Chapter 557
AN ACT
HB 3100
Relating to exemptions to requirements for corporations organized to
provide health care services; amending ORS 58.375.
Be It Enacted by the People of
the State of
SECTION 1. ORS 58.375 is amended to read:
58.375. (1) In a professional corporation organized for the purpose of
practicing medicine:
(a) The holders of the
majority of each class of shares entitled to vote shall be physicians who are
licensed in this state to practice medicine.
(b) A majority of the
directors shall be physicians who are licensed in this state to practice
medicine.
(c) All officers except
the secretary and treasurer, if any, must be physicians who are licensed in
this state to practice medicine. Any two or more offices may be held by the
same person.
(d) Except as otherwise
provided by law, the Board of Medical Examiners may expressly require that more
than a majority of each class of shares entitled to vote be held by physicians
who are licensed in this state to practice medicine.
(e) Except as otherwise
provided by law, the Board of Medical Examiners may expressly require that more
than a majority of the directors be physicians who are licensed in this state
to practice medicine.
(2) A professional
corporation may be a shareholder of a professional corporation organized for
the purpose of practicing medicine solely for the purpose of effecting a reorganization as defined in the Internal Revenue Code.
(3) The provisions of
subsections (1) and (2) of this section do not apply to nonprofit corporations
organized under Oregon law to provide medical services to migrant, rural,
homeless or other medically underserved populations under 42 U.S.C. 254b or
254c or to health centers qualified under 42 U.S.C. 1396d(1)(2)(B)
that operate in compliance with other applicable state and federal law.
Approved by the Governor June 22, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date January 1, 2008
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