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

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Governor