BILL NUMBER: AB 502 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 29, 2015
AMENDED IN ASSEMBLY JUNE 2, 2015
AMENDED IN ASSEMBLY APRIL 30, 2015
AMENDED IN ASSEMBLY APRIL 22, 2015
AMENDED IN ASSEMBLY APRIL 16, 2015
INTRODUCED BY Assembly Member Chau
FEBRUARY 23, 2015
An act to amend Section 1925 of, and to add Article 9.1
(commencing with Section 1967) to Chapter 4 of Division 2 of, the
Business and Professions Code, and 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, Code, relating to dental
hygiene.
LEGISLATIVE COUNSEL'S DIGEST
AB 502, as amended, Chau. Dental hygiene.
(1) Existing
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 practice pursuant to specified
provisions of law as, among other things, an independent
contractor or an employee of a specified clinic. 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
licensees to be shareholders, officers,
directors, or professional employees of a designated professional
corporation, subject to certain limitations relating to ownership of
shares. However, existing law specifies that it does not limit
employment by a designated professional corporation to only those
healing arts licensees and authorizes any healing arts licensee to be
employed to render professional services by a designated
professional corporation.
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. The bill would, in the Dental
Practice Act, authorize a registered dental hygienist in alternative
practice to practice as an employee of a professional corporation, as
specified. The bill would make it unprofessional conduct
to violate, attempt to violate, assist in or abet the violation of,
or conspire to violate, specified provisions regarding registered
dental hygienists in alternative practice corporations, the
Moscone-Knox Professional Corporation Act, or any regula
tions adopted under those laws. The bill would require the bylaws of
a registered dental hygienist in alternative practice corporation to
include a provision requiring the capital stock of a disqualified or
deceased person to be sold to specified parties within a specified
period of time. The bill would also require such a corporation to
provide security for claims by patients.
(2) 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.
(3) 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 no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1925 of the Business
and Professions Code is amended to read:
1925. A registered dental hygienist in alternative practice may
practice, pursuant to subdivision (a) of Section 1907, subdivision
(a) of Section 1908, subdivisions (a) and (b) of Section 1910,
Section 1910.5, and Section 1926.05 as an employee of a dentist or of
another registered dental hygienist in alternative practice, as an
independent contractor, as a sole proprietor of an alternative dental
hygiene practice, as an employee of a primary care clinic or
specialty clinic that is licensed pursuant to Section 1204 of the
Health and Safety Code, as an employee of a primary care clinic
exempt from licensure pursuant to subdivision (c) of Section 1206 of
the Health and Safety Code, as an employee of a clinic owned or
operated by a public hospital or health system, or
as an employee of a clinic owned and operated by a hospital that
maintains the primary contract with a county government to fill the
county's role under Section 17000 of the Welfare and Institutions
Code. Code, or as an employee of a
professional corporation under the Moscone-Knox Professional
Corporation Act (commencing with Section 13400) of Part 4 of Division
3 of Title 1 of the Corporations Code.
SEC. 2. Article 9.1 (commencing with Section 1967)
is added to Chapter 4 of Division 2 of the
Business and Professions Code , to read:
Article 9.1. Registered Dental Hygienist in Alternative
Practice Corporations
1967. A registered dental hygienist in alternative practice
corporation is a professional corporation that is authorized to
render professional services, as defined in Section 13401 of the
Corporations Code, so long as that professional corporation and its
shareholders, officers, directors, and professional employees
rendering professional services are in compliance with the
Moscone-Knox Professional Corporation Act (commencing with Section
13400) of Part 4 of Division 3 of Title 1 of the Corporations Code,
this article, and all other statutes and regulations now or hereafter
adopted pertaining to the professional corporation and the conduct
of its affairs. With respect to a registered dental hygienist in
alternative practice corporation, the governmental agency referred to
in the Moscone-Knox Professional Corporation Act is the Dental
Hygiene Committee of California.
1967.1. It shall constitute unprofessional conduct and a
violation of this article for any person licensed under this article
to violate, attempt to violate, directly or indirectly, assist in or
abet the violation of, or conspire to violate any provision or term
of this article, the Moscone-Knox Professional Corporation Act, or
any regulations duly adopted under those laws.
1967.2. A registered dental hygienist in alternative practice
corporation shall not do or fail to do any act the doing of which or
the failure to do would constitute unprofessional conduct under any
statute or regulation, now or hereafter adopted. In the conduct of
its practice, it shall observe and be bound by such statutes and
regulations to the same extent as a person holding a license under
Article 9 (commencing with Section 1900).
1967.3. The income of a registered dental hygienist in
alternative practice corporation attributable to professional
services rendered while a shareholder is a disqualified person, as
defined in subdivision (e) of Section 13401 of the Corporations Code,
shall not in any manner accrue to the benefit of such shareholder or
his or her shares in the registered dental hygienist in alternative
practice corporation.
1967.4. (a) The bylaws of a registered dental hygienist in
alternative practice corporation shall include a provision whereby
the capital stock of the professional corporation owned by a
disqualified person, as defined in subdivision (e) of Section 13401
of the Corporations Code, or a deceased person, shall be sold to the
professional corporation or to the remaining shareholders of the
professional corporation not later than 90 days after
disqualification, if the shareholder becomes a disqualified person,
or not later than six months after death, if the shareholder becomes
deceased.
(b) A registered dental hygienist in alternative practice
corporation shall provide adequate security by insurance or otherwise
for claims against it by its patients arising out of the rendering
of professional services.
SECTION 1. SEC. 3. Section 13401 of
the Corporations Code is amended to read:
13401. As used in this part:
(a) "Professional services" means any type of professional
services that may be lawfully rendered only pursuant to a license,
certification, or registration authorized by the Business and
Professions Code, the Chiropractic Act, or the Osteopathic Act.
(b) "Professional corporation" means a corporation organized under
the General Corporation Law or pursuant to subdivision (b) of
Section 13406 that is engaged in rendering professional services in a
single profession, except as otherwise authorized in Section
13401.5, pursuant to a certificate of registration issued by the
governmental agency regulating the profession as herein provided and
that in its practice or business designates itself as a professional
or other corporation as may be required by statute. However, any
professional corporation or foreign professional corporation
rendering professional services by persons duly licensed by the
Medical Board of California or any examining committee under the
jurisdiction of the board, the Osteopathic Medical Board of
California, the Dental Board of California, the Dental Hygiene
Committee of California, the California State Board of Pharmacy, the
Veterinary Medical Board, the California Architects Board, the Court
Reporters Board of California, the Board of Behavioral Sciences, the
Speech-Language Pathology and Audiology Board, the Board of
Registered Nursing, or the State Board of Optometry shall not be
required to obtain a certificate of registration in order to render
those professional services.
(c) "Foreign professional corporation" means a corporation
organized under the laws of a state of the United States other than
this state that is engaged in a profession of a type for which there
is authorization in the Business and Professions Code for the
performance of professional services by a foreign professional
corporation.
(d) "Licensed person" means any natural person who is duly
licensed under the provisions of the Business and Professions Code,
the Chiropractic Act, or the Osteopathic Act to render the same
professional services as are or will be rendered by the professional
corporation or foreign professional corporation of which he or she
is, or intends to become, an officer, director, shareholder, or
employee.
(e) "Disqualified person" means a licensed person who for any
reason becomes legally disqualified (temporarily or permanently) to
render the professional services that the particular professional
corporation or foreign professional corporation of which he or she is
an officer, director, shareholder, or employee is or was rendering.
SEC. 2. SEC. 4. Section 13401.5 of
the Corporations Code is amended to read:
13401.5. Notwithstanding subdivision (d) of Section 13401 and any
other provision of law, the following licensed persons may be
shareholders, officers, directors, or professional employees of the
professional corporations designated in this section so long as the
sum of all shares owned by those licensed persons does not exceed 49
percent of the total number of shares of the professional corporation
so designated herein, and so long as the number of those licensed
persons owning shares in the professional corporation so designated
herein does not exceed the number of persons licensed by the
governmental agency regulating the designated professional
corporation. This section does not limit employment by a professional
corporation designated in this section to only those licensed
professionals listed under each subdivision. Any person duly licensed
under Division 2 (commencing with Section 500) of the Business and
Professions Code, the Chiropractic Act, or the Osteopathic Act may be
employed to render professional services by a professional
corporation designated in this section.
(a) Medical corporation.
(1) Licensed doctors of podiatric medicine.
(2) Licensed psychologists.
(3) Registered nurses.
(4) Licensed optometrists.
(5) Licensed marriage and family therapists.
(6) Licensed clinical social workers.
(7) Licensed physician assistants.
(8) Licensed chiropractors.
(9) Licensed acupuncturists.
(10) Naturopathic doctors.
(11) Licensed professional clinical counselors.
(12) Licensed physical therapists.
(b) Podiatric medical corporation.
(1) Licensed physicians and surgeons.
(2) Licensed psychologists.
(3) Registered nurses.
(4) Licensed optometrists.
(5) Licensed chiropractors.
(6) Licensed acupuncturists.
(7) Naturopathic doctors.
(8) Licensed physical therapists.
(c) Psychological corporation.
(1) Licensed physicians and surgeons.
(2) Licensed doctors of podiatric medicine.
(3) Registered nurses.
(4) Licensed optometrists.
(5) Licensed marriage and family therapists.
(6) Licensed clinical social workers.
(7) Licensed chiropractors.
(8) Licensed acupuncturists.
(9) Naturopathic doctors.
(10) Licensed professional clinical counselors.
(d) Speech-language pathology corporation.
(1) Licensed audiologists.
(e) Audiology corporation.
(1) Licensed speech-language pathologists.
(f) Nursing corporation.
(1) Licensed physicians and surgeons.
(2) Licensed doctors of podiatric medicine.
(3) Licensed psychologists.
(4) Licensed optometrists.
(5) Licensed marriage and family therapists.
(6) Licensed clinical social workers.
(7) Licensed physician assistants.
(8) Licensed chiropractors.
(9) Licensed acupuncturists.
(10) Naturopathic doctors.
(11) Licensed professional clinical counselors.
(g) Marriage and family therapist corporation.
(1) Licensed physicians and surgeons.
(2) Licensed psychologists.
(3) Licensed clinical social workers.
(4) Registered nurses.
(5) Licensed chiropractors.
(6) Licensed acupuncturists.
(7) Naturopathic doctors.
(8) Licensed professional clinical counselors.
(h) Licensed clinical social worker corporation.
(1) Licensed physicians and surgeons.
(2) Licensed psychologists.
(3) Licensed marriage and family therapists.
(4) Registered nurses.
(5) Licensed chiropractors.
(6) Licensed acupuncturists.
(7) Naturopathic doctors.
(8) Licensed professional clinical counselors.
(i) Physician assistants corporation.
(1) Licensed physicians and surgeons.
(2) Registered nurses.
(3) Licensed acupuncturists.
(4) Naturopathic doctors.
(j) Optometric corporation.
(1) Licensed physicians and surgeons.
(2) Licensed doctors of podiatric medicine.
(3) Licensed psychologists.
(4) Registered nurses.
(5) Licensed chiropractors.
(6) Licensed acupuncturists.
(7) Naturopathic doctors.
(k) Chiropractic corporation.
(1) Licensed physicians and surgeons.
(2) Licensed doctors of podiatric medicine.
(3) Licensed psychologists.
(4) Registered nurses.
(5) Licensed optometrists.
(6) Licensed marriage and family therapists.
(7) Licensed clinical social workers.
(8) Licensed acupuncturists.
(9) Naturopathic doctors.
(10) Licensed professional clinical counselors.
( l ) Acupuncture corporation.
(1) Licensed physicians and surgeons.
(2) Licensed doctors of podiatric medicine.
(3) Licensed psychologists.
(4) Registered nurses.
(5) Licensed optometrists.
(6) Licensed marriage and family therapists.
(7) Licensed clinical social workers.
(8) Licensed physician assistants.
(9) Licensed chiropractors.
(10) Naturopathic doctors.
(11) Licensed professional clinical counselors.
(m) Naturopathic doctor corporation.
(1) Licensed physicians and surgeons.
(2) Licensed psychologists.
(3) Registered nurses.
(4) Licensed physician assistants.
(5) Licensed chiropractors.
(6) Licensed acupuncturists.
(7) Licensed physical therapists.
(8) Licensed doctors of podiatric medicine.
(9) Licensed marriage and family therapists.
(10) Licensed clinical social workers.
(11) Licensed optometrists.
(12) Licensed professional clinical counselors.
(n) Dental corporation.
(1) Licensed physicians and surgeons.
(2) Dental assistants.
(3) Registered dental assistants.
(4) Registered dental assistants in extended functions.
(5) Registered dental hygienists.
(6) Registered dental hygienists in extended functions.
(7) Registered dental hygienists in alternative practice.
(o) Professional clinical counselor corporation.
(1) Licensed physicians and surgeons.
(2) Licensed psychologists.
(3) Licensed clinical social workers.
(4) Licensed marriage and family therapists.
(5) Registered nurses.
(6) Licensed chiropractors.
(7) Licensed acupuncturists.
(8) Naturopathic doctors.
(p) Physical therapy corporation.
(1) Licensed physicians and surgeons.
(2) Licensed doctors of podiatric medicine.
(3) Licensed acupuncturists.
(4) Naturopathic doctors.
(5) Licensed occupational therapists.
(6) Licensed speech-language therapists.
(7) Licensed audiologists.
(8) Registered nurses.
(9) Licensed psychologists.
(10) Licensed physician assistants.
(q) Registered dental hygienist in alternative practice
corporation.
(1) Dental assistants.
(2) Licensed dentists.
SEC. 3. Section 1374.196 is added to the Health
and Safety Code, to read:
1374.196. (a) This section shall only apply to a health care
service plan contract covering dental services or a specialized
health care service plan contract covering dental services issued,
amended, or renewed on or after January 1, 2016.
(b) A registered dental hygienist in alternative practice,
licensed pursuant to Section 1922 of the Business and Professions
Code, may submit or allow to be submitted on his or her behalf any
claim for dental hygiene services performed as authorized pursuant to
Article 9 (commencing with Section 1900) of Chapter 4 of Division 2
of the Business and Professions Code to a health care service plan
covering dental services or a specialized health care service plan
covering dental services.
(c) If a health care service plan contract covering dental
services or a specialized health care service plan contract covering
dental services provides reimbursement for dental hygiene services
that may lawfully be performed by a registered dental hygienist,
licensed pursuant to Section 1917 of the Business and Professions
Code, reimbursement under that plan contract to a contracted
provider, or to an enrollee if out-of-network services are covered,
shall not be denied when the service is performed by a registered
dental hygienist in alternative practice.
(d) (1) Nothing in this section shall preclude a health care
service plan contract covering dental services or a specialized
health care service plan contract covering dental services from
setting different fee schedules for different services provided by
different providers.
(2) A health care service plan contract covering dental services
or a specialized health care service plan contract covering dental
services shall use the same fee schedule for dental hygiene services
whether the services are performed by a registered dental hygienist
or a registered dental hygienist in alternative practice.
SEC. 4. Section 10120.4 is added to the
Insurance Code, to read:
10120.4. (a) This section shall only apply to a health insurance
policy covering dental services or a specialized health insurance
policy covering dental services issued, amended, or renewed on or
after January 1, 2016.
(b) A registered dental hygienist in alternative practice,
licensed pursuant to Section 1922 of the Business and Professions
Code, may submit or allow to be submitted on his or her behalf any
claim for dental hygiene services performed as authorized pursuant to
Article 9 (commencing with Section 1900) of Chapter 4 of Division 2
of the Business and Professions Code to a health insurer covering
dental services or a specialized health insurer covering dental
services.
(c) If a health insurance policy covering dental services or a
specialized health insurance policy covering dental services provides
for reimbursement for dental hygiene services that may lawfully be
performed by a registered dental hygienist, licensed pursuant to
Section 1917 of the Business and Professions Code, reimbursement
under that policy to a contracted provider, or to an insured if
out-of-network services are covered, shall not be denied when the
service is performed by a registered dental hygienist in alternative
practice.
(d) (1) Nothing in this section shall preclude a health insurance
policy covering dental services or a specialized health insurance
policy covering dental services from setting different fee schedules
for different services provided by different providers.
(2) A health insurance policy covering dental services or a
specialized health insurance policy covering dental services shall
use the same fee schedule for dental hygiene services whether the
services are performed by a registered dental hygienist or a
registered dental hygienist in alternative practice.
SEC. 5. 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.