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.