Amend SB 1536 on third reading by adding the following appropriately numbered SECTIONS and renumbering subsequent SECTIONS of the bill accordingly: SECTION __. Chapter 35, Health and Safety Code, is amended by adding Section 35.0041 to read as follows: Sec. 35.0041. PARTICIPATION AND REIMBURSEMENT OF TELEMEDICINE SERVICE PROVIDERS. (a) The department by rule shall develop and implement policies permitting reimbursement of a provider for services under the program performed using telemedicine services and telehealth services. (b) The policies must provide for reimbursement of: (1) providers using telemedicine services and telehealth services in a cost-effective manner that ensures the availability to a child with special health care needs of services appropriately performed using telemedicine services and telehealth services that are comparable to the same types of services available to that child without use of telemedicine services and telehealth services; (2) a provider for a service performed using telemedicine services and telehealth services at an amount equal to the amount paid to a provider for performing the same service without using telemedicine services and telehealth services; and (3) multiple providers of different services who participate in a single telemedicine services or telehealth services session for a child with special health care needs, if the department determines that reimbursing each provider for the session is cost-effective in comparison to the costs that would be involved in obtaining the services from providers without the use of telemedicine services and telehealth services, including the costs of transportation and lodging and other direct costs. (4) Providers using telemedicine services and telehealth services included in the school health and related services program. (c) In developing and implementing the policies required by this section, the department shall consult with: (1) The University of Texas Medical Branch at Galveston; (2) Texas Tech University Health Services Center; (3) the Health and Human Services Commission, including the state Medicaid office; (4) providers of telemedicine services and telehealth services hub sites in this state; and (5) providers of services to children with special health care needs. (6) representatives of consumer or disability groups affected by changes to services for children with special health care needs. (d) This section applies to services for which coverage is provided under the health benefits plan established under Section 35.0031. SECTION __. Subchapter D, Chapter 62, Health and Safety Code, is amended by adding Section 62.157 to read as follows: Sec. 62.157. TELEMEDICINE FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS. (a) In providing covered benefits to a child with special health care needs, a health plan provider must permit benefits to be provided through telemedicine services and telehealth services in accordance with policies developed by the commission. (b) The policies must provide for: (1) the availability of covered benefits appropriately provided through telemedicine services and telehealth services that are comparable to the same types of covered benefits provided without the use of telemedicine services and telehealth services; and (2) the availability of covered benefits for different services performed by multiple health care providers during a single telemedicine services and telehealth services session, if the commission determines that delivery of the covered benefits in that manner is cost-effective in comparison to the costs that would be involved in obtaining the services from providers without the use of telemedicine services and telehealth services, including the costs of transportation and lodging and other direct costs. (c) In developing the policies required by Subsection (a), the commission shall consult with: (1) The University of Texas Medical Branch at Galveston; (2) Texas Tech University Health Sciences Center; (3) the Texas Department of Health; (4) providers of telemedicine services and telehealth services hub sites in this state; and (5) providers of services to children with special health care needs. (6) representatives of consumer or disability groups affected by changes to services for children with special health care needs. SECTION __. Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.02161 to read as follows: Sec. 531.02161. MEDICAID SERVICES PROVIDED THROUGH TELEMEDICINE TO CHILDREN WITH SPECIAL HEALTH CARE NEEDS. (a) In this section, "Child with special health care needs" meaning assigned by Section 35.0022, Health and Safety Code. (b) The commission by rule shall establish policies that permit reimbursement under the state Medicaid and Children's Health Insurance program for services provided through telemedicine services and telehealth services to children with special health care needs. (c) The policies required under this section must: (1) be designed to: (A) prevent unnecessary travel and encourage efficient use of telemedicine services and telehealth services for children with special health care needs in all suitable circumstances; and (B) ensure in a cost-effective manner the availability to a child with special health care needs of services appropriately performed using telemedicine services and telehealth services that are comparable to the same types of services available to that child without use of telemedicine services and telehealth services; and (2) provide for reimbursement of multiple providers of different services who participate in a single telemedicine services and telehealth services session for a child with special health care needs, if the commission determines that reimbursing each provider for the session is cost-effective in comparison to the costs that would be involved in obtaining the services from providers without the use of telemedicine services and telehealth services, including the costs of transportation and lodging and other direct costs. SECTION 3. The Health and Human Services Commission and the Texas Department of Health shall develop and implement policies required by not later than December 31, 2001. SECTION __. Not later than December 1 of each even-numbered year, the commission shall report to the Speaker of the House of Representatives, the Lieutenant Governor, and the Governor on the effects of telemedicine services on the Medicaid ad Childrens Health Insurance programs in the state, including telemedicine servicesm the geographic and demographic dispositions of the physicians and health professionals, the number of patients receiving telemedicine services, the types of services being provided, and the cost of utilization of telemedicine services to the program. Section __. Section 58.253(a), Utilities Code, is amended to read as follows: (a) On customer request, an electing company shall provide pricates network services to: (1) an educational institutionl (2) a library; (3) a nonprofit telemedicine center; (4) a public not-for-profit hospital; (5) a project that would have been eligible to be funded by the telecommunications infrastructure fund under Subchapter C, Chapter 57, as that subchapter existed on January 1, 2001; or (6) a legally constituted consortium or groupof entities listed in this subsection,