Texas 2009 - 81st Regular

Texas House Bill HB2706 Compare Versions

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1	1	81R11594 NC-D
2	2	By: Turner of Harris, Laubenberg H.B. No. 2706
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of physicians and chiropractors to form
8	8	certain entities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 22, Business Organizations
11	11	Code, is amended by adding Section 22.0561 to read as follows:
12	12	Sec. 22.0561. CORPORATIONS FORMED BY PHYSICIANS AND
13	13	CHIROPRACTORS. (a) Physicians licensed by the Texas Medical Board
14	14	and chiropractors licensed by the Texas Board of Chiropractic
15	15	Examiners may form a corporation that is jointly owned, managed,
16	16	and controlled by those practitioners to perform a professional
17	17	service that falls within the scope of practice of those
18	18	practitioners and consists of:
19	19	(1) carrying out research in the public interest in
20	20	medical science, medical economics, public health, sociology, or a
21	21	related field;
22	22	(2) supporting medical education in medical schools
23	23	through grants or scholarships;
24	24	(3) developing the capabilities of individuals or
25	25	institutions studying, teaching, or practicing medicine or
26	26	chiropractic;
27	27	(4) delivering health care to the public; or
28	28	(5) instructing the public regarding medical science,
29	29	public health, hygiene, or a related matter.
30	30	(b) When physicians and chiropractors form a corporation
31	31	that is jointly owned by those practitioners, the authority of each
32	32	of the practitioners is limited by the scope of practice of the
33	33	respective practitioners and none can exercise control over the
34	34	other's clinical authority granted by their respective licenses,
35	35	either through agreements, the certificate of formation or bylaws
36	36	of the corporation, directives, financial incentives, or other
37	37	arrangements that would assert control over treatment decisions
38	38	made by the practitioner. The Texas Medical Board and the Texas
39	39	Board of Chiropractic Examiners continue to exercise regulatory
40	40	authority over their respective licenses.
41	41	SECTION 2. Subchapter B, Chapter 152, Business
42	42	Organizations Code, is amended by adding Section 152.0551 to read
43	43	as follows:
44	44	Sec. 152.0551. PARTNERSHIPS FORMED BY PHYSICIANS AND
45	45	CHIROPRACTORS. (a) Physicians licensed by the Texas Medical Board
46	46	and chiropractors licensed by the Texas Board of Chiropractic
47	47	Examiners may create a partnership that is jointly owned by those
48	48	practitioners to perform a professional service that falls within
49	49	the scope of practice of those practitioners.
50	50	(b) When physicians and chiropractors create a partnership
51	51	that is jointly owned by those practitioners, the authority of each
52	52	of the practitioners is limited by the scope of practice of the
53	53	respective practitioners and none can exercise control over the
54	54	other's clinical authority granted by their respective licenses,
55	55	either through agreements, bylaws, directives, financial
56	56	incentives, or other arrangements that would assert control over
57	57	treatment decisions made by the practitioner.
58	58	(c) The Texas Medical Board and the Texas Board of
59	59	Chiropractic Examiners continue to exercise regulatory authority
60	60	over their respective licenses.
61	61	SECTION 3. Section 301.012, Business Organizations Code, is
62	62	amended by adding Subsection (a-1) and amending Subsection (f) to
63	63	read as follows:
64	64	(a-1) Persons licensed as physicians by the Texas Medical
65	65	Board and persons licensed as chiropractors by the Texas Board of
66	66	Chiropractic Examiners may jointly form and own a professional
67	67	association or a professional limited liability company to perform
68	68	professional services that fall within the scope of practice of
69	69	those practitioners.
70	70	(f) When doctors of medicine, osteopathy, and podiatry,
71	71	[or] doctors of medicine, osteopathy, and optometry or therapeutic
72	72	optometry, [or] mental health professionals, or physicians and
73	73	chiropractors form a professional entity as provided by Subsections
74	74	(a), (a-1), (b), and (c), the authority of each of the practitioners
75	75	is limited by the scope of practice of the respective practitioners
76	76	and none can exercise control over the other's clinical authority
77	77	granted by their respective licenses, either through agreements,
78	78	bylaws, directives, financial incentives, or other arrangements
79	79	that would assert control over treatment decisions made by the
80	80	practitioner.
81	81	SECTION 4. Article 2.01, Texas Non-Profit Corporation Act
82	82	(Article 1396-2.01, Vernon's Texas Civil Statutes), is amended by
83	83	amending Subsection B and adding Subsections E and F to read as
84	84	follows:
85	85	B. This Act shall not apply to any corporation, nor may any
86	86	corporation be organized under this Act or obtain authority to
87	87	conduct its affairs in this State under this Act:
88	88	(1) If any one or more of its purposes for the conduct
89	89	of its affairs in this State is expressly forbidden by any law of
90	90	this State.
91	91	(2) If any one or more of its purposes for the conduct
92	92	of its affairs in this State is to engage in any activity which
93	93	cannot lawfully be engaged in without first obtaining a license
94	94	under the authority of the laws of this State to engage in such
95	95	activity and such license cannot lawfully be granted to a
96	96	corporation, except as provided by Subsections [Subsection] C and
97	97	F.
98	98	(3) If any one or more of its purposes for the conduct
99	99	of its affairs in this State is to organize Group Hospital Service,
100	100	Rural Credit Unions, Agricultural and Livestock Pools, Mutual Loan
101	101	Corporations, Co-operative Credit Associations, Farmers'
102	102	Co-operative Societies, Co-operative Marketing Act Corporations,
103	103	Rural Electric Co-operative Corporations, Telephone Co-operative
104	104	Corporations, or fraternal organizations operating under the lodge
105	105	system and heretofore or hereafter incorporated under Articles 1399
106	106	through 1407, both inclusive, of Revised Civil Statutes of Texas,
107	107	1925.
108	108	(4) If any one or more of its purposes for the conduct
109	109	of its affairs in this State is to operate a bank under the banking
110	110	laws of this State or to operate an insurance company of any type or
111	111	character that operates under the insurance laws of this State.
112	112	E. Physicians licensed by the Texas Medical Board and
113	113	chiropractors licensed by the Texas Board of Chiropractic Examiners
114	114	may organize a nonprofit corporation under this Act that is jointly
115	115	owned, managed, and controlled by those practitioners to perform a
116	116	professional service that falls within the scope of practice of
117	117	those practitioners and consists of:
118	118	(1) carrying out research in the public interest in
119	119	medical science, medical economics, public health, sociology, or a
120	120	related field;
121	121	(2) supporting medical education in medical schools
122	122	through grants or scholarships;
123	123	(3) developing the capabilities of individuals or
124	124	institutions studying, teaching, or practicing medicine or
125	125	chiropractic;
126	126	(4) delivering health care to the public; or
127	127	(5) instructing the public regarding medical science,
128	128	public health, hygiene, or a related matter.
129	129	F. When physicians and chiropractors organize a nonprofit
130	130	corporation that is jointly owned by those practitioners, the
131	131	authority of each of the practitioners is limited by the scope of
132	132	practice of the respective practitioners and none can exercise
133	133	control over the other's clinical authority granted by their
134	134	respective licenses, either through agreements, articles of
135	135	incorporation, bylaws, directives, financial incentives, or other
136	136	arrangements that would assert control over treatment decisions
137	137	made by the practitioner. The Texas Medical Board and the Texas
138	138	Board of Chiropractic Examiners continue to exercise regulatory
139	139	authority over their respective licenses.
140	140	SECTION 5. Subsection (B), Section 2, Texas Professional
141	141	Association Act (Article 1528f, Vernon's Texas Civil Statutes), is
142	142	amended by adding Subdivision (2-a) and amending Subdivision (4) to
143	143	read as follows:
144	144	(2-a) Physicians licensed by the Texas Medical Board
145	145	and chiropractors licensed by the Texas Board of Chiropractic
146	146	Examiners may form an association that is jointly owned by those
147	147	practitioners to perform a professional service that falls within
148	148	the scope of practice of those practitioners.
149	149	(4) When doctors of medicine, osteopathy, and
150	150	podiatry, [or] mental health professionals, or physicians and
151	151	chiropractors form an association that is jointly owned by those
152	152	practitioners, the authority of each of the practitioners is
153	153	limited by the scope of practice of the respective practitioners
154	154	and none can exercise control over the other's clinical authority
155	155	granted by their respective licenses, either through agreements,
156	156	bylaws, directives, financial incentives, or other arrangements
157	157	that would assert control over treatment decisions made by the
158	158	practitioner. The state agencies exercising regulatory control
159	159	over professions to which this subdivision applies continue to
160	160	exercise regulatory authority over their respective licenses.
161	161	SECTION 6. Subsection A, Article 11.01, Texas Limited
162	162	Liability Company Act (Article 1528n, Vernon's Texas Civil
163	163	Statutes), is amended by amending Subdivision (2) and adding
164	164	Subdivision (5) to read as follows:
165	165	(2) Except as provided by Subdivisions (3), [and] (4),
166	166	and (5) of this subsection, a professional limited liability
167	167	company:
168	168	(a) may be organized under this Act only for the
169	169	purpose of rendering one specific type of professional service and
170	170	ancillary services; and
171	171	(b) may not render more than one kind of
172	172	professional service.
173	173	(5) Physicians licensed by the Texas Medical Board and
174	174	chiropractors licensed by the Texas Board of Chiropractic Examiners
175	175	may organize a professional limited liability company that is
176	176	jointly owned by those practitioners to perform a professional
177	177	service that falls within the scope of practice of those
178	178	practitioners. When physicians and chiropractors organize a
179	179	professional limited liability company that is jointly owned by
180	180	those practitioners, the authority of each of the practitioners is
181	181	limited by the scope of practice of the respective practitioners
182	182	and none can exercise control over the other's clinical authority
183	183	granted by their respective licenses, either through agreements,
184	184	bylaws, directives, financial incentives, or other arrangements
185	185	that would assert control over treatment decisions made by the
186	186	practitioner. The Texas Medical Board and the Texas Board of
187	187	Chiropractic Examiners continue to exercise regulatory authority
188	188	over their respective licenses.
189	189	SECTION 7. Section 2.02, Texas Revised Partnership Act
190	190	(Article 6132b-2.02, Vernon's Texas Civil Statutes), is amended by
191	191	adding Subsection (f) to read as follows:
192	192	(f) Authority of Physicians and Chiropractors to Create
193	193	Partnership. Physicians licensed by the Texas Medical Board and
194	194	chiropractors licensed by the Texas Board of Chiropractic Examiners
195	195	may create a partnership that is jointly owned by those
196	196	practitioners to perform a professional service that falls within
197	197	the scope of practice of those practitioners. When physicians and
198	198	chiropractors create a partnership that is jointly owned by those
199	199	practitioners, the authority of each of the practitioners is
200	200	limited by the scope of practice of the respective practitioners
201	201	and none can exercise control over the other's clinical authority
202	202	granted by their respective licenses, either through agreements,
203	203	bylaws, directives, financial incentives, or other arrangements
204	204	that would assert control over treatment decisions made by the
205	205	practitioner. The Texas Medical Board and the Texas Board of
206	206	Chiropractic Examiners continue to exercise regulatory authority
207	207	over their respective licenses.
208	208	SECTION 8. This Act takes effect immediately if it receives
209	209	a vote of two-thirds of all the members elected to each house, as
210	210	provided by Section 39, Article III, Texas Constitution. If this
211	211	Act does not receive the vote necessary for immediate effect, this
212	212	Act takes effect September 1, 2009.