HBA-JRA S.B. 941 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 941
By: Armbrister
Public Health
5/13/1999
Engrossed



BACKGROUND AND PURPOSE 

Current law prohibits persons holding different types of licenses from
forming a limited liability company.  Specifically, a professional limited
liability company organized under this Act may not render more than one
kind of professional service.  A similar constraint is found in Article
1528e, V.T.C.S., which authorizes a professional corporation to be
organized under this Act only for the purpose of rendering one specific
type of professional service and services ancillary thereto. Article 1528f,
V.T.C.S., has a general requirement that all members of an association be
licensed to perform the type of professional service for which the
association was formed, but also allows podiatrists, osteopaths, and
medical doctors to form a jointly-owned association to perform a
professional service in line with their scope of practice.   

S.B. 941 provides an exception to allow multidisciplinary groups of mental
health providers, other than physicians, to form a jointly owned
association or incorporate to perform a professional service in line with
their scope of practice similar to the exception granted to podiatrists,
osteopaths, and medical doctors. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS
HBA-JRA S.B. 941 76(R)
SECTION 1.  Amends Section 4, Article 1528e, V.T.C.S. (Texas Professional
Corporation Act), to authorize professionals, other than physicians,
engaged in related mental health fields to form a professional corporation
under this Act to perform professional services that fall within the scope
of practice of those practitioners.  Limits the authority of each of the
practitioners to the scope of practice of the respective practitioners and
prohibits each from exercising control over the other's clinical authority
granted by their respective licenses either through agreements, bylaws,
directives, financial incentives, or other arrangements that would assert
control over treatment decisions made by the practitioner.  Provides that
the state agencies exercising regulatory control over professions to which
this subsection applies continue to exercise regulatory authority over the
respective licenses of the professionals.  Makes conforming changes. 

SECTION 2.  Amends Section 2(B), Article 1528f, V.T.C.S. (Texas
Professional Association Act), to authorize professionals, other than
physicians, engaged in related mental health fields to form an association
that is jointly owned by those practitioners to perform professional
services that fall within the scope of practice of those practitioners.
Makes conforming changes. 

SECTION 3.  Amends Article 11.01A, Article 1528n, V.T.C.S. (Texas Limited
Liability Company Act), to authorize professionals, other than physicians,
engaged in related mental health fields to form a professional corporation
under this Act to perform professional services that fall within the scope
of practice of those practitioners.  Limits the authority of each of the
practitioners to the scope of practice of the respective practitioners and
prohibits each from exercising control over the other's clinical authority
granted by their respective licenses either through agreements, bylaws,
directives, financial incentives, or other arrangements that would assert
control over treatment decisions made by the practitioner.  Provides that
the state agencies exercising regulatory control over professions  to which
this subsection applies continue to exercise regulatory authority over the
respective licenses of the professionals.  Makes conforming changes. 

SECTION  4.Emergency clause.
  Effective date: upon passage.