Amended in Assembly April 22, 2015

Amended in Assembly April 16, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 502


Introduced by Assembly Member Chau

February 23, 2015


An act to amend Section 1926 of the Business and Professions Code, to amend Sections 13401 and 13401.5 of the Corporations Code, to add Section 1374.196 to the Health and Safety Code, and to add Section 10120.4 to the Insurance Code, relating to dental hygiene.

LEGISLATIVE COUNSEL’S DIGEST

AB 502, as amended, Chau. Dental hygiene.

(1) Existing law, the Dental Practice Act, provides for the licensure and regulation of registered dental hygienists, registered dental hygienists in extended functions, and registered dental hygienists in alternative practice by the Dental Hygiene Committee of California.

Existing law authorizes a registered dental hygienist in alternative practice to perform various duties in specified settings, including dental health professional shortage areas, as certified by the Office of Statewide Health Planning and Development.

begin delete

This bill would require an alternative dental hygiene practice established within a certified shortage area to continue regardless of certification.

end delete
begin insert

This bill would provide that an alternative dental hygiene practice established within a certified shortage area is not required to close due to the removal of the dental health professional shortage area designation if the registered dental hygienist in alternative practice meets certain requirements.

end insert

(2) Existing law, the Moscone-Knox Professional Corporation Act, prohibits a professional corporation from rendering professional services in this state without a currently effective certificate of registration issued by the governmental agency regulating the profession in which the corporation is or proposes to be engaged and excepts any professional corporation rendering professional services by persons duly licensed by specified state entities from that requirement. Existing law authorizes specified healing arts practitioners to be shareholders, officers, directors, or professional employees of a designated professional corporation, subject to certain limitations relating to ownership of shares.

This bill would additionally except any professional corporation rendering professional services by persons duly licensed by the Dental Hygiene Committee of California from the certificate of registration requirement. The bill would authorize dental assistants and licensed dentists to be shareholders, officers, directors, or professional employees of a registered dental hygienist in alternative practice corporation.

(3) Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance. Existing law provides certain standards that govern health care service plan contracts covering dental services, health insurance policies covering dental services, specialized health care service plan contracts covering dental services, and specialized health insurance policies covering dental services.

This bill would require health care service plan contracts covering dental services, health insurance policies covering dental services, specialized health care service plan contracts covering dental services, and specialized health insurance policies covering dental services issued, amended, or renewed on or after January 1, 2016, tobegin delete reimburseend deletebegin insert provide specified reimbursement forend insert registered dental hygienists in alternative practicebegin delete forend delete performing dental hygiene services that may lawfully be performed by registered dental hygienists and that are reimbursable under the contracts or policies. The bill would also require the plan or insurer to use the same fee schedule for reimbursing both registered dental hygienists and registered dental hygienists in alternative practice. Because a willful violation of the bill’s provisions by a health care service plan covering dental services or a specialized health care service plan covering dental services would be a crime, it would impose a state-mandated local program.

(4) 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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 1926 of the Business and Professions
2Code
is amended to read:

3

1926.  

A registered dental hygienist in alternative practice may
4perform the duties authorized pursuant to subdivision (a) of Section
51907, subdivision (a) of Section 1908, and subdivisions (a) and
6(b) of Section 1910 in the following settings:

7(a) Residences of the homebound.

8(b) Schools.

9(c) Residential facilities and other institutions.

10(d) Dental health professional shortage areas, as certified by the
11Office of Statewide Health Planning and Development in
12accordance with existing office guidelines.begin delete An alternative dental
13hygiene practice established within a certified shortage area shall
14continue regardless of certification.end delete
begin insert An alternative dental hygiene
15practice established within a certified shortage area shall not be
16required to close due to the removal of the dental health
17professional shortage area designation if the registered dental
18hygienist in alternative practice continues to serve those patients
19that lack or have limited access to dental care including, but not
20limited to, Medi-Cal program patients, and at least 40 percent of
21the total alternative dental hygiene practice serves those
22underserved populations.end insert

23

SEC. 2.  

Section 13401 of the Corporations Code is amended
24to read:

25

13401.  

As used in this part:

26(a) “Professional services” means any type of professional
27services that may be lawfully rendered only pursuant to a license,
P4    1certification, or registration authorized by the Business and
2Professions Code, the Chiropractic Act, or the Osteopathic Act.

3(b) “Professional corporation” means a corporation organized
4under the General Corporation Law or pursuant to subdivision (b)
5of Section 13406 that is engaged in rendering professional services
6in a single profession, except as otherwise authorized in Section
713401.5, pursuant to a certificate of registration issued by the
8governmental agency regulating the profession as herein provided
9and that in its practice or business designates itself as a professional
10or other corporation as may be required by statute. However, any
11professional corporation or foreign professional corporation
12rendering professional services by persons duly licensed by the
13Medical Board of California or any examining committee under
14the jurisdiction of the board, the Osteopathic Medical Board of
15California, the Dental Board of California, the Dental Hygiene
16Committee of California, the California State Board of Pharmacy,
17the Veterinary Medical Board, the California Architects Board,
18the Court Reporters Board of California, the Board of Behavioral
19Sciences, the Speech-Language Pathology and Audiology Board,
20the Board of Registered Nursing, or the State Board of Optometry
21shall not be required to obtain a certificate of registration in order
22to render those professional services.

23(c) “Foreign professional corporation” means a corporation
24organized under the laws of a state of the United States other than
25this state that is engaged in a profession of a type for which there
26is authorization in the Business and Professions Code for the
27performance of professional services by a foreign professional
28corporation.

29(d) “Licensed person” means any natural person who is duly
30licensed under the provisions of the Business and Professions
31Code, the Chiropractic Act, or the Osteopathic Act to render the
32same professional services as are or will be rendered by the
33professional corporation or foreign professional corporation of
34which he or she is, or intends to become, an officer, director,
35shareholder, or employee.

36(e) “Disqualified person” means a licensed person who for any
37reason becomes legally disqualified (temporarily or permanently)
38to render the professional services that the particular professional
39corporation or foreign professional corporation of which he or she
40is an officer, director, shareholder, or employee is or was rendering.

P5    1

SEC. 3.  

Section 13401.5 of the Corporations Code is amended
2to read:

3

13401.5.  

Notwithstanding subdivision (d) of Section 13401
4and any other provision of law, the following licensed persons
5may be shareholders, officers, directors, or professional employees
6of the professional corporations designated in this section so long
7as the sum of all shares owned by those licensed persons does not
8exceed 49 percent of the total number of shares of the professional
9corporation so designated herein, and so long as the number of
10those licensed persons owning shares in the professional
11corporation so designated herein does not exceed the number of
12persons licensed by the governmental agency regulating the
13designated professional corporation. This section does not limit
14employment by a professional corporation designated in this section
15 to only those licensed professionals listed under each subdivision.
16Any person duly licensed under Division 2 (commencing with
17Section 500) of the Business and Professions Code, the
18Chiropractic Act, or the Osteopathic Act may be employed to
19render professional services by a professional corporation
20designated in this section.

21(a) Medical corporation.

22(1) Licensed doctors of podiatric medicine.

23(2) Licensed psychologists.

24(3) Registered nurses.

25(4) Licensed optometrists.

26(5) Licensed marriage and family therapists.

27(6) Licensed clinical social workers.

28(7) Licensed physician assistants.

29(8) Licensed chiropractors.

30(9) Licensed acupuncturists.

31(10) Naturopathic doctors.

32(11) Licensed professional clinical counselors.

33(12) Licensed physical therapists.

34(b) Podiatric medical corporation.

35(1) Licensed physicians and surgeons.

36(2) Licensed psychologists.

37(3) Registered nurses.

38(4) Licensed optometrists.

39(5) Licensed chiropractors.

40(6) Licensed acupuncturists.

P6    1(7) Naturopathic doctors.

2(8) Licensed physical therapists.

3(c) Psychological corporation.

4(1) Licensed physicians and surgeons.

5(2) Licensed doctors of podiatric medicine.

6(3) Registered nurses.

7(4) Licensed optometrists.

8(5) Licensed marriage and family therapists.

9(6) Licensed clinical social workers.

10(7) Licensed chiropractors.

11(8) Licensed acupuncturists.

12(9) Naturopathic doctors.

13(10) Licensed professional clinical counselors.

14(d) Speech-language pathology corporation.

15(1) Licensed audiologists.

16(e) Audiology corporation.

17(1) Licensed speech-language pathologists.

18(f) Nursing corporation.

19(1) Licensed physicians and surgeons.

20(2) Licensed doctors of podiatric medicine.

21(3) Licensed psychologists.

22(4) Licensed optometrists.

23(5) Licensed marriage and family therapists.

24(6) Licensed clinical social workers.

25(7) Licensed physician assistants.

26(8) Licensed chiropractors.

27(9) Licensed acupuncturists.

28(10) Naturopathic doctors.

29(11) Licensed professional clinical counselors.

30(g) Marriage and family therapist corporation.

31(1) Licensed physicians and surgeons.

32(2) Licensed psychologists.

33(3) Licensed clinical social workers.

34(4) Registered nurses.

35(5) Licensed chiropractors.

36(6) Licensed acupuncturists.

37(7) Naturopathic doctors.

38(8) Licensed professional clinical counselors.

39(h) Licensed clinical social worker corporation.

40(1) Licensed physicians and surgeons.

P7    1(2) Licensed psychologists.

2(3) Licensed marriage and family therapists.

3(4) Registered nurses.

4(5) Licensed chiropractors.

5(6) Licensed acupuncturists.

6(7) Naturopathic doctors.

7(8) Licensed professional clinical counselors.

8(i) Physician assistants corporation.

9(1) Licensed physicians and surgeons.

10(2) Registered nurses.

11(3) Licensed acupuncturists.

12(4) Naturopathic doctors.

13(j) Optometric corporation.

14(1) Licensed physicians and surgeons.

15(2) Licensed doctors of podiatric medicine.

16(3) Licensed psychologists.

17(4) Registered nurses.

18(5) Licensed chiropractors.

19(6) Licensed acupuncturists.

20(7) Naturopathic doctors.

21(k) Chiropractic corporation.

22(1) Licensed physicians and surgeons.

23(2) Licensed doctors of podiatric medicine.

24(3) Licensed psychologists.

25(4) Registered nurses.

26(5) Licensed optometrists.

27(6) Licensed marriage and family therapists.

28(7) Licensed clinical social workers.

29(8) Licensed acupuncturists.

30(9) Naturopathic doctors.

31(10) Licensed professional clinical counselors.

32(l) Acupuncture corporation.

33(1) Licensed physicians and surgeons.

34(2) Licensed doctors of podiatric medicine.

35(3) Licensed psychologists.

36(4) Registered nurses.

37(5) Licensed optometrists.

38(6) Licensed marriage and family therapists.

39(7) Licensed clinical social workers.

40(8) Licensed physician assistants.

P8    1(9) Licensed chiropractors.

2(10) Naturopathic doctors.

3(11) Licensed professional clinical counselors.

4(m) Naturopathic doctor corporation.

5(1) Licensed physicians and surgeons.

6(2) Licensed psychologists.

7(3) Registered nurses.

8(4) Licensed physician assistants.

9(5) Licensed chiropractors.

10(6) Licensed acupuncturists.

11(7) Licensed physical therapists.

12(8) Licensed doctors of podiatric medicine.

13(9) Licensed marriage and family therapists.

14(10) Licensed clinical social workers.

15(11) Licensed optometrists.

16(12) Licensed professional clinical counselors.

17(n) Dental corporation.

18(1) Licensed physicians and surgeons.

19(2) Dental assistants.

20(3) Registered dental assistants.

21(4) Registered dental assistants in extended functions.

22(5) Registered dental hygienists.

23(6) Registered dental hygienists in extended functions.

24(7) Registered dental hygienists in alternative practice.

25(o) Professional clinical counselor corporation.

26(1) Licensed physicians and surgeons.

27(2) Licensed psychologists.

28(3) Licensed clinical social workers.

29(4) Licensed marriage and family therapists.

30(5) Registered nurses.

31(6) Licensed chiropractors.

32(7) Licensed acupuncturists.

33(8) Naturopathic doctors.

34(p) Physical therapy corporation.

35(1) Licensed physicians and surgeons.

36(2) Licensed doctors of podiatric medicine.

37(3) Licensed acupuncturists.

38(4) Naturopathic doctors.

39(5) Licensed occupational therapists.

40(6) Licensed speech-language therapists.

P9    1(7) Licensed audiologists.

2(8) Registered nurses.

3(9) Licensed psychologists.

4(10) Licensed physician assistants.

5(q) Registered dental hygienist in alternative practice
6corporation.

7(1) Dental assistants.

8(2) Licensed dentists.

9

SEC. 4.  

Section 1374.196 is added to the Health and Safety
10Code
, to read:

11

1374.196.  

(a) This section shall only apply to a health care
12service plan contract covering dental services or a specialized
13health care service plan contract covering dental services issued,
14amended, or renewed on or after January 1, 2016.

15(b) A registered dental hygienist in alternative practice, licensed
16pursuant to Section 1922 of the Business and Professions Code,
17may submit or allow to be submitted on his or her behalf any claim
18for dental hygiene services performed as authorized pursuant to
19Article 9 (commencing with Section 1900) of Chapter 4 of Division
202 of the Business and Professions Code to a health care service
21plan covering dental services or a specialized health care service
22plan covering dental services.

23(c) If a health care service plan contract covering dental services
24or a specialized health care service plan contract covering dental
25services provides reimbursement for dental hygiene services that
26may lawfully be performed by a registered dental hygienist,
27licensed pursuant to Section 1917 of the Business and Professions
28Code, reimbursement under that plan contractbegin insert to a contracted
29provider, or to an enrollee if out-of-network services are covered,end insert

30 shall not be denied when the service is performed by a registered
31dental hygienist in alternative practice.

32(d) (1) Nothing in this section shall preclude a health care
33service plan contract covering dental services or a specialized
34health care service plan contract covering dental services from
35setting different fee schedules for different services provided by
36different providers.

37(2) A health care service plan contract covering dental services
38or a specialized health care service plan contract covering dental
39services shall use the same fee schedule for dental hygiene services
P10   1whether the services are performed by a registered dental hygienist
2or a registered dental hygienist in alternative practice.

3

SEC. 5.  

Section 10120.4 is added to the Insurance Code, to
4read:

5

10120.4.  

(a) This section shall only apply to a health insurance
6policy covering dental services or a specialized health insurance
7policy covering dental services issued, amended, or renewed on
8or after January 1, 2016.

9(b) A registered dental hygienist in alternative practice, licensed
10pursuant to Section 1922 of the Business and Professions Code,
11may submit or allow to be submitted on his or her behalf any claim
12for dental hygiene services performed as authorized pursuant to
13Article 9 (commencing with Section 1900) of Chapter 4 of Division
142 of the Business and Professions Code to a health insurer covering
15dental services or a specialized health insurer covering dental
16services.

17(c) If a health insurance policy covering dental services or a
18specialized health insurance policy covering dental services
19provides for reimbursement for dental hygiene services that may
20lawfully be performed by a registered dental hygienist, licensed
21pursuant to Section 1917 of the Business and Professions Code,
22reimbursement under that policybegin insert to a contracted provider, or to
23an insured if out-of-network services are covered,end insert
shall not be
24denied when the service is performed by a registered dental
25hygienist in alternative practice.

26(d) (1) Nothing in this section shall preclude a health insurance
27policy covering dental services or a specialized health insurance
28policy covering dental services from setting different fee schedules
29for different services provided by different providers.

30(2) A health insurance policy covering dental services or a
31specialized health insurance policy covering dental services shall
32use the same fee schedule for dental hygiene services whether the
33services are performed by a registered dental hygienist or a
34registered dental hygienist in alternative practice.

35

SEC. 6.  

No reimbursement is required by this act pursuant to
36Section 6 of Article XIII B of the California Constitution because
37the only costs that may be incurred by a local agency or school
38district will be incurred because this act creates a new crime or
39infraction, eliminates a crime or infraction, or changes the penalty
40for a crime or infraction, within the meaning of Section 17556 of
P11   1the Government Code, or changes the definition of a crime within
2the meaning of Section 6 of Article XIII B of the California
3Constitution.



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