81R11594 NC-D
By: Turner of Harris, Laubenberg H.B. No. 2706
A BILL TO BE ENTITLED
AN ACT
relating to the authority of physicians and chiropractors 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
CHIROPRACTORS. (a) Physicians licensed by the Texas Medical Board
and chiropractors licensed by the Texas Board of Chiropractic
Examiners may form a corporation that is jointly owned, managed,
and controlled by those practitioners 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
chiropractic;
(4) delivering health care to the public; or
(5) instructing the public regarding medical science,
public health, hygiene, or a related matter.
(b) When physicians and chiropractors form a corporation
that is jointly owned by those practitioners, the authority of each
of the practitioners is limited by the scope of practice of the
respective practitioners and none can exercise control over the
other's clinical authority granted by their respective licenses,
either through agreements, the certificate of formation or bylaws
of the corporation, directives, financial incentives, or other
arrangements that would assert control over treatment decisions
made by the practitioner. The Texas Medical Board and the Texas
Board of Chiropractic Examiners continue to exercise regulatory
authority over their respective licenses.
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
CHIROPRACTORS. (a) Physicians licensed by the Texas Medical Board
and chiropractors licensed by the Texas Board of Chiropractic
Examiners may create a partnership that is jointly owned by those
practitioners to perform a professional service that falls within
the scope of practice of those practitioners.
(b) When physicians and chiropractors create a partnership
that is jointly owned by those practitioners, the authority of each
of the practitioners is limited by the scope of practice of the
respective practitioners and none can exercise control over the
other's clinical authority granted by their respective licenses,
either through agreements, bylaws, directives, financial
incentives, or other arrangements that would assert control over
treatment decisions made by the practitioner.
(c) The Texas Medical Board and the Texas Board of
Chiropractic Examiners continue to exercise regulatory authority
over their respective licenses.
SECTION 3. Section 301.012, Business Organizations Code, is
amended by adding Subsection (a-1) and amending Subsection (f) to
read as follows:
(a-1) Persons licensed as physicians by the Texas Medical
Board and persons licensed as chiropractors by the Texas Board of
Chiropractic Examiners may jointly 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.
(f) When doctors of medicine, osteopathy, and podiatry,
[or] doctors of medicine, osteopathy, and optometry or therapeutic
optometry, [or] mental health professionals, or physicians and
chiropractors form a professional entity as provided by Subsections
(a), (a-1), (b), and (c), the authority of each of the practitioners
is limited by the scope of practice of the respective practitioners
and none can exercise control over the other's clinical authority
granted by their respective licenses, either through agreements,
bylaws, directives, financial incentives, or other arrangements
that would assert control over treatment decisions made by the
practitioner.
SECTION 4. Article 2.01, Texas Non-Profit Corporation Act
(Article 1396-2.01, Vernon's Texas Civil Statutes), is amended by
amending Subsection B and adding Subsections E and F to read as
follows:
B. This Act shall not apply to any corporation, nor may any
corporation be organized under this Act or obtain authority to
conduct its affairs in this State under this Act:
(1) If any one or more of its purposes for the conduct
of its affairs in this State is expressly forbidden by any law of
this State.
(2) If any one or more of its purposes for the conduct
of its affairs in this State is to engage in any activity which
cannot lawfully be engaged in without first obtaining a license
under the authority of the laws of this State to engage in such
activity and such license cannot lawfully be granted to a
corporation, except as provided by Subsections [Subsection] C and
F.
(3) If any one or more of its purposes for the conduct
of its affairs in this State is to organize Group Hospital Service,
Rural Credit Unions, Agricultural and Livestock Pools, Mutual Loan
Corporations, Co-operative Credit Associations, Farmers'
Co-operative Societies, Co-operative Marketing Act Corporations,
Rural Electric Co-operative Corporations, Telephone Co-operative
Corporations, or fraternal organizations operating under the lodge
system and heretofore or hereafter incorporated under Articles 1399
through 1407, both inclusive, of Revised Civil Statutes of Texas,
1925.
(4) If any one or more of its purposes for the conduct
of its affairs in this State is to operate a bank under the banking
laws of this State or to operate an insurance company of any type or
character that operates under the insurance laws of this State.
E. Physicians licensed by the Texas Medical Board and
chiropractors licensed by the Texas Board of Chiropractic Examiners
may organize a nonprofit corporation under this Act that is jointly
owned, managed, and controlled by those practitioners 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
chiropractic;
(4) delivering health care to the public; or
(5) instructing the public regarding medical science,
public health, hygiene, or a related matter.
F. When physicians and chiropractors organize a nonprofit
corporation that is jointly owned by those practitioners, the
authority of each of the practitioners is limited by the scope of
practice of the respective practitioners and none can exercise
control over the other's clinical authority granted by their
respective licenses, either through agreements, articles of
incorporation, bylaws, directives, financial incentives, or other
arrangements that would assert control over treatment decisions
made by the practitioner. The Texas Medical Board and the Texas
Board of Chiropractic Examiners continue to exercise regulatory
authority over their respective licenses.
SECTION 5. Subsection (B), Section 2, Texas Professional
Association Act (Article 1528f, Vernon's Texas Civil Statutes), is
amended by adding Subdivision (2-a) and amending Subdivision (4) to
read as follows:
(2-a) Physicians licensed by the Texas Medical Board
and chiropractors licensed by the Texas Board of Chiropractic
Examiners may form an association that is jointly owned by those
practitioners to perform a professional service that falls within
the scope of practice of those practitioners.
(4) When doctors of medicine, osteopathy, and
podiatry, [or] mental health professionals, or physicians and
chiropractors form an association that is jointly owned by those
practitioners, the authority of each of the practitioners is
limited by the scope of practice of the respective practitioners
and none can exercise control over the other's clinical authority
granted by their respective licenses, either through agreements,
bylaws, directives, financial incentives, or other arrangements
that would assert control over treatment decisions made by the
practitioner. The state agencies exercising regulatory control
over professions to which this subdivision applies continue to
exercise regulatory authority over their respective licenses.
SECTION 6. Subsection A, Article 11.01, Texas Limited
Liability Company Act (Article 1528n, Vernon's Texas Civil
Statutes), is amended by amending Subdivision (2) and adding
Subdivision (5) to read as follows:
(2) Except as provided by Subdivisions (3), [and] (4),
and (5) of this subsection, a professional limited liability
company:
(a) may be organized under this Act only for the
purpose of rendering one specific type of professional service and
ancillary services; and
(b) may not render more than one kind of
professional service.
(5) Physicians licensed by the Texas Medical Board and
chiropractors licensed by the Texas Board of Chiropractic Examiners
may organize a professional limited liability company that is
jointly owned by those practitioners to perform a professional
service that falls within the scope of practice of those
practitioners. When physicians and chiropractors organize a
professional limited liability company that is jointly owned by
those practitioners, the authority of each of the practitioners is
limited by the scope of practice of the respective practitioners
and none can exercise control over the other's clinical authority
granted by their respective licenses, either through agreements,
bylaws, directives, financial incentives, or other arrangements
that would assert control over treatment decisions made by the
practitioner. The Texas Medical Board and the Texas Board of
Chiropractic Examiners continue to exercise regulatory authority
over their respective licenses.
SECTION 7. Section 2.02, Texas Revised Partnership Act
(Article 6132b-2.02, Vernon's Texas Civil Statutes), is amended by
adding Subsection (f) to read as follows:
(f) Authority of Physicians and Chiropractors to Create
Partnership. Physicians licensed by the Texas Medical Board and
chiropractors licensed by the Texas Board of Chiropractic Examiners
may create a partnership that is jointly owned by those
practitioners to perform a professional service that falls within
the scope of practice of those practitioners. When physicians and
chiropractors create a partnership that is jointly owned by those
practitioners, the authority of each of the practitioners is
limited by the scope of practice of the respective practitioners
and none can exercise control over the other's clinical authority
granted by their respective licenses, either through agreements,
bylaws, directives, financial incentives, or other arrangements
that would assert control over treatment decisions made by the
practitioner. The Texas Medical Board and the Texas Board of
Chiropractic Examiners continue to exercise regulatory authority
over their respective licenses.
SECTION 8. 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, 2009.