S-0630.1          _______________________________________________

                                 SENATE BILL 5491

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By Senators Nelson, Rasmussen, Johnson, Talmadge and Conner.

Read first time February 4, 1991.  Referred to Committee on Law & Justice.Authorizing psychologists and physicians to render services through one professional service corporation.

     AN ACT Relating to professional service corporation formation by psychologists and physicians; and amending RCW 18.100.050.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 18.100.050 and 1986 c 261 s 1 are each amended to read as follows:

     An individual or group of individuals duly licensed or otherwise legally authorized to render the same professional services within this state may organize and become a shareholder or shareholders of a professional corporation for pecuniary profit under the provisions of Title ((23A)) 23B RCW for the purpose of rendering professional service:  PROVIDED, That one or more of such legally authorized individuals shall be the incorporators of such professional corporation:  PROVIDED FURTHER, That notwithstanding any other provision of this chapter, licensed psychologists and licensed physicians may own stock in and render their individual professional services through one professional service corporation:  PROVIDED FURTHER, That notwithstanding any other provision of this chapter, registered architects and registered engineers may own stock in and render their individual professional services through one professional service corporation:  PROVIDED FURTHER, That licensed health care professionals, providing services to enrolled participants either directly or through arrangements with a health maintenance organization registered under chapter 48.46 RCW or federally qualified health maintenance organization, may own stock in and render their individual professional services through one professional service corporation:  AND PROVIDED FURTHER, That professionals may organize a nonprofit nonstock corporation under this chapter and chapter 24.03 RCW to provide professional services, and the provisions of this chapter relating to stock and referring to Title ((23A)) 23B RCW shall not apply to any such corporation.