Assembly Bill No. 491–Assemblymen Humke, Beers, Brower, Buckley, Hettrick, Leslie and Parks

 

March 19, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Authorizes ophthalmologist and optometrist to cooperate in formation of professional corporation or professional association. (BDR 54‑1280)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to professions; authorizing an ophthalmologist and an optometrist to cooperate in the formation of a professional corporation or 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:

 

1-1    Section 1. NRS 636.300 is hereby amended to read as follows:

1-2    636.300  The following acts, among others, constitute unethical or

1-3  unprofessional conduct:

1-4    1.  Association as an optometrist with any person, firm or corporation

1-5  violating this chapter.

1-6    2.  Accepting employment, directly or indirectly, from a person not

1-7  licensed to practice optometry in this state to assist him in such practice or

1-8  enabling him to engage therein, except as authorized in NRS 636.347[.]

1-9  and 636.373.

1-10    3.  Signing the prescription blanks of another optometrist or allowing

1-11  another optometrist to use his prescription blanks.

1-12    4.  Except as otherwise provided in NRS 636.372 and 636.373,

1-13  practicing in or on premises where any materials other than those necessary

1-14  to render optometric examinations or services are dispensed to the public,

1-15  or where a business is being conducted not exclusively devoted to

1-16  optometry or other healing arts and materials or merchandise are displayed

1-17  having no relation to the practice of optometry or other healing arts.

1-18    Sec. 2.  NRS 636.301 is hereby amended to read as follows:

1-19    636.301  The following acts, among others, constitute unethical or

1-20  unprofessional conduct:

2-1    1.  Division of fees with another optometrist or a health maintenance

2-2  organization, except where the division is made in proportion to the

2-3  services performed for the patient and the responsibility assumed by each.

2-4    2.  Division of fees or any understanding or arrangement with any

2-5  person who is not an optometrist , [or] a health maintenance organization

2-6  [.] or an ophthalmologist with whom an optometrist has organized a

2-7  professional corporation pursuant to paragraph (c) of subsection 2 of

2-8  NRS 89.050 or a professional association pursuant to subsection 2 of

2-9  NRS 89.230.

2-10    Sec. 3.  NRS 636.350 is hereby amended to read as follows:

2-11    636.350  1.  An optometrist shall not practice optometry under an

2-12  assumed or fictitious name unless [he has] the optometrist:

2-13    (a) Has been issued a certificate of registration by the board to practice

2-14  optometry under an assumed or fictitious name[.] ; or

2-15    (b) Practices as a professional corporation pursuant to paragraph (c)

2-16  of subsection 2 of NRS 89.050 or a professional association pursuant to

2-17  subsection 2 of NRS 89.230.

2-18    2.  An optometrist who applies for a certificate of registration to

2-19  practice optometry under an assumed or fictitious name must submit to the

2-20  board an application on a form provided by the board.

2-21    3.  Each optometrist who is issued a certificate of registration pursuant

2-22  to this section shall:

2-23    (a) Comply with the provisions of chapter 602 of NRS; and

2-24    (b) Display or cause to be displayed near the entrance of his business

2-25  his full name and the words or letters that designate him as an optometrist.

2-26    4.  The board shall adopt regulations that prescribe the requirements for

2-27  the issuance of a certificate of registration to practice optometry under an

2-28  assumed or fictitious name.

2-29    5.  As used in this section, “assumed or fictitious name” means a name

2-30  that is not the real name of each person who owns an interest in a business.

2-31    Sec. 4.  NRS 636.373 is hereby amended to read as follows:

2-32    636.373  1.  An optometrist may form an association or other business

2-33  relationship with a physician to provide their respective services to

2-34  patients.

2-35    2.  If such an association or business relationship is formed, the

2-36  optometrist may:

2-37    (a) Locate his office in the same place of business as the physician

2-38  without a physical separation between the office and the place of business.

2-39    (b) Authorize the physician to have access to any medical records in the

2-40  possession of the optometrist relating to a patient who is being treated by

2-41  both the optometrist and the physician.

2-42    (c) Advertise and promote the services provided by the association or

2-43  business consistent with the restrictions on advertising set forth in NRS

2-44  636.302.

2-45    3.  This section does not authorize an optometrist to employ or be

2-46  employed by a physician[.] in circumstances other than those authorized

2-47  pursuant to paragraph (c) of subsection 2 of NRS 89.050 or subsection 2

2-48  of NRS 89.230.

 

3-1    Sec. 5.  NRS 89.050 is hereby amended to read as follows:

3-2    89.050  1.  Except as otherwise provided in subsection 2, a

3-3  professional corporation may be organized only for the purpose of

3-4  rendering one specific type of professional service and may not engage in

3-5  any business other than rendering the professional service for which it was

3-6  organized and services reasonably related thereto, except that a

3-7  professional corporation may own real and personal property appropriate to

3-8  its business and may invest its funds in any form of real property, securities

3-9  or any other type of investment.

3-10    2.  A professional corporation may be organized to render a

3-11  professional service relating to:

3-12    (a) Architecture, interior design, engineering and landscape architecture,

3-13  or any combination thereof, and may be composed of persons:

3-14      (1) Engaged in the practice of architecture as provided in chapter 623

3-15  of NRS;

3-16      (2) Practicing as a registered interior designer as provided in chapter

3-17  623 of NRS;

3-18      (3) Engaged in the practice of landscape architecture as provided in

3-19  chapter 623A of NRS; and

3-20      (4) Engaged in the practice of professional engineering as provided in

3-21  chapter 625 of NRS.

3-22    (b) Medicine, homeopathy and osteopathy, and may be composed of

3-23  persons engaged in the practice of medicine as provided in chapter 630 of

3-24  NRS, persons engaged in the practice of homeopathic medicine as

3-25  provided in chapter 630A of NRS and persons engaged in the practice of

3-26  osteopathic medicine as provided in chapter 633 of NRS. Such a

3-27  professional corporation may market and manage additional professional

3-28  corporations which are organized to render a professional service relating

3-29  to medicine, homeopathy and osteopathy.

3-30    (c) Ophthalmology and optometry, may be composed of physicians

3-31  engaged in the practice of ophthalmology as provided in chapter 630 of

3-32  NRS and persons engaged in the practice of optometry as provided in

3-33  chapter 636 of NRS. Such a professional corporation may market and

3-34  manage additional professional corporations that are organized to render

3-35  a professional service relating to ophthalmology or optometry.

3-36    3.  A professional corporation may render a professional service only

3-37  through its officers and employees, all of whom must be authorized to

3-38  render [that professional service.] their respective professional services.

3-39    Sec. 6.  NRS 89.070 is hereby amended to read as follows:

3-40    89.070  1.  Except as otherwise provided in subsections 2 [and 3:] , 3

3-41  and 4:

3-42    (a) No corporation organized under the provisions of this chapter may

3-43  issue any of its stock to anyone other than a natural person who is licensed

3-44  to render the same specific professional services as those for which the

3-45  corporation was incorporated.

3-46    (b) No stockholder of a corporation organized under this chapter may

3-47  enter into a voting trust agreement or any other type of agreement vesting

3-48  another person with the authority to exercise the voting power of any or all

4-1  of his stock, unless the other person is licensed to render the same specific

4-2  professional services as those for which the corporation was incorporated.

4-3    (c) No shares of a corporation organized under this chapter may be sold

4-4  or transferred except to a natural person who is eligible to be a stockholder

4-5  of the corporation or to the personal representative or estate of a deceased

4-6  or legally incompetent stockholder. The personal representative or estate of

4-7  the stockholder may continue to own shares for a reasonable period, but

4-8  may not participate in any decisions concerning the rendering of

4-9  professional services.

4-10  The articles of incorporation or bylaws may provide specifically for

4-11  additional restrictions on the transfer of shares and may provide for the

4-12  redemption or purchase of the shares by the corporation, its stockholders or

4-13  an eligible individual account plan complying with the requirements of

4-14  subsection 2 at prices and in a manner specifically set forth. A stockholder

4-15  may transfer his shares in the corporation or any other interest in the assets

4-16  of the corporation to a revocable trust if he acts as trustee of the revocable

4-17  trust and any person who acts as cotrustee and is not licensed to perform

4-18  the services for which the corporation was incorporated does not

4-19  participate in any decisions concerning the rendering of those services.

4-20    2.  A person not licensed to render the professional services for which

4-21  the corporation was incorporated may own a beneficial interest in any of

4-22  the assets, including corporate shares, held for his account by an eligible

4-23  individual account plan sponsored by the professional corporation for the

4-24  benefit of its employees, which is intended to qualify under section 401 of

4-25  the Internal Revenue Code , [(]26 U.S.C. § 401 , [)] if the terms of the trust

4-26  are such that the total number of shares which may be distributed for the

4-27  benefit of persons not licensed to render the professional services for which

4-28  the corporation was incorporated is less than a controlling interest and:

4-29    (a) The trustee of the trust is licensed to render the same specific

4-30  professional services as those for which the corporation was incorporated;

4-31  or

4-32    (b) The trustee is not permitted to participate in any corporate decisions

4-33  concerning the rendering of professional services in his capacity
as trustee.

4-34  A trustee who is individually a stockholder of the corporation may

4-35  participate in his individual capacity as a stockholder, director or officer in

4-36  any corporate decision.

4-37    3.  A professional corporation in which all the stockholders who are

4-38  natural persons are licensed to render the same specific professional

4-39  service, may acquire and hold stock in another professional corporation, or

4-40  in a similar corporation organized pursuant to the corresponding law of

4-41  another state, if all the stockholders who are natural persons of the

4-42  corporation whose stock is acquired are licensed in that corporation’s state

4-43  of incorporation to render the same specific professional service as the

4-44  stockholders who are natural persons of the professional corporation that

4-45  acquires the stock.

4-46    4.  A corporation organized pursuant to paragraph (c) of subsection 2

4-47  of NRS 89.050 to render a professional service relating to optometry and

5-1  ophthalmology may issue its stock to a person who is licensed to render

5-2  the professional service of either optometry or ophthalmology.

5-3    5.  Any act in violation of this section is void and does not pass any

5-4  rights or privileges or vest any powers, except to an innocent person who is

5-5  not a stockholder and who has relied on the effectiveness of the action.

5-6    Sec. 7.  NRS 89.230 is hereby amended to read as follows:

5-7    89.230  [Members]

5-8    1.  Except as otherwise provided in subsection 2, members who

5-9  organize a professional association must all be natural persons licensed to

5-10  render the same specific professional services as those for which the

5-11  professional association is organized. A professional association may

5-12  render professional service only through its members and employees, all of

5-13  whom must be licensed to render the professional service.

5-14    2.  An optometrist and an ophthalmologist may organize and

5-15  participate in a professional association to render their respective

5-16  professional services. A professional association of an optometrist and an

5-17  ophthalmologist may render professional service through its members

5-18  and employees, all of whom must be licensed as an optometrist or as an

5-19  ophthalmologist.

 

5-20  H