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AN ACT
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relating to covenants not to compete by physicians. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.50, Business & Commerce Code, is |
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amended by amending Subsection (b) and adding Subsection (c) to |
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read as follows: |
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(b) A covenant not to compete relating to the practice of |
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medicine is enforceable against a person licensed as a physician by |
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the Texas Medical Board [State Board of Medical Examiners] if such |
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covenant complies with the following requirements: |
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(1) the covenant must: |
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(A) not deny the physician access to a list of his |
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patients whom he had seen or treated within one year of termination |
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of the contract or employment; |
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(B) provide access to medical records of the |
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physician's patients upon authorization of the patient and any |
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copies of medical records for a reasonable fee as established by the |
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Texas Medical Board [State Board of Medical Examiners] under |
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Section 159.008, Occupations Code; and |
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(C) provide that any access to a list of patients |
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or to patients' medical records after termination of the contract |
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or employment shall not require such list or records to be provided |
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in a format different than that by which such records are maintained |
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except by mutual consent of the parties to the contract; |
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(2) the covenant must provide for a buy out of the |
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covenant by the physician at a reasonable price or, at the option of |
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either party, as determined by a mutually agreed upon arbitrator |
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or, in the case of an inability to agree, an arbitrator of the court |
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whose decision shall be binding on the parties; and |
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(3) the covenant must provide that the physician will |
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not be prohibited from providing continuing care and treatment to a |
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specific patient or patients during the course of an acute illness |
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even after the contract or employment has been terminated. |
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(c) Subsection (b) does not apply to a physician's business |
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ownership interest in a licensed hospital or licensed ambulatory |
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surgical center. |
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SECTION 2. This Act applies only to a covenant entered into |
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on or after the effective date of this Act. A covenant entered into |
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before the effective date of this Act is governed by the law in |
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effect at the time the covenant was entered into, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3623 was passed by the House on May |
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13, 2009, by the following vote: Yeas 146, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3623 was passed by the Senate on May |
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26, 2009, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |