Texas 2009 - 81st Regular

Texas House Bill HB3623 Compare Versions

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1	1	H.B. No. 3623
2	2
3	3
4	4	AN ACT
5	5	relating to covenants not to compete by physicians.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 15.50, Business & Commerce Code, is
8	8	amended by amending Subsection (b) and adding Subsection (c) to
9	9	read as follows:
10	10	(b) A covenant not to compete relating to the practice of
11	11	medicine is enforceable against a person licensed as a physician by
12	12	the Texas Medical Board [State Board of Medical Examiners] if such
13	13	covenant complies with the following requirements:
14	14	(1) the covenant must:
15	15	(A) not deny the physician access to a list of his
16	16	patients whom he had seen or treated within one year of termination
17	17	of the contract or employment;
18	18	(B) provide access to medical records of the
19	19	physician's patients upon authorization of the patient and any
20	20	copies of medical records for a reasonable fee as established by the
21	21	Texas Medical Board [State Board of Medical Examiners] under
22	22	Section 159.008, Occupations Code; and
23	23	(C) provide that any access to a list of patients
24	24	or to patients' medical records after termination of the contract
25	25	or employment shall not require such list or records to be provided
26	26	in a format different than that by which such records are maintained
27	27	except by mutual consent of the parties to the contract;
28	28	(2) the covenant must provide for a buy out of the
29	29	covenant by the physician at a reasonable price or, at the option of
30	30	either party, as determined by a mutually agreed upon arbitrator
31	31	or, in the case of an inability to agree, an arbitrator of the court
32	32	whose decision shall be binding on the parties; and
33	33	(3) the covenant must provide that the physician will
34	34	not be prohibited from providing continuing care and treatment to a
35	35	specific patient or patients during the course of an acute illness
36	36	even after the contract or employment has been terminated.
37	37	(c) Subsection (b) does not apply to a physician's business
38	38	ownership interest in a licensed hospital or licensed ambulatory
39	39	surgical center.
40	40	SECTION 2. This Act applies only to a covenant entered into
41	41	on or after the effective date of this Act. A covenant entered into
42	42	before the effective date of this Act is governed by the law in
43	43	effect at the time the covenant was entered into, and that law is
44	44	continued in effect for that purpose.
45	45	SECTION 3. This Act takes effect September 1, 2009.
46	46	______________________________ ______________________________
47	47	President of the Senate Speaker of the House
48	48	I certify that H.B. No. 3623 was passed by the House on May
49	49	13, 2009, by the following vote: Yeas 146, Nays 0, 1 present, not
50	50	voting.
51	51	______________________________
52	52	Chief Clerk of the House
53	53	I certify that H.B. No. 3623 was passed by the Senate on May
54	54	26, 2009, by the following vote: Yeas 31, Nays 0.
55	55	______________________________
56	56	Secretary of the Senate
57	57	APPROVED: _____________________
58	58	Date
59	59	_____________________
60	60	Governor