BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
501 (Emmerson)
Hearing Date: 7/6/2009 Amended: 5/26/2009
Consultant: Bob Franzoia Policy Vote: B,P&ED 10-0
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BILL SUMMARY: AB 501 would authorize an applicant for a license
unable to practice some aspects of medicine safely due to a
disability to receive a limited license if the applicant pays a
license fee and signs an agreement, under penalty of perjury,
agreeing to limit his or her practice in the manner prescribed
by the reviewing physician and agreed to by the Medical Board of
California (MBC). This bill would authorize the MBC to require
the applicant to obtain an independent clinical evaluation of
his or her ability to practice medicine safely as a condition of
receiving the limited license. This bill would require
specified fees to be fixed by the MBC at a maximum of $790,
while retaining the MBC's authority to raise those fees in
certain circumstances and state the intent of the Legislature
that, in setting those fees, the MBC shall seek to maintain a
reserve in the Contingent Fund of the Medical Board of
California (CFMBC) in an amount not less than two nor more than
four months' operating expenditures. This bill would require
the Bureau of State Audits (BSA) to commence a review of the
MBC's financial status by January 1, 2012, and to report its
findings and recommendations to the Joint Legislative Audit
Committee by June 1, 2012.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Felony (penalty of perjury) Unknown, up to $23-$36* per
year per General
conviction
Audit Up to $100 in
2011-12 Special**
* $23 is the Legislative Analyst Office estimate of the cost to
house an inmate for one year, $36 is the California Department
of Corrections and Rehabilitation estimate.
** Contingent Fund of the Medical Board of California
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STAFF COMMENTS: This bill may meet the criteria for referral to
the Suspense File.
This bill would authorize certain persons who are not licensed
as physicians and surgeons under the Medical Practice Act to use
the words "doctor" or "physician" the letters or prefix "Dr.,"
or the initials "M.D.," as specified.
Under current law, any licensee who demonstrates to the
satisfaction of the MBC that he or she is unable to practice
medicine due to a disability may request a waiver of the license
renewal fee. The licensee signs an agreement under penalty of
perjury to limit his or her practice in a manner prescribed.
This bill would allow a physician unable to practice some
aspects of medicine safely due to a disability to receive a
limited license if the licensee signs a similar agreement.
Page 2
AB 501 (Emmerson)
The penalty of perjury is a felony and carries a prison term of
two, three or four years. Though the number of physicians
applying for a limited license and the potential for perjury is
likely to be small, limiting increases in the state's inmate
population is possible by using civil penalties as a deterrent.
Staff recommends that Section 2088 of the Business and
Professions Code, as added by this bill, be amended as follows:
2088. (a) An applicant for a physician's and surgeon's
license who is otherwise eligible for that license but is unable
to practice some aspects of medicine safely due to a disability
may receive a limited license if he or she does both of the
following:
(1) Pays the initial license fee.
(2) Signs an agreement on a form prescribed by the board,
signed under penalty of perjury , in which the applicant agrees
to limit his or her practice in the manner prescribed by the
reviewing physician and agreed to by the board.
(b) The board may require the applicant described in
subdivision (a) to obtain an independent clinical evaluation of
his or her ability to practice medicine safely as a condition of
receiving a limited license under this section.
(c) Any person who knowingly provides false information in
the agreement submitted pursuant to subdivision (a) shall be
subject to a civil penalty in the minimum amount of $1,000
dollars and the maximum amount of $25,000 dollars, in addition
to any other remedies available to the board. An action for a
civil penalty under this provision may be brought by any public
prosecutor in the name of the people of the State of California.
This bill would state the intent of the Legislature that, in
setting fees, the MBC seek to maintain a reserve in the CFMBC in
an amount not less than two nor more than four months' operating
expenditures.
Staff is unaware of any claims of improper activities relating
to the CFMBC and a BSA review may not be the best use of the
BSA's expertise and independence. Additionally, Joint Rule 37.4
(b) requires that any bill requiring action by the BSA shall
contain an appropriation for the cost of any study or audit.
This bill does not contain an appropriation. If the committee
thinks a review is warranted but would like to achieve that in a
more cost effective manner, staff recommends the bill be amended
to strike out the requirement that the BSA commence a review of
the MBC's financial status and instead require the Office of
State Audits and Evaluations within the Department of Finance,
which conducts audits and evaluations, to conduct a preliminary
review and make the results of that review available upon
request.