Bill Summary for S 655 (2011-2012)

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Bill: DENTISTRY MANAGEMENT ARRANGEMENTS.

Summary date: 

Jun 27 2012
S.L. 2012-195

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 655 (Public) Filed Tuesday, April 19, 2011
TO REQUIRE THAT DENTIST AGREEMENTS WITH MANAGEMENT COMPANIES DO NOT COMPROMISE THE FUNDAMENTAL PUBLIC PURPOSE OF THE DENTAL PRACTICE ACT, WHICH IS ENSURING THAT CITIZENS HAVE ACCESS TO HIGH QUALITY DENTAL CARE THAT IS OWNED, CONTROLLED, AND SUPERVISED BY LICENSED AND PROFESSIONAL DENTISTS WITH DEMONSTRATED CLINICAL SKILLS AND WHO ARE ACCOUNTABLE FOR THEIR DENTAL DECISIONS.
Intro. by Pate, Brunstetter, Allran.

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Bill summary

House committee substitute makes the following changes to 1st edition.
Amends proposed GS 90-40.2 to make clarifying changes to the definitions for the following terms: management arrangement, management company, and professional entity. Adds a definition for ancillary personnel. Deletes provision that prohibits a dentist, professional entity, or management company from entering into a management arrangement that does not meet the requirements previously set forth. Deletes provisions regarding the North Carolina State Board of Dental Examiners’ (Board) review and determination of compliance authority over all management arrangements and deletes provisions listing criteria for the arrangements.
Requires a management agreement executed on or after January 1, 2013, to include on the written agreement, in a type size that appears more clearly and conspicuously than anything else in the document, a warning statement that the parties have the right and are encouraged to have the contract reviewed by legal counsel before signing the contract. Makes a management agreement lacking such notice invalid. Provides guidelines regarding determination of venue for actions brought under GS 90-40.1. Also provides criteria governing the actions of the Board for reporting suspected criminal acts and for cooperating with law enforcement agencies and the district attorney in conducting a criminal investigation or prosecution of unlicensed and unlawful practice of dentistry. Prohibits subjecting any Board member to examination in connection with any investigation, review, or inquiry related to the Board’s review of any management arrangement.
Provides that the above provisions apply to any dentistry management arrangement, as defined under new GS 90-40.2, entered into or renewed on or after the effective date, July 1, 2012.
Amends GS 90-40.1 to provide that appropriate venue for actions brought under the statute includes Wake County.
Establishes a six-member task force on dental management arrangement rules within the Board. Specifies the composition of the task force membership. Directs the task force to study and make recommendations on the review process for dental management arrangements. Specifies issues and matters to be considered in the study. Directs the task force to report its findings and any recommendations for rules to be adopted, as well as any statutory changes, to the Board by January 1, 2013. Requires the task force to terminate upon the filing of its report. Directs the Board to submit a written report to the General Assembly on the findings and recommendations of the task force and the Board’s proposed course of action by February 1, 2013.
Directs the Board to consider the task force’s documented recommendations before adopting rules and to conform existing rules to the requirements of new GS 90-40.2. Makes the provisions amending GS 90-40.1 and concerning the task force effective July 1, 2012.
Amends the title to read: AN ACT TO REQUIRE THAT DENTIST AGREEMENTS WITH MANAGEMENT COMPANIES CONFORM WITH THE DENTAL PRACTICE ACT AND TO ESTABLISH A TASK FORCE ON DENTAL MANAGEMENT ARRANGEMENT RULES.