Bill Text: TX HB5149 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to covenants not to compete for certain psychology or counseling professions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-24 - Referred to Public Health [HB5149 Detail]
Download: Texas-2023-HB5149-Introduced.html
88R13733 SRA-D | ||
By: Smith | H.B. No. 5149 |
|
||
|
||
relating to covenants not to compete for certain psychology or | ||
counseling professions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 15.50, Business & Commerce Code, is | ||
amended by amending Subsection (a) and adding Subsection (b-1) to | ||
read as follows: | ||
(a) Notwithstanding Section 15.05 of this code, and subject | ||
to any applicable provision of Subsection (b) or (b-1), a covenant | ||
not to compete is enforceable if it is ancillary to or part of an | ||
otherwise enforceable agreement at the time the agreement is made | ||
to the extent that it contains limitations as to time, geographical | ||
area, and scope of activity to be restrained that are reasonable and | ||
do not impose a greater restraint than is necessary to protect the | ||
goodwill or other business interest of the promisee. | ||
(b-1) A covenant not to compete relating to the practice of | ||
psychology or other counseling profession is enforceable against a | ||
person licensed under Subtitle I, Title 3, Occupations Code, if the | ||
covenant complies with the following requirements: | ||
(1) the covenant must: | ||
(A) not deny the person access to a list of the | ||
person's clients or patients who have been provided services within | ||
one year of termination of the contract or employment; | ||
(B) provide access to client or patient records | ||
upon authorization of the client or patient and any copies of client | ||
or patient records for a reasonable fee as established by the | ||
appropriate licensing or regulatory authority; and | ||
(C) provide that any access to a list of clients | ||
or patients or to clients' or patients' records after termination of | ||
the contract or employment shall not require the list or records to | ||
be provided in a format different than that by which the records are | ||
maintained except by mutual consent of the parties to the contract; | ||
(2) the covenant must provide for a buyout of the | ||
covenant by the person at a reasonable price or, at the option of | ||
either party, as determined by a mutually agreed upon arbitrator | ||
or, in the case of an inability to agree, an arbitrator of the court | ||
whose decision shall be binding on the parties; and | ||
(3) the covenant must provide that the person will not | ||
be prohibited from providing continuing services to a specific | ||
client or patient during the course of an acute event even after the | ||
contract or employment has been terminated. | ||
SECTION 2. This Act applies only to an agreement entered | ||
into on or after the effective date of this Act. An agreement | ||
entered into before the effective date of this Act is governed by | ||
the law in effect at the time the agreement was entered into, and | ||
that law is continued in effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2023. |