BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 724 (Business Committee)
          As Amended September 10, 2001
          2/3 vote

           SENATE VOTE  :   39-0
            
           HEALTH              17-0        APPROPRIATIONS      21-0        
           
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          |Ayes:|Thomson, Aanestad, Bates, |Ayes:|Migden, Bates, Alquist,   |
          |     |Chan, Cohn, Chu, Frommer, |     |Aroner, Ashburn, Cedillo, |
          |     |Koretz, Negrete McLeod,   |     |Corbett, Correa, Daucher, |
          |     |Robert Pacheco, Richman,  |     |Goldberg, Maldonado,      |
          |     |Runner, Salinas,          |     |Robert Pacheco, Papan,    |
          |     |Steinberg, Wayne, Wesson, |     |Pavley, Runner, Simitian, |
          |     |Zettel                    |     |Thomson, Wesson, Wiggins, |
          |     |                          |     |Wright, Zettel            |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes various changes to the laws regulating various  
          licensed health care professionals.  Specifically,  this bill  :   

          1)Adds the Board of Chiropractic Examiners to a provision of law  
            permitting regulatory boards to recover costs associated with  
            the investigation and enforcement of disciplinary cases, to a  
            provision permitting regulatory boards to adopt a cite and  
            fine system, and to a provision of law prohibiting the  
            acceptance of rebates or other considerations for the referral  
            of patients.

          2)Makes the following changes pertaining to the Medical Board of  
            California (MBC):

             a)   Requires that certain reports relating to settlements or  
               judgements against the licensee of more than $30,000  
               include the name and license number of the physician;

             b)   Clarifies that an exemption from licensure as a  
               physician and surgeon during postgraduate training is  
               cancelled and participation in the program must cease if  
               MBC denies the individual's application for licensure;

             c)   Clarifies that MBC must approve an application for  








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               exemption from licensure for out-of-state physicians and  
               surgeons who are recruited to practice in state and county  
               institutions;

             d)   Repeals a requirement relative to providing  
               documentation of specified coursework prior to entering  
               medical school; and, 

             e)   Repeals an obsolete reference to verification of  
               citizenship in relation to applicants for a physician and  
               surgeon's certificate.

          3)Extends the sunset date of the provision of law establishing  
            various licensure-related fees for podiatrists, from January  
            1, 2002, to January 1, 2004.

          4)Makes the following changes pertaining to the Dental Board of  
            California (DBC):

             a)   Repeals an obsolete provision allowing certification in  
               oral conscious sedation for minor patients by documentation  
               of 10 cases of oral conscious sedation satisfactorily  
               performed;

             b)   Requires DBC to utilize in the administration of its  
               licensure examinations only examiners whom it has appointed  
               and who meet specified criteria, including practicing in  
               their licensure category for at least five years;

             c)   Provides for a disabled inactive status and reduced  
               license fee for any licensee who can demonstrate, to the  
               satisfaction of DBC, that they are unable to practice  
               dentistry due to a disability; and, 

             d)   Extends the sunset dates of provisions of law permitting  
               physicians to administer general anesthesia in dental  
               offices, from January 1, 2002, to January 1, 2007.

          5)Requires applicants for licensure as a psychologist that are  
            trained in an educational institution outside of the United  
            States or Canada to demonstrate that he or she possesses a  
            doctorate degree in psychology which is equivalent to such a  
            degree earned from an accredited university in the United  
            States or Canada.









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          6)Extends the sunset date of the Speech-Language Pathology and  
            Audiology (SLPA) Board from July 1, 2002, to July 1, 2004, and  
            makes clarifying changes to the continuing education  
            requirements of the SLPA Board.

          7)Requires persons whose license under the Board of Vocational  
            Nursing and Psychiatric Technicians has been revoked,  
            suspended, surrendered, or placed on probation, to wait for  
            specified time periods before petitioning for reinstatement.   
            The time periods vary from one to three years, depending on  
            the condition placed on the license.

          8)Makes the following changes pertaining to the  Board of  
            Pharmacy (BOP):

             a)   Revises the requirements governing persons obtaining a  
               certificate of exemption from the requirement to obtain a  
               pharmacist license in order to work for a manufacturer,  
               veterinary food-animal drug retailer, or wholesaler, by  
               requiring these exemptees to have one year of work  
               experience, complete a training program addressing  
               knowledge of specified subjects, and permitting these  
               exemptees to work for any licensed manufacturer, veterinary  
               food-animal retailer, or wholesaler.  Requires wholesalers  
               and veterinary food-animal drug retailers to designate an  
               exemptee-in-charge;

             b)   Revises a provision of law governing the issuance of a  
               retired license to a pharmacist by deleting a requirement  
               that a license be current and not be disciplined or subject  
               to discipline, and instead simply prohibiting the issuance  
               of a retired license to a pharmacist whose license has been  
               revoked;

             c)   Adds Medi-Cal fraud, and knowingly selling or furnishing  
               of drugs under a specified federal discount drug program to  
               ineligible recipients, to the list of violations that  
               enable BOP to take action against a licensee;

             d)   Deletes an obsolete reference to medical device  
               retailers;

             e)   Specifies that "manufacturer" does not mean a pharmacy  
               that, at the patient's request, repackages a drug  
               previously dispensed to the patient or the patient's agent  








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               pursuant to a prescription;

             f)   Modifies BOP's authority to issue a temporary permit to  
               a pharmacy by limiting the time of the temporary permit to  
               180 days, and specifying that the temporary permits may be  
               subject to conditions or restrictions as BOP deems  
               necessary;

             g)   Deletes obsolete language providing an exception to the  
               registration requirements for pharmacy technicians;

             h)   Clarifies who is required to obtain an out-of-state  
               dangerous drug or dangerous device distributor's license;

             i)   Eliminates an obsolete provision regarding the  
               processing fee for remodeling plans and inspecting a  
               remodeled pharmacy; and, 

             j)   Permits a pharmacy, at a patient's request, to repackage  
               a drug previously dispensed to the patient pursuant to a  
               prescription.  Requires pharmacies providing repackaging  
               services to have in place policies and procedures for  
               repackaging these drugs and to label the repackaged  
               prescription container with specified information.

          9)Revises the requirements in order for a person exempt from  
            licensure as a pharmacist (exemptee) to be in charge of a home  
            medical device retail facility, by eliminating the requirement  
            that these exemptees pass an examination administered by the  
            Department of Health Services, and instead requires the  
            exemptee to be a high school graduate, have a minimum of one  
            year of paid work experience related to the distribution of  
            prescription drugs or devices, and have completed a training  
            program that addresses specified knowledge areas.

          10)Makes the following changes pertaining to the Board of  
            Behavioral Sciences (BBS):

             a)   Revises the doctor's or master's degree requirements for  
               marriage and family therapist licensure applicants to  
               eliminate degrees in social work with an emphasis in  
               clinical social work from qualifying for licensure as a  
               marriage and family therapist;

             b)   Specifies that a degree program must be a single,  








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               integrated program that is designed to train marriage and  
               family therapists;

             c)   Requires registered marriage and family therapist  
               interns and associate clinical social workers, applying for  
               renewal, to notify BBS if they have been convicted of a  
               crime since their last renewal and to pay a renewal fee of  
               $75.  Prohibits renewal of registration if the application  
               is made more than six years after the registration was  
               initially issued;

             d)   Prohibits applicants from being eligible to participate  
               in an oral examination if his or her passing score on the  
               written examination occurred more than seven years before;

             e)   Clarifies the current prohibition against licensed  
               clinical social workers having sexual relations with  
               patients by specifying that such conduct is also prohibited  
               with former clients within two years following the  
               termination of therapy;

             f)   Repeals a section of law regarding the rights of a blind  
               person in relation to education and licensure as a licensed  
               clinical social worker;

             g)   Clarifies BBS's authority to deny a license to  
               applicants who are subject to an order of registration as a  
               sexual offender;

             h)   Requires applicants for licensure as a clinical social  
               worker to provide evidence of completion of 10 contact  
               hours of training or coursework in human sexuality, as  
               specified in regulations, and a minimum of seven contact  
               hours of training or coursework in child abuse assessment  
               and reporting, as specified in regulations;

             i)   Deletes the requirement that a supervisor of a  
               registered associate clinical worker submit evidence of  
               satisfactory completion of supervised experience gained by  
               an associate clinical social worker; and, 

             j)   Revises the criteria by which required experience must  
               be obtained for licensure as a clinical social worker by  
               specifying that a minimum of 750 hours of the required  
               experience must consist of face-to-face individual or group  








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               psychotherapy provided to clients in the context of  
               clinical social work services.

          11)Specifies that the use of the words "certify" or  
            "certification" by a licensed architect in the practice of  
            architecture constitutes an expression of professional  
            opinion, and does not constitute a warranty or guarantee.

          12)Makes the following changes to provisions of law regulated by  
            the Contractors State Licensing Board (CSLB):

             a)   Authorizes CSLB members to meet once every fiscal  
               quarter for the purpose of conducting specified official  
               business;

             b)   Supplements the meaning of " contractor" to include  
               persons who perform installation, repairs, maintenance, or  
               calibration of monitoring equipment for underground storage  
               tanks;

             c)   Authorizes the Registrar (executive officer) at CSLB to  
               issue citations to unlicensed individuals, once probable  
               cause is determined that an individual violated existing  
               law;

             d)   Requires revenues that are collected from administrative  
               fines to be placed in a separate account within the  
               Contractors State Licensing Fund and mandates that the  
               revenue only be used upon an appropriation by the  
               Legislature for purposes of administering the Contractor's  
               State License Law;

             e)   Authorizes the Registrar at CSLB to delegate the  
               collection of civil penalties to legally authorized  
               collection agencies;

             f)   Extends the statue of limitations that allows a legal  
               action to be brought against a contractor's cash deposit or  
               bond to three years (instead of two years);

             g)   Prohibits, if CSLB is notified of a complaint relative  
               to a claim against a cash deposit or bond, the initial  
               claim from being released until the complaint is  
               adjudicated;









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             h)   Permits a license application to be extended up to 90  
               days, or one examination to be rescheduled, without a fee,  
               if the applicant can show documented evidence that the  
               failure to complete the application process or appear for  
               an examination was due to a medical emergency or  
               circumstances beyond his or her control; and, 

             i)   Expands the grounds for disciplinary action during the  
               license application and renewal process to include  
               "omission" of material facts.

          1)Makes the following changes to provisions of law pertaining to  
            fictitious business names and procedures that allow the  
            issuance of temporary identification (ID) cards by county  
            clerks:

             a)   Permits the use of  "limited" or "company" or their  
               abbreviations as long as the use does not imply a limited  
               liability company;

             b)   Requires applications requesting a fictitious business  
               name to be signed under a personal declaration that all the  
               information appearing on the application is true and  
               correct;

             c)   Specifies that the submission for renewal of a  
               fictitious business name will not be republished if the  
               renewal statement was submitted within 40 days after the  
               expiration; and, 

             d)   Requires county clerks to issue temporary ID cards,  
               valid only for 120 days, instead of permanent ID cards, to  
               applicants seeking registration as process servers who are  
               required to submit fingerprints for background checks that  
               are conducted by the Federal Bureau of Investigations (FBI)  
               and the Department of Justice (DOJ), and requires county  
               clerks to issue permanent ID cards once fingerprints are  
               cleared by the FBI and DOJ.

          2)Requires the California Tax Education Council to establish a  
            process by which two individuals who are tax preparers are  
            appointed to the council with full voting privileges to serve  
            terms as determined by the council.

          3)Deletes references to the Bureau for Private Postsecondary and  








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            Vocational Education in provisions of law relating to  
            standards for tax preparer education providers.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis:

          1)Insignificant to moderate fiscal impact on the affected  
            regulatory boards.

          2)The dentistry provisions would have moderate impact, less than  
            $100,000 annually, on DBC.  The provisions relating to the use  
            of expert examiners are estimated to cost $40,200 in fiscal  
            year (FY) 2001-02 (half year) and $69,400 in FY 2002-03 and  
            annually thereafter (State Dental Auxiliary Fund).  The 50%  
            reduction in biennial renewal fees for disabled licensees  
            would result in $29,500 revenue loss annually (State Dentistry  
            Fund).

          3)The requirement for county clerks to issue temporary ID cards  
            is likely not state-reimbursable because there would be  
            offsetting savings in clerks' time to retrieve ID cards of  
            persons not passing the criminal background check.
           
           COMMENTS  :   According to the author, this is one of the Senate  
          Business and Professions Committee's omnibus bills that makes  
          changes to various provisions of licensing statutes for health  
          professionals.  The author states that at any time, if  
          provisions in this bill become controversial, they will be  
          removed.  According to the author, this bill is intended to  
          address "housekeeping" items for various regulatory boards, by:   
          1) updating statutes to reflect various changes to programs over  
          the past year; 2) attending to code maintenance by doing  
          technical clean-up and deleting obsolete references; or, 3)  
          improving the administration of the various boards by clearing  
          up ambiguity or enhancing enforcement authority.


           Analysis Prepared by  :  Vincent D. Marchand / HEALTH / (916)  
          319-2097 




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