By Janek                                               H.B. No. 576
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the standardization of credentialing of physicians and
 1-3     providers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  The legislature recognizes that an efficient and
 1-6     effective physician and provider credentialing program helps to
 1-7     ensure access to quality health care and also recognizes that
 1-8     physician and provider credentialing activities have increased
 1-9     significantly as a result of health care reform and recent changes
1-10     in health care delivery and reimbursement systems.  Moreover, the
1-11     resulting duplication of physician and provider credentialing
1-12     activities is unnecessarily costly and cumbersome for both the
1-13     practitioner and the entity granting practice privileges.
1-14     Therefore, it is the intent of the legislature that a single
1-15     mandatory credentials collection program be established [which
1-16     provides that once a] for the collection of a physician's and
1-17     provider's core credentials data. [are collected, validated,
1-18     maintained, and stored they need not be collected again.]
1-19           SECTION 2.  Subchapter G., The Medical Practice Act (Article
1-20     4495b, Vernon's Texas Civil Statutes) is amended as follows:
1-21             SUBCHAPTER G. PHYSICIAN AND PROVIDER CREDENTIALING
1-22           Sec. 7.01.  DEFINITIONS. In this subchapter:
 2-1                 (1)  "Advisory Board" means the Advisory Board on
 2-2     Provider Credentialing Information.
 2-3                 (2)  "Board" means the Texas State Board of Medical
 2-4     Examiners.
 2-5                 (3)  "Certified or accredited" means approved by a
 2-6     national accrediting organization used to assess and certify any
 2-7     credentials verification program, entity, or organization that
 2-8     verifies the credentials of any physician or provider.
 2-9                 [(1)] (4)  "Core credentials data" means
2-10           (a)  data that is primary source verified and includes, but
2-11     is not limited to, a physician's and provider's:
2-12                       [(A)] (1)  name and other demographic data;
2-13                       [(B)] (2)  professional education;
2-14                       [(C)] (3)  professional training;
2-15                       [(D)] (4)  [licenses; ]]Lprimary source verified
2-16     licensure;   current valid license;
2-17                       [(E)] (5)  Educational Commission for Foreign
2-18     Medical Graduates certification if appropriate;
2-19                 (6)  board certification, if applicable;
2-20                 (7)  Drug Enforcement Administration certification;
2-21                 (8)  Texas Department of Public Safety Controlled
2-22     Substances Permit certification;
2-23                 (9)  Professional liability insurance;
2-24                 (10)  National Practitioner Data Bank information; and
2-25                 (11)  License sanctions and Medicare and Medicaid
2-26     sanctions as available.
 3-1           (b)  For health care facilities, in addition to (a)(1)
 3-2     through (10) of this section, core credentials data include
 3-3     accreditation by a national accrediting organization and Medicare
 3-4     certification as available.
 3-5           (c)  The board by rule may add core credentialing data
 3-6     elements as necessary.
 3-7                 (5)  "Department" means Texas Department of Insurance.
 3-8                 [(2)] (6)  "Designated Credentials Verification
 3-9     Organization" means an organization that is certified or accredited
3-10     and is organized to collect, verify, maintain, store, and provide
3-11     to health care entities a health care [practitioner's] physician's
3-12     and provider's verified credentials data including all corrections,
3-13     updates, and modifications to that data and that contracts with the
3-14     board, in consultation with the advisory committee, to carry out
3-15     the duties delegated by the board and advisory committee under this
3-16     subchapter.  [For purposes of this subdivision, "certified" or
3-17     "accredited" includes certification or accreditation by a
3-18     nationally recognized accreditation organization.]
3-19                 [(3)] (7)  "Health care entity" means:
3-20                       (A)  a health care facility or other health care
3-21     organization licensed or certified to provide approved medical and
3-22     allied health services in this state;
3-23                       (B)  an entity licensed by the Texas Department
3-24     of Insurance as a prepaid health care plan or health maintenance
3-25     organization or as an insurer to provide coverage for health care
3-26     services through a network of providers; [or]
 4-1                       (C)  [a health care provider entity] an entity
 4-2     accepting delegated credentialing functions [from a health
 4-3     maintenance organization].; or
 4-4                       (D)  a preferred provider organization as defined
 4-5     in this section.
 4-6                 (8)  "Initial credentials verification" means the
 4-7     process by which Designated Credentials Verification Organization
 4-8     verifies the credentials of a physician or provider the first time
 4-9     the physician or provider applies for credentialing.
4-10                 (9)  "Institutional credentials verification" means the
4-11     process by which a Designated Credentials Verification Organization
4-12     verifies the credentials of a health care facility licensed or
4-13     certified to provide approved medical and allied health services in
4-14     this state.
4-15                 (10)  "National Accrediting Organization" means an
4-16     organization that awards accreditation or certification to
4-17     hospitals, managed care organizations, other health care
4-18     organizations or credentials verification organizations including,
4-19     but not limited to, the Joint Commission on Accreditation of
4-20     Healthcare Organizations the National Committee for Quality
4-21     Assurance and the American Accreditation HealthCare Commission
4-22     (also known as the Utilization Review Accreditation Commission.)
4-23                 (11)  "Physician" means a holder of or applicant for a
4-24     license under [this Act] Chap. 155, Occupations Code, as a medical
4-25     doctor or doctor of osteopathy.
4-26                 (12)  "Preferred provider organization" means an entity
 5-1     that contracts with providers or provider groups for the purpose of
 5-2     forming a health services network as defined in Art. 3.70-3C(10),
 5-3     Texas Insurance Code.
 5-4                 (13)  "Primary source verification" means verification
 5-5     of professional qualifications based on evidence obtained directly
 5-6     from the issuing source of the applicable qualification or other
 5-7     sources otherwise deemed as primary source verification.
 5-8                 (14)  "Provider" means any person other than a
 5-9     physician including a licensed doctor of chiropractic, advanced
5-10     practice nurse, dentist, pharmacist, optometrist, registered
5-11     optician, pharmacy, hospital, or other institution or organization
5-12     or person that is licensed or otherwise authorized to provide a
5-13     health care service in this state.
5-14                 (15)  "Reasonable fees" means fees in amounts necessary
5-15     to cover the cost plus one percent of operating and administering
5-16     this subchapter.
5-17                 (16)  "Recredentialing" means the process by which a
5-18     Designated Credentials Verification Organization verifies the
5-19     credentials of a physician or provider whose core data including
5-20     all corrections, updates and modifications thereto, are currently
5-21     on file with that entity on a periodic basis.
5-22           Sec. 7.01A.  ASSOCIATIONS. Each provision of this Act that
5-23     applies to a health care entity also applies to an association that
5-24     represents federally qualified health centers.  For purposes of
5-25     this section, "federally qualified health center" has the meaning
5-26     assigned by 42 U.S.C. Section 1396d(1)(2)(B), and its subsequent
 6-1     amendments.
 6-2           Sec. 7.02.  STANDARDIZED CREDENTIALS VERIFICATION PROGRAM.
 6-3     [(a)  The board shall develop standardized forms and guidelines for
 6-4     and administer:]
 6-5                 [(1)  the collection, verification, correction,
 6-6     updating, modification, maintenance, and storage of information
 6-7     relating to physician credentials; and]
 6-8                 [(2)  the release of that information to health care
 6-9     entities or designated credentials verification organizations
6-10     authorized by the physician to receive that information.]
6-11           (a)  The board, in consultation with the advisory committee,
6-12     may enter into a memorandum of understanding with the appropriate
6-13     state agency or agencies as it deems necessary to develop the
6-14     standardized credentials verification program.  The board is not
6-15     required to seek assistance from outside agencies for the
6-16     development of the standardized credentials verification program
6-17     but may do so at its discretion.  The board shall appoint an
6-18     advisory committee as defined in this subtitle to advise the board
6-19     in developing rules and regulations to administer this subchapter
6-20     as authorized by Section 2001.031, Government Code.  The advisory
6-21     committee's deliberations shall be subject to the open meetings
6-22     law.  The board, in consultation with the advisory committee, shall
6-23     retain all policymaking authority over the standardized credentials
6-24     verification program and shall adopt rules as necessary to
6-25     implement this subtitle.
6-26           [(b)  Except as provided by Subsection (c), a physician whose
 7-1     core credentials data is submitted to the board is not required to
 7-2     resubmit the data when applying for practice privileges with a
 7-3     health care entity.]
 7-4           (b)  The advisory committee shall include, but not be limited
 7-5     to, the public insurance counsel and one representative of each of
 7-6     the following:  certified credentials verification organizations,
 7-7     insurance companies, health maintenance organizations, preferred
 7-8     provider organizations, employers, consumer organizations,
 7-9     physicians, including a medical doctor and a doctor of osteopathy,
7-10     dentists, hospitals and other physicians or providers or
7-11     organizations as determined to be necessary by the board and
7-12     advisory committee.
7-13           [(c)  a physician shall:]
7-14                 [(1)  provide to the board any correction, update, or
7-15     modification of the physician's core credentials data not later
7-16     than the 30th day after the date the data on file is no longer
7-17     accurate;]
7-18                 [(2)  resubmit the physician's core credentials data
7-19     annually if the physician did not submit a correction, update, or
7-20     modification during the preceding year.]
7-21           (c)  The board, in consultation with the advisory committee,
7-22     shall enter into a memorandum of understanding with the General
7-23     Services Commission to develop standardized guidelines for the
7-24     procurement and maintenance of all contracts with the Designated
7-25     Credentials Verification Organizations.  The memorandum of
7-26     understanding shall set forth standardized guidelines for issuing a
 8-1     contract to another Designated Credentials Verification
 8-2     Organization in the event that the Designated Credentials
 8-3     Verification Organization initially issued a contract fails to meet
 8-4     its contractual obligation.  The procurement process by which a
 8-5     contract is issued to the Designated Credentials Verification
 8-6     Organization shall comply with all federal and state laws or
 8-7     regulations.  In administering the system, the board, in
 8-8     consultation with the advisory committee, shall contract with one
 8-9     regionally based accredited credentials verification organization
8-10     and shall comply with the standards and registration requirements
8-11     set forth under Sec. 7.09 of this subchapter.
8-12           [(d)  A health care entity that employs, contracts with, or
8-13     credentials physicians must use the board to obtain core
8-14     credentials data for items for which the board is designated or
8-15     accepted as a primary source by a national accreditation
8-16     organization.  A health care entity may act through its designated
8-17     credentials verification organization.]
8-18           (d)  The board, in consultation with the advisory committee,
8-19     shall develop standardized forms for initial credentialing and
8-20     recredentialing.  In developing standardized forms, the board, in
8-21     consultation with the advisory committee, shall consider the design
8-22     and format of standardized credentialing and recredentialing forms
8-23     used by a health care entity at the time the board is developing
8-24     its standardized forms.  The board shall also consider any
8-25     applicable standards or guidelines from the National Committee for
8-26     Quality Assurance (NCQA) in developing standardized forms.  The
 9-1     board, in consultation with the advisory committee, shall oversee
 9-2     the following:
 9-3                 (1)  the certification, selection and operation of
 9-4     accredited or certified credential verification organizations, to
 9-5     be named "Designated Credentials Verification Organizations," to
 9-6     carry out the duties delegated by the board and advisory committee
 9-7     under this subchapter;
 9-8                 (2)  the suspension and revocation of an accredited or
 9-9     certified Designated Credential Verification Organization's
9-10     contract with the board;
9-11                 (3)  charging a reasonable fee as set forth under Sec.
9-12     7.09 to access the core credential data pursuant to the
9-13     requirements of Chapter 316, Government Code and as set forth by
9-14     the board in consultation with the advisory committee.  The board,
9-15     in consultation with the advisory committee, may waive a fee for a
9-16     state agency that is required to obtain core credentials data from
9-17     the Designated Credentials Verification Organization and that is
9-18     prohibited by Sec. 7.05 of this subchapter from collecting
9-19     duplicate data;
9-20                 (4)  providing ongoing oversight of the Designated
9-21     Credentials Verification Organization to ensure continued
9-22     compliance with the contract between the board and the Designated
9-23     Credentials Verification Organization as set forth under Sec. 7.08,
9-24     this article and the standards and rules adopted under this
9-25     article. The General Services Commission shall assist the board and
9-26     the advisory committee with the administrative oversight of the
 10-1    contract;
 10-2                (5)  developing standardized forms to be used by the
 10-3    physician or provider for the initial reporting of core credentials
 10-4    data, for the physician or provider to authorize the release of
 10-5    core credentials data, for the core credentials report to be sent
 10-6    to requesting health care entities, and for the subsequent
 10-7    reporting of corrections, updates, and modifications to any
 10-8    document; and
 10-9                (6)  the Designated Credentials Verification
10-10    Organization's collection of all core credentials data as defined
10-11    in this subchapter.
10-12          (e)  Each physician and provider required to be credentialed
10-13    by a health care entity as defined in this subchapter for purposes
10-14    of serving on a health care entity's physician or provider network
10-15    or for purposes of obtaining and maintaining hospital privileges
10-16    shall:
10-17                (1)  report all core credentials data to the Designated
10-18    Credentials Verification Organization by completing. a standardized
10-19    application; and
10-20                (2)  notify the Designated Credentials Verification
10-21    Organization within 45 business days of any corrections, updates or
10-22    modifications to the core credentials data by submitting the data
10-23    directly on forms promulgated by the board in consultation with the
10-24    advisory committee.
10-25          (f)  The Designated Credentials Verification Organization
10-26    shall:
 11-1                (1)(a)  be certified or accredited by the National
 11-2    Committee for Quality Assurance, and shall maintain such
 11-3    certification without interruption through the term of the contract
 11-4    as a condition of registration for all of the credentialing
 11-5    elements currently addressed in the National Committee for Quality
 11-6    Assurance Credentialing Verification Organization certification
 11-7    program and be fully accredited or certified as a credentials
 11-8    verification organization by [a] the appropriate nationally
 11-9    recognized accrediting organization as specified in this
11-10    subchapter; and
11-11          (b)  be fully accredited or certified as a credentials
11-12    verification organization by at least one other national
11-13    accrediting organization, provided that such accreditation shall
11-14    not cause a Designated Credentials Verification Organization to
11-15    vary from compliance with National Committee for Quality Assurance
11-16    standards and guidelines.
11-17                (2)  timely comply with the requirements of this
11-18    subchapter, pursuant to rules adopted by the board in consultation
11-19    with the advisory committee;
11-20                (3)  maintain liability insurance appropriate to meet
11-21    the certification;
11-22                (4)  provide the physician's or provider's core data,
11-23    including all corrections, updates, and modifications only with the
11-24    authorization of the physician or provider;
11-25                (5)  be capable of electronically receiving and
11-26    submitting data in a format to be determined by the board in
 12-1    consultation with the advisory committee;
 12-2                (6)  be prohibited from releasing a physician's or
 12-3    provider's core credentials data to any entity other than the
 12-4    health care entity authorized by the physician or provider to
 12-5    collect such data;
 12-6                (7)  establish guidelines for the transferring,
 12-7    transmitting and storage of a physician's or provider's core
 12-8    credentials data; and
 12-9                (8)  meet all National Committee for Quality Assurance
12-10    requirements, including but not limited to, those set forth under
12-11    subparagraph (f)(1)(a) of this section.
12-12          (g)  The Designated Credentials Verification Organization
12-13    must notify the board, pursuant to rules established by the board,
12-14    upon receiving notice of the National Committee for Quality
12-15    Assurance's suspension or revocation of its certification as a
12-16    credential verification organization, and upon receiving notice of
12-17    the suspension or revocation of its certification or accreditation
12-18    with any applicable national accrediting organization.  Failure of
12-19    the Designated Credential Verification Organization to do so may
12-20    result in the board's assessment of sanctions pursuant to Sec. 7.10
12-21    of this subchapter in addition to denial of an application,
12-22    termination of contract, or revocation or suspension pursuant to
12-23    Sec. 7.08(b).
12-24          Sec. 7.03.  FURNISHING OF DATA TO HEALTH CARE ENTITY. [Not
12-25    later than the 15th business day after the date the board receives
12-26    a request for the data, the board shall make available to a health
 13-1    care entity or its Designated Credentials Verification Organization
 13-2    all core credentials data it collects on a physician, including any
 13-3    correction, update, or modification of that data, if authorized by
 13-4    the physician.]  A health care entity must use the Designated
 13-5    Credentials Verification Organization to obtain core credentials
 13-6    data. The health care entity may use another accredited or
 13-7    certified credentials verification organization to obtain
 13-8    additional verified data it may require to meet its credentialing
 13-9    or clinical privileging requirements or may obtain such data
13-10    utilizing its own resources. This section does not restrict or
13-11    modify the authority of a health care entity to approve or deny an
13-12    original or renewal application for hospital staff membership,
13-13    clinical privileges or managed care network participation pursuant
13-14    to its own criteria. The board, in consultation with the advisory
13-15    committee, shall establish the length of time within which the
13-16    Designated Credentials Verification Organization must respond to a
13-17    request for all core credentials data it has collected on a
13-18    physician or provider including any correction, update, or
13-19    modification of that data.
13-20          Sec. 7.04.  REVIEW OF DATA BY PHYSICIAN OR PROVIDER. (a)  If
13-21    the data obtained from other sources varies substantially from the
13-22    data provided by the physician or provider to the Designated
13-23    Credentials Verification Organization, before releasing a
13-24    physician's or provider's core credentials data from its data bank
13-25    for the first time or following a change in the data from its data
13-26    bank, the [board] Designated Credentials Verification Organization
 14-1    shall provide to the affected physician or provider 15 business
 14-2    days to review the data and request reconsideration or resolution
 14-3    of errors in or omissions from the data. The [board] Designated
 14-4    Credentials Verification Organization shall include with the data
 14-5    any change or clarification made by the physician or provider.
 14-6          (b)  The [board] Designated Credentials Verification
 14-7    Organization shall notify a physician or provider of any change to
 14-8    the physician's  or provider's core credentials data when a change
 14-9    is made or initiated by a person other than the physician or
14-10    provider.
14-11          (c)  A physician or provider may request to review the
14-12    physician's or provider's core credentials data collected by the
14-13    Designated Credentials Verification Organization at any time after
14-14    the initial release of information, but the [board] Designated
14-15    Credentials Verification Organization is not required by virtue of
14-16    a request to hold, release, or modify any information.
14-17          Sec. 7.05.  DATA DUPLICATION PROHIBITED. (a)  A health care
14-18    entity may not collect or attempt to collect duplicate core
14-19    credentials data from a physician or provider for credentialing
14-20    purposes if the information is already on file with the [board]
14-21    Designated Credentials Verification Organization. This section does
14-22    not restrict the right of a health care entity to request
14-23    additional information not included in the core credentials data on
14-24    file with the [board] Designated Credentials Verification
14-25    Organization that is necessary for the health care entity to
14-26    credential the physician or provider pursuant to the health care
 15-1    entity's own standards or criteria. [A health care entity or its
 15-2    Designated Credentials Verification Organization may collect any
 15-3    additional information required by the health care entity's
 15-4    credentialing process from a primary source of that information.]
 15-5          (b)  A state agency may not collect [or attempt to collect]
 15-6    duplicate core credentials data from a physician or provider if the
 15-7    information is already on file with the [board] Designated
 15-8    Credentials Verification Organization.  This section does not
 15-9    restrict the right of a state agency to request additional
15-10    information not included in the core credentials data on file with
15-11    the [board] Designated Credentials Verification Organization that
15-12    the agency considers necessary for its specific credentialing
15-13    purposes.
15-14          (c)  This subtitle does not apply to a professional licensing
15-15    board.
15-16          [(c)] (d)  The [board] Designated Credentials Verification
15-17    Organization [by rule may] shall be authorized to except from
15-18    Subsections (a) and (b) of this section a request for core
15-19    credentials data that is necessary for a health care entity to
15-20    provide temporary privileges during the credentialing process.
15-21          Sec. 7.06.  IMMUNITY. [A health care entity or its designated
15-22    credentials verification organization is immune from liability
15-23    arising from its reliance on data furnished by the board under this
15-24    subchapter.] (a)  The following are immune from civil liability:
15-25                (1)  A health care entity that credentials a physician
15-26    or provider based on data furnished by the Designated Credentials
 16-1    Verification Organization.
 16-2                (2)  A member, employee, or agent of the board who
 16-3    takes an action or makes a recommendation within the scope of the
 16-4    functions of the board provided under this subchapter if that
 16-5    member, employee, or agent acts without malice and in the
 16-6    reasonable belief that the action or recommendation is warranted by
 16-7    the facts known to that person.
 16-8          [Sec. 7.07.  RULES. The board shall adopt rules as necessary
 16-9    to develop and implement the standardized credentials verification
16-10    program established by this subchapter.]
16-11          Sec. [7.08] 7.07.  CONFIDENTIALITY. (a) The information
16-12    collected, transferred, transmitted, maintained, or stored by the
16-13    Designated Credentials Verification Organization under this
16-14    subchapter is privileged and confidential and not subject to
16-15    discovery, subpoena, or other means of legal compulsion for its
16-16    release or to disclosure under Chapter 552, Government Code, except
16-17    as otherwise provided by this subchapter.
16-18          (b)  If a Designated Credentialing Verification Organization
16-19    fails to meet its contractual obligations, all core credentials
16-20    data, records and other information collected, maintained or stored
16-21    by that Designated Credentialing Verification Organization shall be
16-22    transferred to the board and shall be considered privileged and
16-23    confidential and not subject to discovery, subpoena, or other means
16-24    of legal compulsion for its release or to disclosure under Chapter
16-25    552, Government Code, except as otherwise provided by this
16-26    subchapter.  The board, in consultation with the advisory
 17-1    committee, shall reassign all core credentials data, records and
 17-2    other information collected to a Designated Credentialing
 17-3    Verification Organization selected by the board and advisory
 17-4    committee.
 17-5          (c)  A Designated Credentialing Verification Organization
 17-6    shall be prohibited from releasing a physician's or provider's core
 17-7    credentials data without authorization to any entity other than the
 17-8    health care entity authorized by the physician or provider to
 17-9    collect such data or to a national accrediting body certifying or
17-10    accrediting the Designated Credentialing Verification Organization.
17-11          (d)  A health care entity shall be prohibited from
17-12    transferring a physician's or provider's core credentials data to a
17-13    health care entity's affiliate company or any other company
17-14    associated with the health care entity unless the physician or
17-15    provider specifically authorizes the release of such information.
17-16          Sec. [7.09.] 7.08  [USE OF INDEPENDENT CONTRACTOR. The board
17-17    may contract with an independent contractor to collect, verify,
17-18    maintain, store, or release information.  The contract must provide
17-19    for board oversight and for the confidentiality of the information.
17-20    If the board contracts with an independent entity that is not a
17-21    governmental unit to carry out the provisions of this subchapter,
17-22    the independent entity is not immune from liability.] STANDARDS AND
17-23    REGISTRATION. (a)  It is the intent of the legislature that the
17-24    board and advisory committee maximize the use of private resources
17-25    in administering the credentialing verification system created
17-26    under this chapter.  In administering the system, the board, in
 18-1    consultation with the advisory committee, shall contract with one
 18-2    regionally based accredited credentials verification organization.
 18-3    More than one region may be established by the board, in
 18-4    consultation with the advisory committee, but shall not exceed four
 18-5    regions within the State of Texas.  The board, in consultation with
 18-6    the advisory committee, may not exceed more than one accredited
 18-7    credentials verification organization per region.  The board, in
 18-8    consultation with the advisory committee, will coordinate procuring
 18-9    and selecting one contractor per region as defined in a memorandum
18-10    of understanding with the General Services Commission.  The General
18-11    Services Commission shall assist the board and advisory committee
18-12    with the design, development and administration of the contract
18-13    with the Designated Credentialing Verification Organization.
18-14          (b)  The board, in consultation with the advisory committee,
18-15    may charge the Designated Credentials Verification Organizations a
18-16    reasonable registration fee and registration renewal fee not to
18-17    exceed an amount sufficient to cover its actual expenses in
18-18    providing and enforcing such registration.  The board, in
18-19    consultation with the advisory committee, shall establish by rule
18-20    for biennial renewal of such registration.  If the board, in
18-21    consultation with the advisory committee, determines that a
18-22    Designated Credentials Verification Organization fails to maintain
18-23    full accreditation or certification, provide data as authorized by
18-24    the physician or provider, or comply with the prohibition against
18-25    collection of duplicate core credentials data from a provider or
18-26    physician, the board, in consultation with the advisory committee
 19-1    may deny an application for renewal of registration, revoke,
 19-2    suspend registration or terminate the contract.
 19-3          (c)  If the board determines that a Designated Credentials
 19-4    Verification Organization is insolvent, fails to meet its
 19-5    contractual obligations or fails to meet the standards set forth
 19-6    under Sec. 7.08(a), the board, in consultation with the advisory
 19-7    committee, may terminate the contract and reassign the Designated
 19-8    Credentials Verification Organization's duties and responsibilities
 19-9    to another Designated Credentials Verification Organization
19-10    selected by the board and advisory committee.  The General Services
19-11    Commission shall assist the board and advisory committee with the
19-12    reassignment of a contract.  Such information transferred to the
19-13    board and advisory committee for reassignment shall be subject to
19-14    Sec. 7.07 of this subchapter.
19-15          (d)  The board, in consultation with the advisory committee
19-16    and with assistance from the General Services Commission, shall
19-17    procure its contract with the Designated Credentials Verification
19-18    Organizations through a competitive procurement process in
19-19    compliance with all applicable federal and state laws or
19-20    regulations.
19-21          Sec. [7.10.] 7.09.  FEES FOR HEALTH CARE ENTITIES ACCESSING
19-22    INFORMATION. (a)  The board, in consultation with the advisory
19-23    committee, shall charge and collect reasonable fees from a health
19-24    care entity accessing information from a Designated Credentials
19-25    Verification Organization.  Such fees shall be in amounts necessary
19-26    to cover the cost of operating and administering this subchapter.
 20-1    [charge and collect fees in amounts necessary to cover its cost of
 20-2    operating and administering its duties and functions under this
 20-3    subchapter.]
 20-4          (b)  The board, in consultation with the advisory committee,
 20-5    may waive a fee for a state agency that is required to obtain core
 20-6    credentials data from the [board] Designated Credentials
 20-7    Verification Organization and that is prohibited by Section 7.05 of
 20-8    this Act from collecting duplicate data.
 20-9          Sec. 7.10.  SANCTIONS FOR FAILURE TO PERFORM. (a)  The board,
20-10    in consultation with the advisory committee, shall impose sanctions
20-11    against physicians and providers for failure to meet the
20-12    performance requirements set forth under this subchapter.
20-13          (b)  The board, in consultation with the advisory committee,
20-14    shall impose sanctions against the Designated Credentialing
20-15    Verification Organization for failure to meet the collection and
20-16    performance requirements set forth under this subchapter.
20-17          (c)  The board, in consultation with the advisory committee,
20-18    shall adopt rules necessary to implement this section.
20-19          Sec. 7.11.  GIFTS, GRANTS, AND DONATIONS. In addition to any
20-20    fees paid to the board or money appropriated to the board, the
20-21    board may receive and accept a gift, grant, donation, or other
20-22    thing of value from any source, including the United States or a
20-23    private source.
20-24          Sec. 7.12.  STATUTES RELATING TO CREDENTIALING. (a)  This
20-25    subchapter shall supercede all other statutes and rules as set
20-26    forth under Tex. Ins. Code, Art. 20A., relating to credentialing,
 21-1    recredentialing and primary verification.
 21-2          Sec. 7.13.  COMPLAINTS AGAINST A DESIGNATED CREDENTIALS
 21-3    VERIFICATION ORGANIZATION. (a)  The Designated Credentials
 21-4    Verification Organization shall report quarterly to the board and
 21-5    advisory committee all complaints received from physicians,
 21-6    providers and health care entities.
 21-7          (b)  The Designated Credentials Verification Organization
 21-8    shall develop a form to standardize information concerning
 21-9    complaints made to the Designated Credentials Verification
21-10    Organization.
21-11          (c)  The Designated Credentials Verification Organization
21-12    shall prescribe information to be provided to a physician, provider
21-13    or health care entity when a complaint is made by a physician,
21-14    provider or health care entity.
21-15          (d)  The Designated Credentials Verification Organization
21-16    shall provide reasonable assistance to a person who wishes to file
21-17    a complaint with the Designated Credentials Verification
21-18    Organization.
21-19          SECTION 3.  The Texas State Board of Medical Examiners shall
21-20    implement this Act only if the legislature appropriates money
21-21    specifically for that purpose.  If the legislature does not
21-22    appropriate money specifically for that purpose, the board may
21-23    implement this Act using other appropriations, gifts, grants, or
21-24    donations available for that purpose.
21-25          SECTION 4.  (a)  Except as provided by Section 3 of this Act,
21-26    not later than September 1, [2001] 2002, the [Texas State Board of
 22-1    Medical Examiners] board, in consultation with the advisory
 22-2    committee, shall make available the core credentials data required
 22-3    by this Act.
 22-4          (b)  A health care entity is not required to [use]
 22-5    participate in the [board's core credentials data] Standardized
 22-6    Credentials Verification Program until September 1, [2001] 2002 at
 22-7    which time the Designated Credentials Verification Organization
 22-8    from which the health care entity will be collecting core data from
 22-9    must be fully operational, have core data available, and meet all
22-10    contractual and statutory requirements under this subchapter.  If
22-11    the Designated Credentials Verification Organization is not fully
22-12    operational on such date, the health care entity shall not be
22-13    required to collect core data from the Designated Credentials
22-14    Verification Organization until the board, in consultation with the
22-15    advisory committee, determines that the Designated Credentials
22-16    Verification Organization is fully operational.
22-17          SECTION 5.  Amend Art. 20A.37, Texas Insurance Code, as
22-18    follows:
22-19                (1)  The department shall not require site visits for
22-20    initial credentialing to be performed by clinical personnel.
22-21                (2)  The department shall not require that a health
22-22    care entity maintain at all times evidence of current licensure and
22-23    appropriate certificates including but not limited to Medicare
22-24    certification.
22-25                (3)  The department shall require that when a health
22-26    care entity is conducting site visits, the health care entity will
 23-1    evaluate a site's accessibility, appearance, space, medical or
 23-2    dental record keeping practices, availability of appointment and
 23-3    confidentiality procedures but not the appropriateness of
 23-4    equipment.
 23-5                (4)  The department shall not require that site visits
 23-6    in the offices of high volume specialists be performed based on the
 23-7    volume of visits to such offices.
 23-8                (5)  The department shall not require that site visits
 23-9    be performed for recredentialing of any physician or provider.
23-10                (6)  The department shall prohibit health maintenance
23-11    organizations and preferred provider organizations from collecting
23-12    duplicate core credentials data from physicians or providers with
23-13    whom they contract once the core credentials data have been
23-14    collected from the Designated Credentials Verification
23-15    Organization.
23-16          SECTION [5] 6.  This Act takes effect September 1, [1999]
23-17    2001.
23-18          SECTION [6] 7.  The importance of this legislation and the
23-19    crowded condition of the calendars in both houses create an
23-20    emergency and an imperative public necessity that the
23-21    constitutional rule requiring bills to be read on three several
23-22    days in each house be suspended, and this rule is hereby suspended.