The Texas Board of Veterinary Medical Examiners (Board) proposes an amendment to §573.27, concerning Honesty, Integrity, and Fair Dealing.

The Board recently received a Proposal for Decision from the State Office of Administrative Hearings in which an Administrative Law Judge interpreted the current version of §573.27 to require intent for a violation, holding that a veterinarian could not be considered in violation of honesty, integrity and fair dealing when the veterinarian's staff charged clients for services that the veterinarian did not perform, as long as there was no evidence to prove that the veterinarian acted intentionally in charging for the services not performed. The Board has previously interpreted §573.27 as holding a veterinarian responsible for the accuracy of their charges to clients for time, services rendered, facilities, appliances and drugs, if the improper charges resulted from the veterinarian acting either intentionally, or recklessly or with gross negligence by ignoring red flags that would have made it obvious to a reasonable person that the charges were incorrect. This standard mirrors that used in civil fraud, where the defendant is equally liable whether the action in question was either intentional, or conducted with recklessness or gross negligence. The Board intends the proposed amendment to clarify the rule and prevent future misinterpretation.

Nicole Oria, Executive Director, has determined that for each year of the first five years that the rule is in effect, there will be no impact on revenue to either state or local government as a result of the proposed rule. Ms. Oria has also determined that there will be no increase or reduction in costs to either state or local government as a result of enforcing or administering the rule as proposed. Ms. Oria has further determined that the amendment to the rule will have no impact on local employment.

Ms. Oria has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be to clarify that a veterinarian is responsible for the accuracy of charges and statements to clients in regard to time, services rendered, facilities, appliances and drugs, regardless of whether the improper charges resulted from the veterinarian acting either intentionally, or recklessly or with gross negligence.

Ms. Oria has determined that there will not be any economic cost to persons required to comply with the amended rule. There is thus no adverse impact expected for small or micro businesses, and no anticipated difference in cost of compliance between small and large businesses.

The Texas Board of Veterinary Medical Examiners invites comments on the proposed amendment to the rule from any member of the public. A written statement should be mailed or delivered to Loris Jones, Texas Board of Veterinary Medical Examiners, 333 Guadalupe, Ste. 3-810, Austin, Texas 78701-3942, by facsimile (FAX) to (512) 305-7574, or by e-mail vet.board@tbvme.state.tx.us. Comments will be accepted for 30 days following publication in the Texas Register. Comments must be received within 30 days after publication of this proposal in order to be considered.

The amendment is proposed under the authority of the Veterinary Licensing Act, Occupations Code, §801.151(a), which states that the Board may adopt rules necessary to administer the chapter; §801.151(b), which states that the Board may adopt rules of professional conduct appropriate to establish and maintain a high standard of integrity, skills, and practice in the veterinary medicine profession; and §801.151(c), which states that the board shall adopt rules to protect the public.

No other statutes, articles or codes are affected by the proposal.