85R8275 BEF-D     By: Watson, et al. S.B. No. 319       A BILL TO BE ENTITLED   AN ACT   relating to the continuation and functions of the State Board of   Veterinary Medical Examiners; authorizing a reduction in fees;   providing penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 801.003, Occupations Code, is amended to   read as follows:          Sec. 801.003.  APPLICATION OF SUNSET ACT. The State Board of   Veterinary Medical Examiners is subject to Chapter 325, Government   Code (Texas Sunset Act). Unless continued in existence as provided   by that chapter, the board is abolished and this chapter expires   September 1, 2021 [2017].          SECTION 2.  Section 801.051(a), Occupations Code, is amended   to read as follows:          (a)  The State Board of Veterinary Medical Examiners   consists of nine members appointed by the governor with the advice   and consent of the senate as follows:                (1)  five [six] veterinarian members, including:                      (A)  one veterinarian member who is associated   with an animal shelter; and                      (B)  one veterinarian member who has at least   three years of experience practicing veterinary medicine in this   state on horses, livestock, or other large animals; [and]                (2)  one licensed veterinary technician member; and                (3)  three members who represent the public.          SECTION 3.  Section 801.057, Occupations Code, is amended by   amending Subsection (b) and adding Subsection (d) to read as   follows:          (b)  The training program must provide the person with   information regarding:                (1)  the law governing board operations;                (2)  the [legislation that created the board and the   board's] programs, functions, rules, and budget of the board;                (3)  the scope of and limitations on the rulemaking   authority of the board;                (4) [(2)]  the results of the most recent formal audit   of the board;                (5) [(3)]  the requirements of:                      (A)  laws relating to open meetings, public   information, administrative procedure, and disclosing conflicts of   interest; and                      (B)  other laws applicable to members of the board   in performing their duties; and                (6) [(4)]  any applicable ethics policies adopted by   the board or the Texas Ethics Commission.          (d)  The executive director of the board shall create a   training manual that includes the information required by   Subsection (b). The executive director shall distribute a copy of   the training manual annually to each board member. On receipt of the   training manual, each board member shall sign and submit to the   executive director a statement acknowledging receipt of the   training manual.          SECTION 4.  Section 801.154, Occupations Code, is amended to   read as follows:          Sec. 801.154.  FEES. [(a)] The board by rule shall set fees   in amounts that are reasonable and necessary so that the fees, in   the aggregate, cover the costs of administering this chapter. [The   board may not set a fee that existed on September 1, 1993, in an   amount that is less than the fee on that date.]          SECTION 5.  Subchapter D, Chapter 801, Occupations Code, is   amended by adding Section 801.164 to read as follows:          Sec. 801.164.  RISK-BASED INSPECTIONS RELATED TO CONTROLLED   SUBSTANCES PRACTICES. The board may conduct a risk-based inspection   of a veterinarian's practice based on information obtained from the   veterinarian or another source concerning the veterinarian's use,   handling, prescribing, dispensing, or delivery of controlled   substances.          SECTION 6.  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 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;                (3)  require that the board be advised of a complaint   that is dismissed [and that a written explanation be given to the   person who filed the complaint explaining the action taken on the   dismissed complaint];                (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 7.  Section 801.2055, Occupations Code, is amended   to read as follows:          Sec. 801.2055.  COMPLAINTS REQUIRING MEDICAL EXPERTISE. (a)   A complaint that requires medical expertise to review must be   reviewed by one [two] or more veterinarians designated by the    [veterinarian] board [members].  The veterinarian reviewers [board   members] shall determine whether to dismiss the complaint or refer   it to an informal proceeding under Section 801.408.          (b)  If the veterinarian reviewers determine to:                (1)  dismiss the complaint, the dismissal must be   approved by the board at a public meeting; or                (2)  refer the complaint to an informal proceeding, the   complaint is referred to an informal proceeding under Section   801.408.          (c)  If the board designates more than one veterinarian   reviewer and the reviewers [members] do not agree to dismiss or   refer the complaint to an informal proceeding, the complaint is   referred to an informal proceeding under Section 801.408.          (d)  A veterinarian board member who reviews a complaint   under this section may not participate in any subsequent   disciplinary proceeding related to the complaint.          SECTION 8.  Section 801.207, Occupations Code, is amended by   amending Subsection (b) and adding Subsection (c) to read as   follows:          (b)  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 [An investigation record of the   board, including a record relating to a complaint that is found to   be groundless, is confidential].          (c)  The board shall protect the identity of a complainant to   the extent possible.          SECTION 9.  Subchapter E, Chapter 801, Occupations Code, is   amended by adding Section 801.208 to read as follows:          Sec. 801.208.  NOTIFICATION TO COMPLAINANT REGARDING   COMPLAINT DISPOSITION. (a) The board shall promptly notify a   complainant of the final disposition of the complaint, including   notice:                (1)  that the complaint was dismissed;                (2)  that a penalty, disciplinary action, or other   sanction was imposed; or                (3)  that the complaint was disposed of in another   manner and the nature of that disposition.          (b)  The board shall include with the notification a copy of   any public sanction imposed by the board.          (c)  The board shall include in the notification an   explanation of each reason for the disposition, including, as   applicable, in plain, easily understandable language, each reason   the conduct alleged in the complaint did or did not constitute   grounds for the imposition of a penalty, disciplinary action, or   other sanction.          (d)  The notification may not include information that is   confidential under Section 801.207(b).          SECTION 10.  Subchapter E, Chapter 801, Occupations Code, is   amended by adding Section 801.209 to read as follows:          Sec. 801.209.  REQUIREMENTS FOR CERTAIN COMPLAINTS. (a) In   this section:                (1)  "Anonymous complaint" means a complaint that lacks   sufficient information to identify the source or the name of the   person who filed the complaint.                (2)  "Insurance professional" means a person licensed   under Title 13, Insurance Code.                (3)  "Insurer" means an insurance company or other   entity authorized to engage in the business of insurance under   Title 6, Insurance Code.          (b)  The board may not accept anonymous complaints.          (c)  Notwithstanding any confidentiality requirements under   Chapter 552, Government Code, or this chapter, a complaint filed   with the board against a license holder by a pharmaceutical company   or by an insurance professional or insurer relating to insurance   covering veterinary services must include the name and address of   the pharmaceutical company, insurance professional, or insurer   filing the complaint. Not later than the 15th day after the date   the complaint is filed with the board, the board shall notify the   license holder who is the subject of the complaint of the name and   address of the pharmaceutical company, insurance professional, or   insurer who filed the complaint, unless the notice would jeopardize   an investigation.          SECTION 11.  Subchapter F, Chapter 801, Occupations Code, is   amended by adding Section 801.267 to read as follows:          Sec. 801.267.  CRIMINAL HISTORY RECORD INFORMATION FOR   LICENSE ISSUANCE. (a) The board shall require that an applicant for   a license submit a complete and legible set of fingerprints, on a   form prescribed by the board, to the board or to the Department of   Public Safety for the purpose of obtaining criminal history record   information from the Department of Public Safety and the Federal   Bureau of Investigation.          (b)  The board may not issue a license to a person who does   not comply with the requirement of Subsection (a).          (c)  The board shall conduct a criminal history record   information check of each applicant for a license using   information:                (1)  provided by the individual under this section; and                (2)  made available to the board by the Department of   Public Safety, the Federal Bureau of Investigation, and any other   criminal justice agency under Chapter 411, Government Code.          (d)  The board may:                (1)  enter into an agreement with the Department of   Public Safety to administer a criminal history record information   check required under this section; and                (2)  authorize the Department of Public Safety to   collect from each applicant the costs incurred by the Department of   Public Safety in conducting the criminal history record information   check.          SECTION 12.  Section 801.301, Occupations Code, is amended   to read as follows:          Sec. 801.301.  LICENSE TERM AND [ANNUAL] RENEWAL [REQUIRED].   (a) The board shall provide:                (1)  that each type of license under this chapter is   valid for a term of one year or two years; and                (2)  for the [annual] renewal of a license.          (b)  The board by rule may adopt a system under which   licenses expire on various dates during the year.          (c)  For a year in which the license expiration date is   changed, the board shall prorate license fees [payable on March 1   shall be prorated] on a monthly basis so that each license holder   pays only that portion of the fee that is allocable to the number of   months during which the license is valid. On renewal of the license   on the new expiration date, the total license renewal fee is   payable.          SECTION 13.  Sections 801.307(b) and (c), Occupations Code,   are amended to read as follows:          (b)  The board may:                (1)  establish general categories of continuing   education that meet the needs of license holders; [and]                (2)  require a license holder to successfully complete   continuing education courses; and                (3)  for a license valid for two years, provide a one   year or two year period for the completion of continuing education.          (c)  The board may require a license holder who does not   complete the required number of hours of continuing education in a   period [year] to make up the missed hours in a later period   [years].  Hours required to be made up in a later period [year] are   in addition to the hours normally required to be completed in that   period [year].          SECTION 14.  Subchapter G, Chapter 801, Occupations Code, is   amended by adding Section 801.309 to read as follows:          Sec. 801.309.  CRIMINAL HISTORY RECORD INFORMATION   REQUIREMENT FOR LICENSE RENEWAL. (a) An applicant renewing a   license issued under this chapter shall submit a complete and   legible set of fingerprints for purposes of performing a criminal   history record information check of the applicant as provided by   Section 801.267.          (b)  The board may administratively suspend or refuse to   renew the license of a person who does not comply with the   requirement of Subsection (a).          (c)  A license holder is not required to submit fingerprints   under this section for the renewal of the license if the license   holder has previously submitted fingerprints under:                (1)  Section 801.267 for the initial issuance of the   license; or                (2)  this section as part of a prior license renewal.          SECTION 15.  Subchapter H, Chapter 801, Occupations Code, is   amended by adding Section 801.3591 to read as follows:          Sec. 801.3591.  REPORT OF CONTROLLED SUBSTANCES DISPENSED.   (a) A veterinarian shall submit to the Texas State Board of Pharmacy   a record of each controlled substance dispensed by the   veterinarian, including:                (1)  the name, strength, and quantity of the substance   dispensed;                (2)  the date the substance was dispensed;                (3)  the name of the animal;                (4)  the species, gender, and actual or estimated date   of birth of the animal;                (5)  the name and address of the animal's owner;                (6)  the directions for use of the substance;                (7)  the intended use of the substance;                (8)  the name, address, Federal Drug Enforcement   Administration number, and telephone number of the veterinarian at   the veterinarian's usual place of business; and                (9)  any other information required by the joint rules   adopted under this section.          (b)  The board and the Texas State Board of Pharmacy shall   jointly adopt rules to implement this section, including rules   providing the form of the records and the time and manner for   submitting the records. The form, time, and manner must be similar   to the requirements for a pharmacist to submit dispensing   information under Section 481.074, Health and Safety Code.          (c)  The Texas State Board of Pharmacy shall make information   submitted under this section available in the manner provided by   Section 481.076, Health and Safety Code. For purposes of Chapter   481, Health and Safety Code, a record submitted to the Texas State   Board of Pharmacy under this section is considered to be official   prescription information submitted to that board under Section   481.074(q) or 481.075, Health and Safety Code.          SECTION 16.  Subchapter H, Chapter 801, Occupations Code, is   amended by adding Section 801.3592 to read as follows:          Sec. 801.3592.  DUTIES RELATED TO PRESCRIBING OR DISPENSING   CERTAIN DRUGS. (a) A veterinarian may not provide a prescription   for or deliver a drug listed in Subsection (b) to a client unless   the veterinarian has reviewed the prescription and dispensing   history of animals associated with the client by accessing the   prescription and dispensing information submitted to the Texas   State Board of Pharmacy as authorized by Section 481.076(a)(5),   Health and Safety Code.          (b)  Subsection (a) applies only to the prescribing and   dispensing of:                (1)  opioids;                (2)  benzodiazepines;                (3)  barbiturates; or                (4)  carisoprodol.          (c)  Failure by a veterinarian to comply with the   requirements of this section is grounds for disciplinary action   under Section 801.402.          SECTION 17.  Section 801.402, Occupations Code, is amended   to read as follows:          Sec. 801.402.  GENERAL GROUNDS FOR LICENSE DENIAL OR   DISCIPLINARY ACTION.  A person is subject to denial of a license or   to disciplinary action under Section 801.401 if the person:                (1)  presents to the board dishonest or fraudulent   evidence of the person's qualifications;                (2)  commits fraud or deception in the examination   process or to obtain a license;                (3)  is chronically or habitually intoxicated,   chemically dependent, or addicted to drugs;                (4)  engages in dishonest or illegal practices in, or   connected with, the practice of veterinary medicine or the practice   of equine dentistry;                (5)  is convicted of a felony under the laws of this   state, another state, or the United States;                (6)  engages in practices or conduct that violates the   board's rules of professional conduct;                (7)  permits another to use the person's license to   practice veterinary medicine or to practice equine dentistry in   this state;                (8)  fraudulently issues a health certificate,   vaccination certificate, test chart, or other form used in the   practice of veterinary medicine or the practice of equine dentistry   that relates to the presence or absence of animal disease;                (9)  issues a false certificate relating to the sale   for human consumption of inedible animal products;                (10)  commits fraud in connection with the application   or reporting of a test of animal disease;                (11)  pays or receives a kickback, rebate, bonus, or   other remuneration for treating an animal or for referring a client   to another provider of veterinary or equine dental services or   goods;                (12)  performs or prescribes unnecessary or   unauthorized treatment;                (13)  orders a prescription drug or controlled   substance for the treatment of an animal without first establishing   a veterinarian-client-patient relationship;                (14)  refuses to admit a board representative to   inspect the person's client and patient records and business   premises during regular business hours;                (15)  fails to keep the person's equipment and business   premises in a sanitary condition;                (16)  commits gross malpractice or a pattern of acts   that indicate consistent malpractice, negligence, or incompetence   in the practice of veterinary medicine or the practice of equine   dentistry;                (17)  is subject to disciplinary action in another   jurisdiction, including the suspension, probation, or revocation   of a license to practice veterinary medicine or to practice equine   dentistry issued by another jurisdiction;                (18)  is convicted for an offense under Section 42.09,   42.091, or 42.092, Penal Code;                (19)  represents the person as a veterinarian without a   license issued under this chapter;                (20)  practices veterinary medicine or assists in the   practice of veterinary medicine without a license issued under this   chapter; [or]                (21)  violates Section 801.353 or a rule adopted by the   board related to confidentiality;                (22)  violates Section 801.3591 or a joint rule adopted   under that section; or                (23)  violates Section 801.3592.          SECTION 18.  The heading to Section 801.407, Occupations   Code, is amended to read as follows:          Sec. 801.407.  RIGHT TO HEARING [; SCHEDULE OF SANCTIONS].          SECTION 19.  Section 801.407(c), Occupations Code, is   amended to read as follows:          (c)  The State Office of Administrative Hearings shall use   the schedule of sanctions under Section 801.411 [adopted by board   rule] for any sanction imposed as the result of a hearing conducted   by that office.          SECTION 20.  Subchapter I, Chapter 801, Occupations Code, is   amended by adding Section 801.411 to read as follows:          Sec. 801.411.  SCHEDULE OF SANCTIONS. (a) The board by rule   shall adopt a schedule of penalties, disciplinary actions, and   other sanctions that the board may impose under this chapter.           (b)  In adopting the schedule of sanctions under Subsection   (a), the board shall ensure that the severity of the sanction   imposed is appropriate to the type of violation or conduct that is   the basis for disciplinary action.  The schedule must provide that   the type of disciplinary action or other sanction and the amount of   a penalty imposed under this chapter must be based on:                 (1)  the seriousness of the violation, including:                      (A)  the nature, circumstances, extent, and   gravity of any prohibited act; and                      (B)  the hazard or potential hazard created to the   health, safety, or economic welfare of the public;                (2)  the economic harm to property or the environment   caused by the violation;                (3)  the history of previous violations;                (4)  the amount of penalty or type of disciplinary   action or sanction necessary to deter a future violation;                (5)  efforts to correct the violation; and                (6)  any other matter that justice may require.          SECTION 21.  Sections 801.452(b) and (c), Occupations Code,   are amended to read as follows:          (b)  The amount of the penalty shall be based on the schedule   of sanctions adopted under Section 801.411 [:                [(1)  the seriousness of the violation, including:                      [(A)     the nature, circumstances, extent, and   gravity of any prohibited act; and                      [(B)     the hazard or potential hazard created to   the health, safety, or economic welfare of the public;                [(2)     the economic harm to property or the environment   caused by the violation;                [(3)  the history of previous violations;                [(4)  the amount necessary to deter a future violation;                [(5)  efforts to correct the violation; and                [(6)  any other matter that justice may require].          (c)  A committee described by Section 801.408(c) or (d) shall   recommend the amount of the administrative penalty based on the   schedule of sanctions adopted under Section 801.411 [a standardized   penalty schedule.     The board by rule shall develop the standardized   penalty schedule based on the criteria listed in Subsection (b)].          SECTION 22.  Subchapter K, Chapter 801, Occupations Code, is   amended by adding Section 801.5011 to read as follows:          Sec. 801.5011.  MONITORING HARMFUL PRESCRIBING AND   DISPENSING PATTERNS. (a) The board shall periodically check the   prescribing and dispensing information submitted to the Texas State   Board of Pharmacy as authorized by Section 481.076(a)(1), Health   and Safety Code, to determine whether a veterinarian is engaging in   potentially harmful prescribing or dispensing patterns or   practices.          (b)  The board, in coordination with the Texas State Board of   Pharmacy, shall determine the conduct that constitutes a   potentially harmful prescribing or dispensing pattern or practice   for purposes of Subsection (a). In determining the conduct that   constitutes a potentially harmful prescribing or dispensing   pattern or practice, the board, at a minimum, shall consider:                (1)  the number of times a veterinarian prescribes or   dispenses a drug listed in Section 801.3592(b); and                (2)  for prescriptions and dispensations described by   Subdivision (1), patterns of prescribing or dispensing   combinations of those drugs and other dangerous combinations of   drugs identified by the board.          (c)  If the board suspects that a veterinarian may be   engaging in potentially harmful prescribing or dispensing patterns   or practices, the board may notify the veterinarian of the   potentially harmful prescribing or dispensing pattern or practice.          (d)  The board may initiate a complaint against a   veterinarian based on information obtained under this section.          SECTION 23.  (a) For purposes of Section 801.003,   Occupations Code, as amended by this Act, the Sunset Advisory   Commission shall conduct a special-purpose review of the State   Board of Veterinary Medical Examiners for the 87th Legislature.          (b)  In conducting the special-purpose review under this   section:                (1)  the Sunset Advisory Commission staff evaluation   and report must be limited to reviewing the effectiveness of   recommendations made by the Sunset Advisory Commission to the 85th   Legislature; and                (2)  the Sunset Advisory Commission's recommendations   to the 87th Legislature may include any recommendation the   commission considers appropriate based on the special-purpose   review.          SECTION 24.  (a) The terms of office of the members of the   State Board of Veterinary Medical Examiners expire September 1,   2017.          (b)  As soon as practicable on or after September 1, 2017,   the governor shall appoint to the State Board of Veterinary Medical   Examiners:                (1)  one member described by Section 801.051(a)(1), one   member described by Section 801.051(a)(2), and one member described   by Section 801.051(a)(3), Occupations Code, as amended by this Act,   to terms expiring February 1, 2019;                (2)  two members described by Section 801.051(a)(1) and   one member described by Section 801.051(a)(3), Occupations Code, as   amended by this Act, to terms expiring February 1, 2021; and                (3)  two members described by Section 801.051(a)(1) and   one member described by Section 801.051(a)(3), Occupations Code, as   amended by this Act, to terms expiring February 1, 2023.          (c)  A person who was appointed to the State Board of   Veterinary Medical Examiners on or before January 1, 2016, is not   eligible for appointment under Subsection (b) of this section.          (d)  Notwithstanding Subsection (a) of this section, the   members of the State Board of Veterinary Medical Examiners holding   office on August 31, 2017, shall continue to perform the duties of   their offices until the first date on which at least five members   appointed under Subsection (b) of this section have completed the   training program under Section 801.057, Occupations Code, as   amended by this Act.          SECTION 25.  (a) Except as provided by Subsection (b) of this   section, Section 801.057, Occupations Code, as amended by this Act,   applies to a member of the State Board of Veterinary Medical   Examiners appointed before, on, or after the effective date of this   Act.          (b)  A member of the State Board of Veterinary Medical   Examiners who, before the effective date of this Act, completed the   training program required by Section 801.057, Occupations Code, as   that law existed before the effective date of this Act, is only   required to complete additional training on the subjects added by   this Act to the training program required by Section 801.057,   Occupations Code. A board member described by this subsection may   not vote, deliberate, or be counted as a member in attendance at a   meeting of the board held on or after December 1, 2017, until the   member completes the additional training.          SECTION 26.  (a) The following changes in law apply only to a   complaint filed with the State Board of Veterinary Medical   Examiners on or after the effective date of this Act:                (1)  Section 801.205, Occupations Code, as amended by   this Act;                (2)  Section 801.2055, Occupations Code, as amended by   this Act;                (3)  Section 801.207(b), Occupations Code, as amended   by this Act, and Section 801.207(c), Occupations Code, as added by   this Act;                (4)  Section 801.208, Occupations Code, as added by   this Act; and                (5)  Section 801.209, Occupations Code, as added by   this Act.          (b)  A complaint filed before the effective date of this Act   is governed by the law in effect on the date the complaint was   filed, and the former law is continued in effect for that purpose.          SECTION 27.  Sections 801.267 and 801.309, Occupations Code,   as added by this Act, apply only to an application for the issuance   or renewal of a license submitted to the State Board of Veterinary   Medical Examiners on or after the effective date of this Act. An   application submitted before the effective date of this Act is   governed by the law in effect on the date the application was   submitted, and the former law is continued in effect for that   purpose.          SECTION 28.  As soon as practicable after this Act has become   law for purposes of Section 2001.006, Government Code, the State   Board of Veterinary Medical Examiners and the Texas State Board of   Pharmacy shall jointly adopt rules under Section 801.3591,   Occupations Code, as added by this Act.          SECTION 29.  Sections 801.407(c), 801.452(b), and   801.452(c), Occupations Code, as amended by this Act, and Section   801.411, Occupations Code, as added by this Act, apply only to   conduct that occurs on or after the date that rules under Section   801.411 become effective. Conduct that occurs before that date is   governed by the law in effect immediately before the effective date   of this Act, and the former law is continued in effect for that   purpose.          SECTION 30.  (a) Except as otherwise provided by Subsection   (b) of this section, this Act takes effect September 1, 2017.          (b)  Sections 801.3592 and 801.402(23), Occupations Code, as   added by this Act, take effect September 1, 2018.