BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 940|
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                                   THIRD READING 


          Bill No:  AB 940
          Author:   Ridley-Thomas (D) and Waldron (R)
          AmendedAmended:7/14/15 in Senate
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  8-0, 6/29/15
           AYES:  Hill, Bates, Block, Galgiani, Hernandez, Jackson,  
            Mendoza, Wieckowski
           NO VOTE RECORDED:  Berryhill

           SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

           ASSEMBLY FLOOR:  79-0, 6/1/15 - See last page for vote

           SUBJECT:   Clinical laboratories


          SOURCE:    California Clinical Laboratory Association

          DIGEST:  This bill allows a masters level clinical laboratory  
          bioanalyst who is not the Clinical Laboratory Improvement  
          Amendments (CLIA) lab director to be a laboratory director for a  
          high-complexity lab, allows a bioanalyst to gain experience in a  
          clinical laboratory certified by CLIA, and makes other  
          modifications to existing law.  

          ANALYSIS:  Existing federal law establishes conditions that  
          laboratories must meet to perform testing on human specimens for  
          certification under CLIA.  (Title 42, Code of Federal  
          Regulations (CFR) § 493.1)

          Existing state law:









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          1)Authorizes a person licensed as a clinical laboratory  
            bioanalyst or bioanalyst to:

             a)   If qualified under CLIA, to perform clinical laboratory  
               tests or examinations classified as of high complexity  
               under CLIA.  

             b)   Perform the duties and responsibilities of a laboratory  
               director, technical consultant, clinical consultant,  
               technical supervisor, and general supervisor, as specified  
               under CLIA, in the specialties of histocompatibility,  
               microbiology, diagnostic immunology, chemistry, hematology,  
               immunohematology, genetics, or other specialty or  
               subspecialty specified in regulations adopted by the  
               Department of Public Health (DPH). 

             c)   To perform any clinical laboratory test or examination  
               classified as waived or of moderate complexity under CLIA.   
               (Business and Professions Code (BPC) § 1203) 

          2)Defines the term "laboratory director" to means any person who  
            is:

             a)   A duly licensed physician and surgeon.

             b)   Only for purposes of a clinical laboratory test or  
               examination classified as waived:

               i)     A licensed clinical laboratory scientist.

               ii)    A licensed limited clinical laboratory scientist.

               iii)   A licensed naturopathic doctor.

               iv)    A licensed optometrist serving as the director of a  
                 laboratory which only performs specified clinical  
                 laboratory tests.

             c)   Licensed to direct a clinical laboratory under existing  
               law and who substantially meets the laboratory director  
               qualifications under CLIA for the type and complexity of  
               tests being offered by the laboratory.  (BPC § 1209 (a))

          3)Allows a clinical laboratory to have multiple laboratory  







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            directors.  (BPC § 1265) 

          This bill:

          1)Authorizes a master's level licensed clinical laboratory  
            bioanalyst or bioanalyst who is not the CLIA lab director to  
            perform all of the following:

             a)   Clinical laboratory tests or examinations classified as  
               of high complexity under CLIA.

             b)   The duties and responsibilities of a laboratory director  
               in the specialties of histocompatibility, microbiology,  
               diagnostic immunology, chemistry, hematology,  
               immunohematology, genetics, or other specialty or  
               subspecialty specified in DPH regulations.

          2)Defines "CLIA laboratory director" as the person identified on  
            the CLIA certificate issued to the laboratory by the federal  
            Centers for Medicare and Medicaid Services (CMS).

          3)Deletes requirements that specify a laboratory director must  
            substantially meet the requirements under CLIA.

          4)Requires that the following individuals who are identified as  
            the CLIA laboratory director of a laboratory that performs  
            clinical laboratory tests classified as moderate or high  
            complexity to meet the laboratory director qualifications  
            under CLIA for the type and complexity of tests being offered  
            by the laboratory:

             a)   A duly licensed physician and surgeon.

             b)   A person licensed by DPH to direct a clinical  
               laboratory.   

          5)Strikes reference to the requirement that an applicant for a  
            clinical bioanalyst license have four years' experience as a  
            "licensed" clinical laboratory scientist.

          6)Replaces the requirement that an applicant for a clinical  
            bioanalyst license have experience in a clinical laboratory  
            approved by the DPH and is certified under CLIA.








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          7)Authorizes a renewal fee for a clinical laboratory  
            toxicologist, clinical cytogeneticist, and clinical molecular  
            biologist.

          8)Makes clarifying and technical amendments.

          Background
          
          Laboratory Personnel Shortage.  According to the Healthcare  
          Laboratory Workforce Initiative, a collaboration of the Hospital  
          Council of Northern and Central California in conjunction with  
          the California Hospital Association, California is experiencing  
          a serious shortage of laboratory personnel.  It reports that the  
          number of clinical laboratory scientists declined in California  
          between 1999 and 2001 from 36,000 to 26,000, and, as of several  
          years ago, California ranks among the seven lowest states in the  
          ratio of clinical laboratory scientists per 100,000 people.  The  
          report further indicates that, "While these numbers appear  
          small, in fact their impact on patient care and hospital  
          operations is great. The average age of a CLS in California is  
          above 50."

          Several factors contribute to the shrinking clinical laboratory  
          workforce:

          1)Low visibility of the profession, resulting in a lack of  
            recognition and public understanding of laboratory careers.

          2)The growth of industries such as biotech and laboratory  
            manufacturers has increased the demand for skilled workers. 

          3)A lack of career development opportunities has discouraged  
            potential recruits and made it difficult to retain qualified  
            professionals.

          This bill is designed to create more professional opportunities  
          for individuals interested in a clinical laboratory career and  
          make it easier for professionals in other states to meet  
          California training requirements towards state licensure.  

          Bioanalysts.  The federal CLIA laws set the regulatory floor for  
          laboratory testing; states are free to develop higher standards,  
          and laboratories must follow whichever law is more stringent.   
          In most cases, California law is stricter than CLIA.  However,  







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          CLIA has higher requirements for a bioanalyst to become the  
          director of a lab conducting high complexity tests than  
          California.  CLIA requires the lab director for high complexity  
          testing to have, among other qualifications, a medical or  
          doctorate degree.  California law permits a lab directors to  
          "substantially meet" CLIA requirements.

          According the author, the purpose of the term "substantially"  
          was to allow for variation in case California sought full CLIA  
          exemption, which it has not, nor does it plan to.  Inclusion of  
          the word "substantially" was intended to allow  
          lesser-credentialed individuals to be lab directors for labs  
          conducting high complexity tests.  However, the DPH has  
          interpreted "substantially" to mean "fully."   Therefore, under  
          state law, all laboratory directors must meet all CLIA  
          requirements.

          This bill revises current law to allow a master's level  
          bioanalyst to be a lab director for a high complexity lab,  
          contrary to CLIA requirements.  The Author's office argues this  
          is not in direct conflict with federal law because California  
          law allows for multiple lab directors, and CLIA requires only  
          one; as long as a lab has one CLIA lab director responsible for  
          the direction of the lab and personnel, there may be other lab  
          directors performing lab director duties, but without the full  
          responsibility and liability associated with the CLIA lab  
          director.  DPH has not opined on validity of this proposal and  
          whether using the term "lab director" for both individuals who  
          are, and are not CLIA qualified would cause undue confusion.

          This bill also allows a bioanalyst to qualify for California  
          licensure in facilities that are not California Department of  
          Public Health approved, but rather CLIA certified.  The author's  
          office argues that this would allow more flexibility for  
          bioanalysts coming from out of state to qualify for state  
          licensure.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          SUPPORT:  (Verified8/19/15)

          California Clinical Laboratory Association (source) 
          American Association of Bioanalysts







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          American Clinical Laboratory Association 
          California Association of Bioanalysts
          California Society of Pathologists
          Laboratory Corporation of America 


          OPPOSITION:   (Verified8/19/15)


          None received


          ARGUMENTS IN SUPPORT:     The sponsor, California Clinical  
          Laboratory Association, the American Association of Bioanalysts,  
          and the California Association of Bioanalysts write, "This bill  
          proposes to re-establish a career ladder for clinical laboratory  
          personnel?.  AB 940 is necessary because the bill allows for  
          California to continue being a competitive state in the clinical  
          laboratory business that attracts new individuals in this  
          field."

          California Society of Pathologists write, "Clinical laboratories  
          still have shortages of multiple types of personnel.  We believe  
          that AB 940 will help create a career ladder to allow lab  
          personnel to enter and provide services in these specialty areas  
          with requisite training and experience."

          ASSEMBLY FLOOR:  79-0, 6/1/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Brough

          Prepared by:Sarah Huchel / B., P. & E.D. / (916) 651-4104
          8/19/15 20:48:52







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