01/22/2001 01:30 PM Senate JUD

              SB 21-FINES BY THE STATE MEDICAL BOARD                                                                        
                                                                                                                                
SENATOR DONALD OLSON, sponsor of SB 21, read the following                                                                      
statement:                                                                                                                      
                                                                                                                                
     I introduced SB 21 to increase  the monetary sanction that                                                                 
     the state  medical board may  impose on a licensee upon  a                                                                 
     finding  of a  professional or  ethical  misconduct.   The                                                                 
     bill increases the maximum  penalty from the $10,000 limit                                                                 
     that is currently in statute to $25,000.                                                                                   
                                                                                                                                
     I feel the  justification for SB 21 is twofold.   First of                                                                 
     all, the  maximum sanction of  $10,000 does not provide  a                                                                 
     sufficient  monetary deterrent, given the economic  status                                                                 
     of  many  licensees.   Most  often,  the severity  of  the                                                                 
     penalty  is in no manner equivalent  to the damage caused                                                                  
     in extreme cases of misconduct.   Furthermore, the $10,000                                                                 
     limit has  not been changed since it was first  enacted 14                                                                 
     years ago.                                                                                                                 
                                                                                                                                
     A second  reason for  SB 21 is the  increasing costs  that                                                                 
     the board  is experiencing in  its caseload management  of                                                                 
     misconduct litigation and  allegations.  It is not unusual                                                                 
     for the costs of a misconduct  determination to exceed the                                                                 
     $10,000 penalty limit.   Since the activities of the board                                                                 
     are  wholly   supported  by  licensure  fees  and  fines,                                                                  
     increased  costs  of  operation  usually  translate   into                                                                 
     license fee increases.   SB 21 offers a second way to meet                                                                 
     increasing  caseload costs.   It expands the board's  cost                                                                 
     recovery  ability through  increased fines.   In practice                                                                  
     then,  the financial burden for  this regulatory activity                                                                  
     may  be  shifted  from  the  general  membership   to  the                                                                 
     wrongdoers themselves.                                                                                                     
                                                                                                                                
     Currently,  the  board has  188 cases  that  are open  for                                                                 
     potential  investigation and adjudication by the  Division                                                                 
     of  Occupational Licensing.   During  calendar year  2000,                                                                 
     130  new cases were  opened and 133  closed.  This effort                                                                  
     resulted in 35 disciplinary  actions against medical board                                                                 
     licensees.   In fiscal  year 2000, the  costs of pursuing                                                                  
     misconduct charges exceeded $160,000.                                                                                      
                                                                                                                                
MS. CATHERINE  REARDON, Director  for the  Division of Occupational                                                             
Licensing, Department of  Community and Economic Development (DCED),                                                            
said DCED and the medical  board support SB 21.  SB 21 will give the                                                            
medical  board  options  for  appropriate  sanctions  and  effective                                                            
deterrents for certain types of misconduct.                                                                                     
                                                                                                                                
SENATOR  THERRIAULT  asked  what  type  of  notice was  put  out  to                                                            
individual licensed physicians that this was being considered.                                                                  
                                                                                                                                
MS.  REARDON answered  that  a notice  was  not mailed  to  licensed                                                            
holders.   The medical board  met January 18th  and 19th.   It would                                                            
have  been generally  noticed  that the  meeting was  going to  take                                                            
place.  The meeting  was scheduled a month ago and  SB 21 was not on                                                            
the list of topics at that time.                                                                                                
                                                                                                                                
SENATOR THERRIAULT  asked for a list  of all licensed physicians  in                                                            
the Fairbanks area.                                                                                                             
                                                                                                                                
MS. REARDON agreed to furnish the list.                                                                                         
                                                                                                                                
SENATOR   THERRIAULT   moved  to   pass   SB  21   with   individual                                                            
recommendations.   There were no objections  and it was so  ordered.