Bill

A 2588

Authorizes certain licensed health service professionals to form limited liability companies

2025 Regular Session Introduced by Michael Benedetto and 13 co-sponsors

Allows licensed health service professionals to form limited liability companies to organize and govern their practices under defined regulatory rules.

REFERRED TO HIGHER EDUCATION

WeVote Research Nonpartisan

Bill Summary · A 2588

Summary of Bill A 2588

Overview

Bill A 2588 would authorize certain licensed health service professionals to form limited liability companies (LLCs). The bill was introduced on January 21, 2025 and has been referred to the Assembly Committee on Higher Education. The action appears twice in the legislative record, both noting the same referral.

Bill Number: A 2588
Title: Authorizes certain licensed health service professionals to form limited liability companies
Status: Referred to Higher Education
Introduced: January 21, 2025
Classification: Bill

Purpose and Intent

The core purpose is to expand organizational options for licensed health service professionals by allowing them to establish LLCs.
This aims to provide an alternative business structure for practicing health professionals, potentially affecting governance, management, and operations of health service practices.

Key Provisions (What the bill would address)

Authorization for formation: Allows certain licensed health service professionals to organize themselves as limited liability companies.
Scope of professionals: The bill would define which licensed health service professionals are eligible (the exact professions would be specified in the enacted text).
Governance and compliance: Provisions would set forth requirements for governing the LLCs (ownership, management structure, fiduciary duties, and regulatory compliance with professional practice laws).
Professional and regulatory considerations: The legislation would address how professional licensure, malpractice, and professional ethics rules apply within LLC structures.
Other administrative details: The text would specify any filing, reporting, tax, or regulatory oversight obligations related to forming and operating an LLC in the health services field.

Note: The summarized provisions are based on the bill’s title and typical content of such legislation; the actual text would provide specific eligible professions, governance requirements, and regulatory parameters.

Affected Parties

Primary beneficiaries: Licensed health service professionals who meet the eligibility criteria.
Potential indirect beneficiaries: Patients/clients who receive care from professionals operating under an LLC structure, and professional licensing boards/regulators overseeing practice standards.
Other stakeholders: Law firms and accounting professionals assisting with LLC formation and compliance; health care employers and groups evaluating organizational options.

Procedural and Timeline Aspects

Introduction: January 21, 2025.
Initial action: Referred to the Assembly Committee on Higher Education (both entries in the record indicate this referral).
Next steps: If advanced, the bill would move through committee hearings, potential amendments, and floor votes in the Assembly, with a companion Senate bill (S 3350) noted as a related/companion measure.

Related Legislation

Assembly: A 8153, A 1943, A 6377, A 3526, A 715 (prior-session references)
Senate: S 3350 (companion bill)

Notes for Readers

The bill’s specific definitions, eligible professions, and the exact regulatory framework would be contained in the enacted text. This summary reflects the bill’s stated purpose and the structural implications of authorizing LLC formation for licensed health service professionals.

Compiled from official sources — confirm details with the bill’s official record.