HBA-JRA S.B. 1340 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1340
By: Carona
Public Health
4/26/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, some Texas physicians have failed to maintain appropriate safety
standards regarding the use of anesthesia in their offices and, as a
result, have placed patients at risk for complications or even death.  S.B.
1340 requires the Texas State Board of Medical Examiners and the Board of
Nurse Examiners to establish minimum standards for provision of anesthesia
in outpatient settings and requires physicians and certified registered
nurse anesthetists who provide anesthesia services to register with their
respective boards. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly granted to the Texas State Board of Medical
Examiners in SECTION 2 (Section 7.02, Article 4495b, V.T.C.S.) and to the
Board of Nurse Examiners in SECTION 4 (Sec. 2, Article 4527e, V.T.C.S.) of
this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Sets forth the findings of the legislature and the purpose of
this Act. 

SECTION 2. Amends Article 4495b, V.T.C.S. (Medical Practice Act), by adding
Subchapter G, as follows: 

SUBCHAPTER G.  ANESTHESIA IN OUTPATIENT SETTING

Sec. 7.01. DEFINITION.  Defines "outpatient setting" in this subchapter.

Sec. 7.02. RULES. Requires the Texas State Board of Medical Examiners
(board) to establish, by rule, the minimum standards for provision of
anesthesia in outpatient settings by person licensed by the board.
Provides that the rules must be designed to protect the health, safety, and
welfare of the public and must include certain requirements.  Requires the
board to cooperate with the Board of Nurse Examiners in the adoption of
rules under this subchapter to eliminate conflicts between the rules
adopted by each board. 

Sec. 7.03.  APPLICABILITY.  Sets forth entities to which the rules adopted
by the board under this subchapter are not applicable. 

Sec. 7.04. COMPLIANCE WITH ANESTHESIA RULES. Requires a physician who
practices medicine in this state and who administers anesthesia or performs
a surgical procedure for which anesthesia services are provided in an
outpatient setting to comply with the rules adopted under this subchapter
on or after August 31, 2000.  Authorizes the board to require a physician
to submit and comply with a corrective action plan to remedy or address any
current or potential deficiencies with the physician's provision of
anesthesia in an outpatient setting in accordance with this Act or rules of
the board.  

Sec. 7.05. ANNUAL REGISTRATION. Requires each physician who administers
anesthesia or performs a surgical procedure for which anesthesia services
are provided in an outpatient setting to annually register with and pay a
fee to the board beginning September 1, 2000.  Requires the board to
coordinate the times of registration, payment, notice, and imposition of
penalties for late payment for registration required under this section
with those of registration required under Section 3.01 of this Act. 

Sec. 7.06.  INSPECTIONS.  Authorizes the board to conduct inspections to
enforce this subchapter, including inspections of the office site and
related documents of a physician's practice as it relates to the provision
of anesthesia in an outpatient setting.  Authorizes the board to contract
with another state agency or qualified person to conduct these inspections.
Requires the board to provide at least five business days' notice prior to
conducting  an onsite examination, unless it would jeopardize an ongoing
investigation.  Provides that this section does not require the board to
make an on-site inspection of a physician's office. 

Sec. 7.07.  REQUESTS FOR INSPECTION AND ADVISORY OPINION.  Authorizes the
board to consider a request by a physician for an on-site inspection.
Authorizes the board to conduct the inspection and issue an advisory
opinion in its discretion and on payment of a fee.  Provides that such an
advisory opinion is not binding and authorizes the board to take any action
under this Act in relation to the situation addressed by the advisory
opinion that the board considers appropriate.  Authorizes a physician who
requests and relies on such an advisory opinion to use the opinion as
mitigating evidence in an action or proceeding to impose an administrative
or civil penalty under this Act.  Requires the board or court, as
appropriate, to take proof of reliance on an advisory opinion into
consideration and mitigate the imposition of administrative or civil
penalties accordingly. 

SECTION 3.  Amends Section 3.10(b), Article 4495b, V.T.C.S. (Medical
Practice Act), to prohibit the board from setting, charging, collecting,
receiving, or depositing a fees in excess of $300 for processing an
application and issuance of an annual registration for anesthesia in an
outpatient setting. 

SECTION 4.  Amends Chapter 7, Title 71, V.T.C.S., by adding Article 4527e,
as follows: 

Art. 4527e.  ANESTHESIA IN OUTPATIENT SETTING

Sec. 1.  DEFINITION.  Defines "outpatient setting" in this article.

Sec. 2.  RULES.  Requires the Board of Nurse Examiners (board) to
establish, by rule, the minimum standards for provision of anesthesia
services in outpatient settings by person licensed by the board.  Provides
that the rules must be designed to protect the health, safety, and welfare
of the public and must include certain requirements.  Requires the board to
cooperate with the Texas State Board of Medical Examiners in the adoption
of rules under this subchapter to eliminate conflicts between the rules
adopted by each board. 

Sec. 3.  APPLICABILITY.  Sets forth entities to which the rules adopted by
the board under this subchapter are not applicable. 

Sec. 4. COMPLIANCE WITH ANESTHESIA RULES. Requires a certified registered
nurse anesthetist providing anesthesia services in an outpatient setting to
comply with the rules adopted under this subchapter on or after August 31,
2000.  Authorizes the board to require a certified registered nurse
anesthetist to submit and comply with a corrective action plan to remedy or
address any current or potential deficiencies with the nurse anesthetist's
provision of anesthesia in an outpatient setting in accordance with this
chapter or rules of the board.  

Sec. 5. BIENNIAL REGISTRATION. Requires each  certified registered nurse
anesthetist who provides anesthesia services in an outpatient setting to
biennially register with and pay a fee to the board beginning September 1,
2000.  Requires the board to coordinate the times of registration, payment,
notice, and imposition of penalties for late payment for registration
required under this section with those of license renewal provisions under
Article 4526, V.T.C.S. 

Sec. 6.  INSPECTIONS.  Authorizes the board to conduct inspections to
enforce this  subchapter, including inspections of the equipment owned or
leased by a certified registered nurse anesthetist and related documents of
a certified registered nurse anesthetist's practice as it relates to the
provision of anesthesia in an outpatient setting.  Authorizes the board to
contract with another state agency or qualified person to conduct these
inspections.  Requires the board to provide at least five business days'
notice prior to conducting  an on-site examination, unless it would
jeopardize an ongoing investigation.  Provides that this section does not
require the board to make an on-site inspection of an outpatient setting
where a certified registered nurse anesthetist provides anesthesia. 

Sec. 7.  REQUESTS FOR INSPECTION AND ADVISORY OPINION.  Authorizes the
board to consider a request by a certified registered nurse anesthetist for
inspection. Authorizes the board to conduct the inspection and issue an
advisory opinion in its discretion and on payment of a fee.  Provides that
such an advisory opinion is not binding and authorizes the board to take
any action under this Act in relation to the situation addressed by the
advisory opinion that the board considers appropriate.  Authorizes a
certified registered nurse anesthetist who requests and relies on such an
advisory opinion to use the opinion as mitigating evidence in an action or
proceeding by the board to impose an administrative or assess a monetary
fine under this Act.  Requires the board to take proof of reliance on an
advisory opinion into consideration and mitigate the imposition of
administrative or assess a monetary fine accordingly. 

SECTION 5.  Authorizes the Texas State Board of Medical Examiners and the
Board of Nurse Examiners to permit the registration requirement imposed
under Subchapter G, Article 4495b, V.T.C.S. (Medical Practice Act), as
added by this Act, and under Article 4527e, V.T.C.S., as added by this Act,
to be staggered and phased in so that by September 1, 2002, all physicians
and certified registered nurse anesthetists required to register under
those laws will be in compliance.  

SECTION 6.  Provides that the rules required under Subchapter G, Article
4495b, V.T.C.S. (Medical Practice Act), as added by this Act, and under
Article 4527e, V.T.C.S., as added by this Act, must be adopted by the Texas
State Board of Medical Examiners and the Board of Nurse Examiners by
January 7, 2000.  Requires the Texas State Board of Medical Examiners and
the Board of Nurse Examiners to report, including any suggested amendments
to the laws added by this Act to make those laws more effective or
efficient, to the speaker of the house of representatives and the
lieutenant governor on the implementation and enforcement of those rules
and of the laws added by this Act by January 1, 2001. 

SECTION 7.  Effective date: September 1, 1999.

SECTION 8.  Emergency clause.