Assembly Bill No. 572-Assemblymen Chowning, Price, Hettrick, Koivisto, Evans, Goldwater, Krenzer, Lambert, Segerblom, Tiffany, Ernaut, Neighbors, Bache, Herrera, Ohrenschall, Cegavske and Parks
June 7, 1997
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Referred to Committee on Commerce
SUMMARY--Permits ophthalmologist and optometrist to cooperate in formation of professional corporation or professional association. (BDR 54-1194)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to professions; permitting an ophthalmologist and an optometrist to cooperate in the formation of a professional corporation or a professional association; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 NRS 636.301 is hereby amended to read as follows:
636.301 The following acts, among others, constitute unethical or unprofessional conduct:
1. Division of fees with another optometrist or a health maintenance organization, except where the division is made in proportion to the services performed for the patient and the responsibility assumed by each.
2. Division of fees or any understanding or arrangement with any person not an optometrist , [or] a health maintenance organization [.] or an ophthalmologist with whom the optometrist has organized a professional corporation pursuant to the provisions of paragraph (c) of subsection 2 of NRS 89.050 or a professional association pursuant to the provisions of NRS 89.230.
Sec. 2 NRS 636.350 is hereby amended to read as follows:
636.350 A licensee [shall not be entitled to] shall not practice under an assumed name [.] , unless the licensee practices as a professional corporation pursuant to the provisions of paragraph (c) of subsection 2 of NRS 89.050 or a professional association pursuant to the provisions of NRS 89.230.
Sec. 3 NRS 636.373 is hereby amended to read as follows:
636.373 1. An optometrist may form an association or other business relationship with a physician to provide their respective services to patients.
2. If such an association or business relationship is formed, the optometrist may:
(a) Locate his office in the same place of business as the physician without a physical separation between the office and the place of business.
(b) Authorize the physician to have access to any medical records in the possession of the optometrist relating to a patient who is being treated by both the optometrist and the physician.
(c) Advertise and promote the services provided by the association or business consistent with the restrictions on advertising set forth in NRS 636.302.
3. This section does not authorize an optometrist to employ or be employed by a physician [.] in circumstances other than those authorized pursuant to the provisions of NRS 89.230 or paragraph (c) of subsection 2 of NRS 89.050.
Sec. 4 NRS 89.050 is hereby amended to read as follows:
89.050 1. Except as otherwise provided in subsection 2, a professional corporation may be organized only for the purpose of rendering one specific type of professional service and may not engage in any business other than rendering the professional service for which it was organized and services reasonably related thereto, except that a professional corporation may own real and personal property appropriate to its business and may invest its funds in any form of real property, securities or any other type of investment.
2. A professional corporation may be organized to render a professional service relating to:
(a) Architecture, interior design, engineering and landscape architecture, or any combination thereof, and may be composed of persons engaged in the practice of architecture or interior design as provided in chapter 623 of NRS, persons engaged in the practice of landscape architecture as provided in chapter 623A of NRS and persons engaged in the practice of professional engineering as provided in chapter 625 of NRS.
(b) Medicine, homeopathy and osteopathy, and may be composed of persons engaged in the practice of medicine as provided in chapter 630 of NRS, persons engaged in the practice of homeopathic medicine as provided in chapter 630A of NRS and persons engaged in the practice of osteopathic medicine as provided in chapter 633 of NRS. Such a professional corporation may market and manage additional professional corporations which are organized to render a professional service relating to medicine, homeopathy and osteopathy.
(c) Ophthalmology and optometry, or any combination thereof, and may be composed of physicians engaged in the practice of ophthalmology as provided in chapter 630 of NRS and persons engaged in the practice of optometry as provided in chapter 636 of NRS. Such a professional corporation may market and manage additional professional corporations that are organized to render a professional service relating to ophthalmology or optometry.
3. A professional corporation may render a professional service only through its officers and employees, all of whom must be authorized to render [that] their respective professional service.
Sec. 5 NRS 89.070 is hereby amended to read as follows:
89.070 1. Except as otherwise provided in subsections 2 [and 3:] , 3 and 4:
(a) No corporation organized under the provisions of this chapter may issue any of its stock to anyone other than a natural person who is licensed to render the same specific professional services as those for which the corporation was incorporated.
(b) No stockholder of a corporation organized under this chapter may enter into a voting trust agreement or any other type of agreement vesting another person with the authority to exercise the voting power of any or all of his stock, unless the other person is licensed to render the same specific professional services as those for which the corporation was incorporated.
(c) No shares of a corporation organized under this chapter may be sold or transferred except to a natural person who is eligible to be a stockholder of the corporation or to the personal representative or estate of a deceased or legally incompetent stockholder. The personal representative or estate of the stockholder may continue to own shares for a reasonable period, but may not participate in any decisions concerning the rendering of professional services.
The articles of incorporation or bylaws may provide specifically for additional restrictions on the transfer of shares and may provide for the redemption or purchase of the shares by the corporation, its stockholders or an eligible individual account plan complying with the requirements of subsection 2 at prices and in a manner specifically set forth. A stockholder may transfer his shares in the corporation or any other interest in the assets of the corporation to a revocable trust if he acts as trustee of the revocable trust and any person who acts as cotrustee and is not licensed to perform the services for which the corporation was incorporated does not participate in any decisions concerning the rendering of those services.
2. A person not licensed to render the professional services for which the corporation was incorporated may own a beneficial interest in any of the assets, including corporate shares, held for his account by an eligible individual account plan sponsored by the professional corporation for the benefit of its employees, which is intended to qualify under section 401 of the Internal Revenue Code (26 U.S.C. § 401) if the terms of the trust are such that the total number of shares which may be distributed for the benefit of persons not licensed to render the professional services for which the corporation was incorporated is less than a controlling interest and:
(a) The trustee of the trust is licensed to render the same specific professional services as those for which the corporation was incorporated; or
(b) The trustee is not permitted to participate in any corporate decisions concerning the rendering of professional services in his capacity as trustee.
A trustee who is individually a stockholder of the corporation may participate in his individual capacity as a stockholder, director or officer in any corporate decision.
3. A professional corporation in which all the stockholders who are natural persons are licensed to render the same specific professional service, may acquire and hold stock in another professional corporation, or in a similar corporation organized pursuant to the corresponding law of another state, if all the stockholders who are natural persons of the corporation whose stock is acquired are licensed in that corporation's state of incorporation to render the same specific professional service as the stockholders who are natural persons of the professional corporation that acquires the stock.
4. A corporation organized pursuant to the provisions of paragraph (c) of subsection 2 of NRS 89.050 to render a professional service relating to optometry and ophthalmology may issue its stock to a person who is licensed to render the professional service of either optometry or ophthalmology.
5. Any act in violation of this section is void and does not pass any rights or privileges or vest any powers, except to an innocent person who is not a stockholder and who has relied on the effectiveness of the action.
Sec. 6 NRS 89.230 is hereby amended to read as follows:
89.230 [Members]
1. Except as otherwise provided in subsection 2, members who organize a professional association must all be natural persons licensed to render the same specific professional services as those for which the professional association is organized. A professional association may render professional service only through its members and employees, all of whom must be licensed to render the professional service.
2. An optometrist and an ophthalmologist may organize and participate in a professional association to render their respective professional services. A professional association of an optometrist and an ophthalmologist may render professional service through its members and employees, all of whom must be licensed as an optometrist or as an ophthalmologist.