1-1                                   AN ACT
 1-2     relating to the regulation and reimbursement of telemedicine
 1-3     medical services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 531.0216, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 531.0216.  PARTICIPATION AND REIMBURSEMENT OF
 1-8     TELEMEDICINE MEDICAL SERVICE PROVIDERS UNDER MEDICAID.  (a)  The
 1-9     commission by rule shall develop and implement a system to
1-10     reimburse providers of services under the state Medicaid program
1-11     for services performed using telemedicine medical services.
1-12           (b)  In developing the system, the commission by rule shall:
1-13                 (1)  review programs and pilot projects in other states
1-14     to determine the most effective method for reimbursement;
1-15                 (2)  establish billing codes and a fee schedule for
1-16     services; [and]
1-17                 (3)  provide for an approval process before a provider
1-18     can receive reimbursement for services;
1-19                 (4)  consult with the Texas Department of Health and
1-20     the telemedicine advisory committee to establish procedures to:
1-21                       (A)  identify clinical evidence supporting
1-22     delivery of health care services using a telecommunications system
1-23     by January 1, 2001;
1-24                       (B)  establish pilot studies for telemedicine
1-25     medical service delivery; and
 2-1                       (C)  annually review health care services,
 2-2     considering new clinical findings, to determine whether
 2-3     reimbursement for particular services should be denied or
 2-4     authorized;
 2-5                 (5)  establish pilot programs in designated areas of
 2-6     this state under which the commission, in administering
 2-7     government-funded health programs, may reimburse a health
 2-8     professional participating in the pilot program for telehealth
 2-9     services authorized under the licensing law applicable to the
2-10     health professional; and
2-11                 (6)  establish a separate provider identifier for
2-12     telemedicine medical services providers.
2-13           (c)  The commission shall encourage physicians, teaching
2-14     hospitals, small rural hospitals, federally qualified health
2-15     centers, and state-owned health care facilities to participate as
2-16     telemedicine medical service providers in the health care delivery
2-17     system.  The commission may not require that a service be provided
2-18     to a patient through telemedicine medical services when the service
2-19     can reasonably be provided by a physician through a face-to-face
2-20     consultation with the patient in the community in which the patient
2-21     resides or works.  This subsection does not prohibit the
2-22     authorization of the provision of any service to a patient through
2-23     telemedicine medical services at the patient's request.
2-24           (d)  Subject to Section 153.004, Occupations Code [5.11,
2-25     Medical Practice Act (Article 4495b, Vernon's Texas Civil
2-26     Statutes)], the commission may adopt rules as necessary to
 3-1     implement this section.
 3-2           (e)  The commission may not reimburse a health care facility
 3-3     for telemedicine medical services provided to a Medicaid recipient
 3-4     unless the facility complies with the minimum standards adopted
 3-5     under Section 531.02161.
 3-6           (f)  Not later than December 1 of each even-numbered year,
 3-7     the commission shall report to the speaker of the house of
 3-8     representatives and the lieutenant governor on the effects of
 3-9     telemedicine medical services on the Medicaid program in the state,
3-10     including the number of physicians and health professionals using
3-11     telemedicine medical services, the geographic and demographic
3-12     disposition of the physicians and health professionals, the number
3-13     of patients receiving telemedicine medical services, the types of
3-14     services being provided, and the cost of utilization of
3-15     telemedicine medical services to the program.
3-16           (g)  In this section:
3-17                 (1)  "Telehealth service" has the meaning assigned by
3-18     Section 57.042, Utilities Code.
3-19                 (2)  "Telemedicine medical service"[, "telemedicine"]
3-20     has the meaning assigned by Section 57.042, Utilities Code.
3-21           SECTION 2.  Subchapter B, Chapter 531, Government Code, is
3-22     amended by adding Section 531.02161 to read as follows:
3-23           Sec. 531.02161.  TELEMEDICINE TECHNOLOGY STANDARDS.  (a)  In
3-24     this section, "telemedicine medical service" has the meaning
3-25     assigned by Section 57.042, Utilities Code.
3-26           (b)  The commission and the Telecommunications Infrastructure
 4-1     Fund Board by joint rule shall establish and adopt minimum
 4-2     standards for an operating system used in the provision of
 4-3     telemedicine medical services by a health care facility
 4-4     participating in the state Medicaid program, including standards
 4-5     for electronic transmission, software, and hardware.
 4-6           (c)  In developing standards under this section, the
 4-7     commission and the Telecommunications Infrastructure Fund Board
 4-8     shall address:
 4-9                 (1)  authentication and authorization of users;
4-10                 (2)  authentication of the origin of information;
4-11                 (3)  the prevention of unauthorized access to the
4-12     system or information;
4-13                 (4)  system security, including the integrity of
4-14     information that is collected, program integrity, and system
4-15     integrity;
4-16                 (5)  maintenance of  documentation about system and
4-17     information usage;
4-18                 (6)  information storage, maintenance, and
4-19     transmission; and
4-20                 (7)  synchronization and verification of patient
4-21     profile data.
4-22           SECTION 3.  Section 531.0217, Government Code, is amended to
4-23     read as follows:
4-24           Sec. 531.0217.  REIMBURSEMENT FOR CERTAIN MEDICAL
4-25     CONSULTATIONS.  (a)  In this section:
4-26                 (1)  "Health professional" means:
 5-1                       (A)  a physician;
 5-2                       (B)  an individual who is:
 5-3                             (i)  licensed or certified in this state to
 5-4     perform health care services; and
 5-5                             (ii)  authorized to assist a physician in
 5-6     providing telemedicine medical services that are delegated and
 5-7     supervised by the physician; or
 5-8                       (C)  a licensed or certified health professional
 5-9     acting within the scope of the license or certification who does
5-10     not perform a telemedicine medical service [an advanced nurse
5-11     practitioner, an allied health professional, a mental health
5-12     professional, a physician, or a physician assistant who is licensed
5-13     in this state].
5-14                 (2)  "Physician" means a person licensed to practice
5-15     medicine in this state under Subtitle B, Title 3, Occupations Code.
5-16     ["Rural county" means a county that:]
5-17                       [(A)  has a population of 50,000 or less; or]
5-18                       [(B)  contains an area that was not designated as
5-19     an urban area by the United States Bureau of the Census according
5-20     to the 1990 federal census and does not have within the boundaries
5-21     of the county a hospital that:]
5-22                             [(i)  is licensed under Chapter 241, Health
5-23     and Safety Code; and]
5-24                             [(ii)  has more than 100 beds.]
5-25                 (3)  "Telehealth service" has the meaning assigned by
5-26     Section 57.042, Utilities Code.
 6-1                 (4)  "Telemedicine medical service" has the meaning
 6-2     assigned by Section 57.042, Utilities Code. ["Rural health
 6-3     facility" means a health facility that is located in a rural county
 6-4     and at least 30 miles from any accredited medical school or any
 6-5     teaching hospital affiliated with an accredited medical school and
 6-6     that is:]
 6-7                       [(A)  a licensed, nonprofit hospital;]
 6-8                       [(B)  a health clinic that is affiliated with:]
 6-9                             [(i)  an accredited medical school;]
6-10                             [(ii)  a teaching hospital that is
6-11     affiliated with an accredited medical school;]
6-12                             [(iii)  a hospital described by Paragraph
6-13     (C); or]
6-14                             [(iv)  a federally qualified health center,
6-15     as defined by 42 U.S.C. Section 1396d(l)(2)(B), as amended; or]
6-16                       [(C)  a hospital that:]
6-17                             [(i)  is licensed under Chapter 241, Health
6-18     and Safety Code;]
6-19                             [(ii)  is owned or operated by a
6-20     municipality, county, hospital district, or hospital authority; and]
6-21                             [(iii)  provides inpatient or outpatient
6-22     services.]
6-23                 [(4)  "Telemedical consultation" means a medical
6-24     consultation for purposes of patient diagnosis or treatment that
6-25     requires the use of advanced telecommunications technology,
6-26     including:]
 7-1                       [(A)  compressed digital interactive video,
 7-2     audio, or data transmission;]
 7-3                       [(B)  clinical data transmission via computer
 7-4     imaging for teleradiology or telepathology; and]
 7-5                       [(C)  other technology that facilitates access in
 7-6     rural counties to health care services or medical specialty
 7-7     expertise.]
 7-8           (b)  The commission by rule shall require each health and
 7-9     human services agency that administers a part of the Medicaid
7-10     program to provide Medicaid reimbursement for a telemedicine
7-11     medical service initiated or [telemedical consultation] provided by
7-12     a physician [licensed in this state who practices in:]
7-13                 [(1)  a rural health facility;]
7-14                 [(2)  an accredited medical school; or]
7-15                 [(3)  a teaching hospital that is affiliated with an
7-16     accredited medical school].
7-17           (c)  The commission shall ensure that reimbursement is
7-18     provided only for a telemedicine medical service initiated or
7-19     [consultation] provided by a physician [described in Subsection (b)
7-20     to a health professional who practices in a rural county].
7-21           (d)  The commission shall require reimbursement for a
7-22     telemedicine medical service [telemedical consultation] at the same
7-23     rate as the Medicaid program reimburses for a comparable in-person
7-24     medical service [consultation].  A request for reimbursement may
7-25     not be denied solely because an in-person medical service
7-26     [consultation] between a physician and a patient did not occur.
 8-1           (e)  A health care facility that receives reimbursement under
 8-2     this section for a telemedicine medical service [consultations]
 8-3     provided by a physician [physicians] who practices [practice] in
 8-4     that facility or [and] a health professional who participates in a
 8-5     telemedicine medical service [obtains consultations] under this
 8-6     section shall establish quality of care protocols and patient
 8-7     confidentiality guidelines to ensure that the telemedicine medical
 8-8     service meets [telemedical consultations meet] legal requirements
 8-9     and acceptable patient care standards.
8-10           (f)  The commission may not require a telemedicine medical
8-11     service [telemedical consultation] if an in-person consultation
8-12     with a physician is reasonably available where the patient resides
8-13     or works.  The commission shall require facilities and providers of
8-14     telemedicine medical services to make a good faith effort to
8-15     identify and coordinate with existing providers to preserve and
8-16     protect existing health care systems and medical relationships in
8-17     an area.
8-18           (g)  If a patient receiving a telemedicine medical service
8-19     has a primary care physician or provider and consents to the
8-20     notification, the commission shall require that the primary care
8-21     physician or provider be notified of the telemedicine medical
8-22     service for the purpose of sharing medical information.
8-23           (h)  The commission in consultation with the Texas State
8-24     Board of Medical Examiners shall monitor and regulate the use of
8-25     telemedicine medical services to ensure compliance with this
8-26     section.  In addition to any other method of enforcement, the
 9-1     commission may use a corrective action plan to ensure compliance
 9-2     with this section.
 9-3           (i)  The Texas State Board of Medical Examiners, in
 9-4     consultation with the commission, as appropriate, may adopt rules
 9-5     as necessary to:
 9-6                 (1)  ensure that appropriate care, including quality of
 9-7     care, is provided to patients who receive telemedicine medical
 9-8     services [that are provided through a telemedical consultation];
 9-9     [and]
9-10                 (2)  prevent abuse and fraud through the use of
9-11     telemedicine medical services [telemedical consultations],
9-12     including rules relating to filing of claims and records required
9-13     to be maintained in connection with telemedicine;
9-14                 (3)  establish supervisory requirements for a service
9-15     delegated to and performed by an individual who is not a physician;
9-16     and
9-17                 (4)  define those situations when a face-to-face
9-18     consultation with a physician is required after a telemedicine
9-19     medical service.
9-20           (j) [(h)]  The commissioner shall establish an advisory
9-21     committee to coordinate state telemedicine efforts and assist the
9-22     commission in:
9-23                 (1)  evaluating [developing] policies for telemedicine
9-24     medical services under Section 531.0216 and this section;
9-25                 (2)  monitoring the types of programs receiving
9-26     reimbursement under this section; and
 10-1                (3)  coordinating the activities of state agencies
 10-2    interested in the use of telemedicine medical services [telemedical
 10-3    consultations under this section].
 10-4          (k)  This section does not affect any requirement relating
 10-5    to:
 10-6                (1)  a federally qualified health center;
 10-7                (2)  a rural health clinic; or
 10-8                (3)  physician delegation of the authority to carry out
 10-9    or sign prescription drug orders to an advanced practice nurse or
10-10    physician assistant.
10-11          SECTION 4.  Subchapter D, Chapter 62, Health and Safety Code,
10-12    is amended by adding Section 62.157 to read as follows:
10-13          Sec. 62.157.  TELEMEDICINE MEDICAL SERVICES.  (a)  In
10-14    providing covered benefits to a child, a health plan provider must
10-15    permit benefits to be provided through telemedicine medical
10-16    services in accordance with policies developed by the commission.
10-17          (b)  The policies must provide for:
10-18                (1)  the availability of covered benefits appropriately
10-19    provided through telemedicine medical services that are comparable
10-20    to the same types of covered benefits provided without the use of
10-21    telemedicine medical services; and
10-22                (2)  the availability of covered benefits for different
10-23    services performed by multiple health care providers during a
10-24    single session of telemedicine medical services, if the commission
10-25    determines that delivery of the covered benefits in that manner is
10-26    cost-effective in comparison to the costs that would be involved in
 11-1    obtaining the services from providers without the use of
 11-2    telemedicine medical services, including the costs of
 11-3    transportation and lodging and other direct costs.
 11-4          (c)  In developing the policies required by Subsection (a),
 11-5    the commission shall consult with the telemedicine advisory
 11-6    committee.
 11-7          (d)  In this section, "telemedicine medical service" has the
 11-8    meaning assigned by Section 57.042, Utilities Code.
 11-9          SECTION 5.  Section 1, Article 21.53F, Insurance Code, as
11-10    added by Section 1, Chapter 880, Acts of the 75th Legislature,
11-11    Regular Session, 1997,  is amended to read as follows:
11-12          Sec. 1.  DEFINITIONS.  In this article:
11-13                (1)  "Health benefit plan" means a plan described by
11-14    Section 2 of this article.
11-15                (2)  "Health professional" means:
11-16                      (A)  a physician;
11-17                      (B)  an individual who is:
11-18                            (i)  licensed or certified in this state to
11-19    perform health care services; and
11-20                            (ii)  authorized to assist a physician in
11-21    providing telemedicine medical services that are delegated and
11-22    supervised by the physician; or
11-23                      (C)  a licensed or certified health professional
11-24    acting within the scope of the license or certification who does
11-25    not perform a telemedicine medical service.
11-26                (3)  "Physician" means a person licensed to practice
 12-1    medicine in this state under Subtitle B, Title 3, Occupations Code.
 12-2                (4)  "Telehealth service" has the meaning assigned by
 12-3    Section 57.042, Utilities Code.
 12-4                (5)  "Telemedicine medical service" has the meaning
 12-5    assigned by Section 57.042, Utilities Code. ["Telemedicine" means
 12-6    the use of interactive audio, video, or other electronic media to
 12-7    deliver health care.  The term includes the use of electronic media
 12-8    for diagnosis, consultation, treatment, transfer of medical data,
 12-9    and medical education.  The term does not include services
12-10    performed using a telephone or facsimile machine.]
12-11          SECTION 6.  Section 3, Article 21.53F, Insurance Code, as
12-12    added by Section 1, Chapter 880, Acts of the 75th Legislature,
12-13    Regular Session, 1997, is amended to read as follows:
12-14          Sec. 3.  COVERAGE FOR TELEMEDICINE MEDICAL SERVICES AND
12-15    TELEHEALTH SERVICES.  (a)  A health benefit plan may not exclude a
12-16    telemedicine medical service or a telehealth service from coverage
12-17    under the plan solely because the service is [provided through
12-18    telemedicine and] not provided through a face-to-face consultation.
12-19          (b)  Benefits [for a service provided through telemedicine]
12-20    required under this article may be made subject to a deductible,
12-21    copayment, or coinsurance requirement.  A deductible, copayment, or
12-22    coinsurance applicable to a particular service provided through
12-23    telemedicine medical services or telehealth services may not exceed
12-24    the deductible, copayment, or coinsurance required by the health
12-25    benefit plan for a comparable medical [the same] service provided
12-26    through a face-to-face consultation.
 13-1          SECTION 7.  Section 4, Article 21.53F, Insurance Code, as
 13-2    added by Section 1, Chapter 880, Acts of the 75th Legislature,
 13-3    Regular Session, 1997, is amended to read as follows:
 13-4          Sec. 4.  INFORMED CONSENT.  A treating physician or [other]
 13-5    health professional [care provider] who provides or facilitates the
 13-6    use of telemedicine medical services or telehealth services shall
 13-7    ensure that the informed consent of the patient, or another
 13-8    appropriate person with authority to make health care treatment
 13-9    decisions for the patient, is obtained before telemedicine medical
13-10    services or telehealth services are provided [through
13-11    telemedicine].
13-12          SECTION 8.  Section 5, Article 21.53F, Insurance Code, as
13-13    added by Section 1, Chapter 880, Acts of the 75th Legislature,
13-14    Regular Session, 1997, is amended to read as follows:
13-15          Sec. 5.  CONFIDENTIALITY.  A treating physician or [other]
13-16    health professional [care provider] who provides or facilitates the
13-17    use of telemedicine medical services or telehealth services shall
13-18    ensure that the confidentiality of the patient's medical
13-19    information is maintained as required by Chapter 159, Occupations
13-20    Code [Section 5.08, Medical Practice Act (Article 4495b, Vernon's
13-21    Texas Civil Statutes)], or other applicable law.
13-22          SECTION 9.  Subsection (b), Section 6, Article 21.53F,
13-23    Insurance Code, as added by Section 1, Chapter 880, Acts of the
13-24    75th Legislature, Regular Session, 1997, is amended to read as
13-25    follows:
13-26          (b)  The Texas State Board of Medical Examiners, in
 14-1    consultation with the commissioner, as appropriate, may adopt rules
 14-2    as necessary to:
 14-3                (1)  ensure that appropriate care, including quality of
 14-4    care, is provided to patients who receive telemedicine medical
 14-5    services [that are provided through telemedicine]; [and]
 14-6                (2)  prevent abuse and fraud through use of
 14-7    telemedicine medical services, including rules relating to filing
 14-8    of claims and records required to be maintained in connection with
 14-9    telemedicine medical services;
14-10                (3)  ensure adequate supervision of health
14-11    professionals who are not physicians and who provide telemedicine
14-12    medical services;
14-13                (4)  establish the maximum  number of health
14-14    professionals who are not physicians that a physician may supervise
14-15    through a telemedicine medical service; and
14-16                (5)  require a face-to-face consultation between a
14-17    patient and a physician providing a telemedicine medical service
14-18    within a certain number of days following an initial telemedicine
14-19    medical service only if the physician has never seen the patient.
14-20          SECTION 10.  Section 153.004, Occupations Code, is amended to
14-21    read as follows:
14-22          Sec. 153.004.  RULES REGARDING TELEMEDICINE MEDICAL SERVICES.
14-23    (a)  In consultation with the Health and Human Services Commission
14-24    and the commissioner of insurance, the board may adopt rules as
14-25    necessary to:
14-26                (1)  ensure that appropriate care is provided to
 15-1    Medicaid and Medicare patients who receive telemedicine medical
 15-2    services [that are provided through telemedicine]; and
 15-3                (2)  prevent abuse and fraud in the use of telemedicine
 15-4    medical services for Medicaid and Medicare patients.
 15-5          (b)  The rules adopted under Subsection [Section] (a)(2) may
 15-6    include rules relating to filing of claims and records required to
 15-7    be maintained in relation to telemedicine medical services.
 15-8          SECTION 11.  Section 57.042, Utilities Code, is amended by
 15-9    amending Subdivision (11) and adding Subdivision (12) to read as
15-10    follows:
15-11                (11)  "Telehealth service" means a health service,
15-12    other than a telemedicine medical service, delivered by a licensed
15-13    or certified health professional acting within the scope of the
15-14    health professional's license or certification who does not perform
15-15    a telemedicine medical service that requires the use of advanced
15-16    telecommunications technology, other than by telephone or
15-17    facsimile, including:
15-18                      (A)  compressed digital interactive video, audio,
15-19    or data transmission;
15-20                      (B)  clinical data transmission using computer
15-21    imaging by way of still-image capture and store and forward; and
15-22                      (C)  other technology that facilitates access to
15-23    health care services or medical specialty expertise.
15-24                (12)  "Telemedicine medical service" means a health
15-25    care service initiated by a physician or provided by a health
15-26    professional acting under physician delegation and supervision for
 16-1    purposes of patient assessment by a health professional, diagnosis
 16-2    or consultation by a physician, treatment, or the transfer of
 16-3    medical data, that requires the use of advanced telecommunications
 16-4    technology, other than by telephone or facsimile, including:
 16-5                      (A)  compressed digital interactive video, audio,
 16-6    or data transmission;
 16-7                      (B)  clinical data transmission using computer
 16-8    imaging by way of still-image capture; and
 16-9                      (C)  other technology that facilitates access to
16-10    health care services or medical specialty expertise[:]
16-11                      [(A)  means medical services delivered by
16-12    telecommunications technologies to rural or underserved public
16-13    not-for-profit health care facilities or primary health care
16-14    facilities in collaboration with an academic health center and an
16-15    associated teaching hospital or tertiary center or with another
16-16    public not-for-profit health care facility; and]
16-17                      [(B)  includes consultive services, diagnostic
16-18    services, interactive video consultation, teleradiology,
16-19    telepathology, and distance education for working health care
16-20    professionals].
16-21          SECTION 12.  Section 57.045, Utilities Code, is amended by
16-22    adding Subsection (e) to read as follows:
16-23          (e)  The board shall establish an assistance program to
16-24    provide education concerning the telecommunications infrastructure
16-25    fund and to facilitate access to funds and programs under this
16-26    subchapter by health care facilities and by physicians licensed to
 17-1    practice medicine in this state.  The assistance program must
 17-2    include a toll-free telephone number and provide access to
 17-3    information through the Internet.
 17-4          SECTION 13.  Subsection (b), Section 57.046, Utilities Code,
 17-5    is amended to read as follows:
 17-6          (b)  The board shall use money in the qualifying entities
 17-7    account for any purpose authorized by this subchapter, including:
 17-8                (1)  equipment;
 17-9                (2)  wiring;
17-10                (3)  material;
17-11                (4)  program development;
17-12                (5)  training;
17-13                (6)  installation costs; [and]
17-14                (7)  a statewide telecommunications network; and
17-15                (8)  funding an automated system to integrate client
17-16    services and eligibility requirements for health and human services
17-17    across agencies.
17-18          SECTION 14.  Subsections (a) and (b), Section 57.047,
17-19    Utilities Code, are amended to read as follows:
17-20          (a)  The board may award a grant to a project or proposal
17-21    that:
17-22                (1)  provides equipment and infrastructure necessary
17-23    for:
17-24                      (A)  distance learning;
17-25                      (B)  an information sharing program of a library;
17-26    [or]
 18-1                      (C)  telemedicine medical services; or
 18-2                      (D)  telehealth services;
 18-3                (2)  develops and implements the initial or
 18-4    prototypical delivery of a course or other distance learning
 18-5    material;
 18-6                (3)  trains teachers, faculty, librarians, or
 18-7    technicians in the use of distance learning or information sharing
 18-8    materials and equipment;
 18-9                (4)  develops a curriculum or instructional material
18-10    specially suited for telecommunications delivery;
18-11                (5)  provides electronic information; or
18-12                (6)  establishes or carries out an information sharing
18-13    program.
18-14          (b)  The board may award a loan to a project or proposal to
18-15    acquire equipment needed for distance learning and telemedicine
18-16    medical service projects.
18-17          SECTION 15.  Subchapter C, Chapter 57, Utilities Code, is
18-18    amended by adding Section 57.0475 to read as follows:
18-19          Sec. 57.0475.  ELIGIBILITY FOR GRANTS TO HEALTH CARE
18-20    FACILITIES.  (a)  The board may award a grant under Section
18-21    57.047(a)(1)(C) only to a health care facility that:
18-22                (1)  is a hospital or other entity, including a health
18-23    clinic, that:
18-24                      (A)  is supported by local or regional tax
18-25    revenue;
18-26                      (B)  is a certified nonprofit health corporation
 19-1    under federal law; or
 19-2                      (C)  is an ambulatory health care center; or
 19-3                (2)  meets the criteria adopted by the board and the
 19-4    Health and Human Services Commission under Subsection (b).
 19-5          (b)  The board and the Health and Human Services Commission
 19-6    shall jointly adopt rules prescribing the criteria a health care
 19-7    facility not described by Subsection (a)(1) must meet to be
 19-8    eligible to receive a grant under Section 57.047(a)(1)(C).  In
 19-9    determining the criteria, the board and commission shall prioritize
19-10    health care facilities based on:
19-11                (1)  the amount of charity care provided by each
19-12    facility during the year preceding the year in which the facility
19-13    applies for a grant; and
19-14                (2)  the number of Medicaid patients and patients
19-15    enrolled in the state child health plan treated by each facility
19-16    during the year preceding the year in which the facility applies
19-17    for a grant.
19-18          (c)  The criteria adopted under Subsection (b) must provide
19-19    that a health care facility is not eligible to receive a grant
19-20    under Section 57.047(a)(1)(C) if the health care facility did not
19-21    provide any charity care or treat any patients described by
19-22    Subsection (b)(2) during the year preceding the year in which the
19-23    facility applies for a grant.
19-24          SECTION 16.  Subsection (a), Section 58.253, Utilities Code,
19-25    is amended to read as follows:
19-26          (a)  On customer request, an electing company shall provide
 20-1    private network services to:
 20-2                (1)  an educational institution;
 20-3                (2)  a library;
 20-4                (3)  a nonprofit telemedicine center;
 20-5                (4)  a public or not-for-profit hospital;
 20-6                (5)  a project that would have been eligible to be
 20-7    funded by the telecommunications infrastructure fund under
 20-8    Subchapter C, Chapter 57, as that subchapter existed on January 1,
 20-9    2001; or
20-10                (6)  a legally constituted consortium or group of
20-11    entities listed in this subsection.
20-12          SECTION 17.  Subchapter B, Chapter 32, Human Resources Code,
20-13    is amended by adding Section 32.053 to read as follows:
20-14          Sec. 32.053.  HOME TELEMEDICINE PILOT PROGRAM.  (a)  The
20-15    Health and Human Services Commission shall establish a pilot
20-16    program under which certain recipients of medical assistance
20-17    receive, in addition to other home health care services for which
20-18    the recipients are eligible, home health care services through home
20-19    telemonitoring systems located in the recipients' homes.
20-20          (b)  The Health and Human Services Commission shall implement
20-21    the program in each of the following areas:
20-22                (1)  a rural area;
20-23                (2)  an urban area;
20-24                (3)  a medically underserved area; and
20-25                (4)  an area that adjoins this state's international
20-26    border.
 21-1          (c)  The Health and Human Services Commission may reimburse a
 21-2    home and community support services agency participating in the
 21-3    program for services provided by the agency through home
 21-4    telemonitoring systems in an amount not to exceed $300 a month for
 21-5    each home at which services are provided.
 21-6          (d)  The Health and Human Services Commission shall adopt
 21-7    eligibility criteria for the program.  The criteria must:
 21-8                (1)  require that a program participant:
 21-9                      (A)  be:
21-10                            (i)  diagnosed with a chronic illness,
21-11    including hypertension, congestive heart failure, diabetes
21-12    mellitus, chronic obstructive pulmonary disease, or a chronic
21-13    wound;
21-14                            (ii)  diagnosed with depression, if it is
21-15    secondary to a chronic illness; or
21-16                            (iii)  in need of posthospitalization care
21-17    or care related to receipt of an organ transplant, regardless of
21-18    whether the care is needed before or after the transplant;
21-19                      (B)  be able to use home telemonitoring system
21-20    equipment or be assisted by a regular caregiver who is willing and
21-21    able to use that equipment;
21-22                      (C)  provide written consent to receipt of home
21-23    health care services through a home telemonitoring system; and
21-24                      (D)  be under the care of a physician who
21-25    consents to the participant's receipt of home health care services
21-26    through a home telemonitoring system; and
 22-1                (2)  prohibit a recipient of medical assistance from
 22-2    participating in the program if the recipient:
 22-3                      (A)  is diagnosed with a terminal condition and
 22-4    expected to live for less than six months; or
 22-5                      (B)  requires daily, in-person, home health care
 22-6    visits or invasive procedures.
 22-7          (e)  The Health and Human Services Commission shall determine
 22-8    home health care services to be provided to program participants
 22-9    through a home telemonitoring system.  Home health care services
22-10    provided through the system may include:
22-11                (1)  educating a program participant regarding
22-12    self-care and preventive health;
22-13                (2)  monitoring a program participant's compliance with
22-14    medication requirements;
22-15                (3)  monitoring a program participant's vital signs;
22-16                (4)  providing a program participant with counseling
22-17    and social support; and
22-18                (5)  any other service the commission determines is
22-19    appropriate.
22-20          (f)  In designing and implementing the program, the Health
22-21    and Human Services Commission shall ensure that:
22-22                (1)  a program participant receives, for the duration
22-23    of services, at no cost to the participant, home telemonitoring
22-24    system equipment other than a telephone line and telephone that is
22-25    necessary for receipt of home health care services through the
22-26    system;
 23-1                (2)  a program participant or the participant's regular
 23-2    caregiver receives personal training and written instructions in
 23-3    the use and maintenance of the home telemonitoring system
 23-4    equipment;
 23-5                (3)  a program participant's satisfaction with home
 23-6    health care services provided through a home telemonitoring system
 23-7    is frequently monitored and evaluated by the commission;
 23-8                (4)  the quality of home health care services provided
 23-9    through a home telemonitoring system to a program participant is
23-10    frequently monitored and evaluated by the commission; and
23-11                (5)  the home and community support services agency
23-12    that is providing services using home telemonitoring system
23-13    equipment pays for the equipment.
23-14          (g)  The Health and Human Services Commission shall adopt all
23-15    rules necessary for implementation of the program.
23-16          (h)  Not later than December 1, 2004, the Health and Human
23-17    Services Commission shall submit a report to the legislature
23-18    regarding the program that includes:
23-19                (1)  an analysis of:
23-20                      (A)  the program's cost-effectiveness;
23-21                      (B)  the program's effect on the quality of
23-22    health care received by program participants; and
23-23                      (C)  the satisfaction of program participants
23-24    with home health care services provided through home telemonitoring
23-25    systems; and
23-26                (2)  recommendations regarding elimination,
 24-1    continuation, or expansion of the program.
 24-2          (i)  This section expires September 1, 2005.
 24-3          SECTION 18.  Chapter 533, Health and Safety Code, is amended
 24-4    by adding Subchapter E to read as follows:
 24-5                   SUBCHAPTER E.  JAIL DIVERSION PROGRAM
 24-6          Sec. 533.101.  JAIL DIVERSION PILOT PROGRAM.  (a)  The board
 24-7    and department shall develop and implement a pilot program in one
 24-8    rural area and one urban area designed to incorporate audiovisual
 24-9    telecommunications systems to:
24-10                (1)  divert persons with mental illness from the
24-11    criminal justice system, when appropriate treatment services are
24-12    available;
24-13                (2)  provide access to appropriate mental health
24-14    services to persons who have entered the criminal justice system;
24-15    and
24-16                (3)  increase the awareness of law enforcement officers
24-17    and officials to mental health issues that may bring persons with
24-18    mental illness into the criminal justice system.
24-19          (b)  In designing the program, the commission shall employ to
24-20    the greatest extent practicable available electronic information
24-21    systems for the program, including:
24-22                (1)  systems to enable the transmission of booking
24-23    information;
24-24                (2)  computer and software systems to match client data
24-25    to booking information;
24-26                (3)  electronic messaging and notification systems; and
 25-1                (4)  audiovisual teleconferencing or other
 25-2    teleconferencing or telecommunications systems.
 25-3          (c)  The department and participating local mental health
 25-4    authorities, prosecutorial agencies, law enforcement agencies, jail
 25-5    facilities, courts, county or municipal governments, and providers
 25-6    of psychiatric services shall enter into an agreement regarding the
 25-7    procedures to follow in implementing the program and the duties of
 25-8    each participating entity. The participating county shall be
 25-9    responsible for establishing the diversion team as prescribed by
25-10    the department.
25-11          (d)  If appropriate treatment services are not available, a
25-12    person with mental illness does not have to be diverted from the
25-13    criminal justice system.
25-14          Sec. 533.102.  PREBOOKING DIVERSION.  (a)  The pilot program
25-15    shall incorporate a system for diverting a person with mental
25-16    illness from the criminal justice system before the person's
25-17    contact with a law enforcement officer results in:
25-18                (1)  charges being brought against the person; or
25-19                (2)  the person being detained in a jail.
25-20          (b)  The prebooking diversion system shall provide for a law
25-21    enforcement officer or booking center staff member to request a
25-22    mental health or crisis stabilization evaluation of a person by a
25-23    local mental health authority crisis counselor or the equivalent
25-24    through an audiovisual teleconference.  The board by rule shall
25-25    establish procedures for evaluations performed under the system.
25-26          Sec. 533.103.  POSTBOOKING DIVERSION BY COURT.  The pilot
 26-1    program shall incorporate a system for diverting a person with
 26-2    mental illness from the criminal justice system by a court at the
 26-3    person's arraignment or a court hearing.  A court participating in
 26-4    the pilot program may order:
 26-5                (1)  the assessment of a person before the court by the
 26-6    local mental health authority to assess appropriate community
 26-7    mental health treatment options as alternatives to prosecution; and
 26-8                (2)  a person before the court to undertake appropriate
 26-9    psychiatric treatment as a condition of the dismissal of criminal
26-10    charges, deferral of prosecution, bail, or probation.
26-11          Sec. 533.104.  POSTBOOKING DIVERSION FOR PERSON IN JAIL.
26-12    (a)  The pilot program shall incorporate a system to provide
26-13    routine mental health treatment to a person in jail by the local
26-14    mental health authority through an audiovisual teleconferencing
26-15    system.
26-16          (b)  The program must include a jail diversion liaison
26-17    employed by the local mental health authority who shall:
26-18                (1)  determine whether certain jailed individuals are
26-19    eligible for diversion treatment programs; and
26-20                (2)  facilitate the interaction of jail staff and court
26-21    officials to further the program.
26-22          (c)  The local mental health authority must employ a jail
26-23    diversion team to select candidates for diversion into mental
26-24    health treatment based on:
26-25                (1)  the nature of the offense for which the person is
26-26    jailed;
 27-1                (2)  the person's history of incarceration;
 27-2                (3)  the person's mental status;
 27-3                (4)  the availability of community mental health
 27-4    resources appropriate for the person;
 27-5                (5)  public safety factors;
 27-6                (6)  the person's previous performance in and
 27-7    compliance with treatment settings; and
 27-8                (7)  other appropriate factors.
 27-9          Sec. 533.105.  INFORMATION SYSTEM TO SUPPORT POSTBOOKING
27-10    DIVERSION.  (a)  To support the postbooking jail diversion program,
27-11    the pilot program must provide for implementation of an information
27-12    system designed to quickly identify a person with a serious mental
27-13    illness who has entered the local jail system.
27-14          (b)  The pilot program must provide for electronic
27-15    transmission of information concerning all admissions to jails
27-16    participating in the program to an information system at the local
27-17    mental health authority.
27-18          (c)  The local mental health authority shall ensure that the
27-19    authority's information system automatically:
27-20                (1)  identifies whether persons admitted to jail are
27-21    current or former clients of the authority using the person's name,
27-22    date of birth, social security number, sex, or other identifying
27-23    information; and
27-24                (2)  notifies a jail diversion team and case manager at
27-25    the authority when a client or former client of the authority is
27-26    identified as having been admitted to jail.
 28-1          Sec. 533.106.  REPORTS TO LEGISLATURE.  The board shall
 28-2    evaluate the pilot program under this subchapter and publish a
 28-3    report on the performance of the program in providing needed
 28-4    treatment and in saving or increasing costs to the jail and mental
 28-5    health systems.  The board shall deliver the report to the
 28-6    governor, lieutenant governor, and speaker of the house of
 28-7    representatives not later than November 1 of each even-numbered
 28-8    year.
 28-9          Sec. 533.107.  EXPIRATION.  This subchapter expires September
28-10    1, 2005.
28-11          SECTION 19.  (a)  For purposes of this section, a licensed
28-12    dentist may delegate orally, in writing, or through advanced audio
28-13    and video telecommunications services a service, task, or procedure
28-14    to a dental hygienist who is under the supervision and
28-15    responsibility of the dentist, if:
28-16                (1)  the dental hygienist is licensed to perform the
28-17    service, task, or procedure;
28-18                (2)  the supervising dentist examines the patient
28-19    either in person or through advanced audio and video
28-20    telecommunications services:
28-21                      (A)  at the time the service, task, or procedure
28-22    is performed by the dental hygienist; or
28-23                      (B)  during the 12 calendar months preceding the
28-24    date of performance of the service, task, or procedure by the
28-25    dental hygienist; and
28-26                (3)  the dental hygienist does not:
 29-1                      (A)  diagnose a dental disease or ailment;
 29-2                      (B)  prescribe a treatment or a regimen;
 29-3                      (C)  prescribe, order, or dispense medication; or
 29-4                      (D)  perform any procedure that is irreversible
 29-5    or involves the intentional cutting of soft or hard tissue by any
 29-6    means.
 29-7          (b)  In this section:
 29-8                (1)  "Dental professional" means:
 29-9                      (A)  a dentist licensed under Subtitle D, Title
29-10    3, Occupations Code; or
29-11                      (B)  a dental hygienist licensed under Chapter
29-12    262, Occupations Code, practicing under the supervision of a
29-13    dentist.
29-14                (2)  "Student" means a person who is under 19 years of
29-15    age, is enrolled in a public school, and receives dental services
29-16    under Chapter 32, Human Resources Code.
29-17                (3)  "Teledentistry dental services" means a dental
29-18    service that utilizes, in whole or in part, advanced
29-19    telecommunications technology including:
29-20                      (A)  compressed digital interactive video, audio,
29-21    or data transmission;
29-22                      (B)  clinical data transmission via computer
29-23    imaging for teleradiology or telepathology; and
29-24                      (C)  other technology that facilitates access in
29-25    rural and underserved counties to dental services or dental
29-26    specialty expertise.
 30-1          (c)  The Commissioner of Human Services shall appoint a
 30-2    program administrator to administer a pilot program that uses
 30-3    teledentistry and other methods of delivering dental services to
 30-4    provide dental services to students in one public school district
 30-5    in the state.
 30-6          (d)  The program administrator shall establish an advisory
 30-7    committee to assist the program administrator in developing and
 30-8    implementing the pilot program.
 30-9          (e)  In developing the pilot program, the program
30-10    administrator shall design the program in a manner that:
30-11                (1)  increases access to dental services and enhances
30-12    the delivery of dental services to students;
30-13                (2)  ensures the provision of oral health education
30-14    services;
30-15                (3)  provides for effective and appropriate supervision
30-16    by a dentist of other dental professionals providing care under the
30-17    program; and
30-18                (4)  enables the state to determine whether extension
30-19    of the use of teledentistry would improve the delivery of dental
30-20    services.
30-21          (f)  The program administrator shall adopt procedures as
30-22    necessary to:
30-23                (1)  ensure that appropriate care, including quality of
30-24    care, is provided to students who receive teledentistry dental
30-25    services;
30-26                (2)  ensure adequate supervision of dental
 31-1    professionals who are not dentists and who provide teledentistry
 31-2    dental services;
 31-3                (3)  establish the maximum number of dental
 31-4    professionals who are not dentists that a dentist may supervise;
 31-5    and
 31-6                (4)  require a face-to-face consultation with a dentist
 31-7    within a certain number of days following a teledentistry dental
 31-8    service.
 31-9          (g)  Only a teledentistry dental service initiated or
31-10    provided by a licensed dentist in this state may be reimbursed
31-11    under the Medicaid program.  Medicaid reimbursement for a
31-12    teledentistry dental service shall be at the same rate as the
31-13    Medicaid program reimburses for a comparable in-person dental
31-14    service.  A request for reimbursement may not be denied solely
31-15    because an in-person consultation between a dentist or other dental
31-16    professional and a patient did not occur.  Reimbursement for a
31-17    dental hygienist for service shall be made through the supervising
31-18    dentist.
31-19          (h)  A dental hygienist must act under the remote supervision
31-20    of a local dentist.  Both the dentist and the hygienist must be
31-21    located within the boundaries of the school district served by the
31-22    pilot program.
31-23          (i)  Images and assessment information shall be sent by the
31-24    dental hygienist to a supervising dentist either live or by means
31-25    of store and forward technology.  After a dentist has reviewed the
31-26    required information, the dentist may authorize the provision of
 32-1    preventive services by the dental hygienist located at the school.
 32-2          (j)  A dental hygienist participating in the pilot program
 32-3    may initiate screening and assessment services and, under the
 32-4    supervision of a dentist, may perform any procedure the hygienist
 32-5    is authorized to perform under law.
 32-6          (k)  A teledentistry dental service may not be provided if an
 32-7    in-person consultation with a dentist is reasonably available to a
 32-8    student.  Dentists and other dental professionals participating in
 32-9    the pilot program shall make a good faith effort to identify and
32-10    coordinate with existing providers to preserve and protect existing
32-11    dental care systems and dental relationships.
32-12          (l)  The program administrator shall establish a control
32-13    group not to exceed 1,000 students to provide a benchmark for
32-14    measuring the performance of the pilot program.  Each student in
32-15    the control group shall be examined by a dentist, in person, at the
32-16    end of the program to evaluate the effectiveness of teledentistry
32-17    dental services provided during the program.  The examining dentist
32-18    must practice in a dental office located outside the boundaries of
32-19    the school district served by the pilot program.
32-20          (m)  The program administrator shall use the results of the
32-21    pilot program to:
32-22                (1)  determine the efficacy of teledentistry; and
32-23                (2)  determine the effectiveness of teledentistry in
32-24    increasing access to dental services and improving oral health of
32-25    students.
32-26          (n)  A dental professional who provides teledentistry dental
 33-1    services shall ensure that the informed consent of the student or a
 33-2    person authorized to provide consent for the student is obtained
 33-3    before teledentistry dental services are provided.
 33-4          (o)  Students participating in the pilot program must be
 33-5    referred to local dentists for restorative care and monitored to
 33-6    ensure that restorative services are provided.
 33-7          (p)  Not later than December 31, 2002, the program
 33-8    administrator shall submit a report to the legislature containing
 33-9    the following:
33-10                (1)  the number of students who received teledentistry
33-11    dental services;
33-12                (2)  the types of teledentistry dental services
33-13    provided;
33-14                (3)  the cost and level of utilization of teledentistry
33-15    dental services;
33-16                (4)  the effect of the pilot program on school
33-17    absenteeism of students in the control group;
33-18                (5)  a description of improvements in the oral health
33-19    of students in the pilot program; and
33-20                (6)  recommendations for changes in or the expansion of
33-21    the pilot program.
33-22          (q)  This section expires and the advisory committee is
33-23    abolished December 31, 2002.
33-24          SECTION 20.  Not later than October 1, 2001, the Health and
33-25    Human Services Commission and the Telecommunications Infrastructure
33-26    Fund Board shall adopt minimum standards for an operating system
 34-1    used by a health care facility in providing telemedicine medical
 34-2    services to a Medicaid recipient as required by Section 531.02161,
 34-3    Government Code, as added by this Act.
 34-4          SECTION 21.  Not later than January 1, 2002, the Health and
 34-5    Human Services Commission shall adopt rules required by Section
 34-6    531.0217, Government Code, as amended by this Act.
 34-7          SECTION 22.  (a)  The Commissioner of Human Services shall
 34-8    appoint a program administrator for the teledentistry pilot
 34-9    program, as added by Section 19 of this Act, not later than the
34-10    30th day after the effective date of this Act.
34-11          (b)  The program administrator shall appoint an advisory
34-12    committee and shall begin implementing the teledentistry pilot
34-13    program not later than the 30th day after the date the program
34-14    administrator is appointed.
34-15          SECTION 23.  Subdivision (8), Subsection (b), Section 57.046,
34-16    Utilities Code, as added by this Act, expires September 1, 2003.
34-17          SECTION 24.  If before implementing any provision of this Act
34-18    a state agency determines that a waiver or authorization from a
34-19    federal agency is necessary for implementation of that provision,
34-20    the agency affected by the provision shall request the waiver or
34-21    authorization and may delay implementing that provision until the
34-22    waiver or authorization is granted.
34-23          SECTION 25.  This Act takes effect immediately if it receives
34-24    a vote of two-thirds of all the members elected to each house, as
34-25    provided by Section 39, Article III, Texas Constitution.  If this
34-26    Act does not receive the vote necessary for immediate effect, this
 35-1    Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 789 passed the Senate on
         April 18, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting; and that the Senate concurred in House
         amendments on May 18, 2001, by the following vote:  Yeas 30,
         Nays 0, one present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 789 passed the House, with
         amendments, on May 11, 2001, by the following vote:  Yeas 133,
         Nays 0, one present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor