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.