BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 758


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          Date of Hearing:  April 28, 2015


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                Susan Bonilla, Chair


          AB 758  
          (Chau) - As Introduced February 25, 2015


          SUBJECT:  Acupuncture:  education and training programs.


          SUMMARY:  Allows acupuncture schools to receive approval from  
          another accreditation agency recognized by the United States  
          Department of Education (USDE) as an alternative to the  
          Accreditation Commission for Acupuncture and Oriental Medicine  
          (ACOAM), requires the California Acupuncture Board (CAB) to  
          conduct site visits to acupuncture schools, and requires the CAB  
          to impose a fee for the site visits. 


          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)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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          3)Defines an "approved educational and training program," for  
            purposes of licensure as an acupuncturist, as a school or  
            college that meets the following: (BPC § 4927.5(a))


             a)   Offers curriculum that has been submitted to and  
               approved by the CAB and includes specified hours of  
               didactic and laboratory training and supervised clinical  
               instruction; 
             b)   Is approved by the Bureau of Private and Postsecondary  
               Education (BPPE) or the appropriate out-of-state  
               governmental educational authority; and,


             c)   Is accredited or granted candidacy status by the ACAOM,  
               or has submitted a letter of intent to pursue accreditation  
               to the ACAOM.


          4)Requires the CAB, until January 1, 2017, to investigate and  
            evaluate each school or college applying for approval under  
            BPC § 4939 and may utilize and contract with consultants to  
            evaluate those training programs. 
          5)Requires the CAB, commencing January 1, 2017, to review a  
            school's curriculum, within 30 days of receiving curriculum  
            from the school, determine whether the curriculum satisfies  
            the CAB's requirements, and notify the school or college, the  
            ACAOM, and the BPPE of whether the CAB has approved the  
            curriculum.  (BPC § 4927.5(b))


          THIS BILL:


          6)Defines "approved educational and training program" as a  
            school or college offering education and training in the  
            practice of an acupuncturist that, among other things, meets  








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            any of the following:


             a)   Is accredited by the ACOAM or another accreditation  
               agency recognized by the USDE;
             b)   Has been granted candidacy status by the ACOAM or  
               another accreditation agency recognized by the USDE; and,


             c)   Has submitted a letter of intent to pursue accreditation  
               to the ACOAM or another accreditation agency recognized by  
               the USDE within 30 days of receiving full institutional  
               approval, and is granted candidacy status within three  
               years of the date the letter was submitted.


          7)Requires the CAB, within 30 days after receiving the  
            curriculum, to review the curriculum, determine whether the  
            curriculum satisfies the requirements established by the CAB,  
            and notify the school or college, the ACOAM, any other  
            accreditation agency recognized by the USDE, and the BPPE of  
            whether the CAB has approved the curriculum.
          8)States that the section will become operative on January 1,  
            2017.


          9)Requires the CAB to conduct site visits to each site of a  
            school or college of acupuncture to inspect or reinspect the  
            school or college for purposes of approval or continued  
            approval of its training program.


          10)Requires the CAB to impose a fee for the site visits in an  
            amount to recover direct reasonable regulatory costs incurred  
            by the CAB in conducting the inspection and evaluation of the  
            school or college.


          FISCAL EFFECT:  Unknown. This bill has been keyed fiscal by the  








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          Legislative Counsel.


          COMMENTS:


          11)Purpose.  This bill is sponsored by the  Council of  
            Acupuncture and Oriental Medicine Associations  .  According to  
            the author, "AB 758 strengthens California Acupuncture  
            standards by requiring schools for acupuncture and Chinese  
            medicine to receive accreditation by ACAOM or any [USDE]  
            approved accrediting agency.  To ensure compliance with state  
            education and training standards, it also requires the CAB to  
            conduct site visits.
          Since the passage of [SB 1246] concerns have been raised among  
            the acupuncture community about ACAOM and the removal of the  
            authority for the CAB to perform site visits of schools? The  
            CAB began conducting site visits of acupuncture schools in  
            2014 and found compliance issues with many of the 16  
            acupuncture schools they reviewed which are also accredited by  
            ACAOM.  Without CAB site visits acupuncture schools could go  
            many years without being in compliance with state law without  
            an ACAOM review to ensure compliance.  Without changes to  
            California law, we could weaken what are considered the  
            highest acupuncture standards in the Nation."


          12)Background.  In 2014, the Senate Business and Professions  
            Committee and the Assembly Business, Professions and Consumer  
            Protection Committee (Committees) conducted joint oversight  
            hearings to review nine regulatory entities, including the  
            CAB.  The Committees began their review of the licensing  
            agencies in March 2014, and conducted two days of hearings.   
            The resulting sunset bills were intended to implement  
            Committee staff recommendations reflected in the Background  
            Papers prepared for each agency reviewed.  SB 1426 (Lieu),  
            Chapter 397, Statutes of 2014, reflected the recommendations  
            for CAB.









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          CAB School Approval.  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. 


          Due to several issues raised during the 2014 Sunset Review  
            Oversight Hearings, including a failure to conduct site visits  
            for 20 years, the CAB will only perform school site visits to  
            review implementation of policies and procedures, facilities  
            and clinical training until January 1, 2017.  Additionally, it  
            is important to note that it is no longer common practice for  
            licensing entities, under the DCA, to approve schools versus  
            utilize a private national accreditation organization to  
            approve training programs.


          ACAOM Accreditation.  The ACAOM is the only national,  
            USDE-approved accrediting agency for the field of acupuncture  
            and oriental (Asian) medicine.  While many other states defer  
            to ACAOM accreditation as being a sufficient condition for  
            applicants to take the licensing exam in their states,  
            California has traditionally conducted its own school approval  
            process.  As of January 1, 2017, this will no longer be the  
            case.


          There are approximately 65 acupuncture schools throughout the  
            U.S., 36 of which are approved by the CAB.  Twenty one of the  
            CAB-approved schools are located in California and 15 are  
            located in other states.  Sixty of the 65 schools are already  
            accredited by the ACAOM.


          In 2004, the Little Hoover Commission (LHC) conducted a  








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            comprehensive comparative analysis of the school approval  
            processes of the ACAOM and the CAB.  The LHC's report found  
            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 Committees' 2014 Sunset Review Background  
            Paper, because CAB performs its own school approvals, there  
            are a number of consequences and problems.  These include:


             a)   Students who are educated in accredited schools that are  
               not approved by CAB receive only partial credit for their  
               training.  If they wish to gain licensure in California,  
               they must complete a CAB approved training program.
             b)   The CAB is slow to approve applications for schools  
               located outside of California due to budget constraints.


             c)   The CAB had just began conducting site visits in 2014,  
               after a 20 year hiatus; and stated that because of staff  
               vacancies, the process was moving slowly.


          In the 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  








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               educational programs."  


           As a result of the sunset review recommendations from 2012 and  
            2014, the Committees thoroughly investigated the available  
            USDE-approved acupuncture accrediting organizations.  After a  
            comprehensive investigation and review of the available  
            evidence, the Committees decided to recommend ACOAM as the  
            required accreditation entity for California acupuncture  
            schools, which was enacted by SB 1246 (Lieu), Chapter 397,  
            Statutes of 2014.  The Legislature clearly indicated that  
            using a national, USDE-approved acupuncture school  
            accreditation agency will help free up the CAB's time and  
            resources to address the other salient issues identified  
            during its prior sunset reviews. 


          ACOAM and USDE/NACIQI Review.  In a letter to the Committees  
            dated March 9, 2015, the National Guild for Acupuncture and  
            Oriental Medicine discussed ACAOM's 2011 USDE and National  
            Advisory Committee on Institutional Quality and Integrity  
            (NACIQI) review.  The letter included editorial statements  
            pointing out issues ACAOM was required to address in order to  
            maintain USDE approval. 


          In response, ACAOM sent a letter to the Committees, dated March  
            26, 2015, to clarify and explain the issues.  First, it  
            explained, "The primary context of the letter refers to a  
            perceived negative review ACAOM received in 2011 from the  
            [USDE] and the [NACIQI].  ACAOM, like other accrediting  
            agencies, is on a five-year recognition cycle with USDE? The  
            last review was conducted in 2011, followed by a compliance  
            report review in 2013 and the next comprehensive review for  
            continuing recognition will occur in 2016."


          Among other things, ACAOM noted that the issues identified in  
            the 2011 review have since been resolved.  The NACIQI deemed  








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            ACAOM "fully compliant" in its June 2013 compliance review and  
            ACAOM remains USDE approved.  ACAOM's next review will occur  
            in 2016. 


          13)Prior Related Legislation.  SB 1246 (Lieu), Chapter 397,  
            Statutes of 2014, among other things, removed CAB's authority  
            to approve schools and requires acupuncture schools to be  
            accredited by the ACOAM and repealed the CAB's authority to  
            investigate and evaluate each school or college applying for  
            approval or continued approval.


          SB 1236 (Price), Chapter 332, Statutes of 2012, extended the  
            sunset date for the CAB and other boards under the DCA and the  
            term of the Board's Executive Officer by two years, until  
            January 1, 2015, and made technical and clarifying changes to  
            statutes governing CAB-approved acupuncture training programs.


          ARGUMENTS IN SUPPORT: 


          The  Council of Acupuncture and Oriental Medicine Associations   
          supports the bill and writes, "AB 758 will amend language in the  
          Practice Act that was removed last year under SB 1246.   
          Unfortunately, that 2014 bill will open California to a flood of  
          graduates who wish to take the California Acupuncture Licensing  
          Exam.  A "free for all" situation will reduce public safety and  
          cause harm to our profession.  Authority to regulate schools and  
          graduates of those schools and graduates of those schools should  
          remain within California instead of in the hands of an outside  
          agency."


          The  Asian Pacific Islander American Public Affairs Association  
           writes in support, "California has the most acupuncture  
          licensees and the most acupuncture schools in the nation.  AB  
          758 will prevent California from becoming an "open" state for a  








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          graduate from any ACAOM approved school to become licensed in  
          our state.  California regulation of acupuncture must conducted  
          by a California regulatory agency."


          ARGUMENTS IN OPPOSITION:


          The  Council of Colleges of Acupuncture and Oriental Medicine   
          writes in opposition to the bill, "The [Committee] was  
          instrumental in 2014 in passing SB 1246 unanimously as did the  
          full Assembly and Senate and every other legislative committee.   
          AB 758 represents a direct effort to undermine the unanimous  
          decision of the California legislature?As the committee is  
          aware, apart from ACAOM, there is currently no other agency  
          recognized by the USDOE for professional accreditation of  
          [acupuncture] schools and programs in the United States.   
          Regional accrediting agencies assess institutional capacity."


          The  California State Oriental Medical Association  opposes the  
          bill unless amended to require programmatic accreditation by a  
          specialized agency recognized by the USDE, specifically it  
          writes, "Effective in 2017, last year's Sunset Review bill  
          limited the CAB's role in educational oversight to establishing  
          curricular requirements for acupuncture training programs.   
          Accordingly, SB 1246 also eliminated the CAB's authority to  
          investigate and evaluate schools...Given that curricular reviews  
          can be effectively performed via administrative desk checks,  
          there is no discernible purpose for conducting site visits as  
          part of this process.  Finally, recent CAB site visit reports  
          indicate that it may already be stretching its regulatory  
          authority by enforcing broadly defined rules in an exceptionally  
          specific and arbitrary fashion.  This enforcement activity  
          raises concerns regarding potential underground regulation.  By  
          extending site visit activities beyond the CAB's 2017 reduction  
          in regulatory scope, AB 758 heightens these concerns." 










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          POLICY ISSUES FOR CONSIDERATION:


          Sunset Review Recommendations.  The intent of SB 1246 was to  
          implement the recommendations made by the Committee staff after  
          the thorough sunset review process had been conducted.  This  
          bill would undo several of the solutions designed to rectify the  
          identified problems with the CAB, including requiring the CAB to  
          use a national accreditation organization and remove the CAB's  
          authority to conduct school site visits. 


          In addition, the changes have not gone into effect-they will  
          become operative on January 1, 2017-when the CAB is next  
          reviewed by the joint oversight Committees.  Ongoing discussions  
          regarding the CAB and ACAOM school approval are taking place in  
          preparation for the law to go into effect, and the Committees  
          are working to resolve the CAB's concerns with the loss of its  
          school-approval authority.  Therefore, this measure is  
          premature.


          Agency Transparency and Quality.  The CAB and the sponsors of  
          this bill argue that because ACAOM is not a "non-governmental  
          agency," there are transparency issues regarding ACAOM's  
          process.  Further, the CAB argues that ACAOM's school approval  
          standards do not meet CAB's own standards which are detailed in  
          Title 16 California Code of Regulations § 1399.434-1399.436.  


          While ACAOM, and most other national accrediting organizations,  
          are not required to meet the same open meeting and public  
          document standards that the CAB must meet, almost all of ACAOM's  
          processes, procedures, and standards are publicly available.   
          ACAOM has also been very forthcoming with producing documents  
          and answering questions presented by the legislative policy  
          Committees.  










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          Further, ACAOM's standards are available for the Committees to  
          examine, are developed through a public comment period, and are  
          approved by the USDE.  While CAB's general standards are listed  
          in its regulations, it has yet to produce the specific criteria  
          it uses when approving schools.  For instance, the CAB has  
          criticized ACAOM's clinical chart review process.  However, when  
          asked to produce the criteria for chart review that the CAB has  
          been using on recent school site visits, it was unable to.  


           The "Flood" of Out of State Acupuncturists.  A popular concern  
          raised by supporters of this measure is the possibility that the  
          law, which will go into effect in 2017, will allow a flood of  
          individuals from outside of California to take the California  
          licensing examination.  This is reflected in the form letters  
          sent in from various organizations and individuals as well as  
          statements made by the CAB staff during public CAB meetings last  
          year.  


          As was thoroughly discussed during last year's Sunset Review  
          hearings, this is quite unlikely.  The law states that the CAB  
          must set the curriculum standards that acupuncture schools must  
          adhere to.  The California curriculum standards are the most  
          stringent in the nation.  As such, out of state applicants would  
          be unable to apply for licensure in this state because the  
          curriculum standards in their academic programs are not  
          equivalent to those required by the CAB.  In essence, the out of  
          state institutions would need to completely change their  
          curriculum standards in order to conform to California's  
          curriculum standards so that their graduates would be eligible  
          to take the California licensing examination. 


          Accreditation by a USDE Approved Entity.  On its face, the  
          request for the law to be expanded to include school approval by  
          any entity approved by the USDE may not seem problematic.   
          However, if this happens, the current standards for school  
          approval would be lessened-which is contradictory to what the  








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          CAB indicates it desires.  For example, this bill would allow a  
          number of regional accreditors, who focus broadly on approving  
          an institution e.g. faculty and premises, not the specifics of  
          an acupuncture program, to be the entity that approves  
          acupuncture schools and programs.  This is contradictory to what  
          the CAB claims it desires e.g. a regional accreditor would not  
          be involved in the specifics of a program such as the clinical  
          chart review etc.  


          Based on the aforementioned reasons, in combination with the  
          recent review of the CAB, the Legislature's recent decision to  
          remove the CAB's school approval authority and require  
          accreditation of all acupuncture schools by the ACAOM, as well  
          as the fact that the law has not even been implemented, it is  
          not clear that the need for this bill has been established.  


          REGISTERED SUPPORT:  


          Council of Acupuncture and Oriental Medicine Associations  
          (sponsor)


          Alhambra Medical University


          American Association of Chinese Medicine and Acupuncture


          Asian Pacific Islander American Public Affairs Association


          California Acupuncture Medical Association


          California Acupuncture Oriental Medicine Association









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          California Labor Federation


          Chinese Herb Trade Association of America


          Heilongjiang University of Chinese Medicine


          Korean Acupuncture & Asian Medicine Association


          National Guild of Acupuncture and Oriental Medicine


          Office and Professional Employees International Union


          United Acupuncture Association


          Over 35 individuals




          REGISTERED OPPOSITION:  
          Acupuncture & Integrative Medicine College


          American College of Traditional Chinese Medicine


          California State Oriental Medical Association


          Council of Colleges of Acupuncture and Oriental Medicine









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          Emperor's College


          Southern California University of Health Sciences







          Analysis Prepared by:Le Ondra Clark Harvey, Ph.D. and Vincent  
          Chee / B. & P. / (916) 319-3301