BILL ANALYSIS Ó AB 1147 Page 1 Date of Hearing: August 28, 2014 ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER PROTECTION Susan A. Bonilla, Chair AB 1147 (Bonilla, Gomez & Holden) - As Amended: August 22, 2014 SUBJECT : Massage therapy. SUMMARY : Substantially revises existing law regulating certified massage therapy professionals, including deletion of the preemption of local massage-related ordinances as they relate to land use, a two-year extension of the sunset date of the California Massage Therapy Council (CAMTC), reconstitution of CAMTC's board of directors (Board), an increase in educational standards for certified massage professionals, and the creation of new protections for consumers of massage services. Specifically, this bill : 1)Clarifies that a city or county may not prevent an individual licensed or otherwise authorized under the Business and Professions Code (BPC) from engaging in their regulated profession. 2)Establishes the Massage Therapy Act (Act). 3)Defines the terms "approved school," "certificate," "compensation," "Council," "massage," "massage practitioner," "massage therapist," as specified. 4)Defines a "massage establishment" or "establishment" to mean " a fixed location where massage is performed for compensation, excluding those locations where massage is only provided on an out-call basis." 5)Defines a "sole provider" to mean "a massage business where the owner owns 100% of the business, is the only person who provides massage services for compensation for that business pursuant to a valid and active certificate, as specified, and has no other employees." 6)Establishes CAMTC to carry out the responsibilities and duties of the Act, and authorizes CAMTC to develop rules and bylaws in addition to policies and procedures to carry out the duties AB 1147 Page 2 of the Act. 7)Authorizes CAMTC to require background checks for all employees, contractors, volunteers, and Board members as a condition of their employment, formation of a contractual relationship, or participation in CAMTC activities. 8)Authorizes CAMTC to determine whether information provided to them in relation to certification of an applicant is true and correct and meets the specified requirements, and if CAMTC has any reason to question whether the information provided is true or correct or meets the specified requirements, CAMTC may make any investigation it deems necessary to establish that the information received is accurate and specifies that the applicant has the burden to prove that he or she is entitled to certification. 9)Repeals the authority, structure and composition of CAMTC's Board on September 15, 2015. 10)Specifies that the terms of 13 new members of the Board will begin on September 15, 2015, with new Board members, each of whom shall serve a term of four years, being chosen in the following manner: a) One member shall be a representative of the League of California Cities; b) One member shall be a representative of the California Police Chiefs Association; c) One member shall be a representative of the California State Association of Counties; d) One member shall be a representative of an anti-human trafficking organization, to be determined by CAMTC; e) One member shall be appointed by the Office of the Chancellor of the Community Colleges. f) One public member shall be appointed by the director of DCA; g) One member appointed by the California Association of Private Postsecondary Schools; AB 1147 Page 3 h) One member shall be appointed by the American Massage Therapy Association, California Chapter, who is a California-certified massage therapist or practitioner, is a California resident, and has been practicing massage for at least three years; i) One member shall be a public health official representing a city, county or city and county health department; j) One member who shall be a certified massage therapist (CMT) or a certified massage practitioner (CMP) who is a California resident who has practiced massage for at least three years prior to the appointment, selected by a professional society, association, or other entity, as specified; aa) Three additional members appointed by the Board at a duly held Board meeting in accordance with the Board's bylaws, one of whom shall be an attorney who represents a city in the state, and one of whom shall represent a massage business entity that has been operating in the state for at least three years, as specified. 11)Requires the Board to establish fees reasonably related to the cost of providing services and carrying out its ongoing responsibilities and duties, as specified. 12)Provides that the fee for certification or renewal may be no higher than $300. 13)Authorizes the Board to adopt additional policies and procedures that provide greater transparency to certificate holders and the public than required by the Bagley-Keene Open Meeting Act. 14)States that prior to holding a meeting to vote upon a proposal to increase the certification fees, CAMTC shall provide at least 90 days' notice of the meeting, as specified, and requires CAMTC to update its Internet Web site and notify all certificate holders and affected applicants by email within 14 days if CAMTC increases certification fees. 15)States that the protection of the public is the highest AB 1147 Page 4 priority for CAMTC in exercising its certification and disciplinary authority, and any other functions, and whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public is paramount. 16)Revises and recasts the educational requirements for certification to require all applicants to complete curricula in massage and related subjects totaling a minimum of 500 hours from CAMTC approved schools, and specifies that of those 500 hours, a minimum of 100 hours must address anatomy and physiology, contraindications, health and hygiene, and business ethics. 17)Requires all applicants for certification to take and pass a massage and bodywork competency assessment and examination, as specified. 18)Requires an applicant for certification to successfully pass a background investigation, as specified, and pay the required fees. 19)Permits CAMTC to issue a certificate to an applicant who meets specified qualifications, if the applicant holds a valid registration, certification, or license from any other state whose licensure requirements meet or exceed those established by the Act, as specified. 20)Requires a certificate holder to surrender his or her certificate and any identification card issued by CAMTC if his or her certificate is suspended or revoked by CAMTC. 21)Prohibits CAMTC from accepting applications to practice as a CMP on or after January 1, 2015, clarifies that applications accepted prior to January 1, 2015 to practice as a CMP may be renewed without any additional educational requirements, and permits a person who was issued a conditional certificate to practice as a massage practitioner, as specified. 22)Provides that a certificate issued by CAMTC is subject to renewal every two years, and authorizes CAMTC to provide for the late renewal of a certificate or registration. 23)Requires CAMTC, prior to issuing a certificate to an applicant or designating a custodian of records, to require AB 1147 Page 5 the applicant or custodian of records to submit fingerprint images, as specified. 24)Establishes the process for obtaining the record of state and federal level convictions and of state and federal level arrests, as specified. 25)Permits CAMTC to receive arrest notifications and other background material about applicants and certificate holders from a city, county, or city and county. 26)Specifies that CAMTC may discipline an owner or operator of a massage business or establishment who is certified by CAMTC for the conduct of all individuals providing massage for compensation on the business premises. 27)Requires a certificate holder to: a) Display his or her original certificate wherever he or she provides massage for compensation and have his or her identification card in his or her possession while providing massage for compensation; b) Provide his or her full name and certificate number upon request at the location where he or she is providing massage for compensation; c) Include the name under which he or she is certified and his or her certificate number in any and all advertising of massage for compensation; and, d) Notify CAMTC of his or her primary email address, if any, and notify CAMTC within 30 days of a change of the primary email address, except as specified. 28)Expands the definition of unprofessional conduct to include: a) Engaging in sexually suggestive advertising; b) Engaging in any form of sexual activity on the premises of a massage establishment where massage is provided for compensation, excluding a residence; c) Engaging in sexual activity while providing massage services for compensation; AB 1147 Page 6 d) Practicing massage on a suspended certificate or practicing outside of the conditions of a restricted certificate; e) Providing massage of the genitals or anal region; f) Providing massage of female breasts without the written consent of the person receiving the massage and a referral from a licensed California health care provider; g) Procuring or attempting to procure a certificate by fraud, misrepresentation, or mistake; h) Failing to fully disclose all information requested on the application; and, i) Dressing while engaged in the practice of massage for compensation, or while visible to clients, in a massage establishment in any of the following: i) Attire that is transparent or see-through, or that substantially exposes the certificate holder's undergarments; ii) Swim attire, if not providing a water-based massage modality approved by CAMTC; iii) In a manner that exposes the certificate holder's breasts, buttocks or genitals; iv) In a manner that constitutes a violation of the Penal Code, as specified; or, v) In a manner that is otherwise deemed by CAMTC to constitute unprofessional attire based on the custom and practice of the profession in California. 29)Permits CAMTC to deny an application for a certificate for the commission of any specified criminal acts. 30)Enhances CAMTC's authority to discipline a certificate holder to include the imposition of probation, which may include limitations or conditions on practice. AB 1147 Page 7 31)Requires CAMTC to deny an application for a certificate, or revoke the certificate of a certificate holder, if the individual is required to register as a sex offender, as specified. 32)States that any denial or discipline must be decided upon and imposed in good faith and in a fair and reasonable manner, and that any procedure that conforms to specified requirements is fair and reasonable, but a court may also find other procedures to be fair and reasonable. 33)Specifies that a procedure is fair and reasonable if specified procedures are followed or if all of the following apply: a) Denial or discipline is based on a preponderance of the evidence; b) The provisions of the procedure are publically available on CAMTC's Internet Web site; c) CAMTC provides 15 calendar days prior notice of the denial or discipline and the reasons for the denial or discipline; and, d) CAMTC provides an opportunity for the applicant or certificate holder to be heard, orally or in writing, as specified. 34)Requires CAMTC, upon receiving notice that a certificate holder has been arrested and charges have been filed, to: a) Notify the certificate holder, at the address last filed with CAMTC, that the certificate has been suspended and the reason for the suspension within 10 business days; b) Provide notification of the suspension by email to the clerk or other designated contact of the city, county or city and county in which the certificate holder lives or works, pursuant to CAMTC's records within 10 business days; and, c) Provide notification of the suspension by email, to any establishment or employer, whether public or private, that CAMTC has in its records as employing the certificate AB 1147 Page 8 holder, within 10 business days. 35)Permits an applicant or certificate holder to challenge a denial or discipline decision, as specified. 36)Provides the procedures and process for CAMTC to immediately suspend the certificate of a certificate holder, if CAMTC determines that a certificate holder committed any act punishable as a sexually related crime or a felony that is substantially related to the qualifications, functions or duties of a certificate holder, as specified. 37)Prohibits a city, county, or city and country from enacting an ordinance that conflicts with the provisions of this Act or specified provisions of the Government Code.38)Clarifies that nothing shall prevent a city, county, or city and county from licensing, regulating, prohibiting, or issuing a permit to an individual who provides massage for compensation without a valid certificate. 39)Requires CAMTC, upon the request of any law enforcement agency or any other representative of a local government agency with responsibility for regulating or administering a local ordinance relating to massage, to provide information concerning an applicant or certificate holder, as specified. 40)Requires CAMTC to accept information provided by any law enforcement agency or any other representative of a local government agency with responsibility for regulating or administering a local ordinance relating to massage and review that information in a timely manner, and clarifies that CAMTC has the responsibility to take any actions that are authorized or warranted, as specified. 41)States that upon request of CAMTC, any law enforcement agency or any other representative of a local government agency with responsibility for regulating or administering a local ordinance relating to massage or massage establishments is authorized to provide information to CAMTC concerning an applicant or certificate holder, as specified. 42)Requires CAMTC to determine whether the school from which an applicant has obtained his or her education meets applicable requirements, as specified, and requires CAMTC to investigate AB 1147 Page 9 the facts prior to issuing a certificate, including oral interviews or any other investigation deemed necessary to receive factual information, as specified. 43)Requires CAMTC to develop policies, procedures, rules or bylaws governing the requirement and process for the approval and unapproval of schools, including any corrective action required to return a school to approved status, as specified. 44)Authorizes CAMTC to approve and unapprove schools and specify corrective action in keeping with the purposes of protecting the public, as specified. 45)Authorizes CAMTC to charge a reasonable fee for the inspection or approval of schools, provided the fees do not exceed the reasonable cost of the inspection or approval process. 46)Provides that CAMTC may only be sued in the county of its principal office, which is Sacramento, unless otherwise designated by CAMTC. 47)States that the superior court of a county or competent jurisdiction may, upon petition by any person, issue an injunction or any other relief the court deems appropriate for a violation, as specified. 48)States that the provisions of this chapter are severable. 49)Requires CAMTC, on or before June 1, 2016, to provide a report to the Legislature for the time period beginning January 1, 2015 that addresses all of the following topics: a) A feasibility study of licensure for the massage profession, including a proposed scope of practice, legitimate techniques of massage, and related statutory recommendations; b) CAMTC's compensation guidelines and current salary levels; c) The status of CAMTC's progress towards revising the school approval process; and, d) Performance metrics, including, but not limited to, AB 1147 Page 10 total application denials, discipline against certificates, inspections of schools, and complaints, as specified. 50)Extends the sunset date of CAMTC by two years, until January 1, 2017, and subjects CAMTC to review by the appropriate policy committees of the Legislature. 51)Prohibits a city, county, or city and county from doing any of the following: a) Defining a massage establishment as an adult entertainment business, or otherwise regulating a massage establishment as adult entertainment; b) Requiring a massage establishment to have windows or walls that do not extend from the floor to the ceiling, or have other internal physical structures including windows, that interfere with a client's reasonable expectation of privacy; c) Imposing client draping requirements that extend beyond the covering of genitalia and female breasts, or otherwise require that the client wear special clothing; d) Prohibiting a massage establishment from locking its external doors when there is only one individual working on the premise as specified; e) Require a massage establishment to post any notice in an area that may be viewed by clients that contains explicit language describing sexual acts, mentions genitalia, or contraception devices; f) Impose a requirement that a certificate holder take or pass any test, medical examination or background check, or comply with educational requirements beyond what is required; g) Imposes a dress code requirement in excess of that already required of certificate holders; h) Imposes a requirement that an individual holding a certificate issued in accordance with the Act obtain any other license, permit, certificate, or other authorization to provide massage for compensation; provided, however, AB 1147 Page 11 that a city, county, or city and county is not prohibited from requiring by ordinance that a massage business or establishment obtain a license, permit, certificate or authorization in order to operate lawfully within a jurisdiction; and, i) Prohibit an individual holding a certificate from performing massage for compensation on the gluteal muscles, prohibit specific massage techniques, recognized by CAMTC as legitimate, or impose any other restriction on the practice of massage beyond what is specified under the provisions of the Act. 52)States that is the intent of the Legislature that land use authority be returned to local governments while professional regulation remains the province of CAMTC and the state, and that fees and regulations imposed by local governments on massage businesses and establishments be necessary and reasonable. 53)States that the Legislature finds and declares that the regulation of the profession of massage therapy is a matter of statewide concern and not a municipal affair, and that this Act applies to all cities, counties, and cities and counties, including charter cities and charter counties. 54)Makes numerous other technical and clarifying changes to the Act. EXISTING LAW 1)Provides for certification of massage practitioners and massage therapists, as defined, by the CAMTC and specifies that the CAMTC is a nonprofit organization meeting specified requirements, and imposes certain duties on the CAMTC. (Business and Professions Code Section (BPC) 4600 (c), (d) and (e), 4600.5 (a) and (b) (2)) 2)Requires CAMTC to be governed by a Board of up to 20 members, as specified. (BPC 4600.5(b)) 3)Requires that the meetings of CAMTC be subject to the rules of the Bagley-Keene Open Meeting Act, as specified. (BPC 4600.5(d)) AB 1147 Page 12 4)Provides CAMTC with the responsibility to determine that the school or schools from which an applicant has obtained the appropriate education meet the educational requirements, as specified, and if CAMTC has any reason to question whether or not the applicant received the required education from the school or schools that the applicant is claiming, CAMTC will investigate the facts to determine that the applicant received the required education prior to issuing a certification. (BPC 4601(g)(1)) 5)Provides that prior to issuing a certificate to the applicant or designating a custodian of records, CAMTC shall obtain fingerprints, which may be in an electronic format, from an applicant for certification as a massage therapist or massage practitioner for the purpose of conducting a criminal background check, and specifies that the Department of Justice (DOJ) shall provide the CAMTC with the specified information relating to an applicant's criminal history. (BPC 4601.3) 6)Provides that CAMTC may discipline a certificate holder by any, or a combination of, the following methods: placing the certificate holder on probation; suspending the certificate and the rights conferred on a certificate holder for a period not to exceed one year; revoking the certificate; suspending or staying the disciplinary order, or portions of it, with or without conditions; and taking other action as CAMTC deems proper. (BPC 4602(a)(1-2) 7)Provides that if CAMTC receives notice that a certificate holder has been arrested and charges have been filed by the appropriate prosecuting agency against the certificate holder, alleging a violation, as specified, CAMTC must immediately suspend the certificate and notify the certificate holder and any employer of record as specified. (BPC 4602(c)(1)) 8)Requires the CAMTC to provide specified information regarding certificate holders to any local law enforcement or other agency that regulates massage therapy, and likewise the CAMTC shall accept and review any information pertaining to a certificate holder AB 1147 Page 13 provided by local law enforcement or other agency that regulates massage therapy, and shall have the responsibility to take any actions as authorized under the Act and are warranted by the information. (BPC 4602.5(a)(c)) 9)Specifies that the holder of a CAMTC certificate has the right to practice massage, as specified, in any city, county, or city and county and is not required to obtain any other license, permit or other authorization unless specified, to engage in that practice. (BPC 4612(a)(1)) 10)Specifies that a city, county or city and county cannot enact an ordinance that requires a license, permit or other authorization to provide massage for compensation by an individual who is certified, as specified, and who is practicing consistent with the qualifications established by his or her certification, or by a massage business or establishment that employs or uses on persons who are certified, as specified, to provide massage for compensation and provides that no provision of any ordinance enacted by a city, county or city and county may be enforced against a certified individual, as specified. (BPC 4612(a)(2)) 11)Clarifies that nothing shall be interpreted to prevent a city, county, or city and county from adopting or enforcing any local ordinance that provides for the reasonable health and safety requirements for massage establishments or businesses which employ or use persons who are not certified, as specified. (BPC 4612(3)) 12)Requires a massage establishment or business that is a sole proprietor, where the sole proprietor is certified, or that employs or uses only certified individuals, to maintain on its premises evidence for review by local authorities that demonstrates that all persons providing massage services are certified; and nothing can prevent local authorities from including in an ordinance a requirement for specified massage businesses to file copies or provide other evidence of the certificates held by the persons providing massage. (BPC 4612 (b)(1)(2)) 13)Specifies that a city, county, or city and county may charge a massage business or establishment a business AB 1147 Page 14 licensing fee provided that the fee is no higher than the lowest fee that is applied to other individuals and businesses providing professional services, as specified. (BPC 4612(B)(3)) 14)Specifies that nothing can prohibit a city, county, or city and county from enacting ordinances, regulations, rules, requirements, restrictions, land use regulations, moratoria, conditional use permits, or zoning requirements applicant to an individual certified, as specified, or to a massage establishment or business that utilizes only certified individuals, as specified, to provide massage for compensation, provided that unless otherwise exempted, these ordinances, regulations, requirements, restrictions, land use regulations, moratoria, conditional use permits, and zoning requirements be no different than the requirements that are uniformly applied to all other individual and businesses providing professional services, as specified. (BPC 4612(b)(4)) 15)Specifies that local building code or physical facility requirements applicable to massage establishments or businesses may not require additional restroom, shower or other facilities that are not uniformly applicable to other professional or personal service businesses, nor shall building or facility requirements be adopted that require unlocked doors when there is no staff available to ensure security for clients and massage staff who are behind closed doors, or require windows that provide a view into massage rooms that interfere with the privacy of clients of the massage business. (BPC 4612(b)(5)) 16)Specifies that an owner or operator of a massage business or establishment who is certified, as specified, is responsible for the conduct of all employees or independent contractors working on the premises of the business, and failure to comply may result in revocation of the owner's or operator's certificate, as specified. (BPC 4612(c)) 17)Permits a city, county, or city and county to adopt a local ordinance that is applicable to massage businesses or establishments, as specified, and does either of the following: AB 1147 Page 15 a) Provides that duly authorized officials of the city, county, or city and county have the right to conduct reasonable inspections, during regular business hours, to ensure compliance, with the local ordinance, or other applicable fire and health and safety requirements; or, b) Requires an owner or operator to notify the city, county, or city and county of any intention to rename, change management or convey the business to another person. (BPC 4612(d)) 18)Authorizes a city, county, or city and county to require a background check of an owner or operator of a massage business or establishment who owns five percent or more of a massage business or massage establishment and who is not certified, as specified. (BPC 4612(e)) 19)Specifies that a city, county, or city and county may adopt a local ordinance governing any person who is not certified, as specified. (BPC 4613)(a)) 20)Specifies that a city, county, or city and county may adopt a local ordinance which restricts the opening of a new massage establishment in a location in which a massage establishment has been closed due to criminal activity. (BPC 4613(c)) 21)Repeals the above provisions on January 1, 2015, as specified. (BPC 4620) 22)States that a city, county or city and county cannot prohibit a person or group of persons, authorized by one of the agencies in the Department of Consumer Affairs, by a license, certificate, or other such means to engage in a particular business, from engaging in that business, occupation or profession or any portion, thereof. (BPC 460)(a)) 23)States that no city, county, or city and county can prohibit a healing arts professional licensed with the state, as specified, from engaging in any act or performing any procedure that falls within the professionally recognized scope of practice of that AB 1147 Page 16 licensee. (BPC 460(b)) 24)Provides that the above prohibition does not prevent a city, county, or city and county from adopting or enforcing a local ordinance governing zoning, business licensing, or reasonable health and safety requirements for establishments or businesses of a healing arts professional, as specified. (BPC 460(2)) 25)Provides that nothing prohibits a city, county, or city and county from levying a license tax solely for the purpose of covering the cost of regulation. (BPC 460(c)) 26)Authorizes the legislative body of a city for incorporated areas or county for unincorporated areas to enact an ordinance which provides for the licensing for regulation of the business of massage when carried on within the city or county. (GOV 51030) 27)Authorizes an ordinance to condition the issuance of a license to engage in the business of massage upon proof that a massage business meets the reasonable standards set by the ordinance, as specified. (GOV 51034) FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS : 1)Purpose of the bill . This bill substantially revises California's existing massage therapy law, incorporating changes which were recommended as a result of the 2014 sunset review process. AB 1147 would revise, recast, and update multiple provisions of current law to give local governments greater authority to regulate massage establishments and businesses while creating a more robust statewide regulatory system for massage professionals. Among its major provisions, this bill would return to cities and counties their land use authority over massage establishments and businesses; reconstitute CAMTC's governing Board and enhance its disciplinary authority; raise educational standards for massage professionals; and create new consumer-oriented protections for individuals seeking massage services. AB 1147 is intended to address the concerns raised AB 1147 Page 17 by local governments battling illegal businesses engaged in prostitution and human trafficking while protecting the legitimate massage therapy profession. This bill is author-sponsored. 2)Authors' statement . According to Assemblymember Bonilla, "in an effort to enhance consumer protection and local control, this bill makes major changes to the current regulatory system for massage therapy. AB 1147 will restore the ability of cities to better control massage establishments while raising certification standards and creating a stronger regulatory system for massage professionals. It will also reconstitute the Board of the California Massage Therapy Counsel to make it more inclusive by incorporating a broader range of stakeholders who care about the massage industry in California, including a city attorney and a member of an anti-human trafficking organization. It also clarifies the rights of the profession, and sets out certain protections for consumers of massage." "Unfortunately, the current massage therapy law (SB 731 (Oropeza) of 2008) had serious unintended consequences; with bad actors masquerading as legitimate massage professionals exploiting loopholes in current law to insulate themselves against the ability of local governments and law enforcement to shut them down. This bill will give that power back to the cities and counties, which will go a long way towards eliminating the brothel owners and human traffickers who are hurting women, hurting neighborhoods, hurting the profession, and hurting California." Assemblymember Gomez writes, "it's time we take back control of our neighborhoods with this reform measure. Legitimate massage therapists have a role in our communities. But the current law has allowed criminal elements to hide behind the law and disrupt our communities. The most critical piece of the reform measure is that the bill will return land use authority to cities and counties. The broad pre-emption of local land use authority for 'certified-only' massage professionals has been removed, returning local land use control back to the cities and counties. Now our communities will once again have a voice in the process." Assemblymember Holden writes, "this bill frees cities and law enforcement to do what they do best: guard the best interests AB 1147 Page 18 of its citizens and resident businesses and protect their community from criminals. This bill allows good massage therapists to be recognized and bad actors to be put out of business. AB 1147 removes the most detrimental parts of the law and ensures that control over planning of our communities is handed back to the people, not business owners with bad intentions." 3)The profession of massage therapy . Massage professionals treat clients by using touch to manipulate the soft-tissue and muscles of the body. Massage therapy is a healing art used to relieve pain, rehabilitate injuries, reduce stress, improve relaxation, and increase the general wellness of clients. Massage professionals work in a variety of settings, including private offices, spas, hospitals, fitness centers and shopping malls. According to the Bureau of Labor Statistics, employment of massage professionals is projected to grow 23% from 2012 to 2022, much faster than the average for all occupations. Titles commonly used in California by the massage profession may include: massage therapist, massage practitioner, CMT, CMP, massage technician, bodyworker, masseur, and masseuse. Current law makes it an unfair business practice for anyone not certified by CAMTC to use the title of CMP or CMT. 4)Regulation of massage therapy . SB 731 (Oropeza), Chapter 384, Statutes of 2008, established a system for the voluntary statewide certification of massage professionals by a Massage Therapy Organization, which was renamed CAMTC in 2011. The goal of establishing what would become CAMTC was to standardize the process for certification throughout the state. Certification allows massage professionals to work in multiple California locations without the need for duplicative local certifications. CAMTC is led by a volunteer Board comprised of professionals from California's massage community, including massage associations, schools, and businesses. CAMTC's authority in statute is set to expire on January 1, 2015 unless that authority is extended by legislative action. Currently, massage professionals in California can obtain one of two certification levels: CMPs are required to complete at least 250 hours of education and training, while CMTs are required to complete at least 500 hours of massage education AB 1147 Page 19 and training or complete 250 hours of education and training and pass an examination. CMPs and CMTs must also undergo background checks, including fingerprinting and other identification verification procedures. The CMP and CMT certificates are renewed biannually, and certificate holders are not required to obtain continuing education. Of the 250 hours of educational requirements for CMPs, 100 hours must be in the instruction of anatomy, physiology, contraindications, health and hygiene, and business ethics. The current law permitting the certification of CMPs is scheduled to be repealed on December 31, 2015. CAMTC regulates over 45,000 certified CMPs and CMTs in California. 5)CAMTC Board of Directors . The current Board is largely comprised of professionals from California's massage community, including massage associations, schools, and businesses. CAMTC's bylaws provide for a total of 20 members, although it has only 19 members at the moment. In addition to the power to issue certificates, CAMTC also has the authority to discipline certificate holders and unapprove massage schools. a) Discipline . If a certificate holder violates the terms of certification, CAMTC may restrict, suspend or revoke his or her certification, although it cannot exercise cite and fine authority. CAMTC may discipline a CMP or CMT for a variety of reasons, including failure to obtain a clear fingerprint check, reports of unprofessional conduct in another state, any attempt to obtain a certificate through misrepresentation or fraud, or committing any act punishable as a sexually-related crime. All of the relative disciplinary procedures are carried out by CAMTC's Division of Professional Standards. According to CAMTC, there have been approximately 248 certificate suspensions or revocations since 2010. b) Schools . While CAMTC does not accredit or affirmatively approve massage schools, it does have the responsibility to determine if the curriculum of a school meets the legal requirements for applicants to obtain CAMTC certification. In practice, this means that schools are generally treated as approved unless and until CAMTC takes action to "unapprove" them. Schools must meet certain requirements, such as being nationally accredited, approved by the California Bureau for Private Postsecondary Education AB 1147 Page 20 (BPPE), be a public institution or a California community college in order to be approved for CAMTC's purposes. 6)Oversight hearings and sunset review . In March and April of 2014, the Assembly Business, Professions and Consumer Protection (BPCP) Committee and the Senate Business, Professions and Economic Development (BPED) Committee conducted joint oversight hearings to review nine regulatory entities, including CAMTC. The Committees began their review of these entities over three days of public hearings in March. This bill, like other sunset bills, is intended to implement the legislative changes recommended in the background reports authored by the Senate BPED and Assembly BPCP Committees. The sunset review process itself provides a formal opportunity and mechanism for DCA, the Legislature, the boards and bureaus, regulatory entities, interested parties and other stakeholders to discuss the performance of the board or bureau, and make recommendations for improvement. This is typically performed on a standard four-year cycle as envisioned by SB 2036 (McCorquodale) (Chapter 908, Statutes of 1994), unless it is determined by the Legislature that the entity be reviewed sooner to address any outstanding issues. The major provisions of this bill are based on specific issues raised and addressed in the sunset report released by the BPCP committee. 7)Issues raised during CAMTC's sunset review . This was the first sunset review for CAMTC, which highlighted numerous issues about the operations of the organization and the impact of the massage therapy law - particularly its land use preemption provisions - on local governments. This bill represents an effort to address concerns raised by the BPCP and BPED Committees, massage professionals, local governments, and other interested parties. The major provisions of this bill reflect those issues raised during the sunset review process, of which many are noted in the BPCP sunset review report. a) Limitations on fees . Under current law, the Board is permitted to establish fees reasonably related to the cost of providing services and carrying out its ongoing duties and responsibilities, including fees for certification and recertification. Currently, the Board is required, under its bylaws, to assess the certification and recertification AB 1147 Page 21 fees annually. Although the certification and recertification fees have not been raised since the inception of CAMTC, the BPCP Committee recommended capping the fees in statute to ensure greater certainty for massage professionals in the future. The fee cap established in this bill will allow the Board to raise fees up to $300, if an annual assessment by the Board determines an increase of the fees, as authorized by CAMTC's bylaws, is warranted. In addition, this bill requires CAMTC to notify certificate holders by email 90 days prior to a proposed vote on any fee increase, along with a posting on CAMTC's Web site within 14 days of the vote to increase the fees. The 90 day and 14 day notice will help to increase the transparency of CAMTC for its certification population and other interested stakeholders. b) Certification tiers . The legislation that authorized CAMTC also created the two-tier certification system (CMT & CMP) in order to provide a pathway to certification for many massage professionals who had been practicing in California prior to a statewide voluntary certification program. In order to raise the standards of the profession as a whole in California, the BPCP sunset report recommended the elimination of the lower certification tier, the CMP. This bill will sunset the existing CMP certification tier for new applicants, beginning January 1, 2015, instead of December 31, 2015, under current law, and will require all applicants for CMT certification to obtain the required 500 hours of education from an approved school and pass an examination. This bill would also raise the educational requirements for CMT certification by requiring applicants to complete all of the 500 hours of required education from a school approved by CAMTC, and specifies that 100 of the 500 hours required for certification must be in the subjects of anatomy, physiology, contraindications, health and hygiene, and business ethics. c) Certification revocation, suspension or denial . According to CAMTC's procedures for discipline, revocation, or denial, a certificate may be denied or revoked for a AB 1147 Page 22 wide variety of reasons reasonably related to protecting public safety, including failure to meet statutory requirements, violations of law, and certain dishonest acts. In order to increase public confidence that CAMTC certificate holders are operating appropriately, this bill expands the definition of unprofessional conduct to prohibit certain behaviors and practices of concern to local governments. Those new standards include engaging in sexually suggestive advertising, engaging in any form of sexual activity on the premises of a massage establishment, or practicing massage on a suspended certificate or outside the of the conditions on a restricted certificate. These additions will improve CAMTC's ability to discipline certificate holders who engage in inappropriate or unprofessional behavior while providing massage services. d) School approval . The 2014 sunset review report raised the issue of CAMTC's current "reactive" school approval process. According to CAMTC, it currently does not proactively approve schools, but rather "unapproves" a school if it finds that a school does not meet the minimum standards for training and curriculum or operates inappropriately. Schools may be unapproved for selling or offering to sell transcripts, failing to require students to attend the classes listed on the transcript, failure to require students to attend all of the hours listed on the transcript, or engaging in fraudulent practices. While CAMTC may unapprove a school for a number of reasons, the most common reason is unexplained discrepancies in a student's transcript. In November 2013, CAMTC reported that it had unapproved approximately 46 schools and placed seven on its "inadequate education list," which means that applicants who have taken courses at those schools must submit additional proof of education beyond a transcript and diploma. The sunset review report recommended that CAMTC take proactive steps to improve their current complaint-driven unapproval process, and instead find a more proactive-based approval process. In response, this bill authorizes CAMTC to take an affirmative role in establishing an approval process for schools by requiring that CAMTC develop AB 1147 Page 23 policies, procedures, rules or bylaws governing the requirements and process for the approval and unapproval of schools, including any corrective action to return a school to approved status. This bill also provides CAMTC with explicit authority to establish a reasonable fee for the inspection or approval of schools. e) Board composition . CAMTC is led by a volunteer Board primarily comprised of professionals from across California's massage community, including massage associations, schools, and businesses. CAMTC currently has 19 members with one vacancy. In order to make the Board more responsive to stakeholders, the BPCP sunset review report recommended that the number of Board members be reduced to 15 or less, that local government or local law enforcement representation be increased, and a California residency requirement be imposed. This bill reconstitutes CAMTC's Board to reduce the total number of authorized board members from 20 to 13, increases the diversity of the Board by making the seats available to a broader array of stakeholders, including public health and anti-human trafficking advocates, and requires all appointees to be residents of California. f) Increased accountability of CAMTC . As a voluntary, non-profit organization CAMTC has discretion in many of its administrative practices and procedures. While this structure is in place to provide the organization with the flexibility it needs to fulfill its statutory mission while operating as an independent non-profit entity, the BPCP sunset review report highlighted a number of areas where administrative accountability can be improved, including obtaining additional customer service information from stakeholders, providing better enforcement data, enhancing communication with local governments and law enforcement representatives, and disclosing salary data, contract awards and hiring standards. To that end, this bill requires CAMTC to provide specified reports on the above-mentioned topics to the appropriate policy committees of the Legislature beginning January 1, 2016. g) Local control . SB 731 (Oropeza), Chapter, 384 Statutes AB 1147 Page 24 of 2008, was originally intended to provide uniform standards for the education, training and background investigations for massage practitioners to help professionalize the massage industry in California. Moreover, it also attempted to create a brighter distinction between legitimate massage professionals and the illegal sex trade by creating a reliable certification system for professionals while eliminating discriminatory business regulations on legitimate healing arts professionals. As many of the professionals involved in massage therapy are sole practitioners who work from their home, travel to a client's home or contract to work at spas in various cities and counties, the concept of a statewide certification program was designed to help alleviate the need for duplicative certification standards which varied from city to city. From a consumer protection perspective, a voluntary statewide certification meant that a "certified professional" has met educational, training and background standards sufficient to give consumers some reassurance that the massage professional providing services was properly educated, trained and obtained the appropriate background clearance. Because the legitimate massage profession in California had often been unfairly linked to illegal practices, particularly prostitution and human trafficking, some cities and counties established massage ordinances that appeared to presume that massage professionals and clients may be engaging in prostitution which led to a host of problems for legitimate massage therapists, many of whom operate part-time or as sole practitioners. For example, the Riverside Municipal Code requires massage professionals to wear special attire in an attempt to dissuade potential prostitution, but also marking the profession as 'suspect'. The Temecula Municipal Code requires massage establishments to post a notice to patrons that "massage rooms do not provide complete privacy and are subject to inspection by the Temecula Police Department without prior notice", which is off-putting to some consumers. As another example, the Westminster Municipal Code requires massage technician applicants to complete a medical examination that tests for the HIV Virus, Syphilis, Gonorrhea, Tuberculosis, and Hepatitis 30 days prior to submitting an application as a massage technician - tests AB 1147 Page 25 which are required of no other healing arts professional and imply a high likelihood of engaging in prostitution. This bill attempts to balance local governments' real need to regulate businesses throughout their jurisdictions with the need to protect certificated massage professionals' practice and dignity by giving local governments back their land use authority to regulate massage establishments and businesses while imposing narrowly-tailored protections to ensure that the profession will continue to be regulated consistently across the state. h) Practice protection for massage professionals . Because massage as a profession is not formally licensed by the state, a voluntary certification was designed as a mechanism to create uniform education and practice standards as opposed to multiple, duplicative local ordinances which vary in their requirements. This allows massage professionals to work in multiple jurisdictions without a need to obtain multiple costly city licenses to practice. However, as some local governments may have ordinances now or in the future that could impinge on the practice rights of certified massage professionals; this bill enumerates a number of new protections for certificated individuals. Local governments will not be permitted to impose a requirement that certified massage professionals be required to take any test, medical examination, or background check, or otherwise comply with any additional educational requirements. Nor may a city or county impose a requirement that certified massage professionals obtain any other license, permit, certificate or authorization to provide massage for compensation, excluding those normally required to operate a business, such as a business license. This bill also prohibits the imposition of dress code requirements in excess of what is already considered unprofessional conduct by CAMTC, and protects certified massage professionals from interference in their performance of legitimate massage techniques approved by CAMTC. i) Continuation of CAMTC and a voluntary certification program . Overall, the 2014 sunset review report found that the health, safety and welfare of consumers is protected AB 1147 Page 26 through the voluntary certification of massage professionals, which ensures greater consistency and quality amongst professionals while giving local governments the tools to more easily identify trustworthy practitioners. The current regulatory system operated by CAMTC combines education, training, and background standards into a systematic formal review process whereby only those individuals who have met the standards can represent themselves as massage therapists or massage practitioners. However, the BPCP sunset review report also found that CAMTC faces many challenges in fulfilling its mission: there is a need for greater oversight of educational institutions; a need for stronger administrative controls; questions regarding proper Board composition; and a strong desire from local governments to regain their land use authority over establishments using certified professionals. If CAMTC were to be allowed to sunset, consumers would lose any hope of making useful distinctions in quality between massage practitioners, practitioners would be again subject to a patchwork of licensing regimes, and local governments would be forced to develop expensive new regulatory processes from scratch. In response, this bill provides for only a two-year extension of CAMTC's sunset date, which will maintain a voluntary certification process for massage professionals while simultaneously giving back to local governments the proper authority they need to regulate massage businesses and establishments. CAMTC will need to be proactive in addressing these underlying issues in order to fulfill its mandate and earn the support of its many stakeholders before its next sunset review in 2016. In order to provide more guidance in that endeavor, this bill also clarifies CAMTC's mission by specifying that the highest priority for CAMTC is the protection of the public, and whenever other interests conflict, the protection of the public shall be CAMTC's prevailing priority. 8)Practice rights for licensed, permitted or certificated professions . Under current law, a city or county is generally restricted from prohibiting a person or group of persons AB 1147 Page 27 authorized by DCA via a license, certificate or other such means from engaging in that occupation, while allowing a city or county to adopt or enforce any local ordinance governing zoning, business licensing, or reasonable health and safety requirements. This bill would put CAMTC and its certificate holders under that protection as well, while clarifying that local jurisdictions have full authority to adopt local ordinances governing the zoning, business licensing, and reasonable health and safety requirements of the individual communities. In this way, regulation of the profession and the individuals practicing it remain the sole purview of the state and CAMTC, but land use decision-making over massage establishments and businesses returns to the local governments themselves. 9)Prohibitions . In an effort to standardize massage industry practices while providing local jurisdictions with the ability to properly regulate massage businesses and establishments, this bill establishes a small number of narrow prohibitions on local regulations that would be unnecessary and harmful to individual professionals and massage businesses. It also enacts changes to better protect the massage consumer as well. Those protections would prohibit local jurisdictions from enacting ordinances which: require massage businesses or establishments to be zoned as adult entertainment; require an establishment or business to have windows or short walls that interfere with a consumers expectation of privacy; impose unnecessary draping or covering requirements on consumers; require a business with one employee from locking its door, thereby jeopardizing employee and customer safety; or posting any signs or any notice in a business that may be viewed by clients that contains graphic language describing sexual acts, genitalia, or contraceptives. This bill also explicitly prohibits the imposition of medical testing, duplicative education standards and examinations, and dress code requirements on individuals who are CAMTC certified. 10)Committee comments on the transition away from preemption . While SB 731 (Oropeza) established the voluntary certification process, it also created a preemption on local government's ability to regulate massage establishments and businesses which left both local government regulators and CAMTC with little regulatory authority over massage businesses and AB 1147 Page 28 establishments that used only certified individuals. In order to correct the deficiencies of SB 731, this bill shifts regulatory oversight of businesses back to cities and counties to regulate land use for massage establishments and businesses. However, it is unclear how the transition will be executed in each local jurisdiction. While the massage industry has grown in California since the passage of SB 731, the debate continues as to whether that growth was a direct result of SB 731, or a result of increased interest in massage generally as a means of healthcare and wellness. However, it is clear that a change in the regulatory process is necessary for local jurisdictions to eliminate bad actors, who took advantage of the law, while maintaining a healthy massage industry in each city or county. Representatives of the massage profession have raised concerns that, if this bill is signed into law, local governments may begin to impose unreasonable or discriminatory requirements on massage establishments, or charge businesses very high fees and business license taxes. While it is unknown what regulations or fees local governments may impose on massage businesses as a result of the end of preemption, it should be noted that there are limits in existing law that are designed to prevent cities and counties from imposing fees or enforcement costs for licenses and permits from exceeding the reasonable cost to the cities to administer. Given that the experience of legitimate massage establishments and business will now be largely in the hands of the individual localities, this bill clearly states the intent of the Legislature that local governments be mindful of legitimate massage businesses during the transition from preemption back to local control, and impose only those regulations and fees that are necessary and reasonable. Moreover, the short two-year sunset extension ensures that the Legislature will be able to examine the performance of these new provisions during the transition and make any needed follow-up changes. 11)Arguments in support . The League of California Cities writes in support, "we believe the bill balances the interests of the state in certifying individual massage therapists and local governments in regulating the business of providing massage AB 1147 Page 29 therapy. AB 1147 seeks to provide protections for those that want to open a legitimate business and provide a valuable service. The bill recognizes the right of a massage professional to engage in the practice of massage that falls within the professionally recognized scope of practice, prohibits local jurisdictions from regulating massage as adult entertainment, and maintains responsibility for the professional conduct of certified individuals by the CAMTC." CAMTC writes in support, "CAMTC supports [this bill] and is mindful of its role to assist local jurisdictions by vetting and disciplining certificate holders so that the local jurisdictions can meet their duty to maintain the highest standards of conduct in massage establishments." 12)Previous version . As passed by the Business, Professions and Consumer Protection Committee on January 21, 2014, (11-0), and the Assembly floor on January 27, 2014, (68-1), this bill required an applicant for certification as a massage practitioner to pass a massage and bodywork competency examination that meets specified standards and is approved by CAMTC. However, most of the provisions of this bill were amended into AB 1147 while in the Senate, and the provisions regarding the massage examination provision were deleted. As a result, the language of this bill in its current form has not yet been heard in this Committee. 13)Related legislation . AB 2739 (Assembly Business, Professions and Consumer Protection Committee) of 2014 would have extended the sunset date for the Council until January 1, 2019. This bill was held in the Assembly Business, Professions and Consumer Protection Committee. AB 1904 (Bonilla) of 2014, requires a certified massage therapist or certified massage practitioner to notify CAMTC of his or her primary email address, if any, and notify CAMTC within 30 days of any change to the primary email address. This bill was held in the Senate Business Professions and Economic Development Committee. 14)Previous legislation . AB 619 (Halderman) Chapter 162, Statutes of 2011, changed the name of the MTO to the CAMTC and makes a number of clarifying, conforming and technical changes AB 1147 Page 30 to the Massage Therapy Act. SB 1238 (Price) Chapter 655, Statutes of 2012, made a number of substantive, clarifying, conforming and technical changes regarding the approval of school credit hours and examination and training requirements for purposes of certification; the grounds for suspension, denial or revocation of certification of the certificate holder; the sharing of information between local law enforcement and the CAMTC; the responsibility of owner/operators of massage businesses for conduct of employees or their independent contractors and background checks of owner/operators; and the ability of cities to restrict the operation of massage businesses involved in prior criminal activity. SB 285 (Correa) Chapter 149, Statutes of 2011, provided that any person who provides a certificate, diploma or other document, or otherwise affirms that a person has received instruction in massage therapy, knowing that the person has not received such training, is guilty of a misdemeanor, punishable by a fine of $2,500, or imprisonment in county jail for up to one year, or both. AB 1822 (Swanson) of 2010, would have added two additional members to the MTO's Board, each one selected by the California Police Chiefs Association and the California State Sheriffs' Association, respectively, unless those entities chose not to do so. AB 1822 was vetoed by the Governor. SB 731 (Oropeza) Chapter 384, Statutes of 2008, created a MTO and provided for the voluntary certification of massage therapists and massage practitioners by the MTO. SB 412 (Figueroa) of 2005 would have established the MTO and would have provided for the certification of massage therapist and massage practitioners by the MTO. SB 412 was held on the Assembly floor. REGISTERED SUPPORT / OPPOSITION : Support American Massage Therapy Association, California Chapter American Planning Association, California Chapter Association of Orange County Deputy Sheriffs AB 1147 Page 31 California Massage Therapy Council California Police Chiefs Association California State Association of Counties California State Sheriffs' Association City of Arcadia City of Beaumont City of Burbank City of Camarillo City of Corona City of Del Mar City of Encinitas City of Fontana City of Glendale City of Livermore City of Lodi City of Lomita City of Los Alamitos City of Merced City of Modesto City of Ontario City of Pleasanton City of Sacramento City of San Buenaventura City of San Carlos City of San Francisco City of San Gabriel City of San Jose City of San Leandro City of South El Monte City of South Pasadena City of Thousand Oaks City of Torrance City of Vista County of Sacramento Fontana Police Department League of California Cities Los Angeles County Sheriff's Department Mayor Edwin Lee, City and County of San Francisco Town of Danville Urban Counties Caucus Massage California (support if amended) Southern California University (support if amended) Individuals Opposition AB 1147 Page 32 Individuals Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916) 319-3301