Texas 2009 - 81st Regular

Texas Senate Bill SB1713 Compare Versions

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1	1	By: Hegar S.B. No. 1713
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to covenants not to compete by physicians.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 15.50, Business & Commerce Code, is
9	9	amended by amending Subsection (b) and adding Subsection (c) to
10	10	read as follows:
11	11	(b) A covenant not to compete relating to the practice of
12	12	medicine is enforceable against a person licensed as a physician by
13	13	the Texas Medical Board [State Board of Medical Examiners] if such
14	14	covenant complies with the following requirements:
15	15	(1) the covenant must:
16	16	(A) not deny the physician access to a list of his
17	17	patients whom he had seen or treated within one year of termination
18	18	of the contract or employment;
19	19	(B) provide access to medical records of the
20	20	physician's patients upon authorization of the patient and any
21	21	copies of medical records for a reasonable fee as established by the
22	22	Texas Medical Board [State Board of Medical Examiners] under
23	23	Section 159.008, Occupations Code; and
24	24	(C) provide that any access to a list of patients
25	25	or to patients' medical records after termination of the contract
26	26	or employment shall not require such list or records to be provided
27	27	in a format different than that by which such records are maintained
28	28	except by mutual consent of the parties to the contract;
29	29	(2) the covenant must provide for a buy out of the
30	30	covenant by the physician at a reasonable price or, at the option of
31	31	either party, as determined by a mutually agreed upon arbitrator
32	32	or, in the case of an inability to agree, an arbitrator of the court
33	33	whose decision shall be binding on the parties; and
34	34	(3) the covenant must provide that the physician will
35	35	not be prohibited from providing continuing care and treatment to a
36	36	specific patient or patients during the course of an acute illness
37	37	even after the contract or employment has been terminated.
38	38	(c) Subsection (b) does not apply to a physician's business
39	39	ownership interest in a licensed hospital or licensed ambulatory
40	40	surgical center.
41	41	SECTION 2. This Act applies only to a covenant entered into
42	42	on or after the effective date of this Act. A covenant entered into
43	43	before the effective date of this Act is governed by the law in
44	44	effect at the time the covenant was entered into, and that law is
45	45	continued in effect for that purpose.
46	46	SECTION 3. This Act takes effect September 1, 2009.