Yesterday, California Assembly Bill AB 783 failed to pass out of the Senate Standing Committee on Business, Professions, and Economic Development. The bill needed 5 votes to make it out of committee. Three members voted in support of the bill, 2 against, and 4 abstained. Senators Juan Vargas, Lou Correa and Mark Wyland, voted in favor of AB 783; Senators Curren Price and Mimi Walters voted against it. AB 783 has been granted reconsideration at a later date, which means that it can be heard in committee again before July 8 without a rule waiver. After July 8, such a waiver would be needed for the committee to hold another hearing on the legislation. Approximately 100 California Chapter members showed up at the hearing yesterday to show their opposition to the legislation.
The bill would amend the California Business and Professions Code and the California Corporations Code to specifically add licensed PTs to the list of "healing arts practitioners" who may be employees of medical or podiatric medical corporations. For more information on the bill and the California Chapter's efforts to defeat such physician-owned physical therapy services (POPTS) arrangements, click here.
This year is the first year of a 2-year session for the California legislature. AB 783 will likely return 2012.