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.