Bill Text: TX SB519 | 2015-2016 | 84th Legislature | Enrolled


Bill Title: Relating to the registration of dental support organizations; imposing a fee; requiring an occupational registration; providing a civil penalty.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2015-06-16 - Effective on 9/1/15 [SB519 Detail]

Download: Texas-2015-SB519-Enrolled.html
 
 
  S.B. No. 519
 
 
 
 
AN ACT
  relating to the registration of dental support organizations;
  imposing a fee; requiring an occupational registration; providing a
  civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 5, Business & Commerce Code, is
  amended by adding Chapter 73 to read as follows:
  CHAPTER 73.  REGISTRATION OF DENTAL SUPPORT ORGANIZATIONS
         Sec. 73.001.  DEFINITIONS. In this chapter:
               (1)  "Business support services" means business,
  management, consulting, or administrative services, facilities, or
  staff provided for a dentist, including:
                     (A)  office space, furnishings, and equipment;
                     (B)  staff employed by the dental support
  organization;
                     (C)  regulatory compliance;
                     (D)  inventory or supplies, including dental
  equipment and supplies;
                     (E)  information systems;
                     (F)  marketing and advertising;
                     (G)  financial services;
                     (H)  accounting, bookkeeping, or monitoring or
  payment of accounts receivable;
                     (I)  payroll or benefits administration;
                     (J)  billing and collection for services and
  products;
                     (K)  reporting and payment of federal or state
  taxes;
                     (L)  administration of interest expense or
  indebtedness incurred to finance the operation of a business; or
                     (M)  insurance services.
               (2)  "Dental support organization" means an entity
  that, under an agreement, provides two or more business support
  services to a dentist.
               (3)  "Dentist" means an individual licensed to practice
  dentistry in this state.
         Sec. 73.002.  REGISTRATION REQUIRED. (a)  A dental support
  organization shall annually register with the secretary of state.
         (b)  A dental support organization's registration under this
  section is considered registration of any subsidiary, contractor,
  or affiliate of the dental support organization through or with
  which the dental support organization provides business support
  services.
         Sec. 73.003.  EXEMPTIONS.  This chapter does not require
  registration by:
               (1)  an accountant providing only accounting services;
               (2)  an attorney providing only legal counsel;
               (3)  an insurance company or insurance agent providing
  only insurance policies to a business; and
               (4)  entities providing only investment and financial
  advisory services.
         Sec. 73.004.  CONTENTS OF REGISTRATION;  FEE.  (a)  The
  registration required by Section 73.002 must include:
               (1)  the name and business address of the dental
  support organization; 
               (2)  the name and business address of each dentist in
  this state with which the dental support organization has entered
  into an agreement to provide two or more business support services;
               (3)  the name of each dentist who owns 10 percent or
  more of the dental support organization;
               (4)  the name of each person who is not a dentist and
  owns 10 percent or more of the dental support organization; and
               (5)  a list of all business support services provided
  to each dentist.
         (b)  A registration and each corrected registration must be
  accompanied by a fee set by the secretary of state in an amount
  necessary to recover the costs of administering this chapter.
         (c)  A registration or corrected registration is not
  effective until the dental support organization pays the fee
  required by this section.
         Sec. 73.005.  TIMING OF REGISTRATION;  CORRECTION REQUIRED.
  (a)  Except as provided by Subsection (b), the registration
  required by Section 73.002 must be filed with the secretary of state
  not later than January 31 of each year for which the registration is
  effective.
         (b)  A dental support organization that initially meets the
  requirement for registration under Section 73.002 after January 31
  shall file the registration required by that section not later than
  the 90th day after the date an agreement to provide business support
  services is executed.
         (c)  A dental support organization shall file a corrected
  registration each quarter as necessary.
         Sec. 73.006.  FAILURE TO FILE REGISTRATION OR CORRECTION.  
  (a)  A person who fails to file a registration or a corrected
  registration as required by this chapter is liable to the state for
  a civil penalty in an amount not to exceed $1,000.
         (b)  Each day a violation continues or occurs is a separate
  violation for the purpose of imposing the civil penalty.
         (c)  The attorney general shall file suit to collect the
  civil penalty provided by this section. The suit may be filed in
  Travis County or any county where the dental support organization
  provides business support services.
         Sec. 73.007.  INTERAGENCY MEMORANDUM. The secretary of
  state and the State Board of Dental Examiners shall enter into an
  interagency memorandum to share the information collected by the
  secretary of state under this chapter with the board.
         Sec. 73.008.  APPLICABILITY. This chapter does not limit
  nonclinical business support services that may be provided to a
  dentist by a dental support organization. 
         SECTION 2.  Sections 254.019(a), (b), and (c), Occupations
  Code, are amended to read as follows:
         (a)  In this section:
               (1)  "Business support services" has the meaning
  assigned by Section 73.001, Business & Commerce Code ["Dental
  service agreement" means an agreement between a dental service
  organization and a dentist under which the dental service
  organization will:
                     [(A)     provide services related to the nonclinical
  business aspects of a dental practice, including arranging or
  providing financing, performing billing or payroll tasks,
  processing patient insurance claims, scheduling or otherwise
  interacting with patients, and performing other administrative
  tasks;
                     [(B)     supervise or manage the employees or
  contractors of the dentist; or
                     [(C)     employ or otherwise contract with a dentist
  in the dentist's capacity as a dentist].
               (2)  "Dental support [service] organization" has the
  meaning assigned by Section 73.001, Business & Commerce Code [means
  an entity that:
                     [(A)     is owned wholly or partly by a person who is
  or is not a dentist; and
                     [(B)     under a dental service agreement, provides
  or offers to provide services to a dentist or employs or otherwise
  contracts with a dentist in the dentist's capacity as a dentist].
         (b)  The board shall collect the following information from
  dentists licensed by the board in conjunction with the issuance and
  renewal of each dental license:
               (1)  the number and type of dentists employed by the
  license holder, if any;
               (2)  the name under which the license holder provides
  dental services and each location at which those services are
  provided by that license holder;
               (3)  whether the license holder is a participating
  provider under the Medicaid program operated under Chapter 32,
  Human Resources Code, or the child health plan program operated
  under Chapter 62, Health and Safety Code;
               (4)  whether the license holder [is employed by or]
  contracts or enters into an agreement for business support services
  with a dental support [service] organization and, if so, the name
  and address of the dental support [service] organization;
               (5)  whether the license holder owns all or part of a
  dental support [service] organization and, if so, the name and
  address of the dental support [service] organization and of each
  dental office at which the dental support [service] organization
  provides services to patients;
               (6)  whether the license holder is a party to a dental
  support [service] agreement and, if so, the name and address of the
  dental support [service] organization that provides services under
  the agreement; and
               (7)  if the license holder owns all or part of a dental
  support [service] organization, whether the license holder's
  [that] practice is a party to a dental support [service] agreement
  and, if so, the name and address of the dental support [service]
  organization that provides services under the agreement.
         (c)  If requested by the board, a dental support [service]
  organization shall provide to the board the address of the
  locations where the organization provides business support
  [dental] services in this state and the name of each dentist
  providing dental services at each location.
         SECTION 3.  Notwithstanding Section 73.002, Business &
  Commerce Code, as added by this Act, a dental support organization
  is not required to register under that section before February 1,
  2016.
         SECTION 4.  This Act takes effect September 1, 2015.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 519 passed the Senate on
  April 1, 2015, by the following vote:  Yeas 26, Nays 4.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 519 passed the House on
  May 23, 2015, by the following vote:  Yeas 94, Nays 48, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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