1. (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. (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. (2) a hospital that is owned or operated by this state;

   3. (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:

      1. (A) has an organized medical staff or a process for credentialing physicians on its staff; and
      2. (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. (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.

2. (b) An entity described by Subsection (a) may differentiate between physicians based on a physician's maintenance of certification if:

   1. (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. (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).
3. (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.

4. (d) An authorization described by Subsection (c) may:

   1. (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. (2) subject to Subsection (e), establish terms applicable to the entity's differentiation, including:

      1. (A) appropriate grandfathering provisions; and
      2. (B) limiting the differentiation to certain medical specialties; and
   3. (3) be rescinded at any time by a vote of the voting physician members of the entity's organized medical staff.
5. (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.

Added by Acts 2017, 85th Leg., R.S., Ch. 1121 (S.B. 1148), Sec. 3, eff. January 1, 2018.