Amend CSSB 104 as follows:                                                   

(1)  In SECTION 3 of the bill, in proposed Section 	153.0535(b), Occupations Code (committee printing page 1, line 61), 
between "panel" and the period, insert "and representation of the 
board by the attorney general's office".
	(2)  In SECTION 20 of the bill, in amended Section 
164.003(b), Occupations Code, in proposed Subdivision (4) of that 
subsection (committee printing page 5, line 47), strike "[(2)] the 
board's legal counsel or" and substitute "[(2) the board's legal 
counsel or]".
	(3)  Insert the following appropriately numbered SECTIONS to 
the bill:       
	SECTION ___.  Section 153.013, Occupations Code, is amended 
to read as follows:
	Sec. 153.013.  REPRESENTATION BY ATTORNEY GENERAL.  (a)  The 
board shall be represented by the attorney general in:
		(1)  formal contested case hearings under Section 
164.007; and       
		(2)  court proceedings [by the attorney general].     
	(b)  A representative of the attorney general shall advise 
the board's staff in informal proceedings under Section 164.003.
	SECTION ___.  Section 164.005(e), Occupations Code, is 
amended to read as follows:
	(e)  The president or designee shall notify the State Office 
of Administrative Hearings and the attorney general of a formal 
complaint.
	SECTION ___.  Section 164.007, Occupations Code, is amended 
by amending Subsections (a) and (b) and adding Subsection (i) to 
read as follows:
	(a)  The board by rule shall adopt procedures governing 
formal disposition of a contested case under Chapter 2001, 
Government Code.  A formal hearing shall be conducted by an 
administrative law judge employed by the State Office of 
Administrative Hearings.  The attorney general shall represent the 
board in the hearing.  [After receiving the administrative law 
judge's findings of fact and conclusions of law, the board shall 
determine the charges on the merits.]
	(b)  Notwithstanding this subtitle or other law, the board, 
with the approval of the attorney general, may employ, retain, and 
compensate:
		(1)  [attorneys,] consultants[,] and other 
professionals as necessary and appropriate to serve as board 
consultants [or special counsel to prosecute complaints filed with 
the board on behalf of the hearings division and investigating 
division]; and
		(2)  court reporters and other staff necessary to 
prepare for or represent the board in the hearings authorized by 
this section.
	(i)  After a hearing described by this section is concluded, 
the parties may submit to the administrative law judge proposed 
findings of fact and conclusions of law and a proposal for decision 
as to the occurrence of the violation and any proposed sanction.  
The administrative law judge shall make findings of fact and 
conclusions of law and issue a final decision finding that a 
violation has occurred and imposing a sanction or finding that no 
violation occurred.  If the administrative law judge finds that a 
violation has occurred, the administrative law judge may impose any 
sanction that the board is authorized to impose under this chapter.  
The administrative law judge may impose more than one sanction for 
the same violation.  Section 2001.058(f), Government Code, applies 
to the formal disposition of a contested case under this section 
regardless of whether the board has adopted a rule under that 
subsection.  For the purposes of this chapter, a sanction imposed by 
an administrative law judge under this section is considered to be a 
disciplinary action taken by the board.
	SECTION ___.  (a)  Not later than January 1, 2004,  the Texas 
State Board of Medical Examiners and the attorney general shall 
enter into a memorandum of understanding under which all attorneys 
employed by the board, except as provided by Subsection (b) of this 
section, are transferred to the attorney general's office.  The 
memorandum required by this section shall prescribe the manner by 
which the transfer shall be accomplished and provide for the 
transfer to the attorney general's office of money appropriated to 
the board for legal services, including money for salaries of 
transferred employees, and the transfer of any files, records, 
equipment, property, and support personnel necessary to accomplish 
the transfer.  The memorandum shall also address the manner by which 
any investigation or other formal or informal proceeding in which a 
board employee is providing services shall be transferred to the 
attorney general's office.  The transfer required by this section 
must be completed not later than March 1, 2004.
	(b)  The transfer of legal personnel and services required by 
this section does not apply to the general counsel to the Texas 
State Board of Medical Examiners.  The memorandum of understanding 
required by Subsection (a) of this section shall include provisions 
for the retention by the general counsel of one attorney and 
sufficient support personnel to fulfill the general counsel's 
responsibilities.
	(4)  Renumber the SECTIONS of the bill appropriately.