SB 1616

Senate Engrossed
business entities;
  licensees; exemptions
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1616
AN
ACT
Amending sections 32-1213, 32-1231
and 32-1237, Arizona Revised Statutes; relating to the state board of
dental examiners.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 32-1213, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-1213. Business entities; registration; renewal; civil penalty;
exceptions
A. A business entity may not offer dental services
pursuant to this chapter unless:
1. The business entity is registered with the board
pursuant to this section.
2. The services are conducted by a licensee pursuant
to this chapter.
B. The business entity must file a registration
application on a form provided by the board.� The application must include:
1. A description of the business entity's services
offered to the public.
2. The name of any dentist who is authorized to
provide and who is responsible for providing the dental services offered at
each office.
3. The names and addresses of the officers and
directors of the business entity.
4. The name of the business entity's custodian of
records.
5. A registration fee prescribed by the board in
rule.
C. A business entity must file a separate
registration application and pay a fee for each branch office in this state.
D. A registration expires three years after the date
the board issues the registration. A business entity that wishes to
renew a registration must submit an application for renewal as prescribed by
the board on a triennial basis on a form provided by the board before the
expiration date. A business entity that fails to renew the
registration before the expiration date is subject to a late fee as prescribed
by the board by rule.� The board may stagger the dates for renewal
applications.
E. The business entity must notify the board in
writing within thirty days after any change:
1. In the business entity's name, address or
telephone number.
2. In the officers or directors of the business
entity.
3. In the name of any dentist who is authorized to
provide and who is responsible for providing the dental services in any
facility.
4. In the name of the business
entity's custodian of records who will accept subpoenas and respond to patient
records requests.
F. The business entity shall establish a written
protocol for the secure storage, transfer and access of the dental records of
the business entity's patients. This protocol must include, at a
minimum, procedures for:
1. Notifying patients of the future locations of
their records if the business entity terminates or sells the practice.
2. Disposing of
unclaimed dental records.
3. The timely
response to requests by patients for copies of their records.
G. The business entity must notify the board within
thirty days after the dissolution of any registered business entity or the
closing or relocation of any facility and must disclose to the board the
business entity's procedure by which its patients may obtain their records.
H. The board may do any of the following pursuant to
its disciplinary procedures if a business entity violates the board's statutes
or rules:
1. Refuse to issue a registration.
2. Suspend or revoke a registration.
3. Impose a civil penalty of not more than $2,000
for each violation.
4. Enter a decree of censure.
5. Issue an order prescribing a period and terms of
probation that are best adapted to protect the public welfare and that may
include a requirement for restitution to a patient for a violation of this
chapter or rules adopted pursuant to this chapter.
6. Issue a letter of concern if a business entity's
actions may cause the board to take disciplinary action.
I. The board shall deposit, pursuant to sections 35-146
and 35-147, civil penalties collected pursuant to this section in the
state general fund.
J. This section does not apply to:
1. A sole proprietorship or partnership that
consists exclusively of dentists who are licensed pursuant to this chapter.
2. Any of the following entities licensed under
title 20:
(a) A service corporation.
(b) An insurer authorized to transact disability
insurance.
(c) A prepaid dental plan organization that does not
provide directly for prepaid dental services.
(d) A health care services organization that does
not provide directly for dental services.
3. A professional corporation or professional
limited liability company, the shares of which are exclusively owned by
dentists who are licensed pursuant to this chapter and that is formed to engage
in the practice of dentistry pursuant to title 10, chapter 20 or title 29
relating to professional limited liability companies.
4. A facility regulated by the federal government or
a state, district or territory of the United States.
5. An administrator or executor of the estate of a
deceased dentist or a person who is legally authorized to act for a dentist who
has been adjudicated to be mentally incompetent for not more than one year
after the date the board receives notice of the dentist's death or
incapacitation pursuant to section 32-1270.
6. A recognized dental school,
recognized dental therapy school or recognized dental hygiene school.
K. A facility that offers dental services to the
public by persons licensed under this chapter shall be registered by the board
unless the facility is any of the following:
1. Owned by a dentist who is licensed pursuant to
this chapter.
2. Regulated by the federal government or a state,
district or territory of the United States.
3. A recognized dental school,
recognized dental therapy school or recognized dental hygiene school.
L. Except for issues relating to insurance coding
and billing that require the name, signature and license number of the dentist
providing treatment, this section does not:
1. Authorize a licensee in the course of providing
dental services for a business entity registered pursuant to this section to
disregard or interfere with a policy or practice established by the business
entity for the operation and management of the business.
2. Authorize a business entity registered pursuant
to this section to establish or enforce a business policy or practice that may
interfere with the clinical judgment of the licensee in providing dental
services for the business entity or may compromise a licensee's ability to
comply with this chapter.
M. The board shall adopt rules that provide a method
for the board to receive the assistance and advice of business entities
licensed pursuant to this chapter in all matters relating to the regulation of
business entities.
N. An individual currently holding a surrendered or
revoked license to practice dentistry or dental hygiene in any state or
jurisdiction in the United States may not have a majority ownership interest in
the business entity registered pursuant to this section. Revocation
and surrender of licensure shall be limited to disciplinary actions resulting
in loss of license or surrender of license instead of disciplinary action.
Dentists or dental hygienists affected by this subsection shall have one year
after the surrender or revocation to divest themselves of their ownership
interest. This subsection does not apply to publicly held
companies. For the purposes of this subsection, "majority
ownership interest" means an ownership interest greater than fifty
percent. END_STATUTE
Sec. 2. Section 32-1231, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-1231. Persons not required to be licensed; board jurisdiction
A. This chapter does not
prohibit:
1. A dentist, dental therapist or dental hygienist
who is officially employed in the service of the United States from practicing
dentistry in the dentist's, dental therapist's or dental hygienist's official
capacity, within the scope of that person's authority, on persons who are
enlisted in, directly connected with or under the immediate control of some
branch of service of the United States.
2. A person, whether or not licensed by this state,
from practicing dental therapy either:
(a) In the discharge of official duties on behalf of
the United States government, including the United States department of
veterans affairs, the United States public health service and the Indian health
service.
(b) While employed by tribal health programs
authorized pursuant to Public Law 93-638 or urban Indian health programs.
3. An intern or student of dentistry, dental therapy
or dental hygiene from operating practicing
in the clinical departments or laboratories of a recognized dental school,
recognized dental therapy school, recognized dental hygiene school or hospital
under the supervision of a dentist.
4. An unlicensed person from performing for a
licensed dentist merely mechanical work on inert matter not within the oral
cavity in the construction, making, alteration or repairing of any artificial
dental substitute or any dental restorative or corrective appliance, if the
casts or impressions for that work have been furnished by a licensed dentist
and the work is directly supervised by the dentist for whom done or under a
written authorization signed by the dentist, but the burden of proving that
written authorization or direct supervision is on the person charged with
having violated this provision.
5. A clinician who is not licensed in this state
from giving demonstrations, before bona fide dental societies, study clubs and
groups of professional students, that are free to the persons on whom made.
6. The state director of dental public health from
performing the director's administrative duties as prescribed by law.
7. A dentist or dental hygienist to whom a restricted
permit has been issued from practicing dentistry or dental hygiene in this
state as provided in sections 32-1237 and 32-1292.
8. A dentist, dental therapist or dental hygienist
from practicing for educational purposes on behalf in the clinical departments or laboratories of a recognized
dental school, recognized dental therapy school or recognized dental hygiene
school.
9. A dentist who holds an active and unrestricted
license in another state, territory or possession of the United States from
practicing for educational purposes in connection with recognized continuing
dental education. A dentist who practices under this paragraph:
(a) May not receive compensation for dental services
provided in connection with recognized continuing dental education.
(b) Is subject to the jurisdiction and discipline of
the board to the same extent as dentists who are licensed in this state.
(c) May not provide any dental care or services in
this state to a person who is either:
(i) Physically unable to safely receive the dental
care or services.
(ii) Not mentally competent to knowingly and
voluntarily consent to the dental care or services.
(d) Shall file a restricted permit application on a
form approved by the board with the provider of the recognized continuing
dental education before providing any dental care or services in this
state. The provider of the recognized continuing dental education
shall retain the dentist's restricted permit application for a period of at
least five years.
B. The board has no jurisdiction or
authority over any person, whether or not licensed by this state, who is acting
within the scope of subsection A, paragraph 3 or 8 of this section, except that
a licensee is subject to board jurisdiction for violating section 32-1263,
subsection A, paragraph 2 and is required to comply with section 32-3208.
END_STATUTE
Sec. 3. Section 32-1237, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-1237. Restricted permit
A. A person may apply for a restricted permit if the
applicant demonstrates to the board's satisfaction that the applicant:
1. Has a pending contract with a recognized
charitable dental clinic or organization or will be practicing for educational
purposes in connection with and while enrolled in recognized continuing dental
education that offers dental services without compensation or at a rate that
only reimburses the clinic for dental supplies and overhead costs and the
applicant will receive no compensation for dental services provided at the
clinic or organization or in connection with the recognized continuing dental
education.
2. Has a license to practice dentistry issued by
another state or territory of the United States or the District of Columbia.
3. Has been actively engaged in one or more of the
following for at least three years immediately preceding the application:
(a) The practice of dentistry.
(b) An approved dental residency training program.
(c) Postgraduate training deemed by the board
equivalent to an approved dental residency training program.
4. Is competent and proficient to practice
dentistry.
5. Meets the requirements of section 32-1232,
subsection A, other than the requirement to meet section 32-1233.
B. For the purposes of meeting the requirements of
subsection A of this section, the provider of the recognized continuing dental
education, before the commencement of the recognized continuing
dental education, shall notify the board of the restricted permit applicants
the provider has accepted that who
meet the requirements of section 32-1231, subsection A,
paragraph 9.� The board shall acknowledge receipt of the notification within
five business days after the later of receiving either:
1. The notification.
2. A copy of the applicants' valid fingerprint
clearance cards. END_STATUTE