Washington 2025-2026 Regular Session Status: Passed Senate 7 D cosponsors

SB 5387 — Concerning the corporate practice of medicine.

Last action — Senate Rules "X" file.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the Senate. Introduced January 21, 2025. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the House.

Prognosis

Advancing 38% · moderate confidence

Where this bill stands today.

Odds of enactment

Moderate

How often bills like it became law.

  • Passed Senate

    Current position in the legislative process.

  • 7 sponsors

    1 primary, 6 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (7 D).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

513 added · 676 removed

Plain-language change summary

The latest version of SB 5387 has changed its focus from the "corporate practice of health care" to specifically addressing the "corporate practice of medicine." This shift involves the removal of certain sections related to health care and the addition of new sections that clarify regulations specific to medical practice. This matters because it aims to strengthen accountability and governance in medical practices, ensuring better oversight and standards in the provision of medical care.

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S-1680.1 SUBSTITUTE SENATE BILL 5387 State of Washington 69th Legislature 2025 Regular Session By Senate Health & Long-Term Care (originally sponsored by Senators Robinson, Hasegawa, Liias, Nobles, Riccelli, Stanford, and Valdez) READ FIRST TIME 02/21/25.
S-0302.2 SENATE BILL 5387 State of Washington 69th Legislature 2025 Regular Session By Senators Robinson, Hasegawa, Liias, Nobles, Riccelli, Stanford, and Valdez Read first time 01/21/25.
AN ACT Relating to the corporate practice of health care;
Referred to Committee on Health & Long- Term Care.
amending RCW 18.130.180, 18.130.190, and 19.100.120;
AN ACT Relating to the corporate practice of medicine;
amending RCW 18.130.180 and 19.100.120;
adding a new section to chapter 18.134 RCW;
adding a new section to chapter 18.47 RCW;
adding a new section to chapter 18.290 RCW;
and adding a new section to chapter 18.290 RCW.
and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
1 SSB 5387 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
1 SB 5387 NEW SECTION.
NEW SECTION.
(1) Except as permitted under this chapter and chapter 25.15 RCW, it is unlawful for an individual, corporation, partnership, or any other entity without a license to practice a health care profession, own a health care practice, employ licensed health care providers, or otherwise engage in a licensed health care profession.
(1) Except as permitted under this chapter and chapter 25.15 RCW, it is unlawful for an individual, corporation, partnership, or any other entity without a license to practice medicine, own a medical practice, employ licensed health care providers, or otherwise engage in the practice of medicine.
(2) In a professional service corporation organized under this chapter for the purpose of establishing a health care practice, health care providers licensed in this state must:
(2) In a professional service corporation organized under this chapter for the purpose of establishing a medical practice, health care providers licensed in this state must:
(3) Shareholders who are health care providers licensed in this state must exhibit meaningful ownership of a health care practice organized under this chapter by being substantially engaged in delivering care or managing the practice.
(3) Majority shareholders must exhibit meaningful ownership of a medical practice organized under this chapter by being present in the state and substantially engaged in delivering care and managing the practice.
(4) A shareholder, director, or officer of a health care practice organized under this chapter may not:
(4) A shareholder, director, or officer of a medical practice organized under this chapter may not:
(a) Own or control shares in, serve as a director or officer of, be an employee of or an independent contractor with, or otherwise participate in managing both the health care practice and a management services organization with which the health care practice has a contract;
(a) Own or control shares in, serve as a director or officer of, be an employee of or an independent contractor with, or otherwise participate in managing both the medical practice and a management services organization with which the medical practice has a contract;
(b) Receive substantial compensation or remuneration from a management services organization in return for ownership or management of the health care practice;
(b) Receive substantial compensation or remuneration from a management services organization in return for ownership or management of the medical practice;
(c) Transfer or relinquish control over the sale, the restriction of the sale, or the encumbrance of the sale of the health care practice's shares or assets;
(c) Transfer or relinquish control over the sale, the restriction of the sale, or the encumbrance of the sale of the medical practice's shares or assets;
(d) Transfer or relinquish control over the issuing of shares of stock in the health care practice, a subsidiary of the health care practice, or an entity affiliated with the health care practice, or the paying of dividends;
(d) Transfer or relinquish control over the issuing of shares of stock in the medical practice, a subsidiary of the medical practice, or an entity affiliated with the medical practice, or the paying of dividends;
or p.
or (e) Enter into any financial arrangement in violation of chapter 19.68 RCW.
2 SSB 5387 (e) Enter into any financial arrangement in violation of chapter 19.68 RCW.
(5)(a) A shareholder, director, or officer of a medical practice organized under this chapter may not relinquish control over or otherwise transfer de facto control over any of the medical p.
(5)(a) A shareholder who is a licensed health care provider of a health care practice organized under this chapter may not relinquish control over or otherwise transfer control over any of the health care practice's administrative, business, or clinical operations that affect clinical decision making or the nature or quality of health care that the practice delivers by means of a contract or other agreement or arrangement;
2 SB 5387 practice's administrative, business, or clinical operations that may affect clinical decision making or the nature or quality of medical care that the medical practice delivers by means of a contract or other agreement or arrangement;
by providing in the health care practice's articles of incorporation or bylaws;
by providing in the medical practice's articles of incorporation or bylaws;
(b) Nothing in this subsection shall be construed to limit the ability of a shareholder who is a licensed health care provider from consulting or collaborating with any person when developing policies or making decisions that affect clinical decision making or the nature or quality of health care provided by the practice, provided that the ultimate decision is made by the shareholder, who is a licensed health care provider.
(b) Conduct prohibited under (a) of this subsection includes, but is not limited to, relinquishing decision making authority over:
(6) This section does not apply to hospitals in this state licensed under chapter 70.41 RCW or licensed by any other state;
(i) Hiring or terminating, setting work schedules and compensation, or otherwise specifying terms of employment of employees who are licensed to practice medicine in this state;
any entity that directly or indirectly controls, is controlled by, or is under common control with a hospital licensed in this state under chapter 70.41 or 71.12 RCW or licensed by any other state;
(ii) The disbursement of revenue generated from provider fees and other revenue generated by provider services;
private establishments licensed under chapter 71.12 RCW;
(iii) Collaboration and negotiation with hospitals and other institutions with which a licensed health care provider employed by the medical practice may deliver clinical care, particularly with regard to controlling a provider's schedules as a means of discipline;
nursing homes licensed under chapter 18.51 RCW;
(iv) Setting staffing levels, or specifying the period of time a provider may see a patient, for any location that serves patients;
ambulatory surgical facilities licensed under chapter 70.230 RCW;
(v) Making diagnostic coding decisions;
birthing centers licensed under chapter 18.46 RCW;
(vi) Setting clinical standards or policies;
in-home service agencies licensed under chapter 70.127 RCW;
(vii) Setting policies for patient, client, or customer billing and collection;
federally qualified health centers as defined in 42 U.S.C.
(viii) Setting the prices, rates, or amounts the medical practice charges for a provider's services;
or (ix) Negotiating, executing, performing, enforcing, or terminating contracts with third-party payors or persons that are not employees of the medical practice.
(6) This section does not apply to hospitals licensed under chapter 70.41 RCW, private establishments licensed under chapter 71.12 RCW, nursing homes licensed under chapter 18.51 RCW, ambulatory surgical facilities licensed under chapter 70.230 RCW, birthing centers licensed under chapter 18.46 RCW, hospice care centers licensed under chapter 70.127 RCW, or federally qualified health centers as defined in 42 U.S.C.
1396d;
1396d.
or a telemedicine-exclusive medical group as defined in section 8 of this act.
(7) For the purposes of this section, "management services organization" means any organization or entity that contracts with a professional service corporation to perform management or p.
(7) For the purposes of this section, "management services organization" means any organization or entity that contracts with a professional service corporation to perform management or administrative services relating to, supporting, or facilitating the provision of health care services.
3 SB 5387 administrative services relating to, supporting, or facilitating the provision of health care services.
(1) No person without a license to practice a health care profession in this state, who is employed by, contracted with, or p.
(1) No person without a license to practice medicine in this state, who is employed by, contracted with, or affiliated with a hospital licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the hospital, who is providing care to a patient at the hospital.
3 SSB 5387 affiliated with a hospital licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the hospital, who is providing care to a patient at the hospital, and who is acting within their scope of practice.
(2) Conduct prohibited under this section includes, as applicable, but is not limited to, controlling, either directly or indirectly, through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure, any of the following:
(2) Conduct prohibited under this section includes, as applicable, but is not limited to, controlling through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure, any of the following:
or (e) The range of clinical orders available to a health care provider, including by configuring the medical record to prohibit or significantly limit the options available to the provider.
(e) The range of clinical orders available to a health care provider, including by configuring the medical record to prohibit or significantly limit the options available to the provider;
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(3) Nothing in this section shall be construed to prohibit any policy or requirement that:
or (f) Any other action specified by rule to constitute impermissible interference or control over the clinical judgment and decision making of a health care provider related to the diagnosis and treatment of a patient.
(a) Requires a health care provider to comply with applicable laws, coding guidelines, or third-party payor requirements;
(b) A health care provider must comply with for purposes of credentialing, privileging, quality improvement, peer review, action taken by the Washington medical commission, or the physician health program under chapter 18.71 RCW;
or (c) Is part of a quality incentive program, a comanagement arrangement, or a value-based care initiative.
(1) No person without a license to practice a health care profession in this state, who is employed by, contracted with, or p.
p.
4 SSB 5387 affiliated with a private establishment licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decision making of a licensed health care provider employed by, affiliated with, or contracted with the private establishment, who is providing care to a patient at the private establishment, and who is acting within their scope of practice.
4 SB 5387 (1) No person without a license to practice medicine in this state, who is employed by, contracted with, or affiliated with a private establishment licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decision making of a licensed health care provider employed by, affiliated with, or contracted with the private establishment, who is providing care to a patient at the private establishment.
(2) Conduct prohibited under this section includes, as applicable, but is not limited to, controlling through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure, any of the following:
(2) Conduct prohibited under this section includes, as applicable, but is not limited to, controlling, either directly or indirectly, through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure, any of the following:
or (e) The range of clinical orders available to a health care provider, including by configuring the medical record to prohibit or significantly limit the options available to the provider.
(e) The range of clinical orders available to a health care provider, including by configuring the medical record to prohibit or significantly limit the options available to the provider;
(3) Nothing in this section shall be construed to prohibit any policy or requirement that:
or (f) Any other action specified by rule to constitute impermissible interference or control over the clinical judgment and decision making of a health care provider related to the diagnosis and treatment of a patient.
(a) Requires a health care provider to comply with applicable laws, coding guidelines, or third-party payor requirements;
(b) A health care provider must comply with for purposes of credentialing, privileging, quality improvement, peer review, action taken by the Washington medical commission, or the physician health program under chapter 18.71 RCW;
or (c) Is part of a quality incentive program, a comanagement arrangement, or a value-based care initiative.
(1) No person without a license to practice a health care profession in this state, who is employed by, contracted with, or p.
(1) No person without a license to practice medicine in this state, who is employed by, contracted with, or affiliated with an ambulatory surgical facility licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decision making of a licensed health care provider employed by, affiliated with, or contracted with the p.
5 SSB 5387 affiliated with an ambulatory surgical facility licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decision making of a licensed health care provider employed by, affiliated with, or contracted with the ambulatory surgical facility, who is providing care to a patient at the ambulatory surgical facility, and who is acting within their scope of practice.
5 SB 5387 ambulatory surgical facility, who is providing care to a patient at the ambulatory surgical facility.
(2) Conduct prohibited under this section includes, as applicable, but is not limited to, controlling through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure, any of the following:
(2) Conduct prohibited under this section includes, as applicable, but is not limited to, controlling, either directly or indirectly, through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure, any of the following:
or (e) The range of clinical orders available to a health care provider, including by configuring the medical record to prohibit or significantly limit the options available to the provider.
(e) The range of clinical orders available to a health care provider, including by configuring the medical record to prohibit or significantly limit the options available to the provider;
(3) Nothing in this section shall be construed to prohibit any policy or requirement that:
or (f) Any other action specified by rule to constitute impermissible interference or control over the clinical judgment and decision making of a health care provider related to the diagnosis and treatment of a patient.
(a) Requires a health care provider to comply with applicable laws, coding guidelines, or third-party payor requirements;
(b) A health care provider must comply with for purposes of credentialing, privileging, quality improvement, peer review, action taken by the Washington medical commission, or the physician health program under chapter 18.71 RCW;
or (c) Is part of a quality incentive program, a comanagement arrangement, or a value-based care initiative.
(1) No person without a license to practice a health care profession in this state, who is employed by, contracted with, or affiliated with a nursing home licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the nursing home, p.
(1) No person without a license to practice medicine in this state, who is employed by, contracted with, or affiliated with a nursing home licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the nursing home, who is providing care to residents of the nursing home.
6 SSB 5387 who is providing care to residents of the nursing home, and who is acting within their scope of practice.
(2) Conduct prohibited under this section includes, but is not limited to, controlling or attempting to control decision making concerning the practice of medicine or the diagnosis and treatment of any patient, either directly or indirectly, through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure of any kind.
(2) Conduct prohibited under this section includes, but is not limited to, controlling or attempting to control decision making concerning the practice of medicine or the diagnosis and treatment of any patient through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure of any kind.
(3) Nothing in this section shall be construed to prohibit any policy or requirement that:
(a) Requires a health care provider to comply with applicable laws, coding guidelines, or third-party payor requirements;
(b) A health care provider must comply with for purposes of credentialing, privileging, quality improvement, peer review, action taken by the Washington medical commission, or the physician health program under chapter 18.71 RCW;
or (c) Is part of a quality incentive program, a comanagement arrangement, or a value-based care initiative.
(1) No person without a license to practice a health care profession in this state, who is employed by, contracted with, or affiliated with a birthing center licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the birthing center, who is providing care to a patient in the birthing center, and who is acting within their scope of practice.
(2) Conduct prohibited under this section includes, but is not limited to, controlling or attempting to control decision making concerning the practice of medicine or the diagnosis and treatment of any patient through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure of any kind.
(3) Nothing in this section shall be construed to prohibit any policy or requirement that:
(a) Requires a health care provider to comply with applicable laws, coding guidelines, or third-party payor requirements;
7 SSB 5387 (b) A health care provider must comply with for purposes of credentialing, privileging, quality improvement, peer review, action taken by the Washington medical commission, or the physician health program under chapter 18.71 RCW;
6 SB 5387 (1) No person without a license to practice medicine in this state, who is employed by, contracted with, or affiliated with a birthing center licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the birthing center, who is providing care to a patient in the birthing center.
or (c) Is part of a quality incentive program, a comanagement arrangement, or a value-based care initiative.
(2) Conduct prohibited under this section includes, but is not limited to, controlling or attempting to control decision making concerning the practice of medicine or the diagnosis and treatment of any patient, either directly or indirectly, through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure of any kind.
(1) No person without a license to practice a health care profession in this state, who is employed by, contracted with, or affiliated with an in-home care agency licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the in-home services agency, who is providing care to an individual in a in-home services agency operated by the in-home services agency, and who is acting within their scope of practice.
(1) No person without a license to practice medicine in this state, who is employed by, contracted with, or affiliated with a hospice agency licensed under this chapter, may interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with the hospice care agency, who is providing care to an individual in a hospice care center operated by the hospice agency.
(2) Conduct prohibited under this section includes, but is not limited to, controlling or attempting to control decision making concerning the practice of medicine or the diagnosis and treatment of any patient through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure of any kind.
(2) Conduct prohibited under this section includes, but is not limited to, controlling or attempting to control decision making concerning the practice of medicine or the diagnosis and treatment of any patient, either directly or indirectly, through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure of any kind.
(3) Nothing in this section shall be construed to prohibit any policy or requirement that:
(a) Requires a health care provider to comply with applicable laws, coding guidelines, or third-party payor requirements;
(b) A health care provider must comply with for purposes of credentialing, privileging, quality improvement, peer review, action taken by the Washington medical commission, or the physician health program under chapter 18.71 RCW;
or (c) Is part of a quality incentive program, a comanagement arrangement, or a value-based care initiative.
NEW SECTION.
A new section is added to chapter 18.134 RCW to read as follows:
(1) No person without a license to practice a health care profession in this state, who is employed by, contracted with, or affiliated with a telemedicine-exclusive medical practice, may p.
8 SSB 5387 interfere with, control, or otherwise direct the professional judgment or clinical decisions of a licensed health care provider employed by, affiliated with, or contracted with a telemedicine- exclusive medical practice, and who is acting within their scope of practice.
(2) Conduct prohibited under this section includes, as applicable, but is not limited to, controlling through policy, discipline, punishment, threats, adverse employment actions, coercion, retaliation, or excessive pressure, any of the following:
(a) The period of time a provider may spend with a patient;
(b) The provider's ability to recommend and refer the patient to in-person treatment;
(c) The clinical status of the patient, including whether the patient should be referred to another provider;
(d) The diagnoses, diagnostic terminology, or codes that are entered into the medical record by the health care provider;
or (e) The range of clinical orders available to a health care provider, including by configuring the medical record to prohibit or significantly limit the options available to the provider.
(3) Nothing in this section shall be construed to prohibit any policy or requirement that:
(a) Requires a health care provider to comply with applicable laws, coding guidelines, or third-party payor requirements;
(b) A health care provider must comply with for purposes of credentialing, privileging, quality improvement, peer review, action taken by the Washington medical commission, or the physician health program under chapter 18.71 RCW;
or (c) Is part of a quality incentive program, a comanagement arrangement, or a value-based care initiative.
(4) The legislature finds that the practices covered by this section are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.
A violation of this chapter is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW.
(5) For the purposes of this section, "telemedicine-exclusive medical group" means an entity which engages with patients p.
9 SSB 5387 exclusively through telemedicine as defined in RCW 70.41.020 and does not offer in-person health care services.
Sec.
9.
If the act constitutes a crime, conviction in a criminal proceeding is not a condition precedent to disciplinary action.
If the act constitutes a crime, conviction in a criminal proceeding is not a p.
7 SB 5387 condition precedent to disciplinary action.
(6) The possession, use, prescription for use, or distribution of controlled substances or legend drugs in any way other than for legitimate or therapeutic purposes, diversion of controlled p.
(6) The possession, use, prescription for use, or distribution of controlled substances or legend drugs in any way other than for legitimate or therapeutic purposes, diversion of controlled substances or legend drugs, the violation of any drug law, or prescribing controlled substances for oneself;
10 SSB 5387 substances or legend drugs, the violation of any drug law, or prescribing controlled substances for oneself;
(c) Not responding to subpoenas issued by the disciplining authority, whether or not the recipient of the subpoena is the accused in the proceeding;
p.
8 SB 5387 (c) Not responding to subpoenas issued by the disciplining authority, whether or not the recipient of the subpoena is the accused in the proceeding;
p.
Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;
11 SSB 5387 Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;
(21) Interference with an investigation or disciplinary proceeding by willful misrepresentation of facts before the disciplining authority or its authorized representative, or by the use of threats or harassment against any patient or witness to prevent them from providing evidence in a disciplinary proceeding or any other legal action, or by the use of financial inducements to any patient or witness to prevent or attempt to prevent him or her from providing evidence in a disciplinary proceeding;
p.
9 SB 5387 (21) Interference with an investigation or disciplinary proceeding by willful misrepresentation of facts before the disciplining authority or its authorized representative, or by the use of threats or harassment against any patient or witness to prevent them from providing evidence in a disciplinary proceeding or any other legal action, or by the use of financial inducements to any patient or witness to prevent or attempt to prevent him or her from providing evidence in a disciplinary proceeding;
(27) Violation of any provision of sections 1 through 8 of this act;
(27) Violation of any provision of sections 1 through 7 of this act;
or p.
or (((29))) (30) Implanting the license holder's own gametes or reproductive material into a patient.
12 SSB 5387 (((29))) (30) Implanting the license holder's own gametes or reproductive material into a patient.
NEW SECTION.
9.
A new section is added to chapter 18.71 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
NEW SECTION.
Sec.
RCW 18.130.190 and 2003 c 53 s 141 are each amended to read as follows:
A new section is added to chapter 18.57 RCW to read as follows:
(1) The secretary shall investigate complaints concerning practice by unlicensed persons of a profession or business for which a license is required by the chapters specified in RCW 18.130.040 including, but not limited to, a violation of section 1 of this act.
In the investigation of the complaints, the secretary shall have the same authority as provided the secretary under RCW 18.130.050.
(2) The secretary may issue a notice of intention to issue a cease and desist order to any person whom the secretary has reason to believe is engaged in the unlicensed practice of a profession or business for which a license is required by the chapters specified in RCW 18.130.040.
The person to whom such notice is issued may request an adjudicative proceeding to contest the charges.
The request for hearing must be filed within twenty days after service of the notice of intention to issue a cease and desist order.
The failure to request a hearing constitutes a default, whereupon the secretary may enter a permanent cease and desist order, which may include a civil fine.
All proceedings shall be conducted in accordance with chapter 34.05 RCW.
(3) If the secretary makes a final determination that a person has engaged or is engaging in unlicensed practice, the secretary may issue a cease and desist order.
In addition, the secretary may impose a civil fine in an amount not exceeding one thousand dollars for each day upon which the person engaged in unlicensed practice of a business or profession for which a license is required by one or more of the chapters specified in RCW 18.130.040.
The proceeds of such fines shall be deposited to the health professions account.
(4) If the secretary makes a written finding of fact that the public interest will be irreparably harmed by delay in issuing an order, the secretary may issue a temporary cease and desist order.
The person receiving a temporary cease and desist order shall be provided an opportunity for a prompt hearing.
The temporary cease and desist order shall remain in effect until further order of the secretary.
The failure to request a prompt or regularly scheduled hearing constitutes a default, whereupon the secretary may enter a permanent cease and desist order, which may include a civil fine.
13 SSB 5387 (5) Neither the issuance of a cease and desist order nor payment of a civil fine shall relieve the person so practicing or operating a business without a license from criminal prosecution therefor, but the remedy of a cease and desist order or civil fine shall be in addition to any criminal liability.
10 SB 5387 Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
The cease and desist order is conclusive proof of unlicensed practice and may be enforced under RCW 7.21.060.
This method of enforcement of the cease and desist order or civil fine may be used in addition to, or as an alternative to, any provisions for enforcement of agency orders set out in chapter 34.05 RCW.
(6) The attorney general, a county prosecuting attorney, the secretary, a board, or any person may in accordance with the laws of this state governing injunctions, maintain an action in the name of this state to enjoin any person practicing a profession or business for which a license is required by the chapters specified in RCW 18.130.040 without a license from engaging in such practice or operating such business until the required license is secured.
However, the injunction shall not relieve the person so practicing or operating a business without a license from criminal prosecution therefor, but the remedy by injunction shall be in addition to any criminal liability.
(7)(a) Unlicensed practice of a profession or operating a business for which a license is required by the chapters specified in RCW 18.130.040, unless otherwise exempted by law, constitutes a gross misdemeanor for a single violation.
(b) Each subsequent violation, whether alleged in the same or in subsequent prosecutions, is a class C felony punishable according to chapter 9A.20 RCW.
(8) All fees, fines, forfeitures, and penalties collected or assessed by a court because of a violation of this section shall be remitted to the health professions account.
A new section is added to chapter 18.71 RCW to read as follows:
A new section is added to chapter 18.79 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant for a registered nurse, advanced practice registered nurse, or licensed practical nurse license must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
p.
NEW SECTION.
14 SSB 5387 NEW SECTION.
A new section is added to chapter 18.57 RCW to read as follows:
A new section is added to chapter 18.06 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.79 RCW to read as follows:
A new section is added to chapter 18.225 RCW to read as follows:
Upon application for a license or license renewal, an applicant for a registered nurse, advanced practice registered nurse, or licensed practical nurse license must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.06 RCW to read as follows:
A new section is added to chapter 18.22 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.225 RCW to read as follows:
A new section is added to chapter 18.25 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that p.
11 SB 5387 they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.22 RCW to read as follows:
A new section is added to chapter 18.32 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.25 RCW to read as follows:
A new section is added to chapter 18.29 RCW to read as follows:
p.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
15 SSB 5387 Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
A new section is added to chapter 18.32 RCW to read as follows:
A new section is added to chapter 18.36A RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.29 RCW to read as follows:
A new section is added to chapter 18.47 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for certification or certification renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.36A RCW to read as follows:
A new section is added to chapter 18.50 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
NEW SECTION.
p.
12 SB 5387 NEW SECTION.
A new section is added to chapter 18.50 RCW to read as follows:
A new section is added to chapter 18.53 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
A new section is added to chapter 18.53 RCW to read as follows:
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
p.
16 SSB 5387 NEW SECTION.
Sec.
23.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
24.
23.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
25.
24.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
26.
25.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the commission, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
27.
26.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they p.
13 SB 5387 are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
28.
27.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they p.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
17 SSB 5387 are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
29.
28.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the board, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
30.
29.
Upon application for certification or certification renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for certification or certification renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
31.
30.
Upon application for certification or certification renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for certification or certification renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
32.
31.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 8 of this act.
Upon application for a license or license renewal, an applicant must attest, in a form and manner determined by the secretary, that they are aware of regulations related to the corporate practice of medicine included in sections 1 through 7 of this act.
Sec.
p.
33.
14 SB 5387 Sec.
32.
p.
(1) The registration statement as of its effective date, or as of any earlier date in the case of an order denying effectiveness, is incomplete in any material respect or contains any statement which was in the light of the circumstances under which it was made false or misleading with respect to any material fact;
18 SSB 5387 (1) The registration statement as of its effective date, or as of any earlier date in the case of an order denying effectiveness, is incomplete in any material respect or contains any statement which was in the light of the circumstances under which it was made false or misleading with respect to any material fact;
(4) A franchisor's enterprise or method of business includes or would include activities which are illegal where performed , including but not limited to violations of section 1 of this act;
(4) A franchisor's enterprise or method of business includes or would include activities which are illegal where performed, including but not limited to violations of section 1 of this act;
(7) The applicant or registrant has failed to pay the proper registration fee but the director may enter only a denial order under this subsection and he or she shall vacate such order when the deficiency has been corrected.
19 SSB 5387 NEW SECTION.
15 SB 5387 (7) The applicant or registrant has failed to pay the proper registration fee but the director may enter only a denial order under this subsection and he or she shall vacate such order when the deficiency has been corrected.
Sec.
34.
This act takes effect January 1, 2027.
20 SSB 5387
16 SB 5387
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Action History

  1. Senate Rules "X" file.

  2. Placed on second reading by Rules Committee.

  3. Passed to Rules Committee for second reading.

  4. Minority; without recommendation.

  5. Minority; do not pass.

  6. WM - Majority; 3rd substitute bill be substituted, do pass.

  7. Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.

  8. Public hearing in the Senate Committee on Ways & Means at 1:30 PM.

  9. Rules Committee relieved of further consideration. On motion, referred to Ways & Means.

  10. By resolution, reintroduced and retained in present status.

  11. Senate Rules "X" file.

  12. Passed to Rules Committee for second reading.

  13. Minority; without recommendation.

  14. Minority; do not pass.

  15. WM - Majority; 2nd substitute bill be substituted, do pass.

  16. Executive action taken in the Senate Committee on Ways & Means at 1:30 PM.

  17. Public hearing in the Senate Committee on Ways & Means at 1:30 PM.

  18. Referred to Ways & Means.

  19. Minority; without recommendation.

  20. Minority; do not pass.

  21. And refer to Ways & Means.

  22. HLTC - Majority; 1st substitute bill be substituted, do pass.

  23. Executive action taken in the Senate Committee on Health & Long-Term Care at 8:00 AM.

  24. Public hearing in the Senate Committee on Health & Long-Term Care at 8:00 AM.

  25. First reading, referred to Health & Long-Term Care.

Sponsors

Sponsorship breakdown

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1 sponsors · 6 co-sponsors · 144 not signed on

Sponsors (1)

Co-sponsors (6)

Not signed on (144)

144 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

healthcare health-insurance
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Frequently asked questions

Who sponsors SB 5387?
SB 5387 is sponsored by Derek Stanford (Democrat), Marcus Riccelli (Democrat), T'wina Nobles (Democrat), Marko Liias (Democrat), Bob Hasegawa (Democrat), June Robinson (Democrat), and Javier Valdez (Democrat).
What is the current status of SB 5387?
This bill has passed the Senate. Introduced January 21, 2025. It now moves to the second chamber.
Where can I track SB 5387?
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