HBA-NMO H.B. 1491 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1491
By: Hochberg
Public Health
3/15/1999
Introduced



BACKGROUND AND PURPOSE 

The Internal Revenue Service (IRS) has ruled that medical school faculty
physicians must be treated as employees for federal income tax purposes.
However current state law prohibits the corporate practice of medicine, in
effect prohibiting private medical schools from employing faculty
physicians.  This situation presents a dilemma for the Baylor College of
Medicine, the only private medical school in Texas.  H.B. 1491 authorizes
an accredited private medical school to employ its faculty physicians for
clinical practice activities. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 4495b, V.T.C.S. (Subchapter E, Medical Practice
Act), by adding Section 5.12, as follows: 

Sec. 5.12.  EMPLOYMENT OF PHYSICIANS BY PRIVATE MEDICAL SCHOOL. Authorizes
a private medical school accredited by the Liaison Committee on Medical
Education, in fulfilling its mission, to employ or contract for the
services of physicians to provide medical services, and retain all or part
of the professional income generated by a physician providing medical
services under this section. 

SECTION 2.Emergency clause.
  Effective date: upon passage.