SB-0631, As Passed House, December 13, 2017

SB-0631, As Passed Senate, December 6, 2017

SUBSTITUTE FOR

SENATE BILL NO. 631

     A bill to amend 1963 PA 125, entitled

"An act to provide for the incorporation, supervision, and

regulation of nonprofit dental care corporations; to prescribe the

functions of the commissioner of insurance as to such corporations;

to provide for the imposition of a regulatory fee; and to prescribe

penalties for violations of this act,"

by amending section 13 (MCL 550.363).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 13. (1) The board of directors of a dental care

corporation shall consist of must have not more than 25 members.

and shall The board must have representation from the general

public, from licensed dentists, and from among the various classes

of subscribers enumerated identified in section 19. of this act and

from the Michigan state dental association or its successor, but at

least 40 per cent and not more than 60% The Michigan Dental

Association, or its successor, may submit to a dental care

corporation a list of candidates recommended for appointment to the

board. A dental care corporation may consider those recommended

candidates, but is not required to appoint any recommended

candidate to the board.

     (2) Subject to subsection (3), not less than 40% of the

directors shall of a dental care corporation must be duly licensed

dentists who are approved by the Michigan state dental association

or its successor.not active employees of the dental care

corporation.

     (3) Of the not less than 40% of the board who are licensed

dentists and who are not active employees of the dental care

corporation under subsection (2), a minimum portion must be members

of the Michigan Dental Association at the time of appointment or

reappointment to the board. At a minimum, the proportion must equal

the percentage of licensed dentists who are also members of the

Michigan Dental Association.

     (4) The board of directors of a dental care corporation must

consist of not more than 60% licensed dentist directors.

     (5) If the director of the department of insurance and

financial services believes that the composition of the board of a

dental care corporation is not in compliance with this section, the

director of the department of insurance and financial services

shall hold a hearing. After the hearing and after written findings

that the board composition does not comply with this section, the

director of the department of insurance and financial services

shall issue and cause to be served on the dental care corporation a

copy of the findings and an order requiring the dental care

corporation to comply with this section. In addition, if the dental

care corporation does not comply with the order within 30 days, the

director of the department of insurance and financial services may

order the payment of a civil fine of not more than $10,000.00.

     (6) Not more frequently than annually, on the Michigan Dental

Association's request, a dental care corporation shall provide all

of the following information:

     (a) The names of the dentist directors.

     (b) The terms of service of the dentist directors.

     (c) The date on which new dentist directors are elected.

     Enacting section 1. This amendatory act does not take effect

unless Senate Bill No._673                                    

            of the 99th Legislature is enacted into law.