Texas 2025 - 89th Regular

Texas Senate Bill SB613 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R3057 CMO-F
2	2	By: Hinojosa of Hidalgo S.B. No. 613
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of the practice of veterinary medicine;
10	10	increasing a civil penalty.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 801.002, Occupations Code, is amended by
13	13	amending Subdivisions (1) and (1-a) and adding Subdivisions (1-b)
14	14	and (1-c) to read as follows:
15	15	(1) "Affiliate" means a legal entity that directly or
16	16	indirectly controls, is controlled by, or is under common control
17	17	with another legal entity or that shares common branding with
18	18	another legal entity by means of:
19	19	(A) the ownership of, or the power to vote, more
20	20	than 25 percent of the outstanding shares or participation shares
21	21	of any class of voting security of a legal entity;
22	22	(B) the power to control in any manner the
23	23	election of a majority of the directors of, or individuals
24	24	exercising similar functions with respect to, a legal entity; or
25	25	(C) the power to exercise in any manner a
26	26	controlling influence over the management or policies of a legal
27	27	entity, including by ownership of equity or securities or by
28	28	contract.
29	29	(1-a) "Board" means the State Board of Veterinary
30	30	Medical Examiners.
31	31	(1-b) "Business entity" means an entity recognized by
32	32	law through which business for profit is conducted, including:
33	33	(A) a private equity firm, service management
34	34	organization, sole proprietorship, corporation, limited or general
35	35	partnership, limited liability company, limited liability
36	36	partnership, business trust, investment asset manager, real estate
37	37	investment trust, joint venture, joint stock company, holding
38	38	company, receivership, firm, organization, estate, association, or
39	39	other entity or successor in interest recognized by law through
40	40	which business for profit is conducted; and
41	41	(B) a wholly owned subsidiary, majority-owned
42	42	subsidiary, parent company, or affiliate of an entity or
43	43	association described by Paragraph (A).
44	44	(1-c) [(1-a)] "Certified veterinary assistant" means
45	45	a person who has been certified as a certified veterinary assistant
46	46	by the Texas Veterinary Medical Association and is employed by a
47	47	licensed veterinarian.
48	48	SECTION 2. Section 801.352, Occupations Code, is amended by
49	49	amending Subsection (a) and adding Subsections (c-1) and (e) to
50	50	read as follows:
51	51	(a) The professional services of a veterinarian may not be
52	52	controlled or exploited, including by contract, by a person who:
53	53	(1) is not a veterinarian; and
54	54	(2) intervenes between the veterinarian and the
55	55	veterinarian's client.
56	56	(c-1) Unless each owner, partner, or shareholder, as
57	57	appropriate, of a business entity holds a license to practice
58	58	veterinary medicine issued under this chapter:
59	59	(1) for purposes of Subsection (a), the business
60	60	entity is considered a person who is not a veterinarian; and
61	61	(2) for purposes of Subsections (b) and (c), the
62	62	business entity is considered a person who does not hold a license
63	63	to practice veterinary medicine.
64	64	(e) For purposes of this section:
65	65	(1) conduct prohibited by Section 801.506(b) is
66	66	considered to be an intervention with respect to a veterinarian's
67	67	practice of veterinary medicine; and
68	68	(2) a contract or other arrangement between a
69	69	veterinarian and another person that provides the person with a
70	70	controlling influence over the veterinarian's practice of
71	71	veterinary medicine, including by authorizing any conduct
72	72	prohibited by Section 801.506(b), is considered to be submission to
73	73	interference with the practice of veterinary medicine.
74	74	SECTION 3. Subchapter H, Chapter 801, Occupations Code, is
75	75	amended by adding Section 801.3525 to read as follows:
76	76	Sec. 801.3525. CERTAIN CONTRACTS AND CONTRACT PROVISIONS
77	77	PROHIBITED. (a) A contract between a veterinarian and a private
78	78	equity firm, or a person owned or controlled in any manner or to any
79	79	extent by a private equity firm, that involves either the
80	80	furnishing of business or management services to the veterinarian
81	81	or the purchase of property related to the veterinarian's practice
82	82	may not include a provision that prohibits the veterinarian from:
83	83	(1) competing with another veterinarian in which the
84	84	private equity firm or person has a financial interest; or
85	85	(2) disparaging or commenting on any issues involving
86	86	the quality of care, utilization of care, ethical or professional
87	87	standards or guidelines, or revenue-increasing strategies employed
88	88	or influenced by the private equity firm or person.
89	89	(b) A contract provision described by Subsection (a) is
90	90	void.
91	91	(c) A veterinarian may not enter into a contract described
92	92	by Section 801.506(b)(15) with a private equity firm or a person
93	93	owned or controlled in any manner or to any extent by a private
94	94	equity firm. A contract described by this subsection is void.
95	95	SECTION 4. Section 801.354, Occupations Code, is amended to
96	96	read as follows:
97	97	Sec. 801.354. AUTHORIZED BUSINESS PRACTICES. (a) It is not
98	98	a violation of this chapter for a veterinarian, or a business entity
99	99	authorized under this chapter to render veterinary services, to, in
100	100	connection with providing veterinary services:
101	101	(1) lease space for the purpose of providing
102	102	veterinary services;
103	103	(2) pay for franchise fees [or other services] on a
104	104	percentage-of-receipts basis; [or]
105	105	(3) sell, transfer, or assign accounts receivable to a
106	106	lending institution;
107	107	(4) repair, renovate, or replace any facility,
108	108	information system, or medical equipment owned or leased by the
109	109	veterinarian or business entity;
110	110	(5) provide accounting, financial planning, payroll,
111	111	bookkeeping, budget, investment, billing and collection, tax
112	112	compliance, or similar financial services;
113	113	(6) provide clerical, reception, secretarial,
114	114	messaging, scheduling, boarding, cleaning, or similar services;
115	115	(7) provide advertising, marketing, or public
116	116	relations services in compliance with rules adopted by the board;
117	117	(8) provide contract negotiation, drafting, or
118	118	similar legal services;
119	119	(9) assist in recruiting, training, including
120	120	continuing education, or legal and logistical peer review services;
121	121	or
122	122	(10) provide insurance, purchasing, or claims
123	123	services.
124	124	(b) The payment or receipt of consideration for services
125	125	described by Subsection (a) that is based on a percentage of gross
126	126	revenue, or a similar type of contract, is not a violation of this
127	127	chapter if the consideration is commensurate with:
128	128	(1) the value of the services provided; or
129	129	(2) the fair rental value of any space leased or
130	130	provided.
131	131	SECTION 5. Section 801.402, Occupations Code, is amended to
132	132	read as follows:
133	133	Sec. 801.402. GENERAL GROUNDS FOR LICENSE DENIAL OR
134	134	DISCIPLINARY ACTION. A person is subject to denial of a license or
135	135	to disciplinary action under Section 801.401 if the person:
136	136	(1) presents to the board dishonest or fraudulent
137	137	evidence of the person's qualifications;
138	138	(2) commits fraud or deception in the examination
139	139	process or to obtain a license;
140	140	(3) is chronically or habitually intoxicated,
141	141	chemically dependent, or addicted to drugs;
142	142	(4) engages in dishonest or illegal practices in, or
143	143	connected with, the practice of veterinary medicine or the practice
144	144	of equine dentistry;
145	145	(5) is convicted of a felony under the laws of this
146	146	state, another state, or the United States;
147	147	(6) engages in practices or conduct that violates this
148	148	chapter, a rule adopted by the board, or the board's rules of
149	149	professional conduct;
150	150	(7) permits another to use the person's license to
151	151	practice veterinary medicine or to practice equine dentistry in
152	152	this state;
153	153	(8) fraudulently issues a health certificate,
154	154	vaccination certificate, test chart, or other form used in the
155	155	practice of veterinary medicine or the practice of equine dentistry
156	156	that relates to the presence or absence of animal disease;
157	157	(9) issues a false certificate relating to the sale
158	158	for human consumption of inedible animal products;
159	159	(10) commits fraud in connection with the application
160	160	or reporting of a test of animal disease;
161	161	(11) pays or receives a kickback, rebate, bonus, or
162	162	other remuneration for treating an animal or for referring a client
163	163	to another provider of veterinary or equine dental services or
164	164	goods;
165	165	(12) performs or prescribes unnecessary or
166	166	unauthorized treatment;
167	167	(13) orders a prescription drug or controlled
168	168	substance for the treatment of an animal without first establishing
169	169	a veterinarian-client-patient relationship;
170	170	(14) refuses to admit a board representative to
171	171	inspect the person's client and patient records and business
172	172	premises during regular business hours;
173	173	(15) fails to keep the person's equipment and business
174	174	premises in a sanitary condition;
175	175	(16) commits gross malpractice or a pattern of acts
176	176	that indicate consistent malpractice, negligence, or incompetence
177	177	in the practice of veterinary medicine or the practice of equine
178	178	dentistry;
179	179	(17) is subject to disciplinary action in another
180	180	jurisdiction, including the suspension, probation, or revocation
181	181	of a license to practice veterinary medicine or to practice equine
182	182	dentistry issued by another jurisdiction;
183	183	(18) is convicted for an offense under Section 42.09,
184	184	42.091, or 42.092, Penal Code;
185	185	(19) represents the person as a veterinarian without a
186	186	license issued under this chapter;
187	187	(20) practices veterinary medicine or assists in the
188	188	practice of veterinary medicine without a license issued under this
189	189	chapter, including by directly or indirectly aiding or abetting an
190	190	unlicensed person in connection with the practice of veterinary
191	191	medicine without the appropriate license; or
192	192	(21) violates Section 801.353 or a rule adopted by the
193	193	board related to confidentiality.
194	194	SECTION 6. Section 801.502, Occupations Code, is amended by
195	195	adding Subsections (c) and (d) to read as follows:
196	196	(c) Violation of an injunction issued under this section may
197	197	be punished as contempt. Instead of the fine authorized by Section
198	198	21.002(b), Government Code, the punishment for contempt under this
199	199	section is a fine of not more than $1,000 for each day the violation
200	200	of the injunction continues.
201	201	(d) A district or county attorney who prevails in an action
202	202	brought under this section may recover reasonable attorney's fees
203	203	and court costs.
204	204	SECTION 7. Section 801.503, Occupations Code, is amended by
205	205	amending Subsections (a) and (b) and adding Subsections (c) and (d)
206	206	to read as follows:
207	207	(a) A person not licensed under this chapter, including a
208	208	corporation, organization, business trust, estate, trust,
209	209	partnership, association, or other legal entity, who violates this
210	210	chapter or a rule adopted by the board under this chapter is subject
211	211	to a civil penalty of $5,000 [$1,000] for each day of violation.
212	212	(b) The attorney general or a district or county attorney
213	213	may bring an action to recover a civil penalty authorized by this
214	214	section. At the request of the board, the attorney general shall
215	215	bring the [an] action [to recover a civil penalty authorized by this
216	216	section].
217	217	(c) The venue provisions of Section 801.502(b) apply to an
218	218	action brought against a person subject to the civil penalty under
219	219	this section.
220	220	(d) A district or county attorney who prevails in an action
221	221	brought under this section may recover reasonable attorney's fees
222	222	and court costs.
223	223	SECTION 8. Section 801.504(a), Occupations Code, is amended
224	224	to read as follows:
225	225	(a) A person, including an entity, commits an offense if the
226	226	person violates this chapter or a rule adopted by the board under
227	227	this chapter.
228	228	SECTION 9. Subchapter K, Chapter 801, Occupations Code, is
229	229	amended by adding Section 801.5045 to read as follows:
230	230	Sec. 801.5045. DUTY TO PROVIDE EVIDENCE OF CRIMINAL
231	231	OFFENSE. Notwithstanding Section 801.207, the board shall provide
232	232	to the appropriate prosecuting attorney a copy of any evidence in
233	233	the board's possession of an offense under Section 801.504.
234	234	SECTION 10. Sections 801.506(a) and (b), Occupations Code,
235	235	are amended to read as follows:
236	236	(a) A business entity [sole proprietorship, partnership, or
237	237	corporation] may not engage in veterinary medicine unless each
238	238	[the] owner, [each] partner, [or each] shareholder, director, or
239	239	officer, as appropriate, holds a license to practice veterinary
240	240	medicine issued under this chapter.
241	241	(b) A business entity [corporation, organization, business
242	242	trust, estate, trust, partnership, association, or other legal
243	243	entity] not owned exclusively by one or more persons licensed to
244	244	practice veterinary medicine under this chapter may not:
245	245	(1) engage in veterinary medicine;
246	246	(2) employ a veterinarian to practice veterinary
247	247	medicine;
248	248	(3) determine the compensation of a veterinarian for
249	249	the practice of veterinary medicine;
250	250	(4) determine the fees or other amounts to be charged
251	251	by a veterinarian for the veterinarian's practice of veterinary
252	252	medicine;
253	253	(5) determine the number of patients a veterinarian
254	254	may see in a specified time or the number of hours a veterinarian
255	255	may work;
256	256	(6) determine the amount of time a veterinarian may
257	257	spend with a patient;
258	258	(7) own a drug, biologic, anesthetic, apparatus, or
259	259	other therapeutic or diagnostic substance or technique used in the
260	260	practice of veterinary medicine, unless owned in compliance with
261	261	applicable state or federal law;
262	262	(8) own or otherwise determine the content of patient
263	263	and business records of a veterinarian in violation of Section
264	264	801.355(f);
265	265	(9) mandate compliance with specific professional
266	266	standards, protocols, or practice guidelines relating to the
267	267	practice of veterinary medicine;
268	268	(10) place limitations or conditions on
269	269	communications the subject of which are primarily clinical between
270	270	a veterinarian and the veterinarian's clients;
271	271	(11) require a veterinarian to make a referral to
272	272	another provider of veterinary or equine dental services or goods
273	273	in violation of Section 801.402;
274	274	(12) reduce or delay any financial benefit owed to or
275	275	institute any adverse change to the working conditions of a
276	276	veterinarian in response to the veterinarian reporting a violation
277	277	of a law regulating the practice of veterinary medicine;
278	278	(13) require a veterinarian to violate Section 801.353
279	279	or a rule adopted by the board related to the confidential
280	280	relationship between the veterinarian and the veterinarian's
281	281	client;
282	282	(14) determine the coding and billing procedures for
283	283	the veterinarian's practice of veterinary medicine;
284	284	(15) enter into a contract with a veterinarian to
285	285	provide business or management services in exchange for a
286	286	percentage of revenue received directly or indirectly from:
287	287	(A) the performance of a veterinary service by
288	288	the veterinarian;
289	289	(B) the collection of the veterinarian's
290	290	accounts receivable; or
291	291	(C) fees or other amounts to be charged by the
292	292	veterinarian or passed through by the veterinarian directly or
293	293	indirectly to a client or insurer covering veterinary services;
294	294	(16) set conditions under which a veterinarian is
295	295	legally obligated to enter into a contract with a vendor or insurer;
296	296	(17) set conditions under which a veterinarian is
297	297	legally obligated to enter into a contract with another
298	298	veterinarian for the delivery of care; or
299	299	(18) exercise control over, exploit, be delegated the
300	300	power to approve, intervene in, or interfere with, a
301	301	veterinarian's:
302	302	(A) selection or use of a type or quality of
303	303	medical supplies, medical equipment, or pharmaceuticals in the
304	304	practice of veterinary medicine;
305	305	(B) professional medical judgment regarding the
306	306	health of an animal patient; or
307	307	(C) practice of veterinary medicine.
308	308	SECTION 11. Chapter 801, Occupations Code, as amended by
309	309	this Act, applies only to a contract entered into or renewed on or
310	310	after the effective date of this Act. A contract entered into or
311	311	renewed before the effective date of this Act is governed by the law
312	312	in effect on the date the contract was entered into or renewed, and
313	313	the former law is continued in effect for that purpose.
314	314	SECTION 12. Chapter 801, Occupations Code, as amended by
315	315	this Act, applies only to conduct that occurs on or after the
316	316	effective date of this Act. Conduct that occurs before the
317	317	effective date of this Act is governed by the law in effect on the
318	318	date the conduct occurred, and the former law is continued in effect
319	319	for that purpose.
320	320	SECTION 13. This Act takes effect September 1, 2025.