This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0456 - Creates New Civil Action Against Psychotherapists & Allows 3rd Parties to File Complaints Before State Com. of Ps

L.R. NO.  1755-01
BILL NO.  SB 456
SUBJECT:  Psychologists: Licenses - Professional
TYPE:     Original
DATE:     March 14, 1997


                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000
Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Courts Administrator assume the proposed
legislation could result in a slight increase in the number of civil cases
filed; however, they would not anticipate any additional costs to the
judiciary.

Officials from the Department of Economic Development - Division of
Professional Registration (DPR) assume the proposed legislation would have no
fiscal impact on their agency.


FISCAL IMPACT - State Government     FY 1998   FY 1999   FY 2000
                                    (10 Mo.)

                                          $0        $0        $0


FISCAL IMPACT  - Local Government    FY 1998   FY 1999   FY 2000
                                    (10 Mo.)

                                          $0        $0        $0

FISCAL IMPACT - Small Business

Small businesses could be fiscally impacted by this proposal, since an
employer of a psychotherapist could be held liable by patients and former
patients of their employees in certain situations.


DESCRIPTION

The proposed legislation would allow interested third parties to file
complaints, present evidence, or appear before the State Committee of
Psychologists.  An interested third party would include a parent, guardian or
person who is financially responsible for a person who receives treatment
from a psychologist.

This proposal would remove the exemption status for hypnotherapists and make
Chapter 337 applicable to them also.

The proposed legislation would create a cause of action for sexual
exploitation by a psychotherapist.  Sexual exploitation occurs when a
psychotherapist engages in sexual contact with a patient under the guise of
therapy, or when the patient is emotionally dependent on the psychotherapist.
A psychotherapist is any person purporting to perform professional counseling
of a mental or emotional condition, including physicians, psychologists,
nurses, drug and alcohol counselors, social workers, marriage and family
therapists, and clergy.  "Sexual contact" and "emotionally dependent" would
be defined.

Under this proposal, an employer of a psychotherapist could also be held
liable for failing to take reasonable action when it has reason to know that
a psychotherapist has engaged in sexual contact with a patient or a former
patient.  Employers would be required to make inquiries to a
psychotherapist's former employers regarding sexual contact with patients.
Further, those former employers may be liable if they fail to respond to such
inquiries.  No cause of action would arise, nor could a state licensing board
take disciplinary action, when an employer complies with these requirements
in good faith.  The proposal would also detail the parameters of discovery
and the admissibility of evidence regarding the plaintiff's sexual history.
This crime would have a five-year statute of limitations.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Office of State Courts Administrator
Department of Economic Development - Division of Professional Registration