By: J. Davis of Harris (Senate Sponsor - Uresti) H.B. No. 2098
         (In the Senate - Received from the House May 11, 2011;
  May 12, 2011, read first time and referred to Committee on State
  Affairs; May 21, 2011, reported favorably by the following vote:  
  Yeas 6, Nays 2; May 21, 2011, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the authority of physicians and physician assistants to
  form certain entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 22, Business Organizations
  Code, is amended by adding Section 22.0561 to read as follows:
         Sec. 22.0561.  CORPORATIONS FORMED BY PHYSICIANS AND
  PHYSICIAN ASSISTANTS.  (a)  Physicians licensed under Subtitle B,
  Title 3, Occupations Code, and physician assistants licensed under
  Chapter 204, Occupations Code, may form a corporation 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 or acting
  as a physician assistant;
               (4)  delivering health care to the public; or
               (5)  instructing the public regarding medical science,
  public health, hygiene, or a related matter.
         (b)  A physician assistant may not be an officer of the
  corporation.
         (c)  A physician assistant may not contract with or employ a
  physician to be a supervising physician of the physician assistant
  or of any physician in the corporation.
         (d)  The authority of each practitioner is limited by the
  scope of practice of the respective practitioner. An organizer of
  the entity must be a physician and ensure that a physician or
  physicians control and manage the entity.
         (e)  Nothing in this section may be construed to allow the
  practice of medicine by someone not licensed as a physician under
  Subtitle B, Title 3, Occupations Code, or to allow a person not
  licensed as a physician to direct the activities of a physician in
  the practice of medicine.
         (f)  A physician assistant or combination of physician
  assistants may have only a minority ownership interest in an entity
  created under this section.  The ownership interest of an
  individual physician assistant may not equal or exceed the
  ownership interest of any individual physician owner.  A physician
  assistant or combination of physician assistants may not interfere
  with the practice of medicine by a physician owner or the
  supervision of physician assistants by a physician owner.
         (g)  The Texas Medical Board and the Texas Physician
  Assistant Board continue to exercise regulatory authority over
  their respective license holders according to applicable law.  To
  the extent of a conflict between Subtitle B, Title 3, Occupations
  Code, and Chapter 204, Occupations Code, or any rules adopted under
  those statutes, Subtitle B, Title 3, or a rule adopted under that
  subtitle controls.
         SECTION 2.  Subchapter B, Chapter 152, Business
  Organizations Code, is amended by adding Section 152.0551 to read
  as follows:
         Sec. 152.0551.  PARTNERSHIPS FORMED BY PHYSICIANS AND
  PHYSICIAN ASSISTANTS.  (a)  Physicians licensed under Subtitle B,
  Title 3, Occupations Code, and physician assistants licensed under
  Chapter 204, Occupations Code, may create a partnership to perform
  a professional service that falls within the scope of practice of
  those practitioners.
         (b)  A physician assistant may not be a general partner or
  participate in the management of the partnership.
         (c)  A physician assistant may not contract with or employ a
  physician to be a supervising physician of the physician assistant
  or of any physician in the partnership.
         (d)  The authority of each practitioner is limited by the
  scope of practice of the respective practitioner.  An organizer of
  the entity must be a physician and ensure that a physician or
  physicians control and manage the entity.
         (e)  Nothing in this section may be construed to allow the
  practice of medicine by someone not licensed as a physician under
  Subtitle B, Title 3, Occupations Code, or to allow a person not
  licensed as a physician to direct the activities of a physician in
  the practice of medicine.
         (f)  A physician assistant or combination of physician
  assistants may have only a minority ownership interest in an entity
  created under this section.  The ownership interest of an
  individual physician assistant may not equal or exceed the
  ownership interest of any individual physician owner.  A physician
  assistant or combination of physician assistants may not interfere
  with the practice of medicine by a physician owner or the
  supervision of physician assistants by a physician owner.
         (g)  The Texas Medical Board and the Texas Physician
  Assistant Board continue to exercise regulatory authority over
  their respective license holders according to applicable law.  To
  the extent of a conflict between Subtitle B, Title 3, Occupations
  Code, and Chapter 204, Occupations Code, or any rules adopted under
  those statutes, Subtitle B, Title 3, or a rule adopted under that
  subtitle controls.
         SECTION 3.  Section 301.012, Business Organizations Code, is
  amended by adding Subsections (a-1), (a-2), (a-3), (a-4), (a-5),
  (a-6), and (a-7) to read as follows:
         (a-1)  Persons licensed as physicians under Subtitle B,
  Title 3, Occupations Code, and persons licensed as physician
  assistants under Chapter 204, Occupations Code, may form and own a
  professional association or a professional limited liability
  company to perform professional services that fall within the scope
  of practice of those practitioners.
         (a-2)  A physician assistant  may not be an officer in the
  professional association or limited liability company.
         (a-3)  A physician assistant may not contract with or employ
  a physician to be a supervising physician of the physician
  assistant or of any physician in the professional association or
  limited liability company.
         (a-4)  The authority of each practitioner is limited by the
  scope of practice of the respective practitioner. An organizer of
  the entity must be a physician and ensure that a physician or
  physicians control and manage the entity.
         (a-5)  Nothing in this section may be construed to allow the
  practice of medicine by someone not licensed as a physician under
  Subtitle B, Title 3, Occupations Code, or to allow a person not
  licensed as a physician to direct the activities of a physician in
  the practice of medicine.
         (a-6)  A physician assistant or combination of physician
  assistants may have only a minority ownership interest in an entity
  created under this section.  The ownership interest of an
  individual physician assistant may not equal or exceed the
  ownership interest of any individual physician owner.  A physician
  assistant or combination of physician assistants may not interfere
  with the practice of medicine by a physician owner or the
  supervision of physician assistants by a physician owner.
         (a-7)  The Texas Medical Board and the Texas Physician
  Assistant Board continue to exercise regulatory authority over
  their respective license holders according to applicable law.  To
  the extent of a conflict between Subtitle B, Title 3, Occupations
  Code, and Chapter 204, Occupations Code, or any rules adopted under
  those statutes, Subtitle B, Title 3, or a rule adopted under that
  subtitle controls.
         SECTION 4.  Subchapter B, Chapter 162, Occupations Code, is
  amended by adding Section 162.053 to read as follows:
         Sec. 162.053.  JOINTLY OWNED ENTITIES WITH PHYSICIAN
  ASSISTANTS. (a)  A physician who jointly owns an entity with a
  physician assistant shall report annually to the board the
  ownership interest and other information required by board rule.
         (b)  The board shall assess a fee for processing each report
  required by Subsection (a).
         (c)  A report filed under Subsection (a) is public
  information for purposes of Chapter 552, Government Code.
         SECTION 5.  Subchapter E, Chapter 204, Occupations Code, is
  amended by adding Section 204.209 to read as follows:
         Sec. 204.209.  JOINTLY OWNED ENTITIES WITH PHYSICIANS.
  (a)  A physician assistant who jointly owns an entity with a
  physician shall report annually to the physician assistant board
  the ownership interest and other information required by physician
  assistant board rule.
         (b)  The physician assistant board shall assess a fee for
  processing each report required by Subsection (a).
         (c)  A report filed under Subsection (a) is public
  information for purposes of Chapter 552, Government Code.
         SECTION 6.  The restrictions on ownership interests in
  Sections 22.0561, 152.0551, and 301.012, Business Organizations
  Code, apply to an ownership interest acquired on or after the
  effective date of this Act. An ownership interest acquired before
  the effective date of this Act is governed by the law in effect at
  the time the interest was acquired, and the former law is continued
  in effect for that purpose.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  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, 2011.
 
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