ray services, treatment
 2-1     facilities including surgery or obstetrical care or both, and other
 2-2     definitive medical or surgical treatment of similar extent.
 2-3                 (6) [(4)]  "Governmental unit" means a political
 2-4     subdivision of the state, including a hospital district, county, or
 2-5     municipality, and any department, division, board, or other agency
 2-6     of a political subdivision.
 2-7                 (7) [(5)]  "Hospital" includes a general hospital and a
 2-8     special hospital.
 2-9                 (8) [(6)]  "Medical staff" means a physician or group
2-10     of physicians and a podiatrist or a group of podiatrists who by
2-11     action of the governing body of a hospital are privileged to work
2-12     in and use the facilities of a hospital for or in connection with
2-13     the observation, care, diagnosis, or treatment of an individual who
2-14     is, or may be, suffering from a mental or physical disease or
2-15     disorder or a physical deformity or injury.
2-16                 (9)  "Pediatric and adolescent hospital" means a
2-17     general hospital that specializes in providing services to children
2-18     and adolescents, including surgery and related ancillary services.
2-19                 (10)  "Person" means an individual, firm, partnership,
2-20     corporation, association, or joint stock company, and includes a
2-21     receiver, trustee, assignee, or other similar representative of
2-22     those entities.
2-23                 (11)  "Physician" means a physician licensed by the
2-24     Texas State Board of Medical Examiners.
2-25                 (12)  "Physician assistant" means a physician assistant
2-26     licensed by the Texas State Board of Physician Assistant Examiners.
 3-1                 (13) [(12)]  "Podiatrist" means a podiatrist licensed
 3-2     by the Texas State Board of Podiatric Medical Examiners.
 3-3                 (14) [(13)]  "Premises" means:
 3-4                       (A)  a single building where inpatients receive
 3-5     hospital services; or
 3-6                       (B)  multiple buildings where inpatients receive
 3-7     hospital services, provided that the following criteria are met:
 3-8                             (i)  all inpatient buildings and inpatient
 3-9     services are subject to the control and direction of the governing
3-10     body of the hospital;
3-11                             (ii)  all inpatient buildings are within a
3-12     30-mile radius of the main address of the licensee;
3-13                             (iii)  there is integration of the
3-14     organized medical staff of the hospital;
3-15                             (iv)  there is a single chief executive
3-16     officer who reports directly to the governing body and through whom
3-17     all administrative authority flows and who exercises control and
3-18     surveillance over all administrative activities of the hospital;
3-19                             (v)  there is a single chief medical
3-20     officer who reports directly to the governing body and who is
3-21     responsible for all medical staff activities of the hospital; and
3-22                             (vi)  each building that is geographically
3-23     separate from other buildings contains at least one nursing unit
3-24     for inpatients, unless providing only diagnostic or laboratory
3-25     services, or a combination thereof, in the building for hospital
3-26     inpatients.
 4-1                 (15) [(14)]  "Special hospital" means an establishment
 4-2     that:
 4-3                       (A)  offers services, facilities, and beds for
 4-4     use for more than 24 hours for two or more unrelated individuals
 4-5     who are regularly admitted, treated, and discharged and who require
 4-6     services more intensive than room, board, personal services, and
 4-7     general nursing care;
 4-8                       (B)  has clinical laboratory facilities,
 4-9     diagnostic X-ray facilities, treatment facilities, or other
4-10     definitive medical treatment;
4-11                       (C)  has a medical staff in regular attendance;
4-12     and
4-13                       (D)  maintains records of the clinical work
4-14     performed for each patient.
4-15           SECTION 2.  Subchapter E, Chapter 241, Health and Safety
4-16     Code, is amended by adding Section 241.105 to read as follows:
4-17           Sec. 241.105.  HOSPITAL PRIVILEGES FOR ADVANCED PRACTICE
4-18     NURSES AND PHYSICIAN ASSISTANTS.  (a)  The governing body of a
4-19     hospital is authorized to establish policies concerning the
4-20     granting of clinical privileges to advanced practice nurses and
4-21     physician assistants, including policies relating to the
4-22     application process, reasonable qualifications for privileges, and
4-23     the process for renewal, modification, or revocation of privileges.
4-24           (b)  If the governing body of a hospital has adopted a policy
4-25     of granting clinical privileges to advanced practice nurses or
4-26     physician assistants, an individual advanced practice nurse or
 5-1     physician assistant who qualifies for privileges under that policy
 5-2     shall be entitled to certain procedural rights to provide fairness
 5-3     of process, as determined by the governing body of the hospital,
 5-4     when an application for privileges is submitted to the hospital.
 5-5     At a minimum, any policy adopted shall specify a reasonable period
 5-6     for the processing and consideration of the application and shall
 5-7     provide for written notification to the applicant of any final
 5-8     action on the application by the hospital, including any reason for
 5-9     denial or restriction of the privileges requested.
5-10           (c)  If an advanced practice nurse or physician assistant has
5-11     been granted clinical privileges by a hospital, the hospital may
5-12     not modify or revoke those privileges without providing certain
5-13     procedural rights to provide fairness of process, as determined by
5-14     the governing body of the hospital, to the advanced practice nurse
5-15     or physician assistant.  At a minimum, the hospital shall provide
5-16     the advanced practice nurse or physician assistant written reasons
5-17     for the modification or revocation of privileges and a mechanism
5-18     for appeal to the appropriate committee or body within the
5-19     hospital, as determined by the governing body of the hospital.
5-20           (d)  If a hospital extends clinical privileges to an advanced
5-21     practice nurse or physician assistant conditioned on the advanced
5-22     practice nurse or physician assistant having a sponsoring or
5-23     collaborating relationship with a physician and that relationship
5-24     ceases to exist, the advanced practice nurse or physician assistant
5-25     and the physician shall provide written notification to the
5-26     hospital that the relationship no longer exists.  Once the hospital
 6-1     receives such notice from an advanced practice nurse or physician
 6-2     assistant and the physician, the hospital shall be deemed to have
 6-3     met its obligations under this section by notifying the advanced
 6-4     practice nurse or physician assistant in writing that the advanced
 6-5     practice nurse's or physician assistant's clinical privileges no
 6-6     longer exist at that hospital.
 6-7           (e)  Nothing in this section shall be construed as modifying
 6-8     the Medical Practice Act (Article 4495b, Vernon's Texas Civil
 6-9     Statutes), the Nursing Practice Act (Articles 4513-4528, Revised
6-10     Statutes), the Physician Assistant Licensing Act (Article 4495b-1,
6-11     Vernon's Texas Civil Statutes), or any other law relating to the
6-12     scope of practice of physicians, advanced practice nurses, or
6-13     physician assistants.
6-14           (f)  This section does not apply to an employer-employee
6-15     relationship between an advanced practice nurse or physician
6-16     assistant and a hospital.
6-17           SECTION 3.  Section 33, Texas Pharmacy Act (Article 4542a-1,
6-18     Vernon's Texas Civil Statutes), is amended by adding Subsection (f)
6-19     to read as follows:
6-20           (f)  A person who is a licensed vocational nurse or has an
6-21     education equivalent to or greater than that required for a
6-22     licensed vocational nurse may be designated by the practitioner to
6-23     communicate prescriptions of an advanced practice nurse or
6-24     physician assistant authorized by the practitioner to sign
6-25     prescription drug orders under Section 3.06(d)(5) or (6), Medical
6-26     Practice Act (Article 4495b, Vernon's Texas Civil Statutes).
 7-1           SECTION 4.  Section 483.022, Health and Safety Code, is
 7-2     amended by adding Subsection (f) to read as follows:
 7-3           (f)  A practitioner may designate a person who is a licensed
 7-4     vocational nurse or has an education equivalent to or greater than
 7-5     that required for a licensed vocational nurse to communicate
 7-6     prescriptions of an advanced practice nurse or physician assistant
 7-7     authorized by the practitioner to sign prescription drug orders
 7-8     under Section 3.06(d)(5) or (6), Medical Practice Act (Article
 7-9     4495b, Vernon's Texas Civil Statutes).
7-10           SECTION 5.  Section 31, Chapter 1036, Acts of the 62nd
7-11     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
7-12     Civil Statutes), is amended to read as follows:
7-13           Sec. 31.  Health Certificate.  (a)  Every applicant for an
7-14     original or renewal operator license, instructor license,
7-15     reciprocal license, or specialty certificate must submit a
7-16     certificate of health signed by a licensed physician, licensed
7-17     advanced practice nurse, or licensed physician assistant, showing
7-18     that the applicant is free, as determined by an examination, from
7-19     tuberculosis, hepatitis, or a contagious disease for which the
7-20     applicant is not entitled to protection under the Americans with
7-21     Disabilities Act (42 U.S.C. Section 12101 et seq.).
7-22           (b)  Any physician, advanced practice nurse, or physician
7-23     assistant who signs a health certificate required by Subsection (a)
7-24     of this section showing the applicant to be free from a disease
7-25     covered by that subsection without having made the physical
7-26     examination is guilty of a misdemeanor, and on conviction may be
 8-1     fined not less than $50 or more than $200.
 8-2           SECTION 6.  Section 8, Article 4514, Revised Statutes, is
 8-3     amended by adding Subsection (c) to read as follows:
 8-4           (c)  An advanced practice nurse's signature attesting to the
 8-5     provision of a service the advanced practice nurse is legally
 8-6     authorized to provide shall satisfy any documentation requirement
 8-7     for that service established by a state agency.
 8-8           SECTION 7.  Section 12, Physician Assistant Licensing Act
 8-9     (Article 4495b-1, Vernon's Texas Civil Statutes), is amended by
8-10     adding Subsection (d) to read as follows:
8-11           (d)  A physician assistant's signature attesting to the
8-12     provision of a service the physician assistant is legally
8-13     authorized to provide shall satisfy any documentation requirement
8-14     for that service established by a state agency.
8-15           SECTION 8.  Section 1, Article 21.52, Insurance Code, is
8-16     amended to read as follows:
8-17           Sec. 1.  DEFINITIONS.  As used in this article:
8-18           (a)  "health insurance policy" means any individual, group,
8-19     blanket, or franchise insurance policy, insurance agreement, or
8-20     group hospital service contract, providing benefits for medical or
8-21     surgical expenses incurred as a result of an accident or sickness;
8-22           (b)  "doctor of podiatric medicine" includes D.P.M.,
8-23     podiatrist, doctor of surgical chiropody, D.S.C. and chiropodist;
8-24           (c)  "doctor of optometry" includes optometrist, doctor of
8-25     optometry, and O.D.;
8-26           (d)  "doctor of chiropractic" means a person who is licensed
 9-1     by the Texas Board of Chiropractic Examiners to practice
 9-2     chiropractic;
 9-3           (e)  "licensed dentist" means a person who is licensed to
 9-4     practice dentistry by the State Board of Dental Examiners;
 9-5           (f)  "licensed audiologist" means a person who has received a
 9-6     master's or doctorate degree in audiology from an accredited
 9-7     college or university and is licensed as an audiologist by the
 9-8     State Committee of Examiners for Speech-Language Pathology and
 9-9     Audiology;
9-10           (g)  "licensed speech-language pathologist" means a person
9-11     who has received a master's or doctorate degree in speech-language
9-12     pathology from an accredited college or university and is licensed
9-13     as a speech-language pathologist by the State Committee of
9-14     Examiners for Speech-Language Pathology and Audiology;
9-15           (h)  "licensed master social worker--advanced clinical
9-16     practitioner" means a person who is licensed by the Texas State
9-17     Board of Social Worker Examiners as a licensed master social worker
9-18     with the order of recognition of advanced clinical practitioner;
9-19           (i)  "licensed dietitian" means a person who is licensed by
9-20     the Texas State Board of Examiners of Dietitians;
9-21           (j)  "licensed professional counselor" means a person who is
9-22     licensed by the Texas State Board of Examiners of Professional
9-23     Counselors;
9-24           (k)  "psychologist" means a person licensed to practice
9-25     psychology by the Texas State Board of Examiners of Psychologists;
9-26           (l)  "licensed marriage and family therapist" means a person
 10-1    who is licensed by the Texas State Board of Examiners of Marriage
 10-2    and Family Therapists;
 10-3          (m)  "licensed chemical dependency counselor" means a person
 10-4    who is licensed by the Texas Commission on Alcohol and Drug Abuse;
 10-5          (n)  "licensed hearing aid fitter and dispenser" means a
 10-6    person who is licensed by the Texas Board of Examiners in the
 10-7    Fitting and Dispensing of Hearing Aids;
 10-8          (o)  "licensed psychological associate" means a person who is
 10-9    licensed by the Texas State Board of Examiners of Psychologists and
10-10    who practices under the supervision of a licensed psychologist;
10-11          (p)  "occupational therapist" means a person who is licensed
10-12    to practice occupational therapy by the Texas Board of Occupational
10-13    Therapy Examiners; [and]
10-14          (q)  "physical therapist" means a person who practices
10-15    physical therapy and is licensed by the Texas Board of Physical
10-16    Therapy Examiners;
10-17          (r)  "advanced practice nurse" means a person licensed by the
10-18    Board of Nurse Examiners and recognized by that board as an
10-19    advanced practice nurse; and
10-20          (s)  "physician assistant" means a person licensed by the
10-21    Texas State Board of Physician Assistant Examiners.
10-22          SECTION 9.  Section 3, Article 21.52, Insurance Code, as
10-23    amended by Chapter 541, Acts of the 74th Legislature, Regular
10-24    Session, 1995, and as reenacted and amended by Chapter 946, Acts of
10-25    the 75th Legislature, Regular Session, 1997, is amended to read as
10-26    follows:
 11-1          Sec. 3.  Selection of practitioners.  (a)  Any person who is
 11-2    issued, who is a party to, or who is a beneficiary under any health
 11-3    insurance policy delivered, renewed, or issued for delivery in this
 11-4    state by any insurance company, association, or organization to
 11-5    which this article applies may select:
 11-6                (1)  a licensed doctor of podiatric medicine, a
 11-7    licensed dentist, or a doctor of chiropractic to perform the
 11-8    medical or surgical services or procedures scheduled in the policy
 11-9    which fall within the scope of the license of that practitioner;
11-10                (2)  [,] a licensed doctor of optometry to perform the
11-11    services or procedures scheduled in the policy which fall within
11-12    the scope of the license of that doctor of optometry;
11-13                (3)  [,] an occupational therapist to provide the
11-14    services scheduled in the policy which fall within the scope of the
11-15    license of that occupational therapist;
11-16                (4)  [,] a physical therapist to provide the services
11-17    scheduled in the policy which fall within the scope of the license
11-18    of that physical therapist;
11-19                (5)  [,] a licensed audiologist to measure hearing for
11-20    the purpose of determining the presence or extent of a hearing loss
11-21    and to provide aural rehabilitation services to a person with a
11-22    hearing loss if those services or procedures are scheduled in the
11-23    policy;
11-24                (6)  [,] a licensed speech-language pathologist to
11-25    evaluate speech and language and to provide habilitative and
11-26    rehabilitative services to restore speech or language loss or to
 12-1    correct a speech or language impairment if those services or
 12-2    procedures are scheduled in the policy;
 12-3                (7)  [,] a licensed master social worker--advanced
 12-4    clinical practitioner to provide the services that fall within the
 12-5    scope of the license of such certified practitioner and which are
 12-6    specified as services within the terms of the policy of insurance,
 12-7    including the provision of direct, diagnostic, preventive, or
 12-8    clinical services to individuals, families, and groups whose
 12-9    functioning is threatened or affected by social or psychological
12-10    stress or health impairment, if those services or procedures are
12-11    scheduled in the policy;
12-12                (8)  [,] a licensed dietitian including a provisional
12-13    licensed dietitian under a licensed dietitian's supervision to
12-14    provide the services that fall within the scope of the license of
12-15    that dietitian if those services are scheduled in the policy;
12-16                (9)  [,] a licensed professional counselor to provide
12-17    the services that fall within the scope of the license of that
12-18    professional if those services are scheduled in the policy;
12-19                (10)  [,] a licensed marriage and family therapist to
12-20    provide the services that fall within the scope of the license of
12-21    that professional if those services are scheduled in the policy;
12-22                (11)  [,] a psychologist to perform the services or
12-23    procedures scheduled in the policy that fall within the scope of
12-24    the license of that psychologist;
12-25                (12)  a licensed chemical dependency counselor to
12-26    perform the services or procedures scheduled in the policy that
 13-1    fall within the scope of the license of that practitioner;
 13-2                (13)  an advanced practice nurse to provide the
 13-3    services scheduled in the policy that fall within the scope of the
 13-4    license of that practitioner;
 13-5                (14)  a physician assistant to provide the services
 13-6    scheduled in the policy that fall within the scope of the license
 13-7    of that practitioner;
 13-8                (15)  [,] a licensed hearing aid fitter and dispenser
 13-9    to provide the services or procedures scheduled in the policy that
13-10    fall within the scope of the license of that practitioner;[,] or
13-11                (16)  a licensed psychological associate to provide the
13-12    services that fall within the scope of the license of that
13-13    professional if those services are scheduled in the policy.
13-14          (b)  The services of a licensed master social
13-15    worker--advanced clinical practitioner, licensed professional
13-16    counselor, or licensed marriage and family therapist that are
13-17    included in this Act may require a professional recommendation by a
13-18    doctor of medicine or doctor of osteopathy unless the health
13-19    insurance policy terms do not require such a recommendation.
13-20          (c)  The payment or reimbursement by the insurance company,
13-21    association, or organization for [those] services or procedures in
13-22    accordance with the payment schedule or the payment provisions in
13-23    the policy shall not be denied because the same were performed by a
13-24    licensed doctor of podiatric medicine, a licensed doctor of
13-25    optometry, a licensed doctor of chiropractic, a licensed dentist,
13-26    an occupational therapist, a physical therapist, a licensed
 14-1    audiologist, a licensed speech-language pathologist, a licensed
 14-2    master social worker--advanced clinical practitioner, a licensed
 14-3    dietitian, a licensed professional counselor, a licensed marriage
 14-4    and family therapist, a psychologist, a licensed psychological
 14-5    associate, a licensed chemical dependency counselor, an advanced
 14-6    practice nurse, a physician assistant, or a licensed hearing aid
 14-7    fitter and dispenser.
 14-8          (d)  There shall not be any classification, differentiation,
 14-9    or other discrimination in the payment schedule or the payment
14-10    provisions in a health insurance policy, nor in the amount or
14-11    manner of payment or reimbursement thereunder, between scheduled
14-12    services or procedures when performed by a doctor of podiatric
14-13    medicine, a doctor of optometry, a doctor of chiropractic, a
14-14    licensed dentist, an occupational therapist, a physical therapist,
14-15    a licensed audiologist, a licensed speech-language pathologist, a
14-16    licensed master social worker--advanced clinical practitioner, a
14-17    licensed dietitian, a licensed professional counselor, a licensed
14-18    marriage and family therapist, a psychologist, a licensed
14-19    psychological associate, a licensed chemical dependency counselor,
14-20    an advanced practice nurse to provide the services scheduled in the
14-21    policy, a physician assistant to provide the services scheduled in
14-22    the policy, or a licensed hearing aid fitter and dispenser which
14-23    fall within the scope of that practitioner's [his] license or
14-24    certification and the same services or procedures when performed by
14-25    any other practitioner of the healing arts whose services or
14-26    procedures are covered by the policy.  However, a health insurance
 15-1    policy may provide for a different amount of payment or
 15-2    reimbursement for scheduled services or procedures when performed
 15-3    by an advanced practice nurse or physician assistant provided the
 15-4    reimbursement methodology used to calculate the payment for the
 15-5    service or procedure is the same methodology used to calculate the
 15-6    payment when the service or procedure is provided by a physician.
 15-7          (e)  Any provision in a health insurance policy contrary to
 15-8    or in conflict with the provisions of this article shall, to the
 15-9    extent of the conflict, be void, but such invalidity shall not
15-10    affect the validity of the other provisions of this policy.  Any
15-11    presently approved policy form containing any provision in conflict
15-12    with the requirements of this Act shall be brought into compliance
15-13    with this Act by the use of riders and endorsements which have been
15-14    approved by the commissioner [State Board of Insurance] or by the
15-15    filing of new or revised policy forms for approval by the
15-16    commissioner [State Board of Insurance].
15-17          SECTION 10.  Section 3, Article 21.52, Insurance Code, as
15-18    amended by Chapter 429, Acts of the 74th Legislature, Regular
15-19    Session, 1995, and as reenacted and amended by Chapter 946, Acts of
15-20    the 75th Legislature, Regular Session, 1997, is repealed.
15-21          SECTION 11.  This Act takes effect September 1, 1999.
15-22          SECTION 12.  The importance of this legislation and the
15-23    crowded condition of the calendars in both houses create an
15-24    emergency and an imperative public necessity that the
15-25    constitutional rule requiring bills to be read on three several
15-26    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. 1131 passed the Senate on
         April 9, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 28, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1131 passed the House, with
         amendment, on May 25, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor