LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6908 NOTE PREPARED: Mar 9, 2022 BILL NUMBER: SB 239 BILL AMENDED: Mar 8, 2022 SUBJECT: Practitioner Advertising. FIRST AUTHOR: Sen. Boehnlein BILL STATUS: Enrolled FIRST SPONSOR: Rep. Zent FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: Practitioner Identification and Advertising– The bill provides that, beginning January 1, 2023, certain practitioners are subject to disciplinary sanctions if the practitioner communicates or disseminates to the general public an advertisement that includes deceptive or misleading information or does not prominently state the profession or license held by the practitioner. It establishes certain exceptions. Unlawful Practice of Medicine– The bill provides, for purposes of the law prohibiting the unlawful practice of medicine or osteopathic medicine, that "the practice of medicine or osteopathic medicine" includes attaching to an individual's name additional terms or other specified words that identify a member of a medical specialty. The bill establishes certain exceptions. Use of Abbreviations to Indicate Practice of Medicine or Osteopathic Medicine– The bill specifies that the exclusions to the practice of medicine and osteopathic medicine do not allow a person to use words or abbreviations that indicate or induce an individual to believe that the person is engaged in the practice of medicine or osteopathic medicine. Effective Date: July 1, 2022. Explanation of State Expenditures: Practitioner Identification and Advertising– A violation of the bill’s requirements would be subject to administrative orders and procedures by the board or commission within the Professional Licensing Agency (PLA) that governs the violating practitioner’s profession. The nature of the violation and the corrective actions of the practitioner will determine the cost to PLA. Additionally, PLA would likely need to notify license holders of the requirements established by the bill and post updates to the PLA website. These actions are within the PLA’s routine administrative functions and should be able to be SB 239 1 implemented with no additional appropriations. Unlawful Practice of Medicine– A violation of this provision would trigger an existing Level 5 felony for unlawful practice of medicine or osteopathic medicine. A Level 5 felony is punishable by a prison term ranging from 1 to 6 years, with an advisory sentence of 3 years. The sentence depends on mitigating and aggravating circumstances. Assuming offenders can be housed in existing facilities with no additional staff, the marginal cost for medical care, food, and clothing is approximately $4,333 annually, or $11.87 daily, per prisoner. However, any additional expenditures are likely to be small. Explanation of State Revenues: Practitioner Identification and Advertising– If a violation occurs, the PLA may take an action that could impact state revenue. If the violator has a license denied or revoked, fee revenue would decrease to the General Fund. Health care practitioner license fees range between $40 and $200 biennially. The PLA may also impose a fine of up to $1,000, which would be deposited in the General Fund. Unlawful Practice of Medicine– If additional court cases occur and fines are collected, revenue to both the Common School Fund (from criminal fines) and the state General Fund (from court fees) would increase. The maximum fine for a Level 5 felony is $10,000. However, any additional revenues would likely be small. Explanation of Local Expenditures: Unlawful Practice of Medicine– If more defendants are detained in county jails prior to their court hearings, local expenditures for jail operations may increase. However, any additional expenditures would likely be small. Explanation of Local Revenues: Unlawful Practice of Medicine– If additional court actions occur and a guilty verdict is entered, local governments would receive revenue from court fees. However, the amounts would likely be small. State Agencies Affected: Professional Licensing Agency; Department of Correction. Local Agencies Affected: Local law enforcement, trial courts. Information Sources: IC 25-1-9-9; Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and Appropriations, FY 2021. Fiscal Analyst: Chris Baker, 317-232-9851. SB 239 2