1-1     By:  Edwards (Senate Sponsor - Lindsay)               H.B. No. 2453
 1-2           (In the Senate - Received from the House April 23, 1999;
 1-3     April 26, 1999, read first time and referred to Committee on Health
 1-4     Services; May 12, 1999, reported favorably by the following vote:
 1-5     Yeas 4, Nays 0; May 12, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the authority of physicians and optometrists or
 1-9     therapeutic optometrists to form certain jointly owned entities.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter E, Medical Practice Act (Article
1-12     4495b, Vernon's Texas Civil Statutes), is amended by adding Section
1-13     5.12 to read as follows:
1-14           Sec. 5.12.  AUTHORITY TO FORM CERTAIN JOINTLY OWNED ENTITIES.
1-15     (a)  Except as provided by Section 3.07(c) of this Act, a physician
1-16     and an optometrist or therapeutic optometrist may organize, jointly
1-17     own, and manage a partnership under the Texas Revised Partnership
1-18     Act (Article 6132b-1.01 et seq., Vernon's Texas Civil Statutes), a
1-19     limited partnership under the Texas Revised Limited Partnership Act
1-20     (Article 6132a-1, Vernon's Texas Civil Statutes), a limited
1-21     liability company under the Texas Limited Liability Company Act
1-22     (Article 1528n, Vernon's Texas Civil Statutes), or any other legal
1-23     entity to:
1-24                 (1)  own real property, other physical facilities, or
1-25     equipment for the delivery of health care services or management;
1-26                 (2)  lease, rent, or otherwise acquire the use of real
1-27     property, other physical facilities, or equipment for the delivery
1-28     of health care services or management; or
1-29                 (3)  employ or otherwise use a person who is not a
1-30     physician, optometrist, or therapeutic optometrist for the delivery
1-31     of health care services or management.
1-32           (b)  Only a physician, optometrist, or therapeutic
1-33     optometrist may own an interest in an entity authorized under
1-34     Subsection (a)  of this section.  This subsection does not prohibit
1-35     an entity from making one or more payments to an owner's estate
1-36     following the owner's death under an agreement with the owner or as
1-37     otherwise authorized or required by law.
1-38           SECTION 2.  Article 5, Texas Optometry Act (Article 4552-5.01
1-39     et seq., Vernon's Texas Civil Statutes), is amended by adding
1-40     Section 5.22 to read as follows:
1-41           Sec. 5.22.  AUTHORITY TO FORM CERTAIN JOINTLY OWNED ENTITIES.
1-42     (a)  Except as provided by Section 5.13(b) or (c)  of this Act, an
1-43     optometrist or therapeutic optometrist and a physician may
1-44     organize, jointly own, and manage a partnership under the Texas
1-45     Revised Partnership Act (Article 6132b-1.01 et seq., Vernon's Texas
1-46     Civil Statutes), a limited partnership under the Texas Revised
1-47     Limited Partnership Act (Article 6132a-1, Vernon's Texas Civil
1-48     Statutes), a limited liability company under the Texas Limited
1-49     Liability Company Act (Article 1528n, Vernon's Texas Civil
1-50     Statutes), or any other legal entity to:
1-51                 (1)  own real property, other physical facilities, or
1-52     equipment for the delivery of health care services or management;
1-53                 (2)  lease, rent, or otherwise acquire the use of real
1-54     property, other physical facilities, or equipment for the delivery
1-55     of health care services or management; or
1-56                 (3)  employ or otherwise use a person who is not an
1-57     optometrist, therapeutic optometrist, or physician for the delivery
1-58     of health care services or management.
1-59           (b)  Only an optometrist, therapeutic optometrist, or
1-60     physician may have an ownership interest in an entity authorized
1-61     under Subsection (a) of this section.  This subsection does not
1-62     prohibit an entity from making one or more payments to an owner's
1-63     estate following the owner's death under an agreement with the
1-64     owner or as otherwise authorized or required by law.
 2-1           SECTION 3.  This Act takes effect September 1, 1999.
 2-2           SECTION 4.  The importance of this legislation and the
 2-3     crowded condition of the calendars in both houses create an
 2-4     emergency and an imperative public necessity that the
 2-5     constitutional rule requiring bills to be read on three several
 2-6     days in each house be suspended, and this rule is hereby suspended.
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