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| 2 | 2 | | FIRST REGULAR SESSION |
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| 3 | 3 | | SENATE BILL NO. 383 |
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| 4 | 4 | | 103RD GENERAL ASSEMBLY |
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| 5 | 5 | | INTRODUCED BY SENATOR FITZWATER. |
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| 6 | 6 | | 0634S.01I KRISTINA MARTIN, Secretary |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | To amend chapter 191, RSMo, by adding thereto one new section relating to covenants not to |
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| 9 | 9 | | compete for physicians. |
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| 10 | 10 | | |
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| 11 | 11 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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| 12 | 12 | | Section A. Chapter 191, RSMo, is amended by ad ding thereto 1 |
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| 13 | 13 | | one new section, to be known as section 191.260, to read as 2 |
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| 14 | 14 | | follows:3 |
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| 15 | 15 | | 191.260. 1. As used in this section, the term 1 |
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| 16 | 16 | | "covenant not to compete" means an agreement or part of a 2 |
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| 17 | 17 | | contract of employment in which the employee agrees to 3 |
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| 18 | 18 | | refrain from competition with an employer for a specific 4 |
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| 19 | 19 | | period of time or within a particular geographic area, or 5 |
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| 20 | 20 | | both. 6 |
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| 21 | 21 | | 2. A covenant not to compete between a physician and 7 |
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| 22 | 22 | | an employer shall only be enforceable if: 8 |
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| 23 | 23 | | (1) The physician is providin g health care services in 9 |
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| 24 | 24 | | a clinical setting; and 10 |
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| 25 | 25 | | (2) The employer is not a health care entity owned or 11 |
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| 26 | 26 | | operated by a nonprofit corporation that is exempt from 12 |
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| 27 | 27 | | federal income tax under section 501(c)(3) of the Internal 13 |
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| 28 | 28 | | Revenue Code of 1986, as am ended. 14 |
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| 29 | 29 | | 3. A valid covenant not to compete between a physician 15 |
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| 30 | 30 | | and an employer shall: 16 |
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| 31 | 31 | | (1) Be for a period of no longer than three hundred 17 |
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| 32 | 32 | | sixty-five days; and 18 SB 383 2 |
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| 33 | 33 | | (2) Not extend further than fifty miles from the 19 |
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| 34 | 34 | | physician's office address. 20 |
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| 35 | 35 | | |
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