BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 163|
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                                 THIRD READING


          Bill No:  AB 163
          Author:   Eng (D)
          Amended:  9/7/07 in Assembly
          Vote:     21

           
          PRIOR SENATE VOTES NOT RELEVANT 

           ASSEMBLY FLOOR  :  Not available 


           SUBJECT  :    Chiropractic Initiative Act

           SOURCE  :     Author


           DIGEST  :    This bill places a legislative proposition on  
          the statewide ballot for approval by the voters to amend  
          the Chiropractic Initiative Act of California to bring the  
          State Board of Chiropractic Examiners under the Department  
          of Consumer Affairs.

           ANALYSIS  :    

          Existing law:

          1.Consists of the Chiropractic Initiative Act, which  
            prescribes the terms upon which licenses may be issued to  
            practitioners of chiropractic, creates the State Board of  
            Chiropractic Examiners (Board), declares the Board's  
            powers and duties, and prescribes penalties for violation  
            of the Act.  The Act can only be amended by initiative.

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          2.States that the Board shall consist of seven members  
            appointed by the Governor, with five licensee members and  
            two public members, and specifies the requirements for  
            board members

          3.Requires the Board to employ an executive officer and fix  
            his salary with the approval of the Director of Finance.

          4.Authorizes the Board to employ investigators, clerical  
            assistants, commissioners on examination and other  
            employees as it may deem necessary to carry into effect  
            the provisions of the Act, and prescribe the duties of  
            such employees.

          This bill places a legislative proposition on the statewide  
          ballot for approval by the voters to amend the Chiropractic  
          Initiative Act of California (Act) to bring the State Board  
          of Chiropractic Examiners (BCE) under the Department of  
          Consumer Affairs (DCA). 

          This bill: 

           1.   Provides that the provisions of this bill become  
               effective only if they are approved by a vote of the  
               electorate on the June 3, 2008 statewide ballot. 

           2.   Requires that protection of the public shall be the  
               highest priority of BCE in exercising its licensing,  
               regulatory and disciplinary functions.  Whenever the  
               protection of the public is inconsistent with other  
               interests sought to be promoted, the protection of the  
               public shall be paramount. 

           3.   Provides that BCE shall become part of DCA similar to  
               the 39 other boards and bureaus currently specified as  
               within DCA. 

           4.   Provides that the Director of DCA shall not have the  
               authority to disapprove any rule or regulation  
               pertaining to the legal scope of professional practice  
               or the current minimum educational requirements for  
               doctors of chiropractic.

           5.   States that BCE rulemaking shall be in compliance  







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               with current law applicable to other boards and that  
               such rulemaking is subject to review by the Office of  
               Administrative Law.

           6.   Provides that BCE shall consist of seven members:  
               five appointed by the Governor, one appointed by the  
               Speaker of the Assembly, and one appointed by the  
               Senate Rules Committee.  The gubernatorial appointees  
               shall consist of four "professional" members  
               (chiropractors) and one "public" member  
               (non-chiropractors).  Both legislative appointees  
               shall be public members. 

           7.   Requires that the five BCE members appointed by the  
               Governor shall be subject to Senate confirmation. 

           8.   Provides that the Legislature may "reconstitute" BCE  
               (through legislation signed by the Governor).   
               (Reconstitution results in the removal of BCE members  
               that are then followed by new replacement  
               appointments.) 

           9.   Provides that the DCA Director shall have the  
               authority to approve BCE's appointment of an Executive  
               Director who is exempt from civil service  
               requirements.

           10.  Requires all BCE meetings to be conducted in  
               accordance with the provisions of the Bagley-Keene  
               Open Meeting Act.

           11.  Provides that employees of BCE (excluding the  
               Executive Director) shall be subject to the state's  
               civil service requirements. 

           12.  Clarifies that the employment of legal counsel by BCE  
               is subject to the requirements in current law  
               applicable to other boards within DCA. 

           13.  Provides that BCE shall comply with specified  
               Business and Professions and Government code section  
               that have general application to other health care  
               related boards within DCA. 








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           14.  Requires that appropriations for BCE shall be made by  
               the Legislature in the annual Budget Act. 

           15.  Requires, in addition to the appropriation made in  
               the Budget Act of 2007, an appropriation over $1.5  
               million from the revenue in the State Board of  
               Chiropractic Examiners' Fund for the support of the  
               Board of Chiropractic Examiners.

           16.  Includes intent language to appropriate revenues from  
               the State Board of Chiropractic Examiners' Fund in the  
               amount of $300,000 to reimburse the Secretary of State  
               for the printing costs incurred to place a proposition  
               on the June 3, 2008 statewide ballot. 

           17.  Includes double-jointing language with SB 534  
               (Perata) to avoid conflict with an affected code  
               section contained in both bills.

           Background
           
          Chiropractors provide non-drug, non-surgical health care  
          through treatment of the musculoskeletal and nervous  
          systems and manipulation of the spinal column and bony  
          tissues.  In FY 2004/05 the Board had a license base of  
          15,412 -- 14,206 active and 1,206 inactive licensees.  Its  
          budget was approximately $2.25 million.

          The Board was created on December 21, 1922, as the result  
          of an initiative measure approved by California voters on  
          November 7, 1922.  The Board is a seven-member  
          policy-making body.  Five professional members and two  
          public members appointed by the Governor to serve four-year  
          terms. Because the Board was created by an initiative that  
          does not permit amendment by the Legislature, the  
          Legislature is without the power to sunset the Board, or  
          repeal the state's regulation of the chiropractic  
          profession.  The Legislature could, however, place proposed  
          reform statutes before the electorate by a two-thirds vote  
          and seek the electorate's approval.

          The Board's mission is to protect consumers from fraudulent  
          or incompetent chiropractic practice, examine applicants  
          for licensure in order to evaluate entry level competence,  







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          and enforce the Act, statutes, and regulations relating to  
          the practice of chiropractic.  The Board's regulatory  
          program also approves chiropractic schools and colleges  
          whose graduates may apply for licensure in California and  
          approves continuing education.  As a law enforcement  
          agency, the Board enforces laws and regulations pertaining  
          to the practice of chiropractic in California.

           Joint Hearing of the Chiropractic Board by this Committee  
          and the Assembly Business and Professions Committee  .  On  
          March 28, 2007 a joint hearing was held in response to  
          several actions that were taken by the Board over the past  
          few months.  In particular, it was alleged that some of the  
          actions taken by the Board at its March 1, 2007 meeting  
          were inappropriate and illegal.  Since that hearing, the  
          Board chairman has taken the blame for those actions and  
          two of them have been rescinded.  In addition, the Board is  
          scheduled to reconsider two more of its actions from the  
          March 1, 2007 meeting at the next meeting scheduled for  
          April 19, 2007.

          During the Joint Hearing, the evidence gathered indicated  
          that the Board and its members had potentially violated the  
          law or administrative procedures in several areas,  
          including: (1) communications between Board members illegal  
          under the Bagley Keene Open Meeting Act, (2) not following  
          or ignoring proper civil service employee procedures and  
          requirements in an attempt to make personnel decision about  
          non-exempt civil service employees, (3) attempts by certain  
          Board members to interfere with ongoing enforcement actions  
          of the Board enforcement staff and the Attorney General's  
          Office, (4) making an improper attempt to influence or  
          impede ongoing criminal prosecution against chiropractors  
          involved in insurance fraud and who provided manipulation  
          under anesthesia, (5) proposing to dismiss the Attorney  
          General as counsel for the Board, ejecting the Deputy  
          Attorney General from the March 1st Board Meeting; and  
          removal of a Deputy Attorney General as Board counsel, (6)  
          failure to follow required procedures for approving a  
          chiropractic college and allowing its graduates to practice  
          in California, and (7) firing of the Executive Officer  
          without following appropriate procedures and self  
          appointment of the Board Chair as Executive Officer.








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          In addition to the above, some serious concerns have  
          recently been raised regarding the mission of the Board and  
          some of its newest members.  In fact, some of those  
          involved, including the appointing authority, have made  
          statements that may lead one to believe that the primary  
          purpose of the Board is to represent the profession's  
          viewpoints.  The official mission of the Board is to: ( 1)  
          protect Californians from fraudulent or incompetent  
          practice of chiropractic, (2) examine applicants for  
          licensure in order to evaluate entry level competence,  
          and,( 3) enforce the Chiropractic Initiative Act and  
          regulations relating to the practice of chiropractic.  It  
          has appeared on more than one occasion that the Board  
          members may have lost sight of this objective.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  9/10/07)

          Center for Public Interest Law
          California Primary Care Association


           ARGUMENTS IN SUPPORT  :    The Center for Public Interest Law  
          (CPIL) strongly supports this measure because it would  
          subject the Board to the same oversight and supervision by  
          the Legislature and the Administration that applies to  
          other state agencies that regulate health care  
          professionals.  CPIL believes that an attempt to bring the  
          Board in line with the mainstream of California government  
          is long overdue.  In addition, the urgency of SB 801 is  
          illustrated by the several recent controversies relating to  
          the actions of the Board, which were well-reported in the  
          media and occurred because the Board is not subject to any  
          meaningful oversight, training, and/or accountability by  
          either the Legislature or the Administration.

          As noted by CPIL, the Board lacks accountability to the  
          Legislature because it can't amend or repeal the Act.  The  
          Board lacks accountability to the Administration because it  
          doesn't reside within any larger agency or department that  
          reviews its regulations, monitors its budget, or provides  
          it with services.  The statutes of all other agencies that  







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          regulate health care professionals are codified in the  
          Business and Professions Code, and are able to be amended  
          by the Legislature.  All of these agencies have been placed  
          under the jurisdiction of the DCA.  This Board should be  
          treated the same as all of these other agencies that  
          regulate health care professionals.

          Finally, according to CPIL, SB 801 is necessary to affirm  
          the validity of recent legislation that has been applied to  
          the Board and to chiropractors, and the practice of  
          chiropractic merits the same level of executive and  
          legislative branch oversight as the practices of the other  
          health professions.



          JJA:nl  9/10/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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