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