BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 252
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          Date of Hearing:   April 22, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                 AB 252 (Carter) - As Introduced:  February 11, 2009 

          Policy Committee:                              Business &  
          Professions  Vote:                            11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill addresses enforcement of current law Corporate  
          Practice of Medicine (CPM) prohibitions with respect to medical  
          spas (medi-spas). Medi-spas are businesses at which patients  
          receive cosmetic medical treatments. Specifically, this bill: 

          1)Defines outpatient elective cosmetic medical procedures. 

          2)Authorizes the revocation of a medical license for violations  
            of current law prohibitions related to ownership and operation  
            of medi-spas. 

          3)Specifies that medi-spa businesses are guilty of perpetrating  
            health care fraud under the Penal Code if they violate CPM  
            statutes. 

           FISCAL EFFECT  

          Unknown, likely minor increases in Medical Board of California  
          (MBC) enforcement workload and fines related to violations of  
          Corporate Practice of Medicine prohibitions. 

           COMMENTS  

           1)Rationale  . This bill is sponsored by the American Society for  
            Dermatological Surgery. Generally declarative of current law  
            and practice, this bill clarifies enforcement mechanisms to  
            address the increase in cosmetic surgery provided at medi-spas  
            for procedures such as laser hair removal and skin  
            resurfacing. 

           2)The Corporate Practice of Medicine  refers to prohibitions in  







                                                                  AB 252
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            California law that most often refers to ban on the employment  
            of physicians by hospitals. California's prohibitions in this  
            area are some of the strongest in the country. Current law  
            makes exceptions for employment of doctors by teaching  
            hospitals, some community clinics, and some non-profit  
            organizations. Under current law the practice of having a  
            physician serve as a supervisor only on paper is illegal. This  
            bill provides greater enforcement specificity by linking  
            cosmetic surgery spas more closely with current prohibitions  
            related to medi-spa ownership and practice. 

          3)  Related Legislation  . AB 2398 (Nakanishi) in 2008 was very  
            similar to this bill. AB 2398 passed 75-0 in the Assembly and  
            failed passage on the Senate Floor. 

           
          Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081