1-1                                   AN ACT
 1-2     relating to the application of technology in providing certain
 1-3     health services, including certain telemedicine and telehealth
 1-4     services.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter B, Chapter 531, Government Code, is
 1-7     amended by adding Section 531.055 to read as follows:
 1-8           Sec. 531.055.  PILOT PROJECTS RELATING TO TECHNOLOGY
 1-9     APPLICATIONS.  (a)  Notwithstanding any other law, the commission
1-10     may establish one or more pilot projects through which
1-11     reimbursement under the medical assistance program under Chapter
1-12     32, Human Resources Code, is made to demonstrate the applications
1-13     of technology in providing services under that program.
1-14           (b)  A pilot project established under this section may
1-15     relate to providing rehabilitation services, services for the aging
1-16     or disabled, or long-term care services, including community care
1-17     services and support.
1-18           (c)  Notwithstanding an eligibility requirement prescribed by
1-19     any other law or rule, the commission may establish requirements
1-20     for a person to receive services provided through a pilot project
1-21     under this section.
1-22           (d)  Receipt of services provided through a pilot project
1-23     under this section does not entitle the recipient to other services
1-24     under a government-funded health program.
1-25           (e)  The commission may set a maximum enrollment limit for a
 2-1     pilot project established under this section.
 2-2           SECTION 2.  Subchapter B, Chapter 531, Government Code, is
 2-3     amended by adding Section 531.02161 to read as follows:
 2-4           Sec. 531.02161.  MEDICAID SERVICES PROVIDED THROUGH
 2-5     TELEMEDICINE MEDICAL SERVICES AND TELEHEALTH SERVICES TO CHILDREN
 2-6     WITH SPECIAL HEALTH CARE NEEDS.  (a)  In this section, "child with
 2-7     special health care needs" has the meaning assigned by Section
 2-8     35.0022, Health and Safety Code.
 2-9           (b)  The commission by rule shall establish policies that
2-10     permit reimbursement under the state Medicaid and children's health
2-11     insurance program for services provided through telemedicine
2-12     medical services and telehealth services to children with special
2-13     health care needs.
2-14           (c)  The policies required under this section must:
2-15                 (1)  be designed to:
2-16                       (A)  prevent unnecessary travel and encourage
2-17     efficient use of telemedicine medical services and telehealth
2-18     services for children with special health care needs in all
2-19     suitable circumstances; and
2-20                       (B)  ensure in a cost-effective manner the
2-21     availability to a child with special health care needs of services
2-22     appropriately performed using telemedicine medical services and
2-23     telehealth services that are comparable to the same types of
2-24     services available to that child without the use of telemedicine
2-25     medical services and telehealth services; and
2-26                 (2)  provide for reimbursement of multiple providers of
 3-1     different services who participate in a single telemedicine medical
 3-2     services and telehealth services session for a child with special
 3-3     health care needs, if the commission determines that reimbursing
 3-4     each provider for the session is cost-effective in comparison to
 3-5     the costs that would be involved in obtaining the services from
 3-6     providers without the use of telemedicine medical services and
 3-7     telehealth services, including the costs of transportation and
 3-8     lodging and other direct costs.
 3-9           SECTION 3.  Subchapter B, Chapter 531, Government Code, is
3-10     amended by adding Sections 531.02171 and 531.02172 to read as
3-11     follows:
3-12           Sec. 531.02171.  TELEMEDICINE MEDICAL SERVICES AND TELEHEALTH
3-13     SERVICES PILOT PROGRAMS.  (a)  In this section:
3-14                 (1)  "Health professional" means:
3-15                       (A)  a physician;
3-16                       (B)  an individual who is licensed or certified
3-17     in this state to perform health care services and who is authorized
3-18     to assist a physician in providing telemedicine medical services
3-19     that are delegated and supervised by the physician; or
3-20                       (C)  a licensed or certified health professional
3-21     acting within the scope of the license or certification who does
3-22     not perform a telemedicine medical service.
3-23                 (2)  "Physician" means a person licensed to practice
3-24     medicine in this state under Subtitle B, Title 3, Occupations Code.
3-25                 (3)  "Telehealth service" has the meaning assigned by
3-26     Section 57.042, Utilities Code.
 4-1                 (4)  "Telemedicine medical service" has the meaning
 4-2     assigned by Section 57.042, Utilities Code.
 4-3           (b)  The commission shall establish pilot programs in
 4-4     designated areas of this state under which the commission, in
 4-5     administering government-funded health programs, may reimburse a
 4-6     health professional participating in the pilot program for
 4-7     telemedicine medical services or telehealth services authorized
 4-8     under the licensing law applicable to the health professional.
 4-9     Each pilot program established before January 1, 2003, must provide
4-10     services in areas of this state that are not more than 150 miles
4-11     from the border between this state and the United Mexican States.
4-12           (c)  In developing and operating a pilot program under this
4-13     section, the commission shall:
4-14                 (1)  solicit and obtain support for the program from
4-15     local officials and the medical community;
4-16                 (2)  focus on enhancing health outcomes in the area
4-17     served by the pilot program through increased access to medical or
4-18     health care services, including:
4-19                       (A)  health screenings;
4-20                       (B)  prenatal care;
4-21                       (C)  medical or surgical follow-up visits;
4-22                       (D)  periodic consultation with specialists
4-23     regarding chronic disorders;
4-24                       (E)  triage and pretransfer arrangements; and
4-25                       (F)  transmission of diagnostic images or data;
4-26                 (3)  establish quantifiable measures and expected
 5-1     health outcomes for each authorized telemedicine medical service or
 5-2     telehealth service;
 5-3                 (4)  consider condition-specific applications of
 5-4     telemedicine medical services or telehealth services, including
 5-5     applications for:
 5-6                       (A)  pregnancy;
 5-7                       (B)  diabetes;
 5-8                       (C)  heart disease; and
 5-9                       (D)  cancer; and
5-10                 (5)  demonstrate that the provision of services
5-11     authorized as telemedicine medical services or telehealth services
5-12     will not adversely affect the delivery of traditional medical
5-13     services or other health care services within the area served by
5-14     the pilot program.
5-15           Sec. 531.02172.  TELEMEDICINE ADVISORY COMMITTEE.  (a)  The
5-16     commissioner shall establish an advisory committee to assist the
5-17     commission in:
5-18                 (1)  evaluating policies for telemedical consultations
5-19     under Section 531.0217;
5-20                 (2)  evaluating policies for telemedicine medical
5-21     service or telehealth service pilot programs established under
5-22     Section 531.02171;
5-23                 (3)  ensuring the efficient and consistent development
5-24     and use of telecommunication technology for telemedical
5-25     consultations and telemedicine medical services or telehealth
5-26     services reimbursed under government-funded health programs;
 6-1                 (4)  monitoring the types of programs receiving
 6-2     reimbursement under Sections 531.0217 and 531.02171; and
 6-3                 (5)  coordinating the activities of state agencies
 6-4     concerned with the use of telemedical consultations and
 6-5     telemedicine medical services or telehealth services.
 6-6           (b)  The advisory committee must include:
 6-7                 (1)  representatives of health and human services
 6-8     agencies and other state agencies concerned with the use of
 6-9     telemedical consultations in the Medicaid program and the state
6-10     child health plan program, including representatives of:
6-11                       (A)  the commission;
6-12                       (B)  the Texas Department of Health;
6-13                       (C)  the Center for Rural Health Initiatives;
6-14                       (D)  the Telecommunications Infrastructure Fund
6-15     Board;
6-16                       (E)  the Texas Department of Insurance;
6-17                       (F)  the Texas State Board of Medical Examiners;
6-18                       (G)  the Board of Nurse Examiners; and
6-19                       (H)  the Texas State Board of Pharmacy;
6-20                 (2)  representatives of health science centers in this
6-21     state;
6-22                 (3)  experts on telemedicine, telemedical consultation,
6-23     and telemedicine medical services; and
6-24                 (4)  representatives of consumers of health services
6-25     provided through telemedical consultations and telemedicine medical
6-26     services.
 7-1           (c)  A member of the advisory committee serves at the will of
 7-2     the commissioner.
 7-3           SECTION 4.  Chapter 35, Health and Safety Code, is amended by
 7-4     adding Section 35.0041 to read as follows:
 7-5           Sec. 35.0041.  PARTICIPATION AND REIMBURSEMENT OF
 7-6     TELEMEDICINE MEDICAL SERVICE PROVIDERS.  (a)  The department by
 7-7     rule shall develop and implement policies permitting reimbursement
 7-8     of a provider for services under the program performed using
 7-9     telemedicine medical services.
7-10           (b)  The policies must provide for reimbursement of:
7-11                 (1)  providers using telemedicine medical services and
7-12     telehealth services in a cost-effective manner that ensures the
7-13     availability to a child with special health care needs of services
7-14     appropriately performed using telemedicine medical services and
7-15     telehealth services that are comparable to the same types of
7-16     services available to that child without use of telemedicine
7-17     medical services and telehealth services;
7-18                 (2)  a provider for a service performed using
7-19     telemedicine medical services and telehealth services at an amount
7-20     equal to the amount paid to a provider for performing the same
7-21     service without using telemedicine medical services and telehealth
7-22     services;
7-23                 (3)  multiple providers of different services who
7-24     participate in a single telemedicine medical services or telehealth
7-25     services session for a child with special health care needs, if the
7-26     department determines that reimbursing each provider for the
 8-1     session is cost-effective in comparison to the costs that would be
 8-2     involved in obtaining the services from providers without the use
 8-3     of telemedicine medical services and telehealth services, including
 8-4     the costs of transportation and lodging and other direct costs; and
 8-5                 (4)  providers using telemedicine medical services and
 8-6     telehealth services included in the school health and related
 8-7     services program.
 8-8           (c)  In developing and implementing the policies required by
 8-9     this section, the department shall consult with:
8-10                 (1)  The University of Texas Medical Branch at
8-11     Galveston;
8-12                 (2)  Texas Tech University Health Sciences Center;
8-13                 (3)  the Health and Human Services Commission,
8-14     including the state Medicaid office;
8-15                 (4)  providers of telemedicine medical services and
8-16     telehealth services hub sites in this state;
8-17                 (5)  providers of services to children with special
8-18     health care needs; and
8-19                 (6)  representatives of consumer or disability groups
8-20     affected by changes to services for children with special health
8-21     care needs.
8-22           (d)  This section applies to services for which coverage is
8-23     provided under the health benefits plan established under Section
8-24     35.0031.
8-25           SECTION 5.  Subchapter D, Chapter 62, Health and Safety Code,
8-26     is amended by adding Section 62.157 to read as follows:
 9-1           Sec. 62.157.  TELEMEDICINE MEDICAL SERVICES AND TELEHEALTH
 9-2     SERVICES FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS.  (a)  In
 9-3     providing covered benefits to a child with special health care
 9-4     needs, a health plan provider must permit benefits to be provided
 9-5     through telemedicine medical services and telehealth services in
 9-6     accordance with policies developed by the commission.
 9-7           (b)  The policies must provide for:
 9-8                 (1)  the availability of covered benefits appropriately
 9-9     provided through telemedicine medical services and telehealth
9-10     services that are comparable to the same types of covered benefits
9-11     provided without the use of telemedicine medical services and
9-12     telehealth services; and
9-13                 (2)  the availability of covered benefits for different
9-14     services performed by multiple health care providers during a
9-15     single telemedicine medical services and telehealth services
9-16     session, if the commission determines that delivery of the covered
9-17     benefits in that manner is cost-effective in comparison to the
9-18     costs that would be involved in obtaining the services from
9-19     providers without the use of telemedicine medical services and
9-20     telehealth services, including the costs of transportation and
9-21     lodging and other direct costs.
9-22           (c)  In developing the policies required by Subsection (a),
9-23     the commission shall consult with:
9-24                 (1)  The University of Texas Medical Branch at
9-25     Galveston;
9-26                 (2)  Texas Tech University Health Sciences Center;
 10-1                (3)  the Texas Department of Health;
 10-2                (4)  providers of telemedicine hub sites in this state;
 10-3                (5)  providers of services to children with special
 10-4    health care needs; and
 10-5                (6)  representatives of consumer or disability groups
 10-6    affected by changes to services for children with special health
 10-7    care needs.
 10-8          SECTION 6.  Section 57.042, Utilities Code, is amended by
 10-9    amending Subdivision (11) and adding Subdivision (12) to read as
10-10    follows:
10-11                (11)  "Telehealth service" means a health service,
10-12    other than a telemedicine medical service, delivered by a licensed
10-13    or certified health professional acting within the scope of the
10-14    health professional's license or certification who does not perform
10-15    a telemedicine medical service that requires the use of advanced
10-16    telecommunications technology, other than by telephone or
10-17    facsimile, including:
10-18                      (A)  compressed digital interactive video, audio,
10-19    or data transmission;
10-20                      (B)  clinical data transmission using computer
10-21    imaging by way of still-image capture and store and forward; and
10-22                      (C)  other technology that facilitates access to
10-23    health care services or medical specialty expertise.
10-24                (12)  "Telemedicine medical service" means a health
10-25    care service initiated by a physician or provided by a health
10-26    professional acting under physician delegation and supervision, for
 11-1    purposes of patient assessment by a health professional, diagnosis
 11-2    or consultation by a physician, treatment, or the transfer of
 11-3    medical data, that requires the use of advanced telecommunications
 11-4    technology, other than by telephone or facsimile, including:
 11-5                      (A)  compressed digital interactive video, audio,
 11-6    or data transmission;
 11-7                      (B)  clinical data transmission using computer
 11-8    imaging by way of still-image capture and store and forward; and
 11-9                      (C)  other technology that facilitates access to
11-10    health care services or medical specialty expertise[:]
11-11                      [(A)  means medical services delivered by
11-12    telecommunications technologies to rural or underserved public
11-13    not-for-profit health care facilities or primary health care
11-14    facilities in collaboration with an academic health center and an
11-15    associated teaching hospital or tertiary center or with another
11-16    public not-for-profit health care facility; and]
11-17                      [(B)  includes consultive services, diagnostic
11-18    services, interactive video consultation, teleradiology,
11-19    telepathology, and distance education for working health care
11-20    professionals].
11-21          SECTION 7.  Subsections (a) and (b), Section 57.047,
11-22    Utilities Code, are amended to read as follows:
11-23          (a)  The board may award a grant to a project or proposal
11-24    that:
11-25                (1)  provides equipment and infrastructure necessary
11-26    for:
 12-1                      (A)  distance learning;
 12-2                      (B)  an information sharing program of a library;
 12-3    [or]
 12-4                      (C)  telemedicine medical services; or
 12-5                      (D)  telehealth services;
 12-6                (2)  develops and implements the initial or
 12-7    prototypical delivery of a course or other distance learning
 12-8    material;
 12-9                (3)  trains teachers, faculty, librarians, or
12-10    technicians in the use of distance learning or information sharing
12-11    materials and equipment;
12-12                (4)  develops a curriculum or instructional material
12-13    specially suited for telecommunications delivery;
12-14                (5)  provides electronic information; or
12-15                (6)  establishes or carries out an information sharing
12-16    program.
12-17          (b)  The board may award a loan to a project or proposal to
12-18    acquire equipment needed for distance learning and telemedicine
12-19    medical service projects.
12-20          SECTION 8.  Subchapter C, Chapter 57, Utilities Code, is
12-21    amended by adding Section 57.0471 to read as follows:
12-22          Sec. 57.0471.  GRANTS TO CERTAIN HEALTH CARE FACILITIES.
12-23    (a)  A physician, health care professional, or health care facility
12-24    providing telemedicine medical services or telehealth services and
12-25    participating in a pilot program under Section 531.02171,
12-26    Government Code, is eligible to receive a grant under Section
 13-1    57.047.
 13-2          (b)  The physician, health care professional, or health care
 13-3    facility providing telemedicine medical services or telehealth
 13-4    services and participating in a pilot program under Section
 13-5    531.02171, Government Code, is not eligible to receive private
 13-6    network services under Section 58.253(a), except with respect to a
 13-7    project that would have been eligible to be funded by the
 13-8    telecommunications infrastructure fund under this subchapter as it
 13-9    existed on January 1, 2000.
13-10          SECTION 9.  Subsection (a), Section 58.253, Utilities Code,
13-11    is amended to read as follows:
13-12          (a)  On customer request, an electing company shall provide
13-13    private network services to:
13-14                (1)  an educational institution;
13-15                (2)  a library;
13-16                (3)  a nonprofit telemedicine center;
13-17                (4)  a public or not-for-profit hospital;
13-18                (5)  a project that would have been eligible to be
13-19    funded by the telecommunications infrastructure fund under
13-20    Subchapter C, Chapter 57, as that subchapter existed on January 1,
13-21    2001; or
13-22                (6)  a legally constituted consortium or group of
13-23    entities listed in this subsection.
13-24          SECTION 10.  Subsection (h), Section 531.0217, Government
13-25    Code, is repealed.
13-26          SECTION 11.  (a)  Not later than December 31, 2001, the
 14-1    commissioner of health and human services shall establish the
 14-2    telemedicine advisory committee as required by Section 531.02172,
 14-3    Government Code, as added by this Act.
 14-4          (b)  Not later than September 1, 2003, the telemedicine
 14-5    advisory committee established under Section 531.02172, Government
 14-6    Code, as added by this Act, shall prepare a report relating to the
 14-7    implementation of the pilot programs established under Section
 14-8    531.02171, Government Code, as added by this Act, and shall provide
 14-9    the report to the governor, lieutenant governor, speaker of the
14-10    house of representatives, and appropriate standing committees of
14-11    the senate and house of representatives.
14-12          SECTION 12.  The advisory committee established under
14-13    Subsection (h), Section 531.0217, Government Code, is abolished on
14-14    the effective date of this Act.
14-15          SECTION 13.  The Health and Human Services Commission and the
14-16    Texas Department of Health shall develop and implement policies
14-17    required by Sections 35.0041 and 62.157, Health and Safety Code, as
14-18    added by this Act, not later than December 31, 2001.
14-19          SECTION 14.  Not later than December 1 of each even-numbered
14-20    year, the Health and Human Services Commission shall report to the
14-21    speaker of the house of representatives, the lieutenant governor,
14-22    and the governor on the effects of telemedicine medical services on
14-23    the Medicaid and children's health insurance programs in the state,
14-24    including the number of physicians and health professionals using
14-25    telemedicine medical services, the geographic and demographic
14-26    dispositions of the physicians and health professionals, the number
 15-1    of patients receiving telemedicine medical services, the types of
 15-2    services being provided, and the cost of utilization of
 15-3    telemedicine medical services to the program.
 15-4          SECTION 15.  If before implementing any provision of this Act
 15-5    a state agency determines that a waiver or authorization from a
 15-6    federal agency is necessary for implementation of that provision,
 15-7    the agency affected by the provision shall request the waiver or
 15-8    authorization and may delay implementing that provision until the
 15-9    waiver or authorization is granted.
15-10          SECTION 16.  This Act takes effect immediately if it receives
15-11    a vote of two-thirds of all the members elected to each house, as
15-12    provided by Section 39, Article III, Texas Constitution.  If this
15-13    Act does not receive the vote necessary for immediate effect, this
15-14    Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1536 passed the Senate on
         May 3, 2001, by the following vote:  Yeas 30, Nays 0, one present
         not voting; and that the Senate concurred in House amendments on
         May 24, 2001, by the following vote:  Yeas 30, Nays 0, one present
         not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1536 passed the House, with
         amendments, on May 18, 2001, by the following vote:  Yeas 136,
         Nays 0, two present not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor