By:  Gallegos                                                     S.B. No. 1283
	(In the Senate - Filed March 12, 2003; March 19, 2003, read 
first time and referred to Committee on Health and Human Services; 
April 22, 2003, reported favorably by the following vote:  Yeas 7, 
Nays 0; April 22, 2003, sent to printer.)

A BILL TO BE ENTITLED
AN ACT
relating to the authority of chiropractors to form certain business entities with certain other professionals. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subsections C and D, Article 2.01, Texas Non-Profit Corporation Act (Article 1396-2.01, Vernon's Texas Civil Statutes), are amended to read as follows: C. Doctors of medicine and osteopathy licensed by the Texas State Board of Medical Examiners, [and] podiatrists licensed by the Texas State Board of Podiatric Medical Examiners, and chiropractors licensed by the Texas Board of Chiropractic Examiners may organize a non-profit corporation under this Act that is jointly owned, managed, and controlled by those practitioners to perform a professional service that falls within the scope of practice of those practitioners and consists of: (1) carrying out research in the public interest in medical science, medical economics, public health, sociology, or a related field; (2) supporting medical education in medical schools through grants or scholarships; (3) developing the capabilities of individuals or institutions studying, teaching, or practicing medicine, including podiatric medicine; (4) delivering health care to the public; or (5) instructing the public regarding medical science, public health, hygiene, or a related matter. D. When doctors of medicine, osteopathy, [and] podiatry, and chiropractic organize a non-profit corporation that is jointly owned by those practitioners, the authority of each of the practitioners is limited by the scope of practice of the respective practitioners and none can exercise control over the other's clinical authority granted by their respective licenses, either through agreements, articles of incorporation, bylaws, directives, financial incentives, or other arrangements that would assert control over treatment decisions made by the practitioner. The Texas State Board of Medical Examiners, [and] the Texas State Board of Podiatric Medical Examiners, and the Texas Board of Chiropractic Examiners continue to exercise regulatory authority over their respective licenses. SECTION 2. Subsection (B), Section 2, Texas Professional Association Act (Article 1528f, Vernon's Texas Civil Statutes), is amended to read as follows: (B) Licenses. (1) Except as provided by this subsection, all members of the association shall be licensed to perform the type of professional service for which the association is formed. (2) Doctors of medicine and osteopathy licensed by the Texas State Board of Medical Examiners, [and] podiatrists licensed by the Texas State Board of Podiatric Medical Examiners, and chiropractors licensed by the Texas Board of Chiropractic Examiners may form an association that is jointly owned by those practitioners to perform a professional service that falls within the scope of practice of those practitioners. (3) Professionals, other than physicians, engaged in related mental health fields such as psychology, clinical social work, licensed professional counseling, and licensed marriage and family therapy may form an association that is jointly owned by those practitioners to perform professional services that fall within the scope of practice of those practitioners. (4) When doctors of medicine, osteopathy, [and] podiatry, and chiropractic, or mental health professionals form an association that is jointly owned by those practitioners, the authority of each of the practitioners is limited by the scope of practice of the respective practitioners and none can exercise control over the other's clinical authority granted by their respective licenses, either through agreements, bylaws, directives, financial incentives, or other arrangements that would assert control over treatment decisions made by the practitioner. The state agencies exercising regulatory control over professions to which this subdivision applies continue to exercise regulatory authority over their respective licenses. SECTION 3. Subsection (3), Section A, Article 11.01, Texas Limited Liability Company Act (Article 1528n, Vernon's Texas Civil Statutes), is amended to read as follows: (3) Doctors of medicine and osteopathy licensed by the Texas State Board of Medical Examiners, [and] podiatrists licensed by the Texas State Board of Podiatric Medical Examiners, and chiropractors licensed by the Texas Board of Chiropractic Examiners may organize a professional limited liability company that is jointly owned by those practitioners to perform a professional service that falls within the scope of practice of those practitioners. When doctors of medicine, osteopathy, [and] podiatry, and chiropractic organize a professional limited liability company that is jointly owned by those practitioners, the authority of each of the practitioners is limited by the scope of practice of the respective practitioners and none can exercise control over the other's clinical authority granted by their respective licenses, either through agreements, bylaws, directives, financial incentives, or other arrangements that would assert control over treatment decisions made by the practitioner. The Texas State Board of Medical Examiners, [and] the Texas State Board of Podiatric Medical Examiners, and the Texas Board of Chiropractic Examiners continue to exercise regulatory authority over their respective licenses. SECTION 4. Subsection (e), Section 2.02, Texas Revised Partnership Act (Article 6132b-2.02, Vernon's Texas Civil Statutes), is amended to read as follows: (e) Authority of Doctors of Medicine, [and] Osteopathy, and Chiropractic and Podiatrists to Create Partnership. Doctors of medicine and osteopathy licensed by the Texas State Board of Medical Examiners, [and] podiatrists licensed by the Texas State Board of Podiatric Medical Examiners, and chiropractors licensed by the Texas Board of Chiropractic Examiners may create a partnership that is jointly owned by those practitioners to perform a professional service that falls within the scope of practice of those practitioners. When doctors of medicine, osteopathy, [and] podiatry, and chiropractic create a partnership that is jointly owned by those practitioners, the authority of each of the practitioners is limited by the scope of practice of the respective practitioners and none can exercise control over the other's clinical authority granted by their respective licenses, either through agreements, bylaws, directives, financial incentives, or other arrangements that would assert control over treatment decisions made by the practitioner. The Texas State Board of Medical Examiners, [and] the Texas State Board of Podiatric Medical Examiners, and the Texas Board of Chiropractic Examiners continue to exercise regulatory authority over their respective licenses. SECTION 5. This Act takes effect September 1, 2003.
* * * * *