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SECOND REGULAR SESSION
HOUSE BILL NO. 2979
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE HARDWICK.
6359H.02I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 191, RSMo, by adding thereto one new section relating to covenants not to
compete involving physicians.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 191, RSMo, is amended by adding thereto one new section, to be
2 known as section 191.260, to read as follows:
191.260. 1. The pr ovisions of this section shall be known and may be cited as the
2 "Missouri Rural Doctors Act".
3 2. As used in this section, the following terms mean:
4 (1) "Covenant not to compete", an agr eement or part of a contract of
5 employment in which the employee agrees to:
6 (a) Refrain fr om competition with an employer for a specific period of time upon
7 termination or conclusion of the employment;
8 (b) Refrain fr om competition with an employer within a particular geographic
9 ar ea upon termination or conclusion of the employment; or
10 (c) Refrain fr om competition with an employer for a specific period of time and
11 within a particular geographic area upon termination or conclusion of the employment;
12 (2) "Nonpr ofit employer", an entity that employs one or mor e physicians and
13 that is owned or operated by a nonprofi t corporation that is exempt fr om federal income
14 tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended;
15 (3) "Physician", a physician licensed under chapter 334;
16 (4) "Resear ch university hospital", a hospital, as defined in section 197.020,
17 owned or operated by a r esear ch university .
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 3. A covenant not to compete between a physician and a nonprofi t employer
19 shall be valid and enforceab le only if:
20 (1) The physician is pr oviding health care services in a clinical setting;
21 (2) The covenant not to compete does not res trict the physician's competitive
22 activities for a period of mor e than thr ee hundred sixty-five days; and
23 (3) The covenant not to compete does not res trict the physician's competitive
24 activities in a geographic area of mor e than five miles fro m the addr ess of the office or
25 facility in which the physician pr ovides health care services in a clinical setting.
26 4. The provi sions of this section shall not apply to any covenant not to compete
27 between a physician and a r esear ch university hospital.
✔
HB 2979 2