Amended in Senate July 1, 2015

Amended in Assembly May 28, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1306


Introduced by Assembly Member Burke

(Coauthor: Assembly Member Mark Stone)

February 27, 2015


An act to amend Sections 650.01,begin insert 650.02,end insert 2725.1, 2746.2, 2746.5, 2746.51, 2746.52, 4061, 4076, and 4170 of, and to add Section 2746.6 to, the Business and Professions Code, relating to healing arts.

LEGISLATIVE COUNSEL’S DIGEST

AB 1306, as amended, Burke. Healing arts: certified nurse-midwives: scope of practice.

(1) Existing law, the Nursing Practice Act, provides for the licensure and regulation of the practice of nursing by the Board of Registered Nursing and authorizes the board to issue a certificate to practice nurse-midwifery to a person who meets educational standards established by the board or the equivalent of those educational standards. The act makes the violation of any of its provisions a misdemeanor punishable upon conviction by imprisonment in the county jail for not less than 10 days nor more than one year, or by a fine of not less than $20 nor more than $1,000, or by both that fine and imprisonment.

This bill would additionally require an applicant for a certificate to practice nurse-midwifery to provide evidence of current advanced level national certification by a certifying body that meets standards established and approved by the board. This bill would also require the board to create and appoint a Nurse-Midwifery Advisory Council consisting of certified nurse-midwives in good standing with experience in hospitalbegin delete and nonhospital practiceend delete settings,begin insert alternative birth settings, and home settings,end insert a nurse-midwife educator, as specified, and a consumer of midwifery care. This bill would requirebegin insert the council to consist of a majority of certified nurse-midwives and would requireend insert the council to make recommendations to the board on all matters related to nurse-midwifery practice, education,begin insert disciplinary actions, standards of care,end insert and other matters specified by the board, and would require the council to meet regularly, but at least twice a year. This bill wouldbegin delete alsoend delete prohibit corporations and other artificial legal entities from having professional rights, privileges, or powers under the act, except as specified.begin insert The bill would authorize specified entities to employ a certified nurse-midwife and charge for professional services rendered by that certified nurse-midwife, as provided.end insert

(2) The act authorizes a certified nurse-midwife, under the supervision of a licensed physician and surgeon, to attend cases of normal childbirth and to provide prenatal, intrapartum, and postpartum care, including family-planning care, for the mother, and immediate care for the newborn, and provides that the practice of nurse-midwifery constitutes the furthering or undertaking by a certified person, under the supervision of a licensed physician and surgeon who has current practice or training in obstetrics, to assist a woman in childbirth so long as progress meets criteria accepted as normal.

This bill would delete those provisions and would instead authorize a certified nurse-midwife to manage a full range ofbegin delete primary healthend deletebegin insert gynecological and obstetricend insert care services for women from adolescence beyond menopause,begin delete including, but not limited to, gynecologic and family planning services.end deletebegin insert as provided.end insert The bill would authorize a certified nurse-midwife to practice inbegin delete allend deletebegin insert specifiedend insert settings, including, but not limited to, a homebegin insert settingend insert. This bill would declare that the practice of nurse-midwifery within a health care system provides for consultation, collaboration, or referral as indicated by the health status of the client and the resources of the medical personnel available in the setting of care, and would provide that the practice of nurse-midwifery emphasizes informed consent, preventive care, and early detection and referral of complications to a physician and surgeon. begin deleteThis bill would authorize a certified nurse-midwife to provide peripartum care in an out-of-hospital setting to low-risk women with uncomplicated singleton-term pregnancies who are expected to have uncomplicated birth.end delete

(3) The act authorizes a certified nurse-midwife to furnish and order drugs or devices incidentally to the provision of family planning services, routine health care or perinatal care, and care rendered consistently with the certified nurse-midwife’s educational preparation in specified facilities and clinics, and only in accordance with standardized procedures and protocols, as specified.

This bill would delete the requirement that drugs or devices are furnished or ordered in accordance with standardized procedures and protocols. The bill would authorize a certified nurse-midwife to furnish and order drugs or devices in connection with care rendered in a home, and would authorize a certified nurse-midwife to directly procure supplies and devices, to order, obtain, and administer drugs and diagnostic tests, to order laboratory and diagnostic testing, and to receive reports that are necessary to his or her practice as a certified nurse-midwife and that are consistent with nurse-midwifery education preparation.

(4) The act also authorizes a certified nurse-midwife to perform and repair episiotomies and to repair first-degree and 2nd-degree lacerations of the perineum in a licensed acute care hospital and a licensed alternate birth center, if certain requirements are met, including, but not limited to, that episiotomies are performed pursuant to protocols developed and approved by the supervising physician and surgeon.

This bill would also authorize a certified nurse-midwife to perform and repair episiotomies and to repair first-degree and 2nd-degree lacerations of the perineum in a home, and would delete all requirements that those procedures be performed pursuant to protocols developed and approved by the supervising physician and surgeon. The bill would require a certified nurse-midwife to provide emergency care to a patient during times when a physician and surgeon is unavailable.

This bill would provide that a consultative relationship between a certified nurse-midwife and a physician and surgeon by it self is not a basis for finding the physician and surgeon liable for any acts or omissions on the part of the certified nurse-midwife. The bill would also update cross-references as needed.

(5) Because the act makes a violation of any of its provisions a misdemeanor, this bill would expand the scope of an existing crime and therefore this bill would impose a state-mandated local program.

(6) Existing law prohibits a licensee, as defined, from referring a person for laboratory, diagnostic, nuclear medicine, radiation oncology, physical therapy, physical rehabilitation, psychometric testing, home infusion therapy, or diagnostic imaging goods or services if the licensee or his or her immediate family has a financial interest with the person or entity that receives the referral, and makes a violation of that prohibition punishable as a misdemeanor. Under existingbegin delete lawend deletebegin insert law,end insert the Medical Board of California is required to review the facts and circumstances of any conviction for violating the prohibition, and to take appropriate disciplinary action if the licensee has committed unprofessional conduct.begin insert Existing law provides that, among other exceptions, this prohibition does not apply to a licensee who refers a person to a health facility if specified conditions are met.end insert

This bill would include a certified nurse-midwife under the definition of a licensee, which would expand the scope of an existing crime and therefore impose a state-mandated local program. The bill wouldbegin delete alsoend delete require the Board of Registered Nursing to review the facts and circumstances of any conviction of a certified nurse-midwife for violating that prohibition, and would require the board to take appropriate disciplinary action if the certified nurse-midwife has committed unprofessional conduct.begin insert The bill would additionally authorize a licensee to refer a person to a licensed alternative birth center, as defined, or a nationally accredited alternative birth center.end insert

(7)begin insertend insertThe California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P4    1

SECTION 1.  

Section 650.01 of the Business and Professions
2Code
is amended to read:

3

650.01.  

(a) Notwithstanding Section 650, or any other law, it
4is unlawful for a licensee to refer a person for laboratory, diagnostic
5nuclear medicine, radiation oncology, physical therapy, physical
6rehabilitation, psychometric testing, home infusion therapy, or
7diagnostic imaging goods or services if the licensee or his or her
8immediate family has a financial interest with the person or in the
9entity that receives the referral.

P5    1(b) For purposes of this section and Section 650.02, the
2following shall apply:

3(1) “Diagnostic imaging” includes, but is not limited to, all
4 X-ray, computed axial tomography, magnetic resonance imaging
5nuclear medicine, positron emission tomography, mammography,
6and ultrasound goods and services.

7(2) A “financial interest” includes, but is not limited to, any
8type of ownership interest, debt, loan, lease, compensation,
9remuneration, discount, rebate, refund, dividend, distribution,
10subsidy, or other form of direct or indirect payment, whether in
11money or otherwise, between a licensee and a person or entity to
12whom the licensee refers a person for a good or service specified
13in subdivision (a). A financial interest also exists if there is an
14indirect financial relationship between a licensee and the referral
15recipient including, but not limited to, an arrangement whereby a
16licensee has an ownership interest in an entity that leases property
17to the referral recipient. Any financial interest transferred by a
18licensee to any person or entity or otherwise established in any
19person or entity for the purpose of avoiding the prohibition of this
20section shall be deemed a financial interest of the licensee. For
21purposes of this paragraph, “direct or indirect payment” shall not
22include a royalty or consulting fee received by a physician and
23surgeon who has completed a recognized residency training
24program in orthopedics from a manufacturer or distributor as a
25result of his or her research and development of medical devices
26and techniques for that manufacturer or distributor. For purposes
27of this paragraph, “consulting fees” means those fees paid by the
28manufacturer or distributor to a physician and surgeon who has
29completed a recognized residency training program in orthopedics
30only for his or her ongoing services in making refinements to his
31or her medical devices or techniques marketed or distributed by
32the manufacturer or distributor, if the manufacturer or distributor
33does not own or control the facility to which the physician is
34referring the patient. A “financial interest” shall not include the
35receipt of capitation payments or other fixed amounts that are
36prepaid in exchange for a promise of a licensee to provide specified
37health care services to specified beneficiaries. A “financial interest”
38shall not include the receipt of remuneration by a medical director
39of a hospice, as defined in Section 1746 of the Health and Safety
40Code, for specified services if the arrangement is set out in writing,
P6    1and specifies all services to be provided by the medical director,
2the term of the arrangement is for at least one year, and the
3compensation to be paid over the term of the arrangement is set
4in advance, does not exceed fair market value, and is not
5determined in a manner that takes into account the volume or value
6of any referrals or other business generated between parties.

7(3) For the purposes of this section, “immediate family” includes
8the spouse and children of the licensee, the parents of the licensee,
9and the spouses of the children of the licensee.

10(4) “Licensee” means a physician as defined in Section 3209.3
11of the Labor Code, and a certified nurse-midwife as defined in
12Article 2.5 (commencing with Section 2746) of Chapter 6 of
13Division 2 of the Business and Professions Code.

14(5) “Licensee’s office” means either of the following:

15(A) An office of a licensee in solo practice.

16(B) An office in which services or goods are personally provided
17by the licensee or by employees in that office, or personally by
18independent contractors in that office, in accordance with other
19provisions of law. Employees and independent contractors shall
20be licensed or certified when licensure or certification is required
21by law.

22(6) “Office of a group practice” means an office or offices in
23which two or more licensees are legally organized as a partnership,
24professional corporation, or not-for-profit corporation, licensed
25pursuant to subdivision (a) of Section 1204 of the Health and Safety
26Code, for which all of the following apply:

27(A) Each licensee who is a member of the group provides
28substantially the full range of services that the licensee routinely
29provides, including medical care, consultation, diagnosis, or
30treatment through the joint use of shared office space, facilities,
31equipment, and personnel.

32(B) Substantially all of the services of the licensees who are
33members of the group are provided through the group and are
34billed in the name of the group and amounts so received are treated
35as receipts of the group, except in the case of a multispecialty
36clinic, as defined in subdivision (l) of Section 1206 of the Health
37and Safety Code, physician services are billed in the name of the
38multispecialty clinic and amounts so received are treated as receipts
39of the multispecialty clinic.

P7    1(C) The overhead expenses of, and the income from, the practice
2are distributed in accordance with methods previously determined
3by members of the group.

4(c) It is unlawful for a licensee to enter into an arrangement or
5scheme, such as a cross-referral arrangement, that the licensee
6knows, or should know, has a principal purpose of ensuring
7referrals by the licensee to a particular entity that, if the licensee
8directly made referrals to that entity, would be in violation of this
9section.

10(d) No claim for payment shall be presented by an entity to any
11individual, third party payer, or other entity for a good or service
12furnished pursuant to a referral prohibited under this section.

13(e) No insurer, self-insurer, or other payer shall pay a charge or
14lien for any good or service resulting from a referral in violation
15of this section.

16(f) A licensee who refers a person to, or seeks consultation from,
17an organization in which the licensee has a financial interest, other
18than as prohibited by subdivision (a), shall disclose the financial
19interest to the patient, or the parent or legal guardian of the patient,
20in writing, at the time of the referral or request for consultation.

21(1) If a referral, billing, or other solicitation is between one or
22more licensees who contract with a multispecialty clinic pursuant
23to subdivision (l) of Section 1206 of the Health and Safety Code
24or who conduct their practice as members of the same professional
25corporation or partnership, and the services are rendered on the
26same physical premises, or under the same professional corporation
27or partnership name, the requirements of this subdivision may be
28met by posting a conspicuous disclosure statement at the
29registration area or by providing a patient with a written disclosure
30statement.

31(2) If a licensee is under contract with the Department of
32Corrections or the California Youth Authority, and the patient is
33an inmate or parolee of either respective department, the
34requirements of this subdivision shall be satisfied by disclosing
35financial interests to either the Department of Corrections or the
36California Youth Authority.

37(g) A violation of subdivision (a) shall be a misdemeanor. In
38the case of a licensee who is a physician, the Medical Board of
39California shall review the facts and circumstances of any
40conviction pursuant to subdivision (a) and take appropriate
P8    1disciplinary action if the licensee has committed unprofessional
2conduct. In the case of a licensee who is a certified nurse-midwife,
3the Board of Registered Nursing shall review the facts and
4circumstances of any conviction pursuant to subdivision (a) and
5take appropriate disciplinary action if the licensee has committed
6unprofessional conduct. Violations of this section may also be
7subject to civil penalties of up to five thousand dollars ($5,000)
8for each offense, which may be enforced by the Insurance
9Commissioner, Attorney General, or a district attorney. A violation
10of subdivision (c), (d), or (e) is a public offense and is punishable
11upon conviction by a fine not exceeding fifteen thousand dollars
12($15,000) for each violation and appropriate disciplinary action,
13including revocation of professional licensure, by the Medical
14Board of California, the Board of Registered Nursing, or other
15appropriate governmental agency.

16(h) This section shall not apply to referrals for services that are
17described in and covered by Sections 139.3 and 139.31 of the
18Labor Code.

19(i) This section shall become operative on January 1, 1995.

20begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 650.02 of the end insertbegin insertBusiness and Professions Codeend insert
21begin insert is amended to read:end insert

22

650.02.  

The prohibition of Section 650.01 shall not apply to
23or restrict any of the following:

24(a) A licensee may refer a patient for a good or service otherwise
25prohibited by subdivision (a) of Section 650.01 if the licensee’s
26regular practice is located where there is no alternative provider
27of the service within either 25 miles or 40 minutes traveling time,
28via the shortest route on a paved road. If an alternative provider
29commences furnishing the good or service for which a patient was
30referred pursuant to this subdivision, the licensee shall cease
31referrals under this subdivision within six months of the time at
32which the licensee knew or should have known that the alternative
33provider is furnishing the good or service. A licensee who refers
34to or seeks consultation from an organization in which the licensee
35has a financial interest under this subdivision shall disclose this
36interest to the patient or the patient’s parents or legal guardian in
37writing at the time of referral.

38(b) A licensee, when the licensee or his or her immediate family
39has one or more of the following arrangements with another
P9    1licensee, a person, or an entity, is not prohibited from referring a
2patient to the licensee, person, or entity because of the arrangement:

3(1) A loan between a licensee and the recipient of the referral,
4if the loan has commercially reasonable terms, bears interest at
5the prime rate or a higher rate that does not constitute usury, is
6adequately secured, and the loan terms are not affected by either
7party’s referral of any person or the volume of services provided
8by either party.

9(2) A lease of space or equipment between a licensee and the
10recipient of the referral, if the lease is written, has commercially
11reasonable terms, has a fixed periodic rent payment, has a term of
12one year or more, and the lease payments are not affected by either
13party’s referral of any person or the volume of services provided
14by either party.

15(3) Ownership of corporate investment securities, including
16shares, bonds, or other debt instruments that may be purchased on
17terms generally available to the public and that are traded on a
18licensed securities exchange or NASDAQ, do not base profit
19distributions or other transfers of value on the licensee’s referral
20of persons to the corporation, do not have a separate class or
21accounting for any persons or for any licensees who may refer
22persons to the corporation, and are in a corporation that had, at the
23end of the corporation’s most recent fiscal year, or on average
24during the previous three fiscal years, stockholder equity exceeding
25seventy-five million dollars ($75,000,000).

26(4) Ownership of shares in a regulated investment company as
27defined in Section 851(a) of the federal Internal Revenue Code, if
28the company had, at the end of the company’s most recent fiscal
29year, or on average during the previous three fiscal years, total
30assets exceeding seventy-five million dollars ($75,000,000).

31(5) A one-time sale or transfer of a practice or property or other
32financial interest between a licensee and the recipient of the referral
33if the sale or transfer is for commercially reasonable terms and the
34consideration is not affected by either party’s referral of any person
35or the volume of services provided by either party.

36(6) A personal services arrangement between a licensee or an
37immediate family member of the licensee and the recipient of the
38referral if the arrangement meets all of the following requirements:

39(A) It is set out in writing and is signed by the parties.

P10   1(B) It specifies all of the services to be provided by the licensee
2or an immediate family member of the licensee.

3(C) The aggregate services contracted for do not exceed those
4that are reasonable and necessary for the legitimate business
5purposes of the arrangement.

6(D) A person who is referred by a licensee or an immediate
7family member of the licensee is informed in writing of the
8personal services arrangement that includes information on where
9a person may go to file a complaint against the licensee or the
10immediate family member of the licensee.

11(E) The term of the arrangement is for at least one year.

12(F) The compensation to be paid over the term of the
13arrangement is set in advance, does not exceed fair market value,
14and is not determined in a manner that takes into account the
15volume or value of any referrals or other business generated
16between the parties.

17(G) The services to be performed under the arrangement do not
18involve the counseling or promotion of a business arrangement or
19other activity that violates any state or federal law.

20(c) (1) A licensee may refer a person to a health facility, as
21defined in Section 1250 of the Health and Safety Code,begin insert a licensed
22alternative birth center, as defined in paragraph (4) of subdivision
23(b) of Section 1204 of the Health and Safety Code,end insert
or to any
24facilitybegin insert, or nationally accredited alternative birth center,end insert owned
25or leased by a health facility, if the recipient of the referral does
26not compensate the licensee for the patient referral, and any
27equipment lease arrangement between the licensee and the referral
28recipient complies with the requirements of paragraph (2) of
29subdivision (b).

30(2) Nothing shall preclude this subdivision from applying to a
31licensee solely because the licensee has an ownership or leasehold
32interest in an entire health facility or an entity that owns or leases
33an entire health facility.

34(3) A licensee may refer a person to a health facility for any
35service classified as an emergency under subdivision (a) or (b) of
36Section 1317.1 of the Health and Safety Code.

37(4) A licensee may refer a person to any organization that owns
38or leases a health facility licensed pursuant to subdivision (a), (b),
39or (f) of Section 1250 of the Health and Safety Code if the licensee
40is not compensated for the patient referral, the licensee does not
P11   1receive any payment from the recipient of the referral that is based
2or determined on the number or value of any patient referrals, and
3any equipment lease arrangement between the licensee and the
4referral recipient complies with the requirements of paragraph (2)
5of subdivision (b). For purposes of this paragraph, the ownership
6may be through stock or membership, and may be represented by
7a parent holding company that solely owns or controls both the
8health facility organization and the affiliated organization.

9(d) A licensee may refer a person to a nonprofit corporation that
10provides physician services pursuant to subdivision (l) of Section
111206 of the Health and Safety Code if the nonprofit corporation
12is controlled through membership by one or more health facilities
13or health facility systems and the amount of compensation or other
14transfer of funds from the health facility or nonprofit corporation
15to the licensee is fixed annually, except for adjustments caused by
16physicians joining or leaving the groups during the year, and is
17not based on the number of persons utilizing goods or services
18specified in Section 650.01.

19(e) A licensee compensated or employed by a university may
20refer a person for a physician service, to any facility owned or
21operated by the university, or to another licensee employed by the
22university, provided that the facility or university does not
23compensate the referring licensee for the patient referral. In the
24case of a facility that is totally or partially owned by an entity other
25than the university, but that is staffed by university physicians,
26those physicians may not refer patients to the facility if the facility
27compensates the referring physicians for those referrals.

28(f) The prohibition of Section 650.01 shall not apply to any
29service for a specific patient that is performed within, or goods
30that are supplied by, a licensee’s office, or the office of a group
31practice. Further, the provisions of Section 650.01 shall not alter,
32limit, or expand a licensee’s ability to deliver, or to direct or
33supervise the delivery of, in-office goods or services according to
34the laws, rules, and regulations governing his or her scope of
35practice.

36(g) The prohibition of Section 650.01 shall not apply to cardiac
37rehabilitation services provided by a licensee or by a suitably
38trained individual under the direct or general supervision of a
39licensee, if the services are provided to patients meeting the criteria
40for Medicare reimbursement for the services.

P12   1(h) The prohibition of Section 650.01 shall not apply if a licensee
2is in the office of a group practice and refers a person for services
3or goods specified in Section 650.01 to a multispecialty clinic, as
4defined in subdivision (l) of Section 1206 of the Health and Safety
5Code.

6(i) The prohibition of Section 650.01 shall not apply to health
7care services provided to an enrollee of a health care service plan
8licensed pursuant to the Knox-Keene Health Care Service Plan
9Act of 1975 (Chapter 2.2 (commencing with Section 1340) of
10Division 2 of the Health and Safety Code).

11(j) The prohibition of Section 650.01 shall not apply to a request
12by a pathologist for clinical diagnostic laboratory tests and
13pathological examination services, a request by a radiologist for
14diagnostic radiology services, or a request by a radiation oncologist
15for radiation therapy if those services are furnished by, or under
16the supervision of, the pathologist, radiologist, or radiation
17oncologist pursuant to a consultation requested by another
18physician.

19(k) This section shall not apply to referrals for services that are
20described in and covered by Sections 139.3 and 139.31 of the
21Labor Code.

22(l) This section shall become operative on January 1, 1995.

23

begin deleteSEC. 2.end delete
24begin insertSEC. 3.end insert  

Section 2725.1 of the Business and Professions Code
25 is amended to read:

26

2725.1.  

(a) Notwithstanding any other law, a registered nurse
27may dispense drugs or devices upon an order by a licensed
28physician and surgeon or an order by a certified nurse-midwife,
29nurse practitioner, or physician assistant issued pursuant to Section
302746.51, 2836.1, or 3502.1, respectively, if the registered nurse is
31functioning within a licensed primary care clinic as defined in
32subdivision (a) of Section 1204 of, or within a clinic as defined in
33subdivision (b), (c), (h), or (j) of Section 1206 of, the Health and
34Safety Code.

35(b) No clinic shall employ a registered nurse to perform
36dispensing duties exclusively. No registered nurse shall dispense
37drugs in a pharmacy, keep a pharmacy, open shop, or drugstore
38for the retailing of drugs or poisons. No registered nurse shall
39compound drugs. Dispensing of drugs by a registered nurse, except
40a certified nurse-midwife who functions pursuant to Section
P13   12746.51 or a nurse practitioner who functions pursuant to a
2standardized procedure described in Section 2836.1, or protocol,
3shall not include substances included in the California Uniform
4Controlled Substances Act (Division 10 (commencing with Section
511000) of the Health and Safety Code). Nothing in this section
6shall exempt a clinic from the provisions of Article 13
7(commencing with Section 4180) of Chapter 9.

8(c) This section shall not be construed to limit any other
9authority granted to a certified nurse-midwife pursuant to Article
102.5 (commencing with Section 2746), to a nurse practitioner
11pursuant to Article 8 (commencing with Section 2834), or to a
12physician assistant pursuant to Chapter 7.7 (commencing with
13Section 3500).

14(d) This section shall not be construed to affect the sites or types
15of health care facilities at which drugs or devices are authorized
16to be dispensed pursuant to Chapter 9 (commencing with Section
174000).

18

begin deleteSEC. 3.end delete
19begin insertSEC. 4.end insert  

Section 2746.2 of the Business and Professions Code
20 is amended to read:

21

2746.2.  

(a) Each applicant shall show by evidence satisfactory
22to the board that he or she has met the educational standards
23established by the board or has at least the equivalent thereof,
24including evidence of current advanced level national certification
25by a certifying body that meets standards established and approved
26by the board.

27(b) The board shall create and appoint a Nurse-Midwifery
28Advisory Council consisting of certified nurse-midwives in good
29standing with experience in hospitalbegin delete and nonhospital practice
30settings,end delete
begin insert settings, alternative birth center settings, and home
31settings,end insert
a nurse-midwife educator who has demonstrated
32familiarity with begin delete consumer needs, collegial practice and
33accompanied liability, and relatedend delete
educational standards in the
34delivery of maternal-child health care,begin delete andend delete a consumer of
35midwiferybegin delete care.end deletebegin insert care, and at least two qualified physicians
36appointed by the Medical Board of California, including an
37obstetrician that has experience working with nurse-midwives.end insert

38 The councilbegin insert membership shall consist of a majority of certified
39nurse-midwives andend insert
shall make recommendations to the board on
40all matters related to nurse-midwifery practice, education, and
P14   1other matters as specified by the board. The council shall meet
2regularly, but at least twice a year.

3(c) Corporations and other artificial legal entities shall have no
4professional rights, privileges, or powers. However, the Board of
5Registered Nursing may in its discretion, after such investigation
6and review of such documentary evidence as it may require, and
7under regulations adopted by it, grant approval of the employment
8of licensees on a salary basis by licensed charitable institutions,
9foundations, or clinics, if no charge for professional services
10rendered patients is made by any such institution, foundation, or
11clinic.

begin insert

12(d) Notwithstanding subdivision (c), the following entities may
13employ a certified nurse-midwife and charge for professional
14services rendered by a certified nurse-midwife; however, the entity
15shall not interfere with, control, or otherwise direct the
16professional judgment of a certified nurse-midwife:

end insert
begin insert

17(1) A clinic operated under subdivision (p) of Section 1206 of
18the Health and Safety Code.

end insert
begin insert

19(2) A hospital owned and operated by a health care district
20pursuant to Division 23 (commencing with Section 32000) of the
21Health and Safety Code.

end insert
begin insert

22(3) A clinic operated primarily for the purpose of medical
23education or nursing education by a public or private nonprofit
24university medical school, which is approved by the Medical Board
25or the Osteopathic Medical Board of California, provided the
26certified nurse-midwife holds an academic appointment on the
27faculty of the university, including, but not limited to, the University
28of California medical schools and hospitals.

end insert
begin insert

29(4) A licensed alternative birth center, as defined in paragraph
30(4) of subdivision (b) of Section 1204 of the Health and Safety
31Code, or a nationally accredited alternative birth center owned
32or operated by a nursing corporation, as defined in Section 2775
33of the Business and Professions Code.

end insert
34

begin deleteSEC. 4.end delete
35begin insertSEC. 5.end insert  

Section 2746.5 of the Business and Professions Code
36 is amended to read:

37

2746.5.  

(a) The certificate to practice nurse-midwifery
38authorizes the holder to manage a full range of primarybegin delete healthend delete
39begin insert gynecological and obstetricend insert care services for women from
40adolescence to beyondbegin delete menopause.end deletebegin insert menopause, consistent with
P15   1the Core Competencies for Basic Midwifery practice promulgated
2by the American College of Nurse-Midwives, or its successor
3national professionalend insert
begin insert organization, as approved by the board.end insert
4 These services include, but are not limited to, primary health care,
5gynecologic and family planning services, preconception care,
6care during pregnancy, childbirth, and the postpartum period,
7immediate care of the newborn, and treatment of male partners for
8sexually transmittedbegin delete infections. A certified nurse-midwife is
9authorized to practice in all settings, including, but not limited to,
10private practice, clinics, hospitals, birth centers, and homes.end delete

11begin insert infections, utilizing consultation, collaboration, or referral to
12appropriate levels of health care services, as indicated.end insert

begin insert

13(b) A certified nurse-midwife may practice in the following
14settings:

end insert
begin delete

15(b)

end delete
begin insert

16(1) A licensed clinic as described in Chapter 1 (commencing
17with Section 1200) of Division 2 of the Health and Safety Code.

end insert
begin insert

18(2) A facility as described in Chapter 2 (commencing with
19Section 1250) of Division 2 of the Health and Safety Code.

end insert
begin insert

20(3) A facility as described in Chapter 2.5 (commencing with
21Section 1440) of Division 2 of the Health and Safety Code.

end insert
begin insert

22(4) A medical group practice, including a professional medical
23corporation, a medical partnership, a medical foundation exempt
24from licensure pursuant to Section 1206 of the Health and Safety
25Code, or another lawfully organized group of physicians that
26delivers, furnishes, or otherwise arranges for or provides health
27care services.

end insert
begin insert

28(5) A licensed alternative birth center, as described in Section
291204 of the Health and Safety Code, or nationally accredited birth
30center.

end insert
begin insert

31(6) A nursing corporation, as defined in Section 2775 of the
32Business and Professions Code.

end insert
begin insert

33(7) A home setting.

end insert
begin insert

34(A) Except as provided in subparagraph (B) of this paragraph,
35a certified nurse-midwife shall assist during pregnancy and
36childbirth in the home setting only when all of the following
37conditions apply:

end insert
begin insert

38(i) There is the absence of all of the following:

end insert
begin insert

39(I) Any preexisting maternal disease or condition likely to
40complicate the pregnancy.

end insert
begin insert

P16   1(II) Disease arising from the pregnancy likely to cause
2significant maternal and/or fetal compromise.

end insert
begin insert

3(III) Prior caesarean delivery.

end insert
begin insert

4(ii) There is a singleton fetus.

end insert
begin insert

5(iii) There is cephalic presentation at the onset of labor.

end insert
begin insert

6(iv) The gestational age of the fetus is greater than 370/7 weeks
7and less than 420/7 completed weeks of pregnancy at the onset of
8labor.

end insert
begin insert

9(v) Labor is spontaneous or induced in an outpatient setting.

end insert
begin insert

10(B) If a potential certified nurse-midwife client meets the
11conditions specified in clauses (ii) to (v), inclusive, of
12subparagraph (A), but fails to meet the conditions specified in
13clause (i) of subparagraph (A), and the woman still desires to be
14a client of the certified nurse-midwife, the certified nurse-midwife
15shall consult with a physician and surgeon trained in obstetrics
16and gynecology. A certified nurse-midwife may assist the woman
17in pregnancy and childbirth only if a physician and surgeon trained
18in obstetrics and gynecology is consulted and the physician and
19surgeon who performed the consultation determines that the risk
20factors presented by her disease or condition are not likely to
21significantly affect the course of pregnancy and childbirth.

end insert

22begin insert(c)end insert As used in this chapter, the practice of nurse-midwifery
23 within a health care system provides for consultation, collaboration,
24or referral as indicated by the health status of the patient and the
25resources and medical personnel available in the setting of care.
26begin delete When providing peripartum care in out-of-hospital settings, the
27certified nurse-midwife shall only provide care to low-risk women
28with uncomplicated singleton-term pregnancies who are expected
29to have an uncomplicated birth.end delete
The practice of nurse-midwifery
30care emphasizes informed consent, preventive care, and early
31detection and referral of complications to physicians and surgeons.
32While practicing in a hospital setting, the certified nurse-midwife
33shall collaboratively care for women with more complex health
34needs.

begin insert

35(d) A certified nurse-midwife practicing under subdivision (a)
36shall be subject to all credentialing and quality standards held by
37the facility in which he or she practices. The peer review body
38shall include nurse-midwives as part of the peer review body that
39reviews nurse-midwives. The peer review body of that facility shall
40impose standards that assure quality and patient safety in their
P17   1facility. The standards shall be approved by the relevant governing
2body unless found by a court to be arbitrary and capricious.

end insert
begin delete

3(c)

end delete
begin insert

4(e) The practice of nurse-midwifery does not include the
5assisting of childbirth by any forcible, or mechanical means, nor
6the performance of any version of those means.

end insert

7begin insert(f)end insert A certified nurse-midwife is not authorized to practice
8medicine and surgery by the provisions of this chapter.

begin delete

9(d)

end delete

10begin insert(g)end insert Any regulations promulgated by a state department that
11affect the scope of practice of a certified nurse-midwife shall be
12developed in consultation with the boardbegin insert and the Nurse-Midwifery
13Advisory Councilend insert
.

14

begin deleteSEC. 5.end delete
15begin insertSEC. 6.end insert  

Section 2746.51 of the Business and Professions Code
16 is amended to read:

17

2746.51.  

(a) Neither this chapter nor any other law shall be
18construed to prohibit a certified nurse-midwife from furnishing or
19ordering drugs or devices, including controlled substances
20classified in Schedule II, III, IV, or V under the California Uniform
21Controlled Substances Act (Division 10 (commencing with Section
2211000) of the Health and Safety Code), when the drugs or devices
23are furnished or ordered related to the provision of any of the
24following:

25(1) Family planning services, as defined in Section 14503 of
26the Welfare and Institutions Code.

27(2) Routine health care or perinatal care, as defined in
28subdivision (d) of Section 123485 of the Health and Safety Code.

29(3) Care rendered, consistent with the certified nurse-midwife’s
30educational preparation or for which clinical competency has been
31established and maintained, to persons within a facility specified
32in subdivision (a), (b), (c), (d), (i), or (j) of Section 1206 of the
33Health and Safety Code, a clinic as specified in Section 1204 of
34the Health and Safety Code, a general acute care hospital as defined
35in subdivision (a) of Section 1250 of the Health and Safety Code,
36a licensed birth center as defined in Section 1204.3 of the Health
37and Safety Code, or a special hospital specified as a maternity
38hospital in subdivision (f) of Section 1250 of the Health and Safety
39Code.

P18   1(4) Care rendered in a home pursuant to subdivision (a) of
2Section 2746.5.

3(b) (1) The furnishing or ordering of drugs or devices by a
4certified nurse-midwife is conditional on the issuance by the board
5of a number to the applicant who has successfully completed the
6requirements of paragraph (2). The number shall be included on
7all transmittals of orders for drugs or devices by the certified
8nurse-midwife. The board shall maintain a list of the certified
9nurse-midwives that it has certified pursuant to this paragraph and
10the number it has issued to each one. The board shall make the list
11available to the California State Board of Pharmacy upon its
12request. Every certified nurse-midwife who is authorized pursuant
13to this section to furnish or issue a drug order for a controlled
14substance shall register with the United States Drug Enforcement
15Administration.

16(2) The board has certified in accordance with paragraph (1)
17that the certified nurse-midwife has satisfactorily completed a
18course in pharmacology covering the drugs or devices to be
19furnished or ordered under this section. The board shall establish
20the requirements for satisfactory completion of this paragraph.

21(3) Certified nurse-midwives who are certified by the board and
22hold an active furnishing number, who are currently authorized to
23furnish Schedule II controlled substances, and who are registered
24with the United States Drug Enforcement Administration shall
25provide documentation of continuing education specific to the use
26of Schedule II controlled substances in settings other than a hospital
27based on standards developed by the board.

28(c) Drugs or devices furnished or ordered by a certified
29nurse-midwife may include Schedule II controlled substances
30under the California Uniform Controlled Substances Act (Division
3110 (commencing with Section 11000) of the Health and Safety
32Code) when the drugs and devices are furnished or ordered in
33accordance with requirements referenced in paragraphs (1) to (3),
34inclusive, of subdivision (b).begin insert In a nonhospital setting, a Schedule
35II controlled substance shall be furnished by a certified
36nurse-midwife only during labor and delivery and only after a
37consultation with a physician and surgeon. end insert

38(d) Furnishing of drugs or devices by a certified nurse-midwife
39means the act of making a pharmaceutical agent or agents available
40to the patient.

P19   1(e) “Drug order” or “order” for purposes of this section means
2an order for medication or for a drug or device that is dispensed
3to or for an ultimate user, issued by a certified nurse-midwife as
4an individual practitioner, within the meaning of Section 1306.03
5of Title 21 of the Code of Federal Regulations. Notwithstanding
6any other law, (1) a drug order issued pursuant to this section shall
7be treated in the same manner as a prescription of a physician; (2)
8all references to “prescription” in this code and the Health and
9Safety Code shall include drug orders issued by certified
10nurse-midwives; and (3) the signature of a certified nurse-midwife
11on a drug order issued in accordance with this section shall be
12 deemed to be the signature of a prescriber for purposes of this code
13and the Health and Safety Code.

14(f) A certified nurse-midwife is authorized to directly procure
15supplies and devices, to order, obtain, and administer drugs and
16diagnostic tests, to order laboratory and diagnostic testing, and to
17receive reports that are necessary to his or her practice as a certified
18nurse-midwife and consistent with nurse-midwifery education
19preparation.

20

begin deleteSEC. 6.end delete
21begin insertSEC. 7.end insert  

Section 2746.52 of the Business and Professions Code
22 is amended to read:

23

2746.52.  

(a) Notwithstanding Section 2746.5, the certificate
24to practice nurse-midwifery authorizes the holder to perform and
25repair episiotomies, and to repair first-degree and second-degree
26lacerations of the perineum, in a licensed acute care hospital, as
27defined in subdivision (a) of Section 1250 of the Health and Safety
28Code, in a licensed alternate birth center, as defined in paragraph
29(4) of subdivision (b) of Section 1204 of the Health and Safety
30Code,begin insert or a nationally accredited birth center,end insert and in a home
31pursuant tobegin delete subdivision (a)end deletebegin insert paragraph (7) of subdivision (b)end insert of
32Section 2746.5.

33(b) The certified nurse-midwife performing and repairing
34first-degree and second-degree lacerations of the perineum shall
35 do both of the following:

36(1) Ensure that all complications are referred to a physician and
37surgeon immediately.

38(2) Ensure immediate care of patients who are in need of care
39beyond the scope of practice of the certified nurse-midwife, or
P20   1provide emergency care for times when a physician and surgeon
2is not available.

3

begin deleteSEC. 7.end delete
4begin insertSEC. 8.end insert  

Section 2746.6 is added to the Business and Professions
5Code
, to read:

6

2746.6.  

A consultative relationship between a certified
7nurse-midwife and a physician and surgeon shall not, bybegin delete it self,end delete
8begin insert itself,end insert provide the basis for finding a physician and surgeon liable
9for any act or omission of the certified nurse-midwife.

10

begin deleteSEC. 8.end delete
11begin insertSEC. 9.end insert  

Section 4061 of the Business and Professions Code is
12amended to read:

13

4061.  

(a) A manufacturer’s sales representative shall not
14distribute any dangerous drug or dangerous device as a
15complimentary sample without the written request of a physician,
16dentist, podiatrist, optometrist, veterinarian, or naturopathic doctor
17pursuant to Section 3640.7. However, a certified nurse-midwife
18who functions pursuant to Section 2746.51, a nurse practitioner
19who functions pursuant to a standardized procedure described in
20Section 2836.1, or protocol, a physician assistant who functions
21pursuant to a protocol described in Section 3502.1, or a
22naturopathic doctor who functions pursuant to a standardized
23procedure or protocol described in Section 3640.5, may sign for
24the request and receipt of complimentary samples of a dangerous
25drug or dangerous device that has been identified in the
26standardized procedure, protocol, or practice agreement.
27Standardized procedures, protocols, and practice agreements shall
28include specific approval by a physician. A review process,
29consistent with the requirements of Section 2725, 3502.1, or
303640.5, of the complimentary samples requested and received by
31a nurse practitioner, certified nurse-midwife, physician assistant,
32or naturopathic doctor, shall be defined within the standardized
33procedure, protocol, or practice agreement.

34(b) Each written request shall contain the names and addresses
35of the supplier and the requester, the name and quantity of the
36specific dangerous drug desired, the name of the certified
37nurse-midwife, nurse practitioner, physician assistant, or
38naturopathic doctor, if applicable, receiving the samples pursuant
39to this section, the date of receipt, and the name and quantity of
40the dangerous drugs or dangerous devices provided. These records
P21   1shall be preserved by the supplier with the records required by
2Section 4059.

3(c) Nothing in this section is intended to expand the scope of
4practice of a certified nurse-midwife, nurse practitioner, physician
5assistant, or naturopathic doctor.

6

begin deleteSEC. 9.end delete
7begin insertSEC. 10.end insert  

Section 4076 of the Business and Professions Code
8 is amended to read:

9

4076.  

(a) A pharmacist shall not dispense any prescription
10except in a container that meets the requirements of state and
11federal law and is correctly labeled with all of the following:

12(1) Except when the prescriber or the certified nurse-midwife
13who functions pursuant to Section 2746.51, the nurse practitioner
14who functions pursuant to a standardized procedure described in
15Section 2836.1 or protocol, the physician assistant who functions
16pursuant to Section 3502.1, the naturopathic doctor who functions
17pursuant to a standardized procedure or protocol described in
18Section 3640.5, or the pharmacist who functions pursuant to a
19policy, procedure, or protocol pursuant to Section 4052.1, 4052.2,
20or 4052.6 orders otherwise, either the manufacturer’s trade name
21of the drug or the generic name and the name of the manufacturer.
22Commonly used abbreviations may be used. Preparations
23containing two or more active ingredients may be identified by
24the manufacturer’s trade name or the commonly used name or the
25principal active ingredients.

26(2) The directions for the use of the drug.

27(3) The name of the patient or patients.

28(4) The name of the prescriber or, if applicable, the name of the
29certified nurse-midwife who functions pursuant to Section 2746.51,
30the nurse practitioner who functions pursuant to a standardized
31procedure described in Section 2836.1 or protocol, the physician
32assistant who functions pursuant to Section 3502.1, the naturopathic
33doctor who functions pursuant to a standardized procedure or
34protocol described in Section 3640.5, or the pharmacist who
35functions pursuant to a policy, procedure, or protocol pursuant to
36Section 4052.1, 4052.2, or 4052.6.

37(5) The date of issue.

38(6) The name and address of the pharmacy, and prescription
39number or other means of identifying the prescription.

40(7) The strength of the drug or drugs dispensed.

P22   1(8) The quantity of the drug or drugs dispensed.

2(9) The expiration date of the effectiveness of the drug
3dispensed.

4(10) The condition or purpose for which the drug was prescribed
5if the condition or purpose is indicated on the prescription.

6(11) (A) Commencing January 1, 2006, the physical description
7of the dispensed medication, including its color, shape, and any
8identification code that appears on the tablets or capsules, except
9as follows:

10(i) Prescriptions dispensed by a veterinarian.

11(ii) An exemption from the requirements of this paragraph shall
12be granted to a new drug for the first 120 days that the drug is on
13the market and for the 90 days during which the national reference
14file has no description on file.

15(iii) Dispensed medications for which no physical description
16exists in any commercially available database.

17(B) This paragraph applies to outpatient pharmacies only.

18(C) The information required by this paragraph may be printed
19on an auxiliary label that is affixed to the prescription container.

20(D) This paragraph shall not become operative if the board,
21prior to January 1, 2006, adopts regulations that mandate the same
22labeling requirements set forth in this paragraph.

23(b) If a pharmacist dispenses a prescribed drug by means of a
24unit dose medication system, as defined by administrative
25regulation, for a patient in a skilled nursing, intermediate care, or
26other health care facility, the requirements of this section will be
27satisfied if the unit dose medication system contains the
28aforementioned information or the information is otherwise readily
29available at the time of drug administration.

30(c) If a pharmacist dispenses a dangerous drug or device in a
31facility licensed pursuant to Section 1250 of the Health and Safety
32Code, it is not necessary to include on individual unit dose
33containers for a specific patient, the name of the certified
34nurse-midwife who functions pursuant to Section 2746.51, the
35nurse practitioner who functions pursuant to a standardized
36procedure described in Section 2836.1 or protocol, the physician
37assistant who functions pursuant to Section 3502.1, the naturopathic
38doctor who functions pursuant to a standardized procedure or
39protocol described in Section 3640.5, or the pharmacist who
P23   1functions pursuant to a policy, procedure, or protocol pursuant to
2Section 4052.1, 4052.2, or 4052.6.

3(d) If a pharmacist dispenses a prescription drug for use in a
4facility licensed pursuant to Section 1250 of the Health and Safety
5Code, it is not necessary to include the information required in
6paragraph (11) of subdivision (a) when the prescription drug is
7administered to a patient by a person licensed under the Medical
8Practice Act (Chapter 5 (commencing with Section 2000)), the
9Nursing Practice Act (Chapter 6 (commencing with Section 2700)),
10or the Vocational Nursing Practice Act (Chapter 6.5 (commencing
11with Section 2840)), who is acting within his or her scope of
12practice.

13

begin deleteSEC. 10.end delete
14begin insertSEC. 11.end insert  

Section 4170 of the Business and Professions Code
15 is amended to read:

16

4170.  

(a) A prescriber shall not dispense drugs or dangerous
17devices to patients in his or her office or place of practice unless
18all of the following conditions are met:

19(1) The dangerous drugs or dangerous devices are dispensed to
20the prescriber’s own patient, and the drugs or dangerous devices
21are not furnished by a nurse or physician attendant.

22(2) The dangerous drugs or dangerous devices are necessary in
23the treatment of the condition for which the prescriber is attending
24the patient.

25(3) The prescriber does not keep a pharmacy, open shop, or
26drugstore, advertised or otherwise, for the retailing of dangerous
27drugs, dangerous devices, or poisons.

28(4) The prescriber fulfills all of the labeling requirements
29imposed upon pharmacists by Section 4076, all of the
30recordkeeping requirements of this chapter, and all of the packaging
31requirements of good pharmaceutical practice, including the use
32of childproof containers.

33(5) The prescriber does not use a dispensing device unless he
34or she personally owns the device and the contents of the device,
35and personally dispenses the dangerous drugs or dangerous devices
36to the patient packaged, labeled, and recorded in accordance with
37paragraph (4).

38(6) The prescriber, prior to dispensing, offers to give a written
39prescription to the patient that the patient may elect to have filled
40by the prescriber or by any pharmacy.

P24   1(7) The prescriber provides the patient with written disclosure
2that the patient has a choice between obtaining the prescription
3from the dispensing prescriber or obtaining the prescription at a
4pharmacy of the patient’s choice.

5(8) A certified nurse-midwife who functions pursuant to Section
62746.51, a nurse practitioner who functions pursuant to a
7standardized procedure described in Section 2836.1, or protocol,
8a physician assistant who functions pursuant to Section 3502.1, or
9a naturopathic doctor who functions pursuant to Section 3640.5,
10may hand to a patient of the supervising physician and surgeonbegin insert, if
11applicable,end insert
a properly labeled prescription drug prepackaged by
12a physician and surgeon, a manufacturer as defined in this chapter,
13or a pharmacist.

14(b) The Medical Board of California, the State Board of
15Optometry, the Bureau of Naturopathic Medicine, the Dental Board
16of California, the Osteopathic Medical Board of California, the
17Board of Registered Nursing, the Veterinary Medical Board, and
18the Physician Assistant Committee shall have authority with the
19California State Board of Pharmacy to ensure compliance with
20this section, and those boards are specifically charged with the
21enforcement of this chapter with respect to their respective
22licensees.

23(c) “Prescriber,” as used in this section, means a person, who
24holds a physician’s and surgeon’s certificate, a license to practice
25optometry, a license to practice naturopathic medicine, a license
26to practice dentistry, a license to practice veterinary medicine, or
27a certificate to practice podiatry, and who is duly registered by the
28Medical Board of California, the State Board of Optometry, the
29Bureau of Naturopathic Medicine, the Dental Board of California,
30the Veterinary Medical Board, or the Board of Osteopathic
31Examiners of this state.

32

begin deleteSEC. 11.end delete
33begin insertSEC. 12.end insert  

No reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution because
35the only costs that may be incurred by a local agency or school
36district will be incurred because this act creates a new crime or
37infraction, eliminates a crime or infraction, or changes the penalty
38for a crime or infraction, within the meaning of Section 17556 of
39the Government Code, or changes the definition of a crime within
P25   1the meaning of Section 6 of Article XIII B of the California
2Constitution.



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