Legislature(2001 - 2002)
01/22/2001 01:30 PM Senate JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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.
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