N.J. Admin. Code § 13:30-8.21

Current through Register Vol. 56, No. 9, May 6, 2024

Section 13:30-8.21 - Divestiture of interest in professional corporations by disqualified licensees

(a) As used in this section, the following terms shall have the following meanings unless the context indicates otherwise:

"Disqualify" means to prohibit a licensee from engaging in professional practice and from deriving income from that practice as a result of a revocation, permanent surrender, with or without prejudice, or active suspension of licensure of one year or more. As used in this section, a licensee shall not be deemed disqualified if he or she is permitted to practice dentistry in a limited fashion, is the subject of an order of suspension which is stayed or if the duration of a suspension is less than one year.

"Divest" means to relinquish interest of all shares or equity interest in a professional corporation or other permissible business format, as defined in 13:30-8.13.

"Licensee" means any person licensed by the Board to engage in the practice of dentistry.

"Professional practice" means that activity which is defined as "practicing dentistry" pursuant to 45:6-19.

(b) A licensee disqualified pursuant to Board order shall divest his or her interest in each professional corporation for which the holding of a license issued by the Board is a prerequisite. The licensee shall complete such divestiture within 90 days of the entry of the Board order and shall furnish proof of divestiture to the Board.

(c) If all shareholders of a professional corporation are disqualified pursuant to Board order, the employees of the professional corporation shall cease to engage in professional practice in the professional corporation until the professional corporation is restructured in membership and in a format authorized to engage in professional practice pursuant to 14A:17-13.

(d) Transfer of any shares or equity interest to a member of the licensee's immediate family shall not be deemed a divestiture as required in (b) above unless:

1. The immediate family member held an interest in the professional corporation prior to the licensee's disqualification; and

2. The immediate family member was actively engaged in the practice of dentistry within the professional corporation prior to the licensee's disqualification.

N.J. Admin. Code § 13:30-8.21

New Rule, R.1998 d.286, effective 6/1/1998.
See: 30 New Jersey Register 516(d), 30 New Jersey Register 2049(a).
Amended by R.2000 d.147, effective 4/3/2000.
See: 32 New Jersey Register 215(a), 32 New Jersey Register 1221(a).
Rewrote (a).
Administrative correction.
See: 32 New Jersey Register 2908(b).