By Armbrister                                          S.B. No. 941
         76R7301 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of mental health providers to form
 1-3     certain jointly owned entities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 4, The Texas Professional Corporation Act
 1-6     (Article 1528e, Vernon's Texas Civil Statutes), is amended to read
 1-7     as follows:
 1-8           Sec. 4.  ARTICLES OF INCORPORATION.  (a)  One or more
 1-9     individuals[,] may incorporate a professional corporation by filing
1-10     the original and a copy of Articles of Incorporation with the
1-11     Secretary of State.  One or more individuals may incorporate a
1-12     professional legal corporation by filing the original and a copy of
1-13     Articles of Incorporation with the Secretary of State.  Except as
1-14     provided by Subsection (b), no [No] professional corporation
1-15     organized under this Act shall render more than one kind of
1-16     professional service. In addition to other provisions required or
1-17     permitted by law, the Articles of Incorporation shall 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 engaged in related mental health fields
1-23     such as psychiatry, psychology, clinical social work, licensed
1-24     professional counseling, and licensed marriage and family therapy
 2-1     may form a professional corporation under this Act to perform
 2-2     professional services that fall within the scope of practice of
 2-3     those practitioners.  When professionals engaged in related mental
 2-4     health fields form a corporation under this Act, the authority of
 2-5     each of the practitioners is limited by the scope of practice of
 2-6     the respective practitioners and none can exercise control over the
 2-7     other's clinical authority granted by their respective licenses
 2-8     either through agreements, bylaws, directives, financial
 2-9     incentives, or other arrangements that would assert control over
2-10     treatment decisions made by the practitioner.  The state agencies
2-11     exercising regulatory control over professions to which this
2-12     subsection applies continue to exercise regulatory authority over
2-13     the respective licenses of the professional.
2-14           SECTION 2.  Section 2(B), Texas Professional Association Act
2-15     (Article 1528f, Vernon's Texas Civil Statutes), is amended to read
2-16     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.
2-27                 (3)  Professionals engaged in related mental health
 3-1     fields such as psychiatry, psychology, clinical social work,
 3-2     licensed professional counseling, and licensed marriage and family
 3-3     therapy may form an association that is jointly owned by those
 3-4     practitioners to perform professional services that fall within the
 3-5     scope of practice of those practitioners.
 3-6                 (4)  When doctors of medicine, osteopathy, and podiatry
 3-7     or mental health professionals form an association that is jointly
 3-8     owned by those practitioners, the authority of each of the
 3-9     practitioners is limited by the scope of practice of the respective
3-10     practitioners and none can exercise control over the other's
3-11     clinical authority granted by their respective licenses, either
3-12     through agreements, bylaws, directives, financial incentives, or
3-13     other arrangements that would assert control over treatment
3-14     decisions made by the practitioner.  The state agencies exercising
3-15     regulatory control over professions to which this subdivision
3-16     applies [Texas State Board of Medical Examiners and the Texas State
3-17     Board of Podiatric Medical Examiners] continue to exercise
3-18     regulatory authority over their respective licenses.
3-19           SECTION 3.  Subsection A, Article 11.01, Texas Limited
3-20     Liability Company Act (Article 1528n, Vernon's Texas Civil
3-21     Statutes), is amended to read as follows:
3-22           A.  (1)  One or more persons may organize a professional
3-23     limited liability company by filing articles of organization with
3-24     the Secretary of State in accordance with Part Three of this Act.
3-25     In addition to other provisions required or permitted by law, the
3-26     articles of organization of a professional limited liability
3-27     company must include a statement:
 4-1                       (a)  that the limited liability company is a
 4-2     professional limited liability company; and
 4-3                       (b)  describing the [one] specific kind of
 4-4     professional service to be rendered by the limited liability
 4-5     company.
 4-6                 (2)  Except as provided by Subdivision (3) of this
 4-7     subsection, a [A] professional limited liability company:
 4-8                       (a)  may be organized under this Act only for the
 4-9     purpose of rendering one specific type of professional service and
4-10     ancillary services; and
4-11                       (b)  [.  A professional limited liability company
4-12     organized under this Act] may not render more than one kind of
4-13     professional service.
4-14                 (3)  Professionals engaged in related mental health
4-15     fields such as psychiatry, psychology, clinical social work,
4-16     licensed professional counseling, and licensed marriage and family
4-17     therapy may organize a professional limited liability company that
4-18     is jointly owned by those practitioners to perform a professional
4-19     service that falls within the scope of practice of those
4-20     practitioners.  When mental health professionals organize a
4-21     professional limited liability company that is jointly owned by
4-22     those practitioners, the authority of each of the practitioners is
4-23     limited by the scope of practice of the respective practitioners
4-24     and none can exercise control over the other's clinical authority
4-25     granted by their respective licenses, either through agreements,
4-26     bylaws, directives, financial incentives, or other arrangements
4-27     that would assert control over treatment decisions made by the
 5-1     practitioner.  The state agencies exercising regulatory control
 5-2     over professions to which this subdivision applies continue to
 5-3     exercise regulatory authority over their respective licenses.
 5-4           SECTION 4.  The importance of this legislation and the
 5-5     crowded condition of the calendars in both houses create an
 5-6     emergency and an imperative public necessity that the
 5-7     constitutional rule requiring bills to be read on three several
 5-8     days in each house be suspended, and this rule is hereby suspended,
 5-9     and that this Act take effect and be in force from and after its
5-10     passage, and it is so enacted.