84R3020 GRM-F
	By: Schwertner	S.B. No. 519

	A BILL TO BE ENTITLED
	AN ACT
	relating to the registration of dental support organizations;
	imposing a fee; 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 another person, 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 or dental practice.
	(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.  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 or
	dental practice in this state with which the dental support
	organization has entered into an agreement to provide two or more
	business support services and the name of each dentist providing
	dental services at each location;
	(3)  the name of each dentist who owns 10 percent or
	more of the dental support organization; and
	(4)  the name of each person who is not a dentist and
	owns 10 percent or more of the dental support organization.
	(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. 73.004.  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 not later than the 90th day after the date the
	information required to be contained in the registration under
	Section 73.003 changes or becomes materially incomplete or
	incorrect.
	Sec. 73.005.  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. 73.006.  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.
	SECTION 2.  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 3.  This Act takes effect September 1, 2015.