SRC-JXG S.B. 941 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 941
76R7301 SMH-DBy: Armbrister
Health Services
3/28/1999
As Filed


DIGEST 

Currently, Article 1528n, V.T.C.S., prohibits persons holding different
licenses from forming a limited liability company. Specifically, this
statute provides that a professional limited liability company organized
under this Act may not render more than one kind or professional service. A
similar restraint is found in Article 1528e, V.T.C.S., which authorizes a
professional corporation to be organized under this Act only for the
purpose of rendering one specific type of professional service and services
ancillary thereto. Article 1528f, V.T.C.S., has a general requirement that
all members of an association be licensed to perform the type of
professional service for which the association was formed, but also allows
doctors of medicine and osteopathy and podiatrists to form a jointly-owned
association to perform a professional service in line with their scope of
practice. S.B. 941 would provide an exception to allow multidisciplinary
groups of mental health providers to form a jointly owned association or
incorporate to perform a professional service in line with their scope of
practice similar to the exception granted to doctors of medicine and
osteopathy and podiatrists. 

PURPOSE

As proposed, S.B. 941 sets forth the authority of mental health providers
to form certain jointly owned entities. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 4, Article 1528e, V.T.C.S., (The Texas
Professional Corporation Act), to provide that no professional corporation
organized under this Act shall render more than one kind of professional
service, except as provided by Subsection (b). Authorizes professionals
engaged in related mental health fields such as psychiatry, psychology,
clinical social work, licensed professional counseling, and licensed
marriage and family therapy, to form a professional corporation under this
Act to perform professional services that fall within the scope of practice
of those practitioners. Provides that 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 either through agreements,
bylaws, directives, financial incentives, or other arrangements that would
assert control over treatment decisions made by the practitioner, when
professionals engaged in related mental health fields form a corporation
under this Act. Provides that the state agencies exercising regulatory
control over professions to which this subsection applies continue to
exercise regulatory authority over the respective licenses of the
professional. Makes conforming changes. 

SECTION 2. Amends Section 2(B), Article 1528f, V.T.C.S., (The Texas
Professional Association Act), to authorize professionals engaged in
related mental health fields such as psychiatry, psychology, clinical
social work, licensed professional counseling, and licensed marriage and
family therapy to form an association that is jointly owned by those
practitioners to perform professional services that fall within the scope
of practice of those practitioners. Provides that the authority of each of
the practitioners is limited by the scope of practice of the respective
practitioners and one can exercise control over the other's clinical
authority granted by their respective licenses, either through agreements,
bylaws, directives, financial incentives, or other arrangements that would
assert  control over treatment decisions made by the practitioner, when
doctors of medicine, osteopathy, and podiatry or mental health
professionals form an association that is jointly owned by those
pracitioners. Provides that the state agencies exercising regulatory
control over professions to which this subdivision applies continue to
exercise regulatory authority over their respective licenses. Deletes text
regarding the Texas State Board of Medical Examiners and Texas State Board
of Podiatric Medical Examiners. Makes conforming changes. 

SECTION 3. Amends Article 11.01A, Article 1528n, V.T.C.S., (Texas Limited
Liability Company Act), to require the articles of organization of a
professional limited liability company to include a statement, except as
provided by Subdivision (3) of this subsection. Authorizes professionals
engaged in related mental health fields such as psychiatry, psychology,
clinical social work, licensed professional counseling, and licensed
marriage and family therapy 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 practice of those
practitioners. Provides that 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, either through agreements, bylaws, directives,
financial incentives, or other arrangements that would assert control over
treatment decisions made by the practitioners, when mental health
professionals organize a professional limited liability company that is
jointly owned by those practitioners. Provides that the state agencies
exercising regulatory control over professions to which this subdivision
applies continue to exercise regulatory authority over their respective
licenses. Deletes text prohibiting a professional limited liability company
from rendering more than one kind of service. Makes conforming and
nonsubstantive changes. 

SECTION  4. Emergency clause.
            Effective date: upon passage.