NEW JERSEY REGISTER
VOLUME 38, ISSUE 21
ISSUE DATE: NOVEMBER 6, 2006
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
BOARD OF MEDICAL EXAMINERS
Notice of Receipt of Petition for Rulemaking
Petitioner: Steven I. Kern, Kern, Augustin, Conroy & Schoppmann, P.C.
Authority: N.J.S.A. 52:14B-4
Take notice that on September 22, 2006, the Board of Medical Examiners (BME) received a petition for rulemaking from Steven I. Kern requesting that the Board reconsider its response to a petition he submitted on behalf of Children's Health Associates, LLC, on November 28, 2005. That petition requested that the Board allow physicians who are not licensed in New Jersey to become members of a New Jersey medical practice limited liability company (LLC). The Board denied this petition in a notice of final action printed on April 3, 2006, 38 N.J.R. 1608(b).
The petitioner contends that N.J.S.A. 14A:17-5 does not require that every member of a professional corporation be licensed in New Jersey, as the Board stated in its notice of final action. The petitioner contends that N.J.S.A. 14A:17-5 permits licensed professionals to become shareholders of a corporation, but does not prohibit them from entering into a corporation with others who do not hold licensure in New Jersey. The petitioner points out that N.J.S.A. 14A:17-5 permits out-of-State legal corporations to render services in New Jersey, as long as the services are performed by attorneys licensed in New Jersey. The petitioner contends that this provision indicates that the Professional Service Corporation Act permits out-of-State professional corporations to do business in New Jersey. According to the petitioner, there is no reason to treat attorneys differently than physicians and an out-of-State medical practice, in which some members are New Jersey licensees, should be permitted to practice in New Jersey. If this is the case, a New Jersey practice with out-of-State members should be permitted to operate in New Jersey. The petitioner contends that the Board's original position on his petition will result in existing New Jersey professional corporations restructuring as New York or Pennsylvania corporations practicing in New Jersey. This would deprive New Jersey of tax revenues and deprive the Board of jurisdiction over these corporations.
A copy of this notice has been mailed to the petitioner pursuant to N.J.A.C. 1:30-4.2.