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

California Legislature—2015–16 Regular Session

Assembly BillNo. 502


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, as amended, 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 dentalbegin delete assistants andend deletebegin insert assistants,end insert licensedbegin delete dentistsend deletebegin insert dentists, registered dental hygienists, and registered dental hygienists in extended functionsend insert 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 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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1925 of the Business and Professions
2Code
is amended to read:

P3    1

1925.  

A registered dental hygienist in alternative practice may
2practice, pursuant to subdivision (a) of Section 1907, subdivision
3(a) of Section 1908, subdivisions (a) and (b) of Section 1910,
4Section 1910.5, and Section 1926.05 as an employee of a dentist
5or of another registered dental hygienist in alternative practice, as
6an independent contractor, as a sole proprietor of an alternative
7dental hygiene practice, as an employee of a primary care clinic
8or specialty clinic that is licensed pursuant to Section 1204 of the
9Health and Safety Code, as an employee of a primary care clinic
10exempt from licensure pursuant to subdivision (c) of Section 1206
11of the Health and Safety Code, as an employee of a clinic owned
12or operated by a public hospital or health system, as an employee
13of a clinic owned and operated by a hospital that maintains the
14primary contract with a county government to fill the county’s role
15under Section 17000 of the Welfare and Institutions Code, or as
16an employee of a professional corporation under the
17Moscone-Knox Professional Corporation Act (commencing with
18Section 13400) of Part 4 of Division 3 of Title 1 of the
19Corporations Code.

20

SEC. 2.  

Article 9.1 (commencing with Section 1967) is added
21to Chapter 4 of Division 2 of the Business and Professions Code,
22to read:

23 

24Article 9.1.  Registered Dental Hygienist in Alternative Practice
25Corporations
26

 

27

1967.  

A registered dental hygienist in alternative practice
28corporation is a professional corporation that is authorized to render
29professional services, as defined in Section 13401 of the
30Corporations Code, so long as that professional corporation and
31its shareholders, officers, directors, and professional employees
32rendering professional services are in compliance with the
33Moscone-Knox Professional Corporation Act (commencing with
34Section 13400) of Part 4 of Division 3 of Title 1 of the
35Corporations Code, this article, and all other statutes and
36regulations now or hereafter adopted pertaining to the professional
37corporation and the conduct of its affairs. With respect to a
38registered dental hygienist in alternative practice corporation, the
39 governmental agency referred to in the Moscone-Knox Professional
40Corporation Act is the Dental Hygiene Committee of California.

P4    1

1967.1.  

It shall constitute unprofessional conduct and a
2violation of this article for any person licensed under this article
3to violate, attempt to violate, directly or indirectly, assist in or abet
4the violation of, or conspire to violate any provision or term of
5this article, the Moscone-Knox Professional Corporation Act, or
6any regulations duly adopted under those laws.

7

1967.2.  

A registered dental hygienist in alternative practice
8corporation shall not do or fail to do any act the doing of which
9or the failure to do would constitute unprofessional conduct under
10any statute or regulation, now or hereafter adopted. In the conduct
11of its practice, it shall observe and be bound by such statutes and
12regulations to the same extent as a person holding a license under
13Article 9 (commencing with Section 1900).

14

1967.3.  

The income of a registered dental hygienist in
15alternative practice corporation attributable to professional services
16rendered while a shareholder is a disqualified person, as defined
17in subdivision (e) of Section 13401 of the Corporations Code, shall
18not in any manner accrue to the benefit of such shareholder or his
19or her shares in the registered dental hygienist in alternative
20practice corporation.

21

1967.4.  

(a) The bylaws of a registered dental hygienist in
22alternative practice corporation shall include a provision whereby
23the capital stock of the professional corporation owned by a
24disqualified person, as defined in subdivision (e) of Section 13401
25of the Corporations Code, or a deceased person, shall be sold to
26the professional corporation or to the remaining shareholders of
27the professional corporation not later than 90 days after
28disqualification, if the shareholder becomes a disqualified person,
29or not later than six months after death, if the shareholder becomes
30deceased.

31(b) A registered dental hygienist in alternative practice
32corporation shall provide adequate security by insurance or
33otherwise for claims against it by its patients arising out of the
34rendering of professional services.

35

SEC. 3.  

Section 13401 of the Corporations Code is amended
36to read:

37

13401.  

As used in this part:

38(a) “Professional services” means any type of professional
39services that may be lawfully rendered only pursuant to a license,
P5    1certification, or registration authorized by the Business and
2Professions Code, the Chiropractic Act, or the Osteopathic Act.

3(b) “Professional corporation” means a corporation organized
4under the General Corporation Law or pursuant to subdivision (b)
5of Section 13406 that is engaged in rendering professional services
6in a single profession, except as otherwise authorized in Section
713401.5, pursuant to a certificate of registration issued by the
8governmental agency regulating the profession as herein provided
9and that in its practice or business designates itself as a professional
10or other corporation as may be required by statute. However, any
11professional corporation or foreign professional corporation
12rendering professional services by persons duly licensed by the
13Medical Board of California or any examining committee under
14the jurisdiction of the board, the Osteopathic Medical Board of
15California, the Dental Board of California, the Dental Hygiene
16Committee of California, the California State Board of Pharmacy,
17the Veterinary Medical Board, the California Architects Board,
18the Court Reporters Board of California, the Board of Behavioral
19Sciences, the Speech-Language Pathology and Audiology Board,
20the Board of Registered Nursing, or the State Board of Optometry
21shall not be required to obtain a certificate of registration in order
22to render those professional services.

23(c) “Foreign professional corporation” means a corporation
24organized under the laws of a state of the United States other than
25this state that is engaged in a profession of a type for which there
26is authorization in the Business and Professions Code for the
27performance of professional services by a foreign professional
28corporation.

29(d) “Licensed person” means any natural person who is duly
30licensed under the provisions of the Business and Professions
31Code, the Chiropractic Act, or the Osteopathic Act to render the
32same professional services as are or will be rendered by the
33professional corporation or foreign professional corporation of
34which he or she is, or intends to become, an officer, director,
35shareholder, or employee.

36(e) “Disqualified person” means a licensed person who for any
37reason becomes legally disqualified (temporarily or permanently)
38to render the professional services that the particular professional
39corporation or foreign professional corporation of which he or she
40is an officer, director, shareholder, or employee is or was rendering.

P6    1

SEC. 4.  

Section 13401.5 of the Corporations Code is amended
2to read:

3

13401.5.  

Notwithstanding subdivision (d) of Section 13401
4and any other provision of law, the following licensed persons
5may be shareholders, officers, directors, or professional employees
6of the professional corporations designated in this section so long
7as the sum of all shares owned by those licensed persons does not
8exceed 49 percent of the total number of shares of the professional
9corporation so designated herein, and so long as the number of
10those licensed persons owning shares in the professional
11corporation so designated herein does not exceed the number of
12persons licensed by the governmental agency regulating the
13designated professional corporation. This section does not limit
14employment by a professional corporation designated in this section
15 to only those licensed professionals listed under each subdivision.
16Any person duly licensed under Division 2 (commencing with
17Section 500) of the Business and Professions Code, the
18Chiropractic Act, or the Osteopathic Act may be employed to
19render professional services by a professional corporation
20designated in this section.

21(a) Medical corporation.

22(1) Licensed doctors of podiatric medicine.

23(2) Licensed psychologists.

24(3) Registered nurses.

25(4) Licensed optometrists.

26(5) Licensed marriage and family therapists.

27(6) Licensed clinical social workers.

28(7) Licensed physician assistants.

29(8) Licensed chiropractors.

30(9) Licensed acupuncturists.

31(10) Naturopathic doctors.

32(11) Licensed professional clinical counselors.

33(12) Licensed physical therapists.

34(b) Podiatric medical corporation.

35(1) Licensed physicians and surgeons.

36(2) Licensed psychologists.

37(3) Registered nurses.

38(4) Licensed optometrists.

39(5) Licensed chiropractors.

40(6) Licensed acupuncturists.

P7    1(7) Naturopathic doctors.

2(8) Licensed physical therapists.

3(c) Psychological corporation.

4(1) Licensed physicians and surgeons.

5(2) Licensed doctors of podiatric medicine.

6(3) Registered nurses.

7(4) Licensed optometrists.

8(5) Licensed marriage and family therapists.

9(6) Licensed clinical social workers.

10(7) Licensed chiropractors.

11(8) Licensed acupuncturists.

12(9) Naturopathic doctors.

13(10) Licensed professional clinical counselors.

14(d) Speech-language pathology corporation.

15(1) Licensed audiologists.

16(e) Audiology corporation.

17(1) Licensed speech-language pathologists.

18(f) Nursing corporation.

19(1) Licensed physicians and surgeons.

20(2) Licensed doctors of podiatric medicine.

21(3) Licensed psychologists.

22(4) Licensed optometrists.

23(5) Licensed marriage and family therapists.

24(6) Licensed clinical social workers.

25(7) Licensed physician assistants.

26(8) Licensed chiropractors.

27(9) Licensed acupuncturists.

28(10) Naturopathic doctors.

29(11) Licensed professional clinical counselors.

30(g) Marriage and family therapist corporation.

31(1) Licensed physicians and surgeons.

32(2) Licensed psychologists.

33(3) Licensed clinical social workers.

34(4) Registered nurses.

35(5) Licensed chiropractors.

36(6) Licensed acupuncturists.

37(7) Naturopathic doctors.

38(8) Licensed professional clinical counselors.

39(h) Licensed clinical social worker corporation.

40(1) Licensed physicians and surgeons.

P8    1(2) Licensed psychologists.

2(3) Licensed marriage and family therapists.

3(4) Registered nurses.

4(5) Licensed chiropractors.

5(6) Licensed acupuncturists.

6(7) Naturopathic doctors.

7(8) Licensed professional clinical counselors.

8(i) Physician assistants corporation.

9(1) Licensed physicians and surgeons.

10(2) Registered nurses.

11(3) Licensed acupuncturists.

12(4) Naturopathic doctors.

13(j) Optometric corporation.

14(1) Licensed physicians and surgeons.

15(2) Licensed doctors of podiatric medicine.

16(3) Licensed psychologists.

17(4) Registered nurses.

18(5) Licensed chiropractors.

19(6) Licensed acupuncturists.

20(7) Naturopathic doctors.

21(k) Chiropractic corporation.

22(1) Licensed physicians and surgeons.

23(2) Licensed doctors of podiatric medicine.

24(3) Licensed psychologists.

25(4) Registered nurses.

26(5) Licensed optometrists.

27(6) Licensed marriage and family therapists.

28(7) Licensed clinical social workers.

29(8) Licensed acupuncturists.

30(9) Naturopathic doctors.

31(10) Licensed professional clinical counselors.

32(l) Acupuncture corporation.

33(1) Licensed physicians and surgeons.

34(2) Licensed doctors of podiatric medicine.

35(3) Licensed psychologists.

36(4) Registered nurses.

37(5) Licensed optometrists.

38(6) Licensed marriage and family therapists.

39(7) Licensed clinical social workers.

40(8) Licensed physician assistants.

P9    1(9) Licensed chiropractors.

2(10) Naturopathic doctors.

3(11) Licensed professional clinical counselors.

4(m) Naturopathic doctor corporation.

5(1) Licensed physicians and surgeons.

6(2) Licensed psychologists.

7(3) Registered nurses.

8(4) Licensed physician assistants.

9(5) Licensed chiropractors.

10(6) Licensed acupuncturists.

11(7) Licensed physical therapists.

12(8) Licensed doctors of podiatric medicine.

13(9) Licensed marriage and family therapists.

14(10) Licensed clinical social workers.

15(11) Licensed optometrists.

16(12) Licensed professional clinical counselors.

17(n) Dental corporation.

18(1) Licensed physicians and surgeons.

19(2) Dental assistants.

20(3) Registered dental assistants.

21(4) Registered dental assistants in extended functions.

22(5) Registered dental hygienists.

23(6) Registered dental hygienists in extended functions.

24(7) Registered dental hygienists in alternative practice.

25(o) Professional clinical counselor corporation.

26(1) Licensed physicians and surgeons.

27(2) Licensed psychologists.

28(3) Licensed clinical social workers.

29(4) Licensed marriage and family therapists.

30(5) Registered nurses.

31(6) Licensed chiropractors.

32(7) Licensed acupuncturists.

33(8) Naturopathic doctors.

34(p) Physical therapy corporation.

35(1) Licensed physicians and surgeons.

36(2) Licensed doctors of podiatric medicine.

37(3) Licensed acupuncturists.

38(4) Naturopathic doctors.

39(5) Licensed occupational therapists.

40(6) Licensed speech-language therapists.

P10   1(7) Licensed audiologists.

2(8) Registered nurses.

3(9) Licensed psychologists.

4(10) Licensed physician assistants.

5(q) Registered dental hygienist in alternative practice
6corporation.

7(1) Dental assistants.

8(2) Licensed dentists.

begin insert

9(3) Registered dental hygienists.

end insert
begin insert

10(4) Registered dental hygienists in extended functions.

end insert


O

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