Act No. 222

Public Acts of 2017

Approved by the Governor

December 19, 2017

Filed with the Secretary of State

December 20, 2017

EFFECTIVE DATE: December 20, 2017

STATE OF MICHIGAN

99TH LEGISLATURE

REGULAR SESSION OF 2017

Introduced by Senators Shirkey, Knezek, Schmidt, Hertel, Hune and Jones

ENROLLED SENATE BILL No. 631

AN ACT 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 must have not more than 25 members. The board must have representation from the general public, from licensed dentists, and from among the various classes of subscribers identified in section 19. 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 of a dental care corporation must be licensed dentists who are 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.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor