Amended in Assembly April 30, 2015

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.

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.

(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, to provide specified reimbursement for registered dental hygienists in alternative practice 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. An alternative dental
13hygiene practice established within a certified shortage area shall
14not be required to close due to the removal of the dental health
15professional shortage area designation if the registered dental
16hygienist in alternative practice continues to serve those patients
17that lack or have limited access to dental care including, but not
18limited to, Medi-Cal program patients, and at least 40 percent of
19the total begin insertpatient population of the end insertalternative dental hygiene
20practicebegin delete serves thoseend deletebegin insert is comprised ofend insert underserved populations.

21

SEC. 2.  

Section 13401 of the Corporations Code is amended
22to read:

23

13401.  

As used in this part:

24(a) “Professional services” means any type of professional
25services that may be lawfully rendered only pursuant to a license,
26certification, or registration authorized by the Business and
27Professions Code, the Chiropractic Act, or the Osteopathic Act.

28(b) “Professional corporation” means a corporation organized
29under the General Corporation Law or pursuant to subdivision (b)
30of Section 13406 that is engaged in rendering professional services
P4    1in a single profession, except as otherwise authorized in Section
213401.5, pursuant to a certificate of registration issued by the
3governmental agency regulating the profession as herein provided
4and that in its practice or business designates itself as a professional
5or other corporation as may be required by statute. However, any
6professional corporation or foreign professional corporation
7rendering professional services by persons duly licensed by the
8Medical Board of California or any examining committee under
9the jurisdiction of the board, the Osteopathic Medical Board of
10California, the Dental Board of California, the Dental Hygiene
11Committee of California, the California State Board of Pharmacy,
12the Veterinary Medical Board, the California Architects Board,
13the Court Reporters Board of California, the Board of Behavioral
14Sciences, the Speech-Language Pathology and Audiology Board,
15the Board of Registered Nursing, or the State Board of Optometry
16shall not be required to obtain a certificate of registration in order
17to render those professional services.

18(c) “Foreign professional corporation” means a corporation
19organized under the laws of a state of the United States other than
20this state that is engaged in a profession of a type for which there
21is authorization in the Business and Professions Code for the
22performance of professional services by a foreign professional
23corporation.

24(d) “Licensed person” means any natural person who is duly
25licensed under the provisions of the Business and Professions
26Code, the Chiropractic Act, or the Osteopathic Act to render the
27same professional services as are or will be rendered by the
28professional corporation or foreign professional corporation of
29which he or she is, or intends to become, an officer, director,
30shareholder, or employee.

31(e) “Disqualified person” means a licensed person who for any
32reason becomes legally disqualified (temporarily or permanently)
33to render the professional services that the particular professional
34corporation or foreign professional corporation of which he or she
35is an officer, director, shareholder, or employee is or was rendering.

36

SEC. 3.  

Section 13401.5 of the Corporations Code is amended
37to read:

38

13401.5.  

Notwithstanding subdivision (d) of Section 13401
39and any other provision of law, the following licensed persons
40may be shareholders, officers, directors, or professional employees
P5    1of the professional corporations designated in this section so long
2as the sum of all shares owned by those licensed persons does not
3exceed 49 percent of the total number of shares of the professional
4corporation so designated herein, and so long as the number of
5those licensed persons owning shares in the professional
6corporation so designated herein does not exceed the number of
7persons licensed by the governmental agency regulating the
8designated professional corporation. This section does not limit
9employment by a professional corporation designated in this section
10 to only those licensed professionals listed under each subdivision.
11Any person duly licensed under Division 2 (commencing with
12Section 500) of the Business and Professions Code, the
13Chiropractic Act, or the Osteopathic Act may be employed to
14render professional services by a professional corporation
15designated in this section.

16(a) Medical corporation.

17(1) Licensed doctors of podiatric medicine.

18(2) Licensed psychologists.

19(3) Registered nurses.

20(4) Licensed optometrists.

21(5) Licensed marriage and family therapists.

22(6) Licensed clinical social workers.

23(7) Licensed physician assistants.

24(8) Licensed chiropractors.

25(9) Licensed acupuncturists.

26(10) Naturopathic doctors.

27(11) Licensed professional clinical counselors.

28(12) Licensed physical therapists.

29(b) Podiatric medical corporation.

30(1) Licensed physicians and surgeons.

31(2) Licensed psychologists.

32(3) Registered nurses.

33(4) Licensed optometrists.

34(5) Licensed chiropractors.

35(6) Licensed acupuncturists.

36(7) Naturopathic doctors.

37(8) Licensed physical therapists.

38(c) Psychological corporation.

39(1) Licensed physicians and surgeons.

40(2) Licensed doctors of podiatric medicine.

P6    1(3) Registered nurses.

2(4) Licensed optometrists.

3(5) Licensed marriage and family therapists.

4(6) Licensed clinical social workers.

5(7) Licensed chiropractors.

6(8) Licensed acupuncturists.

7(9) Naturopathic doctors.

8(10) Licensed professional clinical counselors.

9(d) Speech-language pathology corporation.

10(1) Licensed audiologists.

11(e) Audiology corporation.

12(1) Licensed speech-language pathologists.

13(f) Nursing corporation.

14(1) Licensed physicians and surgeons.

15(2) Licensed doctors of podiatric medicine.

16(3) Licensed psychologists.

17(4) Licensed optometrists.

18(5) Licensed marriage and family therapists.

19(6) Licensed clinical social workers.

20(7) Licensed physician assistants.

21(8) Licensed chiropractors.

22(9) Licensed acupuncturists.

23(10) Naturopathic doctors.

24(11) Licensed professional clinical counselors.

25(g) Marriage and family therapist corporation.

26(1) Licensed physicians and surgeons.

27(2) Licensed psychologists.

28(3) Licensed clinical social workers.

29(4) Registered nurses.

30(5) Licensed chiropractors.

31(6) Licensed acupuncturists.

32(7) Naturopathic doctors.

33(8) Licensed professional clinical counselors.

34(h) Licensed clinical social worker corporation.

35(1) Licensed physicians and surgeons.

36(2) Licensed psychologists.

37(3) Licensed marriage and family therapists.

38(4) Registered nurses.

39(5) Licensed chiropractors.

40(6) Licensed acupuncturists.

P7    1(7) Naturopathic doctors.

2(8) Licensed professional clinical counselors.

3(i) Physician assistants corporation.

4(1) Licensed physicians and surgeons.

5(2) Registered nurses.

6(3) Licensed acupuncturists.

7(4) Naturopathic doctors.

8(j) Optometric corporation.

9(1) Licensed physicians and surgeons.

10(2) Licensed doctors of podiatric medicine.

11(3) Licensed psychologists.

12(4) Registered nurses.

13(5) Licensed chiropractors.

14(6) Licensed acupuncturists.

15(7) Naturopathic doctors.

16(k) Chiropractic corporation.

17(1) Licensed physicians and surgeons.

18(2) Licensed doctors of podiatric medicine.

19(3) Licensed psychologists.

20(4) Registered nurses.

21(5) Licensed optometrists.

22(6) Licensed marriage and family therapists.

23(7) Licensed clinical social workers.

24(8) Licensed acupuncturists.

25(9) Naturopathic doctors.

26(10) Licensed professional clinical counselors.

27(l) Acupuncture corporation.

28(1) Licensed physicians and surgeons.

29(2) Licensed doctors of podiatric medicine.

30(3) Licensed psychologists.

31(4) Registered nurses.

32(5) Licensed optometrists.

33(6) Licensed marriage and family therapists.

34(7) Licensed clinical social workers.

35(8) Licensed physician assistants.

36(9) Licensed chiropractors.

37(10) Naturopathic doctors.

38(11) Licensed professional clinical counselors.

39(m) Naturopathic doctor corporation.

40(1) Licensed physicians and surgeons.

P8    1(2) Licensed psychologists.

2(3) Registered nurses.

3(4) Licensed physician assistants.

4(5) Licensed chiropractors.

5(6) Licensed acupuncturists.

6(7) Licensed physical therapists.

7(8) Licensed doctors of podiatric medicine.

8(9) Licensed marriage and family therapists.

9(10) Licensed clinical social workers.

10(11) Licensed optometrists.

11(12) Licensed professional clinical counselors.

12(n) Dental corporation.

13(1) Licensed physicians and surgeons.

14(2) Dental assistants.

15(3) Registered dental assistants.

16(4) Registered dental assistants in extended functions.

17(5) Registered dental hygienists.

18(6) Registered dental hygienists in extended functions.

19(7) Registered dental hygienists in alternative practice.

20(o) Professional clinical counselor corporation.

21(1) Licensed physicians and surgeons.

22(2) Licensed psychologists.

23(3) Licensed clinical social workers.

24(4) Licensed marriage and family therapists.

25(5) Registered nurses.

26(6) Licensed chiropractors.

27(7) Licensed acupuncturists.

28(8) Naturopathic doctors.

29(p) Physical therapy corporation.

30(1) Licensed physicians and surgeons.

31(2) Licensed doctors of podiatric medicine.

32(3) Licensed acupuncturists.

33(4) Naturopathic doctors.

34(5) Licensed occupational therapists.

35(6) Licensed speech-language therapists.

36(7) Licensed audiologists.

37(8) Registered nurses.

38(9) Licensed psychologists.

39(10) Licensed physician assistants.

P9    1(q) Registered dental hygienist in alternative practice
2corporation.

3(1) Dental assistants.

4(2) Licensed dentists.

5

SEC. 4.  

Section 1374.196 is added to the Health and Safety
6Code
, to read:

7

1374.196.  

(a) This section shall only apply to a health care
8service plan contract covering dental services or a specialized
9health care service plan contract covering dental services issued,
10amended, or renewed on or after January 1, 2016.

11(b) A registered dental hygienist in alternative practice, licensed
12pursuant to Section 1922 of the Business and Professions Code,
13may submit or allow to be submitted on his or her behalf any claim
14for dental hygiene services performed as authorized pursuant to
15Article 9 (commencing with Section 1900) of Chapter 4 of Division
162 of the Business and Professions Code to a health care service
17plan covering dental services or a specialized health care service
18plan covering dental services.

19(c) If a health care service plan contract covering dental services
20or a specialized health care service plan contract covering dental
21services provides reimbursement for dental hygiene services that
22may lawfully be performed by a registered dental hygienist,
23licensed pursuant to Section 1917 of the Business and Professions
24Code, reimbursement under that plan contract to a contracted
25provider, or to an enrollee if out-of-network services are covered,
26shall not be denied when the service is performed by a registered
27dental hygienist in alternative practice.

28(d) (1) Nothing in this section shall preclude a health care
29service plan contract covering dental services or a specialized
30health care service plan contract covering dental services from
31setting different fee schedules for different services provided by
32different providers.

33(2) A health care service plan contract covering dental services
34or a specialized health care service plan contract covering dental
35services shall use the same fee schedule for dental hygiene services
36whether the services are performed by a registered dental hygienist
37or a registered dental hygienist in alternative practice.

38

SEC. 5.  

Section 10120.4 is added to the Insurance Code, to
39read:

P10   1

10120.4.  

(a) This section shall only apply to a health insurance
2policy covering dental services or a specialized health insurance
3policy covering dental services issued, amended, or renewed on
4or after January 1, 2016.

5(b) A registered dental hygienist in alternative practice, licensed
6pursuant to Section 1922 of the Business and Professions Code,
7may submit or allow to be submitted on his or her behalf any claim
8for dental hygiene services performed as authorized pursuant to
9Article 9 (commencing with Section 1900) of Chapter 4 of Division
102 of the Business and Professions Code to a health insurer covering
11dental services or a specialized health insurer covering dental
12services.

13(c) If a health insurance policy covering dental services or a
14specialized health insurance policy covering dental services
15provides for reimbursement for dental hygiene services that may
16lawfully be performed by a registered dental hygienist, licensed
17pursuant to Section 1917 of the Business and Professions Code,
18reimbursement under that policy to a contracted provider, or to an
19insured if out-of-network services are covered, shall not be denied
20when the service is performed by a registered dental hygienist in
21alternative practice.

22(d) (1) Nothing in this section shall preclude a health insurance
23policy covering dental services or a specialized health insurance
24policy covering dental services from setting different fee schedules
25for different services provided by different providers.

26(2) A health insurance policy covering dental services or a
27specialized health insurance policy covering dental services shall
28use the same fee schedule for dental hygiene services whether the
29services are performed by a registered dental hygienist or a
30registered dental hygienist in alternative practice.

31

SEC. 6.  

No reimbursement is required by this act pursuant to
32Section 6 of Article XIII B of the California Constitution because
33the only costs that may be incurred by a local agency or school
34district will be incurred because this act creates a new crime or
35infraction, eliminates a crime or infraction, or changes the penalty
36for a crime or infraction, within the meaning of Section 17556 of
37the Government Code, or changes the definition of a crime within
P11   1the meaning of Section 6 of Article XIII B of the California
2Constitution.



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