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A BILL TO BE ENTITLED
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AN ACT
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relating to covenants not to compete for certain psychology or |
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counseling professions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.50, Business & Commerce Code, is |
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amended by amending Subsection (a) and adding Subsection (b-1) to |
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read as follows: |
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(a) Notwithstanding Section 15.05 of this code, and subject |
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to any applicable provision of Subsection (b) or (b-1), a covenant |
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not to compete is enforceable if it is ancillary to or part of an |
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otherwise enforceable agreement at the time the agreement is made |
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to the extent that it contains limitations as to time, geographical |
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area, and scope of activity to be restrained that are reasonable and |
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do not impose a greater restraint than is necessary to protect the |
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goodwill or other business interest of the promisee. |
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(b-1) A covenant not to compete relating to the practice of |
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psychology or other counseling profession is enforceable against a |
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person licensed under Subtitle I, Title 3, Occupations Code, if the |
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covenant complies with the following requirements: |
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(1) the covenant must: |
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(A) not deny the person access to a list of the |
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person's clients or patients who have been provided services within |
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one year of termination of the contract or employment; |
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(B) provide access to client or patient records |
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upon authorization of the client or patient and any copies of client |
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or patient records for a reasonable fee as established by the |
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appropriate licensing or regulatory authority; and |
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(C) provide that any access to a list of clients |
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or patients or to clients' or patients' records after termination of |
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the contract or employment shall not require the list or records to |
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be provided in a format different than that by which the records are |
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maintained except by mutual consent of the parties to the contract; |
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(2) the covenant must provide for a buyout of the |
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covenant by the person at a reasonable price or, at the option of |
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either party, as determined by a mutually agreed upon arbitrator |
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or, in the case of an inability to agree, an arbitrator of the court |
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whose decision shall be binding on the parties; and |
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(3) the covenant must provide that the person will not |
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be prohibited from providing continuing services to a specific |
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client or patient during the course of an acute event even after the |
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contract or employment has been terminated. |
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SECTION 2. This Act applies only to an agreement entered |
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into on or after the effective date of this Act. An agreement |
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entered into before the effective date of this Act is governed by |
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the law in effect at the time the agreement was entered into, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |