BILL ANALYSIS                                                                                                                                                                                                    Ó







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        |Hearing Date:April 28, 2014        |Bill No:SB                         |
        |                                   |1246                               |
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                      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.)





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        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  





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           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  





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             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."
             





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             [  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.)





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            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  





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           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."






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           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  





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           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





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        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.