1-1     By:  Turner of Harris (Senate Sponsor - Barrientos)   H.B. No. 1149

 1-2           (In the Senate - Received from the House April 3, 1997;

 1-3     April 8, 1997, read first time and referred to Committee on

 1-4     Economic Development; April 30, 1997, reported favorably by the

 1-5     following vote:  Yeas 11, Nays 0; April 30, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to formation of certain professional associations.

 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-10           SECTION 1.  Section 2(B), Texas Professional Association Act

1-11     (Article 1528f, Vernon's Texas Civil Statutes), is amended to read

1-12     as follows:

1-13           (B)  Licenses.  (1)  Except as provided by Subdivision (2) of

1-14     this subsection, all [All] members of the association shall be

1-15     licensed to perform  the type of professional service for which the

1-16     association is formed.

1-17                 (2)  Doctors of medicine and osteopathy licensed by the

1-18     Texas State Board of Medical Examiners and podiatrists licensed by

1-19     the Texas State Board of Podiatric Medical Examiners may form an

1-20     association that is jointly owned by those practitioners to perform

1-21     a professional service that falls within the scope of practice of

1-22     those practitioners.

1-23                 (3)  When doctors of medicine, osteopathy, and podiatry

1-24     form an association that is jointly owned by those practitioners,

1-25     the authority of each of the practitioners is limited by the scope

1-26     of practice of the respective practitioners and none can exercise

1-27     control over the other's clinical authority granted by their

1-28     respective licenses, either through agreements, bylaws, directives,

1-29     financial incentives, or other arrangements that would assert

1-30     control over treatment decisions made by the practitioner.  The

1-31     Texas State Board of Medical Examiners and the Texas State Board of

1-32     Podiatric Medical Examiners continue to exercise regulatory

1-33     authority over their respective licenses.

1-34           SECTION 2.  The importance of this legislation and the

1-35     crowded condition of the calendars in both houses create an

1-36     emergency and an imperative public necessity that the

1-37     constitutional rule requiring bills to be read on three several

1-38     days in each house be suspended, and this rule is hereby suspended,

1-39     and that this Act take effect and be in force from and after its

1-40     passage, and it is so enacted.

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