SENATE BILL No. 858 October 27, 1999, Introduced by Senators STILLE, SCHWARZ, NORTH and BULLARD and referred to the Committee on Economic Development, International Trade and Regulatory Affairs. A bill to amend 1978 PA 368, entitled "Public health code," by amending sections 16221 and 16226 (MCL 333.16221 and 333.16226), section 16221 as amended by 1998 PA 227 and section 16226 as amended by 1998 PA 109. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 16221. The department may investigate activities 2 related to the practice of a health profession by a licensee, a 3 registrant, or an applicant for licensure or registration. The 4 department may hold hearings, administer oaths, and order rele- 5 vant testimony to be taken and shall report its findings to the 6 appropriate disciplinary subcommittee. The disciplinary subcom- 7 mittee shall proceed under section 16226 if it finds that 1 or 8 more of the following grounds exist: 01464'99 CPD 2 1 (a) A violation of general duty, consisting of negligence or 2 failure to exercise due care, including negligent delegation to 3 or supervision of employees or other individuals, whether or not 4 injury results, or any conduct, practice, or conditionwhich5 THAT impairs, or may impair, the ability to safely and skillfully 6 practice the health profession. 7 (b) Personal disqualifications, consisting of 1 or more of 8 the following: 9 (i) Incompetence. 10 (ii) Subject to sections 16165 to 16170a, substance abuse as 11 defined in section 6107. 12 (iii) Mental or physical inability reasonably related to and 13 adversely affecting the licensee's ability to practice in a safe 14 and competent manner. 15 (iv) Declaration of mental incompetence by a court of compe- 16 tent jurisdiction. 17 (v) Conviction of a misdemeanor punishable by imprisonment 18 for a maximum term of 2 years; a misdemeanor involving the ille- 19 gal delivery, possession, or use of a controlled substance; or a 20 felony. A certified copy of the court record is conclusive evi- 21 dence of the conviction. 22 (vi) Lack of good moral character. 23 (vii) Conviction of a criminal offense under sections 520a 24 to 520l of the Michigan penal code, 1931 PA 328, MCL 750.520a to 25 750.520l. A certified copy of the court record is conclusive 26 evidence of the conviction. 01464'99 3 1 (viii) Conviction of a violation of section 492a of the 2 Michigan penal code, 1931 PA 328, MCL 750.492a. A certified copy 3 of the court record is conclusive evidence of the conviction. 4 (ix) Conviction of a misdemeanor or felony involving fraud 5 in obtaining or attempting to obtain fees related to the practice 6 of a health profession. A certified copy of the court record is 7 conclusive evidence of the conviction. 8 (x) Final adverse administrative action by a licensure, reg- 9 istration, disciplinary, or certification board involving the 10 holder of, or an applicant for, a license or registration regu- 11 lated by another state or a territory of the United States, by 12 the United States military, by the federal government, or by 13 another country. A certified copy of the record of the board is 14 conclusive evidence of the final action. 15 (xi) Conviction of a misdemeanor that is reasonably related 16 to or that adversely affects the licensee's ability to practice 17 in a safe and competent manner. A certified copy of the court 18 record is conclusive evidence of the conviction. 19 (c) Prohibited acts, consisting of 1 or more of the 20 following: 21 (i) Fraud or deceit in obtaining or renewing a license or 22 registration. 23 (ii) Permitting the license or registration to be used by an 24 unauthorized person. 25 (iii) Practice outside the scope of a license. 26 (iv) Obtaining, possessing, or attempting to obtain or 27 possess a controlled substance as defined in section 7104 or a 01464'99 4 1 drug as defined in section 7105 without lawful authority; or 2 selling, prescribing, giving away, or administering drugs for 3 other than lawful diagnostic or therapeutic purposes. 4 (d) Unethical business practices, consisting of 1 or more of 5 the following: 6 (i) False or misleading advertising. 7 (ii) Dividing fees for referral of patients or accepting 8 kickbacks on medical or surgical services, appliances, or medica- 9 tions purchased by orinON behalf of patients. 10 (iii) Fraud or deceit in obtaining or attempting to obtain 11 third party reimbursement. 12 (e) Unprofessional conduct, consisting of 1 or more of the 13 following: 14 (i) Misrepresentation to a consumer or patient or in obtain- 15 ing or attempting to obtain third party reimbursement in the 16 course of professional practice. 17 (ii) Betrayal of a professional confidence. 18 (iii) Promotion for personal gain of an unnecessary drug, 19 device, treatment, procedure, or service. 20 (iv) Directing or requiring an individual to purchase or 21 secure a drug, device, treatment, procedure, or service from 22 another person, place, facility, or business in which the 23 licensee has a financial interest. 24 (f) Failure to report a change of name or mailing address 25 within 30 days after the change occurs. 26 (g) A violation, or aiding or abetting in a violation, of 27 this article or of a rule promulgated under this article. 01464'99 5 1 (h) Failure to comply with a subpoena issued pursuant to 2 this part, failure to respond to a complaint issued under this 3 article or article 7, failure to appear at a compliance confer- 4 ence or an administrative hearing, or failure to report under 5 section 16222 or 16223. 6 (i) Failure to pay an installment of an assessment levied 7 pursuant tosection 2504 ofthe insurance code of 1956, 1956 PA 8 218, MCL500.2504500.100 TO 500.8302, within 60 days after 9 notice by the appropriate board. 10 (j) A violation of section 17013 or 17513. 11 (k) Failure to meet 1 or more of the requirements for licen- 12 sure or registration under section 16174. 13 (l) A violation of section 17015 or 17515. 14 (m) A violation of section 17016 or 17516. 15 (n) Failure to comply with section 9206(3). 16 (o) A violation of section 5654 or 5655. 17 (p) A violation of section 16274. 18 (Q) DEFAULTING ON OR OTHERWISE FAILING TO PAY AN EDUCATIONAL 19 LOAN TAKEN OUT BY THE LICENSEE, REGISTRANT, OR APPLICANT THAT IS 20 GUARANTEED BY THE STATE OR FEDERAL GOVERNMENT. 21 Sec. 16226. (1) After finding the existence of 1 or more of 22 the grounds for disciplinary subcommittee action listed in sec- 23 tion 16221, a disciplinary subcommittee shall impose 1 or more of 24 the following sanctions for each violation: 25 26 Violations of Section 16221 Sanctions 01464'99 6 1 Subdivision (a), (b)(ii), Probation, limitation, denial, 2 (b)(iv), (b)(vi), or suspension, revocation, 3 (b)(vii) restitution, community service, 4 or fine. 5 Subdivision (b)(viii) Revocation or denial. 6 Subdivision (b)(i), Limitation, suspension, 7 (b)(iii), (b)(v), revocation, denial, 8 (b)(ix), probation, restitution, 9 (b)(x), or (b)(xi) community service, or fine. 10 Subdivision (c)(i) Denial, revocation, suspension, 11 probation, limitation, commu- 12 nity service, or fine. 13 Subdivision (c)(ii) Denial, suspension, revocation, 14 restitution, community service, 15 or fine. 16 Subdivision (c)(iii) Probation, denial, suspension, 17 revocation, restitution, commu- 18 nity service, or fine. 19 Subdivision (c)(iv) Fine, probation, denial, 20 or (d)(iii) suspension, revocation, commu- 21 nity service, 22 or restitution. 23 Subdivision (d)(i) Reprimand, fine, probation, 24 or (d)(ii) community service, denial, 25 or restitution. 26 Subdivision (e)(i) Reprimand, fine, probation, 01464'99 7 1 limitation, suspension, 2 community service, denial, or 3 restitution. 4 Subdivision (e)(ii) Reprimand, probation, 5 or (h) suspension, restitution, commu- 6 nity service, denial, or fine. 7 Subdivision (e)(iii) Reprimand, fine, probation, 8 or (e)(iv) suspension, revocation, limita- 9 tion, community service, 10 denial, or restitution. 11 Subdivision (f) Reprimand or fine. 12 Subdivision (g) Reprimand, probation, denial, 13 suspension, revocation, limita- 14 tion, restitution, community 15 service, or fine. 16 Subdivision (i) Suspension or fine. 17 Subdivision (j) or (o) Reprimand or fine. 18 Subdivision (k) Reprimand, denial, or 19 limitation. 20 Subdivision (l) or (n) Denial, revocation, restitution, 21 probation, suspension, limita- 22 tion, reprimand, or fine. 23 Subdivision (m) Revocation or denial. 24 Subdivision (p) Revocation. 25 SUBDIVISION (Q) DENIAL. 26 (2) Determination of sanctions for violations under this 27 section shall be made by a disciplinary subcommittee. If, during 01464'99 8 1 judicial review, the court of appeals determines that a final 2 decision or order of a disciplinary subcommittee prejudices sub- 3 stantial rights of the petitioner for 1 or more of the grounds 4 listed in section 106 of the administrative procedures act of 5 1969, 1969 PA 306, MCL 24.306, and holds that the final decision 6 or order is unlawful and is to be set aside, the court shall 7 state on the record the reasons for the holding and may remand 8 the case to the disciplinary subcommittee for further 9 consideration. 10 (3) A disciplinary subcommittee may impose a fine of up to, 11 but not exceeding, $250,000.00 for a violation of 12 section 16221(a) or (b). 13 (4) A disciplinary subcommittee may require a licensee or 14 registrant or an applicant for licensure or registration who has 15 violated this article or article 7 or a rule promulgated under 16 this article or article 7 to satisfactorily complete an educa- 17 tional program, a training program, or a treatment program, a 18 mental, physical, or professional competence examination, or a 19 combination of those programs and examinations. 01464'99 Final page. 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