HBA-NMO H.B. 1572 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1572 By: Turner, Sylvester Public Health 3/14/1999 Introduced BACKGROUND AND PURPOSE Currently, managed care entities often consist of networks of health care providers. The 75th Texas Legislature enacted legislation authorizing physicians and podiatrists to co-own such a network if organized as a professional association. However, the law does not permit such co-ownership of a network that is organized as a limited liability company, a non-profit corporation, or a partnership. H.B. 1572 authorizes physicians and podiatrists to organize, manage, and co-own limited liability companies, non-profit corporations, and partnerships for the purpose of providing professional health care services. 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 Subsection A, Article 11.01, Article 1528n, V.T.C.S. (Texas Limited Liability Company Act), to authorize doctors of medicine and osteopathy licensed by the Texas State Board of Medical Examiners (board of medical examiners) and podiatrists licensed by the Texas State Board of Podiatric Medical Examiners (board of podiatric medical examiners) to organize a professional limited liability company that is jointly owned by those practitioners to perform a professional service that falls within the scope of their practice. Provides certain limitations to the authority of each practitioner. Provides that the board of medical examiners and the board of podiatric medical examiners continue to exercise regulatory authority over their respective licenses. Makes conforming changes. SECTION 2. Amends Article 2.01, Article 1396-2.01, V.T.C.S. (Texas Non-Profit Corporation Act), by amending Subsection B and adding Subsections C and D, as follows: B. Makes conforming changes. C. Authorizes doctors of medicine and osteopathy licensed by the board of medical examiners and podiatrists licensed by the board of podiatric medical examiners to organize a non-profit corporation that is jointly owned, managed, and controlled by those practitioners to perform certain professional services that falls within their scope of practice. D. Provides certain limitations to the authority of each practitioner who is a joint owner of a non-profit corporation. Provides that board of medical examiners and the board of podiatric medical examiners continue to exercise regulatory authority over their respective licenses. SECTION 3. Amends Section 2.02, Article 6132b-2.02, V.T.C.S. (Texas Revised Partnership Act), by adding Subsection (e), to authorize doctors of medicine and osteopathy licensed by the board of medical examiners and podiatrists licensed by the board of podiatric medical examiners to create a partnership that is jointly owned by those practitioners to perform a professional service that falls within the scope of their practice. Provides certain limitations to the authority of each practitioner. Provides that the board of medical examiners and the board of podiatric medical examiners continue to exercise regulatory authority over their respective licenses. SECTION 4.Emergency clause. Effective date: upon passage.