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A BILL TO BE ENTITLED
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AN ACT
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relating to covenants not to compete. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.50, Business & Commerce Code, is |
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amended by adding Subsection (d) to read as follows: |
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(d) For purposes of Subsection (b), "relating to the |
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practice of medicine" does not include a physician's employment by |
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or ownership interest in an entity that is not practicing medicine, |
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as that term is defined by Section 151.002, Occupations Code. A |
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licensed hospital or a licensed ambulatory center is not an entity |
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that is practicing medicine, as that term is defined by Section |
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151.002, Occupations Code. |
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SECTION 2. Section 15.50(d), Business & Commerce Code, as |
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added by this Act: |
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(1) clarifies the area of law the provision addresses |
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and does not substantively change that law; and |
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(2) applies to a covenant entered into before, on, or |
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after the effective date of this Act. |
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SECTION 3. 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 |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |