BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 252

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          GOVERNOR'S VETO
          AB 252 (Carter)
          As Introduced  February 11, 2009
          2/3 vote


           BUSINESS & PROFESSIONS    11-0  APPROPRIATIONS    16-0          

           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Emmerson,        |Ayes:|De Leon, Nielsen,         |
          |     |Conway, Eng, Hernandez,   |     |Ammiano,                  |
          |     |Nava, Niello,             |     |Charles Calderon, Davis,  |
          |     |John A. Perez, Price,     |     |Duvall, Fuentes, Hall,    |
          |     |Ruskin, Smyth             |     |Harkey, Miller,           |
          |     |                          |     |John A. Perez, Price,     |
          |     |                          |     |Skinner, Solorio, Audra   |
          |     |                          |     |Strickland, Torlakson     |
           ----------------------------------------------------------------- 

           ASSEMBLY:     79-0        (May 4, 2009)            SENATE:        
             35-1               (July 16, 2009)     
           
           SUMMARY  :  Authorizes the revocation of a physician and surgeon's  
          license who provides elective cosmetic medical procedures or  
          treatments (cosmetic surgery) in violation of the prohibition  
          against the corporate practice of medicine (CPM).  Specifically,  
           this bill  :  

          1)Authorizes the revocation of a physician and surgeon's license  
            if the individual practices medicine with a business  
            organization that offers to provide cosmetic surgery in  
            violation of CPM.  

          2)States that a physician and surgeon who does not own that  
            business organization but contracts to serve as the medical  
            director of a business organization that provides cosmetic  
            surgery is deemed to have knowledge that the business  
            organization is in violation of CPM.

          3)States that a business organization that provides cosmetic  










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            surgery in violation of CPM and employs a physician and  
            surgeon to facilitate its business is guilty of a public  
            offense. 

          4)Defines "outpatient elective cosmetic medical procedure or  
            treatments" to mean a medical procedure or treatment that is  
            performed to alter or reshape normal structures of the body  
            solely in order to improve its appearance.

          5)Makes legislative findings and declarations that the  
            provisions of this bill authorizing the revocation of a  
            physician and surgeon's license for violations of CPM is  
            declaratory of existing law.

           EXISTING LAW  :

          1)Requires any person who practices medicine to hold a valid  
            certificate to practice medicine.  Establishes the Medical  
            Board of California (MBC) to license and certify physicians  
            and surgeons.

          2)Prohibits corporations and other artificial legal entities  
            from having any medical professional rights, privileges, or  
            powers (known as the "prohibition against CPM ").  However,  
            existing law further provides that the MBC may, pursuant to  
            regulations it has adopted, grant approval for the employment  
            of physicians and surgeons on a salary basis by a licensed  
            charitable institution, foundation, or clinic if no charge for  
            professional services rendered to patients is made by that  
            institution, foundation, or clinic.  Provides other certain  
            exceptions to the prohibition against CPM.

          3)Makes it unprofessional conduct for any licensee to violate,  
            or attempt to violate, assist in, or abet the violation of, or  
            to conspire to violate the prohibition against CPM.  Requires  
            the MBC to take action against any licensee who is charged  
            with unprofessional conduct.  Specifies the types of actions  
            that constitute unprofessional conduct.

          4)Requires the MBC, in conjunction with the Board of Registered  
            Nursing, and in consultation with the Physician Assistant  










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            Committee, and professionals in the field, to review issues  
            and problems relating to the use of laser or intense light  
            pulse devices for elective cosmetic procedures by physicians  
            and surgeons, nurses, and physician assistants.

           FISCAL EFFECT  :   According to Appropriations Committee, unknown,  
          likely minor increases in Medical Board of California (MBC)  
          enforcement workload and fines related to violations of  
          Corporate Practice of Medicine prohibitions.

           COMMENTS :  According to the author's office, "The purpose of the  
          bill is to train needed enforcement attention, with meaningful  
          penalties on the all too common incursion into the practice of  
          medicine by business models that attempt to create the  
          appearance of compliance with existing California law that  
          allows for delegation of the practice of medicine by physicians  
          and surgeons to mid-level practitioners.  However, those  
          arrangements are unlawful from their inception, yet have not  
          been prioritized for prosecution owing, largely, to the rather  
          paltry potential penalties associated with the 'corporate  
          practice of medicine.'

          "The scope of the problems addressed by the bill is summarized  
          as follows:

          "Alternative patient treatment sites, often called "medi-spas,"  
          have become a major, and often misleading, presence in the  
          medical cosmetic skin care field - a phenomenon witnesses before  
          the Boards [MBC] regularly referred to as an 'industry' serving  
          'clients.'  They may be freestanding locations, or are routinely  
          located in potential high-volume locales such as shopping malls  
          or centers.

          "Medical spas are marketing vehicles for medical procedures.  If  
          they are offering medical procedures, they must be owned by  
          physicians.  The use of the term 'medical spa' is for  
          advertising purposes to make the procedures seem more appealing.  
           In reality, however, it is the practice of medicine."

           GOVERNOR'S VETO MESSAGE  :











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          "This bill is duplicative of existing law and unnecessary.  The  
          Medical Board of California already has significant legal  
          authority to take action against physicians that violate the  
          Medical Practice Act."
           
          Analysis Prepared by  :    Ross Warren / B. & P. / (916) 319-3301 

                                                                FN: 0002151