Registered Dental Hygienist In Alternative Practice Corporations - Dentistry - Business & Professions - CA

Section § 1967

This section explains that a dental hygienist can form a special kind of business called a 'professional corporation' to offer their services. However, they must follow certain laws and rules, including those set by the Dental Hygiene Board of California and the Moscone-Knox Professional Corporation Act. This applies to anyone involved in the corporation, such as shareholders, officers, and staff.

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 Board of California.

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Section § 1967.1

This law states that it’s considered unprofessional conduct if a licensed person under this section breaks any part of it, tries to break it, helps someone else break it, or plans to break it. This includes any violations related to the Moscone-Knox Professional Corporation Act or its regulations.

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.

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Section § 1967.2

If you're a licensed dental healthcare professional working for or in an alternative dental hygienist practice as part of a corporation recognized under a specific law, you must stay within your license's boundaries and follow all relevant licensing rules.

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.

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Section § 1967.3

If a dental hygienist, who is a shareholder in a specialized corporation, is unable to legally provide services (making them a 'disqualified person'), they cannot benefit financially from the services provided by the corporation. Their income from these services shouldn't increase their wealth or stock value in the company.

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.

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Section § 1967.4

This law requires that the rules (bylaws) of a dental hygienist corporation must include steps for handling stock owned by someone who can no longer hold it, either because they are disqualified or have died. If a shareholder can't own the stock anymore, it must be sold back to the corporation or to the other shareholders within specific timeframes: 90 days if they are disqualified, and six months if they have died. Additionally, these corporations must have insurance or some form of financial security to cover any claims made against them by patients.

(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.

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