S.B. No. 1148 AN ACT relating to maintenance of certification by a physician or an applicant for a license to practice medicine in this state. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle F, Title 8, Insurance Code, is amended by adding Chapter 1461 to read as follows: CHAPTER 1461. DISCRIMINATION AGAINST PHYSICIAN BASED ON MAINTENANCE OF CERTIFICATION Sec. 1461.001. DEFINITIONS. In this chapter: (1) "Enrollee" means an individual who is eligible to receive health care services under a managed care plan. (2) "Maintenance of certification" has the meaning assigned by Section 151.002, Occupations Code. (3) "Managed care plan" means a health benefit plan under which health care services are provided to enrollees through contracts with physicians and that requires enrollees to use participating physicians or that provides a different level of coverage for enrollees who use participating physicians. The term includes a health benefit plan issued by: (A) a health maintenance organization; (B) a preferred provider benefit plan issuer; or (C) any other entity that issues a health benefit plan, including an insurance company. (4) "Participating physician" means a physician who has directly or indirectly contracted with a health benefit plan issuer to provide services to enrollees. (5) "Physician" means an individual licensed to practice medicine in this state. Sec. 1461.002. APPLICABILITY. (a) This chapter applies to a physician regardless of whether the physician is a participating physician. (b) This chapter applies to a person with whom a managed care plan issuer contracts to: (1) process or pay claims; (2) obtain the services of physicians to provide health care services to enrollees; or (3) issue verifications or preauthorizations. Sec. 1461.003. DISCRIMINATION BASED ON MAINTENANCE OF CERTIFICATION. (a) Except as provided by Subsection (b), a managed care plan issuer may not differentiate between physicians based on a physician's maintenance of certification in regard to: (1) paying the physician; (2) reimbursing the physician; or (3) directly or indirectly contracting with the physician to provide services to enrollees. (b) A managed care plan issuer may differentiate between physicians based on a physician's maintenance of certification only if the designation under law or certification or accreditation by a national certifying or accrediting organization of an entity described by Section 151.0515(a), Occupations Code, is contingent on the entity requiring a specific maintenance of certification by physicians seeking staff privileges or credentialing at the entity. SECTION 2. Section 151.002(a), Occupations Code, is amended by adding Subdivision (6-b) to read as follows: (6-b) "Maintenance of certification" means the satisfactory completion of periodic recertification requirements that are required for a physician to maintain certification after initial certification from: (A) a medical specialty member board of the American Board of Medical Specialties; (B) a medical specialty member board of the American Osteopathic Association Bureau of Osteopathic Specialists; (C) the American Board of Oral and Maxillofacial Surgery; or (D) any other certifying board that is recognized by the Texas Medical Board. SECTION 3. Subchapter B, Chapter 151, Occupations Code, is amended by adding Section 151.0515 to read as follows: Sec. 151.0515. DISCRIMINATION BASED ON MAINTENANCE OF CERTIFICATION. (a) Except as otherwise provided by this section, the following entities may not differentiate between physicians based on a physician's maintenance of certification: (1) a health facility that is licensed under Subtitle B, Title 4, Health and Safety Code, or a mental hospital that is licensed under Chapter 577, Health and Safety Code, if the facility or hospital has an organized medical staff or a process for credentialing physicians; (2) a hospital that is owned or operated by this state; (3) an institution or program that is owned, operated, or licensed by this state, including an institution or program that directly or indirectly receives state financial assistance, if the institution or program: (A) has an organized medical staff or a process for credentialing physicians on its staff; and (B) is not a medical school, as defined by Section 61.501, Education Code, or a comprehensive cancer center, as designated by the National Cancer Institute; or (4) an institution or program that is owned, operated, or licensed by a political subdivision of this state, if the institution or program has an organized medical staff or a process for credentialing physicians on its staff. (b) An entity described by Subsection (a) may differentiate between physicians based on a physician's maintenance of certification if: (1) the entity's designation under law or certification or accreditation by a national certifying or accrediting organization is contingent on the entity requiring a specific maintenance of certification by physicians seeking staff privileges or credentialing at the entity; and (2) the differentiation is limited to those physicians whose maintenance of certification is required for the entity's designation, certification, or accreditation as described by Subdivision (1). (c) An entity described by Subsection (a) may differentiate between physicians based on a physician's maintenance of certification if the voting physician members of the entity's organized medical staff vote to authorize the differentiation. (d) An authorization described by Subsection (c) may: (1) be made only by the voting physician members of the entity's organized medical staff and not by the entity's governing body, administration, or any other person; (2) subject to Subsection (e), establish terms applicable to the entity's differentiation, including: (A) appropriate grandfathering provisions; and (B) limiting the differentiation to certain medical specialties; and (3) be rescinded at any time by a vote of the voting physician members of the entity's organized medical staff. (e) Terms established under Subsection (d)(2) may not conflict with a maintenance of certification requirement applicable to the entity's designation under law or certification or accreditation by a national certifying or accrediting organization. SECTION 4. Section 155.003, Occupations Code, is amended by amending Subsection (d) and adding Subsection (d-1) to read as follows: (d) Except as provided by Subsection (d-1), in [In] addition to the other requirements prescribed by this subtitle, the board may require an applicant to comply with other requirements that the board considers appropriate. (d-1) The board may not require maintenance of certification by an applicant for the applicant to be eligible for a license under this chapter. SECTION 5. Section 156.001, Occupations Code, is amended by adding Subsection (f) to read as follows: (f) The board may not adopt a rule requiring maintenance of certification by a license holder for the license holder to be eligible for an initial or renewal registration permit. SECTION 6. This Act takes effect January 1, 2018. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1148 passed the Senate on April 27, 2017, by the following vote: Yeas 31, Nays 0; May 25, 2017, Senate refused to concur in House amendments and requested appointment of Conference Committee; May 26, 2017, House granted request of the Senate; May 28, 2017, Senate adopted Conference Committee Report by the following vote: Yeas 30, Nays 1. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1148 passed the House, with amendments, on May 24, 2017, by the following vote: Yeas 140, Nays 4, one present not voting; May 26, 2017, House granted request of the Senate for appointment of Conference Committee; May 28, 2017, House adopted Conference Committee Report by the following vote: Yeas 144, Nays 2, two present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor