AN ACT
 1-1     relating to the regulation of anesthesia in certain outpatient
 1-2     settings.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  (a)  The legislature finds that it is necessary
 1-5     to regulate the provision of anesthesia services in outpatient
 1-6     surgical settings that are not part of a licensed hospital or a
 1-7     licensed ambulatory surgical center to protect the health, safety,
 1-8     and welfare of the public.  The legislature further finds that the
 1-9     provision of anesthesia services in these settings is appropriately
1-10     regulated by the professional licensing boards of the licensed
1-11     professionals who provide anesthesia services.
1-12           (b)  It is the purpose of this Act to require the Texas State
1-13     Board of Medical Examiners and the Board of Nurse Examiners to
1-14     adopt rules for their respective license holders that will regulate
1-15     the provision of anesthesia services in outpatient surgical
1-16     settings that are not a part of a licensed hospital or licensed
1-17     ambulatory surgical center.
1-18           SECTION 2.  The Medical Practice Act (Article 4495b, Vernon's
1-19     Texas Civil Statutes) is amended by adding Subchapter G to read as
1-20     follows:
1-21               SUBCHAPTER G.  ANESTHESIA IN OUTPATIENT SETTING
1-22           Sec. 7.01.  DEFINITION.  In this subchapter, "outpatient
1-23     setting" means any facility, clinic, center, office, or other
1-24     setting that is not part of a licensed hospital or a licensed
 2-1     ambulatory surgical center.
 2-2           Sec. 7.02.  RULES.  (a)  The board shall establish by rule
 2-3     the minimum standards for the provision of anesthesia services in
 2-4     outpatient settings by persons licensed by the board.
 2-5           (b)  The rules must be designed to protect the health,
 2-6     safety, and welfare of the public and must include requirements
 2-7     relating to:
 2-8                 (1)  general anesthesia, regional anesthesia, and
 2-9     monitored anesthesia care;
2-10                 (2)  patient evaluation, diagnosis, counseling, and
2-11     preparation;
2-12                 (3)  patient monitoring to be performed and equipment
2-13     to be used during a procedure and during post-procedure monitoring;
2-14                 (4)  emergency procedures, drugs, and equipment,
2-15     including education, training, and certification of personnel, as
2-16     appropriate, and including protocols for transfers to a hospital;
2-17                 (5)  the documentation necessary to demonstrate
2-18     compliance with this subchapter; and
2-19                 (6)  the period in which protocols or procedures
2-20     covered by rules of the board shall be reviewed, updated, or
2-21     amended.
2-22           (c)  The board shall cooperate with the Board of Nurse
2-23     Examiners in the adoption of rules under this subchapter to
2-24     eliminate to the extent possible conflicts between the rules
2-25     adopted by each board.
2-26           Sec. 7.03.  APPLICABILITY.  Rules adopted by the board under
 3-1     this subchapter do not apply to:
 3-2                 (1)  an outpatient setting in which only local
 3-3     anesthesia, peripheral nerve blocks, or both are used;
 3-4                 (2)  an outpatient setting in which only anxiolytics
 3-5     and analgesics are used and only in doses that do not have the
 3-6     probability of placing the patient at risk for loss of the
 3-7     patient's life-preserving protective reflexes;
 3-8                 (3)  a licensed hospital, including an outpatient
 3-9     facility of the hospital that is separately located apart from the
3-10     hospital;
3-11                 (4)  a licensed ambulatory surgical center;
3-12                 (5)  a clinic located on land recognized as tribal land
3-13     by the federal government and maintained or operated by a federally
3-14     recognized Indian tribe or tribal organization as listed by the
3-15     United States secretary of the interior under 25 U.S.C. Section
3-16     479a-1 or as listed under a successor federal statute or
3-17     regulation;
3-18                 (6)  a facility maintained or operated by a state or
3-19     local governmental entity;
3-20                 (7)  a clinic directly maintained or operated by the
3-21     United States or by any of its departments, officers, or agencies;
3-22     or
3-23                 (8)  an outpatient setting accredited by:
3-24                       (A)  the Joint Commission on Accreditation of
3-25     Healthcare Organizations relating to ambulatory surgical centers;
3-26                       (B)  the American Association for the
 4-1     Accreditation of Ambulatory Surgery Facilities; or
 4-2                       (C)  the Accreditation Association for Ambulatory
 4-3     Health Care.
 4-4           Sec. 7.04.  COMPLIANCE WITH ANESTHESIA RULES.  (a)  On or
 4-5     after August 31, 2000, a physician who practices medicine in this
 4-6     state and who administers anesthesia or performs a surgical
 4-7     procedure for which anesthesia services are provided in an
 4-8     outpatient setting shall comply with the rules adopted under this
 4-9     subchapter.
4-10           (b)  The board may require a physician to submit and comply
4-11     with a corrective action plan to remedy or address any current or
4-12     potential deficiencies with the physician's provision of anesthesia
4-13     in an outpatient setting in accordance with this Act or rules of
4-14     the board.
4-15           Sec. 7.05.  ANNUAL REGISTRATION.  (a)  Beginning September 1,
4-16     2000, the board shall require each physician who administers
4-17     anesthesia or performs a surgical procedure for which anesthesia
4-18     services are provided in an outpatient setting to annually register
4-19     with the board on a form prescribed by the board and to pay a fee
4-20     to the board in an amount established by the board.
4-21           (b)  The board shall coordinate the registration required
4-22     under this section with the registration required under Section
4-23     3.01 of this Act so that the times of registration, payment,
4-24     notice, and imposition of penalties for late payment are similar
4-25     and provide a minimum of administrative burden to the board and to
4-26     physicians.
 5-1           Sec. 7.06.  INSPECTIONS.  (a)  The board may conduct
 5-2     inspections to enforce this subchapter, including inspections of an
 5-3     office site and of documents of a physician's practice that relate
 5-4     to the provision of anesthesia in an outpatient setting.  The board
 5-5     may contract with another state agency or qualified person to
 5-6     conduct these inspections.
 5-7           (b)  Unless it would jeopardize an ongoing investigation, the
 5-8     board shall provide at least five business days' notice before
 5-9     conducting an on-site inspection under this section.
5-10           (c)  This section does not require the board to make an
5-11     on-site inspection of a physician's office.
5-12           Sec. 7.07.  REQUESTS FOR INSPECTION AND ADVISORY OPINION.
5-13     (a)  The board may consider a request by a physician for an on-site
5-14     inspection.  The board may, in its discretion and on payment of a
5-15     fee in an amount established by the board, conduct the inspection
5-16     and issue an advisory opinion.
5-17           (b)  An advisory opinion issued by the board under this
5-18     section is not binding on the board, and the board, except as
5-19     provided by Subsection (c) of this section, may take any action
5-20     under this Act in relation to the situation addressed by the
5-21     advisory opinion that the board considers appropriate.
5-22           (c)  A physician who requests and relies on an advisory
5-23     opinion of the board may use the opinion as mitigating evidence in
5-24     an action or proceeding to impose an administrative or civil
5-25     penalty under this Act.  The board or court, as appropriate, shall
5-26     take proof of reliance on an advisory opinion into consideration
 6-1     and mitigate the imposition of administrative or civil penalties
 6-2     accordingly.
 6-3           SECTION 3.  Subsection (b), Section 3.10, Medical Practice
 6-4     Act (Article 4495b, Vernon's Texas Civil Statutes), as amended by
 6-5     Chapter 214, Acts of the 73rd Legislature, Regular Session, 1993,
 6-6     is amended to read as follows:
 6-7           (b)  The board may not set, charge, collect, receive, or
 6-8     deposit any of the following fees in excess of:
 6-9                 (1)  for   processing  and   granting  a   license   by
6-10                        reciprocity to a licensee of another
6-11                        state ..................................... $700
6-12                 (2)  for  processing an  application and administration
6-13                        of a partial examination for licensure .... $700
6-14                 (3)  for processing an  application and  administration
6-15                        of a complete examination for licensure ... $700
6-16                 (4)  for  processing an  application and  issuance of a
6-17                        temporary license ......................... $200
6-18                 (5)  for  processing an  application and  issuance of a
6-19                        duplicate license ......................... $200
6-20                 (6)  for processing an  application and  issuance  of a
6-21                        license  of   reinstatement  after  a  lapse  or
6-22                        cancellation of a license ................. $700
6-23                 (7)  for processing an  application and  issuance of an
6-24                        annual registration of a licensee ......... $200
6-25                 (8)  for  processing and  issuance of an  institutional
6-26                        permit  for  interns, residents, and  others  in
 7-1                        approved  medical  training  programs ..... $200
 7-2                 (9)  for processing an  application and  issuance of an
 7-3                        endorsement    to     other     state    medical
 7-4                        boards .................................... $200
 7-5                 (10)  for  processing  and  issuance  of a  license  or
 7-6                         temporary     license     to     a    physician
 7-7                         assistant ................................ $200
 7-8                 (11)  for  processing  and  issuance of  a  permit to a
 7-9                         physician        who        supervises       an
7-10                         acupuncturist ............................ $200
7-11                 (12)  for processing an application and  issuance of an
7-12                         annual   registration   for   anesthesia  in an
7-13                         outpatient setting ...................... $300.
7-14           SECTION 4.  Chapter 7, Title 71, Revised Statutes, is amended
7-15     by adding Article 4527e to read as follows:
7-16           Art. 4527e.  ANESTHESIA IN OUTPATIENT SETTING
7-17           Sec. 1.  DEFINITION.  In this article, "outpatient setting"
7-18     means any facility, clinic, center, office, or other setting that
7-19     is not part of a licensed hospital or a licensed ambulatory
7-20     surgical center.
7-21           Sec. 2.  RULES.  (a)  The board shall establish by rule the
7-22     minimum standards for the provision of anesthesia services in
7-23     outpatient settings by persons licensed by the board.
7-24           (b)  The rules must be designed to protect the health,
7-25     safety, and welfare of the public and must include requirements
7-26     relating to:
 8-1                 (1)  general anesthesia, regional anesthesia, and
 8-2     monitored anesthesia care;
 8-3                 (2)  patient assessment, counseling, and preparation;
 8-4                 (3)  patient monitoring to be performed and equipment
 8-5     to be used during a procedure and during post-procedure monitoring;
 8-6                 (4)  emergency procedures, drugs, and equipment,
 8-7     including education, training, and certification of personnel, as
 8-8     appropriate, and including protocols for transfers to a hospital;
 8-9                 (5)  the documentation necessary to demonstrate
8-10     compliance with this article; and
8-11                 (6)  the period in which protocols or procedures
8-12     covered by rules of the board shall be reviewed, updated, or
8-13     amended.
8-14           (c)  The board shall cooperate with the Texas State Board of
8-15     Medical Examiners in the adoption of rules under this article to
8-16     eliminate to the extent possible conflicts between the rules
8-17     adopted by each board.
8-18           Sec. 3.  APPLICABILITY.  Rules adopted by the board under
8-19     this article do not apply to:
8-20                 (1)  an outpatient setting in which only local
8-21     anesthesia, peripheral nerve blocks, or both are used;
8-22                 (2)  an outpatient setting in which only anxiolytics
8-23     and analgesics are used and only in doses that do not have the
8-24     probability of placing the patient at risk for loss of the
8-25     patient's life-preserving protective reflexes;
8-26                 (3)  a licensed hospital, including an outpatient
 9-1     facility of the hospital that is separately located apart from the
 9-2     hospital;
 9-3                 (4)  a licensed ambulatory surgical center;
 9-4                 (5)  a clinic located on land recognized as tribal land
 9-5     by the federal government and maintained or operated by a federally
 9-6     recognized Indian tribe or tribal organization as listed by the
 9-7     United States secretary of the interior under 25 U.S.C. Section
 9-8     479a-1 or as listed under a successor federal statute or
 9-9     regulation;
9-10                 (6)  a facility maintained or operated by a state or
9-11     local governmental entity;
9-12                 (7)  a clinic directly maintained or operated by the
9-13     United States or by any of its departments, officers, or agencies;
9-14     or
9-15                 (8)  an outpatient setting accredited by:
9-16                       (A)  the Joint Commission on Accreditation of
9-17     Healthcare Organizations relating to ambulatory surgical centers;
9-18                       (B)  the American Association for the
9-19     Accreditation of Ambulatory Surgery Facilities; or
9-20                       (C)  the Accreditation Association for Ambulatory
9-21     Health Care.
9-22           Sec. 4.  COMPLIANCE WITH ANESTHESIA RULES.  (a)  On or after
9-23     August 31, 2000, a certified registered nurse anesthetist providing
9-24     anesthesia services in an outpatient setting shall comply with the
9-25     rules adopted by the board under this article.
9-26           (b)  The board may require a certified registered nurse
 10-1    anesthetist to submit and comply with a corrective action plan to
 10-2    remedy or address any current or potential deficiencies with the
 10-3    nurse anesthetist's provision of anesthesia in an outpatient
 10-4    setting in accordance with this chapter or rules of the board.
 10-5          Sec. 5.  BIENNIAL REGISTRATION.  (a)  Beginning September 1,
 10-6    2000, the board shall require each certified registered nurse
 10-7    anesthetist who provides anesthesia services in an outpatient
 10-8    setting to biennially register with the board on a form prescribed
 10-9    by the board and to pay a fee to the board in an amount established
10-10    by the board.
10-11          (b)  The board shall coordinate the registration required
10-12    under this article with the license renewal provisions under
10-13    Article 4526, Revised Statutes, so that the times of registration,
10-14    payment, notice, and imposition of penalties for late payment are
10-15    similar and provide a minimum of administrative burden to the board
10-16    and to certified registered nurse anesthetists.
10-17          Sec. 6.  INSPECTIONS.  (a)  The board may conduct inspections
10-18    to enforce this article, including inspections of the equipment
10-19    owned or leased by a certified registered nurse anesthetist and of
10-20    documents of a certified registered nurse anesthetist's practice
10-21    that relate to the provision of anesthesia in an outpatient
10-22    setting.  The board may contract with another state agency or
10-23    qualified person to conduct these inspections.
10-24          (b)  Unless it would jeopardize an ongoing investigation, the
10-25    board shall provide at least five business days' notice before
10-26    conducting an on-site inspection under this section.
 11-1          (c)  This section does not require the board to make an
 11-2    on-site inspection of an outpatient setting where a certified
 11-3    registered nurse anesthetist provides anesthesia.
 11-4          Sec. 7.  REQUESTS FOR INSPECTION AND ADVISORY OPINION.
 11-5    (a)  The board may consider a request by a certified registered
 11-6    nurse anesthetist for an inspection of equipment owned or leased by
 11-7    the nurse anesthetist and of documents of the nurse anesthetist's
 11-8    practice that relate to the provision of anesthesia in an
 11-9    outpatient setting.  The board may, in its discretion and on
11-10    payment of a fee in an amount established by the board, conduct the
11-11    inspection and issue an advisory opinion.
11-12          (b)  An advisory opinion issued by the board under this
11-13    section is not binding on the board and the board, except as
11-14    provided by Subsection (c) of this section, may take any action
11-15    under this chapter in relation to the situation addressed by the
11-16    advisory opinion that the board considers appropriate.
11-17          (c)  A certified registered nurse anesthetist who requests
11-18    and relies on an advisory opinion of the board may use the opinion
11-19    as mitigating evidence in an action or proceeding by the board to
11-20    impose an administrative penalty or assess a monetary fine under
11-21    this chapter.  The board shall take proof of reliance on an
11-22    advisory opinion into consideration and mitigate the imposition of
11-23    administrative penalties or the assessment of a monetary fine
11-24    accordingly.
11-25          SECTION 5.  The Texas State Board of Medical Examiners and
11-26    Board of Nurse Examiners may permit the registration requirements
 12-1    imposed under Subchapter G, Medical Practice Act (Article 4495b,
 12-2    Vernon's Texas Civil Statutes), as added by this Act, and under
 12-3    Article 4527e, Revised Statutes, as added by this Act, to be
 12-4    staggered and phased in so that not later than September 1, 2002,
 12-5    all physicians and certified registered nurse anesthetists required
 12-6    to register under those laws will be in compliance.
 12-7          SECTION 6.  (a)  The rules required under Subchapter G,
 12-8    Medical Practice Act (Article 4495b, Vernon's Texas Civil
 12-9    Statutes), as added by this Act, and under Article 4527e, Revised
12-10    Statutes, as added by this Act, must be adopted by the Texas State
12-11    Board of Medical Examiners and Board of Nurse Examiners, as
12-12    appropriate, not later than January 7, 2000.
12-13          (b)  The Texas State Board of Medical Examiners and the Board
12-14    of Nurse Examiners shall report to the speaker of the house of
12-15    representatives and the lieutenant governor on the implementation
12-16    and enforcement of those rules and of the laws added by this Act
12-17    not later than January 1, 2001.  The report must include any
12-18    suggested amendments or changes to the laws added by this Act to
12-19    make those laws more effective or efficient.
12-20          SECTION 7.  This Act takes effect September 1, 1999.
12-21          SECTION 8.  The importance of this legislation and the
12-22    crowded condition of the calendars in both houses create an
12-23    emergency and an imperative public necessity that the
12-24    constitutional rule requiring bills to be read on three several
12-25    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. 1340 passed the Senate on
         April 13, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 25, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1340 passed the House, with
         amendment, on May 22, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor