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.