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      SENATE ENGROSSED 
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      HOUSE COMMITTEE
     SUBSTITUTE 
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     SECTION 1.  The heading to
    Subchapter B, Chapter 157, Occupations Code, is amended. 
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     SECTION 1. Same as engrossed
    version. 
      
      
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     SECTION 2.  Section 157.051,
    Occupations Code, is amended to read as follows: 
    Sec. 157.051.  DEFINITIONS. 
    In this subchapter: 
    (1)  "Advanced practice registered
    nurse" has the meaning assigned to that term by Section 301.152.  The
    term includes an advanced nurse practitioner and advanced practice nurse. 
    (2)  ["Carrying out
    or signing a prescription drug order" means completing a prescription
    drug order presigned by the delegating physician, or the signing of a
    prescription by a registered nurse or physician assistant. 
    [(2-a)] 
    "Controlled substance" has the meaning assigned to that term by
    Section 481.002, Health and Safety Code. 
    (3) [(2-b)] 
    "Dangerous drug" has the meaning assigned to that term by Section
    483.001, Health and Safety Code. 
      
      
      
    (4)  "Health
    professional shortage area" means: 
    (A)  an urban or rural
    area of this state that: 
    (i)  is not required to
    conform to the geographic boundaries of a political subdivision but is a
    rational area for the delivery of health services; 
    (ii)  the secretary of health
    and human services determines has a health professional shortage; and 
    (iii)  is not reasonably
    accessible to an adequately served area; 
    (B)  a population group
    that the secretary of health and human services determines has a health
    professional shortage; or 
    (C)  a public or nonprofit
    private medical facility or other facility that the secretary of health and
    human services determines has a health professional shortage, as described
    by 42 U.S.C. Section 254e(a)(1). 
    (5)  "Hospital"
    means: 
      
    (A)  a general hospital or
    a special hospital, as those terms are defined by Section 241.003, Health
    and Safety Code, including a hospital maintained or operated by the state;
    or 
    (B)  a mental hospital
    licensed under Chapter 577, Health and Safety Code. 
      
      
    (6)  "Medication
    order" has the meanings assigned by Section 551.003 of this code and
    Section 481.002, Health and Safety Code. 
    (7)  "Nonprescription
    drug" has the meaning assigned by Section 551.003. 
    (8) [(3)] 
    "Physician assistant" means a person who holds a license issued
    under Chapter 204. 
    (9)  "Physician group
    practice" means an entity through which two or more physicians deliver
    health care to the public through the practice of medicine on a regular
    basis and that is: 
    (A)  owned and operated by
    two or more physicians; or 
    (B)  a freestanding
    clinic, center, or office of a nonprofit health organization certified by
    the board under Section 162.001(b) that complies with the requirements of
    Chapter 162. 
    (10)  "Practice
    serving a medically underserved population" means: 
    (A)  a practice in a
    health professional shortage area; 
    (B)  a clinic designated
    as a rural health clinic under 42 U.S.C. Section 1395x(aa); 
    (C)  a public health
    clinic or a family planning clinic under contract with the Health and Human
    Services Commission or the Department of State Health Services; 
    (D)  a clinic designated
    as a federally qualified health center under 42 U.S.C. Section
    1396d(l)(2)(B); 
    (E)  a county, state, or
    federal correctional facility; 
    (F)  a practice: 
    (i)  that either: 
    (a)  is located in an area
    in which the Department of State Health Services determines there is an
    insufficient number of physicians providing services to eligible clients of
    federally, state, or locally funded health care programs; or 
    (b)  is a practice that
    the Department of State Health Services determines serves a
    disproportionate number of clients eligible to participate in federally,
    state, or locally funded health care programs; and 
    (ii)  for which the
    Department of State Health Services publishes notice of the department's
    determination in the Texas Register and provides an opportunity for public
    comment in the manner provided for a proposed rule under Chapter 2001,
    Government Code; or 
    (G)  a practice at which a
    physician was delegating prescriptive authority to an advanced practice
    registered nurse or physician assistant on or before March 1, 2013, based
    on the practice qualifying as a site serving a medically underserved
    population. 
    (11)  "Prescribe or
    order a drug or device" means prescribing or ordering a drug or
    device, including the issuing of a prescription drug order or a medication
    order. 
    (12)  "Prescription
    drug" has the meaning assigned by Section 551.003. 
    (13)  "Prescriptive
    authority agreement" means an agreement entered into by a physician
    and an advanced practice registered nurse or physician assistant through
    which the physician delegates to the advanced practice registered nurse or
    physician assistant the act of prescribing or ordering a drug or device. 
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     SECTION 2.  Section 157.051,
    Occupations Code, is amended to read as follows: 
    Sec. 157.051.  DEFINITIONS. 
    In this subchapter: 
    (1)  "Advanced practice registered
    nurse" has the meaning assigned to that term by Section 301.152.  The
    term includes an advanced nurse practitioner and advanced practice nurse. 
    (2)  ["Carrying out
    or signing a prescription drug order" means completing a prescription
    drug order presigned by the delegating physician, or the signing of a
    prescription by a registered nurse or physician assistant. 
    [(2-a)] 
    "Controlled substance" has the meaning assigned to that term by
    Section 481.002, Health and Safety Code. 
    (3)  [(2-b)] 
    "Dangerous drug" has the meaning assigned to that term by Section
    483.001, Health and Safety Code. 
    (4)  "Device" has the meaning assigned by Section 551.003,
    and includes durable medical equipment. 
    (5)  "Health
    professional shortage area" means: 
    (A)  an urban or rural
    area of this state that: 
    (i)  is not required to
    conform to the geographic boundaries of a political subdivision but is a
    rational area for the delivery of health services; 
    (ii)  the secretary of
    health and human services determines has a health professional shortage;
    and 
    (iii)  is not reasonably
    accessible to an adequately served area; 
    (B)  a population group
    that the secretary of health and human services determines has a health
    professional shortage; or 
    (C)  a public or nonprofit
    private medical facility or other facility that the secretary of health and
    human services determines has a health professional shortage, as described
    by 42 U.S.C. Section 254e(a)(1). 
    (6)  "Hospital"
    means a facility that: 
    (A)  is: 
    (i)  a general hospital or
    a special hospital, as those terms are defined by Section 241.003, Health
    and Safety Code, including a hospital maintained or operated by the state;
    or 
    (ii)  a mental hospital
    licensed under Chapter 577, Health and Safety Code; and 
    (B)  has an organized medical staff. 
    (7)  "Medication
    order" has the meanings assigned by Section 551.003 of this code and
    Section 481.002, Health and Safety Code. 
    (8)  "Nonprescription
    drug" has the meaning assigned by Section 551.003. 
    (9) [(3)] 
    "Physician assistant" means a person who holds a license issued
    under Chapter 204. 
    (10)  "Physician
    group practice" means an entity through which two or more physicians
    deliver health care to the public through the practice of medicine on a
    regular basis and that is: 
    (A)  owned and operated by
    two or more physicians; or 
    (B)  a freestanding
    clinic, center, or office of a nonprofit health organization certified by
    the board under Section 162.001(b) that complies with the requirements of
    Chapter 162. 
    (11)  "Practice
    serving a medically underserved population" means: 
    (A)  a practice in a
    health professional shortage area; 
    (B)  a clinic designated
    as a rural health clinic under 42 U.S.C. Section 1395x(aa); 
    (C)  a public health
    clinic or a family planning clinic under contract with the Health and Human
    Services Commission or the Department of State Health Services; 
    (D)  a clinic designated
    as a federally qualified health center under 42 U.S.C. Section 1396d(l)(2)(B); 
    (E)  a county, state, or
    federal correctional facility; 
    (F)  a practice: 
    (i)  that either: 
    (a)  is located in an area
    in which the Department of State Health Services determines there is an
    insufficient number of physicians providing services to eligible clients of
    federally, state, or locally funded health care programs; or 
    (b)  is a practice that
    the Department of State Health Services determines serves a
    disproportionate number of clients eligible to participate in federally,
    state, or locally funded health care programs; and 
    (ii)  for which the
    Department of State Health Services publishes notice of the department's
    determination in the Texas Register and provides an opportunity for public
    comment in the manner provided for a proposed rule under Chapter 2001,
    Government Code; or 
    (G)  a practice at which a
    physician was delegating prescriptive authority to an advanced practice
    registered nurse or physician assistant on or before March 1, 2013, based
    on the practice qualifying as a site serving a medically underserved
    population. 
    (12)  "Prescribe or
    order a drug or device" means prescribing or ordering a drug or
    device, including the issuing of a prescription drug order or a medication
    order. 
    (13)  "Prescription
    drug" has the meaning assigned by Section 551.003. 
    (14)  "Prescriptive
    authority agreement" means an agreement entered into by a physician
    and an advanced practice registered nurse or physician assistant through
    which the physician delegates to the advanced practice registered nurse or
    physician assistant the act of prescribing or ordering a drug or device. 
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     SECTION 3.  Section 157.0511,
    Occupations Code, is amended to read as follows: 
    Sec. 157.0511.  DELEGATION
    OF PRESCRIBING AND ORDERING DRUGS AND DEVICES [PRESCRIPTION DRUG
    ORDERS].  (a)  A physician's authority to delegate the prescribing
    or ordering of a drug or device [carrying out or signing of a
    prescription drug order] under this subchapter is limited to: 
    (1)  nonprescription
    drugs; 
    (2)  dangerous drugs;
    and 
    (3) [(2)] 
    controlled substances to the extent provided by Subsections [Subsection]
    (b) and (b-1). 
    (b)  Except as provided by
    Subsection (b-1), a [A] physician may delegate the prescribing
    or ordering of [carrying out or signing of a prescription drug order
    for] a controlled substance only if: 
    (1)  the prescription is for
    a controlled substance listed in Schedule III, IV, or V as established by
    the commissioner of the Department of State Health Services [public
    health] under Chapter 481, Health and Safety Code; 
    (2)  the prescription, including
    a refill of the prescription, is for a period not to exceed 90 days; 
    (3)  with regard to the
    refill of a prescription, the refill is authorized after consultation with
    the delegating physician and the consultation is noted in the patient's
    chart; and 
    (4)  with regard to a
    prescription for a child less than two years of age, the prescription is
    made after consultation with the delegating physician and the consultation
    is noted in the patient's chart. 
    (b-1)  A physician may
    delegate the prescribing or ordering of a controlled substance listed in
    Schedule II as established by the commissioner of the Department of State
    Health Services under Chapter 481, Health and Safety Code, only: 
    (1)  in a hospital
    facility-based practice under Section 157.054 and in accordance with
    policies approved by the facility's
    medical staff or a committee of the facility's
    medical staff as provided by the facility
    bylaws to ensure patient safety; or 
      
      
      
      
      
      
    (2)  as part of the plan
    of care for the treatment of a person who has executed a written
    certification of a terminal illness, has elected to receive hospice care,
    and is receiving hospice treatment from a qualified hospice provider. 
    (b-2)  The board shall
    adopt rules that require a physician who delegates the prescribing or
    ordering of a drug or device [carrying out or signing of a
    prescription drug order under this subchapter] to register with the
    board the name and license number of the physician assistant or advanced
    practice registered nurse to whom a delegation is made.  The board
    may develop and use an electronic online delegation registration process
    for registration under this subsection. 
    (c)  This subchapter does not
    modify the authority granted by law for a licensed registered nurse or
    physician assistant to administer or provide a medication, including a
    controlled substance listed in Schedule II as established by the
    commissioner of the Department of State Health Services [public
    health] under Chapter 481, Health and Safety Code, that is authorized
    by a physician under a physician's order, standing medical order, standing
    delegation order, or protocol. 
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     SECTION 3.  Section 157.0511,
    Occupations Code, is amended to read as follows: 
    Sec. 157.0511.  DELEGATION
    OF PRESCRIBING AND ORDERING DRUGS AND DEVICES [PRESCRIPTION DRUG
    ORDERS].  (a)  A physician's authority to delegate the prescribing
    or ordering of a drug or device [carrying out or signing of a
    prescription drug order] under this subchapter is limited to: 
    (1)  nonprescription
    drugs; 
    (2)  dangerous drugs;
    and 
    (3) [(2)]  controlled
    substances to the extent provided by Subsections [Subsection]
    (b) and (b-1). 
    (b)  Except as provided by
    Subsection (b-1), a [A] physician may delegate the prescribing
    or ordering of [carrying out or signing of a prescription drug order
    for] a controlled substance only if: 
    (1)  the prescription is for
    a controlled substance listed in Schedule III, IV, or V as established by
    the commissioner of the Department of State Health Services [public
    health] under Chapter 481, Health and Safety Code; 
    (2)  the prescription,
    including a refill of the prescription, is for a period not to exceed 90
    days; 
    (3)  with regard to the
    refill of a prescription, the refill is authorized after consultation with
    the delegating physician and the consultation is noted in the patient's
    chart; and 
    (4)  with regard to a
    prescription for a child less than two years of age, the prescription is
    made after consultation with the delegating physician and the consultation
    is noted in the patient's chart. 
    (b-1)  A physician may
    delegate the prescribing or ordering of a controlled substance listed in
    Schedule II as established by the commissioner of the Department of State
    Health Services under Chapter 481, Health and Safety Code, only: 
    (1)  in a hospital
    facility-based practice under Section 157.054, in accordance with policies
    approved by the hospital's medical
    staff or a committee of the hospital's
    medical staff as provided by the hospital
    bylaws to ensure patient safety, and as part
    of the care provided to a patient who: 
    (A)  has been admitted to the hospital for an intended length of stay
    of 24 hours or greater; or 
    (B)  is receiving services in the emergency department of the
    hospital; or 
    (2)  as part of the plan
    of care for the treatment of a person who has executed a written certification
    of a terminal illness, has elected to receive hospice care, and is
    receiving hospice treatment from a qualified hospice provider. 
    (b-2)  The board shall
    adopt rules that require a physician who delegates the prescribing or
    ordering of a drug or device [carrying out or signing of a
    prescription drug order under this subchapter] to register with the
    board the name and license number of the physician assistant or advanced
    practice registered nurse to whom a delegation is made.  The board
    may develop and use an electronic online delegation registration process
    for registration under this subsection. 
    (c)  This subchapter does not
    modify the authority granted by law for a licensed registered nurse or
    physician assistant to administer or provide a medication, including a
    controlled substance listed in Schedule II as established by the
    commissioner of the Department of State Health Services [public
    health] under Chapter 481, Health and Safety Code, that is authorized
    by a physician under a physician's order, standing medical order, standing
    delegation order, or protocol. 
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     SECTION 4.  Subchapter B,
    Chapter 157, Occupations Code, is amended by adding Sections 157.0512,
    157.0513, and 157.0514 to read as follows: 
    Sec. 157.0512. 
    PRESCRIPTIVE AUTHORITY AGREEMENT.  (a)  A physician may delegate to an
    advanced practice registered nurse or physician assistant, acting under
    adequate physician supervision, the act of prescribing or ordering a drug
    or device as authorized through a prescriptive authority agreement between the
    physician and the advanced practice registered nurse or physician
    assistant, as applicable. 
    (b)  A physician and an
    advanced practice registered nurse or physician assistant are eligible to
    enter into or be parties to a prescriptive authority agreement only if: 
    (1)  if applicable, the
    Texas Board of Nursing has approved the advanced practice registered
    nurse's authority to prescribe or order a drug or device as authorized
    under this subchapter; 
    (2)  the advanced practice
    registered nurse or physician assistant: 
    (A)  holds an active
    license to practice in this state as an advanced practice registered nurse
    or physician assistant, as applicable, and is in good standing in this
    state; and 
    (B)  is not currently
    prohibited by the Texas Board of Nursing or the Texas Physician Assistant
    Board, as applicable, from executing a prescriptive authority agreement;
    and 
    (3)  before executing the
    prescriptive authority agreement, the physician and the advanced practice
    registered nurse or physician assistant disclose to the other prospective
    party to the agreement any prior disciplinary action by the board, the
    Texas Board of Nursing, or the Texas Physician Assistant Board, as
    applicable. 
    (c)  Except as provided by
    Subsection (d), the combined number of advanced practice registered nurses
    and physician assistants with whom a physician may enter into a
    prescriptive authority agreement may not exceed seven advanced practice
    registered nurses and physician assistants or the full-time equivalent of
    seven advanced practice registered nurses and physician assistants. 
    (d)  Subsection (c) does
    not apply to a prescriptive authority agreement if the prescriptive
    authority is being exercised in: 
    (1)  a practice serving a
    medically underserved population; or 
    (2)  a facility-based
    practice in a hospital under Section 157.054. 
    (e)  A prescriptive
    authority agreement must, at a minimum: 
    (1)  be in writing and
    signed and dated by the parties to the agreement; 
    (2)  state the name,
    address, and all professional license numbers of the parties to the
    agreement; 
    (3)  state the nature of
    the practice, practice locations, or practice settings; 
    (4)  identify the types or
    categories of drugs or devices that may be prescribed or the types or
    categories of drugs or devices that may not be prescribed; 
    (5)  provide a general
    plan for addressing consultation and referral; 
    (6)  provide a plan for
    addressing patient emergencies; 
    (7)  state the general
    process for communication and the sharing of information between the
    physician and the advanced practice registered nurse or physician assistant
    to whom the physician has delegated prescriptive authority related to the
    care and treatment of patients; 
    (8)  if alternate
    physician supervision is to be utilized, designate one or more alternate
    physicians who may: 
    (A)  provide appropriate
    supervision on a temporary basis in accordance with the requirements
    established by the prescriptive authority agreement and the requirements of
    this subchapter; and 
    (B)  participate in the
    prescriptive authority quality assurance and improvement plan meetings
    required under this section; and 
    (9)  describe a
    prescriptive authority quality assurance and improvement plan and specify
    methods for documenting the implementation of the plan that includes the
    following: 
    (A)  chart review, with
    the number of charts to be reviewed determined by the physician and
    advanced practice registered nurse or physician assistant; and 
    (B)  periodic face-to-face
    meetings between the advanced practice registered nurse or physician
    assistant and the physician at a location determined by the physician and
    the advanced practice registered nurse or physician assistant. 
    (f)  The periodic
    face-to-face meetings described by Subsection (e)(9)(B) must: 
    (1)  include: 
    (A)  the sharing of
    information relating to patient treatment and care, needed changes in
    patient care plans, and issues relating to referrals; and 
    (B)  discussion of patient
    care improvement; and 
    (2)  be documented and
    occur: 
    (A)  except as provided by
    Paragraph (B): 
    (i)  at least monthly
    until the third anniversary of the date the agreement is executed; and 
    (ii)  at least quarterly
    after the third anniversary of the date the agreement is executed, with
    monthly meetings held between the quarterly meetings by means of a remote
    electronic communications system, including videoconferencing technology or
    the Internet; or 
    (B)  if during the seven
    years preceding the date the agreement is executed the advanced practice
    registered nurse or physician assistant for at least five years was in a
    practice that included the exercise of prescriptive authority with required
    physician supervision: 
    (i)  at least monthly
    until the first anniversary of the date the agreement is executed; and 
    (ii)  at least quarterly
    after the first anniversary of the date the agreement is executed, with
    monthly meetings held between the quarterly meetings by means of a remote
    electronic communications system, including videoconferencing technology or
    the Internet. 
    (g)  The prescriptive
    authority agreement may include other provisions agreed to by the physician
    and advanced practice registered nurse or physician assistant. 
    (h)  If the parties to the
    prescriptive authority agreement practice in a physician group practice,
    the physician may appoint one or more alternate supervising physicians
    designated under Subsection (e)(8), if any, to conduct and document the
    quality assurance meetings in accordance with the requirements of this
    subchapter. 
    (i)  The prescriptive
    authority agreement need not describe the exact steps that an advanced
    practice registered nurse or physician assistant must take with respect to
    each specific condition, disease, or symptom. 
    (j)  A physician, advanced
    practice registered nurse, or physician assistant who is a party to a
    prescriptive authority agreement must retain a copy of the agreement until
    the second anniversary of the date the agreement is terminated. 
    (k)  A party to a
    prescriptive authority agreement may not by contract waive, void, or
    nullify any provision of this section or Section 157.0513. 
    (l)  In the event that a
    party to a prescriptive authority agreement is notified that the individual
    has become the subject of an investigation by the board, the Texas Board of
    Nursing, or the Texas Physician Assistant Board, the individual shall
    immediately notify the other party to the prescriptive authority agreement. 
    (m)  The prescriptive
    authority agreement and any amendments must be reviewed at least annually,
    dated, and signed by the parties to the agreement.  The prescriptive
    authority agreement and any amendments must be made available to the board,
    the Texas Board of Nursing, or the Texas Physician Assistant Board not
    later than the third business day after the date of receipt of request, if
    any. 
    (n)  The prescriptive
    authority agreement should promote the exercise of professional judgment by
    the advanced practice registered nurse or physician assistant commensurate
    with the advanced practice registered nurse's or physician assistant's
    education and experience and the relationship between the advanced practice
    registered nurse or physician assistant and the physician. 
    (o)  This section shall be
    liberally construed to allow the use of prescriptive authority agreements
    to safely and effectively utilize the skills and services of advanced
    practice registered nurses and physician assistants. 
    (p)  The board may not
    adopt rules pertaining to the elements of a prescriptive authority
    agreement that would impose requirements in addition to the requirements
    under this section. 
      
      
      
    (q)  The board, the Texas
    Board of Nursing, and the Texas Physician Assistant Board shall jointly
    develop responses to frequently asked questions relating to prescriptive
    authority agreements not later than January 1, 2014.  This subsection
    expires January 1, 2015. 
      
    Sec. 157.0513. 
    PRESCRIPTIVE AUTHORITY AGREEMENT:  INFORMATION.   
      
    Sec. 157.0514. 
    PRESCRIPTIVE AUTHORITY AGREEMENT:  INSPECTIONS.   
     | 
    
     SECTION 4.  Subchapter B,
    Chapter 157, Occupations Code, is amended by adding Sections 157.0512,
    157.0513, and 157.0514 to read as follows: 
    Sec. 157.0512.  PRESCRIPTIVE
    AUTHORITY AGREEMENT.  (a)  A physician may delegate to an advanced practice
    registered nurse or physician assistant, acting under adequate physician
    supervision, the act of prescribing or ordering a drug or device as
    authorized through a prescriptive authority agreement between the physician
    and the advanced practice registered nurse or physician assistant, as
    applicable. 
    (b)  A physician and an
    advanced practice registered nurse or physician assistant are eligible to
    enter into or be parties to a prescriptive authority agreement only if: 
    (1)  if applicable, the
    Texas Board of Nursing has approved the advanced practice registered
    nurse's authority to prescribe or order a drug or device as authorized
    under this subchapter; 
    (2)  the advanced practice
    registered nurse or physician assistant: 
    (A)  holds an active
    license to practice in this state as an advanced practice registered nurse
    or physician assistant, as applicable, and is in good standing in this
    state; and 
    (B)  is not currently
    prohibited by the Texas Board of Nursing or the Texas Physician Assistant
    Board, as applicable, from executing a prescriptive authority agreement;
    and 
    (3)  before executing the
    prescriptive authority agreement, the physician and the advanced practice
    registered nurse or physician assistant disclose to the other prospective
    party to the agreement any prior disciplinary action by the board, the
    Texas Board of Nursing, or the Texas Physician Assistant Board, as
    applicable. 
    (c)  Except as provided by
    Subsection (d), the combined number of advanced practice registered nurses
    and physician assistants with whom a physician may enter into a
    prescriptive authority agreement may not exceed seven advanced practice
    registered nurses and physician assistants or the full-time equivalent of seven
    advanced practice registered nurses and physician assistants. 
    (d)  Subsection (c) does
    not apply to a prescriptive authority agreement if the prescriptive
    authority is being exercised in: 
    (1)  a practice serving a
    medically underserved population; or 
    (2)  a facility-based
    practice in a hospital under Section 157.054. 
    (e)  A prescriptive
    authority agreement must, at a minimum: 
    (1)  be in writing and
    signed and dated by the parties to the agreement; 
    (2)  state the name,
    address, and all professional license numbers of the parties to the
    agreement; 
    (3)  state the nature of
    the practice, practice locations, or practice settings; 
    (4)  identify the types or
    categories of drugs or devices that may be prescribed or the types or
    categories of drugs or devices that may not be prescribed; 
    (5)  provide a general
    plan for addressing consultation and referral; 
    (6)  provide a plan for
    addressing patient emergencies; 
    (7)  state the general
    process for communication and the sharing of information between the
    physician and the advanced practice registered nurse or physician assistant
    to whom the physician has delegated prescriptive authority related to the
    care and treatment of patients; 
    (8)  if alternate
    physician supervision is to be utilized, designate one or more alternate
    physicians who may: 
    (A)  provide appropriate
    supervision on a temporary basis in accordance with the requirements
    established by the prescriptive authority agreement and the requirements of
    this subchapter; and 
    (B)  participate in the
    prescriptive authority quality assurance and improvement plan meetings
    required under this section; and 
    (9)  describe a
    prescriptive authority quality assurance and improvement plan and specify
    methods for documenting the implementation of the plan that includes the
    following: 
    (A)  chart review, with
    the number of charts to be reviewed determined by the physician and
    advanced practice registered nurse or physician assistant; and 
    (B)  periodic face-to-face
    meetings between the advanced practice registered nurse or physician
    assistant and the physician at a location determined by the physician and
    the advanced practice registered nurse or physician assistant. 
    (f)  The periodic
    face-to-face meetings described by Subsection (e)(9)(B) must: 
    (1)  include: 
    (A)  the sharing of information
    relating to patient treatment and care, needed changes in patient care
    plans, and issues relating to referrals; and 
    (B)  discussion of patient
    care improvement; and 
    (2)  be documented and
    occur: 
    (A)  except as provided by
    Paragraph (B): 
    (i)  at least monthly
    until the third anniversary of the date the agreement is executed; and 
    (ii)  at least quarterly
    after the third anniversary of the date the agreement is executed, with
    monthly meetings held between the quarterly meetings by means of a remote
    electronic communications system, including videoconferencing technology or
    the Internet; or 
    (B)  if during the seven
    years preceding the date the agreement is executed the advanced practice
    registered nurse or physician assistant for at least five years was in a
    practice that included the exercise of prescriptive authority with required
    physician supervision: 
    (i)  at least monthly
    until the first anniversary of the date the agreement is executed; and 
    (ii)  at least quarterly
    after the first anniversary of the date the agreement is executed, with
    monthly meetings held between the quarterly meetings by means of a remote
    electronic communications system, including videoconferencing technology or
    the Internet. 
    (g)  The prescriptive
    authority agreement may include other provisions agreed to by the physician
    and advanced practice registered nurse or physician assistant. 
    (h)  If the parties to the
    prescriptive authority agreement practice in a physician group practice,
    the physician may appoint one or more alternate supervising physicians
    designated under Subsection (e)(8), if any, to conduct and document the
    quality assurance meetings in accordance with the requirements of this
    subchapter. 
    (i)  The prescriptive
    authority agreement need not describe the exact steps that an advanced
    practice registered nurse or physician assistant must take with respect to
    each specific condition, disease, or symptom. 
    (j)  A physician, advanced
    practice registered nurse, or physician assistant who is a party to a
    prescriptive authority agreement must retain a copy of the agreement until
    the second anniversary of the date the agreement is terminated. 
    (k)  A party to a
    prescriptive authority agreement may not by contract waive, void, or
    nullify any provision of this section or Section 157.0513. 
    (l)  In the event that a
    party to a prescriptive authority agreement is notified that the individual
    has become the subject of an investigation by the board, the Texas Board of
    Nursing, or the Texas Physician Assistant Board, the individual shall immediately
    notify the other party to the prescriptive authority agreement. 
    (m)  The prescriptive
    authority agreement and any amendments must be reviewed at least annually,
    dated, and signed by the parties to the agreement.  The prescriptive
    authority agreement and any amendments must be made available to the board,
    the Texas Board of Nursing, or the Texas Physician Assistant Board not
    later than the third business day after the date of receipt of request, if
    any. 
    (n)  The prescriptive
    authority agreement should promote the exercise of professional judgment by
    the advanced practice registered nurse or physician assistant commensurate
    with the advanced practice registered nurse's or physician assistant's
    education and experience and the relationship between the advanced practice
    registered nurse or physician assistant and the physician. 
    (o)  This section shall be
    liberally construed to allow the use of prescriptive authority agreements
    to safely and effectively utilize the skills and services of advanced
    practice registered nurses and physician assistants. 
    (p)  The board may not
    adopt rules pertaining to the elements of a prescriptive authority
    agreement that would impose requirements in addition to the requirements
    under this section.  The board may adopt
    other rules relating to physician delegation under this chapter. 
    (q)  The board, the Texas
    Board of Nursing, and the Texas Physician Assistant Board shall jointly
    develop responses to frequently asked questions relating to prescriptive
    authority agreements not later than January 1, 2014. This subsection
    expires January 1, 2015. 
      
    Sec. 157.0513. 
    PRESCRIPTIVE AUTHORITY AGREEMENT: INFORMATION.   
      
    Sec. 157.0514. 
    PRESCRIPTIVE AUTHORITY AGREEMENT:  INSPECTIONS.   
     | 
    
   
    | 
     SECTION 5.  Section 157.054,
    Occupations Code, is amended. 
     | 
    
     SECTION 5. Same as engrossed
    version. 
      
     | 
    
   
    | 
     SECTION 6.  Section 157.055,
    Occupations Code, is amended. 
     | 
    
     SECTION 6. Same as engrossed
    version. 
      
     | 
    
   
    | 
     SECTION 7.  Section 157.057,
    Occupations Code, is amended. 
     | 
    
     SECTION 7. Same as engrossed
    version. 
      
     | 
    
   
    | 
     SECTION 8.  Subsections (b),
    (d), (e), (f), and (j), Section 157.059, Occupations Code, are amended. 
     | 
    
     SECTION 8. Same as engrossed
    version except for recitation. 
      
     | 
    
   
    | 
     SECTION 9.  Section 157.060,
    Occupations Code, is amended. 
     | 
    
     SECTION 9. Same as engrossed
    version. 
      
     | 
    
   
    | 
     SECTION 10.  Section 156.056,
    Occupations Code, is amended. 
     | 
    
     SECTION 10. Same as engrossed
    version. 
     | 
    
   
    | 
     SECTION 11.  Subchapter C,
    Chapter 204, Occupations Code, is amended. 
     | 
    
     SECTION 11. Same as engrossed
    version. 
     | 
    
   
    | 
     SECTION 12.  Section
    204.1565, Occupations Code, is amended. 
     | 
    
     SECTION 12. Same as engrossed
    version. 
     | 
    
   
    | 
     SECTION 13.  Subsection (b),
    Section 204.202, Occupations Code, is amended. 
     | 
    
     SECTION 13. Same as engrossed
    version except for recitation. 
     | 
    
   
    | 
     No
    equivalent provision. 
      
     | 
    
     SECTION 14.  Section 204.204,
    Occupations Code, is amended by adding Subsection (c) to read as follows: 
    (c)  The number of
    physician assistants a physician may supervise in a practice setting may
    not be less than the number of physician assistants to whom a physician may
    delegate the authority to prescribe or order a drug or device in that
    practice setting under Subchapter B, Chapter 157. 
     | 
    
   
    | 
     SECTION 14.  Subdivision (2),
    Section 301.002, Occupations Code, is amended. 
     | 
    
     SECTION 15. Same as engrossed
    version except for recitation. 
     | 
    
   
    | 
     SECTION 15.  Section 301.005,
    Occupations Code, is amended. 
     | 
    
     SECTION 16. Same as engrossed
    version. 
     | 
    
   
    | 
     SECTION 16.  Section 301.152,
    Occupations Code, is amended. 
     | 
    
     SECTION 17. Same as engrossed
    version. 
     | 
    
   
    | 
     SECTION 17.  Subchapter D,
    Chapter 301, Occupations Code, is amended. 
     | 
    
     SECTION 18. Same as engrossed
    version. 
     | 
    
   
    | 
     SECTION 18.  Subdivisions
    (34) and (45), Section 551.003, Occupations Code, are amended. 
     | 
    
     SECTION 19. Same as engrossed
    version except for recitation. 
      
     | 
    
   
    | 
     No
    equivalent provision. 
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
    No
    equivalent provision. 
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
    No
    equivalent provision. 
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
    No
    equivalent provision. 
      
     | 
    
     SECTION 20.  Section
    533.005(a), Government Code, is amended to read as follows: 
    (a)  A contract between a
    managed care organization and the commission for the organization to
    provide health care services to recipients must contain: 
    (1)  procedures to ensure
    accountability to the state for the provision of health care services,
    including procedures for financial reporting, quality assurance,
    utilization review, and assurance of contract and subcontract compliance; 
    (2)  capitation rates that
    ensure the cost-effective provision of quality health care; 
    (3)  a requirement that the
    managed care organization provide ready access to a person who assists
    recipients in resolving issues relating to enrollment, plan administration,
    education and training, access to services, and grievance procedures; 
    (4)  a requirement that the
    managed care organization provide ready access to a person who assists
    providers in resolving issues relating to payment, plan administration,
    education and training, and grievance procedures; 
    (5)  a requirement that the
    managed care organization provide information and referral about the
    availability of educational, social, and other community services that
    could benefit a recipient; 
    (6)  procedures for recipient
    outreach and education; 
    (7)  a requirement that the
    managed care organization make payment to a physician or provider for
    health care services rendered to a recipient under a managed care plan not
    later than the 45th day after the date a claim for payment is received with
    documentation reasonably necessary for the managed care organization to
    process the claim, or within a period, not to exceed 60 days, specified by
    a written agreement between the physician or provider and the managed care
    organization; 
    (8)  a requirement that the
    commission, on the date of a recipient's enrollment in a managed care plan
    issued by the managed care organization, inform the organization of the
    recipient's Medicaid certification date; 
    (9)  a requirement that the
    managed care organization comply with Section 533.006 as a condition of
    contract retention and renewal; 
    (10)  a requirement that the
    managed care organization provide the information required by Section
    533.012 and otherwise comply and cooperate with the commission's office of
    inspector general and the office of the attorney general; 
    (11)  a requirement that the
    managed care organization's usages of out-of-network providers or groups of
    out-of-network providers may not exceed limits for those usages relating to
    total inpatient admissions, total outpatient services, and emergency room
    admissions determined by the commission; 
    (12)  if the commission finds
    that a managed care organization has violated Subdivision (11), a
    requirement that the managed care organization reimburse an out-of-network
    provider for health care services at a rate that is equal to the allowable
    rate for those services, as determined under Sections 32.028 and 32.0281,
    Human Resources Code; 
    (13)  a requirement that,
    notwithstanding any other law, including Sections 843.312 and 1301.052,
    Insurance Code, the organization: 
    (A)  use advanced
    practice registered nurses and physician assistants in
    addition to physicians as primary care providers to increase the
    availability of primary care providers in the organization's provider
    network; and 
    (B)  treat advanced
    practice registered nurses and physician assistants in the same manner as
    primary care physicians with regard to: 
    (i)  selection and
    assignment as primary care providers; 
    (ii)  inclusion as primary
    care providers in the organization's provider network; and 
    (iii)  inclusion as
    primary care providers in any provider network directory maintained by the
    organization; 
    (14)  a requirement that the
    managed care organization reimburse a federally qualified health center or
    rural health clinic for health care services provided to a recipient
    outside of regular business hours, including on a weekend day or holiday,
    at a rate that is equal to the allowable rate for those services as determined
    under Section 32.028, Human Resources Code, if the recipient does not have
    a referral from the recipient's primary care physician; 
    (15)  a requirement that the
    managed care organization develop, implement, and maintain a system for
    tracking and resolving all provider appeals related to claims payment,
    including a process that will require: 
    (A)  a tracking mechanism to
    document the status and final disposition of each provider's claims payment
    appeal; 
    (B)  the contracting with
    physicians who are not network providers and who are of the same or related
    specialty as the appealing physician to resolve claims disputes related to
    denial on the basis of medical necessity that remain unresolved subsequent
    to a provider appeal; and 
    (C)  the determination of the
    physician resolving the dispute to be binding on the managed care
    organization and provider; 
    (16)  a requirement that a
    medical director who is authorized to make medical necessity determinations
    is available to the region where the managed care organization provides
    health care services; 
    (17)  a requirement that the
    managed care organization ensure that a medical director and patient care
    coordinators and provider and recipient support services personnel are
    located in the South Texas service region, if the managed care organization
    provides a managed care plan in that region; 
    (18)  a requirement that the
    managed care organization provide special programs and materials for
    recipients with limited English proficiency or low literacy skills; 
    (19)  a requirement that the
    managed care organization develop and establish a process for responding to
    provider appeals in the region where the organization provides health care
    services; 
    (20)  a requirement that the
    managed care organization develop and submit to the commission, before the
    organization begins to provide health care services to recipients, a
    comprehensive plan that describes how the organization's provider network
    will provide recipients sufficient access to: 
    (A)  preventive care; 
    (B)  primary care; 
    (C)  specialty care; 
    (D)  after-hours urgent care;
    and 
    (E)  chronic care; 
    (21)  a requirement that the
    managed care organization demonstrate to the commission, before the
    organization begins to provide health care services to recipients, that: 
    (A)  the organization's
    provider network has the capacity to serve the number of recipients
    expected to enroll in a managed care plan offered by the organization; 
    (B)  the organization's
    provider network includes: 
    (i)  a sufficient number of
    primary care providers; 
    (ii)  a sufficient variety of
    provider types; and 
    (iii)  providers located
    throughout the region where the organization will provide health care
    services; and 
    (C)  health care services
    will be accessible to recipients through the organization's provider
    network to a comparable extent that health care services would be available
    to recipients under a fee-for-service or primary care case management model
    of Medicaid managed care; 
    (22)  a requirement that the
    managed care organization develop a monitoring program for measuring the
    quality of the health care services provided by the organization's provider
    network that: 
    (A)  incorporates the
    National Committee for Quality Assurance's Healthcare Effectiveness Data
    and Information Set (HEDIS) measures; 
    (B)  focuses on measuring
    outcomes; and 
    (C)  includes the collection
    and analysis of clinical data relating to prenatal care, preventive care,
    mental health care, and the treatment of acute and chronic health
    conditions and substance abuse; 
    (23)  subject to Subsection
    (a-1), a requirement that the managed care organization develop, implement,
    and maintain an outpatient pharmacy benefit plan for its enrolled
    recipients: 
    (A)  that exclusively employs
    the vendor drug program formulary and preserves the state's ability to
    reduce waste, fraud, and abuse under the Medicaid program; 
    (B)  that adheres to the
    applicable preferred drug list adopted by the commission under Section
    531.072; 
    (C)  that includes the prior
    authorization procedures and requirements prescribed by or implemented
    under Sections 531.073(b), (c), and (g) for the vendor drug program; 
    (D)  for purposes of which
    the managed care organization: 
    (i)  may not negotiate or
    collect rebates associated with pharmacy products on the vendor drug
    program formulary; and 
    (ii)  may not receive drug
    rebate or pricing information that is confidential under Section 531.071; 
    (E)  that complies with the
    prohibition under Section 531.089; 
    (F)  under which the managed
    care organization may not prohibit, limit, or interfere with a recipient's
    selection of a pharmacy or pharmacist of the recipient's choice for the
    provision of pharmaceutical services under the plan through the imposition
    of different copayments; 
    (G)  that allows the managed
    care organization or any subcontracted pharmacy benefit manager to contract
    with a pharmacist or pharmacy providers separately for specialty pharmacy
    services, except that: 
    (i)  the managed care
    organization and pharmacy benefit manager are prohibited from allowing
    exclusive contracts with a specialty pharmacy owned wholly or partly by the
    pharmacy benefit manager responsible for the administration of the pharmacy
    benefit program; and 
    (ii)  the managed care
    organization and pharmacy benefit manager must adopt policies and
    procedures for reclassifying prescription drugs from retail to specialty
    drugs, and those policies and procedures must be consistent with rules
    adopted by the executive commissioner and include notice to network
    pharmacy providers from the managed care organization; 
    (H)  under which the managed
    care organization may not prevent a pharmacy or pharmacist from
    participating as a provider if the pharmacy or pharmacist agrees to comply
    with the financial terms and conditions of the contract as well as other
    reasonable administrative and professional terms and conditions of the
    contract; 
    (I)  under which the managed
    care organization may include mail-order pharmacies in its networks, but
    may not require enrolled recipients to use those pharmacies, and may not
    charge an enrolled recipient who opts to use this service a fee, including
    postage and handling fees; and 
    (J)  under which the managed
    care organization or pharmacy benefit manager, as applicable, must pay
    claims in accordance with Section 843.339, Insurance Code; and 
    (24)  a requirement that the
    managed care organization and any entity with which the managed care
    organization contracts for the performance of services under a managed care
    plan disclose, at no cost, to the commission and, on request, the office of
    the attorney general all discounts, incentives, rebates, fees, free goods,
    bundling arrangements, and other agreements affecting the net cost of goods
    or services provided under the plan. 
     | 
    
   
    | 
     SECTION 19.  Subsection (b),
    Section 671.001, Government Code, is amended. 
     | 
    
     SECTION 21. Same as engrossed
    version except for recitation. 
     | 
    
   
    | 
     No
    equivalent provision. 
      
     | 
    
     SECTION 22.  Subchapter D,
    Chapter 62, Health and Safety Code, is amended by adding Section 62.1551 to
    read as follows: 
    Sec. 62.1551.  INCLUSION
    OF CERTAIN HEALTH CARE PROVIDERS IN PROVIDER NETWORKS.  Notwithstanding any
    other law, including Sections 843.312 and 1301.052, Insurance Code, the
    executive commissioner of the commission shall adopt rules to require a
    managed care organization or other entity to ensure that advanced practice
    registered nurses and physician assistants are available as primary care
    providers in the organization's or entity's provider network.  The rules
    must require advanced practice registered nurses and physician assistants
    to be treated in the same manner as primary care physicians with regard to: 
    (1)  selection and
    assignment as primary care providers; 
    (2)  inclusion as primary
    care providers in the provider network; and 
    (3)  inclusion as primary
    care providers in any provider network directory maintained by the organization
    or entity. 
     | 
    
   
    | 
     SECTION 20.  Subdivision
    (39), Section 481.002, Health and Safety Code, is amended. 
     | 
    
     SECTION 23. Same as engrossed
    version except for recitation. 
      
     | 
    
   
    | 
     SECTION 21.  Subdivision
    (12), Section 483.001, Health and Safety Code, is amended. 
     | 
    
     SECTION 24. Same as engrossed
    version except for recitation. 
      
     | 
    
   
    | 
     No
    equivalent provision. 
      
     | 
    
     SECTION 25.  Section 32.024,
    Human Resources Code, is amended by adding Subsection (gg) to read as
    follows: 
    (gg)  Notwithstanding any
    other law, including Sections 843.312 and 1301.052, Insurance Code, the
    department shall ensure that advanced practice registered nurses and
    physician assistants may be selected by and assigned to recipients of
    medical assistance as the primary care providers of those recipients.  The
    department must require that advanced practice registered nurses and
    physician assistants be treated in the same manner as primary care
    physicians with regard to: 
    (1)  selection and
    assignment as primary care providers; and 
    (2)  inclusion as primary
    care providers in any directory of providers of medical assistance
    maintained by the department. 
     | 
    
   
    | 
     No
    equivalent provision. 
      
     | 
    
     SECTION 26.  Subchapter B,
    Chapter 32, Human Resources Code, is amended by adding Section 32.03141 to
    read as follows: 
    Sec. 32.03141.  AUTHORITY
    OF ADVANCED PRACTICE REGISTERED NURSES AND PHYSICIAN ASSISTANTS REGARDING
    DURABLE MEDICAL EQUIPMENT AND SUPPLIES.  To the extent allowed by federal
    law, an advanced practice registered nurse or physician assistant acting
    under adequate physician supervision and to whom a physician has delegated
    the authority to prescribe and order drugs and devices under Chapter 157,
    Occupations Code, may order and prescribe durable medical equipment and
    supplies under the medical assistance program. 
     | 
    
   
    | 
     SECTION 22.  Sections 157.052,
    157.053, 157.0541, and 157.0542, Occupations Code, are repealed. 
     | 
    
     SECTION 27. Same as engrossed
    version. 
      
     | 
    
   
    | 
     SECTION 23.  The changes in
    law made by this Act apply only to a delegation of prescriptive authority
    by a physician to an advanced practice registered nurse or physician
    assistant made or amended on or after January 31, 2014.  A delegation of
    prescriptive authority made or amended before January 31, 2014, 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. 
     | 
    
     No
    equivalent provision. 
      
     | 
    
   
    | 
     SECTION 24.  The calculation
    under Chapter 157, Occupations Code, as amended by this Act, of the amount
    of time an advanced practice registered nurse or physician assistant has
    practiced under the delegated prescriptive authority of a physician under a
    prescriptive authority agreement shall include the amount of time the
    advanced practice registered nurse or physician assistant practiced under
    the delegated prescriptive authority of that physician before the effective
    date of this Act. 
     | 
    
     SECTION 28. Same as engrossed
    version. 
      
      
     | 
    
   
    | 
     SECTION 25.  Not later than December 31, 2013, the Texas Medical Board,
    the Texas Board of Nursing, and the Texas Physician Assistant Board shall
    adopt the rules necessary to implement the changes in law made by this Act. 
     | 
    
     SECTION 29.  Not later than November 1, 2013, the Texas Medical Board,
    the Texas Board of Nursing, and the Texas Physician Assistant Board shall
    adopt the rules necessary to implement the changes in law made by this Act. 
     | 
    
   
    | 
     SECTION 26.  This Act takes
    effect September 1, 2013. 
     | 
    
     SECTION 30.  This Act takes
    effect November 1, 2013. 
     | 
    
   
  
   |