BILL ANALYSIS
AB 1152
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Date of Hearing: May 12, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 1152 (Anderson) - As Introduced: February 27, 2009
SUBJECT : Professional corporations: licensed physical
therapists.
SUMMARY : Adds physical therapists (PT) to the individuals who
may be shareholders, officers, directors, or professional
employees of a medical or podiatric medical corporation so long
as the sum of all shares owned by those licensed persons does
not exceed 49 percent of the total number of shares, and so long
as the number of those licensed persons owning shares in the
professional corporation so designated herein does not exceed
the number of persons licensed by the governmental agency
regulating the designated professional corporation.
EXISTING LAW :
1)Defines a "professional corporation" as one that renders
professional services in a single profession, except as
otherwise authorized in Corporations Code, Section 13401.5.
2)Authorizes medical corporations to permit the following
licensees be shareholders, officers, directors or professional
employees:
a) Licensed doctors of podiatric medicine;
b) Licensed psychologists;
c) Registered nurses;
d) Licensed optometrists;
e) Licensed marriage and family therapists;
f) Licensed clinical social workers;
g) Licensed physician assistants;
h) Licensed chiropractors;
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i) Licensed acupuncturists; and,
j) Naturopathic doctors.
3)Authorizes podiatric medical corporations to permit the
following licensees be shareholders, officers, directors or
professional employees:
a) Licensed physicians and surgeons;
b) Licensed psychologists;
c) Registered nurses;
d) Licensed optometrists;
e) Licensed chiropractors;
f) Licensed acupuncturists; and,
g) Naturopathic doctors.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal.
COMMENTS :
Purpose of this bill . According to the author's office, "Late
last year, some members of CPMA were informed that counsel to
the Department of Consumer Affairs (DCA) believes that it is now
impermissible for a podiatric medical corporation or a medical
corporation to employ a PT. The rationale for this opinion is
that in 2003 when the naturopaths had their practice act
established the list of professionals that they were authorized
to employ included PTs. The list of professionals that a
medical corporation and podiatric medical corporation can employ
has never included PTs, despite the fact that both have employed
PTs for years. According to the DCA counsel, the legislative
intent by implication is that only naturopaths can now employ
PTs.
"Rather than have to terminate the employment of PTs up and down
the state, we seek a clarification that both medical
corporations and podiatric medical corporations can employ PTs.
As such, AB 1152 clarifies the law by simply amending
Corporations Code section 13401.5 to include PTs in the list of
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professionals that medical and podiatric medical corporations
can employ."
Background . Corporations code section 13401.5 permits certain
individuals to be shareholders, officers, directors, or
professional employees of professional corporations, so long as
the sum of all shares owned by those licensed persons does not
exceed 49 percent of the total number of shares of the
professional corporation. Currently, the only professional
corporation that is explicitly authorized to include PTs as
shareholders, officers, directors or professional employees are
naturopathic doctor corporations.
Suggested technical amendment . Committee staff suggests a
conforming change to a related code section to ensure
consistency.
Business and Professions code 2406 would be amended to read:
A medical corporation or podiatry corporation is a corporation
which is authorized to render professional services, as
defined in Sections 13401 and 13401.5 of the Corporations
Code, so long as that corporation and its shareholders,
officers, directors and employees rendering professional
services who are physicians, psychologists, registered nurses,
optometrists, podiatrists, chiropractors, acupuncturists,
naturopathic doctors, physical therapists, or, in the case of
a medical corporation only, physician assistants, marriage and
family therapists, and clinical social workers are in
compliance with the Moscone-Knox Professional Corporation Act,
the provisions of this article and all other statutes and
regulations now or hereafter enacted or adopted pertaining to
the corporation and the conduct of its affairs.
With respect to a medical corporation or podiatry corporation,
the governmental agency referred to in the Moscone-Knox
Professional Corporation Act is the Division of Licensing.
REGISTERED SUPPORT / OPPOSITION :
Support
California Podiatric Medical Association (sponsor)
California Medical Association
California Orthopaedic Association
AB 1152
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Opposition
California Physical Therapy Association
Analysis Prepared by : Sarah Huchel / B. & P. / (916) 319-3301