Texas 2023 - 88th Regular

Texas House Bill HB3139 Compare Versions

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1	1	88R8417 SRA-F
2	2	By: Jetton H.B. No. 3139
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the enforceability of covenants not to compete against
8	8	physicians.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 15.50, Business & Commerce Code, is
11	11	amended to read as follows:
12	12	Sec. 15.50. CRITERIA FOR ENFORCEABILITY OF COVENANTS NOT TO
13	13	COMPETE. (a) Notwithstanding Section 15.05 of this code, and
14	14	subject to any applicable provision of this section [Subsection
15	15	(b)], a covenant not to compete is enforceable if it is ancillary to
16	16	or part of an otherwise enforceable agreement at the time the
17	17	agreement is made to the extent that it contains limitations as to
18	18	time, geographical area, and scope of activity to be restrained
19	19	that are reasonable and do not impose a greater restraint than is
20	20	necessary to protect the goodwill or other business interest of the
21	21	promisee.
22	22	(b) Except as provided by Subsection (b-1), a [A] covenant
23	23	not to compete relating to the practice of medicine is enforceable
24	24	against a person licensed as a physician by the Texas Medical Board
25	25	if such covenant complies with the following requirements:
26	26	(1) the covenant must:
27	27	(A) not deny the physician access to a list of his
28	28	patients whom he had seen or treated within one year of termination
29	29	of the contract or employment;
30	30	(B) provide access to medical records of the
31	31	physician's patients upon authorization of the patient and any
32	32	copies of medical records for a reasonable fee as established by the
33	33	Texas Medical Board under Section 159.008, Occupations Code; and
34	34	(C) provide that any access to a list of patients
35	35	or to patients' medical records after termination of the contract
36	36	or employment shall not require such list or records to be provided
37	37	in a format different than that by which such records are maintained
38	38	except by mutual consent of the parties to the contract;
39	39	(2) the covenant must provide for a buy out of the
40	40	covenant by the physician at a reasonable price or, at the option of
41	41	either party, as determined by a mutually agreed upon arbitrator
42	42	or, in the case of an inability to agree, an arbitrator of the court
43	43	whose decision shall be binding on the parties; and
44	44	(3) the covenant must provide that the physician will
45	45	not be prohibited from providing continuing care and treatment to a
46	46	specific patient or patients during the course of an acute illness
47	47	even after the contract or employment has been terminated.
48	48	(b-1) A covenant not to compete relating to the practice of
49	49	medicine that restricts a person licensed as a physician by the
50	50	Texas Medical Board from practicing medicine in any geographic area
51	51	for any period of time after the termination of a contract, a
52	52	partnership, employment, or another professional relationship is
53	53	void and unenforceable. This subsection does not apply to a
54	54	covenant not to compete that:
55	55	(1) places a restriction on research conducted by the
56	56	physician under the terms of a contract or in furtherance of a
57	57	partnership, employment, or another professional relationship
58	58	unless the restriction impairs the continuing care and treatment of
59	59	a patient receiving care or treatment as a part of the research;
60	60	(2) restricts a physician, other than a primary care
61	61	physician or pediatrician, who has an adjusted gross income for
62	62	federal income tax purposes of at least $250,000 for the current or
63	63	preceding tax year, and that income is attributable to compensation
64	64	earned as a physician; or
65	65	(3) is ancillary to the sale, transfer, or other
66	66	disposition of any portion of a physician's ownership interest in a
67	67	medical practice or a medical practice management company.
68	68	(c) This section [Subsection (b)] does not apply to a
69	69	physician's business ownership interest in a licensed hospital or
70	70	licensed ambulatory surgical center.
71	71	SECTION 2. This Act applies only to an agreement entered
72	72	into on or after the effective date of this Act. An agreement
73	73	entered into before the effective date of this Act is governed by
74	74	the law in effect at the time the agreement was entered into, and
75	75	that law is continued in effect for that purpose.
76	76	SECTION 3. This Act takes effect September 1, 2023.