BILL ANALYSIS Ó ----------------------------------------------------------------------- |Hearing Date:April 28, 2014 |Bill No:SB | | |1246 | ----------------------------------------------------------------------- SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Ted W. Lieu, Chair Bill No: SB 1246Author:Lieu As Amended:April 23, 2014 Fiscal: Yes SUBJECT: The Acupuncture Board. SUMMARY: Extends the sunset date for the California Acupuncture Board (CAB) until January 1, 2017; grants the CAB authority to employ personnel until January 1, 2017; specifies that any executive officer appointed on or after January 1, 2015 shall not have served as an executive officer for the CAB prior to January 1, 2015; requires educational and training programs to be accredited by the Accreditation Commission for Acupuncture and Oriental Medicine commencing January 1, 2017. Existing law: 1) Provides for the licensure and regulation of the practice of acupuncture by the CAB within the Department of Consumer Affairs (DCA). (Business and Professions Code (BPC) § 4928 et seq.) 2) Establishes the CAB until January 1, 2015 and renders the CAB subject to review by the appropriate policy committees of the Legislature. (BPC § 4928) 3) Permits the CAB, with the approval of the Director of the DCA, to employ personnel and appoint an executive officer until January 1, 2015. (BPC § 4934) 4) Grants the CAB authority to establish standards for the approval of schools and colleges offering education and training in the practice of acupuncture, including standards for the faculty in those schools and colleges and tutorial programs. (BPC § 4939 et seq.) SB 1246 Page 2 5) Allows the CAB to charge a fee for the inspection or re-inspection of a school or college of acupuncture for purposes of approval and permits the CAB to recover the direct costs incurred by the CAB in conducting the inspection and evaluation of the school or college. (BPC § 4973) This bill: 1) Extends the CAB until January 1, 2017. 2) Extends the CAB's authority, with the approval of the Director of the DCA, to employ personnel until January 1, 2017. 3) Specifies that the CAB, with the approval of the Director of the DCA, may appoint an executive officer on January 1, 2015. 4) Further specifies that the executive officer shall not have served as the executive officer of the CAB at any time prior to January 1, 2015. 5) Defines "approved educational and training programs" as a program approved by the CAB until January 1, 2017. 6) Repeals the CAB's authority to establish standards for the approved educational and training programs and charge fees for the approval of schools or colleges commencing January 1, 2017. 7) Requires that approved educational and training programs be accredited by the Accreditation Commission for Acupuncture and Oriental Medicine commencing January 1, 2017. FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by Legislative Counsel. COMMENTS: 1. Purpose. This bill is one of six "sunset review bills" authored by the Chair of this Committee. This bill provides for the CAB to be reviewed by the appropriate policy committees of the Legislature, and makes legislative changes regarding the CAB recommended in the Committee's Background Paper. 2. Oversight Hearings and Sunset Review of Licensing Boards and Commission of DCA. In 2014, the Senate Business and Professions Committee and the Assembly Business, Professions and Consumer SB 1246 Page 3 Protection Committee (Committees) conducted joint oversight hearings to review 9 regulatory entities: Bureau of Automotive Repair; Bureau of Home Furnishings and Thermal Insulation; Bureau for Private Postsecondary Education (BPPE); California Massage Therapy Certification program; California Acupuncture Board; California Tax Preparers Program; Dental Hygiene Committee of California; Professional Fiduciaries Bureau; and Structural Pest Control Board. This Committee also reviewed the performance and effectiveness of the Community Interest Development Manager's Certification Program. The Committees began their review of the aforementioned licensing agencies in March and conducted two days of hearings and then more recently held a hearing on the BPPE. This bill, and the accompanying sunset bills, are intended to implement legislative changes as recommended by staff of the Committee's which are reflected in the Background Papers prepared by Committee staff for each bureau and program reviewed for this year. 3. Background. Review of the CAB, Issues Identified and Recommended Changes. The following are some of the major issues pertaining to the CAB or areas of concern reviewed and discussed by the Committee during the review of the CAB, along with background information concerning each particular issue. Recommendations were made by Committee staff regarding the particular issues or problem areas which needed to be addressed. a) Issue : National Accreditation. Background . The CAB approves training programs at acupuncture schools and colleges, in particular their curriculum programs, to ensure they meet the standards adopted by the CAB. The school approval process requires review of the application, governance, program curriculum, catalogs, admission policies, student and faculty policies and procedures, and financial solvency. An on-site visit is also performed to review implementation of policies and procedures, facilities and clinical training. It is rare practice for health care licensing boards, under the DCA, to approve schools versus utilize a national accreditation organization to approve health care training programs . The ACAOM is the nationally recognized accrediting agency for the field of acupuncture and oriental (Asian) medicine. While many other states defer to ACAOM accreditation as being a sufficient SB 1246 Page 4 condition for applicants to take the licensing exam in their states, California does not accept accreditation by ACAOM, nor does it require graduation from an accredited school as a condition of being eligible to take the licensing exam. Instead, it conducts its own school approval process. In 2004, the Little Hoover Commission (LHC) conducted a comprehensive comparative analysis of the school approval process of the ACAOM, to the school approval process of the CAB. The LHC's report concluded that the processes used by ACAOM appeared to be superior to the school approval process used by the CAB and could be used by the state to ensure the quality of education for potential licensees. According to the Committee's 2014 Sunset Review Background Paper, because California performs its own school approvals, there are a number of consequences and problems. These include: 1) Students who are educated in accredited schools that are not approved by California receive only partial credit for their training. If they wish to gain licensure in California, they must complete a CAB approved training program. 2) The CAB is slow to approve applications for schools located outside of California due to budget constraints. 3) The CAB has recently begun conducting site visits. However, because of staff vacancies, this has been a slow process. In the Committee's 2012 Sunset Review Background Paper to the CAB, the Committee wrote: "?It should also be required that these acupuncture schools either have currently, or obtain within a reasonable time, accreditation from an accrediting agency recognized by the United States Department of Education. Especially since the accrediting process for these schools appears to be superior to that of the Board. At some time in the future, consideration could be given, based on the success of accreditation of these schools, to eliminating the Board's responsibility and need for approving acupuncture educational programs." SB 1246 Page 5 [ The current language in this measure reflects this recommended change .] a) Issue: Continued Regulation by the CAB. Background : The health, safety and welfare of consumers are protected by a well-regulated acupuncture profession. According to a review of past Sunset Review Background Papers, it is evident that the current CAB members inherited a program with little to no infrastructure and no institutional knowledge was passed down from prior CAB staff. In recognition of this, Committee staff has reached out to the Executive Officer of the CAB in an effort to ensure that the Executive Officer communicates to the CAB and CAB staff the importance of addressing the concerns that were highlighted during the 2012 and prior Sunset Review Hearings. It appears as if several of these recommendations remain unaddressed; thus, in the Committee's 2014 Sunset Review Background Paper, the Committee directed the CAB to immediately focus its attention on addressing specific critical areas of deficiency and return to update the Committee's on the CAB's progress at the next Sunset Review Hearing in 2016. Recommendation : The CAB should be continued with a two-year extension of its sunset date. [ The current language in this measure reflects this recommended change .] 1. Current Related Legislation. SB 1242 (Lieu, 2014) amends the Automotive Repair Act and updates the sunset provisions for the Bureau of Automotive Repair. ( Status : This bill will also be heard before the BP&ED Committee during today's hearing.) SB 1243 (Lieu, 2014) Extends until January 1, 2017, the term of the Veterinary Medical Board, which provides for the licensing and registration of veterinarians and registered veterinary technicians and the regulation of the practice of veterinary medicine by the Veterinary Medical Board. The bill also extends the terms of the executive officer of the Veterinary Medical Board. This bill also extends to January 1, 2019, the law regulating the practice of common interest development managers, and the law establishing the California Tax Education Council, which provides for the Council to register and regulate tax preparers. This bill also subjects the board and organizations to be reviewed by the appropriate policy committees of the Legislature. ( Status : This bill will also be heard before the BP&ED Committee during today's hearing.) SB 1246 Page 6 SB 1244 (Lieu, 2014) Extends until January 1, 2019 the term of the Structural Pest Control Board which provides for the licensing and regulation of individuals and business involved in the structural pest control industry in California. The bill also extends the term of the Board's executive officer and subjects the Board to be reviewed by the appropriate policy committees of the Legislature. ( Status : This bill will also be heard before the BP&ED Committee during today's hearing.) SB 1245 (Lieu, 2014) Extends until January 1, 2019 the term of the Dental Hygiene Committee of California which provides for the licensing and regulation of dental hygienists. The bill also extends the term of the Committee's executive officer and subjects the Committee to be reviewed by the appropriate policy committees of the Legislature. ( Status : This bill will also be heard before the BP&ED Committee during today's hearing.) SB 1247 (Lieu, 2014) Extends until January 1, 2019 the term of the California Private Postsecondary Education Act of 2009, which provides for the regulation of private postsecondary educational institutions by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs. The bill also extends the term of the Student Tuition Recovery Fund under the administration of the bureau, and subjects the Bureau to review by the appropriate policy committees of the Legislature. ( Status : This bill will also be heard before the BP&ED Committee during today's hearing.) 2. Arguments in Support. The Council of Colleges of Acupuncture and Oriental Medicine support the bill and write in their letter, "The Council has been the national membership association for acupuncture and Oriental colleges and programs in the U.S. since 1982. The mission of the Council is to advance acupuncture and oriental medicine by promoting educational excellence in the field. The current membership of the Council is 54 colleges, of which 26 are currently approved by the California Acupuncture Board through the board's independent school approval process. The Council's member colleges, all of which have been approved in accordance with ACAOM's national accreditation standards, believe that the quality of acupuncture education for students, patient safety, and consumer protection are best maintained by acupuncture educational institutions participating in an accreditation process with a USDE recognized accreditor such as ACAOM. Accreditation protects patients, students, and the profession by ensuring that graduates are well qualified as entry-level practitioners able to sit for SB 1246 Page 7 licensing and certification exams." The National Certification Commission for Acupuncture and Oriental Medicine points out in their letter that nationwide, every state with an acupuncture practice act requires ACAOM accredited education- the sole outlier is California. Five Branches University supports the bill and writes in their letter, "Our university [is concerned] about the continuing failure of the CAB to address the useful recommendations of the Senate Committee?we would like to see a responsible Acupuncture Board in California that meets the same rigorous requirements of other health profession Boards [which] require accreditation of schools." The California State Oriental Medicine Association is California's largest English-language professional association of licensed acupuncturists. CSOMA has represented acupuncture and Oriental medical providers across the state for more than two decades. CSOMA shared their support of the move to national accreditation instead of the CAB's school approval process in their letter, "?require applicants for licensure under the Acupuncture Board to graduate from a program that has achieved candidacy or accreditation by an accrediting agency recognized by the U.S. Department of Education as an authority for the equality of education and training in acupuncture and Oriental medicine." The Southern California University of Health Sciences (SCUHS) writes, "SCUHS urges you to require the CAB to adopt CAB approved schools to be accredited by an accreditation agency recognized by the United Stated Department of Education. A USDE recognized accreditation agency will strengthen the oversight of acupuncture schools by a rigorous review process that includes a periodic and comprehensive self-study with peer review and a site visit process by highly qualified educators. In addition, accreditation process has well-articulated standards that examine all aspects of an institution from governance to faculty and curriculum. By requiring accreditation of CAB approved schools, the student is protected as a consumer because the state is no longer approving unaccredited institutions. These unaccredited institutions do not have the same imperative to offer high quality programs. When a student graduates from a non-accredited but CAB-approved acupuncture program, the qualification that she or he has cannot be universally transferred to another state. In other words, graduates from CAB approved but non-accredited programs may not practice in states that require graduation from an accredited program." SB 1246 Page 8 Both the Atlantic Institute of Oriental Medicine and the Southwest Acupuncture College also support the bill and write in their letters, "In spite of the clear language of these recommendations from the Committee, the CAB has not only failed to implement the recommendations, but has even refused to put the recommendations on any CAB meeting agenda?members of the [public] recently attended CAB committee meetings last Friday, April 18, 2014?At none of these meetings were the recommendations of the Senate Committee on the agenda, nor were the [members of the public] allowed to bring up the recommendations for consideration at these meetings." The Pacific College of Oriental Medicine and the National College of Natural Medicine supports the bill and writes, "It is clear that the CAB is not demonstrating interest in considering, let alone implementing, the Senate committee's sunset review recommendations, and is pursuing its own agenda? this was evident at the April 18, 2014 meeting in a recommendation from the CAB [Executive Officer] that the budget of the board and the size of its staff be substantially increased so that the board itself will have the capacity to perform accreditation and examination functions that the board has for some time been unable to perform, but which are already being performed by [national testing and accreditation organizations] at a high level." The University of East-West Medicine also supports the bill and writes, "The failure of the CAB to consider the Senate committee's recommendations reflects the unwillingness of the board to move forward with the sunset recommendations?Please take immediate and decisive action to mandate adherence by the CAB to your committee's recommendations." Yo San University supports the bill and writes, "The Yo San University community of students, faculty, staff, alumni and clinic patients express deep concern regarding the continuing failure of the CAB to implement the Sunset Review recommendations of your Senate committee?The recommendations from the Committee were clearly articulate, and the CAB has not only failed to implement them, they have even refused to put the recommendations on the CAB meeting agenda." The American College of Traditional Chinese Medicine supports the bill and writes, "The purpose of this letter is to offer our continued strong support for the incorporation of accreditation by an accreditor recognized by the United States Department of Accreditation?We support the mission of the CAB to 'protect, benefit and inform the people of California by exercising the SB 1246 Page 9 licensing, regulatory and enforcement mandates of the Acupuncture Licensure Act.' We feel that incorporation of accreditation?will strengthen the ability of the CAB to meet its mission." South Baylo University supports the bill and writes, "We express our concern about the implementation of the Sunset Review recommendations of this Senate committee by the California Acupuncture Board?So far, the CAB has failed to implement the recommendations and did not put the recommendations on any of the CAB meeting agendas. Because the CAB has postponed considering the Senate committee's recommendations, which reflects the delay of the board to move forward with the sunset recommendations, South Baylo University asks that the committee closely follows up the adherence by the CAB to the committee's recommendations." The Oregon College of Oriental Medicine writes, "Considering the CAB's demonstrated difficulty with approving schools and the significant amount of resources that it requires for the CAB to oversee this process, the CAB should act on recommendations made during prior Sunset Review Hearings and?require all schools of acupuncture to obtain accreditation from an agency approved by the U.S. Department of Education?Accreditation is a process for continuous improvement that is virtually universal in higher education. By California requiring accreditation, the state will ensure that all programs operating in the state or sending candidates to the state provide a high quality training program that protects patients and students." SUPPORT AND OPPOSITION: Support: Atlantic Institute of Oriental Medicine American College of Traditional Chinese Medicine California State Oriental Medical Association Council of colleges of Acupuncture and Oriental Medicine Five Branches University National Certification Commission for Acupuncture and Oriental Medicine National College of Natural Medicine Oregon College of Oriental Medicine Pacific College of Oriental Medicine South Baylo University Southern California University of Health Sciences Southwest Acupuncture College SB 1246 Page 10 University of East-West Medicine Yo San University of Traditional Chinese Medicine Over 60 licensed acupuncturists Over 120 acupuncture students 2 individuals Opposition: 2 licensed acupuncturists Consultant:Le Ondra Clark, Ph.D.