BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 304 (Price) - Healing arts: boards.
Amended: April 24, 2013 Policy Vote: B&P 9-0
Urgency: No Mandate: Yes
Hearing Date: May 23, 2013 Consultant: Brendan McCarthy
SUSPENSE FILE.
Bill Summary: SB 304 would make several changes to the
responsibilities and processes of the Medical Board of
California. In particular, the bill would transfer all staff
currently performing investigations of physicians from the
Medical Board to the Department of Justice.
Fiscal Impact:
Ongoing costs up to $1.8 million per year for
investigations, based on differences in employee
classifications between the Medical Board and the Department
of Justice (Contingent Fund of the Medical Board of
California).
Increased costs of about $1.1 million per year for
additional support staff at the Department of Justice
(Contingent Fund of the Medical Board of California). The
Department indicates that it currently does not have some of
the Medical Board's technical expertise and therefore the
Department would need to add some additional staff to
provide technical expertise to investigators.
Ongoing costs of about $2.5 million per year for the
continued operation of the vertical enforcement program by
the Department of Justice (Contingent Fund of the Medical
Board of California). A report commissioned by the Medical
Board indicates that eight investigator and ten attorney
positions have been authorized to support this program.
Background: Under current law, the Medical Board of California
licenses and regulates the conduct of physicians and surgeons.
State law includes requirements on the practice of medicine by
physicians and surgeons, the regulatory procedures of the
Medical Board, and requirements for the investigation of
SB 304 (Price)
Page 1
physicians and surgeons by the Medical Board.
The Medical Board is authorized to investigate physicians and
surgeons for violations of the law or other licensing
requirements. Current law authorizes a vertical enforcement and
prosecution model for such cases, under which staff of the
Medical Board work with staff from the Department of Justice to
investigate and prosecute allegations against physicians and
surgeons.
Proposed Law: SB 304 would make several changes to the
responsibilities and processes of the Medical Board of
California.
The bill would transfer all staff currently performing
investigations from the Medical Board to the Department of
Justice. The bill would also delete the sunset on the vertical
enforcement and prosecution program.
In addition, specific provisions of the bill would:
Repeal the authority of the Medical Board to approve
equivalent certification boards;
Require licensees to provide email addresses to the Medical
Board;
Clarify that licensees must pass all parts of USMLE
licensing exams;
Limit the requirement for review of reports by a medical
expert, under certain circumstances;
Authorize the Medical Board to issue a notification to
cease practice to a licensee who fails to comply with an
order related to an examination required of the licensee;
Provide that the prohibition on the corporate practice of
medicine does not apply to medical residents;
Clarify the requirements for midwife training;
Make certain authorities of the Medical Board relating to
Registered Dispensing Opticians subject to Legislative
Review;
Make other changes to Medical Board procedures and
authorities.
Related Legislation: This bill is one of several bills
introduced this session to extend the sunset on licensing boards
within the Department of Consumer Affairs - including SB 305
SB 304 (Price)
Page 2
(Price), SB 307 (Price), SB 308 (Price), and SB 309 (Price).
Staff Comments: Most of the changes made in this bill will have
minor fiscal impacts on the Medical Board.
There will be a fiscal impact from shifting investigatory
positions from the Medical Board to the Department of Justice.
Because there are salary differences between the personnel
classifications used by the Medical Board and the Department of
Justice for generally similar positions, there is an anticipated
increase in costs from shifting positions between the agencies.
For example, the Medical Board employs 76 investigators with a
top step salary of $68,000 per year. The equivalent Department
of Justice classification is a special agent position, with an
top step salary of $88,000. The cost estimate above assumes that
all positions are paid at the top step salary. In reality, the
actual increase in costs will depend on individual salaries.
The only costs that may be incurred by a local agency relate to
crimes and infractions. Under the California Constitution, such
costs are not reimbursable by the state.