CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1431

Introduced by Senator Glazer

February 21, 2020

An act to amend Section 732 of the Business and Professions Code, relating to healing arts.


LEGISLATIVE COUNSEL'S DIGEST


SB 1431, as introduced, Glazer. Physicians and surgeons and dentists: refund of overpayments by patients.
Existing law requires a physician and surgeon and a dentist to refund any amount paid by a patient for services rendered that constitutes a duplicate payment within 30 days after the patient’s request for a refund if the duplicate payment has been received or within 30 days after receipt of the duplicate payment if the duplicate payment has not been received. Under existing law, if the patient does not request a refund the physician and surgeon or dentist is required to notify the patient of the duplicate payment within 90 days of the date that the license knows, or should have known, of the receipt of the duplicate payment. Under existing law, the license is then required to notify the patient and refund the duplicate payment within 30 days. Existing law provides that a violation of this provision constitutes unprofessional conduct.
This bill would reduce those 30-day timeframes to 21 days.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 732 of the Business and Professions Code is amended to read:

732.
 (a) A physician and surgeon and a dentist shall refund any amount that a patient has paid for services rendered that has subsequently been paid to the physician and surgeon or dentist by a third-party payor and that constitutes a duplicate payment. The refund shall be made as follows:
(1) If the patient requests a refund, within 30 21 days following the request from that patient for a refund if the duplicate payment has been received, or within 30 21 days of receipt of the duplicate payment if the duplicate payment has not been received.
(2) If the patient does not request a refund, within 90 days of the date the physician and surgeon or dentist knows, or should have known, of the receipt of the duplicate payment, the physician and surgeon or dentist shall notify the patient of the duplicate payment, and the duplicate payment shall be refunded within 30 21 days of the notification unless the patient requests that a credit balance be retained.
(b) Violation of this section shall constitute unprofessional conduct. Disciplinary proceedings shall be conducted in accordance with the Medical Practice Act (Chapter 5 (commencing with Section 2000)) or the Dental Practice Act (Chapter 4 (commencing with Section 1600)), as applicable.