HBA-MPM H.B. 3285 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3285 By: Van de Putte Public Health 3/25/1999 Introduced BACKGROUND AND PURPOSE In today's medical practice environment, many physicians have grouped together to form multispecialty clinics, leaving fewer solo practitioners. When a physician leaves a group to enter his or her own practice or another group practice, the ability of the departing physician to treat his or her patients may be hindered due to a covenant not to compete, a contractual clause in the physician's work contract. This clause may make it difficult for the patient to have his or her records transferred to the departing physician's new office and to receive continuing care from that physician. H.B. 3285 provides a "buy-out" clause in a covenant not to compete, as well as other provisions designed to allow a departing physician to provide his or her patients with continued care. 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 SECTION 1. Amends Section 15.50, Business and Commerce Code, as follows: Sec. 15.50. CRITERIA FOR ENFORCEABILITY OF COVENANTS NOT TO COMPETE. (a) Provides that a covenant not to compete under this section is subject to any applicable provision of Subsection (b). (b) Provides that a covenant not to compete is enforceable against a person licensed as a physician by the Texas State Board of Medical Examiners (board) if the covenant also complies with certain requirements regarding access to copies of patients' medical records after a termination of contract or employment, a buy-out provision, termination of contract under bad faith, and continued treatment after the termination of a contract. SECTION 2. Provides that this Act applies to a covenant entered into before, on, or after the effective date of this Act. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause.