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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of physicians and chiropractors to form |
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certain entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 22, Business Organizations |
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Code, is amended by adding Section 22.0561 to read as follows: |
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Sec. 22.0561. CORPORATIONS FORMED BY PHYSICIANS AND |
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CHIROPRACTORS. (a) Physicians licensed by the Texas Medical Board |
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and chiropractors licensed by the Texas Board of Chiropractic |
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Examiners may form a corporation that is jointly owned, managed, |
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and controlled by those practitioners to perform a professional |
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service that falls within the scope of practice of those |
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practitioners and consists of: |
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(1) carrying out research in the public interest in |
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medical science, medical economics, public health, sociology, or a |
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related field; |
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(2) supporting medical education in medical schools |
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through grants or scholarships; |
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(3) developing the capabilities of individuals or |
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institutions studying, teaching, or practicing medicine or |
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chiropractic; |
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(4) delivering health care to the public; or |
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(5) instructing the public regarding medical science, |
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public health, hygiene, or a related matter. |
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(b) When physicians and chiropractors form a corporation |
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that is jointly owned by those practitioners, the authority of each |
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of the practitioners is limited by the scope of practice of the |
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respective practitioners and none can exercise control over the |
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other's clinical authority granted by their respective licenses, |
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either through agreements, the certificate of formation or bylaws |
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of the corporation, directives, financial incentives, or other |
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arrangements that would assert control over treatment decisions |
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made by the practitioner. The Texas Medical Board and the Texas |
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Board of Chiropractic Examiners continue to exercise regulatory |
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authority over their respective licenses. |
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SECTION 2. Subchapter B, Chapter 152, Business |
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Organizations Code, is amended by adding Section 152.0551 to read |
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as follows: |
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Sec. 152.0551. PARTNERSHIPS FORMED BY PHYSICIANS AND |
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CHIROPRACTORS. (a) Physicians licensed by the Texas Medical Board |
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and chiropractors licensed by the Texas Board of Chiropractic |
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Examiners may create a partnership that is jointly owned by those |
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practitioners to perform a professional service that falls within |
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the scope of practice of those practitioners. |
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(b) When physicians and chiropractors create a partnership |
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that is jointly owned by those practitioners, the authority of each |
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of the practitioners is limited by the scope of practice of the |
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respective practitioners and none can exercise control over the |
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other's clinical authority granted by their respective licenses, |
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either through agreements, bylaws, directives, financial |
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incentives, or other arrangements that would assert control over |
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treatment decisions made by the practitioner. |
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(c) The Texas Medical Board and the Texas Board of |
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Chiropractic Examiners continue to exercise regulatory authority |
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over their respective licenses. |
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SECTION 3. Section 301.012, Business Organizations Code, is |
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amended by adding Subsection (a-1) and amending Subsection (f) to |
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read as follows: |
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(a-1) Persons licensed as physicians by the Texas Medical |
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Board and persons licensed as chiropractors by the Texas Board of |
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Chiropractic Examiners may jointly form and own a professional |
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association or a professional limited liability company to perform |
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professional services that fall within the scope of practice of |
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those practitioners. |
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(f) When doctors of medicine, osteopathy, and podiatry, |
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[or] doctors of medicine, osteopathy, and optometry or therapeutic |
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optometry, [or] mental health professionals, or physicians and |
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chiropractors form a professional entity as provided by Subsections |
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(a), (a-1), (b), and (c), the authority of each of the practitioners |
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is limited by the scope of practice of the respective practitioners |
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and none can exercise control over the other's clinical authority |
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granted by their respective licenses, either through agreements, |
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bylaws, directives, financial incentives, or other arrangements |
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that would assert control over treatment decisions made by the |
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practitioner. |
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SECTION 4. Article 2.01, Texas Non-Profit Corporation Act |
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(Article 1396-2.01, Vernon's Texas Civil Statutes), is amended by |
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amending Subsection B and adding Subsections E and F to read as |
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follows: |
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B. This Act shall not apply to any corporation, nor may any |
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corporation be organized under this Act or obtain authority to |
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conduct its affairs in this State under this Act: |
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(1) If any one or more of its purposes for the conduct |
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of its affairs in this State is expressly forbidden by any law of |
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this State. |
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(2) If any one or more of its purposes for the conduct |
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of its affairs in this State is to engage in any activity which |
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cannot lawfully be engaged in without first obtaining a license |
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under the authority of the laws of this State to engage in such |
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activity and such license cannot lawfully be granted to a |
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corporation, except as provided by Subsections [Subsection] C and |
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F. |
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(3) If any one or more of its purposes for the conduct |
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of its affairs in this State is to organize Group Hospital Service, |
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Rural Credit Unions, Agricultural and Livestock Pools, Mutual Loan |
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Corporations, Co-operative Credit Associations, Farmers' |
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Co-operative Societies, Co-operative Marketing Act Corporations, |
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Rural Electric Co-operative Corporations, Telephone Co-operative |
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Corporations, or fraternal organizations operating under the lodge |
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system and heretofore or hereafter incorporated under Articles 1399 |
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through 1407, both inclusive, of Revised Civil Statutes of Texas, |
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1925. |
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(4) If any one or more of its purposes for the conduct |
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of its affairs in this State is to operate a bank under the banking |
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laws of this State or to operate an insurance company of any type or |
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character that operates under the insurance laws of this State. |
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E. Physicians licensed by the Texas Medical Board and |
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chiropractors licensed by the Texas Board of Chiropractic Examiners |
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may organize a nonprofit corporation under this Act that is jointly |
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owned, managed, and controlled by those practitioners to perform a |
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professional service that falls within the scope of practice of |
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those practitioners and consists of: |
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(1) carrying out research in the public interest in |
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medical science, medical economics, public health, sociology, or a |
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related field; |
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(2) supporting medical education in medical schools |
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|
through grants or scholarships; |
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|
(3) developing the capabilities of individuals or |
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|
institutions studying, teaching, or practicing medicine or |
|
|
chiropractic; |
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(4) delivering health care to the public; or |
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(5) instructing the public regarding medical science, |
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public health, hygiene, or a related matter. |
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F. When physicians and chiropractors organize a nonprofit |
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corporation that is jointly owned by those practitioners, the |
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authority of each of the practitioners is limited by the scope of |
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practice of the respective practitioners and none can exercise |
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control over the other's clinical authority granted by their |
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respective licenses, either through agreements, articles of |
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incorporation, bylaws, directives, financial incentives, or other |
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arrangements that would assert control over treatment decisions |
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made by the practitioner. The Texas Medical Board and the Texas |
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Board of Chiropractic Examiners continue to exercise regulatory |
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authority over their respective licenses. |
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SECTION 5. Subsection (B), Section 2, Texas Professional |
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Association Act (Article 1528f, Vernon's Texas Civil Statutes), is |
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amended by adding Subdivision (2-a) and amending Subdivision (4) to |
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read as follows: |
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(2-a) Physicians licensed by the Texas Medical Board |
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and chiropractors licensed by the Texas Board of Chiropractic |
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Examiners may form an association that is jointly owned by those |
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practitioners to perform a professional service that falls within |
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the scope of practice of those practitioners. |
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(4) When doctors of medicine, osteopathy, and |
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podiatry, [or] mental health professionals, or physicians and |
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chiropractors form an association that is jointly owned by those |
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practitioners, the authority of each of the practitioners is |
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limited by the scope of practice of the respective practitioners |
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and none can exercise control over the other's clinical authority |
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granted by their respective licenses, either through agreements, |
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bylaws, directives, financial incentives, or other arrangements |
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that would assert control over treatment decisions made by the |
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practitioner. The state agencies exercising regulatory control |
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over professions to which this subdivision applies continue to |
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exercise regulatory authority over their respective licenses. |
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SECTION 6. Subsection A, Article 11.01, Texas Limited |
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Liability Company Act (Article 1528n, Vernon's Texas Civil |
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Statutes), is amended by amending Subdivision (2) and adding |
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Subdivision (5) to read as follows: |
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(2) Except as provided by Subdivisions (3), [and] (4), |
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and (5) of this subsection, a professional limited liability |
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company: |
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(a) may be organized under this Act only for the |
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purpose of rendering one specific type of professional service and |
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ancillary services; and |
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(b) may not render more than one kind of |
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professional service. |
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(5) Physicians licensed by the Texas Medical Board and |
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chiropractors licensed by the Texas Board of Chiropractic Examiners |
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may organize a professional limited liability company that is |
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jointly owned by those practitioners to perform a professional |
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service that falls within the scope of practice of those |
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practitioners. When physicians and chiropractors organize a |
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professional limited liability company that is jointly owned by |
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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 |
|
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practitioner. The Texas Medical Board and the Texas Board of |
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Chiropractic Examiners continue to exercise regulatory authority |
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over their respective licenses. |
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SECTION 7. Section 2.02, Texas Revised Partnership Act |
|
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(Article 6132b-2.02, Vernon's Texas Civil Statutes), is amended by |
|
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adding Subsection (f) to read as follows: |
|
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(f) Authority of Physicians and Chiropractors to Create |
|
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Partnership. Physicians licensed by the Texas Medical Board and |
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chiropractors licensed by the Texas Board of Chiropractic Examiners |
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may create a partnership that is jointly owned by those |
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practitioners to perform a professional service that falls within |
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the scope of practice of those practitioners. When physicians and |
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chiropractors create a partnership that is jointly owned by those |
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practitioners, the authority of each of the practitioners is |
|
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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 |
|
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practitioner. The Texas Medical Board and the Texas Board of |
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Chiropractic Examiners continue to exercise regulatory authority |
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over their respective licenses. |
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SECTION 8. This Act takes effect immediately if it receives |
|
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a vote of two-thirds of all the members elected to each house, as |
|
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provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2007. |