88R13733 SRA-D
By: Smith H.B. No. 5149
A BILL TO BE ENTITLED
AN ACT
relating to covenants not to compete for certain psychology or
counseling professions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.50, Business & Commerce Code, is
amended by amending Subsection (a) and adding Subsection (b-1) to
read as follows:
(a) Notwithstanding Section 15.05 of this code, and subject
to any applicable provision of Subsection (b) or (b-1), a covenant
not to compete is enforceable if it is ancillary to or part of an
otherwise enforceable agreement at the time the agreement is made
to the extent that it contains limitations as to time, geographical
area, and scope of activity to be restrained that are reasonable and
do not impose a greater restraint than is necessary to protect the
goodwill or other business interest of the promisee.
(b-1) A covenant not to compete relating to the practice of
psychology or other counseling profession is enforceable against a
person licensed under Subtitle I, Title 3, Occupations Code, if the
covenant complies with the following requirements:
(1) the covenant must:
(A) not deny the person access to a list of the
person's clients or patients who have been provided services within
one year of termination of the contract or employment;
(B) provide access to client or patient records
upon authorization of the client or patient and any copies of client
or patient records for a reasonable fee as established by the
appropriate licensing or regulatory authority; and
(C) provide that any access to a list of clients
or patients or to clients' or patients' records after termination of
the contract or employment shall not require the list or records to
be provided in a format different than that by which the records are
maintained except by mutual consent of the parties to the contract;
(2) the covenant must provide for a buyout of the
covenant by the person 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 person will not
be prohibited from providing continuing services to a specific
client or patient during the course of an acute event even after the
contract or employment has been terminated.
SECTION 2. This Act applies only to an agreement entered
into on or after the effective date of this Act. An agreement
entered into before the effective date of this Act is governed by
the law in effect at the time the agreement was entered into, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2023.