H.B. No. 3623
  relating to covenants not to compete by physicians.
         SECTION 1.  Section 15.50, Business & Commerce Code, is
  amended by amending Subsection (b) and adding Subsection (c) to
  read as follows:
         (b)  A covenant not to compete relating to the practice of
  medicine is enforceable against a person licensed as a physician by
  the Texas Medical Board [State Board of Medical Examiners] if such
  covenant complies with the following requirements:
               (1)  the covenant must:
                     (A)  not deny the physician access to a list of his
  patients whom he had seen or treated within one year of termination
  of the contract or employment;
                     (B)  provide access to medical records of the
  physician's patients upon authorization of the patient and any
  copies of medical records for a reasonable fee as established by the
  Texas Medical Board [State Board of Medical Examiners] under
  Section 159.008, Occupations Code; and
                     (C)  provide that any access to a list of patients
  or to patients' medical records after termination of the contract
  or employment shall not require such list or records to be provided
  in a format different than that by which such records are maintained
  except by mutual consent of the parties to the contract;
               (2)  the covenant must provide for a buy out of the
  covenant by the physician at a reasonable price or, at the option of
  either party, as determined by a mutually agreed upon arbitrator
  or, in the case of an inability to agree, an arbitrator of the court
  whose decision shall be binding on the parties; and
               (3)  the covenant must provide that the physician will
  not be prohibited from providing continuing care and treatment to a
  specific patient or patients during the course of an acute illness
  even after the contract or employment has been terminated.
         (c)  Subsection (b) does not apply to a physician's business
  ownership interest in a licensed hospital or licensed ambulatory
  surgical center.
         SECTION 2.  This Act applies only to a covenant entered into
  on or after the effective date of this Act. A covenant entered into
  before the effective date of this Act is governed by the law in
  effect at the time the covenant was entered into, and that law is
  continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2009.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 3623 was passed by the House on May
  13, 2009, by the following vote:  Yeas 146, Nays 0, 1 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 3623 was passed by the Senate on May
  26, 2009, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________