BILL ANALYSIS
AB 1152
Page 1
ASSEMBLY THIRD READING
AB 1152 (Anderson)
As Amended May 18, 2009
Majority vote
BUSINESS & PROFESSIONS 11-0
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|Ayes:|Hayashi, Emmerson, | | |
| |Conway, Eng, Hernandez, | | |
| |Nava, Niello, | | |
| |John A. Perez, Price, | | |
| |Ruskin, Smyth | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal.
COMMENTS : 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
AB 1152
Page 2
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
professionals that medical and podiatric medical corporations
can employ."
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.
Analysis Prepared by : Sarah Huchel / B. & P. / (916) 319-3301
FN: 0000798