By: Kolkhorst, Raymond H.B. No. 3556
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the licensing and regulation of emergency medical
  services providers and a moratorium on the issuance of emergency
  medical services provider licenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 773.0571, Health and Safety Code, is
  amended to read as follows:
         Sec. 773.0571.  REQUIREMENTS FOR PROVIDER LICENSE. The
  department shall issue to an emergency medical services provider
  applicant a license that is valid for two years if the department is
  satisfied that:
               (1)  the applicant [emergency medical services
  provider] has adequate staff to meet the staffing standards
  prescribed by this chapter and the rules adopted under this
  chapter;
               (2)  each emergency medical services vehicle is
  adequately constructed, equipped, maintained, and operated to
  render basic or advanced life support services safely and
  efficiently;
               (3)  the applicant [emergency medical services
  provider] offers safe and efficient services for emergency
  prehospital care and transportation of patients; [and]
               (4)  the applicant:
                     (A)  possesses sufficient professional experience
  and qualifications to provide emergency medical services; and
                     (B)  has not been excluded from participation in
  the state Medicaid program;
               (5)  the applicant holds a letter of approval issued
  under Section 773.0573 by the governing body of the municipality or
  the commissioners court of the county in which the applicant is
  located and is applying to provide emergency medical services, as
  applicable; and
               (6)  the applicant [emergency medical services
  provider] complies with the rules adopted [by the board] under this
  chapter.
         SECTION 2.  Subchapter C, Chapter 773, Health and Safety
  Code, is amended by adding Sections 773.05711, 773.05712, and
  773.05713 to read as follows:
         Sec. 773.05711.  ADDITIONAL EMERGENCY MEDICAL SERVICES
  PROVIDER LICENSE REQUIREMENTS.  (a)  In addition to the
  requirements for obtaining or renewing an emergency medical
  services provider license under this subchapter, a person who
  applies for a license or for a renewal of a license must:
               (1)  provide the department with a letter of credit
  issued by a federally insured bank or savings institution in the
  amount of:
                     (A)  $100,000 for the initial license and for
  renewal of the license on the second anniversary of the date the
  initial license is issued;
                     (B)  $75,000 for renewal of the license on the
  fourth anniversary of the date the initial license is issued;
                     (C)  $50,000 for renewal of the license on the
  sixth anniversary of the date the initial license is issued; and
                     (D)  $25,000 for renewal of the license on the
  eighth anniversary of the date the initial license is issued and
  each subsequent renewal;
               (2)  provide the department with a surety bond in the
  amount of:
                     (A)  $50,000 for the initial license and for
  renewal of the license on the second anniversary of the date the
  initial license is issued;
                     (B)  $25,000 for renewal of the license on the
  fourth anniversary of the date the initial license is issued; and
                     (C)  $10,000 for renewal of the license on the
  sixth anniversary of the date the initial license is issued and each
  subsequent renewal; and
               (3)  submit for approval by the department the name and
  contact information of the provider's administrator of record who
  satisfies the requirements under Section 773.05712.
         (b)  An emergency medical services provider that is directly
  operated by a governmental entity is exempt from this section.
         Sec. 773.05712.  ADMINISTRATOR OF RECORD.  (a)  The
  administrator of record for an emergency medical services provider
  licensed under this subchapter:
               (1)  may not be employed or otherwise compensated by
  another private for-profit emergency medical services provider;
               (2)  must meet the qualifications required for an
  emergency medical technician or other health care professional
  license or certification issued by this state; and
               (3)  must submit to a criminal history record check at
  the applicant's expense.
         (b)  Section 773.0415 does not apply to information an
  administrator of record is required to provide under this section.
         (c)  An administrator of record initially approved by the
  department may be required to complete an education course for new
  administrators of record. The executive commissioner shall
  recognize, prepare, or administer the education course for new
  administrators of record, which must include information about the
  laws and department rules that affect emergency medical services
  providers.
         (d)  An administrator of record approved by the department
  under Section 773.05711(a) annually must complete at least eight
  hours of continuing education following initial approval.  The
  executive commissioner shall recognize, prepare, or administer
  continuing education programs for administrators of record, which
  must include information about changes in law and department rules
  that affect emergency medical services providers.
         (e)  An emergency medical services provider that is directly
  operated by a governmental entity is exempt from this section.
         Sec. 773.05713.  REPORT TO LEGISLATURE.  Not later than
  December 1 of each even-numbered year, the department shall
  electronically submit a report to the lieutenant governor, the
  speaker of the house of representatives, and the standing
  committees of the house and senate with jurisdiction over the
  department on the effect of Sections 773.05711 and 773.05712 that
  includes:
               (1)  the total number of applications for emergency
  medical services provider licenses submitted to the department and
  the number of applications for which licenses were issued or
  licenses were denied by the department;
               (2)  the number of emergency medical services provider
  licenses that were suspended or revoked by the department for
  violations of those sections and a description of the types of
  violations that led to the license suspension or revocation;
               (3)  the number of occurrences and types of fraud
  committed by licensed emergency medical services providers related
  to those sections;
               (4)  the number of complaints made against licensed
  emergency medical services providers for violations of those
  sections and a description of the types of complaints; and
               (5)  the status of any coordination efforts of the
  department and the Texas Medical Board related to those sections.
         SECTION 3.  Subchapter C, Chapter 773, Health and Safety
  Code, is amended by adding Section 773.0573 to read as follows:
         Sec. 773.0573.  LETTER OF APPROVAL FROM LOCAL GOVERNMENTAL
  ENTITY. (a) An emergency medical services provider applicant must
  obtain a letter of approval from:
               (1)  the governing body of the municipality in which
  the applicant is located and is applying to provide emergency
  medical services; or
               (2)  if the applicant is not located in a municipality,
  the commissioners court of the county in which the applicant is
  located and is applying to provide emergency medical services.
         (b)  A governing body of a municipality or a commissioners
  court of a county may issue a letter of approval to an emergency
  medical services provider applicant who is applying to provide
  emergency medical services in the municipality or county only if
  the governing body or commissioners court determines that:
               (1)  the addition of another licensed emergency medical
  services provider will not interfere with or adversely affect the
  provision of emergency medical services by the licensed emergency
  medical services providers operating in the municipality or county;
               (2)  the addition of another licensed emergency medical
  services provider will remedy an existing provider shortage that
  cannot be resolved through the use of the licensed emergency
  medical services providers operating in the municipality or county;
  and
               (3)  the addition of another licensed emergency medical
  services provider will not cause an oversupply of licensed
  emergency medical services providers in the municipality or county.
         (c)  An emergency medical services provider is prohibited
  from expanding operations to or stationing any emergency medical
  services vehicles in a municipality or county other than the
  municipality or county from which the provider obtained the letter
  of approval under this section until after the second anniversary
  of the date the provider's initial license was issued, unless the
  expansion or stationing occurs in connection with:
               (1)  a contract awarded by another municipality or
  county for the provision of emergency medical services;
               (2)  an emergency response made in connection with an
  existing mutual aid agreement; or
               (3)  an activation of a statewide emergency or disaster
  response by the department.
         (d)  This section does not apply to:
               (1)  renewal of an emergency medical services provider
  license; or
               (2)  a municipality, county, emergency services
  district, hospital, or emergency medical services volunteer
  provider organization in this state that applies for an emergency
  medical services provider license.
         SECTION 4.  Subchapter C, Chapter 773, Health and Safety
  Code, is amended by adding Section 773.06141 to read as follows:
         Sec. 773.06141.  SUSPENSION, REVOCATION, OR DENIAL OF
  EMERGENCY MEDICAL SERVICES PROVIDER LICENSE.  The commissioner may
  suspend, revoke, or deny an emergency medical services provider
  license on the grounds that the provider's administrator of record,
  employee, or other representative:
               (1)  has been convicted of, or placed on deferred
  adjudication community supervision or deferred disposition for, an
  offense that directly relates to the duties and responsibilities of
  the administrator, employee, or representative, other than an
  offense for which points are assigned under Section 708.052,
  Transportation Code;
               (2)  has been convicted of or placed on deferred
  adjudication community supervision or deferred disposition for an
  offense, including:
                     (A)  an offense listed in Sections 3g(a)(1)(A)
  through (H), Article 42.12, Code of Criminal Procedure; or
                     (B)  an offense, other than an offense described
  by Subdivision (1), for which the person is subject to registration
  under Chapter 62, Code of Criminal Procedure; or
               (3)  has been convicted of Medicare or Medicaid fraud,
  has been excluded from participation in the state Medicaid program,
  or has a hold on payment for reimbursement under the state Medicaid
  program under Subchapter C, Chapter 531, Government Code.
         SECTION 5.  Notwithstanding Chapter 773, Health and Safety
  Code, as amended by this Act, the Department of State Health
  Services may not issue any new emergency medical services provider
  licenses for the period beginning on September 1, 2013, and ending
  on February 28, 2015. The moratorium does not apply to the issuance
  of an emergency medical services provider license to a
  municipality, county, emergency services district, hospital, or
  emergency medical services volunteer provider organization in this
  state, or to an emergency medical services provider applicant who
  is applying to provide services in response to 9-1-1 calls and is
  located in a rural area, as that term is defined in Section
  773.0045, Health and Safety Code.
         SECTION 6.  Section 773.0571, Health and Safety C
  ode, as
  amended by this Act, and Section 773.0573, Health and Safety Code,
  as added by this Act, apply only to an application for approval of
  an emergency medical services provider license submitted to the
  Department of State Health Services on or after the effective date
  of this Act. An application submitted before the effective date of
  this Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 7.  The change in law made by this Act applies only
  to an application for approval or renewal of an emergency medical
  services provider license submitted to the Department of State
  Health Services on or after the effective date of this Act.  An
  application submitted before the effective date of this Act is
  governed by the law in effect immediately before the effective date
  of this Act, and that law is continued in effect for that purpose.
         SECTION 8.  This Act takes effect September 1, 2013.