Bill
Bill > HB4130
summary
Introduced
02/05/2024
02/05/2024
In Committee
03/01/2024
03/01/2024
Crossed Over
02/22/2024
02/22/2024
Passed
Dead
03/07/2024
03/07/2024
Introduced Session
Potential new amendment
2024 Legislative Measures
Bill Summary
The statement includes a measure digest written in compliance with applicable readability standards. Digest: Stops people in charge of companies that do medical work from running both the com- pany and other business that does work that is not medical work. Stops the people in charge from hiring, firing or telling medical workers when and how to do their jobs. Stops companies from giving control of the company to other businesses that do work that is not medical work. Lets the Secre- tary of State punish bad actors. Stops companies that give medical care from telling their workers that they cannot work for someone else, say that the company is bad or speak out about the company’s bad acts. Stops companies from punishing those who speak out. (Flesch Readability Score: 60.7). Prohibits a shareholder, director or officer of a domestic or foreign professional corporation organized for the purpose of practicing medicine or naturopathic medicine, or for the purpose of allowing physicians, physician assistants and nurse practitioners to jointly render professional health care services, from owning or controlling shares in, serving as a director or officer of, being an employee or contractor of or otherwise participating in managing both the professional corpo- ration and a management services organization with which the professional corporation has a con- tract. Prohibits shareholders, directors or officers from participating in hiring, terminating or specifying the terms of employment for medical professionals that the professional corporation em- ploys or with which the professional corporation has a contract for services while owning or con- trolling shares in, serving as a director of or being an employee or contractor of a management services organization with which the professional corporation has a contract. Specifies exceptions. Prohibits a professional corporation from relinquishing or transferring control over the profes- sional corporation’s assets, business operations, clinical practices or decisions or the clinical prac- tices or decisions of medical professionals the professional corporation employs or with which the professional corporation has a contract. Specifies examples of prohibited methods of transferring control and exceptions to the prohibition. Provides that requirements that apply to domestic and foreign professional corporations organ- ized for the purpose of practicing medicine or naturopathic medicine, or for the purpose of allowing physicians, physician assistants and nurse practitioners to jointly render professional health care services, also apply to domestic and foreign limited liability companies, partnerships, limited part- nerships and limited liability partnerships organized for a medical purpose. Provides the Secretary of State with authority to enforce violations of the requirements by ad- ministratively dissolving or revoking or inactivating the registration of entities that engage in vio- lations. Voids noncompetition agreements, nondisclosure agreements and nondisparagement agreements between certain business entities and medical professionals, with specified exceptions, and prohibits the business entities from retaliating against the medical professional for violating the void agree- ments. Punishes retaliations as an unlawful employment practice. Takes effect on the 91st day following adjournment sine die.
AI Summary
This bill prohibits individuals who own or control a management services organization from also owning or controlling a professional corporation that provides medical services. It also prohibits these individuals from participating in hiring, firing, or directing the medical professionals employed by the professional corporation. The bill voids certain non-competition, non-disclosure, and non-disparagement agreements between medical professionals and management services organizations, and prohibits retaliation against medical professionals who disclose or report violations of law. The bill gives the Secretary of State authority to enforce these requirements by administratively dissolving or revoking the registration of entities that violate them.
Committee Categories
Health and Social Services
Sponsors (24)
Ben Bowman (D)*,
Wlnsvey Campos (D)*,
Maxine Dexter (D)*,
Sara Gelser Blouin (D)*,
Jeff Golden (D)*,
Cyrus Javadi (D)*,
James Manning (D)*,
Deb Patterson (D)*,
Lisa Reynolds (D)*,
Suzanne Weber (R)*,
Farrah Chaichi (D),
Michael Dembrow (D),
Mark Gamba (D),
Chris Gorsek (D),
Dacia Grayber (D),
Zach Hudson (D),
Em Levy (D),
John Lively (D),
Emily McIntire (R),
Travis Nelson (D),
Rob Nosse (D),
Katherine Pham (D),
Rob Wagner (D),
Boomer Wright (R),
Last Action
At President's desk upon adjournment. (on 03/07/2024)
Official Document
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