BILL NUMBER: AB 348 CHAPTERED
BILL TEXT
CHAPTER 168
FILED WITH SECRETARY OF STATE AUGUST 4, 1997
APPROVED BY GOVERNOR AUGUST 2, 1997
PASSED THE SENATE JULY 18, 1997
PASSED THE ASSEMBLY APRIL 17, 1997
AMENDED IN ASSEMBLY APRIL 10, 1997
INTRODUCED BY Assembly Members Cunneen and Mazzoni
(Coauthors: Assembly Members Bowler, Granlund, Kuehl, Lempert,
Oller, Scott, and Wayne)
(Coauthor: Senator Leslie)
FEBRUARY 18, 1997
An act to amend Sections 1800, 1805, 1806, and 1808 of, and to
repeal Sections 1801, 1802, and 1803 of, the Business and Professions
Code, and to amend Section 13401 of the Corporations Code, relating
to dentistry.
LEGISLATIVE COUNSEL'S DIGEST
AB 348, Cunneen. Dentistry: dental corporations.
The Dental Practice Act requires dental corporations subject to
the Moscone-Knox Professional Corporation Act to obtain a certificate
of registration from the Board of Dental Examiners and to provide
certain information to the board upon application for a certificate
and annually thereafter. A dental corporation is required to pay
various fees to the board, as specified.
Existing law also provides that the provisions of the General
Corporation Law apply to professional corporations, including dental
corporations, except when in conflict with the Moscone-Knox
Professional Corporation Act.
This bill would provide that a dental corporation is not required
to register with the Board of Dental Examiners. The bill would also
delete the requirements for a dental corporation to provide
information or pay fees to the board, and would make other conforming
changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1800 of the Business and Professions Code is
amended to read:
1800. A dental corporation is a corporation that is authorized to
render professional services, as defined in Section 13401 of the
Corporations Code, if that corporation, its shareholders, officers,
directors, and employees rendering professional services who are
dentists are in compliance with the Moscone-Knox Professional
Corporation Act (Part 4 (commencing with Section 13400) of Division 3
of Title 1 of the Corporations Code), this article, and other
statutes, rules, and regulations applicable to a dental corporation
and the conduct of its affairs. Subject to all applicable statutes,
rules, and regulations, a dental corporation is entitled to practice
dentistry. With respect to a dental corporation, the governmental
agency referred to in the Moscone-Knox Professional Corporation Act
is the Board of Dental Examiners.
SEC. 2. Section 1801 of the Business and Professions Code is
repealed.
SEC. 3. Section 1802 of the Business and Professions Code is
repealed.
SEC. 4. Section 1803 of the Business and Professions Code is
repealed.
SEC. 5. Section 1805 of the Business and Professions Code is
amended to read:
1805. Except as provided in Section 13403 of the Corporations
Code, each director, shareholder, and officer of a dental corporation
shall be a licensed person as defined in the Moscone-Knox
Professional Corporation Act.
SEC. 6. Section 1806 of the Business and Professions Code is
amended to read:
1806. The income of a dental corporation attributable to
professional services rendered while a shareholder is a disqualified
person (as defined in the Moscone-Knox Professional Corporation Act)
shall not in any manner accrue to the benefit of that shareholder or
his or her shares in the dental corporation.
SEC. 7. Section 1808 of the Business and Professions Code is
amended to read:
1808. The board may formulate and enforce rules and regulations
to carry out the purposes and objectives of this article and the
Moscone-Knox Professional Corporation Act, including rules and
regulations requiring (a) that the articles of incorporation or
bylaws of a dental corporation shall include a provision whereby the
capital stock of that corporation owned by a disqualified person (as
defined in the Moscone-Knox Professional Corporation Act), or a
deceased person, shall be sold to the corporation or to the remaining
shareholders of that corporation within the time as the rules and
regulations may provide, and (b) that a dental corporation shall
provide adequate security by insurance or otherwise for claims
against it by its patients arising out of the rendering of
professional services.
SEC. 8. 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 or the Chiropractic 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 Board of Dental Examiners, the
California State Board of Pharmacy, the Veterinary Medical Board, the
California Board of Architectural Examiners, the Court Reporters
Board of California, or the Board of Registered Nursing 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 or
the Chiropractic 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.