HOUSE BILL No. 5120 September 30, 1997, Introduced by Reps. Dobb, Profit, Varga, Anthony, Fitzgerald, Scranton, Richner, Voorhees, Rocca, Wallace, Wojno, Jaye, Vaughn, Leland, Olshove, Scott and Middleton and referred to the Committee on Regulatory Affairs. A bill to amend 1962 PA 192, entitled "Professional service corporation act," by amending sections 2 and 4 (MCL 450.222 and 450.224), as amended by 1990 PA 166. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 2. As used in this act: 2 (a) "Licensed person" means an individual who isduly3 licensed or otherwise legally authorized topracticeRENDER a 4 professional service by a court, A department, A board, A commis- 5 sion, OR an agency of this state or OF another jurisdiction, or 6 any corporationall of whose shareholders are licensed persons7 AUTHORIZED TO RENDER A PROFESSIONAL SERVICE PURSUANT TO SECTION 8 4. 9 (b) "Professional corporation" means a corporation that is 10 organized under this act for the sole and specific purpose of 04110'97 FDD 2 1 rendering 1 or more professional services and has as its 2 shareholders only licensed persons or the personal representa- 3 tives or estates of individuals as provided in section 10. 4 (c) "Professional service" means a type of personal service 5 to the public that requires as a condition precedent tothe6 renderingofthe service the obtaining of a license or other 7 legal authorization. Professional service includes, but is not 8 limited to, services rendered by certified or other public 9 accountants, chiropractors, dentists, optometrists, veterinari- 10 ans, osteopaths, physicians and surgeons, doctors of medicine, 11 doctors of dentistry, podiatrists, chiropodists, architects, pro- 12 fessional engineers, land surveyors, and attorneys at law. 13 Sec. 4. (1) One or more licensed persons may organize under 14 this act to become a shareholder or shareholders of a profes- 15 sional corporation for pecuniary profit. 16 (2) Except as otherwise provided insubsection (3)17 SUBSECTIONS (3) AND (4) or otherwise prohibited, a professional 18 corporation may render 1 or more professional services, except 19 that each shareholder must be a licensed person in 1 or more of 20 the professional services rendered by the corporation. 21 (3) A PROFESSIONAL CORPORATION MAY ENGAGE IN THE PRACTICE OF 22 PUBLIC ACCOUNTING IN THIS STATE IF NOT LESS THAN 2/3 OF THE 23 EQUITY AND VOTING RIGHTS OF THE PROFESSIONAL CORPORATION ARE HELD 24 DIRECTLY OR BENEFICIALLY BY INDIVIDUALS WHO ARE LICENSED IN GOOD 25 STANDING AS CERTIFIED PUBLIC ACCOUNTANTS OF THIS OR ANOTHER STATE 26 OR THE EQUIVALENT IN ANOTHER LICENSING JURISDICTION ACCEPTABLE TO 27 THE BOARD OF ACCOUNTANCY. AS USED IN THIS SUBSECTION, "BOARD OF 04110'97 3 1 ACCOUNTANCY" MEANS THAT BOARD CREATED IN SECTION 721 OF THE 2 OCCUPATIONAL CODE, 1980 PA 299, MCL 339.721. 3 (4)(3)If the professional corporation renders a profes- 4 sional service that is included within the public health code, 5Act No. 368 of the Public Acts of 1978, being sections 333.11016to 333.25211 of the Michigan Compiled Laws1978 PA 368, MCL 7 333.1101 TO 333.25211, then all shareholders of the corporation 8 shall be licensed or legally authorized in this state to render 9 the same professional service. 10 (5)(4)A licensed person of another jurisdiction may 11 become an officer, director, shareholder, employee, or agent of 12 the corporation but shall not render any professionalservices13 SERVICE in this state until the person is licensed or otherwise 14 legally authorized to render the professional service in this 15 state. 04110'97 Final page. FDD