BILL NUMBER: AB 502 CHAPTERED
BILL TEXT
CHAPTER 516
FILED WITH SECRETARY OF STATE OCTOBER 6, 2015
APPROVED BY GOVERNOR OCTOBER 6, 2015
PASSED THE SENATE SEPTEMBER 10, 2015
PASSED THE ASSEMBLY SEPTEMBER 11, 2015
AMENDED IN SENATE SEPTEMBER 4, 2015
AMENDED IN SENATE JULY 16, 2015
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, relating to dental hygiene.
LEGISLATIVE COUNSEL'S DIGEST
AB 502, Chau. Dental hygiene.
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 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 registered dental
assistants, licensed dentists, registered dental hygienists, and
registered dental hygienists in extended functions 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
regulations adopted under those laws. The bill would require a
licensee employed by, or practicing in, a registered dental hygienist
in alternative practice corporation to practice within the scope of
their license and be subject to all applicable licensure provisions
in their respective practice act. 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.
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, 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, 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 licensee employed by, or practicing in, a registered
dental hygienist in alternative practice corporation pursuant to
Section 13401.5 of the Corporations Code shall practice within the
scope of their license and shall be subject to all applicable
licensure provisions in their respective practice act.
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.
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. 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) Registered dental assistants.
(2) Licensed dentists.
(3) Registered dental hygienists.
(4) Registered dental hygienists in extended functions.