Read the full stored bill text
Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0686.01 Eden Rolland x2373 HOUSE BILL 26-1249
House Committees Senate Committees
Health & Human Services
A BILL FOR AN ACT
CONCERNING OWNERS HIP OF MEDICAL -AESTHETICS PROFESSIONAL101
SERVICE CORPORATIONS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Under current law, persons licensed to practice medicine in
Colorado may form professional service corporations for the practice of
medicine. The articles of incorporation for these corporations must reflect
and comply with certain requirements, including the requirement that all
shareholders of the corporation be individuals who are licensed by the
Colorado medical board to practice medicine and who own their shares
HOUSE SPONSORSHIP
Gonzalez R. and Ricks,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
in their own right (ownership requirement). A licensed physician assistant
may be a shareholder, but one or more physician assistants may not own
a majority of the corporation.
Section 1 of the bill specifies that one or more physician assistants
licensed by the Colorado medical board may own a majority of a
corporation organized solely for the purpose of providing
medical-aesthetic services.
The bill codifies a new exception to the ownership requirement.
Section 2 establishes that, if a corporation is organized solely for the
purpose of providing medical-aesthetic services, the following individuals
may be a shareholder of that corporation, if the individual holds an active
license issued by their profession's respective licensing body in Colorado:
! An esthetician;
! A cosmetologist;
! A practical nurse;
! A registered nurse;
! An advanced practice registered nurse; or
! A physician assistant.
Current statute defines "medical-aesthetic services" as therapeutic
procedures used in aesthetics. This definition applies to the corporations
recognized in the exception to the ownership requirement codified by the
bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 12-240-107, amend2
(6)(l) as follows:3
12-240-107. Practice of medicine defined - exemptions from4
licensing requirements - unauthorized practice by physician5
assistants and anesthesiologist assistants - penalties - definitions -6
rules.7
(6) (l) Pursuant to section 12-240-138 (1)(d)(I), a physician8
assistant is not authorized to own a majority of a medical practice;9
EXCEPT THAT, IN ACCORDANCE WITH SECTION 12-240-138 (1)(d)(III), ONE10
OR MORE PHYSICIAN ASSISTANTS MAY OWN A MAJORITY OF A11
CORPORATION ORGANIZED SOLELY FOR THE PURPOSE OF PROVIDING12
MEDICAL-AESTHETIC SERVICES.13
HB26-1249-2-
SECTION 2. In Colorado Revised Statutes, 12-240-138, amend1
(1) introductory portion, (1)(d)(I), (2), and (3); and add (1)(d)(III) as2
follows:3
12-240-138. Professional service corporations, limited liability4
companies, and registered limited liability partnerships for the5
practice of medicine - exceptions - definitions.6
(1) Persons licensed to practice medicine by the board may form7
professional service corporations for such persons' practice of medicine8
under the "Colorado Business Corporation Act", articles 101 to 117 of9
title 7, if the corporations are organized and operated in accordance with10
the provisions of this section. The articles of incorporation of the11
corporations shall MUST contain provisions complying with the following12
requirements:13
(d) (I) Except as specified in subsection SUBSECTIONS (1)(d)(II)14
AND (1)(d)(III) of this section, all shareholders of the corporation are15
persons INDIVIDUALS licensed by the board to practice medicine in the16
state of Colorado who at all times own their shares in their own right;17
except that one or more persons INDIVIDUALS licensed by the board as a18
physician assistant may be a shareholder of the corporation as long as the19
physician shareholders maintain majority ownership of the corporation.20
The shareholders shall be individuals who, except fo r illness, accident,21
time spent in the armed services, on vacations, and on leaves of absence22
not to exceed one year, are actively engaged in the practice of medicine23
or as a physician assistant in the offices of the corporation.24
(III) IF A CORPORATION IS ORGANIZED SOLELY FOR THE PURPOSE25
OF PROVIDING MEDICAL-AESTHETIC SERVICES, ONE OR MORE INDIVIDUALS26
MAY BE A SHAREHOLDER OF THE CORPORATION IF THE INDIVIDUAL IS:27
HB26-1249-3-
(A) AN ESTHETICIAN OR A COSMETOLOGIST WHO HOLDS AN ACTIVE1
LICENSE ISSUED PURSUANT TO ARTICLE 105 OF THIS TITLE 12;2
(B) A LICENSED PRACTICAL NURSE, A REGISTERED NURSE, OR AN3
ADVANCED PRACTICE REGISTERED NURSE WHO HOLDS AN ACTIVE LICENSE4
ISSUED PURSUANT TO ARTICLE 255 OF THIS TITLE 12; OR5
(C) A PHYSICIAN ASSISTANT WHO HOLDS AN ACTIVE LICENSE6
ISSUED BY THE BOARD PURSUANT TO SECTION 12-240-113.7
(2) The corporation shall do nothing that, if done by a licensee8
employed by the corporation, would violate the standards of professional9
conduct as provided for in section 12-240-121 OR THAT ARE APPLICABLE10
TO THE PROFESSIONAL PRACTICE OF THE LICENSEE. Any violation of this11
section by the corporation is grounds for the board OR APPLICABLE12
REGULATOR to revoke or suspend the license of the person or persons13
responsible for the violation.14
(3) Nothing in this section diminishes or changes the obligation15
of each licensee employed by the corporation to conduct his or her THEIR16
practice in accordance with the standards of professional conduct17
provided for in section 12-240-121 OR THAT ARE APPLICABLE TO THE18
PROFESSIONAL PRACTICE OF THE LICENSEE. Any licensee who, by act or19
omission, causes the corporation to act or fail to act in a way that violates20
the standards of professional conduct, including any provision of this21
section, is personally responsible for such act or omission and is subject22
to discipline for the act or omission.23
SECTION 3. Act subject to petition - effective date. This act24
takes effect at 12:01 a.m. on the day following the expiration of the25
ninety-day period after final adjournment of the general assembly (August26
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a27
HB26-1249-4-
referendum petition is filed pursuant to section 1 (3) of article V of the1
state constitution against this act or an item, section, or part of this act2
within such period, then the act, item, section, or part will not take effect3
unless approved by the people at the general election to be held in4
November 2026 and, in such case, will take effect on the date of the5
official declaration of the vote thereon by the governor.6
HB26-1249-5-