Texas 2025 89th Regular

Texas Senate Bill SB2155 Senate Committee Report / Bill

Filed 03/31/2025

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                    By: Perry S.B. No. 2155
 (In the Senate - Filed March 10, 2025; March 24, 2025, read
 first time and referred to Committee on Water, Agriculture and
 Rural Affairs; March 31, 2025, reported favorably by the following
 vote:  Yeas 9, Nays 0; March 31, 2025, sent to printer.)
Click here to see the committee vote




 A BILL TO BE ENTITLED
 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 to
 add Subsection (6-b) 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.
 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.
 [(b)  Repealed by Acts 2003, 78th Leg., ch. 285, Sec.
 31(39).]
 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 to
 add 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.  Sections 801.158(a) and (c), Occupations Code,
 are 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.
 (c)  An action filed under this section must be filed in a
 district court in Travis County or any other county in which the
 department may hold a hearing. [Venue for an action brought under
 Subsection (b) is in a district court in:
 [(1)  Travis County; or
 [(2)  any county in which the board may hold a hearing.]
 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), 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.
 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 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
 to add Subsection (c-1) and to amend Subsection (d) 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.
 [(b)  Repealed by Acts 2005, 79th Leg., Ch. 27, Sec. 27(2),
 eff. September 1, 2005.
 [(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 801.502(b), Occupations Code, is
 amended to read as follows:
 (b)  Venue for an action brought under this section is in a
 district court in Travis County [Venue for an action under this
 section is in:
 [(1)  the county in which the person against whom the
 action is brought resides, if the person is an individual who
 resides in this state;
 [(2)  the county of the defendant's principal office in
 this state if the defendant is not an individual; or
 [(3)  Travis County, if the person:
 [(A)  is an individual who does not reside in this
 state; or
 [(B)  is an entity that does not have its
 principal office in this state].
 SECTION 36.  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 37.  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 38.  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 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.
 (c)  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 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 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. 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.
 Sec 801.604.  SANCTIONS AND ADMINISTRATIVE PENALTIES.  The
 owner or owners of a business entity that provides services at 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 39.  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 40.  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 41.  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 42.  A veterinary medical facility shall register
 with the board not later than September 1, 2027.
 SECTION 43.  (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.
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