Senate Study Bill 1015 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON RAGAN) A BILL FOR An Act relating to professions which may practice together 1 in professional limited liability companies and including 2 effective and applicability date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1503XC (2) 84 jr/nh

S.F. _____ Section 1. Section 489.1101, subsection 4, Code 2011, is 1 amended to read as follows: 2 4. “Profession” means the profession of certified public 3 accountancy, architecture, chiropractic, dentistry, physical 4 therapy, practice as a physician assistant, psychology, 5 professional engineering, land surveying, landscape 6 architecture, law, medicine and surgery, optometry, osteopathic 7 medicine and surgery, accounting practitioner, podiatry, real 8 estate brokerage, speech pathology, audiology, veterinary 9 medicine, pharmacy, nursing, or marital and family therapy, 10 provided that the marital and family therapist is licensed 11 under chapters 147 and 154D . 12 Sec. 2. Section 489.1102, Code 2011, is amended to read as 13 follows: 14 489.1102 Purposes and powers. 15 1. A professional limited liability company shall be 16 organized only for the purpose of engaging in the practice of 17 one specific profession, or two or more specific professions 18 which could lawfully be practiced in combination by a licensed 19 individual or a partnership of licensed individuals, and for 20 the additional purpose of doing all lawful things which may be 21 incidental to or necessary or convenient in connection with the 22 practice of the profession or professions. The certificate of 23 organization of a professional limited liability company shall 24 state in substance that the purposes for which the professional 25 limited liability company is organized are to engage in the 26 general practice of a specified profession or professions, or 27 one or more specified branches or divisions thereof, and to do 28 all lawful things which may be incidental to or necessary or 29 convenient in connection with the practice of the profession 30 or professions. 31 2. a. For purposes of this section, medicine and surgery, 32 osteopathic medicine and surgery, and practice as a physician 33 assistant shall be deemed to be professions which could 34 lawfully be practiced in combination by licensed individuals or 35 -1- LSB 1503XC (2) 84 jr/nh 1/ 3

S.F. _____ a partnership of licensed individuals. 1 b. Nothing in this section shall be construed to expand 2 the scope of practice of a physician assistant or modify the 3 requirement in section 148C.4 that a physician assistant 4 perform medical services under the supervision of a licensed 5 physician. 6 Sec. 3. Section 489.1105, Code 2011, is amended to read as 7 follows: 8 489.1105 Practice by professional limited liability company. 9 1. Notwithstanding any other statute or rule of law, 10 a professional limited liability company may practice a 11 profession, but may do so in this state only through a member, 12 manager, employee, or agent, who is licensed to practice 13 the same profession in this state. In its practice of a 14 profession, a professional limited liability company shall not 15 do any act which could not lawfully be done by an individual 16 licensed to practice the profession which the professional 17 limited liability company is authorized to practice. 18 2. a. This section shall not prohibit persons practicing 19 medicine and surgery, persons practicing osteopathic medicine 20 and surgery, or persons practicing as physician assistants from 21 practicing their respective professions in lawful combination 22 pursuant to section 489.1102. 23 b. Nothing in this section shall be construed to expand 24 the scope of practice of a physician assistant or modify the 25 requirement in section 148C.4 that a physician assistant 26 perform medical services under the supervision of a licensed 27 physician. 28 Sec. 4. Section 489.1114, Code 2011, is amended to read as 29 follows: 30 489.1114 Management. 31 All managers of a professional limited liability company 32 shall at all times be individuals who are licensed to 33 practice a profession in this state or a lawful combination of 34 professions pursuant to section 489.1102, which the limited 35 -2- LSB 1503XC (2) 84 jr/nh 2/ 3

S.F. _____ liability company is authorized to practice. A person who 1 is not licensed shall have no authority or duties in the 2 management or control of the professional limited liability 3 company. If a manager ceases to have this qualification, the 4 manager shall immediately and automatically cease to hold such 5 management position. 6 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 7 immediate importance, takes effect upon enactment. 8 Sec. 6. RETROACTIVE APPLICABILITY. This Act applies 9 retroactively to January 1, 2011. 10 EXPLANATION 11 This bill allows physician assistants to form professional 12 limited liability companies and to practice with persons 13 practicing medicine and surgery and persons practicing 14 osteopathic medicine and surgery by jointly forming a 15 professional limited liability company. 16 The bill corresponds to changes made by 2010 Iowa Acts, ch. 17 1131, to Code chapter 490A, which regulated limited liability 18 companies prior to its repeal effective December 31, 2010. 19 The bill is made effective upon enactment and applies 20 retroactively to January 1, 2011. 21 -3- LSB 1503XC (2) 84 jr/nh 3/ 3