SB613 - Relating to the regulation of the practice of veterinary medicine; increasing a civil penalty.

  89R3057 CMO-F     By: Hinojosa S.B. No. 613       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of the practice of veterinary medicine;   increasing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 801.002, Occupations Code, is amended by   amending Subdivisions (1) and (1-a) and adding Subdivisions (1-b)   and (1-c) to read as follows:                (1)   "Affiliate" means a legal entity that directly or   indirectly controls, is controlled by, or is under common control   with another legal entity or that shares common branding with   another legal entity by means of:                       (A)     the ownership of, or the power to vote, more   than 25 percent of the outstanding shares or participation shares   of any class of voting security of a legal entity;                       (B)     the power to control in any manner the   election of a majority of the directors of, or individuals   exercising similar functions with respect to, a legal entity; or                       (C)     the power to exercise in any manner a   controlling influence over the management or policies of a legal   entity, including by ownership of equity or securities or by   contract.                 (1-a) "Board" means the State Board of Veterinary   Medical Examiners.                 (1-b) "Business entity" means an entity recognized by   law through which business for profit is conducted, including:                       (A)     a private equity firm, service management   organization, sole proprietorship, corporation, limited or general   partnership, limited liability company, limited liability   partnership, business trust, investment asset manager, real estate   investment trust, joint venture, joint stock company, holding   company, receivership, firm, organization, estate, association, or   other entity or successor in interest recognized by law through   which business for profit is conducted; and                       (B)     a wholly owned subsidiary, majority-owned   subsidiary, parent company, or affiliate of an entity or   association described by Paragraph (A).                 (1-c)  [ (1-a) ]  "Certified veterinary assistant" means   a person who has been certified as a certified veterinary assistant   by the Texas Veterinary Medical Association and is employed by a   licensed veterinarian.          SECTION 2.  Section 801.352, Occupations Code, is amended by   amending Subsection (a) and adding Subsections (c-1) and (e) to   read as follows:          (a)  The professional services of a veterinarian may not be   controlled or exploited , including by contract, by a person who:                (1)  is not a veterinarian; and                (2)  intervenes between the veterinarian and the   veterinarian's client.           (c-1)     Unless each owner, partner, or shareholder, as   appropriate, of a business entity holds a license to practice   veterinary medicine issued under this chapter:                 (1)     for purposes of Subsection (a), the business   entity is considered a person who is not a veterinarian; and                 (2)     for purposes of Subsections (b) and (c), the   business entity is considered a person who does not hold a license   to practice veterinary medicine.           (e)  For purposes of this section:                 (1)     conduct prohibited by Section 801.506(b) is   considered to be an intervention with respect to a veterinarian's   practice of veterinary medicine; and                 (2)     a contract or other arrangement between a   veterinarian and another person that provides the person with a   controlling influence over the veterinarian's practice of   veterinary medicine, including by authorizing any conduct   prohibited by Section 801.506(b), is considered to be submission to   interference with the practice of veterinary medicine.          SECTION 3.  Subchapter H, Chapter 801, Occupations Code, is   amended by adding Section 801.3525 to read as follows:           Sec.   801.3525.     CERTAIN CONTRACTS AND CONTRACT PROVISIONS   PROHIBITED. (a)   A contract between a veterinarian and a private   equity firm, or a person owned or controlled in any manner or to any   extent by a private equity firm, that involves either the   furnishing of business or management services to the veterinarian   or the purchase of property related to the veterinarian's practice   may not include a provision that prohibits the veterinarian from:                 (1)     competing with another veterinarian in which the   private equity firm or person has a financial interest; or                 (2)     disparaging or commenting on any issues involving   the quality of care, utilization of care, ethical or professional   standards or guidelines, or revenue-increasing strategies employed   or influenced by the private equity firm or person.           (b)     A contract provision described by Subsection (a) is   void.           (c)     A veterinarian may not enter into a contract described   by Section 801.506(b)(15) with a private equity firm or a person   owned or controlled in any manner or to any extent by a private   equity firm.   A contract described by this subsection is void.          SECTION 4.  Section 801.354, Occupations Code, is amended to   read as follows:          Sec. 801.354.  AUTHORIZED BUSINESS PRACTICES.   (a)  It is not   a violation of this chapter for a veterinarian, or a business entity   authorized under this chapter to render veterinary services, to , in   connection with providing veterinary services :                (1)  lease space for the purpose of providing   veterinary services;                (2)  pay for franchise fees [ or other services ] on a   percentage-of-receipts basis; [ or ]                (3)  sell, transfer, or assign accounts receivable to a   lending institution;                 (4)     repair, renovate, or replace any facility,   information system, or medical equipment owned or leased by the   veterinarian or business entity;                 (5)     provide accounting, financial planning, payroll,   bookkeeping, budget, investment, billing and collection, tax   compliance, or similar financial services;                 (6)     provide clerical, reception, secretarial,   messaging, scheduling, boarding, cleaning, or similar services;                 (7)     provide advertising, marketing, or public   relations services in compliance with rules adopted by the board;                 (8)     provide contract negotiation, drafting, or   similar legal services;                 (9)     assist in recruiting, training, including   continuing education, or legal and logistical peer review services;   or                 (10)     provide insurance, purchasing, or claims   services .           (b)     The payment or receipt of consideration for services   described by Subsection (a) that is based on a percentage of gross   revenue, or a similar type of contract, is not a violation of this   chapter if the consideration is commensurate with:                 (1)  the value of the services provided; or                 (2)     the fair rental value of any space leased or   provided.          SECTION 5.  Section 801.402, Occupations Code, is amended to   read as follows:          Sec. 801.402.  GENERAL GROUNDS FOR LICENSE DENIAL OR   DISCIPLINARY ACTION.  A person is subject to denial of a license or   to disciplinary action under Section 801.401 if the person:                (1)  presents to the board dishonest or fraudulent   evidence of the person's qualifications;                (2)  commits fraud or deception in the examination   process or to obtain a license;                (3)  is chronically or habitually intoxicated,   chemically dependent, or addicted to drugs;                (4)  engages in dishonest or illegal practices in, or   connected with, the practice of veterinary medicine or the practice   of equine dentistry;                (5)  is convicted of a felony under the laws of this   state, another state, or the United States;                (6)  engages in practices or conduct that violates this   chapter, a rule adopted by the board, or the board's rules of   professional conduct;                (7)  permits another to use the person's license to   practice veterinary medicine or to practice equine dentistry in   this state;                (8)  fraudulently issues a health certificate,   vaccination certificate, test chart, or other form used in the   practice of veterinary medicine or the practice of equine dentistry   that relates to the presence or absence of animal disease;                (9)  issues a false certificate relating to the sale   for human consumption of inedible animal products;                (10)  commits fraud in connection with the application   or reporting of a test of animal disease;                (11)  pays or receives a kickback, rebate, bonus, or   other remuneration for treating an animal or for referring a client   to another provider of veterinary or equine dental services or   goods;                (12)  performs or prescribes unnecessary or   unauthorized treatment;                (13)  orders a prescription drug or controlled   substance for the treatment of an animal without first establishing   a veterinarian-client-patient relationship;                (14)  refuses to admit a board representative to   inspect the person's client and patient records and business   premises during regular business hours;                (15)  fails to keep the person's equipment and business   premises in a sanitary condition;                (16)  commits gross malpractice or a pattern of acts   that indicate consistent malpractice, negligence, or incompetence   in the practice of veterinary medicine or the practice of equi [Text truncated for display. Full text available on LegiScan.]