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                                  * * * * *