TITLE 22.EXAMINING BOARDS

Part 9. TEXAS STATE BOARD OF MEDICAL EXAMINERS

Chapter 163. LICENSURE

22 TAC §163.14

The Texas State Board of Medical Examiners proposes new §163.14, concerning Licensure to Practice Medicine Across State Lines. The new rule is created in order to implement requirements for practicing medicine across state lines.

Michele Shackelford, General Counsel, Texas State Board of Medical Examiners, has determined that for the first five-year period the rule is in effect there will be no fiscal implications to state or local government as a result of enforcing the rule as proposed.

Ms. Shackelford also has determined that for each year of the first five years the rule as proposed is in effect the public benefit anticipated as a result of enforcing the section will be an updated rule regarding qualifications, registration requirements, and limits and exemptions relating to special purpose telemedicine licenses. There will be no effect on small or micro businesses. There will be no effect to individuals required to comply with the section as proposed.

Comments on the proposal may be submitted to Colleen Klein, P.O. Box 2018, Austin, Texas 78768-2018. A public hearing will be held at a later date.

The new section is proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed new rule: Texas Occupations Code Annotated, §151.002 and §151.056.

§163.14.Licensure to Practice Medicine Across State Lines.

(a) Qualifications. A person may not engage in the practice of medicine across state lines in this State, hold oneself as qualified to do the same, or use any title, word, or abbreviation to indicate or induce others to believe that one is licensed to practice across state lines in this state unless the person is actually so licensed. For a person to eligible for a special purpose telemedicine license to practice medicine across state lines under the Medical Practice Act, §151.056, and §163.1 of this chapter (relating to Definitions), the person must:

(1) be 21 years of age or older;

(2) be actively licensed to practice medicine in another state which is recognized by the Texas State Board of Medical Examiners for purposes of licensure, and not the recipient of a previous disciplinary action by any other state or jurisdiction;

(3) not be the subject of a pending investigation by a state medical board or another state or federal agency;

(4) be certified in a medical specialty pursuant to the standards of and approved by the American Board of Medical Specialties or the Bureau of Osteopathic Specialists and Boards of Certification;

(5) have passed the Texas Medical Jurisprudence Examination;

(6) complete a board-approved application for a special purpose telemedicine license for the practice of medicine across state lines and submit the requisite initial fee; and

(7) not be determined ineligible for licensure under subsection (b) of this section.

(b) Denial of Special Purpose Telemedicine License. An application for a special purpose telemedicine license to practice medicine across state lines may be denied based on failure to demonstrate the requisite qualifications for issuance of a special purpose license, any grounds for denial of an application for a full license, failure to submit the required fee, and any grounds for disciplinary action of a licensee under the Medical Practice Act, §164.051 (relating to Grounds for Denial or Disciplinary Action).

(c) Limits on Special Purpose Telemedicine License. A special purpose telemedicine license to practice medicine across state lines shall be limited exclusively to the practice of medicine as defined by §163.1 of this chapter and limited to the specialty or specialization upon which the license was granted under subsection (a)(3) of this section, and the license holder shall practice medicine in a manner so as to comply with all other statutes and laws governing the practice of medicine in the state of Texas. Unless a person holds a current full license to practice medicine in this state pursuant to this chapter and the provisions of the Medical Practice Act, Chapter 155 (relating to License to Practice Medicine), a person holding a special purpose telemedicine license shall not be authorized to physically practice medicine in the state of Texas.

(d) Registration Requirements. All special purpose telemedicine licenses to practice medicine across state lines licenses must be renewed and maintained according to registration requirements of §166.1 of this title (relating to Physician Registration).

(e) Disciplinary Action. The issuance by the board of a special purpose telemedicine license subjects the licensee to the jurisdiction of the board in all matters set forth in the Medical Practice Act and all rules and regulations, including all matters related to discipline.

(f) Exemptions. The following activities shall be exempt from the requirements of a special purpose telemedicine license and this chapter:

(1) episodic consultation by a medical specialist located in another jurisdiction who provides such consultation services on request to a person licensed in this state;

(2) consultation services provided by a physician located in another jurisdiction to a medical school as defined in the Education Code, §61.501;

(3) consultation services provided by a physician located in another jurisdiction to an institution defined in either Subchapter C, Chapter 73, or Subchapter K, Chapter 74 of the Education Code;

(4) informal consultation performed outside the context of a contractual relationship and on an irregular or infrequent basis without the expectation or exchange of direct or indirect compensation;

(5) furnishing of medical assistance in case of an emergency or disaster if no charge is made for the medical assistance; and

(6) a physician located in another jurisdiction of a state having borders contiguous with the borders of this state who is the treating physician of a patient and orders home health or hospice services for a resident of this state to be delivered by a home and community support services agency licensed in this state.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402444

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 174. TELEMEDICINE

The Texas State Board of Medical Examiners proposes the repeal of §§174.1 - 174.17 and new §§174.1 - 174.5, concerning Telemedicine. The new rules relate to standards for provision of telemedicine medical services and use of the Internet in transmission of information.

Michele Shackelford, General Counsel, Texas State Board of Medical Examiners, has determined that for the first five-year period the rules are in effect there may be fiscal implications to physicians not already participating in Medicaid/Medicare. There will be no fiscal implications to state or local government as a result of enforcing the rules as proposed.

Ms. Shackelford also has determined that for each year of the first five years the rules as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be updated rules to be consistent with standards established by other government agencies. There will be no effect on small or micro businesses.

Comments on the proposal may be submitted to Colleen Klein, P.O. Box 2018, Austin, Texas 78768-2018. A public hearing will be held at a later date.

22 TAC §§174.1 - 174.17

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas State Board of Medical Examiners or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed repeals: Article 21.53F of the Insurance Code; Government Code §531.0217(i) and Texas Occupations Code Annotated, §153.004.

§174.1.Purpose.

§174.2.Definitions.

§174.3.Qualifications for Special Purpose License for Practice of Medicine Across State Lines.

§174.4.Limits on Special Purpose License to Practice Medicine Across State Lines.

§174.5.Denial of Application for Special Purpose License to Practice Medicine Across State Lines.

§174.6.Revocation and Limitation of Special Purpose License.

§174.7.Cooperation.

§174.8.Appearances.

§174.9.Patient Medical Records.

§174.10.Informed Consent.

§174.11.Address Changes.

§174.12.Delegation and Supervision.

§174.13.Exemptions.

§174.14.Temporary Suspension of Special Purpose License.

§174.15.Fees and Failure To Submit Fees.

§174.16.Registration Requirements.

§174.17.Use of the Internet in Medical Practice.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402445

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


22 TAC §§174.1 - 174.5

The new sections are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed new rules: Article 21.53F of the Insurance Code; Government Code §531.0217(i) and Texas Occupations Code Annotated, §153.004.

§174.1.Purpose.

This chapter is promulgated to establish standards for the use of the Internet and provision of telemedicine medical services by physicians who are licensed to practice medicine in this State.

§174.2.Definitions.

The following words and terms, when used in this chapter shall have the following meanings unless the context indicates otherwise.

(1) Medical practice site--A patient-specific Internet site, access to which is limited to licensed physicians, associated medical personnel and patients. It is an interactive site and thus qualifies as a practice location. It requires a defined physician-patient relationship.

(2) Medium--Any mechanism of information transfer including electronic means.

(3) Person--An individual unless otherwise expressly made applicable to a partnership, association, or corporation.

(4) Physician-patient e-mail--A computer-based communication between physician (or their medical personnel) and patients within a professional relationship in which the physician has taken on an explicit measure of responsibility for the patient's care.

(5) Telemedicine medical service--A health care service initiated by a physician or provided by a health professional acting under physician delegation and supervision, for purposes of assessment by a health professional, diagnosis or consultation by a physician, treatment, or the transfer of medical data, that requires the use of advanced telecommunications other than by telephone or facsimile as described in §57.042 of the Utilities Code.

§174.3.Telemedicine Medical Services.

(a) All physicians that use telemedicine medical services in their practices shall adopt protocols to prevent fraud and abuse through the use of telemedicine medical services. These standards must be consistent with those established by the Telecommunications Infrastructure Fund Board and Health and Human Services Commission pursuant to §531.02161 of the Government Code.

(b) In order to establish that a physician has made a good faith effort in the physician's practice to prevent fraud and abuse through the use of telemedicine medical services, the physician must implement written protocols that address the following:

(1) authentication and authorization of users;

(2) authentication of the origin of information;

(3) the prevention of unauthorized access to the system or information;

(4) system security, including the integrity of information that is collected, program integrity, and system integrity;

(5) maintenance of documentation about system and information usage;

(6) information storage, maintenance, and transmission; and

(7) synchronization and verification of patient profile data.

§174.4.Use of the Internet in Medical Practice.

(a) Evaluation of the Patient. Physicians who utilize the Internet must ensure a proper physician-patient relationship is established that at a minimum includes:

(1) establishing that the person requesting the treatment is in fact who the person claims to be;

(2) establishing a diagnosis through the use of acceptable medical practices such as patient history, mental status examination, physical examination, and appropriate diagnostic and laboratory testing to establish diagnoses and identify underlying conditions and/or contra-indications to treatment recommended/provided;

(3) discussing with the patient the diagnosis and the evidence for it, the risks and benefits of various treatment options; and

(4) ensuring the availability of the physician or coverage of the patient for appropriate follow-up care.

(b) Treatment. Treatment and consultation recommendations made in an online setting, including issuing a prescription via electronic means, will be held to the same standards of appropriate practice as those in traditional (face-to-face) settings. An online or telephonic evaluation by questionnaire does not constitute an acceptable standard of care.

(c) State Licensure. Physicians who treat and prescribe through the Internet are practicing medicine and must possess appropriate licensure in all jurisdictions where patients reside.

(d) Electronic Communications.

(1) Written policies and procedures must be maintained when using electronic mail for physician-patient communications. Policies must be evaluated periodically for currency. Such policies and procedures must address:

(A) privacy to assure confidentiality and integrity of patient-identifiable information;

(B) health care personnel, in addition to the physician, who will process messages;

(C) hours of operation and availability;

(D) types of transactions that will be permitted electronically;

(E) required patient information to be included in the communication, such as patient name, identification number and type of transaction;

(F) archival and retrieval; and

(G) quality oversight mechanisms.

(2) All patient-physician e-mail, as well as other patient-related electronic communications, must be stored and filed in the patient's medical record.

(3) Patients must be informed of alternative forms of communication for urgent matters.

(e) Medical Records.

(1) Medical records must include copies of all patient-related electronic communications, including patient-physician e-mail, prescriptions, laboratory and test results, evaluations and consultations, records of past care and instructions.

(2) Notice of privacy practices related to the use of e-mail must be filed in the medical record.

(f) Disclosure. Physician medical practice sites must clearly disclose:

(1) ownership of the website;

(2) specific services provided;

(3) office address and contact information;

(4) licensure and qualifications of physician(s) and associated health care providers;

(5) fees for online consultation and services and how payment is to be made;

(6) financial interest in any information, products, or services;

(7) appropriate uses and limitations of the site, including providing health advice and emergency health situations;

(8) uses and response times for e-mails, electronic messages, and other communications transmitted via the site;

(9) to whom patient health information may be disclosed and for what purpose;

(10) rights of patients with respect to patient health information; and

(11) information collected and any passive tracking mechanisms utilized.

(g) Accountability. Medical practice sites must provide patients with a clear mechanism to:

(1) access, supplement, and amend patient-provided personal health information;

(2) provide feedback regarding the site and the quality of information and services; and

(3) register complaints, including information regarding filing a complaint with the Texas State Board of Medical Examiners as provided for in Chapter 178 of this title (relating to Complaints).

(h) Advertising/Promotion of Goods or Products. Advertising or promotion of goods or products from which the physician receives direct remuneration or incentives is prohibited.

§174.5.Notice of Privacy Practices.

(a) Physicians that communicate with patients by e-mail or other electronic means other than telephone or facsimile must make a good faith effort to notify patients in writing of the physicians' privacy practices.

(b) The notice of privacy practices shall include language that is consistent with federal standards under 45 CFR Parts 160 and 164 relating to privacy of individually identifiable health information.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402446

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 177. CERTIFICATION OF NON-PROFIT HEALTH ORGANIZATIONS

The Texas State Board of Medical Examiners proposes amendments to §§177.1 - 177.8, the repeal of §§177.9 - 177.16 and new §§177.9 - 177.13, concerning Certification of Non-Profit Health Organizations. The amendments, repeals and new rules are necessary for general cleanup of the chapter.

Elsewhere in this issue of the Texas Register , the Texas State Board of Medical Examiners proposes the rule review of Chapter 177.

Michele Shackelford, General Counsel, Texas State Board of Medical Examiners, has determined that for the first five-year period the rules are in effect there will be no fiscal implications to state or local government as a result of enforcing the rules as proposed.

Ms. Shackelford also has determined that for each year of the first five years the rules as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be to make reference to other sections of the rules rather than to repeat the entire text. In addition, the rules clarify that Board of Directors must hold unrestricted licenses and that all corporations must be Texas-based. There will be no effect on small or micro businesses. There will be no effect to individuals required to comply with the sections as proposed.

Comments on the proposal may be submitted to Colleen Klein, P.O. Box 2018, Austin, Texas 78768-2018. A public hearing will be held at a later date.

22 TAC §§177.1 - 177.8

The amendments are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed amendments: Texas Occupations Code Annotated, §§162.001 - 162.003.

§177.1.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the contents clearly indicate otherwise.

(1) Act--The Texas Medical Practice Act, Texas Occupations Code Annotated, Title 3 Subtitle B.

(2) Actively engaged in the practice of medicine--The physician on a full-time basis is engaged in diagnosing, treating or offering to treat any mental or physical disease or disorder or any physical deformity or injury or performing such actions with respect to individual patients for compensation and shall include clinical medical research, the practice of clinical investigative medicine, the supervision and training of medical students or residents in a teaching facility or program approved by the Liaison Committee on Medical Education of the American Medical Association, the American Osteopathic Association or the Accreditation Council for Graduate Medical Education, and professional managerial, administrative, or supervisory activities related to the practice of medicine or the delivery of health care services. The term "full-time basis," for purposes of this section, shall mean at least 20 hours per week for 40 weeks duration during a given year.

(3) Board--Texas State Board of Medical Examiners.

(4) Board of Directors--The board of the health organization [ Health Organization ] whether referred to as the board of directors, the board of trustees or other title.

(5) Certification by the Board--In accordance with Chapter 162, Texas Occupations Code Annotated, the Board shall certify a health organization as a non-profit health organization; as a migrant, community, or homeless health center; or as a federally qualified health center.

(6) Chief Executive Officer--The officer of the health organization [ Health Organization ] authorized in the articles of incorporation, the bylaws, or otherwise, to perform the functions of the principal executive officer, irrespective of the name by which such officer may be designated by the health organization [ Health Organization ].

(7) Director--A member of a health organization's board of directors [ the Board of Directors ] whether referred to as a director, trustee or other title.

(8) Member--A member of the health organization [ Health Organization ].

(9) Health Organization--An applicant for or holder of certification from the Texas State Board of Medical Examiners under the Act, §162.001(b) and (c) .

(10) Rules--The rules , 22 Texas Administrative Code Chapters 161-200, promulgated by the Texas State Board of Medical Examiners pursuant to the Act.

(11) Supplier--

(A) A physician retained to provide medical services to or on behalf of the health organization [ Health Organization ]; and

(B) any other person providing or anticipated to provide services or supplies to or on behalf of the health organization [ Health Organization ] in excess of $10,000 during a twelve-month period.

§177.2.Initial Certification of 162.001(b) Health Organizations .

Any health organization [ Health Organization ] meeting the qualifications specified in §177.3 of this title (relating to Qualifications for Certification as a 162.001(b) Health Organization ) may seek certification by the board [ Texas State Board of Medical Examiners ] under the Act, §162.001(b), by the submission of an application as provided in §177.4 of this title (relating to Applications for Certification as a 162.001(b) Health Organization ).

§177.3.Qualifications for Certification as a 162.001(b) Health Organization .

A 162.001(b) health organization [ Health Organization ] meeting the following qualifications shall be certified by the board [ Texas State Board of Medical Examiners ]:

(1) the health organization [ Health Organization ] is formed solely by persons licensed by the board [ Texas State Board of Medical Examiners ];

(2) the health organization [ Health Organization ] is a non-profit corporation registered in Texas as a domestic corporation under the provisions of the Texas Non- Profit [ profit ] Corporation Act;

(3) the board of directors [ Board of Directors ] of the health organization [ Health Organization ] consists solely of persons licensed by the board [ Texas State Board of Medical Examiners ] and actively engaged in the practice of medicine without restrictions on their Texas medical licenses ;

(4) the health organization [ Health Organization ] is not established or organized or operated in contravention to or with the intent to circumvent any of the provisions of the Act; and

(5) the health organization [ Health Organization ] makes application, submits reports, pays fees and otherwise complies with the provisions of this chapter.

§177.4.Applications for Certification as a 162.001(b) Health Organization .

A health organization [ Health Organization ] seeking certification under §162.001(b) of the Act shall submit an application to the board [ Texas State Board of Medical Examiners ], to the attention of the Non-Profits [ permits ] department, on a form approved by the board. The [ Texas State Board of Medical Examiners, which ] application shall include:

(1) Initial Identification Statement. A statement signed and verified by the chief executive officer:

(A) indicating the name and mailing address of the health organization [ Health Organization ];

(B) indicating the names and mailing addresses of all members [ Member(s) ] or that there are no members [ Member(s) ];

(C) indicating the names and mailing addresses of all officers [ Officers ]; and

(D) indicating the names and mailing addresses of all directors [ Directors ].

(2) Initial Document Statement. A statement signed and verified by the chief executive officer attaching a copy of the current certificate of incorporation of the health organization [ Health Organization ] and attaching a copy of the current by-laws of the health organization [ Health Organization ] including provisions [ provision ] that:

(A) the health organization [ Health Organization ] is organized for any or all of the following purposes:

(i) the carrying out of scientific research and research projects in the public interest in the fields of medical sciences, medical economics, public health, sociology, or related areas;

(ii) the supporting of medical education in medical schools through grants and scholarships;

(iii) the improving and developing of the abilities of individuals and institutions studying, teaching, and practicing medicine;

(iv) the delivery of health care to the public ; or[ ; ]

(v) the engaging in the instruction of the general public in the area of medical science, public health, and hygiene and related instruction useful to the individual and beneficial to the community.

(B) the physician(s) organizing and incorporating the health organization [ Health Organization ] shall select the initial board of directors [ Board of Directors ] consistent with the mission, goals, and purposes of the health organization [ Health Organization ];

(C) the by-laws of the health organization [ Health Organization ] shall be interpreted in a manner that reserves to the health organization [ Health Organization ] through its retained physicians the sole authority to engage in the practice of medicine and reserves to the health organization [ Health Organization ] through its board of directors [ Board of Directors ] the sole authority to direct the medical, professional, and ethical aspects of the practice of medicine;

(D) each director [ Director ] is required to immediately report to the board [ Texas State Board of Medical Examiners ] any action or event which such director [ Director ] reasonably and in good faith believes constitutes a violation or attempted violation of the Act or the Rules;

(E) each director [ Director ] is required to individually disclose to the member(s) [ Member(s) ], if any, and to the board of directors [ Board of Directors ] (at the times of nomination and appointment) and to the board [ Texas State Board of Medical Examiners ] (at the times of initial application and biennial reports) the identity of each financial relationship known to such director [ Director ], if any, which such director [ Director ] has with any member [ Member ], any other director [ Director ], any supplier [ Supplier ] of the health organization [ Health Organization ] or any affiliate of any member [ Member ], other director [ Director ], or supplier [ Supplier ] of the health organization [ Health Organization ], and to provide a concise explanation of the nature of each such financial relationship; and

(F) the termination of the retention of any physician to provide medical services on behalf of the health organization [ Health Organization ] during such physician's term of retention may be accomplished only by the board of directors [ Board of Directors ] or its physician designee(s) and such termination shall be subject to due process procedures adopted by the board of directors [ Board of Directors ] or its physician designee(s) or provided by the retention agreement between the health organization [ Health Organization ] and the subject physician unless the physician is terminated.

(3) Initial Director Statements. Statements signed and verified by each current director [ Director ] indicating that:

(A) such director [ Director ] is licensed by the board [ Texas State Board of Medical Examiners ];

(B) such director [ Director ] is actively engaged in the practice of medicine and has no restrictions on his or her Texas medical license ;

(C) such director [ Director ] will, as a director [ Director ], exercise independent judgment in all matters and, specifically, matters relating to credentialing, quality assurance, utilization review, peer review, and the practice of medicine;

(D) such director [ Director ] will, as a director [ Director ], exercise best efforts to cause the health organization [ Health Organization ] to comply with all relevant provisions of the Act and the Rules;

(E) such director [ Director ] will, as a director [ Director ], immediately report to the board [ Texas State Board of Medical Examiners ] any action or event which such director [ Director ] reasonably and in good faith believes constitutes a violation or attempted violation of the Act or the Rules; and

(F) such director [ Director ] has disclosed within such director's [ Director's ] statement the identity of all of such director's [ Director's ] financial relationships, if any, of the type described in paragraph (2)(E) of this subsection [ section ] and provided a concise explanation of the nature of each such financial relationship within such director's [ Director's ] statement.

(4) Initial Compliance Statement. A statement signed and verified by the chief executive officer indicating that the health organization [ Health Organization ] is in compliance with the requirements for certification and continued certification as required by the provisions of the Act and the Rules.

(5) Initial Fee Payment. A fee in the amount and form specified by the Rules.

§177.5.Special Requirements for 162.001(b) Health Organizations .

In addition to the general by-law requirements set forth herein for health organizations [ Health Organizations ] seeking certification under §162.001(b) of the Act , any health organization [ Health Organization ] in which a member [ Member ] is either a person who is not a physician actively engaged in the practice of medicine or an entity or organization that is not wholly owned and controlled by physicians actively engaged in the practice of medicine must comply with the following requirement:

(1) All credentialing, quality assurance, utilization review and peer review policies shall be made exclusively by the board of directors [ Board of Directors ]; however, following consultation with the board of directors [ Board of Directors ], the member(s) [ Member(s) ] may retain the right to approve, or in the case of a health organization [ Health Organization ] seeking to obtain or maintain tax exempt status the right to make, any financial decision of the health organization [ Health Organization ] including, but not limited to, decisions regarding capital and operating budgets, physician compensation and benefits, expenditures of monies, and managed care contracts in which the health organization [ Health Organization ] is at financial risk, the substance of which requirements shall be provided for in the by-laws of the health organization [ Health Organization ].

(2) Subsequent to the appointment of the initial board of directors [ Board of Directors ], a member [ Member ] may not appoint or elect any director [ Director ] without the approval of at least a majority of the board of directors [ Board of Directors ] unless required by law including requirements to obtain or maintain tax exemption.

(3) Without the approval of at least a majority of the board of directors [ Board of Directors ], the member [ Member ] may not unilaterally amend the bylaws of the health organization [ Health Organization ] unless required by law including requirements to obtain or maintain tax exemption.

§177.6.Biennial Reports for 162.001(b) Health Organizations [ Report ].

Each health organization [ Health Organization ] certified under the Act, §162.001(b), shall file with the board [ Texas State Board of Medical Examiners ] a biennial report [ Biennial Report ] in September of each odd numbered year if certified in an odd numbered year, and in September of each even numbered year if certified in an even numbered year, and the biennial report [ Biennial Report ] shall include:

(1) Biennial Identification Statement. A statement signed and verified by the chief executive officer:

(A) indicating the name and mailing address of the health organization [ Health Organization ];

(B) indicating the names and mailing addresses of all members [ Member(s) ] or that there are no members [ Member(s) ];

(C) indicating the names and mailing addresses of all officers [ Officers ];

(D) indicating the names and mailing addresses of all directors [ Directors ]; and

(E) disclosing any changes in the composition of the board of directors [ Board of Directors ] since the last biennial report.

(2) Biennial Document Statement. A statement signed and verified by the chief executive officer attaching a copy of the current certificate of incorporation and by-laws of the health organization [ Health Organization ] if not already on file with the board [ Texas State Board of Medical Examiners ] and indicating:

(A) whether or not the by-laws or articles of incorporation of the health organization [ Health Organization ] have been revised since the last biennial report;

(B) whether or not such revisions, if any, were recommended or approved by the board of directors [ Board of Directors ]; and

(C) a concise explanation of such revisions, if any.

(3) Biennial Director Statements. Statements signed and verified by each current director [ Director ] indicating that:

(A) such director [ Director ] is licensed by the board [ Texas State Board of Medical Examiners ];

(B) such director [ Director ] is actively engaged in the practice of medicine and has no restrictions on his or her Texas medical license ;

(C) such director [ Director ] will, as a director [ Director ], exercise independent judgment in all matters and, specifically, matters relating to credentialing, quality assurance, utilization review, peer review, and the practice of medicine;

(D) such director [ Director ] will, as a director [ Director ], exercise best efforts to cause the health organization [ Health Organization ] to comply with all relevant provisions of the Act and the Rules;

(E) such director [ Director ] will, as a director [ Director ], immediately report to the board [ Texas State Board of Medical Examiners ] any action or event which such director [ Director ] reasonably and in good faith believes constitutes a violation or attempted violation of such Act or the Rules; and

(F) such director [ Director ] has disclosed within such director's [ Director's ] statement the identity of all of such director's [ Director's ] financial relationships, if any, of the type described in §177.4(2)(E) of this title (relating to Applications for Certification as a 162.001(b) Health Organization) and provided a concise explanation of the nature of each such financial relationship within such director's [ Director's ] statement.

(4) Biennial Compliance Statement. A statement signed and verified by the chief executive officer indicating that the Health Organization is in compliance with the requirements for certification and continued certification as required by the provisions of the Act and the Rules.

(5) Biennial Fee Payment. A fee in the amount and form specified by the Rules.

§177.7.Establishment of Fees.

(a) Fees established pursuant to §153.011 and §153.051 of the Act relating to initial certification, recertification, and late applications for recertification are set forth under Chapter 175 of this title (relating to Fees, Penalties, and Applications). [ The fees established pursuant to the Act, §153.011 and §153.051 and the Rules for certification and continued certification shall be as follows. ]

[(1) Initial Fee. In addition to all other requirements for certification under the Act, §162.001(b), and the Rules, to obtain certification, the Health Organization shall submit a fee of $2,500 in the form of a check or money order payable to the Texas State Board of Medical Examiners.]

[(2) Biennial Fee. In addition to all other requirements for continued certification under the Act, §162.001(b), and the Rules, to maintain certification, at the time of submission of the Biennial Report, the Health Organization shall submit a fee of $1,000 in the form of a check or money order payable to the Texas State Board of Medical Examiners.]

(b) [ (3) ] [ Late Fee. ] In addition to all other requirements for continued certification under the Act, §162.001(b), if the health organization [ Health Organization ] is more than 30 days late in submitting their completed biennial report [ Biennial Report ] and biennial fee [ Biennial Fee ] as specified in §177.6 [ §177.7(2) ] of this title (relating to Biennial Reports for 162.001(b) Health Organizations [ Initial Certification ]), the health organization [ Health Organization ] will be required to pay a late fee penalty [ amount of $1,000 ] at the time of submission of their late biennial report [ Biennial Report ] in addition to the biennial fee in the form of a check or money order payable to the board [ Texas State Board of Medical Examiners ].

(c) [ (4) ] [ Refunds. ] Fees shall not be refundable.

§177.8.Failure to Submit Reports or Fees for 162.001(b) Health Organizations .

(a) The failure of a health organization [ Health Organization ] seeking certification under the Act, §162.001(b), and the Rules to submit any required fee shall be grounds for the board [ Texas State Board of Medical Examiners ] to stop the processing of the application for certification and to deny the application.

(b) The failure of a health organization [ Health Organization ] which is certified under the Act, §162.001(b), and the Rules to timely submit an accurate biennial report [ Biennial Report ] along with any required fee within 90 days of its due date may result in decertification at the next board [ Board ] meeting of the board [ Texas State Board of Medical Examiners ].

(c) If a health organization [ Health Organization ] has been decertified, it will be required to submit a new application for certification as a nonprofit health organization under §162.001(b) of the Act and applicable [ a ] fee [ of $2,500 ] with the application for certification [ in the form of a check or money order payable to the Texas State Board of Medical Examiners ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402447

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 177. CERTIFICATION OF NON-PROFIT ORGANIZATIONS

22 TAC §§177.9 - 177.16

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas State Board of Medical Examiners or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed repeals: Texas Occupations Code Annotated, §§162.001 - 162.003.

§177.9.Denial of Certification.

§177.10.Revocation of Certification

§177.11.Review of Applications and Reports.

§177.12.Procedure for Denial of Certification or Decertification.

§177.13.Approved Form.

§177.14.Compliance Date.

§177.15.Migrant, Community or Homeless Health Centers.

§177.16.Complaint Procedure Notification.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402448

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 177. CERTIFICATION OF NON-PROFIT HEALTH ORGANIZATIONS

22 TAC §§177.9 - 177.13

The new rules are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed new rules: Texas Occupations Code Annotated, §§162.001 - 162.003.

§177.9.Migrant, Community or Homeless Health Centers.

(a) Section 162.001(c), non-profit health organizations. Migrant, community, or homeless health centers organized and operated under the authority of and in compliance with 42 U.S.C. §254b or §254c, or federally qualified health centers under 42 U.S.C. §1396(d)(1)(2)(B), that are non-profit corporations under the Texas Non-Profit Corporation Act, Article 1396-1.01, Texas Civil Statutes, and the Internal Revenue Code, §501(c)(3), and who wish to obtain approval and certification to contract with and employ physicians pursuant to the Medical Practice Act, §162.001(c), Texas Occupations Code Annotated, Title 3 Subtitle B, may do so by submitting an application on a form approved by the board to the permits department of the board with the following attached documentation:

(1) a copy of the certificate of incorporation under the Texas Non-Profit Corporation Act;

(2) a copy of documentation verifying that a determination has been made that the organization is tax exempt under the Internal Revenue Code pursuant to §501(c)(3); and,

(3) a copy of documentation verifying that the organization is organized and operated as a migrant, community, or homeless health center under the authority of and in compliance with 42 U.S.C. §254b or §254c, or is a federally qualified health center under 42 U.S.C. §1396(d)(1)(2)(B).

(b) Initial Fee Payment. A fee in the amount and form specified by board rules.

(c) Biennial reports. Each organization approved and certified under the Act, §162.001(c), shall file with the board a completed biennial report on a board-approved form that contains updated and current information which would otherwise be required for initial approval and certification to contract with and employ physicians. The biennial report shall be submitted in September of each odd numbered year if certified in an odd numbered year, and in September of each even numbered year if certified in an even numbered year. Failure to timely submit a required biennial report shall be grounds for denial of recertification to contract with and employ physicians pursuant to §177.10(e) of this chapter (relating to Review of Applications and Reports).

(d) Biennial Fee Payment. There is no biennial fee for health organizations certified pursuant to §162.001(c) of the Act.

§177.10.Review of Applications and Reports.

(a) Applications for certification and biennial reports under this section shall be initially reviewed by the permits and legal staffs of the board or other designees of the board to determine compliance with the requirements for certification.

(b) If an application for certification is insufficient or there is any other basis for denial, the health organization will be notified in writing that unless it takes corrective action or remedies the insufficiency, the health organization's application will be denied. The health organization shall have 60 days from the date of the mailing by the board to submit the corrected application.

(c) If a biennial report is insufficient or there is any other basis for decertification, the health organization will be notified in writing that unless it takes corrective action, the health organization will be recommended for decertification at the next meeting of the board. The health organization shall have 60 days from the date of the mailing by the board to submit the corrected biennial report.

(d) If upon review of the application or biennial report and any supporting documentation, the applying or reporting appears to be in compliance for certification or continued certification, such certification or recertification shall be made upon approval of the board or a committee of the board.

(e) In the event that such compliance cannot be determined or is otherwise in question for any reason including complaints of actions by the health organization in contravention of this section or the Act, including but not limited to failure to provide due process or evidence of undue influence on the practice of medicine, the application or statement and any supporting documentation shall be submitted to the board or a committee of the board for further review, investigation, approval, denial, or decertification.

§177.11.Denial of Certification.

Subject to due process procedures, the board may refuse to certify any health organization making application to the board if in the board's determination the applying health organization is established or organized or operated in contravention to or with the intent to circumvent any of the provisions of the Act.

§177.12.Revocation of Certification.

(a) In the event that the Board receives information about a health organization including complaints of actions by the Health Organization in contravention of this chapter or the Act, including but not limited to failure to provide due process or evidence of undue influence on the practice of medicine information, such information shall be referred to the board's investigation department.

(b) Subject to due process procedures, the board shall revoke a certification if in the board's determination the health organization is established, organized, or operated in contravention of or with the intent to circumvent any of the provisions of the Act or the board's rules.

(c) Chapter 187 of this title (relating to Procedural Rules) shall govern procedures relating to revocation of certification where applicable. If the provisions of Chapter 187 of this title conflict with the Act or rules under this chapter, the Act and provisions of this chapter shall control.

§177.13.Complaint Procedure Notification.

(a) Method of Notification. For the purpose of directing complaints to the board regarding health-care delivery by licensees of the board practicing through non-profit health organizations certified pursuant to the Medical Practice Act, §162.001, the non-profit health organizations which are certified or otherwise approved pursuant to the Medical Practice Act, §162.001(b) and (c), shall provide notification to the public of the name, mailing address, and telephone number of the board by displaying in a prominent location at each site of health-care delivery and readily visible to patients or potential patients, signs in English and Spanish of no less than 8 1/2 inches by 11 inches in size with the board-approved notification statement printed alone and in its entirety in black on white background in type no smaller than standard 24-point Times Roman print with no alterations, deletions, or additions to the language of the board-approved statement.

(b) Approved English Notification Statement. The following notification statement in English is approved by the board for purposes of these rules:

Figure: 22 TAC §177.13(b)

(c) Approved Spanish Notification Statement. The following notification statement in Spanish is approved by the board for purposes of these rules:

Figure: 22 TAC §177.13(c)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402449

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 184. SURGICAL ASSISTANTS

22 TAC §184.14

The Texas State Board of Medical Examiners proposes an amendment to §184.14, concerning qualifications of supervising physicians. The amendment clarifies that a supervising physician's license must be unrestricted and active.

Michele Shackelford, General Counsel, Texas State Board of Medical Examiners, has determined that for the first five-year period the rule is in effect there will be no fiscal implications to state or local government as a result of enforcing the rule as proposed.

Ms. Shackelford also has determined that for each year of the first five years the rule as proposed is in effect the public benefit anticipated as a result of enforcing the section will be clarification that a supervising physician's license must be unrestricted and active. There will be no effect on small or micro businesses. There will be no effect to individuals required to comply with the section as proposed.

Comments on the proposal may be submitted to Colleen Klein, P.O. Box 2018, Austin, Texas 78768-2018. A public hearing will be held at a later date.

The amendment is proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed amendment: Texas Occupations Code Annotated, §206.251.

§184.14.Supervising Physician.

To be authorized to supervise a surgical assistant, a physician must be currently licensed as a physician in this state by the medical board. The license must be unrestricted and active [ , and not under an order of the board ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402450

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 185. PHYSICIAN ASSISTANTS

22 TAC §§185.8, 185.16, 185.20

The Texas State Board of Medical Examiners proposes amendments to §§185.8, 185.16 and 185.20, concerning Physician Assistants. The amendments regard inactive status, supervising physicians, employment guidelines, and complaints.

Elsewhere in this issue of the Texas Register , the Texas State Board of Medical Examiners proposes the rule review of Chapter 185.

Michele Shackelford, General Counsel, Texas State Board of Medical Examiners, has determined that for the first five-year period the rules are in effect there will be no fiscal implications to state or local government as a result of enforcing the rules as proposed.

Ms. Shackelford also has determined that for each year of the first five years the rules as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be clarification of rules to ensure that doctors who delegate any act to a physician assistant requires on-site presence of doctor at that site 20% of site's business hours when PA works. There will be no effect on small or micro businesses. There will be no effect to individuals required to comply with the section as proposed.

Comments on the proposal may be submitted to Colleen Klein, P.O. Box 2018, Austin, Texas 78768-2018. A public hearing will be held at a later date.

The amendments are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed amendments:

185.8 - Texas Occupations Code Annotated, §204.157.

185.16 - Texas Occupations Code Annotated, §§157.001-.0542, 204.204-.205.

185.20 - Texas Occupations Code Annotated, §204.251-.252

§185.8.Inactive License.

(a) A license holder may have the license holder's license placed on inactive status by applying to the board. A physician assistant with an inactive license is excused from paying renewal fees on the license and may not practice as a physician assistant in Texas.

(b) In order for a license holder to be placed on inactive status, the license holder must have a current annual registration permit and have a license in good standing .

(c) A license holder who practices as a physician assistant while on inactive status is considered to be practicing without a license.

(d) A physician assistant may return to active status by applying to the board, paying the license renewal fee, complying with the requirements for license renewal under the Physician Assistant Licensing Act and complying with subsection (e) of this section.

(e) A physician assistant applicant applying to return to active status shall provide sufficient documentation to the board that the applicant has, on a full-time basis as defined in §185.4(d) of this chapter, actively practiced as a physician assistant or has been on the active teaching faculty of an acceptable approved physician assistant program, within either of the two years preceding receipt of an application for reactivation. Applicants who do not meet this requirement may, in the discretion of the board, be eligible for the reactivation of a license subject to one or more of the following conditions or restrictions as set forth in paragraphs (1)-(5) of this subsection:

(1) current certification by the National Commission on the Certification of Physician Assistants;

(2) completion of specified continuing medical education hours approved for Category 1 credits by a CME sponsor approved by the American Academy of Physician Assistants;

(3) limitation and/or exclusion of the practice of the applicant to specified activities of the practice as a physician assistant;

(4) remedial education; and

(5) such other remedial or restrictive conditions or requirements which, in the discretion of the board are necessary to ensure protection of the public and minimal competency of the applicant to safely practice as a physician assistant.

§185.16.Employment Guidelines.

(a) Except as otherwise provided in this section, a physician may supervise up to five physician assistants, or their full-time equivalents. "Full time" shall mean no more than 50 hours per week.

(b) A physician assistant may not independently bill patients for the services provided by the physician assistant except where provided by law.

(c) Except at a site serving medically underserved populations as defined by Sec. 157.052 of the Tex. Occ. Code , a physician assistant shall not practice at a site where that physician assistant's supervising physician is not present at least 20 percent of the site's listed business hours . This provision shall not be interpreted to prevent a physician who has delegated prescriptive authority to a PA or APN pursuant to Chapter 157 of the Tex. Occ. Code from applying for a waiver in accordance with Sec. 157.0542 of the Tex. Occ. Code and [ unless the supervising physician has obtained a waiver under ] §193.6(i) of this title (relating to Waivers).

(d) A physician who provides medical services in preventive medicine, disease management, health and wellness education, or similar services in an accredited academic/teaching institution listed in paragraphs (1)-(10) of this subsection, or its affiliates, may be denoted as the supervising physician for more than five physician assistants in that institution or its affiliates, provided the supervising physician determines that the physician assistants are properly trained to deliver the services, that the services are of such a nature that they may be safely and competently delivered by the supervised physician assistants, and the proper paperwork has been filed with the Texas State Board of Medical Examiners. The supervision of physician assistants must comply with all institutional rules and there must be accurate and timely internal institutional records, which are available upon request within 24 hours to the Texas State Board of Medical Examiners, which list the name and license number of the physician who is specifically assigned to actively supervise each physician assistant at one of the following institutions:

(1) University of Texas Medical Branch at Galveston;

(2) University of Texas Southwestern Medical Center at Dallas;

(3) University of Texas Health Science Center at Houston;

(4) University of Texas Health Science Center at San Antonio;

(5) University of Texas Health Center at Tyler;

(6) University of Texas M.D. Anderson Cancer Center;

(7) Texas A&M University College of Medicine;

(8) Texas Tech University School of Medicine;

(9) Baylor College of Medicine; or

(10) University of North Texas Health Science Center at Fort Worth.

(e) A physician who holds the position of Medical Director, Chief of Staff, or Emergency Room Department Chair at a licensed hospital may be denoted as the supervising physician for more than five physician assistants for the purpose of staffing a hospital emergency room. This physician may then delegate the direct supervision of the physician assistant to staff physicians providing medical services within the emergency room, provided that the supervising physician determines that the physician assistants are properly trained to deliver the services, that the services are of such a nature that they may be safely and competently delivered by the supervised physician assistants, and that the proper paperwork has been filed with the Texas State Board of Medical Examiners. The supervision of physician assistants must comply with all institutional rules and there must be accurate and timely internal institutional records, which are available upon request within 24 hours to the Texas State Board of Medical Examiners, which list the name and license number of the physician who is specifically assigned to actively supervise each physician assistant.

(f) The provisions of subsections (a), (d), and (e) of this section relating to the number of physician assistants authorized to be supervised shall not be interpreted to change or modify rules or statutes relating to the number of physician assistants to whom prescriptive authority may be delegated.

§185.20. Complaints [ Complaint Procedure Notification ].

Chapter 178 [ 188 ] of this title (relating to Complaints [ Complaint Procedure Notification ]) shall govern physician assistants with regard to procedures for the initiation, filing and appeals of complaints and methods of notification for filing complaints with the agency. If the provisions of Chapter 178 [ 188 ] conflict with the Act or rules under this chapter, the Act and provisions of this chapter shall control.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402451

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 187. PROCEDURAL RULES

The Texas State Board of Medical Examiners proposes an amendment to §187.2 and §187.31, the repeal of §§187.26-187.28 and new §187.26 and §187.27, concerning Procedural Rules. The amendments, repeals and new rules regard default judgments by the Board in SOAH administrative proceedings.

Michele Shackelford, General Counsel, Texas State Board of Medical Examiners, has determined that for the first five-year period the rules are in effect there will be no fiscal implications to state or local government as a result of enforcing the rules as proposed.

Ms. Shackelford also has determined that for each year of the first five years the rules as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be clarification of the procedures to be followed regarding service in SOAH proceedings and peer review proceedings. There will be no effect on small or micro businesses. There will be no effect to individuals required to comply with the section as proposed.

Comments on the proposal may be submitted to Colleen Klein, P.O. Box 2018, Austin, Texas 78768-2018. A public hearing will be held at a later date.

Subchapter A. GENERAL PROVISIONS AND DEFINITIONS

22 TAC §187.2

The amendment is proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed amendment: Texas Occupations Code Annotated, §§164.002 and 164.007 and 164.004-.006 and Govt Code 2001.056 and 2001.051 and 2001.141 and 2001.052.

§187.2.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Act--Tex. Occ. Code Ann, Title 3 Subtitle B, for physicians; Tex. Occ. Code Ann. Chapter 204 for physician assistants; Tex. Occ. Code Ann. Chapter 205 for acupuncturists; and Tex. Occ. Code Ann. Chapter 206 for surgical assistants.

(2) Address of record--The mailing address of each licensee or applicant as provided to the agency pursuant to the Act.

(3) Administrative law judge (ALJ)--An individual appointed to preside over administrative hearings pursuant to the APA.

(4) Agency--The divisions, departments, and employees of the Texas State Board of Medical Examiners, the Texas State Board of Physician Assistant Examiners, and the Texas State Board of Acupuncture Examiners.

(5) APA--The Administrative Procedure Act, Texas Government Code, Chapter 2001 as amended.

(6) Applicant--A person seeking a license from the board.

(7) Attorney of record--A person licensed to practice law in Texas who has provided staff with written notice of representation.

(8) Authorized representative--An attorney of record or any other person who has been designated in writing by a party to represent the party at a board proceeding.

(9) Board--The Texas State Board of Medical Examiners for physicians and surgical assistants, the Texas State Board of Acupuncture Examiners for acupuncturists, and the Texas State Board of Physician Assistant Examiners for physician assistants.

(10) Board member--One of the members of the board appointed pursuant to the Act.

(11) Board proceeding--Any proceeding before the board or at which the board is a party to an action, including a hearing before SOAH.

(12) Board representative--a board member or district review committee member who sits on a panel at an informal proceeding.

(13) Complaint--Pleading filed at SOAH by the board alleging a violation of the Act.

(14) Contested case--A proceeding, including but not restricted to licensing, in which the legal rights, duties, or privileges of a party are to be determined by the board after an opportunity for an administrative hearing to be held at SOAH.

(15) Default judgment--The issuance of a proposal for decision or board order in which the factual allegations against a party are deemed admitted as true upon the party's failure to appear at a properly noticed SOAH hearing or ISC.

(16) Default Order--A board order in which the factual allegations against a party are deemed admitted as true upon the party's failure to file a timely answer to a Complaint or to appear at a properly noticed SOAH hearing.

(17) [ (16) ] Documents--Applications, petitions, complaints, motions, protests, replies, exceptions, answers, notices, or other written instruments filed with the board in a board proceeding.

(18) [ (17) ] Executive director--The executive director of the agency, the authorized designee of the executive director, or the secretary of the board if and whenever the executive director and authorized designee are unavailable.

(19) [ (18) ] Formal board proceeding--any proceeding requiring action by the board, including a temporary suspension hearing.

(20) [ (19) ] Group practice--Any business entity, including a partnership, professional association, or corporation, organized under Texas law and established for the purpose of practicing medicine in which two or more physicians licensed in Texas are members of the practice.

(21) [ (20) ] Informal board proceeding--Any proceeding involving matters before the board prior to the filing of a pleading at SOAH, to include, but not limited to show compliance proceedings, eligibility determinations, and informal resolution conferences.

(22) [ (21) ] Informal show compliance proceeding--a board proceeding that provides a licensee the opportunity to demonstrate compliance with all requirements of the Act and board rules either in writing as set out in §187.17 of this title (relating to Informal Show Compliance Proceeding Based on Written Information) or through a personal appearance with one or more representatives of the board as set out in §187.18 of this title (relating to Informal Show Compliance Proceeding and Settlement Conference Based on Personal Appearance ("ISC")) and an opportunity to enter into an informal settlement.

(23) [ (22) ] ISC--Informal Show Compliance Proceeding and Settlement Conference Based on Personal Appearance.

(24) [ (23) ] License--Includes the whole or part of any board permit, certificate, approval, registration or similar form of permission authorized by law.

(25) [ (24) ] Licensee--Any person to whom the agency has issued a license, permit, certificate, approval, registration or similar form of permission authorized by law.

(26) [ (25) ] Licensing--The agency process relating to the granting, denial, renewal, revocation, cancellation, suspension, limitation, reinstatement or reissuance of a license.

(27) [ (26) ] National Practitioner Data Bank (NPDB) reportable action--In accordance with the Health Care Quality Improvement Act, 42 U.S.C. §11132, a public board action subject to reporting to the NPDB, includes a revocation, suspension, restriction or limitation of a physician's license or public reprimand. An administrative penalty or a requirement that a physician obtain additional education or training are not considered reportable actions for the purpose of reporting to the NPDB, however, all disciplinary actions are public as set out in the Act.

(28) [ (27) ] Party--The board and each person named or admitted as a party in a SOAH hearing or contested case before the board.

(29) [ (28) ] Person--Any individual, partnership, corporation, association, governmental subdivision, or public or private organization.

(30) [ (29) ] Petition--Pleading filed at SOAH by the board alleging the reasons for the denial of a license.

(31) [ (30) ] Pleading--A written document submitted by the board, which requests procedural or substantive relief, makes claims, alleges facts, makes legal arguments, or otherwise addresses matters involved in a board proceeding.

(32) [ (31) ] Presiding officer--The president of the board or the duly qualified successor of the president or other person presiding over a board proceeding.

(33) [ (32) ] Probationer--A licensee who is under a board order.

(34) [ (33) ] Probationer show compliance proceeding--A board proceeding that provides a probationer the opportunity to demonstrate compliance with the Act, board rules, and board order prior to the board finding that a probationer is in noncompliance with the probationer's order.

(35) [ (34) ] Register--The Texas Register.

(36) [ (35) ] Respondent--in a contested case, the licensee or applicant who either formally contests or defaults on an action rendered in a board proceeding.

(37) [ (36) ] Rule--Any agency statement of general applicability that implements, interprets, or prescribes law or policy, or describes the procedures or practice requirements of this board. The term includes the amendment or repeal of a prior section but does not include statements concerning only the internal management or organization of any agency and not affecting private rights or procedures. This definition includes substantive regulations.

(38) [ (37) ] Secretary--The secretary-treasurer of the board.

(39) [ (38) ] SOAH--The State Office of Administrative Hearings.

(40) [ (39) ] SOAH hearing--A public adjudication proceeding at SOAH.

(41) [ (40) ] SOAH rules--1 Texas Administrative Code §155.1 et seq.

(42) [ (41) ] Texas Public Information Act--Texas Government Code, Chapter 552.

(43) [ (42) ] Witness--Any person offering testimony or evidence at a board proceeding who is not board staff, the respondent, or an authorized representative of the respondent.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402452

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Subchapter C. FORMAL BOARD PROCEEDINGS AT SOAH

22 TAC §§187.26 - 187.28

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas State Board of Medical Examiners or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed repeals: Texas Occupations Code Annotated, §§164.002 and 164.007 and 164.004-.006 and Govt Code 2001.056 and 2001.051 and 2001.141 and 2001.052.

§187.26.Service in SOAH Proceedings.

§187.27.Written Answers in SOAH Proceedings and Default Judgments.

§187.28.Discovery.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402453

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


22 TAC §187.26, §187.27

The new rules are proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed new rules: Texas Occupations Code Annotated, §§164.002 and 164.007 and 164.004-.006 and Govt Code 2001.056 and 2001.051 and 2001.141 and 2001.052.

§187.26.Service in SOAH Proceedings.

(a) Service of a notice of adjudicative hearing and complaint shall be made by hand delivery, regular, registered or certified mail, courier service, or otherwise in accordance with the APA and the Rules of SOAH. The notice shall be delivered to the respondent at the address of record on file with the board. A certificate of service indicating service in the manner provided for in this subsection shall be prima facie evidence of proper service of notice of adjudicative hearing.

(1) Service by hand delivery shall be complete upon hand delivery to the respondent or respondent's agent at the respondent's address of record.

(2) Service by mail shall be complete upon deposit of the paper, enclosed in a postpaid, properly addressed wrapper, in a post office or official depository under the care and custody of the United States Postal Service.

(3) Service by courier service shall be complete upon deposit of the paper, enclosed in a properly addressed wrapper, in a depository under the care and custody of a courier service, with payment under a contract with the board.

(b) Service by publication. If service of notice as prescribed by subsection (a) of this section is impossible or cannot be accomplished, then notice may be made through publication of a notice of hearing once a week for two successive weeks in a newspaper published in the county of the last known place of practice of the person entitled to notice if the county is known. If the person is not currently practicing in Texas as evidenced by information in the agency files, or if the last county of practice is unknown, publication shall be in a newspaper in Travis County. When publication of notice is used, the date of hearing may not be less than ten days after the date of the last required publication of notice. Proof of publication may be accomplished by affidavit of a representative or record custodian of the publisher indicating the required publication or by introduction and admission into evidence of copies of the required notices published for purposes of service.

(c) Service of documents in contested cases pending before SOAH shall be governed by the rules of SOAH.

§187.27.Written Answers in SOAH Proceedings and Default Orders.

(a) Written Answers in SOAH Proceedings.

(1) Within 20 days after the date that service of a notice of adjudicative proceeding and complaint is complete, as provided in §187.26 of this title (related to Service in SOAH Proceedings), the respondent shall file a written answer with the State Office of Administrative Hearings and with the Hearings Coordinator of the board.

(2) The written answer shall specifically admit or deny each factual and legal allegation made against the respondent. As to any allegation, the answer may admit in part and deny in part, clearly stating the parts that are admitted and the parts that are denied. Any unreasonable denial of any allegation or part of an allegation shall constitute unprofessional and dishonorable conduct and shall be considered as an aggravating factor if a violation of the Act is found.

(3) The notice of hearing shall include the following language in at least 10-point bold type: If you do not file a written answer to this notice with the State Office of Administrative Hearings within 20 days of the date notice of service was mailed, a default judgment may be entered against you, which may include the denial of licensure or any or all of the requested sanctions including the revocation of your license. If you file a written answer, but then fail to attend the hearing, a default judgment may be entered against you, which may include the denial of licensure or any or all of the requested sanctions including the revocation of your license. A copy of any response you file with the State Office of Administrative Hearings shall also be provided to the hearings coordinator of the Texas State Board of Medical Examiners.

(4) Upon the filing of a notice of adjudicatory hearing, the Hearings Coordinator for the board shall calculate the date that a written answer must be filed.

(b) Default Orders.

(1) Upon the filing of a written answer or upon the expiration of the time that a written answer must be filed, the Hearings Coordinator shall present the administrative record of the case to the Hearings Counsel for the board, including the complaint, the notice of adjudicative hearing, and the written answer, if any. The Hearings Counsel shall determine whether the notice was properly served and whether the written answer reasonably complies with subsection (a)(2) of this section.

(2) In the event the Hearings Counsel determines that the notice of adjudicative hearing was properly served and that respondent has failed to timely file a written answer, as required by subsections (a)(1) and (a)(2) of this section, the Hearings Counsel shall issue a Determination of Default, which shall be served on respondent and filed at SOAH. The Determination of Default shall specifically state the facts on which the Hearings Counsel has based the Determination of Default, request that the matter be abated or continued at SOAH pending informal disposition by the board, and summarize the requirements by which a Determination of Default may be set aside, as provided in paragraph (6) of this subsection.

(3) The failure to file an answer that reasonably complies with subsection (a)(2) of this section shall be considered the failure to timely file a written answer.

(4) The board shall consider the complaint and the Determination of Default at a meeting of the board not less than twenty days after the date of the Determination of Default. If the board concurs with the findings in the Determination of Default, the board may deem the allegations in the Complaint as true and enter a Default Order.

(5) An answer received after a Determination of Default has been issued shall not be filed.

(6) In the event that the respondent wishes to file an answer after a Determination of Default has been issued, but before a Default Order has been adopted by the board, the respondent must file a Motion to Set Aside the Determination of Default, which shall show the board that

(A) the failure to timely file a written answer was not intentional or the result of conscious indifference but was due to a mistake or accident;

(B) respondent has a meritorious defense;

(C) the setting aside of the Determination of Default will not cause any delay or injury to the board; and

(D) respondent is prepared to file an answer that fully complies with subsection (a)(2) of this section if the board sets aside the Determination of Default.

(7) In the event that the respondent wishes to file an answer after a Default Order has been entered by the board, but before the time for filing a Motion for Rehearing has expired, the respondent must file a Motion for Rehearing to Set Aside Default Order, which shall show that:

(A) the failure to timely file a written answer was caused by fraud, accident, or wrongful act or official mistake of the board;

(B) the failure to timely file a written answer was not the result of respondent's fault or negligence;

(C) the respondent has a meritorious defense; and

(D) respondent is prepared to file an answer that fully complies with subsection (a)(2) of this section if the board grants the Motion for Rehearing. The Motion for Rehearing shall be supported by affidavits and documentary evidence that present a prima facie case for a meritorious defense.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402454

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


22 TAC §187.31

The amendment is proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed amendment: Texas Occupations Code Annotated, §§164.002 and 164.007 and 164.004-.006 and Govt Code 2001.056 and 2001.051 and 2001.141 and 2001.052.

§187.31.Evidence.

(a) Rules. The rules of evidence as applied in nonjury civil cases in the district courts of this state shall be followed, except that evidence inadmissible under those rules may be admitted if it meets the standards set out in the APA §2001.081, as discussed in this section. In all cases, irrelevant, immaterial, or unduly repetitious evidence shall be excluded. When necessary to ascertain facts not reasonably susceptible of proof under those rules, evidence not admissible thereunder may be admitted, except where precluded by statute, if it is of a type commonly relied upon by reasonably prudent men in the conduct of their affairs. The ALJ shall give effect to the rules of privilege recognized by law. Opportunity must be afforded all parties to respond and present evidence and argument of all issues involved.

(b) Objections. Objections to evidentiary offers shall be made and shall be noted in the record. Formal exceptions to rulings of the ALJ during a hearing shall be unnecessary. It shall be sufficient that the party at the time any ruling is made or sought shall have made known to the ALJ the action which he or she desires.

(c) Offer of proof. If evidence is excluded from the record by an exclusionary ruling of the ALJ the evidence may be included in the record by an offer of proof by the sponsoring party by dictating into the record or submitting in writing the substance of the evidence. An offer of proof shall be sufficient to preserve the evidence for review.

(d) Physician's office records. When subpoenaed by the board, unless stipulated by the parties, the office records of each patient shall have stapled thereto an affidavit in the form approved and furnished by the board which contains the requisite elements to comply with the Texas Rules of Evidence, 902 (10)(b), relating to form of affidavits.

(e) Peer review proceedings.

(1) Pursuant to Section 160.006 of the Act, a record, report, or other information that has been submitted to the board in accordance with Chapter 160 of the Act [ Findings ] by a [ " ]medical peer review committee [ " ], [ " ]professional review body[ " ] or any [ " ]health care entity[ " ] may be disclosed by Board Staff and shall be admitted into evidence for all purposes in a disciplinary hearing before the board or at SOAH. The authorization to disclose such records in a disciplinary hearing, provided in Section 160.006(a)(1), creates a statutory exception to the hearsay rule, as stated in Article VIII, Texas Rules of Evidence. Furthermore, such peer review records should be excepted from the hearsay rule in accordance with Rule 803(1), (6), and (8), Texas Rules of Evidence [ as those terms are defined in the Act are admissible in accordance with §2001.081 of the APA ].

(2) In accordance with [ the exceptions to the confidentiality of peer review proceedings cited in ] §§160[ .008- ].009 of the Act, parties and witnesses can be required to produce documents and testify in a hearing or a deposition regarding medical peer review proceedings otherwise privileged pursuant to §160.007 of the Act.

(f) Deferred adjudications. In accordance with §2001.081 of the APA and consistent with §§164.053(a)(1) and 164.053(b) of the Act, deferred adjudications are admissible as evidence that the respondent violated the law with which the respondent was charged and pled to, which gave rise to the deferred adjudication.

(g) Documents. Subject to these requirements, if a hearing will be expedited and the interests of the parties will not be substantially prejudiced, any part of the evidence may be received in written form.

(1) Copies. Documentary evidence may be received in the form of copies or excerpts if the original is not readily available. On request, parties shall be given an opportunity to compare the copy with the original. When numerous documents are offered, the ALJ may limit those admitted to a number which are typical and representative and may, in his or her discretion, require the abstracting of the relevant data from the documents and the presentation of the abstracts in the form of an exhibit; provided, however, that before making such requirement the ALJ shall require that all parties of record or their representatives be given the right to examine the documents from which such abstracts were made.

(2) Prepared testimony. In all contested proceedings, prepared testimony of a witness upon direct examination, either in narrative or question and answer form, may be incorporated in the record as if read or received as an exhibit, upon the witness's being sworn and identifying the same. Such witness shall be subject to cross-examination and the prepared testimony shall be subject to a motion to strike in whole or in part. A party may not be required over objection to submit written testimony. The board relies upon physicians who receive minimal compensation to act as consultants to the board and provide testimony as needed at SOAH hearings. Requiring the board's consultants to spend additional time to reduce their testimony to writing would dissuade and deter physicians from continuing to volunteer to act as board consultants and experts. Accordingly, it is not in the interest of the board and would be substantially prejudicial to the board to require testimony to be reduced to writing.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402455

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Chapter 190. DISCIPLINARY GUIDELINES

Subchapter B. VIOLATION GUIDELINES

22 TAC §190.8

The Texas State Board of Medical Examiners proposes an amendment to §190.8, concerning Disciplinary Guidelines. The amendment will clarify the definition of a proper physician/patient relationship for hospice patients.

Michele Shackelford, General Counsel, Texas State Board of Medical Examiners, has determined that for the first five-year period the rule is in effect there will be no fiscal implications to state or local government as a result of enforcing the rule as proposed.

Ms. Shackelford also has determined that for each year of the first five years the rule as proposed is in effect the public benefit anticipated as a result of enforcing the section will be to clarify the definition of a proper physician/patient relationship for hospice patients. There will be no effect on small or micro businesses. There will be no effect to individuals required to comply with the section as proposed.

Comments on the proposal may be submitted to Colleen Klein, P.O. Box 2018, Austin, Texas 78768-2018. A public hearing will be held at a later date.

The amendment is proposed under the authority of the Occupations Code Annotated, §153.001, which provides the Texas State Board of Medical Examiners to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; and enforce this subtitle.

The following are affected by the proposed amendment: Texas Occupations Code Annotated, §164.001, §164.051(a)(6).

§190.8.Violation Guidelines.

When substantiated by credible evidence, the following acts, practices, and conduct are considered to be violations of the Act. The following shall not be considered an exhaustive or exclusive listing.

(1) Practice Inconsistent with Public Health and Welfare. Failure to practice in an acceptable professional manner consistent with public health and welfare within the meaning of the Act includes, but is not limited to:

(A) - (K) (No change.)

(L) prescription of any dangerous drug or controlled substance without first establishing a proper professional relationship with the patient.

(i) A proper relationship, at a minimum requires:

(I) [ (i) ] establishing that the person requesting the medication is in fact who the person claims to be;

(II) [ (ii) ] establishing a diagnosis through the use of acceptable medical practices such as patient history, mental status examination, physical examination, and appropriate diagnostic and laboratory testing. An online or telephonic evaluation by questionnaire is inadequate;

(III) [ (iii) ] discussing with the patient the diagnosis and the evidence for it, the risks and benefits of various treatment options; and

(IV) [ (iv) ] ensuring the availability of the licensee or coverage of the patient for appropriate follow-up care . [ ; and ]

(ii) A proper professional relationship is also considered to exist between a patient certified as having a terminal illness and who is enrolled in a hospice program, or another similar formal program which meets the requirements of subclauses (I) through (IV) of this clause, and the physician supporting the program. To have a terminal condition for the purposes of this rule, the patient must be certified as having a terminal illness under the requirements of 40 TAC §97.403 and 42 CFR 418.22.

(M) (No change.)

(2) - (6) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 12, 2004.

TRD-200402456

Donald W. Patrick, MD, JD

Executive Director

Texas State Board of Medical Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-7016


Part 16. TEXAS BOARD OF PHYSICAL THERAPY EXAMINERS

Chapter 346. PRACTICE SETTINGS FOR PHYSICAL THERAPY

22 TAC §346.3

The Texas Board of Physical Therapy Examiners proposes amendments to §346.3, concerning Early Childhood (ECI) Setting. These amendments address changes to terminology made by the Texas Interagency Council on Early Childhood Intervention (ECI).

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rule is in effect there will be no effect on state or local government.

Mr. Maline also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be clearer instructions for licensees, families, and employers about how physical therapy services are to be provided when a PT or PTA is working in the ECI setting. There will be no effect on small business, and no economic cost to persons having to comply is anticipated.

Comments on the proposed amendment may be submitted to Nina Hurter, PT Coordinator, Texas Board of Physical Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas 78701; email: nhurter@mail.capnet.state.tx.us.

The amendment is proposed under the Physical Therapy Practice Act, Title 3, Subtitle H, Chapter 453, Occupations Code, which provides the Texas Board of Physical Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subtitle H, Chapter 453, Occupations Code is affected by this amendment.

§346.3.Early Childhood (ECI) Setting.

(a) - (c) (No change.)

(d) The physical therapist may provide general consultation or other program services, including developmental [ rehabilitation ] services (DS) [ (DRS) ], to address child/family-centered issues, and as such, developmental services are [ DRS is ] not physical therapy. Supervision by the PT in the provision of developmental [ rehabilitation ] services refers to case supervision, i.e., monitoring the needs of the child/family, not supervision of the personnel providing those services, and as such, developmental services are [ DRS is ] not physical therapy.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 5, 2004.

TRD-200402325

John P. Maline

Executive Director

Texas Board of Physical Therapy Examiners

Earliest possible date of adoption: May 23, 2004

For further information, please call: (512) 305-6900