BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       SB 289
          AUTHOR:        Hernandez
          AMENDED:       August 23, 2012
          HEARING DATE:  August 29, 2012
          CONSULTANT:    Rubin

          PURSUANT TO SENATE RULE 29.10

           SUBJECT  :  Clinical laboratory techniques: training and 
          instruction.
           
          SUMMARY  :  Specifies the type of organization that may be 
          approved by the Department of Public Health (DPH) to provide 
          clinical laboratory scientist (CLS) programs, and permits 
          DPH-approved CLS programs to use multiple clinical laboratories 
          to provide training, as specified.

          Existing law:
          1.Establishes Laboratory Field Services within DPH to provide 
            for licensing and registration services for clinical 
            laboratories and clinical laboratory licensees, as specified.

          2.Authorizes DPH to approve schools seeking to provide 
            instruction in clinical laboratory technique, which in the 
            judgment of DPH will provide instruction adequate to prepare 
            individuals to meet the requirements for licensure or 
            performance of duties, as specified.  Requires DPH to 
            establish by regulation the ratio of licensed clinical 
            scientists to licensed trainees on the staff of the laboratory 
            approved as a school and the minimum requirements for training 
            in any specialty or in the entire field of clinical laboratory 
            science or practice.  Requires that applications for approval 
            be made on forms provided by DPH.

          3.Provides that it is unlawful for any person to operate a 
            school or conduct any course for the purpose of training or 
            preparing persons to perform duties, as specified, without 
            first having secured the approval of the DPH.

          4.Establishes in federal law, the Clinical Laboratory 
            Improvement Amendments of 1988 (CLIA), to regulate 
            laboratories that perform testing on human specimens, 
            including the provision of laboratory standards for 
                                                         Continued---



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            proficiency testing, facility administration, personnel 
            qualifications, and quality control.  Applies standards to all 
            settings, including commercial, hospital, or physician office 
            laboratories.
          
          This bill:
          1.Permits DPH to approve the following entities to provide 
            instruction in clinical laboratory technique, as specified:
             a.   A California licensed clinical laboratory;
             b.   An accredited college or university in the United States 
               (U.S.);
             c.   A U.S. military medical laboratory specialist program of 
               at least 52 weeks duration; and,
             d.   A laboratory owned and operated by the U.S. government.

          2.Permits CLS programs, upon approval by DPH, to use multiple 
            clinical laboratories to provide training in clinical 
            laboratory technique, provided:
             a.   The program is permitted to apportion the clinical 
               training among multiple clinical laboratories in any 
               percentage as long as the total training meets the 
               requirements established by DPH.
             b.   Each clinical laboratory has been approved by DPH as 
               part of the program in accordance with regulations. The 
               program notifies DPH in writing within 30 days of a change 
               in clinical laboratories used by the program to provide 
               training.
             c.   The director of the approved program is responsible for 
               notifying DPH in advance of the start and end date of 
               training for each trainee. The program coordinates with DPH 
               in meeting established requirements.
             d.   The director of the approved program ensures that all of 
               DPH's requirements for training and affiliation are met.
             e.   The program has submitted an application on forms 
               provided by DPH for approval.

          1.Revises and reorganizes existing definitions and makes other 
            technical, non-substantive, and conforming changes.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee analysis, negligible state fiscal effect.

           PRIOR ACTIONS  :
          Assembly Business, Professions and Consumer Protection:8-0
          Assembly Health:                        16-0
          Assembly Appropriations:                17-0




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          Assembly Floor:                         80-0

           COMMENTS  :  
           1.Author's statement.  SB 289 would clarify that an institution 
            can coordinate the 50-week CLS training period among different 
            clinical sites. Historically, the 50-week course has been 
            completed at one site, and regulations governing this area are 
            frustratingly vague. This bill allows flexibility among 
            participating laboratories, and a more equitable sharing of 
            costs associated with the CLS training program, resulting in 
            more CLSs in the workplace.

          2.The CLS profession.  According to an April 2007 report by the 
            Health Workforce Tracking Collaborative, clinical laboratory 
            science refers to a range of complex laboratory tests and 
            procedures that involve knowledge of chemistry, biology, 
            microbiology, molecular biology, hematology, immunology, 
            toxicology, histology, and cytogenetics. The CLS is a 
            generalist, qualified to conduct necessary tests and 
            procedures across this entire range of specialized areas. A 
            February 2011 report by the California Hospital Association, 
            (CHA) titled Critical Roles: California's Allied Health 
            Workforce (CHA Report), describes CLSs as an integral part of 
            the health care team whose diagnostic assessments help 
            physicians determine treatment plans.

          3.CLS training program approval.  DPH has the authority to 
            approve schools seeking to provide instruction in clinical 
            laboratory technique, and has issued regulations specifying 
            criteria that schools must meet to gain approval. The 
            regulations specify that a training school must have a minimum 
            of two full-time actively employed persons licensed as a CLT, 
            clinical laboratory bioanalyst, physician and surgeon, or 
            appropriate laboratory specialty; and a ratio of clinical 
            laboratory personnel to trainees of 2-to-1 or greater. 
            Furthermore, the minimum requirements for approval of 
            laboratories to employ CLS trainees include: adequate space 
            and necessary equipment; workload requirements; and 52 weeks 
            of training apportioned among biochemistry, hematology, 
            pretransfusion procedures, urinalysis, bacteriology, serology, 
            parasitology, miscellaneous topics, and review. Colleges or 
            universities accredited by the Western College Association or 
            the Northwest Association of Secondary and Higher Schools or 
            an essentially equivalent accrediting agency conducting CLS 
            training courses are considered approved by DPH, although 




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            specific approval is required when training is carried out in 
            cooperation with laboratories that do not meet these 
            accrediting criteria.

          4.CLS shortage and impact.  According to the CHA Report, a 
            survey of CHA-member hospitals conducted in 2010 revealed that 
            the top long-term concern of respondents was the aging 
            workforce. Of the 14 occupations included in the survey, CLS 
            had the highest average employee age and the greatest number 
            of employees eligible for retirement. According to the CHA 
            Report, 844 CLSs were projected to be eligible for retirement 
            between 2010 and 2015, representing nearly one-third of the 
            number of CLS full-time equivalents reported by respondents. 
            In comparison, California currently only graduates 
            approximately 125 CLSs annually.
               
            The Health Workforce Development Council (HWDC), a 
            Sub-Committee of the California Workforce Investment Board, 
            assessed the future need for CLAs and the impact of CLA 
            shortages in its September 2011 Final Report (HWDC Report). 
            According to the report, the current and projected future 
            shortage of CLSs has wide-ranging impacts on the delivery of 
            primary care. In particular, the shortage results in decreased 
            in-house capacity which leads to increased costs for 
            hospitals. These higher costs manifest in many ways, 
            including: increased costs for recruitment of new CLSs; the 
            costs of sending tests to external laboratories when demand 
            exceeds in-house processing capacity; testing delays; 
            increased errors such as mislabeling of specimens and 
            conducting incorrect tests; and, increased cost for California 
            as lab work is sent to out-of-state processing centers.

          5.Education and training capacity for CLSs.  The HWDC Report 
            assessed the educational capacity for CLSs in California to be 
            of significant concern. The HWDC Report identified 13 programs 
            operating in California: four based in academic institutions 
            and nine in hospitals. In comparison, Texas has a population 
            that is two-thirds the size of California's, but has twice as 
            many training programs that produce five times as many 
            graduates; Michigan has half the population of California but 
            has 12 training programs that produce three times as many 
            graduates. The HWDC Report cites as reasons for the paucity of 
            training sites: long approval time from the state; program 
            requirements that are so prescriptive that the application is 
            a deterrent for sites to consider offering spaces to students; 
            staffs stretched thin even when training is just for the 




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            clinical portion; substantial cost to the organization to 
            train CLSs; and the inability of many smaller labs to offer 
            training programs because they offer a limited scope of 
            services, thus rendering them unqualified to offer training 
            slots even for those services they do provide. According to 
            the author, each CLS trainee costs between $55,000 and 
            $110,000 a year. 

          6.Related legislation. AB 2214 (Monning), among other 
            provisions, would have required clinical laboratory licensees, 
            as specified, to report practice status to DPH upon issuance 
            and renewal of license. AB 2214 was held on suspense in the 
            Senate Appropriations Committee.
               
          7.Support.  CHA states that the shortage of CLSs is one of the 
            most pressing workforce issues currently facing hospitals and 
            other certified clinical laboratories, and that the number of 
            CLSs pending retirement in California indicates and immediate 
            risk in the next three years. According to CHA, smaller labs, 
            especially in rural areas, may be inclined to train CLS 
            students, but do not have the resources to take on obligations 
            of being an approved "training entity" under current law. 
            Giving DPH the authority to approve CLS training programs that 
            use a consortium model, but do not require one site to take on 
            the majority of the training, will allow multiple hospitals to 
            work together to provide portions of clinical experience, 
            thereby sharing the responsibility and significant costs of 
            training. The Blood Centers of California (BCC) indicates that 
            it has been affected by the shortage of various licensed 
            health care providers in California, but particularly hard hit 
            by the shortage of CLSs over the last five or more years. BCC 
            adds that CLSs hired by blood centers have to meet a high 
            standard because of the high complexity and sophisticated 
            testing required to assure the safety of the blood supply.
               
          8.Support if amended.  The California Clinical Laboratory 
            Association (CCLA) proposes an amendment that, if taken and in 
            the event that California is granted exemption from CLIA, 
            would allow qualified non-doctoral persons to serve as 
            directors of clinical and public health laboratories 
            performing high complexity testing, as categorized under CLIA, 
            if they are licensed to direct those laboratories under 
            California law. CCLA states that this amendment would, among 
            other effects, help to decrease health care spending, ensure 
            adequate local public health laboratory support for response 




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            to communicable disease events, and ensure an adequate supply 
            of local public health laboratory directors.
          
           SUPPORT AND OPPOSITION  :
          Support:  Blood Centers of California
                    California Hospital Association

          Oppose:   None received.

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