By: Barrientos S.B. No. 871
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the co-ownership of certain entities by physicians and
1-2 podiatrists.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 6, Texas Uniform Partnership Act (Article
1-5 6132b, Vernon's Texas Civil Statutes), is amended by adding
1-6 Paragraph (4) to read as follows:
1-7 (4) Doctors of medicine and osteopathy licensed by the
1-8 Texas State Board of Medical Examiners and podiatrists licensed by
1-9 the Texas State Board of Podiatric Medical Examiners may form a
1-10 partnership under this Act to perform professional services that
1-11 fall within the scope of their respective practices. When doctors
1-12 of medicine, osteopathy, and podiatry form a partnership under this
1-13 Act, each partner's authority is limited by the scope of the
1-14 partner's practice, and no partner may exercise control over the
1-15 clinical authority granted by another partner's license through
1-16 agreements, bylaws, directives, financial incentives, or other
1-17 arrangements that would grant control over treatment decisions made
1-18 by another partner. The Texas State Board of Medical Examiners and
1-19 the Texas State Board of Podiatric Medical Examiners retain their
1-20 regulatory authority over the partners' licenses.
1-21 SECTION 2. Article 11.01, Texas Limited Liability Company
1-22 Act (Article 1528n, Vernon's Texas Civil Statutes), is amended by
1-23 adding Section C to read as follows:
1-24 C. Notwithstanding any other provision of this Act, doctors
2-1 of medicine and osteopathy licensed by the Texas State Board of
2-2 Medical Examiners and podiatrists licensed by the Texas State Board
2-3 of Podiatric Medical Examiners may organize a professional limited
2-4 liability company under this Act to perform professional services
2-5 that fall within the scope of their respective practices. When
2-6 doctors of medicine, osteopathy, and podiatry organize a
2-7 professional limited liability company under this Act, the
2-8 authority of each of the practitioners is limited by the scope of
2-9 the practitioner's practice, and no practitioner can exercise
2-10 control over the clinical authority granted by another
2-11 practitioner's license through agreements, bylaws, directives,
2-12 financial incentives, or other arrangements that would grant
2-13 control over treatment decisions made by another practitioner. The
2-14 Texas State Board of Medical Examiners and the Texas State Board of
2-15 Podiatric Medical Examiners retain their regulatory authority over
2-16 the practitioners' licenses.
2-17 SECTION 3. Article 2.01, Texas Non-Profit Corporation Act
2-18 (Article 1396-2.01, Vernon's Texas Civil Statutes), is amended by
2-19 adding Section C to read as follows:
2-20 C. Notwithstanding the other provisions of this Act or other
2-21 law, doctors of medicine and osteopathy licensed by the Texas State
2-22 Board of Medical Examiners and podiatrists licensed by the Texas
2-23 State Board of Podiatric Medical Examiners may form a nonprofit
2-24 corporation under this Act to perform professional services that
2-25 fall within the scope of their respective practices and that is
2-26 organized to carry out scientific research and research projects in
3-1 the public interest in the fields of medical sciences, medical
3-2 economics, public health, sociology, and related areas; support
3-3 medical education in medical schools through grants and
3-4 scholarships; improve and develop the capabilities of individuals
3-5 and institutions studying, teaching, and practicing medicine,
3-6 including podiatric medicine; deliver health care to the public; or
3-7 instruct the general public in medical science, public health,
3-8 hygiene, and related subjects that are useful to the individual and
3-9 beneficial to the community. When doctors of medicine, osteopathy,
3-10 and podiatry form a nonprofit corporation under this Act, the
3-11 authority of each of the practitioners is limited by the scope of
3-12 the respective practitioner's practice, and no practitioner can
3-13 exercise control over the clinical authority granted by another
3-14 practitioner's license through agreements, bylaws, directives,
3-15 financial incentives, or other arrangements that would grant
3-16 control over treatment decisions made by another practitioner. The
3-17 Texas State Board of Medical Examiners and the Texas State Board of
3-18 Podiatric Medical Examiners retain their regulatory authority over
3-19 the practitioners' licenses.
3-20 SECTION 4. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended,
3-25 and that this Act take effect and be in force from and after its
3-26 passage, and it is so enacted.