BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:April 23, 2012        |Bill No:SB                         |
        |                                   |1483                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                          Senator Curren D. Price, Jr., Chair
                                           

                        Bill No:        SB 1483Author:Steinberg
                    As Amended:April 17, 2012          Fiscal: Yes

        
        SUBJECT:    Physicians and Surgeons. 
        
        SUMMARY:  Establishes the Physician Health Program (PHP), administered 
        by the Physician Health, Awareness and Monitoring Quality Oversight 
        Committee (Committee), with 14 members to be appointed as specified.  
        The purpose of the program would be to promote awareness and education 
        relative to physician and surgeon health issues, including impairment 
        due to alcohol or substance abuse, mental disorders, or other health 
        conditions that could affect the safe practice of medicine.  Provides 
        for referral by the PHP of physicians and surgeons, as defined, to 
        certified monitoring programs on a voluntary basis, governed by a 
        written agreement between the participant and the PHP.  Requires the 
        Department of Consumer Affairs (DCA) to select a contractor to 
        implement the program with the Committee serving as the evaluation 
        body for submitted proposals.  Requires the Committee to report to the 
        DCA on the outcome of the PHP and would require regular audits of the 
        program. 

        Existing law:
        
        1)Provides for the licensure and regulation of physicians and 
          surgeons by the Medical Board of California (Board) under the 
          DCA pursuant to the Medical Practice Act.

        2)Required the Board to oversee a diversion program for physicians 
          and surgeons with alcohol and substance abuse problems until 
          June 30, 2008.  (The Board is no longer responsible for a 
          diversion program.)

        3)As part of the prior diversion program, the Board established 





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          diversion evaluation committees (DECs) to identify and 
          rehabilitate physicians and surgeons with drug, alcohol abuse 
          problems, or mental or physical illness that affected their 
          competency to practice medicine, and provided for procedures and 
          criteria to be followed by the DECs for acceptance, denial or 
          termination of physicians and surgeons in the diversion program.

        4)Specifies that it is the intent of the Legislature that the DCA 
          conduct a thorough audit of the effectiveness, efficiency, and 
          overall performance of the vendor chosen by the DCA to manage 
          diversion programs for substance-abusing licensees of heath care 
          licensing boards and make recommendations regarding the 
          continuation of the programs to ensure that individuals 
          participating in the programs are appropriately monitored, and 
          the public is protected from health care practitioners who are 
          impaired due to alcohol or drug abuse or mental or physical 
          illness.  

        5)Specifies that the audit shall identify whether licensees are 
          self-referred, board-referred or board-ordered, describe in 
          detail the type of diversion services provided, review several 
          critical areas and programs provided by the vendor, and also 
          recommend ways in which the DCA can more closely monitor the 
          vendor.  

        6)Establishes in the DCA the Substance Abuse Coordination 
          Committee (SACC), comprised of executive officers of the DCA's 
          healing arts boards as specified below and a designee of the 
          State Department of Alcohol and Drug Programs. (Business and 
          Professions Code (BPC) � 315 (a))

        7)Requires the SACC to formulate, by January 1, 2010, uniform and 
          specific standards in specified areas that each healing arts 
          board shall use in dealing with substance-abusing licensees, 
          whether or not a board chooses to have a formal diversion 
          program. (BPC � 315 (c))

        8)Requires the following Boards to establish criteria for the 
          acceptance, denial or termination of licentiates in a diversion 
          program:  The Osteopathic Medical Board of California for 
          osteopathic physicians and surgeons;  the Board of Registered 
          Nursing for registered nurses;  the Board of Dental Examiners of 
          California for dentists;  the Board of Pharmacy to operate a 
          recovery program for pharmacists or intern pharmacists;  the 
          Physical Therapy Board of California for physical therapists;  
          the Veterinary Medical Board for veterinarians and registered 





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          veterinary technicians;  and, the Physician Assistant Committee 
          for physician assistants.

        9)Establishes the Attorney Diversion and Assistance Act within the 
          State Bar of California to address the substance abuse and 
          mental health problems of attorneys who voluntarily participate 
          in the program.

        10)Provides for the professional review of specified healing arts 
          licentiates by a peer review body, as defined, including a 
          medical or professional staff of any licensed health care 
          facility or clinic, health care service plan, specified health 
          professional societies, or a committee organized by any entity 
          that functions as a body to review the quality of professional 
          care provided by specified health care practitioners. (BPC � 
          805)

        11)Requires a report to be filed by a peer review body to an 
          agency having regulatory jurisdiction over healing arts 
          licentiates if a licentiate's application for staff privileges 
          is denied or rejected, has had his or her membership, staff 
          privileges, or employment terminated or revoked for medical 
          disciplinary reasons; or if 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 
          (Commonly referred to as an "805 report" pursuant to � 805 of 
          the BPC.)

        12)Requires a peer review body to file a report with the relevant 
          agency within 15 days after a peer review body makes a final 
          decision or recommendation regarding the disciplinary action to 
          be taken against a licentiate if it is determined, based on the 
          investigation of the licentiate, that the licentiate was 
          involved in the use of, or prescribing for or administering to 
          himself or herself, any controlled substance; or the use of any 
          dangerous drug or alcoholic beverages, to the extent, or in such 
          a manner as to be dangerous or injurious to the licentiate, any 
          other person, or to the public, or to the extent that such use 
          impairs the ability of the licentiate to practice safely.
        (BPC � 805.01) 

        This bill:

        1)Makes the following findings and declarations: 






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           a)   It is in every patient's interest to have physicians and 
             surgeons that are healthy and well.

           b)   Physicians and surgeons may have health conditions that 
             interfere with their ability to practice medicine safely.

           c)   In such cases, the most effective long-term protection for 
             patients is early intervention to address health issues that have 
             the potential to interfere with the safe practice of physicians 
             and surgeons.

        2)Provides that while the Legislature recognizes that physicians and 
          surgeons have a number of options for obtaining treatment, it is the 
          intent of the Legislature in enacting this act to promote awareness 
          among members of the medical community about health issues that 
          could interfere with safe practice, to promote awareness that 
          private early intervention options are available, to provide 
          resources and referrals to ensure physicians and surgeons are better 
          able to choose high quality private interventions that meet their 
          specific needs, and to provide a separate mechanism for monitoring 
          treatment.

        3) Creates the Physician Health, Awareness, and Monitoring Quality Act 
          of 2012 (Act).

        4)Defines "Committee" as the Physician Health, Awareness, and 
          Monitoring Quality Oversight Committee, as specified.

        5)Defines "Impairment" as the inability to practice medicine with 
          reasonable skill and safety to patients by reason of alcohol or 
          substance abuse, a mental disorder, or another health condition as 
          determined by a clinical evaluation in individual circumstances.

        6)Defines the "Physician Health Program" (PHP) as the program 
          specified under the Act and includes vendors, providers, or entities 
          that contract with the Committee pursuant to this Act.  The PHP 
          itself shall not offer or provide treatment services to physicians 
          and surgeons.

        7)Defines "Qualifying illness" as alcohol or substance abuse, a mental 
          disorder, or another health condition that a clinical evaluation 
          determines can be monitored and treated with private clinical and 
          monitoring programs.

        8)Requires the PHP to do all of the following:






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           a)   Be available to all physicians and surgeons, as defined.

           b)   Promote awareness among members of the medical community on 
             the recognition of health issues that could interfere with safe 
             practice.

           c)   Educate the medical community on the benefits of and options 
             available for early intervention to address those health issues.

           d)   Refer physicians and surgeons to monitoring programs certified 
             by the program by executing a written agreement with the 
             participant and monitoring the compliance of the participant with 
             that agreement.

           e)   Provide for the confidential participation by physicians and 
             surgeons who have a qualifying illness and who are not on 
             probation with the Board.

        9)Establishes the Committee and specifies that it shall have the 
          duties and responsibilities as set forth in the Act and to take any 
          reasonable administrative actions necessary including, but not 
          limited to, hiring of staff and entering into contracts.

        10)Provides that the Committee shall be formed no later than 
          (unspecified date).

        11)Provides for a 14 member Committee and that the following 12 
          members shall be appointed by the Governor and licensed in this 
          state as physicians and surgeons with education, training, and 
          experience in the identification and treatment of substance use or 
          mental disorders, or both:

           a)   Two members recommended by a statewide association 
             representing psychiatrists with at least 3,000 members.

           b)   Two members recommended by a statewide association 
             representing addiction medicine specialists with at least 300 
             members.

           c)   Three members recommended by a statewide association 
             representing physician and surgeons from all specialties, modes 
             of practice, and practice settings with at least 25,000 members.

           d)   One member recommended by a statewide hospital association 
             representing at least 400 hospitals.






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           e)   Four members of the public, as specified. 

        12)Provides that the remaining 2 public members, as specified, shall 
          be chosen by the Legislature; one member appointed by the Speaker of 
          the Assembly and one member appointed by Senate Committee on Rules. 

        13)Provides that the Committee shall be subject to the Bagley-Keene 
          Open Meetings Act and the California Public Records Act.



        14)Requires the Committee to also do all of the following:

           a)   Monitor compliance of the PHP with the requirements of the Act 
             and its implementing rules and regulations, if any.

           b)   Report to the DCA statistics received from the PHP and the 
             outcomes of the PHP, including, but not limited to, information 
             as specified, and that the DCA shall report to the Legislature 
             the same information.  However, provides that in making these 
             reports, the Committee and the DCA shall not disclose any 
             personally identifiable information relating to any physician and 
             surgeon participating in the PHP pursuant to any agreement, as 
             specified, entered into with the PHP.

           c)   Requires the Committee to biennially contract to perform an 
             audit of the PHP and its vendors, as specified.  Provides that 
             the audit shall be done by an �unspecified date] and shall 
             ascertain, if the PHP is operating in conformance with the rules 
             and regulations established by the Committee.  

        15)Requires that the rules adopted by the Committee shall be 
          consistent with Section 315 �of the BPC], the guidelines of the 
          Federation of State Physician Health Programs, Inc., as well as 
          community standards of practice, including, but not limited to, 
          criteria for acceptance of participants into the PHP and the refusal 
          to accept a person as a participant into the PHP and the assigning 
          of costs of participation and associated financial responsibilities 
          of participants. In the event of any conflicts between standards 
          established pursuant to Section 315 and the guidelines of the 
          Federation of State Physician Health Programs, Inc., and community 
          standards of practice, Section 315 shall prevail.

        16)Provides that the DCA shall select a contractor for the PHP 
          pursuant to a request for proposals, and the Committee shall 
          contract for a five-year term with that entity.  The process for 





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          procuring the services for the PHP shall be administered by the DCA  
          pursuant the Public Contract Code.  However, the Committee shall 
          serve as the evaluation body for the procurement.

        17)Requires the chief executive officer of the PHP vendor to have 
          expertise in the areas of substance or alcohol abuse, and mental 
          disorders in health care professionals.

        18)Requires the PHP �vendor] to perform all of the following pursuant 
          to the contract entered into with the Committee:

           a)   Have a medical director to oversee clinical aspects of the 
             PHP's operations.  The medical director shall have expertise in 
             the diagnosis and treatment of alcohol and substance abuse and 
             mental disorders in health care professionals.

           b)   Have established relationships with local medical societies 
             and hospital well-being committees for conducting education, 
             outreach, and referrals for physician and surgeon health.

           c)   Monitor the monitoring entities that participating physicians 
             and surgeons have retained for monitoring the participant's 
             treatment and shall provide ongoing services to physicians and 
             surgeons that resume practice.

           d)   Have a system for promptly reporting physicians and surgeons 
             unable to practice safely to the Medical Board of California 
             (Board) when, contrary to agreements with the PHP, they continue 
             to practice unsafely.  This system shall ensure absolute 
             confidentiality in the communication to the enforcement division 
             of the Board, and shall not provide this information to any other 
             individual or entity unless authorized by the enrolled physician 
             and surgeon.

           e)   Report annually to the Committee statistics related to the 
             PHP, including, but not limited to, the number of participants 
             currently in the PHP, the number of participants referred by the 
             Board as a condition of probation, the number of participants who 
             have successfully completed their agreement period, the number of 
             participants terminated from the PHP, and the number of 
             participants reported by the PHP for noncompliance and failure to 
             meet the requirements of the PHP.  However, in making that 
             report, the program shall not disclose any personally 
             identifiable information relating to any participant.

           f)   Submit to periodic audits and inspections of all operations, 





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             records, and management related to the PHP to ensure compliance 
             with the requirements of this Act and its implementing rules and 
             regulations, if any.  Copies of the audits shall be published and 
             provided to the appropriate policy committees of the Legislature 
             within 10 business days of publication and a copy shall also be 
             made available to the public by Internet Website.

        19)Requires a physician and surgeon as a condition of participation in 
          the PHP to enter into an individual agreement with the PHP and that 
          the agreement shall include the following:

           a)   A jointly agreed-upon plan and mandatory conditions and 
             procedures to monitor compliance with the program, including, but 
             not limited to, an agreement to cease practice.

           b)   Compliance with terms and conditions of treatment and 
             monitoring.

           c)   Limitations on practice.

           d)   Conditions and terms for return to practice.

           e)   Criteria for program completion.

           f)   Criteria for termination of the participant from the program.

        20)Provides that if the physician and surgeon retains the services of 
          a private monitoring entity, he or she shall agree to authorize the 
          PHP vendor to receive reports from the private monitoring entity and 
          to request information from the private monitoring entity regarding 
          his or her treatment status.  Except as otherwise specified, a 
          physician and surgeon's participation in the PHP pursuant to an 
          agreement shall be confidential unless waived by the physician and 
          surgeon.



        21)Specifies that any agreement entered into under these provisions 
          shall not be considered a disciplinary action or order by the Board, 
          and shall not be disclosed to the Committee or the Board if both of 
          the following apply:

           a)   The physician and surgeon did not enroll in the program as a 
             condition of probation or as a result of an action of the Board.

           b)   The physician and surgeon is in compliance with the conditions 





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             and procedures in the agreement.

        22)Requires the PHP to immediately report the name of a participant to 
          the Committee when it learns of the participant's failure to meet 
          the requirements of the PHP including failure to cease practice when 
          required or failure to submit to evaluation, treatment, or 
          biological testing when required.  The PHP shall also immediately 
          report the name of a participant to the Committee when it learns 
          that the participant's impairment is not substantially alleviated 
          through treatment, or if the participant withdraws or is terminated 
          from the PHP prior to completion, or if, in the opinion of the PHP 
          after a risk assessment is conducted, the participant is unable to 
          practice medicine with reasonable skill and safety.

        23)Requires that within two business days of receiving a report as 
          specifies in Item # 21 above, the Committee shall refer the matter 
          to the Board.

        24)Provides that except as specified, any oral or written information 
          reported to the Board, including, but not limited to, any physician 
          and surgeon's participation in the PHP and any agreement entered 
          pursuant to the provisions of this Act, shall remain confidential as 
          specified, and shall not constitute a waiver of any existing 
          evidentiary privileges under any other provision or rule of law.  
          However, confidentiality regarding the physician and surgeon's 
          participation in the PHP and of all information and records created 
          by the PHP related to that participation shall not apply if the 
          Board has referred a participant as a condition of probation.

        25)Provides that nothing in the Act prohibits, requires, or otherwise 
          affects the discovery or admissibility of evidence in an action by 
          the Board against a physician and surgeon based on acts or omissions 
          within the course and scope of his or her practice.

        26)Specifies that any information received, developed, or maintained 
          by the Committee regarding a physician and surgeon in the PHP shall 
          not be used for any other purposes.

        
        FISCAL EFFECT:  Unknown.   This measure has been keyed "fiscal" by 
        Legislative Counsel.

        
        COMMENTS:
        
        1.Purpose.  There are several Co-Sponsors (Sponsors) for this measure 





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          which include the California Medical Association, California 
          Psychiatric Association, California Hospital Association and the 
          California Society of Addiction Medicine.  According to the 
          Sponsors, this measure enacts the Physician Health, Awareness, and 
          Monitoring Quality Act of 2012, which would facilitate a 
          public-private program, independent of the California Medical Board, 
          to:

         Promote awareness  among the medical community about health issues that 
          could interfere with safe practice; including alcohol or substance 
          abuse, mental illness, or other health conditions that may be 
          addressed through private treatment and monitoring programs.

         Coordinate and oversee  private treatment and monitoring programs, 
          educate the medical community about such private early intervention 
          options and provide resources and referrals to ensure physicians and 
          surgeons are better able to choose high quality private 
          interventions that meet their specific needs.

         Protect patients  by, as a condition of receiving confidential access 
          to such resources and referrals, requiring that participating 
          physicians and surgeons agree to specific terms and conditions, the 
          violation of which would result in immediate reporting to the 
          California Medical Board for purposes of potential enforcement 
          action.

        The Sponsors indicate that since the end of the Medical Board's 
          diversion program, physicians dealing with alcohol or substance 
          abuse issues, mental illness, or other health conditions that may 
          interfere with their ability to practice medicine safely, can seek 
          private treatment and monitoring services.  However, California is 
          one of only 5 states in the U.S. that does not have a physician 
          health program to coordinate and provide care and referral services 
          for physicians suffering from these maladies.

        This is a serious public health risk for the state, as these troubled 
          practitioners present a very real and immediate threat to patients.  
          Without a statewide system for increasing awareness among the 
          medical community about health issues that could interfere with safe 
                                               practice, coordination and oversight of private treatment and 
          monitoring programs, education about such private early intervention 
          options, and provision of resources and referrals to ensure 
          physicians and surgeons are better able to choose high quality 
          private interventions that meet their specific needs, California's 
          already overburdened and aging physician workforce often has no 
          other option than keeping their struggle to themselves and trying to 





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          work through it.  This is both unsafe and unacceptable.

        2.Background. 

           a)   Physician Diversion Program (PDP) of the Medical Board.  The 
             Board's PDP was created in 1980 to rehabilitate doctors with 
             mental illness and substance abuse problems without endangering 
             public health and safety.  Under this concept, physicians who 
             abuse drugs and/or alcohol or who are mentally or physically ill 
             may be "diverted" from the disciplinary track into a program that 
             monitors their compliance with terms and conditions of a contract 
             that is aimed at ensuring their recovery.

           The PDP was a voluntary program and only those physicians and 
             surgeons who voluntarily requested diversion treatment and 
             supervision could participate in the program.  A physician could 
             enter the diversion program in any of the following ways:  a) 
             self-referral; b) referral by the Enforcement Unit of the Board 
             in lieu of discipline; or c) directed as part of a disciplinary 
             order.  Confidentiality was required for physicians and doctors 
             that self-refer and could be granted to those who were referred 
             by the Board (doctors could avoid public discipline if there was 
             no evidence of patient harm and they successfully completed the 
             program).  For those who were directed to the program as part of 
             a disciplinary order, disciplinary actions are public records and 
             the practice violation that triggered the Board's involvement 
             would be reflected in the doctor's public file.  Any physician 
             and surgeon terminated from the PDP for failure to comply with 
             program requirements was subject to a disciplinary action for 
             acts committed before, after or during participation in the PDP, 
             and a physician that successfully completed the PDP was not 
             subject to any disciplinary action for any alleged violation that 
             resulted in referral to the PDP.  The PDP monitored participants' 
             attendance at group meetings, facilitated random drug testing, 
             and required reports from work-site monitors and treatment 
             providers.   The PDP was allowed to on 
           June 30, 2008  .

           b)   Audits of the Physician Diversion Program (PDP).  The BSA 
             audited the PDP four times between 1982 and 2007.  In 2005, a 
             legislatively created enforcement monitor also audited the PDP.  
             The enforcement monitor's audit indicated that "the Board's PDP 
             is significantly flawed; its most important monitoring mechanisms 
             are failing, it is chronically understaffed, and it exposes 
             patients to unacceptable risks posed by physicians who abuse 
             drugs and alcohol."  The 2007 BSA audit concluded, "Although the 





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             PDP has made many improvements since the release of the November 
             2005 report of the enforcement monitor, there are still some 
             areas in which the program must improve in order to adequately 
             protect the public."  BSA points out the following:  Although 
             case managers appear to be contacting participants on a regular 
             basis and participants appear to be attending group meetings and 
             completing the required amount of drug tests, the PDP does not 
             adequately ensure that it receives required monitoring reports 
             from its participants' treatment providers and work-site 
             monitors.  In addition, although the PDP has reduced the amount 
             of time it takes to admit new participants into the program and 
             begin drug testing, it does not always respond to potential 
             relapses in a timely and adequate manner.  Specifically, the PDP 
             has not always required a physician to immediately stop 
             practicing medicine after testing positive for alcohol or a 
             non-prescribed or prohibited drug.  Further, of the drug tests 
             scheduled in June and October 2006, 26% were not performed as 
             randomly scheduled.  Additionally, the PDP currently does not 
             have an effective process for reconciling its scheduled drug 
             tests with the actual drug tests performed and does not formally 
             evaluate its collectors, group facilitators, and diversion 
             evaluation committee members to determine whether they are 
             meeting program standards.  Finally, the BSA indicates that MBC 
             has not provided consistently effective oversight.

           In recognition that patient safety cannot continue to be 
             compromised, the Board voted unanimously on July 26, 2007 to end 
             the PDP, declaring in its motion that "in light of Board's 
             primary mission of consumer protection and as the regulatory 
             agency charged with the licensing of physicians and surgeons and 
             enforcement of the Medical Practice Act, The Board hereby 
             determines it is inconsistent with Board's public protection 
             mission and policies to operate a diversion program."  This 
             declaration prompted the Board to approve a Diversion Transition 
             Plan (DTP) on November 2, 2007 to accommodate the 203 physicians 
             already in the program.  

           c)   Other Health Provider Diversion Programs.  While the Board 
             houses its diversion program, other boards outsource these 
             functions.  The DCA currently manages a master contract with 
             MAXIMUS, Inc. (MAXIMUS), a publicly traded corporation for six 
             boards' and one committee's diversion programs: the Board of 
             Registered Nursing, the Dental Board of California, the Board of 
             Pharmacy, the Physical Therapy Board of California, the 
             Veterinary Medical Board of California, the Osteopathic Medical 
             Board of California, and the Physician Assistant Committee.  The 





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             individual Boards oversee the programs, but services are provided 
             by MAXIMUS.  The Boards' diversion programs follow the same 
             general principles of the Medical Board's PDP.  Health 
             practitioners with mental illnesses or substance abuse issues may 
             be referred in lieu of discipline or self-refer into the programs 
             and receive help with rehabilitation.  After an initial 
             evaluation, individuals accept a participation agreement and are 
             regularly monitored in various ways, including random drug 
             testing, to ensure compliance.  MAXIMUS provides the following 
             services that the Medical Board kept in-house:  Medical advisors, 
             compliance monitors, case managers, urine testing system, 
             reporting, and record maintenance.  The DCA's master contract 
             standardizes certain tasks, such as designing and implementing a 
             case management system, maintaining a 24-hour access line, and 
             providing initial intake and in-person assessments, but the 
             planning and execution of the programs are tailored to each board 
             according to their needs and mandates.  Each board specifies its 
             own policies and procedures.  MAXIMUS generally has a less 
             hands-on approach to managing the diversion programs than the 
             Medical Board attempted.  MAXIMUS reports that caseloads range 
             from 100 to 200 per clinical case management team.  MAXIMUS also 
             limits its in-person resources; for example, in the program 
             design for the Board of Registered Nursing, MAXIMUS specifies 
             that they will conduct in-person reassessments by telephone 
             unless otherwise requested by the Nursing Board.  Also, the 
             contractor performs unobserved, as well as observed, drug 
             screening.

           d)   Uniform Substance Abuse Standards.   SB 1441  (Chapter 548, 
             Statutes of 2008) required the DCA to develop uniform and 
             specific standards that shall be used by each healing arts board 
             in dealing with substance-abusing licensees in 16 specified 
             areas, including requirements and standards for:  (1) clinical 
             and diagnostic evaluation of the licensee; (2) temporary removal 
             of the licensee from practice; (3) communication with licensee's 
             employer about licensee status and condition; (4) testing and 
             frequency of testing while participating in a diversion program 
             or while on probation; (5) group meeting attendance and 
             qualifications for facilitators; (6) determining what type of 
             treatment is necessary; (7) worksite monitoring; (8) procedures 
             to be followed if a  licensee tests positive for a banned 
             substance; (9) procedures to be followed when a licensee is 
             confirmed to have ingested a banned substance; (10) consequences 
             for major violations and minor violations of the standards and 
             requirements; (11) return to practice on a full-time basis; (12) 
             reinstatement of a health practitioner's license; (13) use and 





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             reliance on a private-sector vendor that provides diversion 
             services; (14) the extent to which participation in a diversion 
             program shall be kept confidential; (15) audits of a 
             private-sector vendor's performance and adherence to the uniform 
             standards and requirements; and (16) measurable criteria and 
             standards to determine how effective diversion programs are in 
             protecting patients and in assisting licensees in recovering from 
             substance abuse in the long term.

           As part of the SB 1441 implementation, the DCA convened the 
             Substance Abuse Coordination Committee (SACC), which consisted of 
             representatives from all of the healing arts boards.  A series of 
             meetings, subject to the Bagley-Keene Open Meeting Act, were held 
             from 2009 to 2011 to discuss and develop the standards.  The 
             "Uniform Substance Abuse Standards" ("Uniform Standards") were 
             finally adopted in early 2010, with the exception of the 
             frequency of drug testing.  The Department reconvened the SACC in 
             March 2011, where a final vote was taken on an amended schedule 
             for drug testing frequency.

           The only standard that needed statutory authority dealt with the 
             cease practice requirement.    SB 1172  (Negrete McLeod, Chapter 
             517, Statutes of 2010) was enacted, and among other provisions 
             required healing arts boards to order a licensee to cease 
             practice if the licensee tests positive for any prohibited 
             substance under the terms of the licensee's probation or 
             diversion program.

           Boards began the process of adopting the "Uniform Standards" via 
             regulation and are continuing to move forward with submitting 
             their regulations to the DCA and the Office of Administrative.  
             There have been some issues with some boards regarding their 
             discretionary authority to revise the 16 standards, in particular 
             the frequency of testing.  This is being resolved through the 
             DCA.  

           e)   Informational Hearings.  The Senate Business, Professions, and 
             Economic Development Committee held informational hearings on the 
             PDP issue on June 11, 2007 and March 10, 2008.  The June 11, 2007 
             hearing focused on the findings of the 2007 BSA audit.  The MBC  
             shortly thereafter voted to eliminate its PDP.  The March 10, 
             2008 hearing examined how MBC and the other healthcare licensing 
             boards deal with licentiates with substance abuse and drug 
             addiction problems.

        3.Prior Similar Legislation.   AB 526  (Fuentes, 2009), similar to AB 





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          214, would have established the Public Protection and Physician 
          Health Program Act of 2009 to create within the  State and Consumer 
          Services Agency  the Public Protection and Physician Health 
          Committee, which would, until January 1, 2021, assist physicians and 
          surgeons who may be impaired by alcohol or substance abuse or 
          dependence or by a mental disorder.  This measure which passed out 
          of this Committee by a vote of 6 to 2, was placed on Senate 
          Appropriations suspense file and was held under submission.  

         AB 214  (Fuentes, 2008) would have created the Public Protection and 
          Physician Health Program Act of 2008 under the  State Department of 
          Public Health  .  The Governor vetoed this bill and in his veto 
          message stated that it is inappropriate to separate the program from 
          the MBC because it is critical that the licensing agency be directly 
          involved in monitoring participation in the diversion program to 
          protect patients and enable timely enforcement actions.  

        4.Previous Related Legislation.   SB 1441  (Ridley-Thomas, Chapter 548, 
          Statutes of 2008) establishes in the DCA the SACC, which would be 
          comprised of the executive officers of DCA's healing arts licensing 
          boards, as specified, to formulate no later than January 1, 2010 
          uniform and specific standards relating to substance-abusing 
          licensees.  SB 1441 also specifies that the program managers of the 
          diversion programs of specified boards are responsible for certain 
          duties previously assigned to the diversion evaluation committees 
          under those programs, and provides that diversion evaluation 
          committees created by any of the specified boards or committees 
          operate in an advisory role to the program manager of the diversion 
          program.

         AB 2443  (Nakanishi) required Medical Board to establish a program to 
          promote the issues concerning physician and surgeon well-being and 
          would have required the program to include, among other things, an 
          examination and evaluation of existing wellness education for 
          medical students, postgraduate trainees, and licensed physicians and 
          surgeons and an outreach effort to promote physician and surgeon 
          wellness.  The bill would have required the program to be developed 
          within existing resources of Medical Board.  AB 2443 was vetoed by 
          the Governor and in his veto message stated that while this bill is 
          well-intentioned, it detracts from the mission and purpose of the 
          Board.  The Board should be focused on successfully implementing its 
          current licensure, regulatory and enforcement activities before 
          attempting to offer new programs outside its highest priority - 
          protecting the health and safety of consumers.

         SB 761  (Ridley-Thomas, 2007), which died in the Assembly 





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          Appropriations Committee, would have extended the sunset date of the 
          Physician Diversion Program to July 1, 2010.

         SB 231  (Figueroa, Chapter 674, Statutes of 2005), had various 
          provisions relating to Medical Board and specifically established a 
          January 1, 2009 sunset date for the Diversion Program.

         5.Policy Issue  :  Does the Committee Have a Home?  Legislation in the 
          past has attempted to place the Committee and the PHP under 
          different agencies; the Department of Public Health and then the 
          State and Consumer Services Agency.  It is unclear if the Committee 
          would be the ultimate responsibility of the Department of Consumer 
          Affairs and under its jurisdiction, or if the Department would only 
          have responsibility as specified under this Act, such as approving 
          the vendor for implementing PHP.  

         6.Policy Issue  :  There is currently no funding mechanism for the 
          Committee and the PHP.
        It is the intent of the Sponsors to try and resolve the funding issue 
          in the Appropriations Committee.  In the past, it was anticipated 
          that licensing fees of the MBC would be used to fund this program.  
          If Board's fees are still intended to be utilized, then the 
          Committee may wish to review such a proposal since there may be an 
          impact to the Budget and funding of the Medical Board.

        7.Suggested Author's Amendments:
        
           a)   The Committee should be required to comply with the 
             Administrative Procedures Act in promulgating any rules or 
             regulations, as specified.  Suggest the following changes:

           On Page 6, insert after the Public Records Act, the following:  
             "  and California Administrative Procedures Act (Chapter 5 
             (commencing with Section 11500) of Division 3 or Title 2 of the 
             Government Code).  " 

           b)   To clarify that the rules adopted by the Committee are 
             consistent with Section 315 of the BPC (as well as with other 
             standards and guidelines), suggest the following changes:

           On Page 6, line 4, insert after "with" the following:  "  the Uniform 
             Substance Abuse Standards as adopted by the Substance Abuse 
             Coordination Committee of the Department of Consumer Affairs,  "  
            
           On Page 6, line 11, strike, "standards established" and insert the 
             following:  "  the Uniform Substance Abuse Standards as adopted by 





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             the Substance Abuse Coordination Committee of the Department of 
             Consumer Affairs,  "

           

           On Page 6, line 13, insert after "and community standards of 
             practice," following:  
           "  the Uniform Substance Abuse Standards as adopted by the Substance 
             Abuse Coordination Committee of the Department of Consumer 
             Affairs,  "  
            
           c)   To make more clear that the Medical Board is to be notified 
              immediately  when a participating physician violates terms of the 
             contract, suggest the following change:

           On Page 6, line 39, strike "promptly" and insert the word 
             "  immediately  "
           
           d)   To clarify that the PHP is to have a system in place to report 
             physicians to the Medical Board who fail to meet the requirements 
             of the PHP, as specified, suggest the following change:

           On Page 6, line 39 and 40, and on Page 7, line 1, after "surgeons" 
             strike "unable to practice safely to the board when, contrary to 
             agreements with the Physician Health Program, they continue to 
             practice unsafely" and instead insert the following:  "  who fail 
             to meet the requirements of the program as provided in 
             subdivision (e) of Section 2346.  "  

           e)   Since the Committee would at least have to adopt rules 
             regarding the standards, as stated above, a technical correction 
             is needed on Page 7, line 21, by striking "if any."   

           f)   A technical correction is also needed regarding a reference to 
             Section 2346, on Page 7, line 15, and Page 9, line 29.  The 
             reference should be to subsection "(e)" rather than subsection 
             "(c)."

           g)   It should be clear that the agreement made by the physician 
             and surgeon who participates in the PHP includes requirements and 
             conditions which are consistent with the rules adopted by the 
             Committee pursuant to subsection (e) of Section 2343.

           On Page 7, line 37, after "program" insert the following:  "  shall 
             be consistent with the rules adopted by the committee pursuant to 
             subsection (e) of Section 2343, and  " 





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           h)   The PHP should be required to report to the Committee  and the 
             Medical Board  if the participant fails to meet the requirements 
             of the program as specified in subsection (e) (1) of Section 
             2346.  There should not be a 2-day delay for the PHP to report to 
             the Board.  Suggest the following:

           On Page 8, line 25, after "participant to the" insert: "  board and 
             the  "
           
           On Page 8, strike lines 36 and 37.

           i)   It should be clarified that any violation by a participant in 
             the PHP of the Uniform Substance Abuse Standards adopted by the 
             Committee, pursuant to subsection (e) of Section 2343, shall 
             require the PHP to report the name of the participant to the 
             Committee and the Medical Board.  Suggest the following 
             additional language to subsection (e) of Section 2346:


           On Page 8, line 28, after "or biological testing when required," 
             insert the following:  "  or a  violation  of the Uniform Substance 
             Abuse Standards adopted pursuant to subsection (e) of Section 
             2343.  "   

           j)   It should be clear that any information regarding any 
             violation pursuant to subsection (e) (1) should be made available 
             to the Medical Board to pursue disciplinary action if necessary.

           On Page 8, line 36, insert the following:  "(2)   Notwithstanding 
             Section 2344 (f), the report shall provide sufficient information 
             to permit the board to assess whether discipline or other action 
             is required to protect the public  ."

           On Page 8, line 39, after Section 2344, insert: "  subdivision (e) 
             (1) of this Section  "  

        
        SUPPORT AND OPPOSITION:
        
         Support:  (Co-Sponsors)

        California Hospital Association 
        California Medical Association
        California Psychiatric Association
        California Society of Addiction Medicine.  





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         Opposition:  

        None on file as of April 18, 2012.



        Consultant:Bill Gage