By: Schwertner	S.B. No. 519

	A BILL TO BE ENTITLED
	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.