BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1215
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          Date of Hearing:  April 30, 2013

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
               AB 1215 (Hagman and Holden) - As Amended:  April 9, 2013
           
          SUBJECT  :  Clinical laboratories.

           SUMMARY  :  Expands the definition of laboratory director for  
          purposes of a clinical laboratory test or examination classified  
          as waived to include a licensed clinical laboratory scientist  
          (CLS) and limited CLS (LCLS).  Authorizes a person licensed as a  
          CLS, as specified, and qualified under the federal Clinical  
          Laboratory Improvement Amendments (CLIA) to additionally perform  
          the duties and responsibilities of a waived clinical laboratory  
          director, as specified.  

           EXISTING LAW  :  

          1)Establishes in federal law, CLIA, which regulates  
            laboratories when performing testing on human specimens,  
            and includes laboratory standards for proficiency  
            testing, facility administration, personnel  
            qualifications, and quality control.  Applies standards  
            to all settings, including commercial, hospital, or  
            physician office laboratories.

          2)Defines under CLIA waived tests as simple laboratory  
            examinations and procedures that are cleared by the  
            federal Food and Drug Administration (FDA) for home use;  
            employ methodologies that are so simple and accurate as  
            to render the likelihood of erroneous results negligible;  
            or pose no reasonable risk of harm to the patient if the  
            test is performed incorrectly.

          3)Establishes within the Department of Public Health (DPH),  
            the Laboratory Field Services which provides for  
            licensing and registration services for clinical  
            laboratories, as specified.

          4)Requires a clinical laboratory that performs tests that  
            are of moderate or high complexity to be licensed by DPH.  
             Requires a clinical laboratory that performs tests that  
            are of low complexity, also referred to as "waived  
            tests," or that perform provider-performed microscopy  








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            (PPM), which is a microscopic analysis of a specimen by a  
            health care provider such as a physician, to be  
            registered, rather than licensed, by DPH.  

          5)Defines a clinical laboratory as any establishment or  
            institution operated for the performance of clinical  
            laboratory tests or examinations, or the practical  
            application of clinical laboratory sciences.  Requires  
            clinical laboratories to pay DPH specified fees,  
            including initial and renewal licensure, registration, or  
            certification.

          6)Prohibits anyone from performing a clinical laboratory  
            test or examination classified as waived under CLIA,  
            unless the clinical laboratory test or examination is  
            performed under the overall operation and administration  
            of the laboratory director, and the test is performed by  
            specified persons, including physicians and surgeons,  
            podiatrists, dentists, physician assistants, or  
            respiratory care practitioners.  
          7)Defines a laboratory director as any person who is a duly  
            licensed physician and surgeon, or only for purposes of a  
            clinical laboratory test or examination classified as  
            waived, is a duly licensed naturopathic doctor, is an  
            optometrist, as specified, or is licensed to direct a  
            clinical laboratory and who meets specified  
            qualifications under CLIA for the type and complexity of  
            tests being offered by the laboratory.  States that the  
            laboratory director is responsible for the overall  
            operation and administration of a clinical laboratory, as  
            specified.

          8)Exempts certain clinical laboratories or persons  
            performing clinical laboratory tests or examinations from  
            clinical laboratory regulations, including the following:  
            clinical laboratories that are owned and operated by the  
            United States government; public health laboratories, as  
            specified; laboratories that perform clinical laboratory  
            tests or examinations for forensic purposes; individuals  
            who perform clinical laboratory tests or examinations  
            approved by the FDA for sale to the public without a  
            prescription in the form of an over-the-counter test  
            kits, on their own bodies, or on their minor children or  
            legal wards, and certified emergency medical technicians  
            and licensed paramedics providing basic life support  








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            services, as specified.  

          9)Requires DPH to issue a CLS and LCLS license to a person  
            who has a baccalaureate or an equivalent or higher  
            degree, as specified.  Authorizes a CLS/LCLS to engage in  
            clinical laboratory practice under the overall operation  
            and administration of a laboratory director.  Authorizes  
            a CLS/LCLS who is qualified under CLIA to perform  
            clinical laboratory tests or examinations classified as  
            of high complexity, waived, or of moderate complexity  
            under CLIA.
           
           FISCAL EFFECT  :  None

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  According to the author, the  
            implementation of the Patient Protection and Affordable Care  
            Act (ACA) will extend health benefits to an estimated seven  
            million uninsured Californians by 2018.  The newly insured  
            will increase the demand for care and auxiliary services such  
            as clinical laboratory testing.  Access to clinical laboratory  
            tests must be improved without compromising testing accuracy  
            and quality or patient safety.  Under California law, the very  
            practitioners specifically trained and licensed in clinical  
            laboratory science are not directors of laboratories  
            conducting waived tests.  Currently, there is a shortage of  
            clinical laboratory personnel.  According to the sponsors,  
            allowing CLS's to be laboratory directors would alleviate the  
            need for simple tests (like urine dip stick) to be done at a  
            high complexity labs, freeing the lab to process the tests it  
            is more appropriately equipped to do and allows the CLS to  
            focus on higher complexity testing rather than being  
            distracted to do simpler waived testing.  Additionally, many  
            CLS's are of retirement age.  Keeping them in the workforce  
            longer as waived lab director consultants allows other  
            practitioners to do simple testing and ensures that the CLS  
            training and experience are not lost from the workforce.  This  
            role is not as stressful or physical, so retirees who are  
            weary of the stress and physicality of a standard lab could  
            remain in the workforce longer, without having to contend with  
            complicated machinery and the running of samples and results  
            here and there.  Instead, they can fill the waived testing lab  
            director gap, freeing CLS's in labs to focus on other testing.









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           2)BACKGROUND  .  

              a)   CLIA Waived Tests  .  CLIA defines waived tests as simple  
               laboratory examinations and procedures that are cleared by  
               the FDA for home use; employ methodologies that are so  
               simple and accurate as to render the likelihood of  
               erroneous results negligible; or, pose no reasonable risk  
               of harm to the patient if the test is performed  
               incorrectly.  Waived tests include dipstick or tablet  
               reagent urinalysis (used to test glucose, hemoglobin, and  
               protein among other things); fecal occult blood; ovulation  
               tests; urine pregnancy tests; erythrocyte sedimentation  
               rate-non-automated; and, blood glucose by glucose  
               monitoring devices cleared by the FDA specifically for home  
               use.  Amendments adopted for CLIA states that tests  
               approved by the FDA for home use automatically qualify for  
               CLIA waiver.  Professional use versions of home use tests  
               are not automatically waived.  However, such professional  
               versions do qualify for expedited waiver review since the  
               only differences between the home use and professional use  
               versions need to be examined to determine whether the  
               professional version qualifies for waiver.  
              
              b)   Clinical Laboratories  .  There are currently  
               approximately 19,000 clinical laboratories in California,  
               3,000 of which are licensed laboratories performing  
               moderate and/or high complexity testing.  The remaining  
               12,000 are registered labs performing waived tests and/or  
               provider-performed microscopy.  California clinical  
               laboratories are subject to both federal and state  
               oversight.  

             Federal CLIA requirements establish standards for  
               laboratories to ensure the accuracy, reliability, and  
               timeliness of patient test results, and specify numerous  
               quality standards, including those for facility  
               administration, personnel qualifications, quality control,  
               and proficiency testing, a process used by laboratories to  
               verify the accuracy and reliability of their test results.   
               CLIA standards apply to laboratory testing in all states,  
               and in all settings, including commercial, hospital, or  
               physician office laboratories.  CLIA standards are based on  
               the complexity of the testing (waived, moderate, or high  
               complexity).  









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             A clinical laboratory performing clinical laboratory tests or  
               examinations subject to a certificate of waiver or a  
               certificate of PPM under CLIA is required to register with  
               DPH.  DPH requires that an application for a clinical  
               laboratory license or registration must include certain  
               information, including the name of the owner, the name of  
               the laboratory director, name and location of the  
               laboratory, a list of the clinical laboratory tests or  
               examinations performed by the laboratory by name, and total  
               number of test procedures and examinations performed  
               annually.  

              c)   Workforce Shortage  .  According to a report published by  
               the Center for the Health Professions at the University of  
               California, San Francisco entitled "California's Health  
               Care Workforce: Readiness for the ACA Era," California's  
               employment of CLS has been stagnant since 2001, while  
               national CLS employment has grown 15%.  California's per  
               capita supply of CLS is much lower than the nation's: 35  
               CLS per 100,000 population in California compared to 54.4  
               per 100,000 in the U.S. overall.  From 1980 - 2005, the  
               number of CLS licensure candidates dropped significantly  
               from 2,515 to 724.  The report points out that California's  
               hospitals are concerned about the supply of clinical lab  
               professionals, as vacancies in these areas have a  
               significant impact on care delivery and hospital  
               efficiency.

           3)SUPPORT  .  The American Federation of State, County, and  
            Municipal Employees, Blood Centers of California, Engineers  
            and Scientists of California and the California Association  
            for Medical Laboratory Technology state that this bill will  
            assist in addressing the likely increased demand for  
            laboratory tests and will result in greater access to safe,  
            simple, and economical tests.

           4)PREVIOUS LEGISLATION  .  

             a)   SB 1481 (Negrete McLeod), Chapter 874, Statutes of 2012,  
               allows pharmacists to perform specific CLIA waived tests  
               without the supervision of a laboratory director under  
               specific conditions.

             b)   AB 761 (Roger Hern�ndez), Chapter 714, Statutes of 2012,  
               includes a licensed optometrist in the definition of  








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               laboratory director and authorizes a licensed optometrist  
               to perform CLIA waived test as necessary for the diagnosis  
               of conditions and disease of the eye, as specified.  

             c)   SB 1246 (Negrete McLeod), Chapter 523, Statutes of 2010,  
               includes naturopathic doctors in the list of health care  
               practitioners who can perform a clinical laboratory test or  
               examination classified as waived under CLIA, and designates  
               naturopathic doctors as clinical laboratory directors for  
               CLIA waived tests only.

             d)   AB 1442 (Feuer) of 2007 would have required clinical  
               laboratories that perform tests for human immunodeficiency  
               virus that are classified as waived under CLIA to enroll in  
               a proficiency testing program and to obtain the appropriate  
               license or registration from DPH, as specified.  AB 1442  
               was held on the Assembly Floor.

             e)   AB 185 (Dymally) of 2007 would have expanded the duties  
               that unlicensed personnel are authorized to perform in a  
               clinical laboratory and would have revised the levels of  
               supervision required when unlicensed personnel perform  
               them.  AB 185 was held in the Assembly Business and  
               Professions Committee.

             f)   AB 1370 (Matthews) of 2005 would have included a  
               pharmacist within the definition of laboratory director if  
               the clinical laboratory test or examination is a routine  
               patient assessment procedure, as defined.  AB 1370 was held  
               in Assembly Business and Professions Committee.

             g)   AB 433 (Nava) of 2005 would have exempted physician  
               office laboratories from licensure and regulatory  
               requirements governing clinical laboratories and their  
               personnel by DPH.  AB 433 was held in the Assembly Health  
               Committee.

             h)   SB 1174 (Polanco), Chapter 640, Statutes of 2001,  
               exempts certified emergency medical technicians and  
               licensed paramedics providing life support who perform only  
               CLIA-waived blood glucose tests from state law governing  
               the licensure and regulation of clinical laboratories, as  
               specified.

           5)DOUBLE REFERRAL  .  This bill is double referred.  It was heard  








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            on April 16, 2013 in the Assembly Business Professions and  
            Consumer Protections Committee and passed out on a 13-0 vote.


           REGISTERED SUPPORT / OPPOSITION :  

           Support 
           
          California Association for Medical Laboratory Technology  
          (cosponsor)
          Engineers & Scientists of California, IFPTE (cosponsor)
          United Nurses Association of California/Union of Health Care  
          Professionals (cosponsor)
          Western States Council of the United Food & Commercial Workers  
          (cosponsor)
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          Blood Centers of California
          California Society of Pathologists
           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Rosielyn Pulmano / HEALTH / (916)  
          319-2097