Amend SB 344 (House Committee Report) by adding the following 
appropriately numbered SECTIONS to the bill and renumbering 
subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Section 243.002, Health and Safety Code, is 
amended by amending Subdivision (3) and adding Subdivisions (3-a), 
(3-b), and (5) to read as follows:
		(3)  "Department" means the [Texas] Department of State 
Health Services.
	(3-a)  "Designated physician group" means any business 
entity formed exclusively by one or more physicians licensed to 
practice medicine in this state, including a professional 
association, a professional corporation, a professional limited 
liability company, or a professional limited liability 
partnership.
	(3-b)  "Facility" means the physical premises that the 
department determines constitutes an ambulatory surgical center.
		(5)  "Sublicense agreement" means a written and 
executed agreement between a licensed ambulatory surgical center 
and a designated physician group under which the ambulatory 
surgical center allows the designated physician group to use its 
facility to provide surgical services to the designated physician 
group's patients.
	SECTION ____.  The heading to Section 243.003, Health and 
Safety Code, is amended to read as follows:
	Sec. 243.003.  LICENSE REQUIRED; SUBLICENSE AGREEMENTS.                 
	SECTION ____.  Section 243.003, Health and Safety Code, is 
amended by amending Subsection (c) and adding Subsection (d) to 
read as follows:
	(c)  Except as provided by Subsection (d), a [A] license is 
not transferable or assignable.
	(d)  An ambulatory surgical center may share its license with 
a designated physician group under a written sublicense agreement 
if:
		(1)  the sublicense agreement is filed with and 
approved by the department; and
		(2)  the sublicense agreement provides that:                           
			(A)  the ambulatory surgical center remains 
responsible for ensuring that the facility and all surgical and 
other services provided by the ambulatory surgical center or in the 
facility by any designated physician group complies with this 
chapter and applicable department rules; and
			(B)  all surgical services provided by the 
designated physician group as an ambulatory surgical center 
sublicense holder are provided in the facility.
	SECTION ____.  Section 843.002, Insurance Code, is amended 
by adding Subdivision (1-a) and amending Subdivision (24) to read 
as follows:
		(1-a)  "Ambulatory surgical center" means a facility 
licensed under Chapter 243, Health and Safety Code.  The term 
includes a designated physician group operating under a sublicense 
agreement under Section 243.003, Health and Safety Code.
		(24)  "Provider" means:                                                       
			(A)  a person, other than a physician, who is 
licensed or otherwise authorized to provide a health care service 
in this state, including:
				(i)  a chiropractor, registered nurse, 
pharmacist, optometrist, registered optician, or acupuncturist;  
or
				(ii)  a pharmacy, hospital, ambulatory 
surgical center, or other institution or organization;
			(B)  a person who is wholly owned or controlled by 
a provider or by a group of providers who are licensed or otherwise 
authorized to provide the same health care service;  or
			(C)  a person who is wholly owned or controlled by 
one or more hospitals and physicians, including a 
physician-hospital organization.
	SECTION ____.  Section 1301.001, Insurance Code, is amended 
by amending Subdivisions (1) and (4) and adding Subdivision (1-a) 
to read as follows:
		(1)  "Ambulatory surgical center" means a facility 
licensed under Chapter 243, Health and Safety Code.  The term 
includes a designated physician group operating under a sublicense 
agreement under Section 243.003, Health and Safety Code.
		(1-a)  "Health care provider" means a practitioner, 
institutional provider, or other person or organization that 
furnishes health care services and that is licensed or otherwise 
authorized to practice in this state.  The term does not include a 
physician.
		(4)  "Institutional provider" means an ambulatory 
surgical center, [a] hospital, nursing home, or other medical or 
health-related service facility that provides care for the sick or 
injured or other care that may be covered in a health insurance 
policy.
	SECTION ____.  Section 401.011, Labor Code, is amended by 
adding Subdivision (4-a) and amending Subdivision (20) to read as 
follows:
		(4-a)  "Ambulatory surgical center" means a facility 
licensed under Chapter 243, Health and Safety Code. The term 
includes a designated physician group operating under a sublicense 
agreement under Section 243.003, Health and Safety Code.
		(20)  "Health care facility" means a hospital, 
ambulatory surgical center, emergency clinic, outpatient clinic, 
or other facility providing health care.
	SECTION ____.  The change in law made by this Act applies 
only to a sublicense agreement under Section 243.003, Health and 
Safety Code, as amended by this Act, that is entered into and 
approved by the Department of State Health Services on or after the 
effective date of this Act.  A sublicense agreement entered into 
before the effective date of this Act is governed by the law in 
effect immediately before that date, and that law is continued in 
effect for that purpose.