By Edwards                                            H.B. No. 2453
         76R7923 SMH-F                           
                                A BILL TO BE ENTITLED
 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.