1-1 By: Barrientos S.B. No. 871 1-2 (In the Senate - Filed March 4, 1999; March 8, 1999, read 1-3 first time and referred to Committee on Health Services; 1-4 March 31, 1999, reported favorably by the following vote: Yeas 5, 1-5 Nays 0; March 31, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the co-ownership of certain entities by physicians and 1-9 podiatrists. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Section 6, Texas Uniform Partnership Act (Article 1-12 6132b, Vernon's Texas Civil Statutes), is amended by adding 1-13 Paragraph (4) to read as follows: 1-14 (4) Doctors of medicine and osteopathy licensed by the 1-15 Texas State Board of Medical Examiners and podiatrists licensed by 1-16 the Texas State Board of Podiatric Medical Examiners may form a 1-17 partnership under this Act to perform professional services that 1-18 fall within the scope of their respective practices. When doctors 1-19 of medicine, osteopathy, and podiatry form a partnership under this 1-20 Act, each partner's authority is limited by the scope of the 1-21 partner's practice, and no partner may exercise control over the 1-22 clinical authority granted by another partner's license through 1-23 agreements, bylaws, directives, financial incentives, or other 1-24 arrangements that would grant control over treatment decisions made 1-25 by another partner. The Texas State Board of Medical Examiners and 1-26 the Texas State Board of Podiatric Medical Examiners retain their 1-27 regulatory authority over the partners' licenses. 1-28 SECTION 2. Article 11.01, Texas Limited Liability Company 1-29 Act (Article 1528n, Vernon's Texas Civil Statutes), is amended by 1-30 adding Section C to read as follows: 1-31 C. Notwithstanding any other provision of this Act, doctors 1-32 of medicine and osteopathy licensed by the Texas State Board of 1-33 Medical Examiners and podiatrists licensed by the Texas State Board 1-34 of Podiatric Medical Examiners may organize a professional limited 1-35 liability company under this Act to perform professional services 1-36 that fall within the scope of their respective practices. When 1-37 doctors of medicine, osteopathy, and podiatry organize a 1-38 professional limited liability company under this Act, the 1-39 authority of each of the practitioners is limited by the scope of 1-40 the practitioner's practice, and no practitioner can exercise 1-41 control over the clinical authority granted by another 1-42 practitioner's license through agreements, bylaws, directives, 1-43 financial incentives, or other arrangements that would grant 1-44 control over treatment decisions made by another practitioner. The 1-45 Texas State Board of Medical Examiners and the Texas State Board of 1-46 Podiatric Medical Examiners retain their regulatory authority over 1-47 the practitioners' licenses. 1-48 SECTION 3. Article 2.01, Texas Non-Profit Corporation Act 1-49 (Article 1396-2.01, Vernon's Texas Civil Statutes), is amended by 1-50 adding Section C to read as follows: 1-51 C. Notwithstanding the other provisions of this Act or other 1-52 law, doctors of medicine and osteopathy licensed by the Texas State 1-53 Board of Medical Examiners and podiatrists licensed by the Texas 1-54 State Board of Podiatric Medical Examiners may form a nonprofit 1-55 corporation under this Act to perform professional services that 1-56 fall within the scope of their respective practices and that is 1-57 organized to carry out scientific research and research projects in 1-58 the public interest in the fields of medical sciences, medical 1-59 economics, public health, sociology, and related areas; support 1-60 medical education in medical schools through grants and 1-61 scholarships; improve and develop the capabilities of individuals 1-62 and institutions studying, teaching, and practicing medicine, 1-63 including podiatric medicine; deliver health care to the public; or 1-64 instruct the general public in medical science, public health, 2-1 hygiene, and related subjects that are useful to the individual and 2-2 beneficial to the community. When doctors of medicine, osteopathy, 2-3 and podiatry form a nonprofit corporation under this Act, the 2-4 authority of each of the practitioners is limited by the scope of 2-5 the respective practitioner's practice, and no practitioner can 2-6 exercise control over the clinical authority granted by another 2-7 practitioner's license through agreements, bylaws, directives, 2-8 financial incentives, or other arrangements that would grant 2-9 control over treatment decisions made by another practitioner. The 2-10 Texas State Board of Medical Examiners and the Texas State Board of 2-11 Podiatric Medical Examiners retain their regulatory authority over 2-12 the practitioners' licenses. 2-13 SECTION 4. The importance of this legislation and the 2-14 crowded condition of the calendars in both houses create an 2-15 emergency and an imperative public necessity that the 2-16 constitutional rule requiring bills to be read on three several 2-17 days in each house be suspended, and this rule is hereby suspended, 2-18 and that this Act take effect and be in force from and after its 2-19 passage, and it is so enacted. 2-20 * * * * *