By:  Armbrister                                        S.B. No. 941
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the authority of mental health professionals to form
 1-2     certain jointly owned entities.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 4, The Texas Professional Corporation Act
 1-5     (Article 1528e, Vernon's Texas Civil Statutes), is amended to read
 1-6     as follows:
 1-7           Sec. 4.  ARTICLES OF INCORPORATION.  (a)  One or more
 1-8     individuals[,] may incorporate a professional corporation by filing
 1-9     the original and a copy of Articles of Incorporation with the
1-10     Secretary of State.  One or more individuals may incorporate a
1-11     professional legal corporation by filing the original and a copy of
1-12     Articles of Incorporation with the Secretary of State.  Except as
1-13     provided by Subsection (b) of this section, no [No] professional
1-14     corporation organized under this Act shall render more than one
1-15     kind of professional service.  In addition to other provisions
1-16     required or permitted by law, the Articles of Incorporation shall
1-17     set forth:
1-18                 (1) [(a)]  A statement that the corporation is a
1-19     professional corporation; and
1-20                 (2) [(b)]  A statement of the [one specific kind of]
1-21     professional service to be rendered by the corporation.
1-22           (b)  Professionals, other than physicians, engaged in related
1-23     mental health fields such as psychology, clinical social work,
1-24     licensed professional counseling, and licensed marriage and family
 2-1     therapy may form a professional corporation under this Act to
 2-2     perform professional services that fall within the scope of
 2-3     practice of those practitioners.  When professionals engaged in
 2-4     related mental health fields form a corporation under this Act, the
 2-5     authority of each of the practitioners is limited by the scope of
 2-6     practice of the respective practitioner, and none can exercise
 2-7     control over the others' clinical authority granted by their
 2-8     respective licenses, whether through agreements, bylaws,
 2-9     directives, financial incentives, or other arrangements that would
2-10     assert control over treatment decisions made by a practitioner.
2-11     The state agencies exercising regulatory control over professions
2-12     to which this subsection applies continue to exercise regulatory
2-13     authority over the respective licenses of the professionals.
2-14           SECTION 2.  Subsection (B), Section 2, Texas Professional
2-15     Association Act (Article 1528f, Vernon's Texas Civil Statutes), is
2-16     amended to read as follows:
2-17           (B)  Licenses.  (1)  Except as provided by [Subdivision (2)
2-18     of] this subsection, all members of the association shall be
2-19     licensed to perform the type of professional service for which the
2-20     association is formed.
2-21                 (2)  Doctors of medicine and osteopathy licensed by the
2-22     Texas State Board of Medical Examiners and podiatrists licensed by
2-23     the Texas State Board of Podiatric Medical Examiners may form an
2-24     association that is jointly owned by those practitioners to perform
2-25     a professional service that falls within the scope of practice of
2-26     those practitioners.
 3-1                 (3)  Professionals, other than physicians, engaged in
 3-2     related mental health fields such as psychology, clinical social
 3-3     work, licensed professional counseling, and licensed marriage and
 3-4     family therapy may form an association that is jointly owned by
 3-5     those practitioners to perform professional services that fall
 3-6     within the scope of practice of those practitioners.
 3-7                 (4)  When doctors of medicine, osteopathy, and podiatry
 3-8     or mental health professionals form an association that is jointly
 3-9     owned by those practitioners, the authority of each of the
3-10     practitioners is limited by the scope of practice of the respective
3-11     practitioners and none can exercise control over the other's
3-12     clinical authority granted by their respective licenses, either
3-13     through agreements, bylaws, directives, financial incentives, or
3-14     other arrangements that would assert control over treatment
3-15     decisions made by the practitioner.  The state agencies exercising
3-16     regulatory control over professions to which this subdivision
3-17     applies [Texas State Board of Medical Examiners and the Texas State
3-18     Board of Podiatric Medical Examiners] continue to exercise
3-19     regulatory authority over their respective licenses.
3-20           SECTION 3.  Subsection A, Article 11.01, Texas Limited
3-21     Liability Company Act (Article 1528n, Vernon's Texas Civil
3-22     Statutes), is amended to read as follows:
3-23           A.  (1)  One or more persons may organize a professional
3-24     limited liability company by filing articles of organization with
3-25     the Secretary of State in accordance with Part Three of this Act.
3-26     In addition to other provisions required or permitted by law, the
 4-1     articles of organization of a professional limited liability
 4-2     company must include a statement:
 4-3                       (a)  that the limited liability company is a
 4-4     professional limited liability company; and
 4-5                       (b)  describing the [one] specific kind of
 4-6     professional service to be rendered by the limited liability
 4-7     company.
 4-8                 (2)  Except as provided by Subdivision (3) of this
 4-9     subsection, a [A] professional limited liability company:
4-10                       (a)  may be organized under this Act only for the
4-11     purpose of rendering one specific type of professional service and
4-12     ancillary services; and
4-13                       (b)  [.  A professional limited liability company
4-14     organized under this Act] may not render more than one kind of
4-15     professional service.
4-16                 (3)  Professionals, other than physicians, engaged in
4-17     related mental health fields such as psychology, clinical social
4-18     work, licensed professional counseling, and licensed marriage and
4-19     family therapy may organize a professional limited liability
4-20     company that is jointly owned by those practitioners to perform a
4-21     professional service that falls within the scope of practice of
4-22     those practitioners.  When mental health professionals organize a
4-23     professional limited liability company that is jointly owned by
4-24     those practitioners, the authority of each of the practitioners is
4-25     limited by the scope of practice of the respective practitioner,
4-26     and none can exercise control over the others' clinical authority
 5-1     granted by their respective licenses, whether through agreements,
 5-2     bylaws, directives, financial incentives, or other arrangements
 5-3     that would assert control over treatment decisions made by a
 5-4     practitioner.  The state agencies exercising regulatory control
 5-5     over professions to which this subdivision applies continue to
 5-6     exercise regulatory authority over their respective licenses.
 5-7           SECTION 4.  The importance of this legislation and the
 5-8     crowded condition of the calendars in both houses create an
 5-9     emergency and an imperative public necessity that the
5-10     constitutional rule requiring bills to be read on three several
5-11     days in each house be suspended, and this rule is hereby suspended,
5-12     and that this Act take effect and be in force from and after its
5-13     passage, and it is so enacted.