An act TO AMEND THE CORPORATE PRACTICE OF MEDICINE 10 DOCTRINE, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas              As Engrossed: S4/7/25
2 95th General Assembly
                                      A Bill

3 Regular Session, 2025                                            SENATE BILL 262

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5 By: Senator C. Penzo

6 By: Representative Pilkington

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8                                For An Act To Be Entitled

9   AN ACT TO AMEND THE CORPORATE PRACTICE OF MEDICINE

10  DOCTRINE; TO AUTHORIZE A CURRENT LICENSED MEDICAL

11  PROFESSIONAL WHO OWNS A MEDICAL CORPORATION TO

12  MAINTAIN OWNERSHIP IF HIS OR HER MEDICAL LICENSE IS

13  NO LONGER ACTIVE OR HE OR SHE RETIRES; AND FOR OTHER

14  PURPOSES.

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17                                    Subtitle

18                       TO AMEND THE CORPORATE PRACTICE OF

19                       MEDICINE DOCTRINE; AND TO AUTHORIZE A

20                       LICENSED MEDICAL PROFESSIONAL WHO OWNS A

21                       MEDICAL CORPORATION TO MAINTAIN

22                       OWNERSHIP UPON AN INACTIVE LICENSE OR

23                       RETIREMENT.

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25 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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27  SECTION 1. Arkansas Code � 4-29-307, concerning the officers,

28 directors, and shareholders of a medical corporation, is amended to add an

29 additional subsection to read as follows:

30  (c) Notwithstanding subsections (a) and (b) of this section, a person

31 who legally acquires ownership in a medical corporation while holding an

32 active license under the Arkansas Medical Practices Act, � 17-95-201 et seq.,

33 � 17-95-301 et seq., and � 17-95-401 et seq., may retain ownership,

34 management, and control of the medical corporation after his or her license

35 becomes inactive or is voluntarily surrendered if:

36  (1) All medical services are provided only by individuals who

    *JMB231*                                                    04-07-2025 14:26:18 JMB231
    As Engrossed: S4/7/25                                        SB262

1 are licensed; and

2   (2) His or her license was in good standing at the time the

3 license became inactive or was voluntarily surrendered and not subject to a

4 disciplinary action, suspension, or revocation.

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6                          /s/C. Penzo

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