Relating to the regulation of veterinary professionals and facilities by the State Board of Veterinary Medical Examiners and the temporary administration of the board by the Department of Licensing and Regulation.

89(R) SB 2155 - Enrolled version - Bill Text

S.B. No. 2155

AN ACT

relating to the regulation of veterinary professionals and

facilities by the State Board of Veterinary Medical Examiners and

the temporary administration of the board by the Department of

Licensing and Regulation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 801.002, Occupations Code, is amended by

adding Subdivisions (6-b) and (6-c) to read as follows:

(6-b)

"Veterinary medical facility" means a location,

including a building, portion of a building, or vehicle, in which

the practice of veterinary medicine normally takes place or is

provided.

(6-c) "Management services organization" means a

business entity that provides management services to a veterinary

medical facility, as defined by board rule.

SECTION 2. Sections 801.023(a) and (b), Occupations Code,

are amended to read as follows:

(a) The executive director of the department shall direct

and may dismiss the
board's
executive director [
of the board
]
, and

has authority relating to personnel actions as if the board's

executive director were an employee of the department
. The

presiding officer of the commission shall appoint a replacement

executive director of the board if necessary.

(b) Subject to Subsection (a), the executive director of the

board is responsible for the administration of
licensing,

enforcement,
financial services, human resources, and workforce

development duties of the board, including:

(1) accounts payable and accounts receivable;

(2) budgeting, inventory, and asset management;

(3) payroll;

(4) personnel and labor issues;

(5) purchasing;

(6) recruitment, evaluation, selection, training, and

promotion of personnel;

(7) submitting required reports regarding finances,

performance measures, strategic planning, legislative

appropriations requests, operating budgets, and similar

information as required by law;

(8) legal support services, including responding to

requests for public information; and

(9) information technology and support.

SECTION 3. Section 801.101, Occupations Code, is amended to

read as follows:

Sec. 801.101. EXECUTIVE DIRECTOR. The board
shall appoint

[
may employ
] an executive director.
The executive director serves

at the will of the board.

SECTION 4. Section 801.102, Occupations Code, is amended to

read as follows:

Sec. 801.102. [
CERTAIN DUTIES OF
] EXECUTIVE DIRECTOR
POWERS

AND DUTIES
. (a) The executive director
shall
[
is responsible for
]:

(1)

perform any duties assigned by the board and other

duties specified by law;

(2) administer and enforce the board's programs; and

(3) issue licenses regulated by the board.

[
(1)

safekeeping the money collected under this

chapter; and

[
(2)

properly disbursing the veterinary fund account

established by this chapter.
]

(b) The executive director may:

(1)

delegate any power or duty assigned to the

executive director unless prohibited by law; and

(2)

issue emergency orders and cease and desist orders

as provided by this chapter.

SECTION 5. Section 801.103, Occupations Code, is amended to

read as follows:

Sec. 801.103. PERSONNEL. The board may employ personnel to

administer this chapter
and may prescribe their duties and

compensation, subject to the personnel policies and budget approved

by the board
.

SECTION 6. Subchapter D, Chapter 801, Occupations Code, is

amended by adding Section 801.150 to read as follows:

Sec.

801.150.

GENERAL POWERS AND DUTIES OF BOARD. The board

shall:

(1)

supervise the executive director's administration

of this chapter;

(2) formulate policy objectives for the board; and

(3)

approve the board's operating budget and requests

for legislative appropriations.

SECTION 7. Sections 801.151(a) and (b), Occupations Code,

are amended to read as follows:

(a) The board
shall
[
may
] adopt rules as necessary to

administer this chapter.

(b) The board
shall
[
may
] adopt rules of professional

conduct appropriate to establish and maintain a high standard of

integrity, skills, and practice in the veterinary medicine

profession.

SECTION 8. Section 801.156, Occupations Code, is amended to

read as follows:

Sec. 801.156.
DATA; PUBLIC ACCESS
[
REGISTRY
]. (a) The

board shall maintain
an electronic system allowing it to provide

accurate reporting of information relating to license holders and

applicants, complaints, enforcement actions, investigations, and

inspections
[
a record of each license holder's:

[
(1) name;

[
(2) residence address; and

[
(3) business address
].

(b) The board shall provide on its public-facing website:

(1)

a feature allowing users to verify a license

holder's license status, determine whether the license holder is

currently subject to disciplinary action, and review relevant

disciplinary orders; and

(2)

data, updated at least quarterly, summarizing the

number, type, and disposition of complaints received during the

fiscal year.

[
(b)

A license holder shall notify the board of a change of

business address or employer not later than the 60th day after the

date the change takes effect.
]

SECTION 9. Section 801.157, Occupations Code, is amended by

adding Subsection (c) to read as follows:

(c)

The board shall provide information on its website

directing licensed veterinarians to approved peer assistance

programs.

SECTION 10. Section 801.158(a), Occupations Code, is

amended to read as follows:

(a) The board
or executive director
may request and, if

necessary, compel by subpoena:

(1) the attendance of witnesses for examination under

oath; and

(2) the production for inspection or copying of books,

accounts, records, papers, correspondence, documents, and other

evidence relevant to an investigation of an alleged violation of

this chapter.

SECTION 11. Section 801.161, Occupations Code, is amended

to read as follows:

Sec. 801.161. USE OF TECHNOLOGY.
(a)
The board shall

implement a policy requiring the board to use appropriate

technological solutions to improve the board's ability to perform

its functions. The policy must ensure that the public is able to

interact with the board on the Internet.

(b)

The board may by rule require an applicant or license

holder to provide an e-mail address for purposes of receiving

correspondence.

An e-mail address provided under this section is

confidential and is not subject to disclosure under Chapter 552,

Government Code.

(c)

Notwithstanding any other law, the board may by rule

provide that service of any notice, order, or pleading required

under this chapter or under Chapter 2001, Government Code, may be

made electronically to the e-mail address provided pursuant to

Subsection (b).

SECTION 12. Section 801.163(d), Occupations Code, is

amended to read as follows:

(d)
Notwithstanding any other law,
[
To the extent of any

conflict with
] Chapter 2110, Government Code,
does not apply to an

advisory committee appointed under
this section [
and board rules

adopted under this section control
].

SECTION 13. Subchapter D, Chapter 801, Occupations Code, is

amended by adding Section 801.1631 to read as follows:

Sec.

801.1631.

INSPECTIONS AND INVESTIGATIONS. (a) The

board may conduct inspections or investigations as necessary to

enforce the laws administered by the board.

(b)

To perform its functions under Subsection (a), the board

may, during reasonable business hours:

(1)

enter a veterinary medical facility or other

business premises of a person regulated by the board, or of a person

suspected of being in violation of, or threatening to violate, a law

administered by the board, or a rule or order of the board or

executive director; and

(2)

examine and copy records pertinent to the

inspection or investigation.

(c)

The board may take a disciplinary action authorized by

this chapter for a violation identified during an inspection.

SECTION 14. Section 801.164, Occupations Code, is amended

to read as follows:

Sec. 801.164. RISK-BASED INSPECTIONS [
RELATED TO

CONTROLLED SUBSTANCES PRACTICES
].
(a)
The board
shall
[
may conduct

a risk-based inspection
]
prioritize inspections relating to key

risk factors identified by the board, including previous violations

by the license holder or
[
of a veterinarian's practice based on
]

information [
obtained from the veterinarian or another source
]

concerning
a
[
the
] veterinarian's use, handling, prescribing,

dispensing, or delivery of controlled substances.

(b)

The board may use alternative inspection methods,

including videoconference or similar technology, instead of

conducting an in-person inspection in circumstances the board

considers appropriate.

SECTION 15. Subchapter D, Chapter 801, Occupations Code, is

amended by adding Section 801.165 to read as follows:

Sec.

801.165.

REFUND. (a)

Subject to Subsection (b), if

the board finds that the license holder has committed an act that is

grounds for license denial or disciplinary action under Section

801.402, the board or executive director may order a license holder

to pay a refund to a consumer as provided in an agreed settlement,

default order, or board order instead of or in addition to imposing

an administrative penalty or sanction.

(b)

The amount of a refund ordered under this section may

not exceed the amount the consumer paid to the license holder for a

service regulated by the board, and may not require payment of other

damages or estimate harm.

(c)

This section does not grant the board jurisdiction over

a complaint based solely on the cost of a veterinary service.

SECTION 16. Subchapter D, Chapter 801, Occupations Code, is

amended by adding Section 801.166 to read as follows:

Sec.

801.166.

RECIPROCITY AGREEMENTS. The board, with

approval of the governor, may enter into an agreement with another

state to allow for licensing by reciprocity.

SECTION 17. Section 801.205, Occupations Code, is amended

to read as follows:

Sec. 801.205. GENERAL RULES REGARDING COMPLAINT

INVESTIGATION AND DISPOSITION. The board shall adopt rules

relating to the investigation
and disposition
of complaints filed

with the board. The rules must:

(1) distinguish between categories of complaints;

(2) ensure that complaints are not dismissed without

appropriate consideration;
and

(3) require that the board be advised of a complaint

that is dismissed
.
[
;

[
(4)

ensure that the person who filed the complaint

has the opportunity to explain the allegations made in the

complaint; and

[
(5)

prescribe guidelines concerning the categories

of complaints that require the use of a private investigator and the

procedures for the board to obtain the services of a private

investigator.
]

SECTION 18. Section 801.2051, Occupations Code, is amended

to read as follows:

Sec. 801.2051. PRIORITY OF COMPLAINTS.
The board shall

assign priorities and investigate complaints based on risk posed to

the public by the conduct alleged in the complaint.
The board shall

prioritize complaints
regarding persons engaged in the practice of

veterinary medicine without a license
[
to resolve the more serious

complaints first
].

SECTION 19. Section 801.2052, Occupations Code, is amended

to read as follows:

Sec. 801.2052. DISMISSAL OF BASELESS OR UNFOUNDED

COMPLAINT. (a)
If the board determines at any time that an

allegation or complaint submitted by a person is baseless,

unfounded, or does not fall within the board's regulatory

jurisdiction, the board shall dismiss the complaint.
[
If, before

the 180th day after the date the board's official investigation of a

complaint is commenced, the board determines in accordance with

rules adopted under this section that a complaint filed with the

board is baseless or unfounded, the board shall:

[
(1) dismiss the complaint; and

[
(2)

include a statement in the record of the

complaint that the complaint was dismissed because the complaint

was baseless or unfounded.
]

(b) The board shall adopt rules to implement this section

and establish criteria for determining that a complaint is baseless

or unfounded.

SECTION 20. Section 801.2055, Occupations Code, is amended

by adding Subsection (c-1) and amending Subsection (d) to read as

follows:

(c-1)

The board may contract with a qualified individual to

assist in reviewing or investigating complaints requiring medical

expertise.

Except for an act involving fraud, conspiracy, or

malice, an individual with whom the board contracts under this

subsection is immune from liability or from disciplinary action

under this chapter and may not be subject to a suit for damages for

any act arising from the performance of the individual's duties in:

(1)

participating in an informal conference to

determine the facts of a complaint;

(2)

offering an expert opinion or technical guidance

on an alleged violation of this chapter or of a rule or order issued

by the board or executive director;

(3) testifying at a hearing regarding a complaint; or

(4)

making an evaluation, report, or recommendation

regarding a complaint.

(d) A veterinarian board member who reviews a complaint

under this section may not [
participate in
]
deliberate or vote in

any subsequent disciplinary proceeding related to the complaint.

SECTION 21. Section 801.2056, Occupations Code, is amended

to read as follows:

Sec. 801.2056. COMPLAINTS NOT REQUIRING MEDICAL EXPERTISE.

[
(a)
]
The board shall adopt rules relating to the evaluation and

disposition of complaints not requiring medical expertise.
[
The

board may delegate to a committee of board staff the authority to

dismiss or enter into an agreed settlement of a complaint that does

not require medical expertise. The disposition determined by the

committee must be approved by the board at a public meeting.

[
(b)

A complaint delegated under this section shall be

referred for informal proceedings under Section 801.408 if:

[
(1)

the committee determines that the complaint

should not be dismissed or settled;

[
(2)

the committee is unable to reach an agreed

settlement; or

[
(3)

the license holder who is the subject of the

complaint requests that the complaint be referred for informal

proceedings.
]

SECTION 22. Section 801.207, Occupations Code, is amended

to read as follows:

Sec. 801.207.
CONFIDENTIALITY
[
PUBLIC RECORD; EXCEPTION
].

(a)
Except as otherwise provided by this section, a complaint and

investigation concerning a person to whom this chapter applies, and

all information and materials subpoenaed or compiled by the board

in connection with the complaint and investigation, are

confidential and not subject to:

(1) disclosure under Chapter 552, Government Code; or

(2)

disclosure, discovery, subpoena, or other means of

legal compulsion for their release to any person.
[
Except as

provided by Subsection (b), a board record is a public record and is

available for public inspection during normal business hours.
]

(b)
Notwithstanding Subsection (a), the board may disclose

information regarding a complaint or investigation to:

(1)

a person providing testimony or review on the

board's behalf in a disciplinary proceeding;

(2)

a respondent or the respondent's authorized

representative;

(3)

a professional licensing, credentialing, or

disciplinary entity;

(4)

a peer assistance program approved by the board

pursuant to Section 801.157;

(5) a law enforcement agency; or

(6)

a person engaged in bona fide research, if all

individual-identifying information has been deleted.
[
Except as

provided by Subsection (b-1), each complaint, investigation file

and record, and other investigation report and all other

investigative information in the possession of or received or

gathered by the board or the board's employees or agents relating to

a license holder, an application for license, or a criminal

investigation or proceeding is privileged and confidential and is

not subject to discovery, subpoena, or other means of legal

compulsion for release to anyone other than the board or the board's

employees or agents involved in discipline of a license holder.
]

(b-1) Not later than the 14th day before the date of an

informal proceeding under Section 801.408, the board shall provide

to the license holder who is the subject of the complaint a copy of

the record of any review conducted under Section 801.2055 of a

complaint requiring medical expertise. The board shall redact the

name of each veterinarian who conducted the review.

(c) Except as provided by Subsection (b-1), the board shall

protect the identity of a complainant to the extent possible.

(d) Not later than the 30th day after the date of receipt of

a written request from a license holder who is the subject of a

formal complaint initiated and filed under this subchapter or from

the license holder's counsel of record, and subject to any other

privilege or restriction set forth by rule, statute, or legal

precedent, and unless good cause is shown for delay, the board shall

provide the license holder with access to all information in its

possession that the board intends to offer into evidence in

presenting its case in chief at the contested hearing on the

complaint. The board is not required to provide:

(1) a board investigative report or memorandum;

(2) the identity of a nontestifying complainant; or

(3) attorney-client communications, attorney work

product, or other materials covered by a privilege recognized by

the Texas Rules of Civil Procedure or the Texas Rules of Evidence.

(e) Furnishing information under Subsection (d) does not

constitute a waiver of privilege or confidentiality under this

chapter or other applicable law.

(f)

The board may not be compelled to release or disclose

complaint and investigation information or materials to a person

listed in Subsection (b) if the board has not issued a notice of

alleged violation related to the information or materials.

(g)

Notices of alleged violation and disciplinary orders,

including warnings and reprimands, issued by the board are not

confidential and are subject to disclosure in accordance with

Chapter 552, Government Code.

(h)

Notwithstanding any other provision of this section, if

an investigation would be jeopardized by the disclosure of

information relating to a complaint or investigation, the board may

temporarily withhold or otherwise refrain from disclosing to any

person any information or materials that the board would otherwise

be required to disclose.

SECTION 23. Section 801.208(d), Occupations Code, is

amended to read as follows:

(d) The notification may not include information that is

confidential under Section 801.207[
(b)
].

SECTION 24. Section 801.253, Occupations Code, as amended

by Acts 2011, 82nd Leg., R.S., Ch. 940 (H.B. 414), Sec. 9, is

reenacted and amended to read as follows:

(a) The board shall conduct licensing examinations for

veterinarians as provided by board rule. [
The board shall conduct

the examination at a time and place the board determines is

convenient for applicants.
]

(b) The board shall provide notice of a licensing

examination
on its Internet website
[
by publication in a newspaper

or periodical.

[
(c)

The board shall examine each qualified applicant who

attends the examination
].

SECTION 25. Section 801.406, Occupations Code, is amended

to read as follows:

Sec. 801.406.
REINSTATEMENT AFTER
[
REQUIRED DISCIPLINARY

ACTION FOR
] CERTAIN FELONY CONVICTIONS. (a)
If a person's license

has been revoked:

(1)

by operation of law pursuant to Section 53.021(b),

Occupations Code, upon imprisonment after a conviction of a felony

under Chapter 481 or 483 of the Health and Safety Code; or

(2)

by the board upon conviction of a license holder of

an offense under Section 485.033, Health and Safety Code, or of any

offense under Chapter 481 or 483 of that code,
[
On conviction of a

license holder of a felony under Section 485.033, Health and Safety

Code, or Chapter 481 or 483 of that code, the board shall, after

conducting an administrative hearing in which the fact of

conviction is determined, impose a penalty as provided by Section

801.401. The board shall set the amount of the penalty to match the

seriousness of the conviction.

[
(c) The
]
the
board may reinstate or reissue
the
[
a
] license

[
suspended or revoked under this section
] only
upon determining
[
on

an express determination based on substantial evidence contained in

an investigative report indicating
] that reinstatement or

reissuance of the license is in the best interests of[
:

[
(1)
] the public[
;
] and

[
(2)
] the person whose license has been [
suspended or
]

revoked.

SECTION 26. Section 801.407(d), Occupations Code, is

amended to read as follows:

(d)
The board shall by rule prescribe notice procedures for

proceedings under this subchapter
[
The board may conduct

deliberations relating to a disciplinary action during executive

session. At the conclusion of those deliberations, the board shall

vote and announce its decision to the license holder in open

session
].

SECTION 27. Section 801.408, Occupations Code, is amended

to read as follows:

Sec. 801.408. INFORMAL PROCEEDINGS. (a) The board by rule

shall adopt procedures governing:

(1) informal disposition of a contested case under

Section 2001.056, Government Code; and

(2) an informal proceeding held in compliance with

Section 2001.054, Government Code.

(b) Rules adopted under Subsection (a) must:

(1) provide the complainant and the license holder an

opportunity to be heard; and

(2) require the presence of
a member of
the board's

legal staff
[
general counsel
] or a representative of the attorney

general during an informal proceeding to advise the board or the

board's employees.

(c) A committee of two or more veterinarian board members

and one or more public board members must be present at an informal

proceeding for a complaint that requires medical expertise. The

committee shall recommend enforcement action at the informal

proceeding.

[
(d)

A committee of board staff may recommend enforcement

action at an informal proceeding for a complaint that does not

require medical expertise or may refer the complaint to the

committee of board members under Subsection (c).

[
(e)

At an informal proceeding under this section, and on

agreement with the license holder, the board may order the license

holder to refund an amount not to exceed the amount a client paid to

the license holder instead of or in addition to imposing an

administrative penalty under this chapter. The board may not

require payment of other damages or estimate harm under this

subsection.
]

(d)
[
(f)
] Before an informal disposition is effective, the

board must review and approve at a public meeting an informal

disposition of the complaint recommended by board members or board

staff.

SECTION 28. Subchapter I, Chapter 801, Occupations Code, is

amended by adding Section 801.4011 to read as follows:

Sec.

801.4011.

DEFERRED ACTION.

(a)

For any action or

complaint for which the board proposes to impose on a person a

sanction other than a reprimand or a denial, suspension, or

revocation of a license, the board may:

(1)

defer the final action the board has proposed if

the person conforms to conditions imposed by the board, including

any condition the board could impose as a condition of probation

under Section 801.401; and

(2)

if the person successfully meets the imposed

conditions, dismiss the complaint.

(b)

Except as provided by this subsection, a deferred action

by the board is not confidential and is subject to disclosure in

accordance with Chapter 552, Government Code. If the person

successfully meets the conditions imposed by the board in deferring

final action and the board dismisses the action or complaint, the

deferred action of the board is confidential to the same extent as a

complaint is confidential under Section 801.207.

SECTION 29. Subchapter J, Chapter 801, Occupations Code, is

amended by adding Section 801.4521 to read as follows:

Sec.

801.4521.

IMPOSITION OF SANCTION. A proceeding under

this subchapter imposing an administrative penalty may be combined

with a proceeding to impose an administrative sanction.

If a

sanction is imposed in a proceeding under this subchapter, the

requirements of this subchapter apply to the imposition of the

sanction.

SECTION 30. Section 801.453(a), Occupations Code, is

amended to read as follows:

(a) On a determination by a committee described by Section

801.408(c) [
or (d)
] that a violation of this chapter or a rule

adopted or order issued under this chapter occurred, the committee

may issue a report to the board stating:

(1) the facts on which the determination is based; and

(2) the committee's recommendation on the imposition

of an administrative penalty, including a recommendation on the

amount of the penalty.

SECTION 31. Section 801.454, Occupations Code, is amended

to read as follows:

Sec. 801.454. PENALTY TO BE PAID OR HEARING REQUESTED [
ON

COMMITTEE'S RECOMMENDATIONS
]. (a) Not later than the 20th day

after the date a person receives
a
[
the
] notice
of alleged

violation
, the person may in writing:

(1) accept the
board's
[
committee's
] determination and

recommended administrative penalty; or

(2) request a hearing on the occurrence of the

violation, the amount of the penalty, or both.

(b) If the person accepts the
board's
[
committee's
]

determination and recommended penalty, the board by order
shall

approve the determination and require the person to pay the

recommended penalty
[
may:

[
(1)

approve the determination and impose the

recommended penalty;

[
(2)

modify the determination or recommended penalty;

or

[
(3)

reject the determination or recommended

penalty
].

SECTION 32. Section 801.455, Occupations Code, is amended

to read as follows:

Sec. 801.455. HEARING [
ON COMMITTEE'S RECOMMENDATIONS
].

(a)
If a respondent requests a hearing pursuant to Section 801.407,

the hearing shall be conducted by the State Office of

Administrative Hearings
[
If the person requests a hearing or fails

to respond timely to the notice, the executive director shall set a

hearing and give notice of the hearing to the person
].

(b)
The State Office of Administrative Hearings shall

consider the board's applicable substantive rules and policies when

conducting a hearing under this subchapter
[
A hearing set by the

executive director under Subsection (a) shall be held by an

administrative law judge of the State Office of Administrative

Hearings
].

(c) The administrative law judge shall:

(1) make findings of fact and conclusions of law; and

(2) promptly issue to the board a proposal for a

decision as to the occurrence of the violation
, any recommended

license sanction,
and the amount of any proposed administrative

penalty.

SECTION 33. Section 801.456(a), Occupations Code, is

amended to read as follows:

(a) Based on the findings of fact, conclusions of law, and

proposal for a decision under Section 801.455(c), the board by

order may determine that:

(1) a violation has occurred and impose
a license

sanction,
[
an
] administrative penalty
, or both
; or

(2) a violation did not occur.

SECTION 34. Section 801.457(a), Occupations Code, is

amended to read as follows:

(a) Not later than the 30th day after the date the board's

order becomes final, the person shall:

(1) pay the administrative penalty;

(2) pay the penalty and file a petition for judicial

review contesting the
order
[
fact of the violation, the amount of

the penalty, or both
]; or

(3) without paying the penalty, file a petition for

judicial review contesting the
order
[
fact of the violation, the

amount of the penalty, or both
].

SECTION 35. Section 801.508, Occupations Code, is amended

to read as follows:

Sec. 801.508. CEASE AND DESIST ORDER.
The board or

executive director may issue a cease and desist order upon

determining that it is necessary to prevent a violation of this

chapter, or of a rule adopted or order issued by the board.

[
(a)

If it appears to the board that a person is engaging in

an act or practice that constitutes the practice of veterinary

medicine without a license or the practice of equine dentistry

without a license under this chapter, the board, after notice and

opportunity for a hearing, may issue a cease and desist order

prohibiting the person from engaging in the activity.

[
(b)

A violation of an order under this section constitutes

grounds for imposing an administrative penalty under Subchapter J.
]

SECTION 36. Subchapter K, Chapter 801, Occupations Code, is

amended by adding Section 801.510 to read as follows:

Sec.

801.510.

ISSUANCE OF EMERGENCY ORDERS. (a) Upon

determining that an emergency exists requiring immediate action to

protect the public health and safety, the board or executive

director may issue an emergency order to:

(1)

suspend or revoke a license or other authorization

issued under a program regulated by the board; or

(2)

halt operation of an unsafe veterinary medical

facility.

(b)

The board or executive director may issue an emergency

order with or without notice and hearing.

If an emergency order is

issued under this section without a hearing, the board shall set the

time and place for a hearing conducted by the State Office of

Administrative Hearings to affirm, modify, or set aside the

emergency order not later than the 17th day after the date the order

was issued. The order shall be affirmed to the extent that

reasonable cause existed to issue the order.

(c)

A proceeding under this section is a contested case

under Chapter 2001, Government Code.

SECTION 37. Chapter 801, Occupations Code, is amended by

designating Sections 801.601 through 801.604 as Subchapter M and

adding a subchapter heading to read as follows:

SUBCHAPTER M.

VETERINARY MEDICAL FACILITIES

Sec.

801.601.

REGISTRATION OF VETERINARY MEDICAL

FACILITIES REQUIRED. (a)

Veterinary medicine, including

veterinary medicine practiced remotely by electronic means, shall

be practiced only in or from a veterinary medical facility that is

registered with the board or that is exempted by rule from the

registration requirement.

Unless exempted by this section or by

board rule adopted pursuant to this section, every individual

facility must be registered with the board.

(b)

Subsection (a) does not apply to a facility maintained

or operated by the federal government.

(c)

A mobile facility affiliated with a registered

veterinary medical facility is exempt from separate registration if

identified in the application for registration filed pursuant to

this subchapter.

(d)

The board may by rule provide exemptions to the

registration requirement for facilities if it determines that

imposing or enforcing the requirement:

(1) is not cost-effective for the board;

(2)

is not feasible with current board resources or

standards; or

(3)

will not substantially benefit or protect

consumers.

Sec.

801.602.

REGISTRATION ELIGIBILITY AND APPLICATION.

(a)

To register a veterinary medical facility, the business entity

providing services at the facility shall submit the application

provided by the board and pay the applicable fee established by the

board pursuant to Section 801.154.

The application must be signed

by a person with authority to act on behalf of the entity.

(b)

The facility shall, in its application for

registration:

(1)

indicate the type of business entity that provides

services at the facility, and provide information regarding the

owners, partners, and operators of the entity, including a

management services organization that contracts with the facility,

as required by board rule; and

(2)

provide the names and license or registration

numbers of all persons who provide services at the facility and are

regulated by the board.

(c)

An application under this section shall require the

facility to designate a medical director. The designated medical

director must:

(1)

be licensed by the board as a veterinarian and

remain in good standing;

(2)

regularly practice veterinary medicine at or from

the facility; and

(3) co-sign the application for registration; and

(4)

agree to accept all correspondence from the board

on behalf of the facility.

(d)

A veterinary medical facility whose designated medical

director ceases to be affiliated with the facility shall designate

a new medical director within 30 days of the change.

(e)

The term of a registration issued under this section and

the process for renewal of a registration shall be provided by board

rule.

Sec.

801.603.

STANDARDS FOR OPERATION OF VETERINARY MEDICAL

FACILITIES. (a)

The board shall adopt and enforce rules relating

to standards of operation of veterinary medical facilities.

The

rules must include standards regarding:

(1) safety and sanitation;

(2)

storage and security of pharmaceuticals and

controlled substances;

(3) patient care;

(4)

retention of documentation, including medical

records, controlled substance logs, and employment records; and

(5)

compliance with other state laws related to health

and safety.

(b)

Rules adopted under Subsection (a) must distinguish

between categories of veterinary facilities, including mobile

facilities that are not affiliated with another registered

veterinary facility, to ensure that appropriate standards are

established for each category of facility.

Sec.

801.604.

SANCTIONS AND ADMINISTRATIVE PENALTIES.

The

owner or owners of a business entity that provides services at a

veterinary medical facility, or a management services organization

that provides services to a veterinary medical facility, shall be

subject to administrative penalties, license sanctions, or both,

if:

(1) the facility does not hold a current registration;

(2)

the facility violates a standard adopted pursuant

to Section 801.603;

(3)

facility personnel deny access to the board or its

agents to conduct an inspection or investigation; or

(4) the facility fails to comply with a board order.

SECTION 38. The following provisions of Chapter 801,

Occupations Code, are repealed:

(1) Section 801.206;

(2) Section 801.253(a) as amended by Acts 2011, 82nd

Leg., R.S., Ch. 411 (S.B. 811), Sec. 3;

(3) Section 801.307(a-1) as added by Acts 2019, 86th

Leg., R.S., Ch. 449 (S.B. 1947), Sec. 2;

(5) Section 801.459;

(6) Section 801.461; and

(7) Section 801.505.

SECTION 39. As soon as practicable after the effective date

of this Act, the State Board of Veterinary Medical Examiners shall

adopt the rules and procedures necessary to implement the

provisions of this Act other than those contained in Subchapter M,

Chapter 801, Occupations Code, as added by this Act.

SECTION 40. No later than March 1, 2027, the State Board of

Veterinary Medical Examiners shall adopt the rules and procedures

necessary to implement the provisions contained in Subchapter M,

Chapter 801, Occupations Code, as added by this Act.

SECTION 41. A veterinary medical facility shall register

with the board not later than September 1, 2027.

SECTION 42. (a) Except as provided by Subsection (b) of this

section, this Act takes effect September 1, 2025.

(b) Subchapter M, Chapter 801, Occupations Code, as added by

this Act, takes effect September 1, 2026.

______________________________

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 2155 passed the Senate on

April 8, 2025, by the following vote: Yeas 28, Nays 2;

May 22, 2025, Senate refused to concur in House amendments and

requested appointment of Conference Committee; May 23, 2025, House

granted request of the Senate; May 30, 2025, Senate adopted

Conference Committee Report by the following vote: Yeas 29,

Nays 2.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2155 passed the House, with

amendments, on May 21, 2025, by the following vote: Yeas 113,

Nays 26, two present not voting; May 23, 2025, House granted

request of the Senate for appointment of Conference Committee;

May 29, 2025, House adopted Conference Committee Report by the

following vote: Yeas 108, Nays 28, one present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor