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.