1-1 AN ACT 1-2 relating to the authority of physicians and optometrists or 1-3 therapeutic optometrists to form certain jointly owned entities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter E, Medical Practice Act (Article 1-6 4495b, Vernon's Texas Civil Statutes), is amended by adding Section 1-7 5.12 to read as follows: 1-8 Sec. 5.12. AUTHORITY TO FORM CERTAIN JOINTLY OWNED ENTITIES. 1-9 (a) Except as provided by Section 3.07(c) of this Act, a physician 1-10 and an optometrist or therapeutic optometrist may organize, jointly 1-11 own, and manage a partnership under the Texas Revised Partnership 1-12 Act (Article 6132b-1.01 et seq., Vernon's Texas Civil Statutes), a 1-13 limited partnership under the Texas Revised Limited Partnership Act 1-14 (Article 6132a-1, Vernon's Texas Civil Statutes), a limited 1-15 liability company under the Texas Limited Liability Company Act 1-16 (Article 1528n, Vernon's Texas Civil Statutes), or any other legal 1-17 entity to: 1-18 (1) own real property, other physical facilities, or 1-19 equipment for the delivery of health care services or management; 1-20 (2) lease, rent, or otherwise acquire the use of real 1-21 property, other physical facilities, or equipment for the delivery 1-22 of health care services or management; or 1-23 (3) employ or otherwise use a person who is not a 1-24 physician, optometrist, or therapeutic optometrist for the delivery 2-1 of health care services or management. 2-2 (b) Only a physician, optometrist, or therapeutic 2-3 optometrist may own an interest in an entity authorized under 2-4 Subsection (a) of this section. This subsection does not prohibit 2-5 an entity from making one or more payments to an owner's estate 2-6 following the owner's death under an agreement with the owner or as 2-7 otherwise authorized or required by law. 2-8 SECTION 2. Article 5, Texas Optometry Act (Article 4552-5.01 2-9 et seq., Vernon's Texas Civil Statutes), is amended by adding 2-10 Section 5.22 to read as follows: 2-11 Sec. 5.22. AUTHORITY TO FORM CERTAIN JOINTLY OWNED ENTITIES. 2-12 (a) Except as provided by Section 5.13(b) or (c) of this Act, an 2-13 optometrist or therapeutic optometrist and a physician may 2-14 organize, jointly own, and manage a partnership under the Texas 2-15 Revised Partnership Act (Article 6132b-1.01 et seq., Vernon's Texas 2-16 Civil Statutes), a limited partnership under the Texas Revised 2-17 Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil 2-18 Statutes), a limited liability company under the Texas Limited 2-19 Liability Company Act (Article 1528n, Vernon's Texas Civil 2-20 Statutes), or any other legal entity to: 2-21 (1) own real property, other physical facilities, or 2-22 equipment for the delivery of health care services or management; 2-23 (2) lease, rent, or otherwise acquire the use of real 2-24 property, other physical facilities, or equipment for the delivery 2-25 of health care services or management; or 2-26 (3) employ or otherwise use a person who is not an 2-27 optometrist, therapeutic optometrist, or physician for the delivery 3-1 of health care services or management. 3-2 (b) Only an optometrist, therapeutic optometrist, or 3-3 physician may have an ownership interest in an entity authorized 3-4 under Subsection (a) of this section. This subsection does not 3-5 prohibit an entity from making one or more payments to an owner's 3-6 estate following the owner's death under an agreement with the 3-7 owner or as otherwise authorized or required by law. 3-8 SECTION 3. This Act takes effect September 1, 1999. 3-9 SECTION 4. The importance of this legislation and the 3-10 crowded condition of the calendars in both houses create an 3-11 emergency and an imperative public necessity that the 3-12 constitutional rule requiring bills to be read on three several 3-13 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2453 was passed by the House on April 22, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2453 was passed by the Senate on May 20, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor