CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

Introduced by Senator Wahab

February 20, 2026

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

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law establishes various healing arts boards within the Department of Consumer Affairs, including the Medical Board of California and the Dental Board of California, that license and regulate various healing arts licensees. Existing law, including the Medical Practice Act and the Dental Practice Act, deem certain violations by licensees to be unprofessional conduct subject to discipline by the licensee’s licensing board.

Existing law requires a physician and surgeon or dentist to refund to a patient any amount paid by the patient for services rendered that was subsequently paid to the physician and surgeon or dentist by a third-party payor and that constitutes a duplicate payment, as prescribed. Existing law requires that the above-described duplicate payment refund be paid, if requested by the patient, either within 30 days of that request or, if the duplicate payment has not been received, within 30 days of receipt of the duplicate payment by the physician and surgeon or dentist. Existing law requires, if the patient does not request a refund, a physician and surgeon or dentist who knows, or should have known, of the receipt of the duplicate payment to notify the patient, as prescribed, and to refund the payment within 30 days of that notification, except as specified. Existing law makes a violation of the above requirements unprofessional conduct subject to disciplinary proceedings as described above.

This bill would reduce the duration for a physician and surgeon or dentist to refund a duplicate payment following patient request or patient notification to 21 days.

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 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.