BILL NUMBER: SB 1633 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 28, 2008
PASSED THE ASSEMBLY AUGUST 20, 2008
AMENDED IN ASSEMBLY AUGUST 19, 2008
AMENDED IN ASSEMBLY AUGUST 15, 2008
AMENDED IN ASSEMBLY JUNE 18, 2008
AMENDED IN SENATE MAY 23, 2008
INTRODUCED BY Senator Kuehl
(Coauthor: Senator Aanestad)
FEBRUARY 22, 2008
An act to add Section 654.3 to the Business and Professions Code,
relating to dental services.
LEGISLATIVE COUNSEL'S DIGEST
SB 1633, Kuehl. Dental services: credit.
Existing law prohibits a healing arts licensee, including
physicians and surgeons, psychologists, acupuncturists, optometrists,
dentists, podiatrists, and chiropractic practitioners, from
referring a person for certain health care services if the licensee
has a financial interest, as defined, with the person or entity that
receives the referral. Existing law provides specified exemptions
from this prohibition. Under existing law, a violation of the
provisions governing referrals is a crime.
This bill would prohibit a dentist, or an employee or agent of
that dentist, from charging, without the patient's written consent,
as specified, fees or costs not yet incurred to an open-end credit
extended by a 3rd party that is arranged for or established in the
dental office. The bill would require a dentist to refund to the
lender any payment received for treatment that has not been rendered
or costs that have not been incurred, as specified, within 15
business days upon the patient's request. The bill would prohibit a
dentist, or an employee or agent of that dentist, from arranging for
or establishing credit extended by a 3rd party for a patient without
first providing a written notice, as specified, and a written
treatment plan, as specified, and would prohibit that arrangement or
establishment of credit with regard to a patient who has been
administered or is under the influence of general anesthesia,
conscious sedation, or nitrous oxide. The bill would subject a person
who willfully violates these provisions to specified civil
liability. Because a violation of these provisions would be a crime,
this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 654.3 is added to the Business and Professions
Code, to read:
654.3. (a) A dentist, or an employee or agent of a dentist, shall
not charge to an open-end credit that is extended by a third party
and that is arranged for or established in a dental office, before
the date upon which the treatment is rendered or costs are incurred,
without providing the patient a list of treatment and services to be
rendered, the estimated costs of the treatment and services, and
which treatment and services are being charged in advance of
rendering or incurring of costs, and ensuring that the patient has
received the treatment plan required by subdivision (d).
(b) A dentist shall, within 15 business days of a patient's
request, refund to the lender any payment received for treatment that
has not been rendered or costs that have not been incurred made
through a credit extended by a third party that is arranged for or
established in a dental office.
(c) A dentist, or an employee or agent of that dentist, shall not
arrange for or establish credit extended by a third party for a
patient without first providing the following written notice on one
page in at least 14-point type and obtaining a signature from the
patient:
"Credit for Dental Services
The attached application and information is for a credit card/line
of credit or loan to help you finance your dental treatment. You
should know that:
You are applying for a ____ credit card/line of credit or a ____
loan for $____.
You do not have to apply for the credit card/line of credit or
loan. You may pay your dentist for dental treatment in another
manner.
This credit card/line of credit or loan is not a payment plan with
the dental office; it is credit with (name of company issuing the
credit card/line of credit or loan). Your dentist does not work for
this company.
Before applying for this credit card/line of credit or loan, you
have the right to a written treatment plan from your dentist that
includes the anticipated treatment to be provided and the estimated
costs of each service.
If you are approved for a credit card/line of credit, your dentist
can only charge treatment and lab costs to that credit card/line of
credit when you get the treatment or the dentist incurs costs unless
your dentist has given you a list of treatments that you are paying
for in advance and the cost for each treatment or service.
You have the right to receive a credit to your credit card/line of
credit or loan account refunded for any costs charged to the credit
card/line of credit or loan for treatment that has not been rendered
or costs that your dentist has not incurred. Your dentist must refund
the amount of the charges to the lender within 15 business days of
your request, after which the lender will credit your account.
Please read carefully the terms and conditions of this credit
card/line of credit or loan, including any promotional offers.
You may be required to pay interest on the amount charged to the
credit card/line of credit or the amount of the loan. If you miss a
payment or do not pay on time, you may have to pay a penalty and/or a
higher interest rate.
If you do not pay the money that you owe the company that provides
you with a credit card/line of credit or loan, your missed payments
can appear on your credit report and could hurt your credit rating.
You could also be sued.
(Patient's Signature)"
(d) A dentist shall give a patient a written treatment plan prior
to arranging for or establishing credit extended by a third party.
The treatment plan shall include each anticipated service to be
provided and the estimated cost of each service. If a patient is
covered by a private or government dental benefit plan or dental
insurance, from which the dentist takes assignment of benefits, the
treatment plan shall indicate the patient's private or government
estimated share of cost for each service. If the dentist does not
take assignment of benefits from a patient's dental benefit plan or
insurance, the treatment plan shall indicate that the treatment may
or may not be covered by a patient's dental benefit or insurance
plan, and that the patient has the right to confirm dental benefit or
insurance information from the patient's plan, insurer, or employer
before beginning treatment.
(e) A dentist, or an employee or agent of that dentist, shall not
arrange for or establish credit extended by a third party for a
patient with whom the dentist, or an employee or agent of that
dentist, communicates primarily in a language other than English that
is one of the Medi-Cal threshold languages, unless the written
notice information required by subdivision (c) is also provided in
that language.
(f) A dentist, or an employee or agent of that dentist, shall not
arrange for or establish credit that is extended by a third party for
a patient who has been administered or is under the influence of
general anesthesia, conscious sedation, or nitrous oxide.
(g) A patient who suffers any damage as a result of the use or
employment by any person of a method, act, or practice that willfully
violates this section may seek the relief provided by Chapter 4
(commencing with Section 1780) of Title 1.5 of Part 4 of Division 3
of the Civil Code.
(h) The rights, remedies, and penalties established by this
article are cumulative, and shall not supersede the rights, remedies,
or penalties established under other laws.
(i) For purposes of this section, the following definitions shall
apply:
(1) "Dentist" includes, but is not limited to, a dental
corporation, as defined in Section 1800.
(2) "Open-end credit" means credit extended by a creditor under a
plan in which the creditor reasonably contemplates repeated
transactions, the creditor may impose a finance charge from time to
time on an outstanding unpaid balance, and the amount of credit that
may be extended to the debtor during the term of the plan (up to any
limit set by the creditor) is generally made available to the extent
that any outstanding balance is repaid.
(3) "Patient" includes, but is not limited to, the patient's
parent or other legal representative.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.