1-1     By:  Madla                                            S.B. No. 1131
 1-2           (In the Senate - Filed March 10, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on Health Services;
 1-4     April 6, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 4, Nays 0; April 6, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1131                   By:  Madla
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to advanced practice nurses and physician assistants;
1-11     providing penalties.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 241.003, Health and Safety Code, is
1-14     amended to read as follows:
1-15           Sec. 241.003.  Definitions.  In this chapter:
1-16                 (1)  "Advanced practice nurse" means a registered nurse
1-17     recognized as an advanced practice nurse by the Board of Nurse
1-18     Examiners.
1-19                 (2)  "Board" means the Texas Board of Health.
1-20                 (3) [(2)]  "Comprehensive medical rehabilitation
1-21     hospital" means a general hospital that specializes in providing
1-22     comprehensive medical rehabilitation services, including surgery
1-23     and related ancillary services.
1-24                 (4) [(2)]  "Department" means the Texas Department of
1-25     Health.
1-26                 (5) [(3)]  "General hospital" means an establishment
1-27     that:
1-28                       (A)  offers services, facilities, and beds for
1-29     use for more than 24 hours for two or more unrelated individuals
1-30     requiring diagnosis, treatment, or care for illness, injury,
1-31     deformity, abnormality, or pregnancy; and
1-32                       (B)  regularly maintains, at a minimum, clinical
1-33     laboratory services, diagnostic X-ray services, treatment
1-34     facilities including surgery or obstetrical care or both, and other
1-35     definitive medical or surgical treatment of similar extent.
1-36                 (6) [(4)]  "Governmental unit" means a political
1-37     subdivision of the state, including a hospital district, county, or
1-38     municipality, and any department, division, board, or other agency
1-39     of a political subdivision.
1-40                 (7) [(5)]  "Hospital" includes a general hospital and a
1-41     special hospital.
1-42                 (8) [(6)]  "Medical staff" means a physician or group
1-43     of physicians and a podiatrist or a group of podiatrists who by
1-44     action of the governing body of a hospital are privileged to work
1-45     in and use the facilities of a hospital for or in connection with
1-46     the observation, care, diagnosis, or treatment of an individual who
1-47     is, or may be, suffering from a mental or physical disease or
1-48     disorder or a physical deformity or injury.
1-49                 (9)  "Pediatric and adolescent hospital" means a
1-50     general hospital that specializes in providing services to children
1-51     and adolescents, including surgery and related ancillary services.
1-52                 (10)  "Person" means an individual, firm, partnership,
1-53     corporation, association, or joint stock company, and includes a
1-54     receiver, trustee, assignee, or other similar representative of
1-55     those entities.
1-56                 (11)  "Physician" means a physician licensed by the
1-57     Texas State Board of Medical Examiners.
1-58                 (12)  "Physician assistant" means a physician assistant
1-59     licensed by the Texas State Board of Physician Assistant Examiners.
1-60                 (13) [(12)]  "Podiatrist" means a podiatrist licensed
1-61     by the Texas State Board of Podiatric Medical Examiners.
1-62                 (14) [(13)]  "Premises" means:
1-63                       (A)  a single building where inpatients receive
1-64     hospital services; or
 2-1                       (B)  multiple buildings where inpatients receive
 2-2     hospital services, provided that the following criteria are met:
 2-3                             (i)  all inpatient buildings and inpatient
 2-4     services are subject to the control and direction of the governing
 2-5     body of the hospital;
 2-6                             (ii)  all inpatient buildings are within a
 2-7     30-mile radius of the main address of the licensee;
 2-8                             (iii)  there is integration of the
 2-9     organized medical staff of the hospital;
2-10                             (iv)  there is a single chief executive
2-11     officer who reports directly to the governing body and through whom
2-12     all administrative authority flows and who exercises control and
2-13     surveillance over all administrative activities of the hospital;
2-14                             (v)  there is a single chief medical
2-15     officer who reports directly to the governing body and who is
2-16     responsible for all medical staff activities of the hospital; and
2-17                             (vi)  each building that is geographically
2-18     separate from other buildings contains at least one nursing unit
2-19     for inpatients, unless providing only diagnostic or laboratory
2-20     services, or a combination thereof, in the building for hospital
2-21     inpatients.
2-22                 (15) [(14)]  "Special hospital" means an establishment
2-23     that:
2-24                       (A)  offers services, facilities, and beds for
2-25     use for more than 24 hours for two or more unrelated individuals
2-26     who are regularly admitted, treated, and discharged and who require
2-27     services more intensive than room, board, personal services, and
2-28     general nursing care;
2-29                       (B)  has clinical laboratory facilities,
2-30     diagnostic X-ray facilities, treatment facilities, or other
2-31     definitive medical treatment;
2-32                       (C)  has a medical staff in regular attendance;
2-33     and
2-34                       (D)  maintains records of the clinical work
2-35     performed for each patient.
2-36           SECTION 2.  Subchapter E, Chapter 241, Health and Safety
2-37     Code, is amended by adding Section 241.105 to read as follows:
2-38           Sec. 241.105.  HOSPITAL PRIVILEGES FOR ADVANCED PRACTICE
2-39     NURSES AND PHYSICIAN ASSISTANTS.  (a)  The governing body of a
2-40     hospital is authorized to establish policies concerning the
2-41     granting of clinical privileges to advanced practice nurses and
2-42     physician assistants, including policies relating to the
2-43     application process, reasonable qualifications for privileges, and
2-44     the process for renewal, modification, or revocation of privileges.
2-45           (b)  If the governing body of a hospital has adopted a policy
2-46     of granting clinical privileges to advanced practice nurses or
2-47     physician assistants, an individual advanced practice nurse or
2-48     physician assistant who qualifies for privileges under that policy
2-49     shall be entitled to certain procedural rights to provide fairness
2-50     of process, as determined by the governing body of the hospital,
2-51     when an application for privileges is submitted to the hospital.
2-52     At a minimum, any policy adopted shall specify a reasonable period
2-53     for the processing and consideration of the application and shall
2-54     provide for written notification to the applicant of any final
2-55     action on the application by the hospital, including any reason for
2-56     denial or restriction of the privileges requested.
2-57           (c)  If an advanced practice nurse or physician assistant has
2-58     been granted clinical privileges by a hospital, the hospital may
2-59     not modify or revoke those privileges without providing certain
2-60     procedural rights to provide fairness of process, as determined by
2-61     the governing body of the hospital, to the advanced practice nurse
2-62     or physician assistant.  At a minimum, the hospital shall provide
2-63     the advanced practice nurse or physician assistant written reasons
2-64     for the modification or revocation of privileges and a mechanism
2-65     for appeal to the appropriate committee or body within the
2-66     hospital, as determined by the governing body of the hospital.
2-67           (d)  If a hospital extends clinical privileges to an advanced
2-68     practice nurse or physician assistant conditioned on the advanced
2-69     practice nurse or physician assistant having a sponsoring or
 3-1     collaborating relationship with a physician and that relationship
 3-2     ceases to exist, the advanced practice nurse or physician assistant
 3-3     and the physician shall provide written notification to the
 3-4     hospital that the relationship no longer exists.  Once the hospital
 3-5     receives such notice from an advanced practice nurse or physician
 3-6     assistant and the physician, the hospital shall be deemed to have
 3-7     met its obligations under this section by notifying the advanced
 3-8     practice nurse or physician assistant in writing that the advanced
 3-9     practice nurse's or physician assistant's clinical privileges no
3-10     longer exist at that hospital.
3-11           (e)  Nothing in this section shall be construed as modifying
3-12     the Medical Practice Act (Article 4495b, Vernon's Texas Civil
3-13     Statutes), the Nursing Practice Act (Articles 4513-4528, Revised
3-14     Statutes), the Physician Assistant Licensing Act (Article 4495b-1,
3-15     Vernon's Texas Civil Statutes), or any other law relating to the
3-16     scope of practice of physicians, advanced practice nurses, or
3-17     physician assistants.
3-18           (f)  This section does not apply to an employer-employee
3-19     relationship between an advanced practice nurse or physician
3-20     assistant and a hospital.
3-21           SECTION 3.  Section 33, Texas Pharmacy Act (Article 4542a-1,
3-22     Vernon's Texas Civil Statutes), is amended by adding Subsection (f)
3-23     to read as follows:
3-24           (f)  A person who qualifies as a practitioner's designated
3-25     agent under Section 5(18)(A) or (B) of this Act may be designated
3-26     by the practitioner to communicate prescriptions of an advanced
3-27     practice nurse or physician assistant authorized by the
3-28     practitioner to sign prescription drug orders under Section
3-29     3.06(d)(5) or (6), Medical Practice Act (Article 4495b, Vernon's
3-30     Texas Civil Statutes).
3-31           SECTION 4.  Section 483.022, Health and Safety Code, is
3-32     amended by adding Subsection (f) to read as follows:
3-33           (f)  A practitioner may designate a person who qualifies as a
3-34     designated agent of the practitioner under Section 483.001(4)(A) or
3-35     (B) to communicate prescriptions of an advanced practice nurse or
3-36     physician assistant authorized by the practitioner to sign
3-37     prescription drug orders under Section 3.06(d)(5) or (6), Medical
3-38     Practice Act (Article 4495b, Vernon's Texas Civil Statutes).
3-39           SECTION 5.  Section 31, Chapter 1036, Acts of the 62nd
3-40     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
3-41     Civil Statutes), is amended to read as follows:
3-42           Sec. 31.  Health Certificate.  (a)  Every applicant for an
3-43     original or renewal operator license, instructor license,
3-44     reciprocal license, or specialty certificate must submit a
3-45     certificate of health signed by a licensed physician, licensed
3-46     advanced practice nurse, or licensed physician assistant, showing
3-47     that the applicant is free, as determined by an examination, from
3-48     tuberculosis, hepatitis, or a contagious disease for which the
3-49     applicant is not entitled to protection under the Americans with
3-50     Disabilities Act (42 U.S.C. Section 12101 et seq.).
3-51           (b)  Any physician, advanced practice nurse, or physician
3-52     assistant who signs a health certificate required by Subsection (a)
3-53     of this section showing the applicant to be free from a disease
3-54     covered by that subsection without having made the physical
3-55     examination is guilty of a misdemeanor, and on conviction may be
3-56     fined not less than $50 or more than $200.
3-57           SECTION 6.  Section 1, Article 21.52, Insurance Code, is
3-58     amended to read as follows:
3-59           Sec. 1.  DEFINITIONS.  As used in this article:
3-60           (a)  "health insurance policy" means any individual, group,
3-61     blanket, or franchise insurance policy, insurance agreement, or
3-62     group hospital service contract, providing benefits for medical or
3-63     surgical expenses incurred as a result of an accident or sickness;
3-64           (b)  "doctor of podiatric medicine" includes D.P.M.,
3-65     podiatrist, doctor of surgical chiropody, D.S.C. and chiropodist;
3-66           (c)  "doctor of optometry" includes optometrist, doctor of
3-67     optometry, and O.D.;
3-68           (d)  "doctor of chiropractic" means a person who is licensed
3-69     by the Texas Board of Chiropractic Examiners to practice
 4-1     chiropractic;
 4-2           (e)  "licensed dentist" means a person who is licensed to
 4-3     practice dentistry by the State Board of Dental Examiners;
 4-4           (f)  "licensed audiologist" means a person who has received a
 4-5     master's or doctorate degree in audiology from an accredited
 4-6     college or university and is licensed as an audiologist by the
 4-7     State Committee of Examiners for Speech-Language Pathology and
 4-8     Audiology;
 4-9           (g)  "licensed speech-language pathologist" means a person
4-10     who has received a master's or doctorate degree in speech-language
4-11     pathology from an accredited college or university and is licensed
4-12     as a speech-language pathologist by the State Committee of
4-13     Examiners for Speech-Language Pathology and Audiology;
4-14           (h)  "licensed master social worker--advanced clinical
4-15     practitioner" means a person who is licensed by the Texas State
4-16     Board of Social Worker Examiners as a licensed master social worker
4-17     with the order of recognition of advanced clinical practitioner;
4-18           (i)  "licensed dietitian" means a person who is licensed by
4-19     the Texas State Board of Examiners of Dietitians;
4-20           (j)  "licensed professional counselor" means a person who is
4-21     licensed by the Texas State Board of Examiners of Professional
4-22     Counselors;
4-23           (k)  "psychologist" means a person licensed to practice
4-24     psychology by the Texas State Board of Examiners of Psychologists;
4-25           (l)  "licensed marriage and family therapist" means a person
4-26     who is licensed by the Texas State Board of Examiners of Marriage
4-27     and Family Therapists;
4-28           (m)  "licensed chemical dependency counselor" means a person
4-29     who is licensed by the Texas Commission on Alcohol and Drug Abuse;
4-30           (n)  "licensed hearing aid fitter and dispenser" means a
4-31     person who is licensed by the Texas Board of Examiners in the
4-32     Fitting and Dispensing of Hearing Aids;
4-33           (o)  "licensed psychological associate" means a person who is
4-34     licensed by the Texas State Board of Examiners of Psychologists and
4-35     who practices under the supervision of a licensed psychologist;
4-36           (p)  "occupational therapist" means a person who is licensed
4-37     to practice occupational therapy by the Texas Board of Occupational
4-38     Therapy Examiners; [and]
4-39           (q)  "physical therapist" means a person who practices
4-40     physical therapy and is licensed by the Texas Board of Physical
4-41     Therapy Examiners;
4-42           (r)  "advanced practice nurse" means a person licensed by the
4-43     Board of Nurse Examiners and recognized by that board as an
4-44     advanced practice nurse; and
4-45           (s)  "physician assistant" means a person licensed by the
4-46     Texas State Board of Physician Assistant Examiners.
4-47           SECTION 7.  Section 3, Article 21.52, Insurance Code, as
4-48     amended by Chapter 541, Acts of the 74th Legislature, Regular
4-49     Session, 1995, and as reenacted and amended by Chapter 946, Acts of
4-50     the 75th Legislature, Regular Session, 1997, is amended to read as
4-51     follows:
4-52           Sec. 3.  Selection of practitioners.  (a)  Any person who is
4-53     issued, who is a party to, or who is a beneficiary under any health
4-54     insurance policy delivered, renewed, or issued for delivery in this
4-55     state by any insurance company, association, or organization to
4-56     which this article applies may select:
4-57                 (1)  a licensed doctor of podiatric medicine, a
4-58     licensed dentist, or a doctor of chiropractic to perform the
4-59     medical or surgical services or procedures scheduled in the policy
4-60     which fall within the scope of the license of that practitioner;
4-61                 (2)  [,] a licensed doctor of optometry to perform the
4-62     services or procedures scheduled in the policy which fall within
4-63     the scope of the license of that doctor of optometry;
4-64                 (3)  [,] an occupational therapist to provide the
4-65     services scheduled in the policy which fall within the scope of the
4-66     license of that occupational therapist;
4-67                 (4)  [,] a physical therapist to provide the services
4-68     scheduled in the policy which fall within the scope of the license
4-69     of that physical therapist;
 5-1                 (5)  [,] a licensed audiologist to measure hearing for
 5-2     the purpose of determining the presence or extent of a hearing loss
 5-3     and to provide aural rehabilitation services to a person with a
 5-4     hearing loss if those services or procedures are scheduled in the
 5-5     policy;
 5-6                 (6)  [,] a licensed speech-language pathologist to
 5-7     evaluate speech and language and to provide habilitative and
 5-8     rehabilitative services to restore speech or language loss or to
 5-9     correct a speech or language impairment if those services or
5-10     procedures are scheduled in the policy;
5-11                 (7)  [,] a licensed master social worker--advanced
5-12     clinical practitioner to provide the services that fall within the
5-13     scope of the license of such certified practitioner and which are
5-14     specified as services within the terms of the policy of insurance,
5-15     including the provision of direct, diagnostic, preventive, or
5-16     clinical services to individuals, families, and groups whose
5-17     functioning is threatened or affected by social or psychological
5-18     stress or health impairment, if those services or procedures are
5-19     scheduled in the policy;
5-20                 (8)  [,] a licensed dietitian including a provisional
5-21     licensed dietitian under a licensed dietitian's supervision to
5-22     provide the services that fall within the scope of the license of
5-23     that dietitian if those services are scheduled in the policy;
5-24                 (9)  [,] a licensed professional counselor to provide
5-25     the services that fall within the scope of the license of that
5-26     professional if those services are scheduled in the policy;
5-27                 (10)  [,] a licensed marriage and family therapist to
5-28     provide the services that fall within the scope of the license of
5-29     that professional if those services are scheduled in the policy;
5-30                 (11)  [,] a psychologist to perform the services or
5-31     procedures scheduled in the policy that fall within the scope of
5-32     the license of that psychologist;
5-33                 (12)  a licensed chemical dependency counselor to
5-34     perform the services or procedures scheduled in the policy that
5-35     fall within the scope of the license of that practitioner;
5-36                 (13)  an advanced practice nurse to provide the
5-37     services scheduled in the policy that fall within the scope of the
5-38     license of that practitioner;
5-39                 (14)  a physician assistant to provide the services
5-40     scheduled in the policy that fall within the scope of the license
5-41     of that practitioner;
5-42                 (15)  [,] a licensed hearing aid fitter and dispenser
5-43     to provide the services or procedures scheduled in the policy that
5-44     fall within the scope of the license of that practitioner;[,] or
5-45                 (16)  a licensed psychological associate to provide the
5-46     services that fall within the scope of the license of that
5-47     professional if those services are scheduled in the policy.
5-48           (b)  The services of a licensed master social
5-49     worker--advanced clinical practitioner, licensed professional
5-50     counselor, or licensed marriage and family therapist that are
5-51     included in this Act may require a professional recommendation by a
5-52     doctor of medicine or doctor of osteopathy unless the health
5-53     insurance policy terms do not require such a recommendation.
5-54           (c)  The payment or reimbursement by the insurance company,
5-55     association, or organization for [those] services or procedures in
5-56     accordance with the payment schedule or the payment provisions in
5-57     the policy shall not be denied because the same were performed by a
5-58     licensed doctor of podiatric medicine, a licensed doctor of
5-59     optometry, a licensed doctor of chiropractic, a licensed dentist,
5-60     an occupational therapist, a physical therapist, a licensed
5-61     audiologist, a licensed speech-language pathologist, a licensed
5-62     master social worker--advanced clinical practitioner, a licensed
5-63     dietitian, a licensed professional counselor, a licensed marriage
5-64     and family therapist, a psychologist, a licensed psychological
5-65     associate, a licensed chemical dependency counselor, an advanced
5-66     practice nurse, a physician assistant, or a licensed hearing aid
5-67     fitter and dispenser.
5-68           (d)  There shall not be any classification, differentiation,
5-69     or other discrimination in the payment schedule or the payment
 6-1     provisions in a health insurance policy, nor in the amount or
 6-2     manner of payment or reimbursement thereunder, between scheduled
 6-3     services or procedures when performed by a doctor of podiatric
 6-4     medicine, a doctor of optometry, a doctor of chiropractic, a
 6-5     licensed dentist, an occupational therapist, a physical therapist,
 6-6     a licensed audiologist, a licensed speech-language pathologist, a
 6-7     licensed master social worker--advanced clinical practitioner, a
 6-8     licensed dietitian, a licensed professional counselor, a licensed
 6-9     marriage and family therapist, a psychologist, a licensed
6-10     psychological associate, a licensed chemical dependency counselor,
6-11     an advanced practice nurse to provide the services scheduled in the
6-12     policy, a physician assistant to provide the services scheduled in
6-13     the policy, or a licensed hearing aid fitter and dispenser which
6-14     fall within the scope of that practitioner's [his] license or
6-15     certification and the same services or procedures when performed by
6-16     any other practitioner of the healing arts whose services or
6-17     procedures are covered by the policy.  However, a health insurance
6-18     policy may provide for a different amount of payment or
6-19     reimbursement for scheduled services or procedures when performed
6-20     by an advanced practice nurse or physician assistant provided the
6-21     reimbursement methodology used to calculate the payment for the
6-22     service or procedure is the same methodology used to calculate the
6-23     payment when the service or procedure is provided by a physician.
6-24           (e)  Any provision in a health insurance policy contrary to
6-25     or in conflict with the provisions of this article shall, to the
6-26     extent of the conflict, be void, but such invalidity shall not
6-27     affect the validity of the other provisions of this policy.  Any
6-28     presently approved policy form containing any provision in conflict
6-29     with the requirements of this Act shall be brought into compliance
6-30     with this Act by the use of riders and endorsements which have been
6-31     approved by the commissioner [State Board of Insurance] or by the
6-32     filing of new or revised policy forms for approval by the
6-33     commissioner [State Board of Insurance].
6-34           SECTION 8.  Section 3, Article 21.52, Insurance Code, as
6-35     amended by Chapter 429, Acts of the 74th Legislature, Regular
6-36     Session, 1995, and as reenacted and amended by Chapter 946, Acts of
6-37     the 75th Legislature, Regular Session, 1997, is repealed.
6-38           SECTION 9.  This Act takes effect September 1, 1999.
6-39           SECTION 10.  The importance of this legislation and the
6-40     crowded condition of the calendars in both houses create an
6-41     emergency and an imperative public necessity that the
6-42     constitutional rule requiring bills to be read on three several
6-43     days in each house be suspended, and this rule is hereby suspended.
6-44                                  * * * * *