Amend SB 544 as follows:
      (1) On page 1 add the following new sections and renumber the
subsequent section appropriately, "SECTION 2.  The Texas Health
Maintenance Organization Act  (Chapter 20A, Vernon's Texas
Insurance Code) is amended by adding Section 39 to read as follows:
      Sec. 39.  CREDENTIALING OF PHYSICIANS AND PROVIDERS.
(a)  Rules adopted by the commissioner under Section 37 of this Act
that relate to implementation and maintenance by a health
maintenance organization of a process for selecting and retaining
affiliated physicians and providers must comply with:
            (1)  this section; and
            (2)  standards promulgated by the National Committee
for Quality Assurance, to the extent those standards do not
conflict with other laws of this state.
      (b)  The commissioner shall require a health maintenance
organization to verify that a physician's license to practice
medicine and any other certificate the physician is required to
hold, including a certificate issued by the Department of Public
Safety of the State of Texas or the federal Drug Enforcement Agency
or a certificate issued under the Medicare program, is valid as of
the date of initial credentialing and on the date of each
recredentialing.
      (c)  The commissioner shall require a health maintenance
organization that conducts a site visit for the purpose of initial
credentialing to evaluate during the visit a site's accessibility,
appearance, space, medical or dental recordkeeping practices,
availability of appointments, and confidentiality procedures.  The
commissioner may not require the health maintenance organization to
evaluate the appropriateness of equipment during the site visit.
      (d)  The commissioner may not require that a health
maintenance organization:
            (1)  formally recredential physicians or providers more
frequently than once in any three-year period;
            (2)  verify the validity of a license or certificate
held by a physician other than as of the date of initial
credentialing or recredentialing of the physician;
            (3)  use clinical personnel to perform a site visit for
initial credentialing of a physician or provider unless clinical
review is needed during the site visit; or
            (4)  require a site visit be performed for
recredentialing of a physician or provider.
      (e)  This section does not preclude a health maintenance
organization from performing a site visit of a physician or
provider at any time for cause, including a complaint made by a
member or another external complaint made to the health maintenance
organization.
      SECTION 3.  Subchapter E, Chapter 21, Insurance Code, is
amended by adding Article 21.58D to read as follows:
      Art. 21.58D. STANDARDIZED FORM FOR VERIFICATION OF PHYSICIAN
CREDENTIALS
      Sec. 1. DEFINITION. In this article, "physician" means an
individual licensed to practice medicine in this state.
      Sec. 2. STANDARDIZED FORM. (a) The commissioner by rule
shall:
            (1) adopt a standardized form for the verification of
the credentials of a physician; and:
            (2) require that a public or private hospital, a health
maintenance organization operating under the Texas Health
Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
Code), or a preferred provider organization operating under Article
3.70-3C, Insurance Code, as added by Chapter 1024, Acts of the 75th
Legislature, Regular Session, 1997, use the form for verification
of credentials.
      (b) In adopting a form under Subsection (a) of this section,
the commissioner shall consider any credentialing application form
that is widely used in this state.
      SECTION 4. (a) The Texas State Board of Medical Examiners
shall study the establishment of a program for standardized
credentials verification through using a credentialing information
system.
      (b) Not later than January 1, 2003, the Texas State Board of
Medical Examiners shall report on its recommendations for proposed
legislation, based on the study conducted under Subsection (a) of
this section, to:
            (1) the governor;
            (2) the lieutenant governor; and
            (3) the speaker of the house of representatives.".
      (2) On page 1, line 19, insert the following after the period
and before "This": "Sections 2, 3 and 4 of this Act take effect
September 1, 2001. Section 1. of'.