By:  Madla                                            S.B. No. 1131
         99S0695/1                           
                                A BILL TO BE ENTITLED
                                       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 of
2-10     physicians and a podiatrist or a group of podiatrists who by action
2-11     of the governing body of a hospital are privileged to work in and
2-12     use the facilities of a hospital for or in connection with the
2-13     observation, care, diagnosis, or treatment of an individual who is,
2-14     or may be, suffering from a mental or physical disease or disorder
2-15     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           SECTION 3.  Section 33, Texas Pharmacy Act (Article 4542a-1,
6-15     Vernon's Texas Civil Statutes), is amended by adding Subsection (f)
6-16     to read as follows:
6-17           (f)  A person who qualifies as a practitioner's designated
6-18     agent under Section 5(18)(A) or (B) of this Act may be designated
6-19     by the practitioner to communicate prescriptions of an advanced
6-20     practice nurse or physician assistant authorized by the
6-21     practitioner to sign prescription drug orders under Section
6-22     3.06(d)(5) or (6), Medical Practice Act (Article 4495b, Vernon's
6-23     Texas Civil Statutes).
6-24           SECTION 4.  Section 483.022, Health and Safety Code, is
6-25     amended by adding Subsection (f) to read as follows:
6-26           (f)  A practitioner may designate a person who qualifies as a
 7-1     designated agent of the practitioner under Section 483.001(4)(A) or
 7-2     (B) to communicate prescriptions of an advanced practice nurse or
 7-3     physician assistant authorized by the practitioner to sign
 7-4     prescription drug orders under Section 3.06(d)(5) or (6), Medical
 7-5     Practice Act (Article 4495b, Vernon's Texas Civil Statutes).
 7-6           SECTION 5.  Section 31, Chapter 1036, Acts of the 62nd
 7-7     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
 7-8     Civil Statutes), is amended to read as follows:
 7-9           Sec. 31.  Health Certificate.  (a)  Every applicant for an
7-10     original or renewal operator license, instructor license,
7-11     reciprocal license, or specialty certificate must submit a
7-12     certificate of health signed by a licensed physician, licensed
7-13     advanced practice nurse, or licensed physician assistant, showing
7-14     that the applicant is free, as determined by an examination, from
7-15     tuberculosis, hepatitis, or a contagious disease for which the
7-16     applicant is not entitled to protection under the Americans with
7-17     Disabilities Act (42 U.S.C. Section 12101 et seq.).
7-18           (b)  Any physician, advanced practice nurse, or physician
7-19     assistant who signs a health certificate required by Subsection (a)
7-20     of this section showing the applicant to be free from a disease
7-21     covered by that subsection without having made the physical
7-22     examination is guilty of a misdemeanor, and on conviction may be
7-23     fined not less than $50 or more than $200.
7-24           SECTION 6.  Section 1, Article 21.52, Insurance Code, is
7-25     amended to read as follows:
7-26           Sec. 1.  DEFINITIONS.  As used in this article:
 8-1           (a)  "health insurance policy" means any individual, group,
 8-2     blanket, or franchise insurance policy, insurance agreement, or
 8-3     group hospital service contract, providing benefits for medical or
 8-4     surgical expenses incurred as a result of an accident or sickness;
 8-5           (b)  "doctor of podiatric medicine" includes D.P.M.,
 8-6     podiatrist, doctor of surgical chiropody, D.S.C. and chiropodist;
 8-7           (c)  "doctor of optometry" includes optometrist, doctor of
 8-8     optometry, and O.D.;
 8-9           (d)  "doctor of chiropractic" means a person who is licensed
8-10     by the Texas Board of Chiropractic Examiners to practice
8-11     chiropractic;
8-12           (e)  "licensed dentist" means a person who is licensed to
8-13     practice dentistry by the State Board of Dental Examiners;
8-14           (f)  "licensed audiologist" means a person who has received a
8-15     master's or doctorate degree in audiology from an accredited
8-16     college or university and is licensed as an audiologist by the
8-17     State Committee of Examiners for Speech-Language Pathology and
8-18     Audiology;
8-19           (g)  "licensed speech-language pathologist" means a person
8-20     who has received a master's or doctorate degree in speech-language
8-21     pathology from an accredited college or university and is licensed
8-22     as a speech-language pathologist by the State Committee of
8-23     Examiners for Speech-Language Pathology and Audiology;
8-24           (h)  "licensed master social worker--advanced clinical
8-25     practitioner" means a person who is licensed by the Texas State
8-26     Board of Social Worker Examiners as a licensed master social worker
 9-1     with the order of recognition of advanced clinical practitioner;
 9-2           (i)  "licensed dietitian" means a person who is licensed by
 9-3     the Texas State Board of Examiners of Dietitians;
 9-4           (j)  "licensed professional counselor" means a person who is
 9-5     licensed by the Texas State Board of Examiners of Professional
 9-6     Counselors;
 9-7           (k)  "psychologist" means a person licensed to practice
 9-8     psychology by the Texas State Board of Examiners of Psychologists;
 9-9           (l)  "licensed marriage and family therapist" means a person
9-10     who is licensed by the Texas State Board of Examiners of Marriage
9-11     and Family Therapists;
9-12           (m)  "licensed chemical dependency counselor" means a person
9-13     who is licensed by the Texas Commission on Alcohol and Drug Abuse;
9-14           (n)  "licensed hearing aid fitter and dispenser" means a
9-15     person who is licensed by the Texas Board of Examiners in the
9-16     Fitting and Dispensing of Hearing Aids
9-17           (o)  "licensed psychological associate" means a person who is
9-18     licensed by the Texas State Board of Examiners of Psychologists and
9-19     who practices under the supervision of a licensed psychologist;
9-20           (p)  "occupational therapist" means a person who is licensed
9-21     to practice occupational therapy by the Texas Board of Occupational
9-22     Therapy Examiners; [and]
9-23           (q)  "physical therapist" means a person who practices
9-24     physical therapy and is licensed by the Texas Board of Physical
9-25     Therapy Examiners;
9-26           (r)  "advanced practice nurse" means a person licensed by the
 10-1    Board of Nurse Examiners and recognized by that board as an
 10-2    advanced practice nurse; and
 10-3          (s)  "physician assistant" means a person licensed by the
 10-4    Texas State Board of Physician Assistant Examiners.
 10-5          SECTION 7.  Section 3, Article 21.52, Insurance Code, as
 10-6    amended by Chapter 429, Acts of the 74th Legislature, Regular
 10-7    Session, 1995, Chapter 541, Acts of the 74th Legislature, Regular
 10-8    Session, 1995, and Chapter 946, Acts of the 75th Legislature,
 10-9    Regular Session, 1997, is conformed and amended to read as follows:
10-10          Sec. 3.  Selection of practitioners.  Any person who is
10-11    issued, who is a party to, or who is a beneficiary under any health
10-12    insurance policy delivered, renewed, or issued for delivery in this
10-13    state by any insurance company, association, or organization to
10-14    which this article applies may select a licensed doctor of
10-15    podiatric medicine, a licensed dentist, or a doctor of chiropractic
10-16    to perform the medical or surgical services or procedures scheduled
10-17    in the policy which fall within the scope of the license of that
10-18    practitioner, a licensed doctor of optometry to perform the
10-19    services or procedures scheduled in the policy which fall within
10-20    the scope of the license of that doctor of optometry, an
10-21    occupational therapist to provide the health care services
10-22    scheduled in the policy which fall within the scope of the license
10-23    of that occupational therapist, a physical therapist to provide the
10-24    health care services scheduled in the policy which fall within the
10-25    scope of the license of that physical therapist, a licensed
10-26    audiologist to measure hearing for the purpose of determining the
 11-1    presence or extent of a hearing loss and to provide aural
 11-2    rehabilitation services to a person with a hearing loss if those
 11-3    services or procedures are scheduled in the policy, a licensed
 11-4    speech-language pathologist to evaluate speech and language and to
 11-5    provide habilitative and rehabilitative services to restore speech
 11-6    or language loss or to correct a speech or language impairment if
 11-7    those services or procedures are scheduled in the policy, a
 11-8    licensed master social worker--advanced clinical practitioner to
 11-9    provide the services that fall within the scope of the license of
11-10    such certified practitioner and which are specified as services
11-11    within the terms of the policy of insurance, including the
11-12    provision of direct, diagnostic, preventive, or clinical services
11-13    to individuals, families, and groups whose functioning is
11-14    threatened or affected by social or psychological stress or health
11-15    impairment, if those services or procedures are scheduled in the
11-16    policy, a licensed dietitian including a provisional licensed
11-17    dietitian under a licensed dietitian's supervision to provide the
11-18    services that fall within the scope of the license of that
11-19    dietitian if those services are scheduled in the policy, a licensed
11-20    professional counselor to provide the services that fall within the
11-21    scope of the license of that professional if those services are
11-22    scheduled in the policy, a licensed marriage and family therapist
11-23    to provide the services that fall within the scope of the license
11-24    of that professional if those services are scheduled in the policy,
11-25    a psychologist to perform the services or procedures scheduled in
11-26    the policy that fall within the scope of the license of that
 12-1    psychologist, a licensed chemical dependency counselor to perform
 12-2    the services or procedures scheduled in the policy that fall within
 12-3    the scope of the license of that practitioner, an advanced practice
 12-4    nurse to provide the services scheduled in the policy that fall
 12-5    within the scope of the license of that practitioner, a physician
 12-6    assistant to provide the services scheduled in the policy that fall
 12-7    within the scope of the license of that practitioner, a licensed
 12-8    hearing aid fitter and dispenser to provide the services or
 12-9    procedures scheduled in the policy that fall within the scope of
12-10    the license of that practitioner, or a licensed psychological
12-11    associate to provide the services that fall within the scope of the
12-12    license of that professional if those services are scheduled in the
12-13    policy.  The services of a licensed master social worker--advanced
12-14    clinical practitioner, licensed professional counselor, or licensed
12-15    marriage and family therapist that are included in this Act may
12-16    require a professional recommendation by a doctor of medicine or
12-17    doctor of osteopathy unless the health insurance policy terms do
12-18    not require such a recommendation.  The payment or reimbursement by
12-19    the insurance company, association, or organization for those
12-20    services or procedures in accordance with the payment schedule or
12-21    the payment provisions in the policy shall not be denied because
12-22    the same were performed by a licensed doctor of podiatric medicine,
12-23    a licensed doctor of optometry, a licensed doctor of chiropractic,
12-24    a licensed dentist, an occupational therapist, a physical
12-25    therapist, a licensed audiologist, a licensed speech-language
12-26    pathologist, a licensed master social worker--advanced clinical
 13-1    practitioner, a licensed dietitian, a licensed professional
 13-2    counselor, a licensed marriage and family therapist, a
 13-3    psychologist, a licensed psychological associate, a licensed
 13-4    chemical dependency counselor, an advanced practice nurse, a
 13-5    physician assistant, or a licensed hearing aid fitter and
 13-6    dispenser.  There shall not be any classification, differentiation,
 13-7    or other discrimination in the payment schedule or the payment
 13-8    provisions in a health insurance policy, nor in the amount or
 13-9    manner of payment or reimbursement thereunder, between scheduled
13-10    services or procedures when performed by a doctor of podiatric
13-11    medicine, a doctor of optometry, a doctor of chiropractic, a
13-12    licensed dentist, an occupational therapist, a physical therapist,
13-13    a licensed audiologist, a licensed speech-language pathologist, a
13-14    licensed master social worker--advanced clinical practitioner, a
13-15    licensed dietitian, a licensed professional counselor, a licensed
13-16    marriage and family therapist, a psychologist, a licensed
13-17    psychological associate, a licensed chemical dependency counselor,
13-18    an advanced practice nurse to provide the services scheduled in the
13-19    policy, a physician assistant to provide the services scheduled in
13-20    the policy, or a licensed hearing aid fitter and dispenser which
13-21    fall within the scope of the license or certification and the same
13-22    services or procedures when performed by any other practitioner of
13-23    the healing arts whose services or procedures are covered by the
13-24    policy.  However, a health insurance policy may provide for a
13-25    different amount of payment or reimbursement for scheduled services
13-26    or procedures when performed by an advanced practice nurse or
 14-1    physician assistant provided the reimbursement methodology used to
 14-2    calculate the payment for the service or procedure is the same
 14-3    methodology used to calculate the payment when the service or
 14-4    procedure is provided by a physician.  Any provision in a health
 14-5    insurance policy contrary to or in conflict with the provisions of
 14-6    this article shall, to the extent of the conflict, be void, but
 14-7    such invalidity shall not affect the validity of the other
 14-8    provisions of this policy.  Any presently approved policy form
 14-9    containing any provision in conflict with the requirements of this
14-10    Act shall be brought into compliance with this Act by the use of
14-11    riders and endorsements which have been approved by the State Board
14-12    of Insurance or by the filing of new or revised policy forms for
14-13    approval by the State Board of Insurance.
14-14          SECTION 8.  This Act takes effect September 1, 1999.
14-15          SECTION 9.  The importance of this legislation and the
14-16    crowded condition of the calendars in both houses create an
14-17    emergency and an imperative public necessity that the
14-18    constitutional rule requiring bills to be read on three several
14-19    days in each house be suspended, and this rule is hereby suspended.