BILL ANALYSIS Ó AB 2194 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Rudy Salas, Chair AB 2194 (Salas) - As Amended April 5, 2016 SUBJECT: California Massage Therapy Council: extension of sunset date. SUMMARY: Extends the sunset date for the California Massage Therapy Counsel (CAMTC) by two years, and makes other technical and clarifying changes. EXISTING LAW: 1)Establishes Massage Therapy Act and the CAMTC which is responsible for the administration of the voluntary certification program for certified massage therapists. (Business and Professions Code (BPC) Sections 4600 et seq.) 2)Authorizes the CAMTC to take any reasonable actions necessary to carry out the responsibilities and duties under the Massage Therapy Act, including but not limited to, hiring staff, entering into contracts, and developing policies, procedures, rules, and bylaws. (BPC Section 4602(b)) AB 2194 Page 2 3)Defines "massage" as the scientific manipulation of the soft tissues. (BPC Section 4601(e)) 4)Define a "sole provider" as a massage business where the owner owns 100% of the business, is the only person who provides massage for compensation for that business pursuant to a valid and active certificate and has no other employees or independent contractors. (BPC Section 4601(i)) 5)Defines an "approved school" or "approved massage school" as a school that meets minimum standards for training and curriculum in massage and related subjects, that meets specified requirements and has not otherwise been unapproved by the CAMTC. (BPC Section 4601) 6)States that the meetings of the CAMTC are subject to the rules of the Bagley-Keene Open Meeting Act (Bagley-Keene), as specified, and authorizes the CAMTC to adopt additional policies and procedures that provide greater transparency to certificate holders and the public than required by the Bagley-Keene. (BPC Section 4602(j)) 7)Specifies that the CAMTC is to be governed by a board of directors comprised of 13 members, appointed by various stakeholders. (BPC Section 4602(g)) 8)Authorizes the CAMTC to discipline an owner or operator of a certified massage business or establishment who is certified by the CAMTC for the conduct of all individuals providing massage for compensation. (BPC Section 4607) 9)Prohibits a city, county, or city and county from enacting or AB 2194 Page 3 enforcing an ordinance that conflicts with the provisions of the Massage Therapy Act or Section 51034 of the Government Code (GC), but does not prohibit a city, county, or city and county from licensing, regulating, prohibiting, or permitting an individual who provides massage for compensation without a certificate issued by the CAMTC. (BPC Section 4612) 10)States that it is the intent of the Legislature that local governments impose and enforce only reasonable and necessary fees and regulations in keeping with the requirements of existing laws and being mindful of the need to protect legitimate business owners and massage professionals, particularly sole providers, during the transition period and after for the sake of developing a healthy and vibrant local economy. 11)Prohibits a city, county, or city and county from the following: (GC Section 51034(c)(1-8)) a) Prohibiting a person of one sex from engaging in the massage of a person of the other sex; b) Define a massage establishment as an adult entertainment business, or otherwise regulate a massage establishment as adult entertainment; c) Require a massage establishment to have windows or walls that do not extend from the floor to the ceiling, or have other internal physical structures including windows, that interfere with a client's reasonable expectation of privacy; d) Impose client draping requirements, as specified; AB 2194 Page 4 e) Prohibit a massage establishment from locking its external doors if the massage establishment is a business entity owned by one individual with one or no employees or independent contractors; f) Require a massage establishment to post a notice in an area viewed by clients that contains explicit language, as specified; g) Require a certified individual to take any test, medical examination, or background check, or comply with education requirements beyond what is required under the Massage Therapy Act; and, h) Impose a requirement that an individual holding a certificate in accordance with the Massage Therapy Act, obtain any other license, permit, certificate or other authorization to provide massage for compensation, as specified; however, a city is not prohibited from requiring an ordinance that a massage business or establishment obtain a license, permit, certificate, or other authorization in order to operate lawfully within the jurisdiction. THIS BILL: 1)Extends the provisions of the CAMTC by two-years until January 1, 2019. 2)Makes other technical and clarifying changes. FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel. AB 2194 Page 5 COMMENTS: Purpose. Unless legislation is carried this year to extend the sunset date for the CAMTC, it will be repealed on January 1, 2017. The legislative changes reflected in this bill are solutions to issues raised about the CAMTC in the Business and Profession's Committee staff Background Paper and during its subsequent sunset review hearing. CAMTC. The CAMTC is a nonprofit organization responsible for the voluntary certification and recertification of massage therapists and the recertification of massage practitioners. The certification law was initially enacted by SB 731(Oropeza), Chapter 384, Statutes of 2008. Because certification is voluntary, non-certified individuals may provide massage services in accordance with local rules and regulations. SB 731 authorized the creation of a governing certification entity, the Massage Therapy Organization which was renamed the CAMTC by AB 619 (Halderman) Chapter 162, Statutes of 2011. Unlike other practice acts in the BPC, the Massage Therapy Act is administered by a private nonprofit organization, not an agency under the Department of Consumer Affairs (DCA). The provision authorizing the establishment of the nonprofit oversight body for the purpose of administering the voluntary massage certification program is specified in BPC Section 4602. As a nonprofit public benefit organization, the CAMTC must abide by nonprofit corporations law, as specified in the Corporations Code. The CAMTC is authorized by statute to take any reasonable actions necessary to carry out its responsibilities and duties, as specified in BPC Section 4600 et seq. CAMTC-certified professionals are recognized throughout California to provide massage services but may still be subject to local ordinances and business regulations. GC Section 51034 provides modest restrictions on local ordinances regarding AB 2194 Page 6 certified massage professionals and massage businesses. For individuals who are not certified by the CAMTC, local jurisdictions may regulate those individuals according to their local ordinances. The law also authorizes the CAMTC to deny applications and discipline certificate holders by denying an applicant or revoking, suspending, or placing probationary conditions on an individual's certificate. The CAMTC's Board of Directors (board) is currently comprised of 13 members who are appointed by various entities including, but not limited to, massage trade associations, the League of California Cities, the DCA, the California Police Chiefs Association, the California State Association of Counties, the Chancellor of the California Community Colleges, the California Association of Private Postsecondary Schools, an anti-human trafficking organization, and the CAMTC itself. Joint Oversight Hearings and Sunset Review of DCA Licensing Boards. In March of 2016, the Senate Business, Professions and Economic Development Committee and the Assembly Business and Professions Committee (Committees) conducted multiple joint oversight hearings to review 11 regulatory boards within the DCA, and one regulatory entity outside of the DCA. The sunset bills are intended to implement legislative changes recommended in the respective background reports drafted by the Committees for the agencies reviewed this year. The Sunset Review Process. The sunset review process provides a formal mechanism for the DCA; the Legislature; the regulatory boards, bureaus and committees; interested parties; and stakeholders to make recommendations for improvements to the authority of consumer protection boards and bureaus. This is performed on a standard four-year cycle and was mandated by SB 2036 (McCorquodale), Chapter 908, Statutes of 1994. Each eligible agency is required to submit to the Committees a report covering the entire period since last reviewed that includes, AB 2194 Page 7 among other things, the purpose and necessity of the agency and any recommendations of the agency for changes or reorganization in order to better fulfill its purpose. During the sunset review hearings, the Committees take public testimony and evaluate the eligible agency prior to the date the agency is scheduled to be repealed. An eligible agency is allowed to sunset unless the Legislature enacts a law to extend, consolidate, or reorganize the eligible agency. In 2014, the CAMTC underwent its first sunset review which highlighted numerous issues about the operations of the organization and the impact of the massage therapy law - particularly its land use preemption provisions - on local governments. As a result, AB 1147 (Bonilla, Gomez, and Holden) Chapter 406, Statutes of 2014, made numerous changes to the Massage Therapy Act. The CAMTC was granted a two-year sunset extension in order to provide the Legislature with the opportunity to examine the performance of these new provisions related to the operations of the CAMTC and the local government response to the elimination of preemption, and make any needed follow-up changes. Although AB 1147 was signed into law in 2014, the provisions of that bill did not take effect until January 1, 2015. Some of the major changes required by AB 1147 included: 1) the establishment of a fee cap for certification and recertification fees; 2) sunset the CMP certification tier; 3) expansion of the definition of unprofessional conduct; 4) requirement of the CAMTC to develop policies, procedures, rules or bylaws for the approval of schools; 5) reconstitution of the CAMTC board; 4) return of local control; and established a number of new protections for certified professionals. The two-year extension provisions enacted after the CAMTC's last sunset review was intended to provide the Legislature with an opportunity to review the CAMTC's implementation of the numerous changes that resulted from AB 1147. Moreover, the two-year sunset extension ensured that the Legislature would be able to examine the performance of the new provisions of GC Section 51304 and the deletion of preemption which shifted the regulation of massage businesses back to the local regulatory AB 2194 Page 8 entities during the transition to make any potentially needed follow-up changes. Technical Amendments. The CAMTC identified several issues in need of technical clarification in its 2015 Sunset Review Report, including the three referenced below: BPC Section 4601(a) defines an "approved school" or an "approved massage school" as a school that is approved by the council that meets minimum standards for training and curriculum in massage and related subjects, and that is additionally approved by a specified list of accrediting bodies. As a result of AB 1147, BPC Section 4604(a)(2)(B) specifies that in order to obtain certification, all 500 hours of education must be from schools "approved by the council." As noted in the CAMTC's 2015 Sunset Review Report, because the CAMTC is not the only entity responsible for school-approval, it requests to replace "schools approved by the council" with an "approved school" for consistency with the definition of an "approved school" as defined in BPC Section 4601(a). Prior to AB 1147, there was a provision in the Massage Therapy Act which required the CAMTC to notify the employers of certificate holders that were suspended based on an arrest with charges filed for Penal Code 647(b) (prostitution), or an act punishable as a sexually-related crime, at the last address filed with the CAMTC. BPC Section 4610(f)(1)(C) changed this provision to limit the notification of employers to an email-only notification. As reported by the CAMTC, often times applicants fail to provide the CAMTC with an email address for the vast majority of businesses (even though one is requested), and an email message may easily be ignored. The CAMTC requests to revise current law to allow for the specified notification to employers to be completed via email or first-class mail. BPC Section 4610(e)(4) specifies that when the CAMTC is proposing to deny an application or impose discipline on a certificate holder, the disciplinary procedure is fair and reasonable if specified conditions are followed, including "an AB 2194 Page 9 opportunity for the applicant or certificate holder, to be heard, orally or in writing." However, BPC Section 4610(g)(2), a provision allowing for suspension based on evidence, does not specify that a certificate holder has the opportunity to be heard "orally or in writing." The CAMTC reported that although the CAMTC interprets this provision to provide for an oral hearing or consideration of a written statement, clarification of this provision might better inform certificate holders of their options in appealing a disciplinary matter. AMENDMENT(S): The following amendments will make technical and minor non-controversial changes to the Massage Therapy Act: In Business and Professions Code Section 4604(a)(2)(B) strikeschools approved by the counciland replace with approved school . In Business and Professions Code Section 4610(f)(1)(C), after "email" insert or first class mail, In Business and Professions Code Section 4610(g)(2), after "provides evidence" insert either orally or in writing, REGISTERED SUPPORT: American Massage Therapy Association, California Chapter REGISTERED OPPOSITION: AB 2194 Page 10 None on file. Analysis Prepared by:Elissa Silva / B. & P. / (916) 319-3301