Amendments for HB24-1005
House Journal, March 20
5 HB24-1005 be amended as follows, and as so amended, be referred to
6 the Committee of the Whole with favorable
7 recommendation:
8
9 Amend printed bill, strike everything below the enacting clause and
10 substitute:
11
12 "SECTION 1. In Colorado Revised Statutes, 8-2-113, amend
13 (5)(a) as follows:
14 8-2-113. Unlawful to intimidate worker - agreement not to
15 compete - physician employment agreement - prohibition - exceptions
16 - notice - definitions. (5) (a) (I) EXCEPT AS PROVIDED IN SUBSECTION
17 (5)(a)(III)(A) OF THIS SECTION, any covenant not to compete provision of
18 an employment, partnership, or corporate agreement between physicians
19 that restricts the right of a physician to practice medicine, as defined in
20 section 12-240-107, upon termination of the agreement is void; except
21 that all other provisions of the agreement enforceable at law, including
22 provisions that require the payment of damages in an amount that is
23 reasonably related to the injury suffered by reason of termination DUE TO
24 A BREACH of the agreement are enforceable. Provisions of a covenant not
25 to compete PHYSICIAN EMPLOYMENT AGREEMENT that require the payment
26 of damages upon termination BREACH of the agreement may include
27 damages related to competition BUT MUST NOT INCLUDE:
28 (A) DAMAGES RESULTING FROM BREACH OF A VOID COVENANT
29 NOT TO COMPETE;
30 (B) DAMAGES RELATED TO COMPETITION THAT RESULT FROM A
31 PRIMARY CARE PROVIDER'S TERMINATION OF AN EMPLOYMENT
32 AGREEMENT THAT HAS A TERM OF AT LEAST FOUR YEARS; OR
33 (C) A LIQUIDATED DAMAGES AMOUNT THAT IS NOT AN
34 ENFORCEABLE LIQUIDATED DAMAGES PROVISION AS A MATTER OF LAW,
35 THAT IS NOT REASONABLY RELATED TO THE ACTUAL INJURY SUFFERED, OR
36 THAT EXCEEDS ONE-HALF OF THE PRIMARY CARE PROVIDER'S ANNUAL
37 CASH COMPENSATION IMMEDIATELY PRIOR TO THE TERMINATION OF
38 EMPLOYMENT OR OTHER ASSOCIATION.
39 (II) ANY CONTRACT THAT CONTAINS A DAMAGES CLAUSE THAT IS
40 SUBJECT TO THIS SUBSECTION (5)(a) IS ALSO SUBJECT TO SUBSECTIONS (4),
41 (5)(b), (6), AND (7) OF THIS SECTION.
42 (III) SUBSECTIONS (5)(a)(I) AND (5)(a)(II) OF THIS SECTION:
43 (A) DO NOT APPLY TO A PHYSICIAN WHO HOLDS A MAJORITY
44 INTEREST IN A MEDICAL PRACTICE AND ENTERS INTO AN AGREEMENT TO
45 SELL THE MEDICAL PRACTICE; AND
46 (B) DO APPLY TO A MINORITY OWNER OF A MEDICAL PRACTICE
47 WHO AGREES TO THE SALE OF THE MEDICAL PRACTICE IN WHICH THE
48 MINORITY OWNER HAS INTEREST.
49 SECTION 2. Act subject to petition - effective date -
50 applicability. (1) This act takes effect at 12:01 a.m. on the day following
51 the expiration of the ninety-day period after final adjournment of the
52 general assembly; except that, if a referendum petition is filed pursuant
53 to section 1 (3) of article V of the state constitution against this act or an
54 item, section, or part of this act within such period, then the act, item,
55 section, or part will not take effect unless approved by the people at the
1 general election to be held in November 2024 and, in such case, will take
2 effect on the date of the official declaration of the vote thereon by the
3 governor.
4 (2) This act applies to contracts entered into on or after the
5 applicable effective date of this act.".
6
7
House Journal, March 22
40 Amendment No. 1, Health & Human Services Report, dated March 19,
41 2024, and placed in member's bill file; Report also printed in House
42 Journal, March 20, 2024.
43
44 Amendment No. 2, by Representative deGruy Kennedy:
45
46 Amend the Health and Human Services Committee Report, dated March
47 19, 2024, page 1, line 7, strike "SUBSECTION" and substitute
48 "SUBSECTIONS".
49
50 Page 1, line 8, after "(5)(a)(III)(A)" insert "AND (5)(a)(III)(B)".
51
52 Page 1, line 15, strike "a covenant" and substitute "a covenant".
53
54 Page 1, line 16, strike "PHYSICIAN EMPLOYMENT" and substitute "AN".
55
56 Page 1, line 23, strike "OR".
1 Page 1, line 25, strike "LAW," and substitute "LAW OR".
2
3 Page 1, line 26, strike "SUFFERED," and substitute "SUFFERED;".
4
5 Page 1, line 27, strike "THAT EXCEEDS" and substitute:
6
7 "(D) DAMAGES THAT EXCEED".
8
9 Page 2, line 9, strike "AND".
10
11 Page 2, line 10, after "DO" insert "NOT" and after "OWNER" insert "OF TEN
12 PERCENT OR MORE".
13
14 Page 2, line 12, strike "INTEREST." and substitute "INTEREST; AND
15 (C) DO APPLY TO A MINORITY OWNER OF LESS THAN TEN
16 PERCENT.".
17
18 As amended, ordered engrossed and placed on the Calendar for Third
19 Reading and Final Passage.
20