HF 1075

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to health; regulating professional health 
  1.3             services under the professional corporation act; 
  1.4             amending Minnesota Statutes 1996, sections 319A.02, by 
  1.5             adding a subdivision; 319A.04; and 319A.11, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 319A.02, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 2a.  [PROFESSIONAL HEALTH SERVICE.] "Professional 
  1.11  health service" means personal service rendered by a 
  1.12  professional pursuant to a license or certificate issued by the 
  1.13  state of Minnesota to practice medicine pursuant to sections 
  1.14  147.01 to 147.22, chiropractic pursuant to sections 148.01 to 
  1.15  148.106, registered nursing pursuant to sections 148.171 to 
  1.16  148.285, optometry pursuant to sections 148.52 to 148.62, 
  1.17  psychology pursuant to sections 148.88 to 148.98, dentistry 
  1.18  pursuant to sections 150A.01 to 150A.12, pharmacy pursuant to 
  1.19  sections 151.01 to 151.40, or podiatric medicine pursuant to 
  1.20  sections 153.01 to 153.26. 
  1.21     Sec. 2.  Minnesota Statutes 1996, section 319A.04, is 
  1.22  amended to read: 
  1.23     319A.04 [PURPOSE FOR WHICH INCORPORATED.] 
  1.24     A professional corporation may be organized pursuant to 
  1.25  sections 319A.01 to 319A.22 for the purpose of rendering one 
  1.26  specific kind of professional service and services ancillary 
  2.1   thereto, or two or more kinds of professional health services 
  2.2   which are specifically authorized to be practiced in combination 
  2.3   under the licensing laws of each of the professional services to 
  2.4   be practiced by a licensed individual or a partnership of 
  2.5   licensed individuals and services ancillary thereto; provided, 
  2.6   however, that a professional corporation may own real and 
  2.7   personal property necessary or appropriate for rendering 
  2.8   professional service and may invest its funds in real estate, 
  2.9   mortgages, stocks, bonds, or any other type of investment.  
  2.10     Sec. 3.  Minnesota Statutes 1996, section 319A.11, 
  2.11  subdivision 1, is amended to read: 
  2.12     Subdivision 1.  [GENERALLY.] (a) A professional corporation 
  2.13  may issue its stock only to and admit as a member only natural 
  2.14  persons licensed to render a kind of professional service which 
  2.15  the corporation is authorized to render or partnerships or 
  2.16  professional corporations rendering the same kind of 
  2.17  professional service.  In the case of a professional corporation 
  2.18  that renders professional health services, the professional 
  2.19  corporation may issue its stock and admit as a member a natural 
  2.20  person, partnership, or corporation authorized to render a 
  2.21  professional health service.  A person, partnership or 
  2.22  professional corporation who becomes a shareholder or member of 
  2.23  any such corporation may transfer its shares of stock or its 
  2.24  membership only to a natural person, partnership or professional 
  2.25  corporation to whom the corporation could have issued the shares 
  2.26  of stock or membership.  No proxy to vote any share in a 
  2.27  professional corporation or membership may be given to a person 
  2.28  who is not so licensed, nor may any voting trust be established 
  2.29  with respect to the shares of the professional corporation 
  2.30  unless all the voting trustees are natural persons so licensed. 
  2.31     (b) Notwithstanding paragraph (a), a professional 
  2.32  corporation may issue its stock under this section to an 
  2.33  employee stock ownership plan, as defined in section 4975(e)(7) 
  2.34  of the Internal Revenue Code of 1986, as amended, if 
  2.35     (1) the voting trustees of the plan are natural persons 
  2.36  licensed to render a kind of professional service which the 
  3.1   corporation is authorized to render, and 
  3.2      (2) the shares are not directly issued to a person or 
  3.3   entity not licensed to render a kind of advice which the 
  3.4   corporation is authorized to render.