Speech-language Pathology Corporations And Audiology Corporations - Speech-language Pathologists, Audiologists, And Hearing Aid Dispensers - CA Business And Professions

Section § 2536

This section states that a speech-language pathology or audiology corporation in California can offer professional services if the business and its members follow specific laws and rules, including the Moscone-Knox Professional Corporation Act. The Speech-Language Pathology and Audiology Board is the overseeing authority for these corporations.

A speech-language pathology corporation or an audiology corporation is a corporation which is authorized to render professional services, as defined in Section 13401 of the Corporations Code, so long as that corporation and its shareholders, officers, directors, and employees rendering professional services who are speech-language pathologists or audiologists are in compliance with the Moscone-Knox Professional Corporation Act, this article, and all other statutes and regulations now or hereafter enacted or adopted pertaining to the corporation and the conduct of its affairs.

With respect to a speech-language pathology corporation or an audiology corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act is the Speech-Language Pathology and Audiology Board.

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(Amended by Stats. 1997, Ch. 758, Sec. 31. Effective January 1, 1998.)

Section § 2537

This law says that if someone with a professional license breaks any rules in this chapter, or tries to break them, helps someone else do it, or plans to do it, they are behaving unprofessionally and violating the law. This includes breaking any parts of the Moscone-Knox Professional Corporation Act or related regulations.

It shall constitute unprofessional conduct and a violation of this chapter for any person licensed under this chapter to violate, attempt to violate, directly or indirectly, or assist in or abet the violation of, or conspire to violate, any provision or term of this article, the Moscone-Knox Professional Corporation Act, or any regulations duly adopted under those laws.

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(Repealed and added by Stats. 1980, Ch. 1314, Sec. 6.)

Section § 2537.1

This law states that speech-language pathology and audiology corporations must follow the same rules and regulations as licensed individuals. They must avoid any actions considered unprofessional according to current or future laws.

A speech-language pathology corporation or an audiology corporation shall not do or fail to do any act that the doing or failing to do would constitute unprofessional conduct under any statute or regulation now or hereafter in effect. In the conduct of its practice, it shall observe and be bound by those statutes and regulations to the same extent as a person holding a license under this chapter.

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(Amended by Stats. 1994, Ch. 26, Sec. 39. Effective March 30, 1994.)

Section § 2537.2

This law requires that all shareholders, directors, and officers of a speech-language pathology or audiology company, except for certain assistant positions, must have a specific license as described in another law. There are some exceptions mentioned in related corporate laws.

Except as provided in Sections 13401.5 and 13403 of the Corporations Code, each shareholder, director and officer of a speech-language pathology corporation or an audiology corporation, except an assistant secretary and an assistant treasurer, shall be a licensed person as defined in Section 13401.

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(Amended by Stats. 1994, Ch. 26, Sec. 40. Effective March 30, 1994.)

Section § 2537.3

This law says that if someone who owns shares in a speech-language pathology or audiology corporation becomes disqualified from providing professional services, they can't receive any income from those services while disqualified.

The income of a speech-language pathology corporation or an audiology corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not in any manner accrue to the benefit of that shareholder or their share in the speech-language pathology or audiology corporation.

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(Amended by Stats. 2023, Ch. 510, Sec. 7. (SB 887) Effective January 1, 2024.)

Section § 2537.4

This law specifies that a speech-language pathology corporation must include certain words from a specific list, as well as the word "corporation" or similar terms, in its name to reflect its corporate status. Similarly, an audiology corporation must do the same, using a different specified list of words relevant to its services.

(a) The name of a speech-language pathology corporation under which it may render professional services shall include one of the words specified in subdivision (a) of Section 2530.3 and the word “corporation” or wording or abbreviations denoting corporate existence.

(b) The name of an audiology corporation under which it may render professional services shall include one of the words specified in subdivision (b) of Section 2530.3 and the word “corporation” or wording or abbreviations denoting corporate existence.

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(Added by renumbering Section 2538 by Stats. 1998, Ch. 1058, Sec. 5. Effective January 1, 1999.)

Section § 2537.5

This section allows the board to create rules for running speech-language pathology or audiology corporations. These rules might include requiring that if someone who owns shares in the company becomes disqualified or passes away, their shares must be sold back to the company or to the other shareholders. The rules might also ensure that these companies have proper insurance or other protections in place to cover any claims made by patients due to professional services.

The board may adopt and enforce regulations to carry out the purposes and objectives of this article, and the Moscone-Knox Professional Corporation Act, including regulations requiring any of the following:

(a) That the bylaws of a speech-language pathology corporation or an audiology corporation shall include a provision whereby the capital stock of the corporation owned by a disqualified person as defined in Section 13401 of the Corporations Code, or by the estate of a deceased person shall be sold to the corporation or to the remaining shareholders of the corporation within that time as the regulations may provide.

(b) That a speech-language pathology corporation or an audiology corporation shall provide adequate security by insurance or otherwise for claims against it by its patients arising out of the rendering of professional services.

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(Added by renumbering Section 2539 by Stats. 1998, Ch. 1058, Sec. 7. Effective January 1, 1999.)