HB0592ham002 103RD GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 5/3/2023

10300HB0592ham002 LRB103 04177 BMS 59824 a

AMENDMENT TO HOUSE BILL 592

AMENDMENT NO. ______. Amend House Bill 592 by replacing everything after the enacting clause with the following:

"Section 5. The Dental Service Plan Act is amended by changing Sections 16, 17, 22, 25, and 43 as follows:

(215 ILCS 110/16) (from Ch. 32, par. 690.16)

Sec. 16. A Nine or more natural persons of legal age, all of whom are residents of Illinois and citizens of the United States, and at least a majority of whom are dentists licensed in Illinois to practice dentistry, may form, under the provisions of this Act, a dental service plan corporation for the purpose of establishing and operating a dental service plan or plans. Such corporation shall be subject to regulation and supervision by the Director as hereinafter provided, but shall not be subject to the laws of this State with respect to insurance corporations, except as provided in this Act.

(Source: Laws 1965, p. 2179.)

(215 ILCS 110/17) (from Ch. 32, par. 690.17)

Sec. 17. The business and affairs of a dental service plan corporation shall be managed by a board of trustees, which shall have the power to adopt and to amend, from time to time, by-laws governing the conduct of the corporation's business, unless the by-laws assign such power to the members of the dental service plan corporation, if any. Trustees shall be competent and trustworthy, possess good reputations, and have appropriate training, experience, or education. The number of trustees shall be not less than 9 nor more than 21. Subject to such limitation, the number of trustees shall be fixed by the by-laws, except as to the number of the first board of trustees which number shall be fixed by the charter, and the number of trustees may be increased or decreased from time to time by amendment to the by-laws. In the absence of a by-law fixing the number of trustees, the number shall be the same as that stated in the charter. The trustees constituting the first board of trustees shall be named in the charter and shall hold office for such period or periods as may be specified in the charter or the by-laws. Trustees may be divided into classes and the terms of office of the several classes need not be uniform, but no such term shall exceed 3 years. Each trustee shall hold office for the term for which he is elected and until his successor has been elected and qualified. Any vacancy occurring in the board of trustees and any trusteeship to be filled by reason of an increase in the number of trustees may be filled by the board of trustees. A trustee appointed to fill a vacancy shall be appointed for the unexpired term of his predecessor in office. Each trustee shall be of legal age and a citizen of the United States. At least one-third of the trustees shall be participating dentists of the corporation licensed in Illinois to practice dentistry who are also residents of Illinois, and they shall be designated as "dental trustees". The remaining trustees shall be designated as "public trustees". As the terms of dental trustees expire, they shall be replaced, from time to time, by participating dentists of the corporation licensed in Illinois to practice dentistry who are also residents of Illinois, and elected by the corporation's participating dentists, in the manner prescribed by the by-laws. As the terms of public trustees expire, they shall be replaced, from time to time, by election by the corporation's subscribers, in the manner prescribed by the by-laws. Voting by proxy shall be permitted. The board of trustees shall appoint a dental advisory committee, for the purpose of providing counsel and advice to the board of trustees, that shall be comprised of individuals licensed in the State of Illinois to practice dentistry.

(Source: P.A. 97-989, eff. 1-1-13.)

(215 ILCS 110/22) (from Ch. 32, par. 690.22)

Sec. 22. Amendments to a charter shall be made by application to the Director and shall be subject to his approval.

Amendments to a charter having the effect of adding one or more additional counties in which the dental service plan corporation shall operate may, if a majority of the dentists residing and in active practice therein have agreed to become participating dentists, be adopted by the affirmative vote of a majority of the trustees then in office, unless the by-laws assign such power to the members of the dental service plan corporation, if any.

(Source: Laws 1965, p. 2179.)

(215 ILCS 110/25) (from Ch. 32, par. 690.25)

Sec. 25. Application of Insurance Code provisions. Dental service plan corporations and all persons interested therein or dealing therewith shall be subject to the provisions of Articles IIA, VIII 1/2, XI, and XII 1/2 and Sections 3.1, 133, 136, 139, 140, 143, 143c, 149, 355.2, 355.3, 367.2, 401, 401.1, 402, 403, 403A, 408, 408.2, and 412, and subsection (15) of Section 367 of the Illinois Insurance Code.

(Source: P.A. 99-151, eff. 7-28-15.)

(215 ILCS 110/43) (from Ch. 32, par. 690.43)

Sec. 43. Every dental service plan corporation organized hereunder shall be operated and conducted not-for-profit and shall be deemed a charitable and benevolent corporation, and all of its funds and property shall be exempt from every State, county, district, municipal and school tax or assessment, and all other taxes and license fees, from the payment of which charitable and benevolent corporations or institutions are now or may hereafter be exempt. This exemption shall not prevail against fees and charges imposed by Sections 408, 408.2, 409, 444, and 444.1 of the Illinois Insurance Code. The laws of this State state applicable to not-for-profit corporations, including, without limitation, the laws relating to the merger, dissolution, and liquidation of domestic not-for-profit corporations and in respect to the rights, classification, and meetings of members, and the selection, change, duties, and powers of corporate officers, and the filing of annual reports by domestic not-for-profit corporations shall be applicable to corporations organized under this Act act to the extent the same are not inconsistent with the provisions of this Act act. Wherever in any such laws reference is made to "Directors" of such not-for-profit corporations, such statutory provisions shall be deemed to apply to the trustees of corporations organized under this Act act, and wherever the office of the Secretary of State is mentioned in such an Act act, such provisions shall be deemed to refer to and designate the Director of Insurance when applied to corporations organized hereunder.

(Source: P.A. 90-583, eff. 5-29-98.)".