BILL NUMBER: SB 1438 CHAPTERED
BILL TEXT
CHAPTER 223
FILED WITH SECRETARY OF STATE SEPTEMBER 7, 2006
APPROVED BY GOVERNOR SEPTEMBER 7, 2006
PASSED THE SENATE AUGUST 23, 2006
PASSED THE ASSEMBLY AUGUST 21, 2006
AMENDED IN ASSEMBLY AUGUST 17, 2006
AMENDED IN ASSEMBLY AUGUST 7, 2006
AMENDED IN ASSEMBLY JUNE 13, 2006
INTRODUCED BY Senator Figueroa
FEBRUARY 22, 2006
An act to amend Sections 125.3, 801, 801.1, 802, 802.1, 803,
803.1, 803.5, 804, 805, 805.2, 2027, and 2435 of, to add Section
801.01 to, to repeal Sections 802.3, 803.2, 803.3, and 804.5 of, and
to repeal and add Section 2026 of, the Business and Professions Code,
and to amend Section 12529.6 of the Government Code, relating to the
healing arts.
LEGISLATIVE COUNSEL'S DIGEST
SB 1438, Figueroa Healing arts: reporting requirements.
Existing law creates the Medical Board of California (Medical
Board) and the Osteopathic Medical Board of California that issue a
physician and surgeon's certificate to qualified applicants and
regulate their practice. Existing law also creates the California
Board of Podiatric Medicine (Podiatric Board) within the jurisdiction
of the Medical Board, and the Division of Licensing of the Medical
Board issues a certificate to practice podiatric medicine to
qualified applicants while the Podiatric Board regulates their
practice. Existing law requires an insurer providing professional
liability insurance to a physician and surgeon and a governmental
agency that self-insures a physician and surgeon or, if uninsured,
the physician and surgeon himself or herself, to report information
concerning settlements, arbitration awards, and judgments in
malpractice actions to the practitioner's licensing board. Under
existing law, those parties and a podiatrist are also required to
report this information to the practitioner's licensing board if the
settlement, arbitration award, or judgment is entered against, or
paid by, the practitioner's employer, as defined.
This bill would recast these reporting provisions and would
specify their application to actions or claims involving a
podiatrist, requiring that they be reported to the Podiatric Board.
Existing law provides for study of the peer review process of
healing arts practitioners by an independent entity, to be completed
by July 31, 2007.
This bill would classify the case files and other information
obtained by the independent entity as confidential, and would provide
that information obtained or generated by the independent entity is
not subject to discovery or admissible in a court proceeding. The
bill would require the independent entity and its employees and
contractors to assert these protections. The bill would also require
the independent entity to notify the peer review body of actions
taken by that body that the entity determines should have been
reported to the appropriate licensing agency. The bill would extend
the completion date of the study by the independent entity to July
31, 2008.
Existing law prohibits the exclusion of relevant evidence in a
criminal proceeding except as provided by a statute enacted by a 2/3
vote of the Legislature.
Because this bill would provide that certain information is not
admissible in a court proceeding, it requires a 2/3 vote of the
membership of each house of the Legislature.
Existing law requires, to the extent funds are available, the
Little Hoover Commission to study the role of public disclosure of
physician misconduct.
This bill would instead require the California Research Bureau to
conduct the study, and would specify additional requirements for that
study.
Existing law requires the Medical Board of California to post
certain information on the Internet, including misdemeanor
convictions that are substantially related to the qualifications,
functions, or duties of the physician and surgeon. The posting
requirement does not become operative until legislation is enacted
that defines or identifies misdemeanor convictions that are
substantially related.
This bill would delete that contingency, and would require the
board to post a misdemeanor conviction that results in a disciplinary
action or an accusation that is not subsequently withdrawn or
dismissed.
Existing law requires the Joint Legislative Audit Committee to
select an independent entity to conduct a review of the Medical Board'
s financial status by January 1, 2007.
This bill would instead require the Bureau of State Audits to
conduct the review by July 1, 2007.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature, through a request
in 2008 to the Joint Legislative Audit Committee, and thereafter
every two years prior to the inoperative date set forth in Section
2020 of the Business and Professions Code, that the Bureau of State
Audits conduct a thorough performance audit of the Medical Board of
California to evaluate the effectiveness and efficiency of the
programs, and make recommendations regarding the continuation of its
programs and any changes or reforms required to assure consumer
protection through effective licensing and discipline of physicians
and surgeons. The audits shall be completed in time to allow for the
recommendations to be addressed in the legislation to extend or
delete the repeal date of that section, if that legislation is
introduced. The board and its staff shall cooperate with the audit,
and the board shall provide data, information, and case files as
requested by the auditor to perform all of its duties. The provision
of confidential data, information, and case files by the board to the
auditor shall not constitute a waiver of any exemption from
disclosure or discovery or of any confidentiality protection or
privilege otherwise provided by law that is applicable to the data,
information, or case files.
SEC. 2. Section 125.3 of the Business and Professions Code, as
amended by Section 2 of Chapter 674 of the Statutes of 2005, is
amended to read:
125.3. (a) Except as otherwise provided by law, in any order
issued in resolution of a disciplinary proceeding before any board
within the department or before the Osteopathic Medical Board, upon
request of the entity bringing the proceeding, the administrative law
judge may direct a licentiate found to have committed a violation or
violations of the licensing act to pay a sum not to exceed the
reasonable costs of the investigation and enforcement of the case.
(b) In the case of a disciplined licentiate that is a corporation
or a partnership, the order may be made against the licensed
corporate entity or licensed partnership.
(c) A certified copy of the actual costs, or a good faith estimate
of costs where actual costs are not available, signed by the entity
bringing the proceeding or its designated representative shall be
prima facie evidence of reasonable costs of investigation and
prosecution of the case. The costs shall include the amount of
investigative and enforcement costs up to the date of the hearing,
including, but not limited to, charges imposed by the Attorney
General.
(d) The administrative law judge shall make a proposed finding of
the amount of reasonable costs of investigation and prosecution of
the case when requested pursuant to subdivision (a). The finding of
the administrative law judge with regard to costs shall not be
reviewable by the board to increase the cost award. The board may
reduce or eliminate the cost award, or remand to the administrative
law judge if the proposed decision fails to make a finding on costs
requested pursuant to subdivision (a).
(e) If an order for recovery of costs is made and timely payment
is not made as directed in the board's decision, the board may
enforce the order for repayment in any appropriate court. This right
of enforcement shall be in addition to any other rights the board may
have as to any licentiate to pay costs.
(f) In any action for recovery of costs, proof of the board's
decision shall be conclusive proof of the validity of the order of
payment and the terms for payment.
(g) (1) Except as provided in paragraph (2), the board shall not
renew or reinstate the license of any licentiate who has failed to
pay all of the costs ordered under this section.
(2) Notwithstanding paragraph (1), the board may, in its
discretion, conditionally renew or reinstate for a maximum of one
year the license of any licentiate who demonstrates financial
hardship and who enters into a formal agreement with the board to
reimburse the board within that one-year period for the unpaid costs.
(h) All costs recovered under this section shall be considered a
reimbursement for costs incurred and shall be deposited in the fund
of the board recovering the costs to be available upon appropriation
by the Legislature.
(i) Nothing in this section shall preclude a board from including
the recovery of the costs of investigation and enforcement of a case
in any stipulated settlement.
(j) This section does not apply to any board if a specific
statutory provision in that board's licensing act provides for
recovery of costs in an administrative disciplinary proceeding.
(k) Notwithstanding the provisions of this section, the Medical
Board of California shall not request nor obtain from a physician and
surgeon, investigation and prosecution costs for a disciplinary
proceeding against the licentiate. The board shall ensure that this
subdivision is revenue neutral with regard to it and that any loss of
revenue or increase in costs resulting from this subdivision is
offset by an increase in the amount of the initial license fee and
the biennial renewal fee, as provided in subdivision (e) of Section
2435.
SEC. 3. Section 801 of the Business and Professions Code is
amended to read:
801. (a) Except as provided in Section 801.01 and subdivisions
(b), (c), and (d) of this section, every insurer providing
professional liability insurance to a person who holds a license,
certificate, or similar authority from or under any agency mentioned
in subdivision (a) of Section 800 shall send a complete report to
that agency as to any settlement or arbitration award over three
thousand dollars ($3,000) of a claim or action for damages for death
or personal injury caused by that person's negligence, error, or
omission in practice, or by his or her rendering of unauthorized
professional services. The report shall be sent within 30 days after
the written settlement agreement has been reduced to writing and
signed by all parties thereto or within 30 days after service of the
arbitration award on the parties.
(b) Every insurer providing professional liability insurance to a
person licensed pursuant to Chapter 13 (commencing with Section 4980)
or Chapter 14 (commencing with Section 4990) shall send a complete
report to the Board of Behavioral Science Examiners as to any
settlement or arbitration award over ten thousand dollars ($10,000)
of a claim or action for damages for death or personal injury caused
by that person's negligence, error, or omission in practice, or by
his or her rendering of unauthorized professional services. The
report shall be sent within 30 days after the written settlement
agreement has been reduced to writing and signed by all parties
thereto or within 30 days after service of the arbitration award on
the parties.
(c) Every insurer providing professional liability insurance to a
dentist licensed pursuant to Chapter 4 (commencing with Section 1600)
shall send a complete report to the Dental Board of California as to
any settlement or arbitration award over ten thousand dollars
($10,000) of a claim or action for damages for death or personal
injury caused by that person's negligence, error, or omission in
practice, or rendering of unauthorized professional services. The
report shall be sent within 30 days after the written settlement
agreement has been reduced to writing and signed by all parties
thereto or within 30 days after service of the arbitration award on
the parties.
(d) Every insurer providing liability insurance to a veterinarian
licensed pursuant to Chapter 11 (commencing with Section 4800) shall
send a complete report to the Veterinary Medical Board of any
settlement or arbitration award over ten thousand dollars ($10,000)
of a claim or action for damages for death or injury caused by that
person's negligence, error, or omission in practice, or rendering of
unauthorized professional service. The report shall be sent within 30
days after the written settlement agreement has been reduced to
writing and signed by all parties thereto or within 30 days after
service of the arbitration award on the parties.
(e) The insurer shall notify the claimant, or if the claimant is
represented by counsel, the insurer shall notify the claimant's
attorney, that the report required by subdivision (a), (b), or (c)
has been sent to the agency. If the attorney has not received this
notice within 45 days after the settlement was reduced to writing and
signed by all of the parties, the arbitration award was served on
the parties, or the date of entry of the civil judgment, the attorney
shall make the report to the agency.
(f) Notwithstanding any other provision of law, no insurer shall
enter into a settlement without the written consent of the insured,
except that this prohibition shall not void any settlement entered
into without that written consent. The requirement of written consent
shall only be waived by both the insured and the insurer. This
section shall only apply to a settlement on a policy of insurance
executed or renewed on or after January 1, 1971.
SEC. 4. Section 801.01 is added to the Business and Professions
Code, to read:
801.01. (a) A complete report shall be sent to the Medical Board
of California, the Osteopathic Medical Board, or the California Board
of Podiatric Medicine, with respect to a licensee of the board as to
the following:
(1) A settlement over thirty thousand dollars ($30,000) or
arbitration award of any amount or a civil judgment of any amount,
whether or not vacated by a settlement after entry of the judgment,
that was not reversed on appeal, of a claim or action for damages for
death or personal injury caused by the licensee's alleged
negligence, error, or omission in practice, or by his or her
rendering of unauthorized professional services.
(2) A settlement over thirty thousand dollars ($30,000) if it is
based on the licensee's alleged negligence, error, or omission in
practice, or by the licensee's rendering of unauthorized professional
services, and a party to the settlement is a corporation, medical
group, partnership, or other corporate entity in which the licensee
has an ownership interest or that employs or contracts with the
licensee.
(b) The report shall be sent by the following:
(1) The insurer providing professional liability insurance to the
licensee.
(2) The licensee, or his or her counsel, if the licensee does not
possess professional liability insurance.
(3) A state or local governmental agency that self-insures the
licensee.
(c) The entity, person, or licensee obligated to report pursuant
to subdivision (b) shall send the complete report if the judgment,
settlement agreement, or arbitration award is entered against or paid
by the employer of the licensee and not entered against or paid by
the licensee. "Employer," as used in this paragraph, means a
professional corporation, a group practice, a health care facility or
clinic licensed or exempt from licensure under the Health and Safety
Code, a licensed health care service plan, a medical care
foundation, an educational institution, a professional institution, a
professional school or college, a general law corporation, a public
entity, or a nonprofit organization that employs, retains, or
contracts with a licensee referred to in this section. Nothing in
this paragraph shall be construed to authorize the employment of, or
contracting with, any licensee in violation of Section 2400.
(d) The report shall be sent to the Medical Board of California,
the Osteopathic Medical Board of California, or the California Board
of Podiatric Medicine, as appropriate, within 30 days after the
written settlement agreement has been reduced to writing and signed
by all parties thereto, within 30 days after service of the
arbitration award on the parties, or within 30 days after the date of
entry of the civil judgment.
(e) If an insurer is required under subdivision (b) to send the
report, the insurer shall notify the claimant, or if the claimant is
represented by counsel, the claimant's counsel, that the insurer has
sent the report to the Medical Board of California, the Osteopathic
Medical Board of California, or the California Board of Podiatric
Medicine. If the claimant, or his or her counsel, has not received
this notice within 45 days after the settlement was reduced to
writing and signed by all of the parties or the arbitration award was
served on the parties or the date of entry of the civil judgment,
the claimant or the claimant's counsel shall make the report to the
appropriate board.
(f) If the licensee or his or her counsel is required under
subdivision (b) to send the report, the licensee or his or her
counsel shall send a copy of the report to the claimant or to his or
her counsel if he or she is represented by counsel. If the claimant
or his or her counsel has not received a copy of the report within 45
days after the settlement was reduced to writing and signed by all
of the parties or the arbitration award was served on the parties or
the date of entry of the civil judgment, the claimant or the claimant'
s counsel shall make the report to the appropriate board.
(g) Failure of the licensee or claimant, or counsel representing
the licensee or claimant, to comply with subdivision (f) is a public
offense punishable by a fine of not less than fifty dollars ($50) and
not more than five hundred dollars ($500). A knowing and intentional
failure to comply with subdivision (f) or a conspiracy or collusion
not to comply with subdivision (f), or to hinder or impede any other
person in the compliance, is a public offense punishable by a fine of
not less than five thousand dollars ($5,000) and not more than fifty
thousand dollars ($50,000).
(h) (1) The Medical Board of California, the Osteopathic Medical
Board of California, and the California Board of Podiatric Medicine
may develop a prescribed form for the report.
(2) The report shall be deemed complete only if it includes the
following information:
(A) The name and last known business and residential addresses of
every plaintiff or claimant involved in the matter, whether or not
the person received an award under the settlement, arbitration, or
judgment.
(B) The name and last known business and residential address of
every physician and surgeon or doctor of podiatric medicine who was
alleged to have acted improperly, whether or not that person was a
named defendant in the action and whether or not that person was
required to pay any damages pursuant to the settlement, arbitration
award, or judgment.
(C) The name, address, and principal place of business of every
insurer providing professional liability insurance to any person
described in subparagraph (B), and the insured's policy number.
(D) The name of the court in which the action or any part of the
action was filed, and the date of filing and case number of each
action.
(E) A brief description or summary of the facts of each claim,
charge, or allegation, including the date of occurrence.
(F) The name and last known business address of each attorney who
represented a party in the settlement, arbitration, or civil action,
including the name of the client he or she represented.
(G) The amount of the judgment and the date of its entry; the
amount of the arbitration award, the date of its service on the
parties, and a copy of the award document; or the amount of the
settlement and the date it was reduced to writing and signed by all
parties. If an otherwise reportable settlement is entered into after
a reportable judgment or arbitration award is issued, the report
shall include both the settlement and the judgment or award.
(H) The specialty or subspecialty of the physician and surgeon or
the doctor of podiatric medicine who was the subject of the claim or
action.
(I) Any other information the Medical Board of California, the
Osteopathic Medical Board of California, or the California Board of
Podiatric Medicine may, by regulation, require.
(3) Every professional liability insurer, self-insured
governmental agency, or licensee or his or her counsel that makes a
report under this section and has received a copy of any written or
electronic patient medical or hospital records prepared by the
treating physician and surgeon or podiatrist, or the staff of the
treating physician and surgeon, podiatrist, or hospital, describing
the medical condition, history, care, or treatment of the person
whose death or injury is the subject of the report, or a copy of any
deposition in the matter that discusses the care, treatment, or
medical condition of the person, shall include with the report,
copies of the records and depositions, subject to reasonable costs to
be paid by the Medical Board of California, the Osteopathic Medical
Board of California, or the California Board of Podiatric Medicine.
If confidentiality is required by court order and, as a result, the
reporter is unable to provide the records and depositions,
documentation to that effect shall accompany the original report. The
applicable board may, upon prior notification of the parties to the
action, petition the appropriate court for modification of any
protective order to permit disclosure to the board. A professional
liability insurer, self-insured governmental agency, or licensee or
his or her counsel shall maintain the records and depositions
referred to in this paragraph for at least one year from the date of
filing of the report required by this section.
(i) If the board, within 60 days of its receipt of a report filed
under this section, notifies a person named in the report, that
person shall maintain for the period of three years from the date of
filing of the report any records he or she has as to the matter in
question and shall make those records available upon request to the
board to which the report was sent.
(j) Notwithstanding any other provision of law, no insurer shall
enter into a settlement without the written consent of the insured,
except that this prohibition shall not void any settlement entered
into without that written consent. The requirement of written consent
shall only be waived by both the insured and the insurer.
SEC. 5. Section 801.1 of the Business and Professions Code is
amended to read:
801.1. (a) Every state or local governmental agency that self
insures a person who holds a license, certificate or similar
authority from or under any agency mentioned in subdivision (a) of
Section 800 (except a person licensed pursuant to Chapter 3
(commencing with Section 1200) or Chapter 5 (commencing with Section
2000) or the Osteopathic Initiative Act) shall send a complete report
to that agency as to any settlement or arbitration award over three
thousand dollars ($3,000) of a claim or action for damages for death
or personal injury caused by that person's negligence, error or
omission in practice, or rendering of unauthorized professional
services. The report shall be sent within 30 days after the written
settlement agreement has been reduced to writing and signed by all
parties thereto or within 30 days after service of the arbitration
award on the parties.
(b) Every state or local governmental agency that self-insures a
person licensed pursuant to Chapter 13 (commencing with Section 4980)
or Chapter 14 (commencing with Section 4990) shall send a complete
report to the Board of Behavioral Science Examiners as to any
settlement or arbitration award over ten thousand dollars ($10,000)
of a claim or action for damages for death or personal injury caused
by that person's negligence, error, or omission in practice, or
rendering of unauthorized professional services. The report shall be
sent within 30 days after the written settlement agreement has been
reduced to writing and signed by all parties thereto or within 30
days after service of the arbitration award on the parties.
SEC. 6. Section 802 of the Business and Professions Code is
amended to read:
802. (a) Every settlement, judgment, or arbitration award over
three thousand dollars ($3,000) of a claim or action for damages for
death or personal injury caused by negligence, error or omission in
practice, or by the unauthorized rendering of professional services,
by a person who holds a license, certificate, or other similar
authority from an agency mentioned in subdivision (a) of Section 800
(except a person licensed pursuant to Chapter 3 (commencing with
Section 1200) or Chapter 5 (commencing with Section 2000) or the
Osteopathic Initiative Act) who does not possess professional
liability insurance as to that claim shall, within 30 days after the
written settlement agreement has been reduced to writing and signed
by all the parties thereto or 30 days after service of the judgment
or arbitration award on the parties, be reported to the agency that
issued the license, certificate, or similar authority. A complete
report shall be made by appropriate means by the person or his or her
counsel, with a copy of the communication to be sent to the claimant
through his or her counsel if the person is so represented, or
directly if he or she is not. If, within 45 days of the conclusion of
the written settlement agreement or service of the judgment or
arbitration award on the parties, counsel for the claimant (or if the
claimant is not represented by counsel, the claimant himself or
herself) has not received a copy of the report, he or she shall
himself or herself make the complete report. Failure of the licensee
or claimant (or, if represented by counsel, their counsel) to comply
with this section is a public offense punishable by a fine of not
less than fifty dollars ($50) or more than five hundred dollars
($500). Knowing and intentional failure to comply with this section
or conspiracy or collusion not to comply with this section, or to
hinder or impede any other person in the compliance, is a public
offense punishable by a fine of not less than five thousand dollars
($5,000) nor more than fifty thousand dollars ($50,000).
(b) Every settlement, judgment, or arbitration award over ten
thousand dollars ($10,000) of a claim or action for damages for death
or personal injury caused by negligence, error, or omission in
practice, or by the unauthorized rendering of professional services,
by a marriage and family therapist or clinical social worker licensed
pursuant to Chapter 13 (commencing with Section 4980) or Chapter 14
(commencing with Section 4990) who does not possess professional
liability insurance as to that claim shall within 30 days after the
written settlement agreement has been reduced to writing and signed
by all the parties thereto or 30 days after service of the judgment
or arbitration award on the parties be reported to the agency that
issued the license, certificate, or similar authority. A complete
report shall be made by appropriate means by the person or his or her
counsel, with a copy of the communication to be sent to the claimant
through his or her counsel if he or she is so represented, or
directly if he or she is not. If, within 45 days of the conclusion of
the written settlement agreement or service of the judgment or
arbitration award on the parties, counsel for the claimant (or if he
or she is not represented by counsel, the claimant himself or
herself) has not received a copy of the report, he or she shall
himself or herself make a complete report. Failure of the marriage
and family therapist or clinical social worker or claimant (or, if
represented by counsel, their counsel) to comply with this section is
a public offense punishable by a fine of not less than fifty dollars
($50) nor more than five hundred dollars ($500). Knowing and
intentional failure to comply with this section, or conspiracy or
collusion not to comply with this section or to hinder or impede any
other person in that compliance, is a public offense punishable by a
fine of not less than five thousand dollars ($5,000) nor more than
fifty thousand dollars ($50,000).
SEC. 7. Section 802.1 of the Business and Professions Code is
amended to read:
802.1. (a) (1) A physician and surgeon, osteopathic physician and
surgeon, and a doctor of podiatric medicine shall report either of
the following to the entity that issued his or her license:
(A) The bringing of an indictment or information charging a felony
against the licensee.
(B) The conviction of the licensee, including any verdict of
guilty, or plea of guilty or no contest, of any felony or
misdemeanor.
(2) The report required by this subdivision shall be made in
writing within 30 days of the date of the bringing of the indictment
or information or of the conviction.
(b) Failure to make a report required by this section shall be a
public offense punishable by a fine not to exceed five thousand
dollars ($5,000).
SEC. 8. Section 802.3 of the Business and Professions Code is
repealed.
SEC. 9. Section 803 of the Business and Professions Code is
amended to read:
803. (a) Except as provided in subdivision (b), within 10 days
after a judgment by a court of this state that a person who holds a
license, certificate, or other similar authority from the Board of
Behavioral Science Examiners or from an agency mentioned in
subdivision (a) of Section 800 (except a person licensed pursuant to
Chapter 3 (commencing with Section 1200)) has committed a crime, or
is liable for any death or personal injury resulting in a judgment
for an amount in excess of thirty thousand dollars ($30,000) caused
by his or her negligence, error or omission in practice, or his or
her rendering unauthorized professional services, the clerk of the
court that rendered the judgment shall report that fact to the agency
that issued the license, certificate, or other similar authority.
(b) For purposes of a physician and surgeon, osteopathic physician
and surgeon, or doctor of podiatric medicine, who is liable for any
death or personal injury resulting in a judgment of any amount caused
by his or her negligence, error or omission in practice, or his or
her rendering unauthorized professional services, the clerk of the
court that rendered the judgment shall report that fact to the agency
that issued the license.
SEC. 10. Section 803.1 of the Business and Professions Code is
amended to read:
803.1. (a) Notwithstanding any other provision of law, the
Medical Board of California, the Osteopathic Medical Board of
California, and the California Board of Podiatric Medicine shall
disclose to an inquiring member of the public information regarding
any enforcement actions taken against a licensee by either board or
by another state or jurisdiction, including all of the following:
(1) Temporary restraining orders issued.
(2) Interim suspension orders issued.
(3) Revocations, suspensions, probations, or limitations on
practice ordered by the board, including those made part of a
probationary order or stipulated agreement.
(4) Public letters of reprimand issued.
(5) Infractions, citations, or fines imposed.
(b) Notwithstanding any other provision of law, in addition to the
information provided in subdivision (a), the Medical Board of
California, the Osteopathic Medical Board of California, and the
California Board of Podiatric Medicine shall disclose to an inquiring
member of the public all of the following:
(1) Civil judgments in any amount, whether or not vacated by a
settlement after entry of the judgment, that were not reversed on
appeal and arbitration awards in any amount of a claim or action for
damages for death or personal injury caused by the physician and
surgeon's negligence, error, or omission in practice, or by his or
her rendering of unauthorized professional services.
(2) (A) All settlements in the possession, custody, or control of
the board shall be disclosed for a licensee in the low-risk category
if there are three or more settlements for that licensee within the
last 10 years, except for settlements by a licensee regardless of the
amount paid where (i) the settlement is made as a part of the
settlement of a class claim, (ii) the licensee paid in settlement of
the class claim the same amount as the other licensees in the same
class or similarly situated licensees in the same class, and (iii)
the settlement was paid in the context of a case where the complaint
that alleged class liability on behalf of the licensee also alleged a
products liability class action cause of action. All settlements in
the possession, custody, or control of the board shall be disclosed
for a licensee in the high-risk category if there are four or more
settlements for that licensee within the last 10 years except for
settlements by a licensee regardless of the amount paid where (i) the
settlement is made as a part of the settlement of a class claim,
(ii) the licensee paid in settlement of the class claim the same
amount as the other licensees in the same class or similarly situated
licensees in the same class, and (iii) the settlement was paid in
the context of a case where the complaint that alleged class
liability on behalf of the licensee also alleged a products liability
class action cause of action. Classification of a licensee in either
a "high-risk category" or a "low-risk category" depends upon the
specialty or subspecialty practiced by the licensee and the
designation assigned to that specialty or subspecialty by the Medical
Board of California, as described in subdivision (f). For the
purposes of this paragraph, "settlement" means a settlement of an
action described in paragraph (1) entered into by the licensee on or
after January 1, 2003, in an amount of thirty thousand dollars
($30,000) or more.
(B) The board shall not disclose the actual dollar amount of a
settlement but shall put the number and amount of the settlement in
context by doing the following:
(i) Comparing the settlement amount to the experience of other
licensees within the same specialty or subspecialty, indicating if it
is below average, average, or above average for the most recent
10-year period.
(ii) Reporting the number of years the licensee has been in
practice.
(iii) Reporting the total number of licensees in that specialty or
subspecialty, the number of those who have entered into a settlement
agreement, and the percentage that number represents of the total
number of licensees in the specialty or subspecialty.
(3) Current American Board of Medical Specialty certification or
board equivalent as certified by the Medical Board of California, the
Osteopathic Medical Board of California, or the California Board of
Podiatric Medicine.
(4) Approved postgraduate training.
(5) Status of the license of a licensee. By January 1, 2004, the
Medical Board of California, the Osteopathic Medical Board of
California, and the California Board of Podiatric Medicine shall
adopt regulations defining the status of a licensee. The board shall
employ this definition when disclosing the status of a licensee
pursuant to Section 2027.
(6) Any summaries of hospital disciplinary actions that result in
the termination or revocation of a licensee's staff privileges for
medical disciplinary cause or reason.
(c) Notwithstanding any other provision of law, the Medical Board
of California, the Osteopathic Medical Board of California, and the
California Board of Podiatric Medicine shall disclose to an inquiring
member of the public information received regarding felony
convictions of a physician and surgeon or doctor of podiatric
medicine.
(d) The Medical Board of California, the Osteopathic Medical Board
of California, and the California Board of Podiatric Medicine may
formulate appropriate disclaimers or explanatory statements to be
included with any information released, and may by regulation
establish categories of information that need not be disclosed to an
inquiring member of the public because that information is unreliable
or not sufficiently related to the licensee's professional practice.
The Medical Board of California, the Osteopathic Medical Board of
California, and the California Board of Podiatric Medicine shall
include the following statement when disclosing information
concerning a settlement:
"Some studies have shown that there is no significant correlation
between malpractice history and a doctor's competence. At the same
time, the State of California believes that consumers should have
access to malpractice information. In these profiles, the State of
California has given you information about both the malpractice
settlement history for the doctor's specialty and the doctor's
history of settlement payments only if in the last 10 years, the
doctor, if in a low-risk specialty, has three or more settlements or
the doctor, if in a high-risk specialty, has four or more
settlements. The State of California has excluded some class action
lawsuits because those cases are commonly related to systems issues
such as product liability, rather than questions of individual
professional competence and because they are brought on a class basis
where the economic incentive for settlement is great. The State of
California has placed payment amounts into three statistical
categories: below average, average, and above average compared to
others in the doctor's specialty. To make the best health care
decisions, you should view this information in perspective. You could
miss an opportunity for high-quality care by selecting a doctor
based solely on malpractice history.
When considering malpractice data, please keep in mind:
Malpractice histories tend to vary by specialty. Some specialties
are more likely than others to be the subject of litigation. This
report compares doctors only to the members of their specialty, not
to all doctors, in order to make an individual doctor's history more
meaningful.
This report reflects data only for settlements made on or after
January 1, 2003. Moreover, it includes information concerning those
settlements for a 10-year period only. Therefore, you should know
that a doctor may have made settlements in the 10 years immediately
preceding January 1, 2003, that are not included in this report.
After January 1, 2013, for doctors practicing less than 10 years, the
data covers their total years of practice. You should take into
account the effective date of settlement disclosure as well as how
long the doctor has been in practice when considering malpractice
averages.
The incident causing the malpractice claim may have happened years
before a payment is finally made. Sometimes, it takes a long time
for a malpractice lawsuit to settle. Some doctors work primarily with
high-risk patients. These doctors may have malpractice settlement
histories that are higher than average because they specialize in
cases or patients who are at very high risk for problems.
Settlement of a claim may occur for a variety of reasons that do
not necessarily reflect negatively on the professional competence or
conduct of the doctor. A payment in settlement of a medical
malpractice action or claim should not be construed as creating a
presumption that medical malpractice has occurred.
You may wish to discuss information in this report and the general
issue of malpractice with your doctor."
(e) The Medical Board of California, the Osteopathic Medical Board
of California, and the California Board of Podiatric Medicine shall,
by regulation, develop standard terminology that accurately
describes the different types of disciplinary filings and actions to
take against a licensee as described in paragraphs (1) to (5),
inclusive, of subdivision (a). In providing the public with
information about a licensee via the Internet pursuant to Section
2027, the Medical Board of California, the Osteopathic Medical Board
of California, and the California Board of Podiatric Medicine shall
not use the terms "enforcement," "discipline," or similar language
implying a sanction unless the physician and surgeon has been the
subject of one of the actions described in paragraphs (1) to (5),
inclusive, of subdivision (a).
(f) The Medical Board of California shall adopt regulations no
later than July 1, 2003, designating each specialty and subspecialty
practice area as either high risk or low risk. In promulgating these
regulations, the board shall consult with commercial underwriters of
medical malpractice insurance companies, health care systems that
self-insure physicians and surgeons, and representatives of the
California medical specialty societies. The board shall utilize the
carriers' statewide data to establish the two risk categories and the
averages required by subparagraph (B) of paragraph (2) of
subdivision (b). Prior to issuing regulations, the board shall
convene public meetings with the medical malpractice carriers,
self-insurers, and specialty representatives.
(g) The Medical Board of California, the Osteopathic Medical Board
of California, and the California Board of Podiatric Medicine shall
provide each licensee with a copy of the text of any proposed public
disclosure authorized by this section prior to release of the
disclosure to the public. The licensee shall have 10 working days
from the date the board provides the copy of the proposed public
disclosure to propose corrections of factual inaccuracies. Nothing in
this section shall prevent the board from disclosing information to
the public prior to the expiration of the 10-day period.
(h) Pursuant to subparagraph (A) of paragraph (2) of subdivision
(b), the specialty or subspecialty information required by this
section shall group physicians by specialty board recognized pursuant
to paragraph (5) of subdivision (h) of Section 651 unless a
different grouping would be more valid and the board, in its
statement of reasons for its regulations, explains why the validity
of the grouping would be more valid.
SEC. 11. Section 803.2 of the Business and Professions Code is
repealed.
SEC. 12. Section 803.3 of the Business and Professions Code is
repealed.
SEC. 13. Section 803.5 of the Business and Professions Code is
amended to read:
803.5. (a) The district attorney, city attorney, or other
prosecuting agency shall notify the Medical Board of California, the
Osteopathic Medical Board of California, the California Board of
Podiatric Medicine, the State Board of Chiropractic Examiners, or
other appropriate allied health board, and the clerk of the court in
which the charges have been filed, of any filings against a licensee
of that board charging a felony immediately upon obtaining
information that the defendant is a licensee of the board. The notice
shall identify the licensee and describe the crimes charged and the
facts alleged. The prosecuting agency shall also notify the clerk of
the court in which the action is pending that the defendant is a
licensee, and the clerk shall record prominently in the file that the
defendant holds a license from one of the boards described above.
(b) The clerk of the court in which a licensee of one of the
boards is convicted of a crime shall, within 48 hours after the
conviction, transmit a certified copy of the record of conviction to
the applicable board.
SEC. 14. Section 804 of the Business and Professions Code is
amended to read:
804. (a) Any agency to whom reports are to be sent under Section
801, 801.1, 802, or 803, may develop a prescribed form for the making
of the reports, usage of which it may, but need not, by regulation,
require in all cases.
(b) A report required to be made by Sections 801, 801.1, or 802
shall be deemed complete only if it includes the following
information: (1) the name and last known business and residential
addresses of every plaintiff or claimant involved in the matter,
whether or not each plaintiff or claimant recovered anything; (2) the
name and last known business and residential addresses of every
physician or provider of health care services who was claimed or
alleged to have acted improperly, whether or not that person was a
named defendant and whether or not any recovery or judgment was had
against that person; (3) the name, address, and principal place of
business of every insurer providing professional liability insurance
as to any person named in (2), and the insured's policy number; (4)
the name of the court in which the action or any part of the action
was filed along with the date of filing and docket number of each
action; (5) a brief description or summary of the facts upon which
each claim, charge or judgment rested including the date of
occurrence; (6) the names and last known business and residential
addresses of every person who acted as counsel for any party in the
litigation or negotiations, along with an identification of the party
whom said person represented; (7) the date and amount of final
judgment or settlement; and (8) any other information the agency to
whom the reports are to be sent may, by regulation, require.
(c) Every person named in the report, who is notified by the board
within 60 days of the filing of the report, shall maintain for the
period of three years from the filing of the report any records he or
she has as to the matter in question and shall make those available
upon request to the agency with which the report was filed.
SEC. 15. Section 804.5 of the Business and Professions Code is
repealed.
SEC. 16. Section 805 of the Business and Professions Code is
amended to read:
805. (a) As used in this section, the following terms have the
following definitions:
(1) "Peer review body" includes:
(A) A medical or professional staff of any health care facility or
clinic licensed under Division 2 (commencing with Section 1200) of
the Health and Safety Code or of a facility certified to participate
in the federal Medicare Program as an ambulatory surgical center.
(B) A health care service plan registered under Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code or a disability insurer that contracts with licentiates to
provide services at alternative rates of payment pursuant to Section
10133 of the Insurance Code.
(C) Any medical, psychological, marriage and family therapy,
social work, dental, or podiatric professional society having as
members at least 25 percent of the eligible licentiates in the area
in which it functions (which must include at least one county), which
is not organized for profit and which has been determined to be
exempt from taxes pursuant to Section 23701 of the Revenue and
Taxation Code.
(D) A committee organized by any entity consisting of or employing
more than 25 licentiates of the same class that functions for the
purpose of reviewing the quality of professional care provided by
members or employees of that entity.
(2) "Licentiate" means a physician and surgeon, doctor of
podiatric medicine, clinical psychologist, marriage and family
therapist, clinical social worker, or dentist. "Licentiate" also
includes a person authorized to practice medicine pursuant to Section
2113.
(3) "Agency" means the relevant state licensing agency having
regulatory jurisdiction over the licentiates listed in paragraph (2).
(4) "Staff privileges" means any arrangement under which a
licentiate is allowed to practice in or provide care for patients in
a health facility. Those arrangements shall include, but are not
limited to, full staff privileges, active staff privileges, limited
staff privileges, auxiliary staff privileges, provisional staff
privileges, temporary staff privileges, courtesy staff privileges,
locum tenens arrangements, and contractual arrangements to provide
professional services, including, but not limited to, arrangements to
provide outpatient services.
(5) "Denial or termination of staff privileges, membership, or
employment" includes failure or refusal to renew a contract or to
renew, extend, or reestablish any staff privileges, if the action is
based on medical disciplinary cause or reason.
(6) "Medical disciplinary cause or reason" means that aspect of a
licentiate's competence or professional conduct that is reasonably
likely to be detrimental to patient safety or to the delivery of
patient care.
(7) "805 report" means the written report required under
subdivision (b).
(b) The chief of staff of a medical or professional staff or other
chief executive officer, medical director, or administrator of any
peer review body and the chief executive officer or administrator of
any licensed health care facility or clinic shall file an 805 report
with the relevant agency within 15 days after the effective date of
any of the following that occur as a result of an action of a peer
review body:
(1) A licentiate's application for staff privileges or membership
is denied or rejected for a medical disciplinary cause or reason.
(2) A licentiate's membership, staff privileges, or employment is
terminated or revoked for a medical disciplinary cause or reason.
(3) Restrictions are imposed, or voluntarily accepted, on staff
privileges, membership, or employment for a cumulative total of 30
days or more for any 12-month period, for a medical disciplinary
cause or reason.
(c) The chief of staff of a medical or professional staff or other
chief executive officer, medical director, or administrator of any
peer review body and the chief executive officer or administrator of
any licensed health care facility or clinic shall file an 805 report
with the relevant agency within 15 days after any of the following
occur after notice of either an impending investigation or the denial
or rejection of the application for a medical disciplinary cause or
reason:
(1) Resignation or leave of absence from membership, staff, or
employment.
(2) The withdrawal or abandonment of a licentiate's application
for staff privileges or membership.
(3) The request for renewal of those privileges or membership is
withdrawn or abandoned.
(d) For purposes of filing an 805 report, the signature of at
least one of the individuals indicated in subdivision (b) or (c) on
the completed form shall constitute compliance with the requirement
to file the report.
(e) An 805 report shall also be filed within 15 days following the
imposition of summary suspension of staff privileges, membership, or
employment, if the summary suspension remains in effect for a period
in excess of 14 days.
(f) A copy of the 805 report, and a notice advising the licentiate
of his or her right to submit additional statements or other
information pursuant to Section 800, shall be sent by the peer review
body to the licentiate named in the report.
The information to be reported in an 805 report shall include the
name and license number of the licentiate involved, a description of
the facts and circumstances of the medical disciplinary cause or
reason, and any other relevant information deemed appropriate by the
reporter.
A supplemental report shall also be made within 30 days following
the date the licentiate is deemed to have satisfied any terms,
conditions, or sanctions imposed as disciplinary action by the
reporting peer review body. In performing its dissemination functions
required by Section 805.5, the agency shall include a copy of a
supplemental report, if any, whenever it furnishes a copy of the
original 805 report.
If another peer review body is required to file an 805 report, a
health care service plan is not required to file a separate report
with respect to action attributable to the same medical disciplinary
cause or reason. If the Medical Board of California or a licensing
agency of another state revokes or suspends, without a stay, the
license of a physician and surgeon, a peer review body is not
required to file an 805 report when it takes an action as a result of
the revocation or suspension.
(g) The reporting required by this section shall not act as a
waiver of confidentiality of medical records and committee reports.
The information reported or disclosed shall be kept confidential
except as provided in subdivision (c) of Section 800 and Sections
803.1 and 2027, provided that a copy of the report containing the
information required by this section may be disclosed as required by
Section 805.5 with respect to reports received on or after January 1,
1976.
(h) The Medical Board of California, the Osteopathic Medical Board
of California, and the Dental Board of California shall disclose
reports as required by Section 805.5.
(i) An 805 report shall be maintained by an agency for
dissemination purposes for a period of three years after receipt.
(j) No person shall incur any civil or criminal liability as the
result of making any report required by this section.
(k) A willful failure to file an 805 report by any person who is
designated or otherwise required by law to file an 805 report is
punishable by a fine not to exceed one hundred thousand dollars
($100,000) per violation. The fine may be imposed in any civil or
administrative action or proceeding brought by or on behalf of any
agency having regulatory jurisdiction over the person regarding whom
the report was or should have been filed. If the person who is
designated or otherwise required to file an 805 report is a licensed
physician and surgeon, the action or proceeding shall be brought by
the Medical Board of California. The fine shall be paid to that
agency but not expended until appropriated by the Legislature. A
violation of this subdivision may constitute unprofessional conduct
by the licentiate. A person who is alleged to have violated this
subdivision may assert any defense available at law. As used in this
subdivision, "willful" means a voluntary and intentional violation of
a known legal duty.
(l) Except as otherwise provided in subdivision (k), any failure
by the administrator of any peer review body, the chief executive
officer or administrator of any health care facility, or any person
who is designated or otherwise required by law to file an 805 report,
shall be punishable by a fine that under no circumstances shall
exceed fifty thousand dollars ($50,000) per violation. The fine may
be imposed in any civil or administrative action or proceeding
brought by or on behalf of any agency having regulatory jurisdiction
over the person regarding whom the report was or should have been
filed. If the person who is designated or otherwise required to file
an 805 report is a licensed physician and surgeon, the action or
proceeding shall be brought by the Medical Board of California. The
fine shall be paid to that agency but not expended until appropriated
by the Legislature. The amount of the fine imposed, not exceeding
fifty thousand dollars ($50,000) per violation, shall be proportional
to the severity of the failure to report and shall differ based upon
written findings, including whether the failure to file caused harm
to a patient or created a risk to patient safety; whether the
administrator of any peer review body, the chief executive officer or
administrator of any health care facility, or any person who is
designated or otherwise required by law to file an 805 report
exercised due diligence despite the failure to file or whether they
knew or should have known that an 805 report would not be filed; and
whether there has been a prior failure to file an 805 report. The
amount of the fine imposed may also differ based on whether a health
care facility is a small or rural hospital as defined in Section
124840 of the Health and Safety Code.
(m) A health care service plan registered under Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code or a disability insurer that negotiates and enters into a
contract with licentiates to provide services at alternative rates of
payment pursuant to Section 10133 of the Insurance Code, when
determining participation with the plan or insurer, shall evaluate,
on a case-by-case basis, licentiates who are the subject of an 805
report, and not automatically exclude or deselect these licentiates.
SEC. 17. Section 805.2 of the Business and Professions Code is
amended to read:
805.2. (a) It is the intent of the Legislature to provide for a
comprehensive study of the peer review process as it is conducted by
peer review bodies defined in paragraph (1) of subdivision (a) of
Section 805, in order to evaluate the continuing validity of Section
805 and Sections 809 to 809.8, inclusive, and their relevance to the
conduct of peer review in California.
(b) The Medical Board of California shall contract with an
independent entity to conduct this study that is fair, objective, and
free from bias that is directly familiar with the peer review
process and does not advocate regularly before the board on peer
review matters or on physician and surgeon disciplinary matters.
(c) The study by the independent entity shall include, but not be
limited to, the following components:
(1) A comprehensive description of the various steps of and
decisionmakers in the peer review process as it is conducted by peer
review bodies throughout the state, including the role of other
related committees of acute care health facilities and clinics
involved in the peer review process.
(2) A survey of peer review cases to determine the incidence of
peer review by peer review bodies, and whether they are complying
with the reporting requirement in Section 805.
(3) A description and evaluation of the roles and performance
of various state agencies, including the State Department of Health
Services and occupational licensing agencies that regulate healing
arts professionals, in receiving, reviewing, investigating, and
disclosing peer review actions, and in sanctioning peer review bodies
for failure to comply with Section 805.
(4) An assessment of the cost of peer review to licentiates and
the facilities which employ them.
(5) An assessment of the time consumed by the average peer review
proceeding, including the hearing provided pursuant to Section 809.2,
and a description of any difficulties encountered by either
licentiates or facilities in assembling peer review bodies or panels
to participate in peer review decisionmaking.
(6) An assessment of the need to amend Section 805 and Sections
809 to 809.8, inclusive, to ensure that they continue to be relevant
to the actual conduct of peer review as described in paragraph (1),
and to evaluate whether the current reporting requirement is yielding
timely and accurate information to aid licensing boards in their
responsibility to regulate and discipline healing arts practitioners
when necessary, and to assure that peer review bodies function in the
best interest of patient care.
(7) Recommendations of additional mechanisms to stimulate the
appropriate reporting of peer review actions under Section 805.
(8) Recommendations regarding the Section 809 hearing process to
improve its overall effectiveness and efficiency.
(9) An assessment of the role of medical professionals, using
professionals who are experts and are actively practicing medicine in
this state, to review and investigate for the protection of
consumers, allegations of substandard practice or professional
misconduct.
(10) An assessment of the process to identify and retain a medical
professional with sufficient expertise to review allegations of
substandard practice or professional misconduct by a physician and
surgeon, if the peer review process is discontinued.
(d) The independent entity shall exercise no authority over the
peer review processes of peer review bodies. However, peer review
bodies, health care facilities, health care clinics, and health care
service plans shall cooperate with the independent entity in
providing raw data, information, and case files as requested in a
mutually agreeable timeframe.
(e) The case files and other information obtained by the
independent entity shall be confidential. The independent entity
shall not release the case files or other information it obtains to
any individual, agency, or entity, including the board, except as
aggregate data, examples, or in the final report submitted to the
board and the Legislature, but in no case shall information released
under these exemptions be identifiable in any way or associated with,
or related to, a specific facility, individual, or peer review body.
(f) Notwithstanding any other provision of law, information
obtained by the independent entity from a peer review body or from
any other person or entity and information otherwise generated by the
independent entity, including, but not limited to, raw data, patient
information, case files or records, interviews and records of
interviews, proceedings of a peer review body, and analyses or
conclusions of the independent entity, shall not be subject to
discovery or to a subpoena or a subpoena duces tecum and shall not be
admissible as evidence in any court of law in this state. The
information described in this subdivision shall be subject to all
other confidentiality protections and privileges otherwise provided
by law. The independent entity and its employees and contractors
shall assert all of the protections for the information described in
this subdivision that may apply in order to protect the information
from disclosure. However, nothing in this section shall affect
provisions of law relating to otherwise admissible material
obtainable from sources other than the independent entity.
(g) The independent entity shall report to the peer review body
any information it obtains from the peer review body that the
independent entity determines should have been reported pursuant to
Section 805. The independent entity shall include with the report a
clear explanation of the reasons it determined that the information
warrants a report under Section 805. If the peer review body agrees
with the independent entity's determination, the peer review body
shall report the information pursuant to Section 805 without being
subject to penalties under subdivision (k) or (l) of Section 805, if
the peer review body makes the report to the board within 30 days of
the date the independent entity reported its determination to the
peer review body, unless additional time is required to afford due
process or fair hearing rights to the subject of the report as
required by Section 805 and Sections 809.1 and following.
(h) The independent entity shall work in cooperation with and
under the general oversight of the Executive Director of the Medical
Board of California and shall submit a written report with its
findings and recommendations to the board and the Legislature no
later than July 31, 2008.
(i) Completion of the peer review study pursuant to this section
shall be among the highest priorities of the Medical Board of
California, and the board shall ensure that it is completed no later
than July 31, 2008.
SEC. 18. Section 2026 of the Business and Professions Code is
repealed.
SEC. 19. Section 2026 is added to the Business and Professions
Code, to read:
2026. The California Research Bureau (CRB) of the California
State Library shall study the role of public disclosure in the public
protection mandate of the board. The ensuing CRB report shall
include, but not be limited to, considering whether the public is
adequately informed about physician misconduct by the current laws
and regulations providing for disclosure. The study shall present
policy options for improving public access. The board shall work
cooperatively with the CRB, providing cost-free access and
reproduction assistance to the board's records while protecting the
identity and privacy of all persons involved in any complaint. The
provision of confidential data, information, and case files by the
board to the CRB shall not constitute a waiver of any exemption from
disclosure or discovery or of any confidentiality protection or
privilege otherwise provided by law that is applicable to the data,
information, or case files. Data will be presented in aggregate
categories. This study shall be commenced as soon as possible and a
report to the Legislature completed no later than July 1, 2008.
SEC. 20. Section 2027 of the Business and Professions Code is
amended to read:
2027. (a) On or after July 1, 2001, the board shall post on the
Internet the following information in its possession, custody, or
control regarding licensed physicians and surgeons:
(1) With regard to the status of the license, whether or not the
licensee is in good standing, subject to a temporary restraining
order (TRO), subject to an interim suspension order (ISO), or subject
to any of the enforcement actions set forth in Section 803.1.
(2) With regard to prior discipline, whether or not the licensee
has been subject to discipline by the board or by the board of
another state or jurisdiction, as described in Section 803.1.
(3) Any felony convictions reported to the board after January 3,
1991.
(4) All current accusations filed by the Attorney General,
including those accusations that are on appeal. For purposes of this
paragraph, "current accusation" shall mean an accusation that has not
been dismissed, withdrawn, or settled, and has not been finally
decided upon by an administrative law judge and the Medical Board of
California unless an appeal of that decision is pending.
(5) Any malpractice judgment or arbitration award reported to the
board after January 1, 1993.
(6) Any hospital disciplinary actions that resulted in the
termination or revocation of a licensee's hospital staff privileges
for a medical disciplinary cause or reason.
(7) Any misdemeanor conviction that results in a disciplinary
action or an accusation that is not subsequently withdrawn or
dismissed.
(8) Appropriate disclaimers and explanatory statements to
accompany the above information, including an explanation of what
types of information are not disclosed. These disclaimers and
statements shall be developed by the board and shall be adopted by
regulation.
(9) Any information required to be disclosed pursuant to Section
803.1.
(b) (1) From January 1, 2003, the information described in
paragraphs (1) (other than whether or not the licensee is in good
standing), (2), (4), (5), (7), and (9) of subdivision (a) shall
remain posted for a period of 10 years from the date the board
obtains possession, custody, or control of the information, and after
the end of that period shall be removed from being posted on the
board's Internet Web site. Information in the possession, custody, or
control of the board prior to January 1, 2003, shall be posted for a
period of 10 years from January 1, 2003. Settlement information
shall be posted as described in paragraph (2) of subdivision (b) of
Section 803.1.
(2) The information described in paragraphs (3) and (6) of
subdivision (a) shall not be removed from being posted on the board's
Internet Web site. Notwithstanding the provisions of this paragraph,
if a licensee's hospital staff privileges are restored and the
licensee notifies the board of the restoration, the information
pertaining to the termination or revocation of those privileges, as
described in paragraph (6) of subdivision (a), shall remain posted
for a period of 10 years from the restoration date of the privileges,
and at the end of that period shall be removed from being posted on
the board's Internet Web site.
(c) The board shall provide links to other Web sites on the
Internet that provide information on board certifications that meet
the requirements of subdivision (b) of Section 651. The board may
provide links to other Web sites on the Internet that provide
information on health care service plans, health insurers, hospitals,
or other facilities. The board may also provide links to any other
sites that would provide information on the affiliations of licensed
physicians and surgeons.
SEC. 21. Section 2435 of the Business and Professions Code is
amended to read:
2435. The following fees apply to the licensure of physicians and
surgeons:
(a) Each applicant for a certificate based upon a national board
diplomate certificate, each applicant for a certificate based on
reciprocity, and each applicant for a certificate based upon written
examination, shall pay a nonrefundable application and processing
fee, as set forth in subdivision (b), at the time the application is
filed.
(b) The application and processing fee shall be fixed by the
Division of Licensing by May 1 of each year, to become effective on
July 1 of that year. The fee shall be fixed at an amount necessary to
recover the actual costs of the licensing program as projected for
the fiscal year commencing on the date the fees become effective.
(c) Each applicant who qualifies for a certificate, as a condition
precedent to its issuance, in addition to other fees required
herein, shall pay an initial license fee, if any. The initial license
fee shall be seven hundred ninety dollars ($790). An applicant
enrolled in an approved postgraduate training program shall be
required to pay only 50 percent of the initial license fee.
(d) The biennial renewal fee shall be seven hundred ninety dollars
($790).
(e) Notwithstanding subdivisions (c) and (d) and to ensure that
subdivision (k) of Section 125.3 is revenue neutral with regard to
the board, the board may, by regulation, increase the amount of the
initial license fee and the biennial renewal fee by an amount
required to recover both of the following:
(1) The average amount received by the board during the three
fiscal years immediately preceding July 1, 2006, as reimbursement for
the reasonable costs of investigation and enforcement proceedings
pursuant to Section 125.3.
(2) Any increase in the amount of investigation and enforcement
costs incurred by the board after January 1, 2006, that exceeds the
average costs expended for investigation and enforcement costs during
the three fiscal years immediately preceding July 1, 2006. When
calculating the amount of costs for services for which the board paid
an hourly rate, the board shall use the average number of hours for
which the board paid for those costs over these prior three fiscal
years, multiplied by the hourly rate paid by the board for those
costs as of July 1, 2005. Beginning January 1, 2009, the board shall
instead use the average number of hours for which it paid for those
costs over the three-year period of fiscal years 2005-06, 2006-07,
and 2007-08, multiplied by the hourly rate paid by the board for
those costs as of July 1, 2005. In calculating the increase in the
amount of investigation and enforcement costs, the board shall
include only those costs for which it was eligible to obtain
reimbursement under Section 125.3 and shall not include probation
monitoring costs and disciplinary costs, including those associated
with the citation and fine process and those required to implement
subdivision (b) of Section 12529 of the Government Code.
(f) Notwithstanding Section 163.5, the delinquency fee shall be 10
percent of the biennial renewal fee.
(g) The duplicate certificate and endorsement fees shall each be
fifty dollars ($50), and the certification and letter of good
standing fees shall each be ten dollars ($10).
(h) It is the intent of the Legislature that, in setting fees
pursuant to this section, the board shall seek to maintain a reserve
in the Contingent Fund of the Medical Board of California equal to
approximately two months' operating expenditures.
(i) Not later than July 1, 2007, the Bureau of State Audits (BSA)
shall conduct a review of the board's financial status, its financial
projections and historical projections, including, but not limited
to, its projections related to expenses, revenues, and reserves. The
BSA shall, on the basis of the review, report to the Joint
Legislative Audit Committee before January 1, 2008, on any adjustment
to the amount of the licensure fee that is required to maintain the
reserve amount in the Contingent Fund of the Medical Board of
California pursuant to subdivision (h) of Section 2435, and whether a
refund of any excess revenue should be made to licentiates.
SEC. 22. Section 12529.6 of the Government Code is amended to
read:
12529.6. (a) The Legislature finds and declares that the Medical
Board of California, by ensuring the quality and safety of medical
care, performs one of the most critical functions of state
government. Because of the critical importance of the board's public
health and safety function, the complexity of cases involving alleged
misconduct by physicians and surgeons, and the evidentiary burden in
the board's disciplinary cases, the Legislature finds and declares
that using a vertical prosecution model for those investigations is
in the best interests of the people of California.
(b) Notwithstanding any other provision of law, as of January 1,
2006, each complaint that is referred to a district office of the
board for investigation shall be simultaneously and jointly assigned
to an investigator and to the deputy attorney general in the Health
Quality Enforcement Section responsible for prosecuting the case if
the investigation results in the filing of an accusation. The joint
assignment of the investigator and the deputy attorney general shall
exist for the duration of the disciplinary matter. During the
assignment, the investigator so assigned shall, under the direction
of the deputy attorney general, be responsible for obtaining the
evidence required to permit the Attorney General to advise the board
on legal matters such as whether the board should file a formal
accusation, dismiss the complaint for a lack of evidence required to
meet the applicable burden of proof, or take other appropriate legal
action.
(c) The Medical Board of California, the Department of Consumer
Affairs, and the Office of the Attorney General shall, if necessary,
enter into an interagency agreement to implement this section.
(d) This section does not affect the requirements of Section
12529.5 as applied to the Medical Board of California where
complaints that have not been assigned to a field office for
investigation are concerned.
(e) This section shall become inoperative on July 1, 2008, and, as
of January 1, 2009, is repealed, unless a later enacted statute,
that is enacted before January 1, 2009, deletes or extends the dates
on which it becomes inoperative and is repealed.