SB 0499 - Fiscal Note

Fiscal Note - SB 0499 - Creates new civil action against psychotherapists and allows 3rd parties to file complaints

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2481-02

BILL NO. SCS for SB 499

SUBJECT: Psychotherapists; Civil Procedure

TYPE: Original

DATE: January 30, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Courts Administrator (CTS) 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 budget.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business

Small businesses could be fiscally impacted by this proposal, as 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 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.

DESCRIPTION (continued)

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

Jeanne Jarrett, CPA

Director

January 30, 1998