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Regulations - Chapter 2, Article 8

TITLE 16. PROFESSIONAL AND VOCATIONAL REGULATIONS
DIVISION 10. DENTAL BOARD OF CALIFORNIA
CHAPTER 2. DENTISTS
ARTICLE 8. DENTAL CORPORATIONS

Section 1055. Professional Relationships, Responsibilities, and Conduct Not Affected.
Section 1056. Application for Registration.
Section 1057. Additional Offices.
Section 1058. Continuing Validity of Certificate; Reports.
Section 1059. Security for Claims Against a Dental Corporation.
Section 1060. Shares: Ownership and Transfer.

Section 1055. Professional Relationships, Responsibilities, and Conduct Not Affected.
Nothing in the laws or rules relating to dental corporations alters the dentist's duties and responsibilities to and professional relationships with his patients. Nor do such laws or rules in any way impair the disciplinary powers of the board over its licentiates or impair any other law or rule pertaining to the standards of professional conduct of dentists.

Note: Authority cited: Sections 1614 and 1808, Business and Professions Code. Reference: Sections 1807 and 1808, Business and Professions Code.
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Section 1056. Application for Registration.
Note: Authority cited: Sections 1614 and 1808, Business and Professions Code. Reference: Sections 1801 and 1808, Business and Professions Code, and Section 15376, Government Code.

HISTORY
  1. New subsection (d) filed 2-22-88; operative 3-23-88 (Register 88, No.10).
  2. Change without regulatory effect repealing section filed 2-24-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No.9).

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Section 1057. Additional Offices.
A dental corporation is subject to the additional office requirements of Article 3.5, Chapter 4 of Division 2 of the Code. A dental corporation which desires to have more than one place of practice shall, prior to opening any additional office, apply for and receive permission in writing from the board.
Note: Authority cited: Sections 1614 and 1808, Business and Professions Code. Reference: Sections 1658, 1807 and 1808, Business and Professions Code.

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Section 1058. Continuing Validity of Certificate; Reports.
Note: Authority cited: Sections 1614 and 1808, Business and Professions Code. Reference: Sections 1801, 1802 and 1803, Business and Professions Code.

HISTORY
  1. Change without regulatory effect repealing section filed 2-24-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No.9).

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Section 1059. Security for Claims Against a Dental Corporation.
(a) When a dental corporation provides security by means of insurance for claims against it by its patients, the security shall consist of a policy or policies of insurance insuring either the corporation or all the employed licensed persons rendering such dental services against liability imposed by law for damages arising out of the rendering of, or failure to render, dental services by the corporation in an amount for each claim of at least $50,000 multiplied by the number of employed licensed persons rendering such dental services and an aggregate maximum limit of liability per policy year of at least $150,000 multiplied by the number of such employees; provided that the maximum coverage shall not be required to exceed $150,000 for each claim and $450,000 for all claims during the policy year, and provided further that the deductible portion of such insurance shall not exceed $5,000 multiplied by the number of such employees.
(b) All shareholders of the corporation shall be jointly and severally liable for all claims established against the corporation by its patients arising out of the rendering of, or failure to render, dental services up to the minimum amounts specified for insurance under subsection (a) hereof except during periods of time when either the corporation or all the employed licensed persons rendering dental services provide and maintain insurance for claims by its patients arising out of the rendering of, or failure to render dental services. Said insurance when provided shall meet the minimum standards established in subsection (a) above.

Note: Authority cited: Sections 1614 and 1808, Business and Professions Code. Reference: Section 1808, Business and Professions Code.

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Section 1060. Shares: Ownership and Transfer
(a) The shares of a dental corporation may be owned only by a dental corporation or by licensed dentists, hereinafter referred to as eligible shareholders; provided, however, that no issuance or transfer of shares may be made which violates the provisions of Article 3.5, Chapter 4 of Division 2 of the Code (Sections 1658 through 1658.7 of the Code).
(b) Where there are two or more shareholders in a dental corporation and one of the shareholders:
  1. (1) Dies;
  2. (2) Ceases to be an eligible shareholder; or
  3. (3) Becomes a disqualified person as defined in Section 13401(d) of the Corporations Code, for a period exceeding 90 days; his shares shall be sold and transferred to the corporation, its shareholders, or other eligible persons on such terms as are agreed upon. Such sale or transfer shall be not later than six months after any such death and not later than 90 days after the date he ceases to be an eligible shareholder, or 90 days after the date he becomes a disqualified person. The requirements of subsections (a) and (b) of this section shall be set forth in the dental corporation's articles of incorporation or bylaws, except that the terms of the sale or transfer provided for in said subsection need not be set forth in said articles or bylaws if they are set forth in a written agreement.
(c) A corporation and its shareholders may, but need not, agree that shares sold to it by a person who becomes a disqualified person may be resold to such person if and when he again becomes an eligible shareholder.
(d) The share certificates of a dental corporation shall contain an appropriate legend setting forth the restrictions of section (a) and, where applicable, the restrictions of sections (b) and (c).
(e) The income of a dental corporation attributable to dental services rendered while a shareholder is a disqualified person shall not in any manner accrue to the benefit of such shareholder or his shares.

Note: Authority cited: Sections 1614 and 1608, Business and Professions Code. Reference: Sections 1806 and 1808, Business and Professions Code.