HBA-SEB S.B. 871 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 871 By: Barrientos Public Health 4/22/1999 Engrossed BACKGROUND AND PURPOSE Currently, health care services are often provided to consumers through managed care entities, which include networks of providers such as physicians and podiatrists. In 1997, the 75th Legislature passed a bill authorizing physicians and podiatrists to co-own such networks, if they are organized as a professional association. However, the law does not permit such co-ownership if the network is organized as a limited liability company, a nonprofit corporation, or a partnership. S.B. 871 authorizes 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 a partnership, limited liability company, or nonprofit corporation. 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 Section 6, Article 6132b, V.T.C.S. (Texas Uniform Partnership Act), by adding Paragraph (4), to authorize doctors of medicine and osteopathy licensed by the Texas State Board of Medical Examiners (TSBME) and podiatrists licensed by the Texas State Board of Podiatric Medical Examiners (TSBPME) to form a partnership to perform professional services that fall within the scope of their respective practices. Establishes that each partner's authority is limited by the scope of the partner's practice. Prohibits a partner from exercising control over the clinical authority granted by another partner's license through a specific arrangement that would grant control over treatment decisions made by another partner. Provides that TSBME and TSBPME retain their regulatory authority over the partners' licenses. SECTION 2. Amends Article 11.01, Article 1528n, V.T.C.S. (Texas Limited Liability Company Act), by adding Section C, to authorize licensed doctors of medicine and osteopathy and podiatrists to organize a professional limited liability company to perform professional services that fall within the scope of their respective practices, notwithstanding any other provision of this Act. Provides that the authority of each of the practitioners is limited by the scope of the practitioner's practice. Prohibits a practitioner from exercising control over the clinical authority granted by another practitioner's license through a specific arrangement that would grant control over treatment decisions made by another practitioner. Establishes that TSBME and TSBPME retain their regulatory authority over the practitioners' licenses. SECTION 3. Amends Article 2.01, Article 1396-2.01, V.T.C.S. (Texas Non-Profit Corporation Act), by adding Section C, to authorize licensed doctors of medicine and osteopathy and podiatrists to form a nonprofit corporation to perform professional services that fall within the scope of their respective practices and that is organized to carry out research, instruction, medical care, or other services that are useful to the individual and beneficial to the community, notwithstanding the other provisions of this Act or other law. Provides that the authority of the practitioners is limited by the scope of the practitioner's practice. Prohibits a practitioner from exercising control over the clinical authority granted by another practitioner's license through a specific arrangement. Provides that TSBME and TSBPE retain their regulatory authority over the practitioner's licenses. SECTION 4.Emergency clause. Effective date: upon passage.