LSL H.B. 1149 75(R) BILL ANALYSIS PUBLIC HEALTH H.B. 1149 By: Turner 3-12-97 Committee Report (Amended) BACKGROUND Professional associations in this state are governed by the Texas Professional Association Act. This law used to be interpreted as allowing only state licensed medical doctors to own professional associations. In 1991, H.B. 548 was enacted to also allow podiatrists to form professional associations. Since passage of that amendment, many professional associations coowned by podiatrists and doctors of medicine have been formed and registered with the Secretary of State in Texas. In May of 1996, the Texas State Board of Medical Examiners submitted a "Request for Opinion" to the Attorney General in regards to the Board's authority, if any, to promulgate rules regulating the co-ownership of professional associations by doctors of medicine and podiatrists. Although the opinion is still pending, it is the Board's view that that such co-ownership may be prohibited by other provisions of the Texas Professional Association Act. PURPOSE H.B. 1149 clarifies that a professional association may be co-owned by podiatrists and physicians. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2(B), Texas Professional Association Act (Article 1528f, Vernon's Texas Civil Statutes) by adding subsection (2) to allow doctors of medicine and osteopathy licensed by the Texas State Board of Medical Examiners and podiatrists licensed by the Texas State Board of Podiatric Medical Examiners to form jointly owned associations to perform services that fall within the scope of those practitioners. Makes conforming changes. SECTION 2. Emergency clause. Establishes that this Act takes effect upon passage. EXPLANATION OF AMENDMENTS Amendment #1: The amendment adds a new subsection (3) to Section 2(B), Texas Professional Association Act (Article 1528f, Vernon's Texas Civil Statutes), to provide that when doctors of medicine, osteopathy and podiatry form an association that is jointly owned by those practitioners, the authority of each of the practitioners is limited by the scope of practice of the respective practitioners and none can exercise control over the other's clinical authority granted by their respective licenses. The amendment also clarifies the regulatory authority of the Texas State Board of Medical Examiners and the Texas State Board of Podiatric Medical Examiners over their respective licenses.