BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  January 12, 2016


                   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  
          (ACAOM), 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 by, granted candidacy status by, 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 authorizes the CAB to utilize and contract with  
            consultants to evaluate those training programs. 
          5)Requires the CAB, commencing January 1, 2017, within 30 days  
            of receiving curriculum from the school, to review a school's  
            curriculum and 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  
            any of the following:









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


             c)   Has submitted a letter of intent to pursue accreditation  
               to the ACAOM 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 ACAOM, 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 is keyed fiscal by the  
          Legislative Counsel.









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          COMMENTS:


          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."


          Background.  In 2014, the Senate Committee on Business,  
            Professions and Economic Development and the Assembly  
            Committee on Business, Professions and Consumer Protection  
            Committee (Committees) conducted joint sunset review 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 that was reviewed.  SB 1426  
            (Lieu), Chapter 397, Statutes of 2014, reflected the  
            recommendations made for the CAB, including removing school  








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            approval authority from the CAB and requiring a national  
            accreditor to take over the school accreditation process, and  
            only granting the CAB a two year sunset date extension.


          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 Legislature voted to only allow the CAB to  
            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. In fact, only three  
            licensing entities under DCA, including the CAB, solely  
            conduct school approvals without a requirement for national  
            accreditation.  Most programs utilize a national accreditation  
            organization to approve training programs. 


          ACAOM Accreditation.  The ACAOM, founded in 1982, is the only  
            national, USDE-approved accrediting agency for the field of  
            acupuncture and oriental medicine.  ACAOM is the only  
            recognized accreditor for this profession, and as such has  
            established de facto national standards for acupuncture  
            training for both masters and doctoral level acupuncture  
            programs and all ACAOM accredited and candidate programs are  
            required to meet the applicable program standards, including  
            the training standards described under Program of Study in  
            ACAOM's Accreditation Manual. While many other states defer to  
            ACAOM accreditation as being a sufficient condition for  








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            applicants to take the state licensing exam, California has  
            traditionally maintained authority to conduct 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  
            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 the 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 the 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 began conducting site visits in 2014, after a 20  
               year hiatus, and stated that because of staff vacancies,  








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               the process was moving slowly.


          In the 2012 Sunset Review Background Paper to the CAB, the  
            Committee staff 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  
               [USDE].  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 [CAB's] responsibility and need for  
               approving acupuncture 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 ACAOM 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. 


          ACAOM 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. 








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


          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 ACAOM 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   








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          supports the bill and writes, "AB 758 will amend language in the  
          Practice Act that was removed 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 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  
          graduate from any ACAOM approved school to become licensed in  
          our state.  California regulation of acupuncture must be  
          conducted by a California regulatory agency."


          The  American Association of Chinese Medicine and Acupuncture   
          supports the bill and writes, "Protection of the public is the  
          most fundamental mission of the [CAB].  California has the  
          highest Acupuncture education and training standards in the  
          nation.  The California public is protected only when the  
          training program for approval is finalized by our own California  
          governmental agency.  Without the authority of inspecting the  
          school on site, CAB has no way to check whether the school  
          carries out the approved curriculum properly."


          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  
          that considered this bill.  AB 758 represents a direct effort to  
          undermine the unanimous decision of the California  








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          legislature?As the committee is aware, apart from ACAOM, there  
          is currently no other agency recognized by the USDE for  
          professional accreditation of [acupuncture and oriental medicine  
          (AOM)] schools and programs in the United States. No other AOM  
          accrediting agency has a pending application of the [USDE] for  
          such recognition.  Regional accrediting agencies assess  
          institutional capacity, without in depth review of curriculum,  
          so it is important for AOM programs to have professional  
          accreditation to ensure student learning outcomes and  
          professional competencies are met by approved programs, as is  
          the practice throughout professional/medical education?The  
          Council's member colleges that have been approved by the CAB are  
          already undergoing oversight by ACAOM's more rigorous  
          accreditation process.  The CAB's duplicative attempts at  
          oversight are not only unnecessary but a drain on the resources  
          of the colleges, on the student who have to incur higher tuition  
          to bear the burden of the additional costs of a dual regulatory  
          regime, and on the patients at school clinics who have to incur  
          higher costs to treatment."


          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? the 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 by  
          reviewing curricular checklists, syllabi and course catalogs,  
          there is no discernible purpose for conducting site visits as  
          part of this process.  Recent CAB site visit reports indicate  
          that the Board may already be stretching its regulatory  
          authority by enforcing broadly and vaguely defined rules in an  
          exceptionally specific and arbitrary fashion.  This 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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          The  Southern California University of Health Sciences  also  
          opposes the bill and writes, "It is no secret that the CAB has  
          been fraught with administrative and political difficulties for  
          decades.  SB 1246, by shunting CAB school approval power to the  
          nationally recognized programmatic accreditor, brings a welcome  
          change to the regulation of the profession of acupuncture in the  
          State of California.  The CAB has neither the professional  
          educational expertise, nor the financial or staff resources to  
          oversee California acupuncture school board approval."


          POLICY ISSUES FOR CONSIDERATION:


          Sunset Review Recommendations of 2014.  The intent of SB 1246  
          was to implement the recommendations made after the thorough  
          sunset review process had been conducted. Further, the  
          recommendations are consistent with recommendations made by the  
          Little Hoover Commission who conducted a comparative analysis of  
          the school approval processes of the ACAOM and the CAB in 2004.   
          This bill would undo several of the solutions designed to  
          rectify the identified problems with the CAB, including  
          authorizing accreditation by any USDE national accreditation  
          organization and reinstating the CAB's authority to conduct  
          school site visits.  


          In addition, the changes required by SB 1246 have not gone into  
          effect-they will become operative on January 1, 2017- after the  
          CAB is next reviewed by the joint oversight Committees in March  
          of 2016.  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.










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          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  
          committee staff.  


          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 during its 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 from various organizations and individuals as well as  
          statements made by the CAB staff during public CAB meetings.  


          As was thoroughly discussed during the 2014 Sunset Review  
          hearings, this is quite unlikely.  The law states that the CAB  
          must set the curriculum standards that acupuncture schools must  








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          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 any 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  
          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 that would  
          not be involved in the specifics of a program, such as the  
          clinical chart review.  


          Is there a need for the bill? One has only to review the prior  
          sunset review and other reports about the CAB to understand that  
          this regulatory board has had consistent problems with its  
          functioning. Though many of the problems are in the past, and  
          the new CAB is making some changes to the way the board  
          operates, the sponsor continues to pressure the Legislature to  
          make no changes, and in this instance, reverse the recent  
          changes that have not yet taken effect and that the Legislature  
          has mandated.  


          Based on the aforementioned reasons, in combination with the  
          fact that the CAB is currently undergoing sunset review by this  








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          committee, that the Legislature made a 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 Acupuncture Political Action Committee


          American Association of Acupuncture & Traditional Chinese  
          Medicine


          American Association of Chinese Medicine and Acupuncture


          American Institute of Acupuncture Orthopedics & Traumatology


          American Traditional Chinese Medicine Society


          Asian Pacific Islander American Public Affairs Association


          California Acupuncture Medical Association










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          California Acupuncture Oriental Medicine Association


          California Acupuncturists United Association


          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


          UPC Medical Supplies, Inc.


          Yuin University


          Over 35 individuals




          REGISTERED OPPOSITION:  








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          Acupuncture & Integrative Medicine College


          American College of Traditional Chinese Medicine


          AOMA Graduate School of Integrative Medicine


          Atlantic Institute of Oriental Medicine


          California Institute of Integral Studies


          California State Oriental Medical Association


          Council of Colleges of Acupuncture and Oriental Medicine


          Emperor's College


          National College of Natural Medicine


          Southern California University of Health Sciences







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










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