89R17944 TYPED     By: Kitzman H.B. No. 1550       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of veterinary professionals and   facilities by the State Board of Veterinary Medical Examiners and   the temporary administration of the board by the Department of   Licensing and Regulation          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 801.002, Occupations Code, is amended to   add Subsection (6-b) to read as follows:          (6-b)  "Veterinary medical facility" means a location,   including a building, portion of a building, or vehicle, in which   the practice of veterinary medicine normally takes place or is   provided.          SECTION 2.  Sections 801.023(a) and (b), Occupations Code,   are amended to read as follows:          (a)  The executive director of the department shall direct   and may dismiss the board's executive director [of the board], and   has authority relating to personnel actions as if the board's   executive director were an employee of the department. The   presiding officer of the commission shall appoint a replacement   executive director of the board if necessary.          (b)  Subject to Subsection (a), the executive director of the   board is responsible for the administration of licensing,   enforcement, financial services, human resources, and workforce   development duties of the board, including:                (1)  accounts payable and accounts receivable;                (2)  budgeting, inventory, and asset management;                (3)  payroll;                (4)  personnel and labor issues;                (5)  purchasing;                (6)  recruitment, evaluation, selection, training, and   promotion of personnel;                (7)  submitting required reports regarding finances,   performance measures, strategic planning, legislative   appropriations requests, operating budgets, and similar   information as required by law;                (8)  legal support services, including responding to   requests for public information; and                (9)  information technology and support.          SECTION 3.  Section 801.101, Occupations Code, is amended to   read as follows:          Sec. 801.101.  EXECUTIVE DIRECTOR. The board shall appoint   [may employ] an executive director. The executive director serves   at the will of the board.          SECTION 4.  Section 801.102, Occupations Code, is amended to   read as follows:          Sec. 801.102.  [CERTAIN DUTIES OF] EXECUTIVE DIRECTOR POWERS   AND DUTIES. (a) The executive director shall [is responsible for]:                (1)  perform any duties assigned by the board and other   duties specified by law;                (2)  administer and enforce the board's programs; and                (3)  issue licenses regulated by the board.                [(1)  safekeeping the money collected under this   chapter; and                (2)  properly disbursing the veterinary fund account   established by this chapter.]          (b)  The executive director may:                (1)  delegate any power or duty assigned to the   executive director unless prohibited by law; and                (2)  issue emergency orders and cease and desist orders   as provided by this chapter.          [(b)  Repealed by Acts 2003, 78th Leg., ch. 285, Sec.   31(39).]          SECTION 5.  Section 801.103, Occupations Code, is amended to   read as follows:          Sec. 801.103.  PERSONNEL. The board may employ personnel to   administer this chapter and may prescribe their duties and   compensation, subject to the personnel policies and budget approved   by the board.          SECTION 6.  Subchapter D, Chapter 801, Occupations Code, is   amended by adding Section 801.150 to read as follows:          Sec. 801.150.  GENERAL POWERS AND DUTIES OF BOARD. The board   shall:                (1)  supervise the executive director's administration   of this chapter;                (2)  formulate policy objectives for the board; and                (3)  approve the board's operating budget and requests   for legislative appropriations.          SECTION 7.  Sections 801.151(a) and (b), Occupations Code,   are amended to read as follows:          (a)  The board shall [may] adopt rules as necessary to   administer this chapter.          (b)  The board shall [may] adopt rules of professional   conduct appropriate to establish and maintain a high standard of   integrity, skills, and practice in the veterinary medicine   profession.          SECTION 8.  Section 801.156, Occupations Code, is amended to   read as follows:          Sec. 801.156.  DATA; PUBLIC ACCESS [REGISTRY]. (a) The   board shall maintain an electronic system allowing it to provide   accurate reporting of information relating to license holders and   applicants, complaints, enforcement actions, investigations, and   inspections [a record of each license holder's:                (1)  name;                (2)  residence address; and                (3)  business address].          (b)  The board shall provide on its public-facing website:                (1)  a feature allowing users to verify a license   holder's license status, determine whether the license holder is   currently subject to disciplinary action, and review relevant   disciplinary orders; and                (2)  data, updated at least quarterly, summarizing the   number, type, and disposition of complaints received during the   fiscal year.          [(b)  A license holder shall notify the board of a change of   business address or employer not later than the 60th day after the   date the change takes effect.]          SECTION 9.  Section 801.157, Occupations Code, is amended to   add Subsection (c) to read as follows:          (c)  The board shall provide information on its website   directing licensed veterinarians to approved peer assistance   programs.          SECTION 10.  Sections 801.158(a) and (c), Occupations Code,   are amended to read as follows:          (a)  The board or executive director may request and, if   necessary, compel by subpoena:                (1)  the attendance of witnesses for examination under   oath; and                (2)  the production for inspection or copying of books,   accounts, records, papers, correspondence, documents, and other   evidence relevant to an investigation of an alleged violation of   this chapter.          (c)  An action filed under this section must be filed in a   district court in Travis County or any other county in which the   department may hold a hearing. [Venue for an action brought under   Subsection (b) is in a district court in:                (1)  Travis County; or                (2)  any county in which the board may hold a hearing.]          SECTION 11.  Section 801.161, Occupations Code, is amended   to read as follows:          Sec. 801.161.  USE OF TECHNOLOGY. (a) The board shall   implement a policy requiring the board to use appropriate   technological solutions to improve the board's ability to perform   its functions. The policy must ensure that the public is able to   interact with the board on the Internet.          (b)  The board may by rule require an applicant or license   holder to provide an e-mail address for purposes of receiving   correspondence.  An e-mail address provided under this section is   confidential and is not subject to disclosure under Chapter 552,   Government Code.          (c)  Notwithstanding any other law, the board may by rule   provide that service of any notice, order, or pleading required   under this chapter or under Chapter 2001, Government Code, may be   made electronically to the e-mail address provided pursuant to   subsection (b).          SECTION 12.  Section 801.163(d), Occupations Code, is   amended to read as follows:          (d)  Notwithstanding any other law, [To the extent of any   conflict with] Chapter 2110, Government Code, does not apply to an   advisory committee appointed under this section [and board rules   adopted under this section control].          SECTION 13.  Subchapter D, Chapter 801, Occupations Code, is   amended by adding Section 801.1631 to read as follows:          Sec. 801.1631.  INSPECTIONS AND INVESTIGATIONS. (a) The   board may conduct inspections or investigations as necessary to   enforce the laws administered by the board.          (b)  To perform its functions under subsection (a), the board   may, during reasonable business hours:                (1)  enter a veterinary medical facility or other   business premises of a person regulated by the board, or of a person   suspected of being in violation of, or threatening to violate, a law   administered by the board, or a rule or order of the board or   executive director; and                (2)  examine and copy records pertinent to the   inspection or investigation.          (c)  The board may take a disciplinary action authorized by   this chapter for a violation identified during an inspection.          SECTION 14.  Section 801.164, Occupations Code, is amended   to read as follows:          Sec. 801.164.  RISK-BASED INSPECTIONS [RELATED TO   CONTROLLED SUBSTANCES PRACTICES]. (a) The board shall [may]   [conduct a inspection] prioritize inspections relating to key risk   factors identified by the board, including previous violations by   the license holder or [of a veterinarian's practice based on]   information [obtained from the veterinarian or another source]   concerning a [the] veterinarian's use, handling, prescribing,   dispensing, or delivery of controlled substances.          (b)  The board may use alternative inspection methods,   including videoconference or similar technology, instead of   conducting an in-person inspection in circumstances the board   considers appropriate.          SECTION 15.  Subchapter D, Chapter 801, Occupations Code, is   amended by adding Section 801.165 to read as follows:          Sec. 801.165.  REFUND. (a)  Subject to Subsection (b), the   board or executive director may order a license holder to pay a   refund to a consumer as provided in an agreed settlement, default   order, or board order instead of or in addition to imposing an   administrative penalty or sanction.          (b)  The amount of a refund ordered under this section may   not exceed the amount the consumer paid to the license holder for a   service regulated by the board, and may not require payment of other   damages or estimate harm.          SECTION 16.  Subchapter D, Chapter 801, Occupations Code, is   amended by adding Section 801.166 to read as follows:          Sec. 801.166.  RECIPROCITY AGREEMENTS. The board, with   approval of the governor, may enter into an agreement with another   state to allow for licensing by reciprocity.          SECTION 17.  Section 801.205, Occupations Code, is amended   to read as follows:          Sec. 801.205.  GENERAL RULES REGARDING COMPLAINT   INVESTIGATION AND DISPOSITION. The board shall adopt rules   relating to the investigation and disposition of complaints filed   with the board. The rules must:                (1)  distinguish between categories of complaints;                (2)  ensure that complaints are not dismissed without   appropriate consideration; and                (3)  require that the board be advised of a complaint   that is dismissed.[;                (4)  ensure that the person who filed the complaint has   the opportunity to explain the allegations made in the complaint;   and                (5)  prescribe guidelines concerning the categories of   complaints that require the use of a private investigator and the   procedures for the board to obtain the services of a private   investigator.]          SECTION 18.  Section 801.2051, Occupations Code, is amended   to read as follows:          Sec. 801.2051.  PRIORITY OF COMPLAINTS. The board shall   assign priorities and investigate complaints based on risk posed to   the public by the conduct alleged in the complaint. [The board shall   prioritize complaints to resolve the more serious complaints   first.]          SECTION 19.  Section 801.2052, Occupations Code, is amended   to read as follows:          Sec. 801.2052.  DISMISSAL OF BASELESS OR UNFOUNDED   COMPLAINT. (a)  If the board determines at any time that an   allegation or complaint submitted by a person is baseless,   unfounded, or does not fall within the board's regulatory   jurisdiction, the board shall dismiss the complaint. [If, before   the 180th day after the date the board's official investigation of a   complaint is commenced, the board determines in accordance with   rules adopted under this section that a complaint filed with the   board is baseless or unfounded, the board shall:                (1)  dismiss the complaint; and                (2)  include a statement in the record of the complaint   that the complaint was dismissed because the complaint was baseless   or unfounded.]          (b)  The board shall adopt rules to implement this section   and establish criteria for determining that a complaint is baseless   or unfounded.          SECTION 20.  Section 801.2055, Occupations Code, is amended   to add Subsection (c-1) and to amend Subsection (d) as follows:          (c-1)  The board may contract with a qualified individual to   assist in reviewing or investigating complaints requiring medical   expertise.  Except for an act involving fraud, conspiracy, or   malice, an individual with whom the board contracts under this   subsection is immune from liability or from disciplinary action   under this chapter and may not be subject to a suit for damages for   any act arising from the performance of the individual's duties in:                (1)  participating in an informal conference to   determine the facts of a complaint;                (2)  offering an expert opinion or technical guidance   on an alleged violation of this chapter or of a rule or order issued   by the board or executive director;                (3)  testifying at a hearing regarding a complaint; or                (4)  making an evaluation, report, or recommendation   regarding a complaint.          (d)  A veterinarian board member who reviews a complaint   under this section may not [participate in] deliberate or vote in    any subsequent disciplinary proceeding related to the complaint.          SECTION 21.  Section 801.2056, Occupations Code, is amended   to read as follows:          Sec. 801.2056.  COMPLAINTS NOT REQUIRING MEDICAL EXPERTISE.   [(a)] The board shall adopt rules relating to the evaluation and   disposition of complaints not requiring medical expertise. [The   board may delegate to a committee of board staff the authority to   dismiss or enter into an agreed settlement of a complaint that does   not require medical expertise. The disposition determined by the   committee must be approved by the board at a public meeting.          (b)  A complaint delegated under this section shall be   referred for informal proceedings under Section 801.408 if:                (1)  the committee determines that the complaint should   not be dismissed or settled;                (2)  the committee is unable to reach an agreed   settlement; or                (3)  the license holder who is the subject of the   complaint requests that the complaint be referred for informal   proceedings.]          SECTION 22.  Section 801.207, Occupations Code, is amended   to read as follows:          Sec. 801.207.  CONFIDENTIALITY [PUBLIC RECORD; EXCEPTION].   (a)  Except as otherwise provided by this section, a complaint and   investigation concerning a person to whom this chapter applies, and   all information and materials subpoenaed or compiled by the board   in connection with the complaint and investigation, are   confidential and not subject to:                (1)  disclosure under Chapter 552, Government Code; or                (2)  disclosure, discovery, subpoena, or other means of   legal compulsion for their release to any person.          [Except as provided by Subsection (b), a board record is a   public record and is available for public inspection during normal   business hours.]          (b)  Notwithstanding subsection (a), the board may disclose   information regarding a complaint or investigation to:                (1)  a person providing testimony or review on the   board's behalf in a disciplinary proceeding;                (2)  a respondent or the respondent's authorized   representative;                (3)  a professional licensing, credentialing, or   disciplinary entity;                (4)  a peer assistance program approved by the board   pursuant to Section 801.157;                 (5)  a law enforcement agency; or                (6)  a person engaged in bona fide research, if all   individual-identifying information has been deleted.          [Except as provided by Subsection (b-1), each complaint,   investigation file and record, and other investigation report and   all other investigative information in the possession of or   received or gathered by the board or the board's employees or agents   relating to a license holder, an application for license, or a   criminal investigation or proceeding is privileged and   confidential and is not subject to discovery, subpoena, or other   means of legal compulsion for release to anyone other than the board   or the board's employees or agents involved in discipline of a   license holder.]          (b-1)  Not later than the 14th day before the date of an   informal proceeding under Section 801.408, the board shall provide   to the license holder who is the subject of the complaint a copy of   the record of any review conducted under Section 801.2055 of a   complaint requiring medical expertise. The board shall redact the   name of each veterinarian who conducted the review.          (c)  Except as provided by Subsection (b-1), the board shall   protect the identity of a complainant to the extent possible.          (d)  Not later than the 30th day after the date of receipt of   a written request from a license holder who is the subject of a   formal complaint initiated and filed under this subchapter or from   the license holder's counsel of record, and subject to any other   privilege or restriction set forth by rule, statute, or legal   precedent, and unless good cause is shown for delay, the board shall   provide the license holder with access to all information in its   possession that the board intends to offer into evidence in   presenting its case in chief at the contested hearing on the   complaint. The board is not required to provide:                (1)  a board investigative report or memorandum;                (2)  the identity of a nontestifying complainant; or                (3)  attorney-client communications, attorney work   product, or other materials covered by a privilege recognized by   the Texas Rules of Civil Procedure or the Texas Rules of Evidence.          (e)  Furnishing information under Subsection (d) does not   constitute a waiver of privilege or confidentiality under this   chapter or other applicable law.          (f)  The board may not be compelled to release or disclose   complaint and investigation information or materials to a person   listed in Subsection (b) if the board has not issued a notice of   alleged violation related to the information or materials.          (g)  Notices of alleged violation and disciplinary orders,   including warnings and reprimands, issued by the board are not   confidential and are subject to disclosure in accordance with   Chapter 552, Government Code.          (h)  Notwithstanding any other provision of this section, if   an investigation would be jeopardized by the disclosure of   information relating to a complaint or investigation, the board may   temporarily withhold or otherwise refrain from disclosing to any   person any information or materials that the board would otherwise   be required to disclose.          SECTION 23.  Section 801.208(d), Occupations Code, is   amended to read as follows:          (d)  The notification may not include information that is   confidential under Section 801.207[(b)].          SECTION 24.  Section 801.253, Occupations Code, as amended   by Acts 2011, 82nd Leg., R.S., Ch. 940 (H.B. 414), Sec. 9, is   reenacted and amended to read as follows:          (a)  The board shall conduct licensing examinations for   veterinarians as provided by board rule. [The board shall conduct   the examination at a time and place the board determines is   convenient for applicants.]          (b)  The board shall provide notice of a licensing   examination on its internet website [by publication in a newspaper   or periodical.          (c)  The board shall examine each qualified applicant who   attends the examination.]          SECTION 25.  Section 801.406, Occupations Code, is amended   to read as follows:          Sec. 801.406.  REINSTATEMENT AFTER [REQUIRED DISCIPLINARY   ACTION FOR] CERTAIN FELONY CONVICTIONS. (a) If a person's license   has been revoked:                (1)  by operation of law pursuant to Section 53.021(b),   Occupations Code, upon imprisonment after a conviction of a felony   under Chapter 481 or 483 of the Health and Safety Code; or                (2)  by the board upon conviction of a license holder of   an offense under Section 485.033, Health and Safety Code, or of any   offense under Chapter 481 or 483 of that code,   [On conviction of a license holder of a felony under Section   485.033, Health and Safety Code, or Chapter 481 or 483 of that code,   the board shall, after conducting an administrative hearing in   which the fact of conviction is determined, impose a penalty as   provided by Section 801.401. The board shall set the amount of the   penalty to match the seriousness of the conviction.          (b)  Repealed by Acts 2005, 79th Leg., Ch. 27, Sec. 27(2),   eff. September 1, 2005.          (c)  The] the board may reinstate or reissue the [a] license   [suspended or revoked under this section] only upon determining [on   an express determination based on substantial evidence contained in   an investigative report indicating] that reinstatement or   reissuance of the license is in the best interests of [:                (1)  ]the public[;] and                [(2)]  the person whose license has been [suspended or]   revoked.          SECTION 26.  Section 801.407(d), Occupations Code, is   amended to read as follows:          (d)  The board shall by rule prescribe notice procedures for   proceedings under this subchapter [The board may conduct   deliberations relating to a disciplinary action during executive   session. At the conclusion of those deliberations, the board shall   vote and announce its decision to the license holder in open   session].          SECTION 27.  Section 801.408, Occupations Code, is amended   to read as follows:          Sec. 801.408.  INFORMAL PROCEEDINGS. (a) The board by rule   shall adopt procedures governing:                (1)  informal disposition of a contested case under   Section 2001.056, Government Code; and                (2)  an informal proceeding held in compliance with   Section 2001.054, Government Code.          (b)  Rules adopted under Subsection (a) must:                (1)  provide the complainant and the license holder an   opportunity to be heard; and                (2)  require the presence of a member of the board's   legal staff [general counsel] or a representative of the attorney   general during an informal proceeding to advise the board or the   board's employees.          (c)  A committee of two or more veterinarian board members   and one or more public board members must be present at an informal   proceeding for a complaint that requires medical expertise. The   committee shall recommend enforcement action at the informal   proceeding.          [(d)  A committee of board staff may recommend enforcement   action at an informal proceeding for a complaint that does not   require medical expertise or may refer the complaint to the   committee of board members under Subsection (c).          (e)  At an informal proceeding under this section, and on   agreement with the license holder, the board may order the license   holder to refund an amount not to exceed the amount a client paid to   the license holder instead of or in addition to imposing an   administrative penalty under this chapter. The board may not   require payment of other damages or estimate harm under this   subsection.]          (d) [(f)]   Before an informal disposition is effective, the   board must review and approve at a public meeting an informal   disposition of the complaint recommended by board members or board   staff.          SECTION 28.  Subchapter I, Chapter 801, Occupations Code, is   amended by adding Section 801.4011 to read as follows:          Sec 801.4011.  DEFERRED ACTION.  (a)  For any action or   complaint for which the board proposes to impose on a person a   sanction other than a reprimand or a denial, suspension, or   revocation of a license, the board may:                (1)  defer the final action the board has proposed if   the person conforms to conditions imposed by the board, including   any condition the board could impose as a condition of probation   under Section 801.401; and                (2)  if the person successfully meets the imposed   conditions, dismiss the complaint.          (b)  Except as provided by this subsection, a deferred action   by the board is not confidential and is subject to disclosure in   accordance with Chapter 552, Government Code. If the person   successfully meets the conditions imposed by the board in deferring   final action and the board dismisses the action or complaint, the   deferred action of the board is confidential to the same extent as a   complaint is confidential under Section 801.207.          SECTION 29.  Subchapter J, Chapter 801, Occupations Code, is   amended by adding Section 801.4521 to read as follows:          Sec. 801.4521.  IMPOSITION OF SANCTION. A proceeding under   this subchapter imposing an administrative penalty may be combined   with a proceeding to impose an administrative sanction.  If a   sanction is imposed in a proceeding under this subchapter, the   requirements of this subchapter apply to the imposition of the   sanction.          SECTION 30.  Section 801.453(a), Occupations Code, is   amended to read as follows:          (a)  On a determination by a committee described by Section   801.408(c) [or (d)] that a violation of this chapter or a rule   adopted or order issued under this chapter occurred, the committee   may issue a report to the board stating:                (1)  the facts on which the determination is based; and                (2)  the committee's recommendation on the imposition   of an administrative penalty, including a recommendation on the   amount of the penalty.          SECTION 31.  Section 801.454, Occupations Code, is amended   to read as follows:          Sec. 801.454.  PENALTY TO BE PAID OR HEARING REQUESTED [ON   COMMITTEE'S RECOMMENDATIONS]. (a) Not later than the 20th day   after the date a person receives a [the] notice of alleged   violation, the person may in writing:                (1)  accept the board's [committee's] determination and   recommended administrative penalty; or                (2)  request a hearing on the occurrence of the   violation, the amount of the penalty, or both.          (b)  If the person accepts the board's [committee's]   determination and recommended penalty, the board by order shall   approve the determination and require the person to pay the   recommended penalty [may:                (1)  approve the determination and impose the   recommended penalty;                (2)  modify the determination or recommended penalty;   or                (3)  reject the determination or recommended penalty].          SECTION 32.  Section 801.455, Occupations Code, is amended   to read as follows:          Sec. 801.455.  HEARING [ON COMMITTEE'S RECOMMENDATIONS].     (a) If a respondent requests a hearing pursuant to Section 801.407,   the hearing shall be conducted by the State Office of   Administrative Hearings [If the person requests a hearing or fails   to respond timely to the notice, the executive director shall set a   hearing and give notice of the hearing to the person].          (b)  The State Office of Administrative Hearings shall   consider the board's applicable substantive rules and policies when   conducting a hearing under this subchapter [A hearing set by the   executive director under Subsection (a) shall be held by an   administrative law judge of the State Office of Administrative   Hearings].          (c)  The administrative law judge shall:                (1)  make findings of fact and conclusions of law; and                (2)  promptly issue to the board a proposal for a   decision as to the occurrence of the violation, any recommended   license sanction, and the amount of any proposed administrative   penalty.          SECTION 33.  Section 801.456(a), Occupations Code, is   amended to read as follows:          (a)  Based on the findings of fact, conclusions of law, and   proposal for a decision under Section 801.455(c), the board by   order may determine that:                (1)  a violation has occurred and impose a license   sanction, [an] administrative penalty, or both; or                (2)  a violation did not occur.          SECTION 34.  Section 801.457(a), Occupations Code, is   amended to read as follows:          (a)  Not later than the 30th day after the date the board's   order becomes final, the person shall:                (1)  pay the administrative penalty;                (2)  pay the penalty and file a petition for judicial   review contesting the order [fact of the violation, the amount of   the penalty, or both]; or                (3)  without paying the penalty, file a petition for   judicial review contesting the order [fact of the violation, the   amount of the penalty, or both].          SECTION 35.  Section 801.502(b), Occupations Code, is   amended to read as follows:          (b)  Venue for an action brought under this section is in a   district court in Travis County [Venue for an action under this   section is in:                (1)  the county in which the person against whom the   action is brought resides, if the person is an individual who   resides in this state;                (2)  the county of the defendant's principal office in   this state if the defendant is not an individual; or                (3)  Travis County, if the person:                      (A)  is an individual who does not reside in this   state; or                      (B)  is an entity that does not have its principal   office in this state].          SECTION 36.  Section 801.508, Occupations Code, is amended   to read as follows:          Sec. 801.508.  CEASE AND DESIST ORDER.  The board or   executive director may issue a cease and desist order upon   determining that it is necessary to prevent a violation of this   chapter, or of a rule adopted or order issued by the board.          [(a)  If it appears to the board that a person is engaging in   an act or practice that constitutes the practice of veterinary   medicine without a license or the practice of equine dentistry   without a license under this chapter, the board, after notice and   opportunity for a hearing, may issue a cease and desist order   prohibiting the person from engaging in the activity.          (b)  A violation of an order under this section constitutes   grounds for imposing an administrative penalty under Subchapter J.]          SECTION 37.  Subchapter K, Chapter 801, Occupations Code, is   amended by adding Section 801.510 to read as follows:          Sec. 801.510.  ISSUANCE OF EMERGENCY ORDERS. (a) Upon   determining that an emergency exists requiring immediate action to   protect the public health and safety, the board or executive   director may issue an emergency order to:                (1)  suspend or revoke a license or other authorization   issued under a program regulated by the board; or                (2)  halt operation of an unsafe veterinary medical   facility.          (b)  The board or executive director may issue an emergency   order with or without notice and hearing.  If an emergency order is   issued under this section without a hearing, the board shall set the   time and place for a hearing conducted by the State Office of   Administrative Hearings to affirm, modify, or set aside the   emergency order not later than the 17th day after the date the order   was issued. The order shall be affirmed to the extent that   reasonable cause existed to issue the order.          (c)  A proceeding under this section is a contested case   under Chapter 2001, Government Code.          SECTION 38.  Chapter 801, Occupations Code, is amended by   designating Sections 801.601 through 801.604 as Subchapter M and   adding a subchapter heading to read as follows:   SUBCHAPTER M.  VETERINARY MEDICAL FACILITIES          Sec. 801.601.  REGISTRATION OF VETERINARY MEDICAL   FACILITIES REQUIRED. (a)  Veterinary medicine shall be practiced   only in or from a veterinary medical facility that is registered   with the board or that is exempted by rule from the registration   requirement.  Unless exempted by this section or by board rule   adopted pursuant to this section, every individual facility must be   registered with the board.          (b)  Subsection (a) does not apply to a facility maintained   or operated by the federal government.          (c)  A mobile facility affiliated with a registered   veterinary medical facility is exempt from separate registration if   identified in the application for registration filed pursuant to   this subchapter.          (c)  The board may by rule provide exemptions to the   registration requirement for facilities if it determines that   imposing or enforcing the requirement:                (1)  is not cost-effective for the board;                (2)  is not feasible with current resources or   standards; or                (3)  will not substantially benefit or protect   consumers.          Sec. 801.602.  REGISTRATION ELIGIBILITY AND APPLICATION.   (a)  To register a veterinary medical facility, the business entity   providing services at the facility shall submit the application   provided by the board and pay the applicable fee established by the   board pursuant to Section 801.154.  The application must be signed   by a person with authority to act on behalf of the entity.          (b)  The facility shall, in its application for   registration:                (1)  indicate the type of business entity that provides   services at the facility, and provide information regarding the   owners, partners, and operators of the entity as required by board   rule; and                (2)  provide the names and license or registration   numbers of all persons who provide services at the facility and are   regulated by the board.          (c)  An application under this section shall require the   facility to designate a medical director. The designated medical   director must:                (1)  be licensed by the board as a veterinarian and   remain in good standing;                (2)  regularly practice veterinary medicine at or from   the facility; and                (3)  co-sign the application for registration; and                (4)  agree to accept all correspondence from the board   on behalf of the facility.          (d)  A veterinary medical facility whose designated medical   director ceases to be affiliated with the facility shall designate   a new medical director within 30 days of the change.          (e)  The term of a registration issued under this section and   the process for renewal of a registration shall be provided by board   rule.          Sec. 801.603.  STANDARDS FOR OPERATION OF VETERINARY MEDICAL   FACILITIES. The board shall adopt and enforce rules relating to   standards of operation of veterinary medical facilities.  The rules   must include standards regarding:                (1)  safety and sanitation;                (2)  storage and security of pharmaceuticals and   controlled substances;                (3)  patient care;                (4)  retention of documentation, including medical   records, controlled substance logs, and employment records; and                (5)  compliance with other state laws related to health   and safety.          Sec 801.604.  SANCTIONS AND ADMINISTRATIVE PENALTIES.  The   owner or owners of a business entity that provides services at a   veterinary medical facility shall be subject to administrative   penalties, license sanctions, or both, if:                (1)  the facility does not hold a current registration;                (2)  the facility violates a standard adopted pursuant   to Section 801.603;                (3)  facility personnel deny access to the board or its   agents to conduct an inspection or investigation; or                (4)  the facility fails to comply with a board order.          SECTION 39.  The following provisions of Chapter 801,   Occupations Code, are repealed:                (1)  Section 801.206;                (2)  Section 801.253(a) as amended by Acts 2011, 82nd   Leg., R.S., Ch. 411 (S.B. 811), Sec. 3;                (3)  Section 801.307(a-1) as added by Acts 2019, 86th   Leg., R.S., Ch. 449 (S.B. 1947), Sec. 2;                (5)  Section 801.459;                (6)  Section 801.461; and                (7)  Section 801.505.          SECTION 40.  As soon as practicable after the effective date   of this Act, the State Board of Veterinary Medical Examiners shall   adopt the rules and procedures necessary to implement the   provisions of this Act other than those contained in Subchapter M,   Chapter 801, Occupations Code, as added by this Act.          SECTION 41.  No later than March 1, 2027, the State Board of   Veterinary Medical Examiners shall adopt the rules and procedures   necessary to implement the provisions contained in Subchapter M,   Chapter 801, Occupations Code, as added by this Act.          SECTION 42.  A veterinary medical facility shall register   with the board not later than September 1, 2027.          SECTION 43.  (a) Except as provided by Subsection (b) of this   section, this Act takes effect September 1, 2025.          (b)  Subchapter M, Chapter 801, Occupations Code, as added by   this Act, takes effect September 1, 2026.