BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       SJR 15                                       
          S
          AUTHOR:        Alquist                                      
          J
          AMENDED:       As introduced                                
          R              
          HEARING DATE:    July 15, 2009                             
          CONSULTANT:                                                 
          1              
          Hansel/sh                                                   
          5              
                                        
                                     SUBJECT
                                         
                           Public health laboratories

                                     SUMMARY  

          Encourages the Centers for Medicare and Medicaid Services  
          (CMS) to amend regulations, and the Congress and the  
          President to enact legislation, that would allow qualified  
          non-doctoral, non-board certified persons to serve as  
          laboratory directors of local public health laboratories.


                             CHANGES TO EXISTING LAW  

          Existing federal law:
          Under the Clinical Laboratory Improvement Amendments of  
          1988 (CLIA), establishes various conditions that  
          laboratories must meet in order to be certified to perform  
          testing on human specimens.  Laboratory standards  
          established under CLIA include standards for proficiency  
          testing, facility administration, personnel qualifications,  
          and quality control.  


          Existing federal regulations:
          Establish qualifications for directors of labs performing  
          high complexity tests, which require that the director:

                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL  SJR 15 (Alquist)Page 2


          

           Posses a current license as a laboratory director issued  
            by the state in which the laboratory is located; and,

           Be one of the following:

            --A doctor of medicine or doctor of osteopathy licensed  
            to practice medicine or osteopathy in the state in which  
            the laboratory is located, and be certified in anatomic  
            or clinical pathology, or both, as specified;

            --A doctor of medicine, doctor of osteopathy, or doctor  
            of podiatric medicine with specified levels of lab  
            training and experience directing or supervising high  
            complexity lab tests;

            --Hold a doctoral degree in chemical, physical,  
            biological, or clinical laboratory science, as specified,  
            and be certified, or have served or be serving as the  
            director of a lab that performs high complexity tests and  
            have specified levels of lab training and of directing or  
            supervising high complexity testing, as specified; or,

            --Be serving on or before February, 1992 as a lab  
            director and meet qualifications for lab directors that  
            existed in 1990, or be qualified on or before February  
            28, 1992 under state law to direct a lab.

          Existing state law and regulations

          Define a clinical laboratory as any establishment or  
          institution operated for the performance of clinical  
          laboratory tests or examinations, or the practical  
          application of clinical laboratory sciences.  



          Require a clinical laboratory that performs tests that are  
          of moderate or high complexity to be licensed by DPH.  


          Require a public health laboratory director to be a  
          certified Public Health Microbiologist and have four years  
          of experience in a public health laboratory.  A certified  
          Public Health Microbiologist must have a bachelor's or a  
          doctoral degree and a specified level of training in a  
          public health laboratory, and pass an exam, as specified.




          STAFF ANALYSIS OF SENATE BILL  SJR 15 (Alquist)Page 3


          


          This resolution:
          Encourages CMS to amend the CLIA regulations, and the  
          Congress and the President to enact legislation to allow  
          qualified non-doctoral, non-board certified persons to  
          serve as laboratory directors of local public health  
          laboratories.

          Encourages the federal Secretary of Health and Human  
          Services, the Department of Homeland Security, and other  
          relevant federal regulatory authorities to encourage CMS to  
          amend the CLIA regulations, and the Congress and President  
          to enact legislation, to accomplish these policy goals.

          Cites a number of issues and problems with current CLIA  
          regulations related to laboratory director qualifications,  
          and the role and importance of public health labs in  
          California.  

          Refers to pending legislation that would provide states  
          with authority to permit local public health labs to  
          receive flexibility with respect to CLIA laboratory  
          director qualifications.


                                  FISCAL IMPACT  

          This resolution is keyed nonfiscal.

                            BACKGROUND AND DISCUSSION  

          According to the California Association of Public Health  
          Laboratory Directors (CAPHLD), a co-sponsor of SJR 15,  
          public health labs throughout the country are facing  
          onerous federal regulations requiring labs that conduct  
          high complexity tests to have board certified,  
          doctoral-level directors.  These regulations ignore the  
          robust system of lab directorship qualifications that  
          exists in California that has protected Californians for  
          nearly sixty years.

          According to CAPHLD, unrealistic federal standards have  
          artificially created a shortage of qualified local public  
          health lab directors.  A recent survey of the 38 local  
          public health labs suggests that there are many mid-career  
          professionals who are experienced and qualified to be lab  




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          directors, although they don't possess doctoral degrees.   
          CAPHLD states that California has a strong system of  
          bachelor degreed, locally trained, and state certified  
          Public Health Microbiologists who can take over as lab  
          directors, if the CLIA regulations are modified.
          .
          Clinical laboratory oversight
          California clinical laboratories, including local public  
          health laboratories, are subject to both federal and state  
          oversight. Federal CLIA requirements establish standards  
          for laboratories to ensure the accuracy, reliability, and  
          timeliness of patient test results, and specify numerous  
          quality standards, including those for facility  
          administration, personnel qualifications, quality control,  
          and proficiency testing, a process used by laboratories to  
          verify the accuracy and reliability of their test results.   
          CLIA standards apply to laboratory testing in all settings,  
          including commercial, hospital, or physician office  
          laboratories.

          CLIA standards are based on the complexity of the testing  
          (waived, moderate, or high complexity).  To become  
          certified under CLIA, a clinical laboratory must pay  
          applicable fees, meet all applicable standards, and be  
          surveyed biennially.  In California, DPH conducts the  
          biennial CLIA survey on behalf of the federal government.   
          CLIA certification fees are based on the type of  
          certification sought by a laboratory, and the annual volume  
          and types of testing performed.  

          In addition to CLIA standards, clinical laboratories in  
          California, including local public health laboratories,  
          must meet state licensure requirements in order to operate.  
           Similar to CLIA, state licensing law requires biennial  
          surveys, proficiency testing, and specified personnel  
          requirements.  

          CLIA allows CMS to deem a laboratory as having met federal  
          requirements through accreditation by a recognized  
          accrediting organization, as long as the standards of the  
          organization meet or exceed those in federal regulations.   
          California law also requires DPH to deem accredited  
          clinical laboratories as having met state licensure or  
          registration requirements, if the organization allows DPH  
          to inspect its accredited labs at random, and the  
          organization has been approved by CMS.  There are currently  




          STAFF ANALYSIS OF SENATE BILL  SJR 15 (Alquist)Page 5


          

          six accrediting organizations approved by CMS, including  
          the College of American Pathologists and the Joint  
          Commission.   


          Public health laboratories
          There are currently 38 public health laboratories located  
          in California that are administered locally by city or  
          county public health departments.  Local public health  
          laboratories provide services relating to the examination  
          of specimens from suspected cases of infectious and  
          environmental diseases, including specimens from humans,  
          milk, water, food, vectors, and the environment.  While  
          public health laboratories may conduct patient diagnostic  
          testing, they differ from clinical laboratories in that the  
          scope of their work, including their patient diagnostic  
          testing, revolves around the prevention and control of  
          communicable disease, community surveillance of infectious  
          or communicable disease, and promoting and maintaining  
          public health.  All of the laboratories meet CLIA standards  
          for conducting high complexity lab tests.


          Local public health laboratories are approved by DPH,  
          meaning that they are certified to meet state and federal  
          law and regulations.  DPH also certifies public health  
          microbiologists and public health laboratory directors to  
          ensure that they meet all educational and training  
          requirements required by state regulations.  Existing state  
          regulations set forth specific requirements and standards  
          that public health laboratories must meet, including  
          requirements pertaining to personnel, reporting, and safety  
          procedures and precautions.  Existing regulations require a  
          public health laboratory microbiologist, and a public  
          health laboratory director to meet specified education and  
          training requirements, and to be certified by DPH.  

          Federal regulations pertaining to lab directors
          In response to concerns about the quality of lab testing  
          related to cytology laboratories (those which examine  
          tissue samples), federal regulations were adopted in 1992  
          that increased requirements for qualifications of lab  
          directors, including a requirement that lab directors have  
          doctoral degrees.  The rules included a grandfather  
          provision allowing individuals previously qualified by  
          state statute as of 1992 to continue to be able to direct  




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          labs, including public health labs.  At the time these  
          rules were adopted, it was thought that the grandfathering  
          provision would allow labs to continue until more doctoral  
          level directors could be trained and placed.

          In practice, a significant shortage of doctoral level lab  
          directors has developed.  The current pool of grandfathered  
          directors is aging, with many now retired or near  
          retirement.  Since the adoption of these rules, CMS has  
          recently added board certification, in addition to the  
          doctoral requirement, which has further exacerbated the  
          shortage of qualified directors.  

          In 2005, an appeal from Richard Jackson, MD, MPH, the  
          state's public health officer, to HHS Secretary Leavitt to  
          allow individuals who are qualified under state law to be  
          deemed to be qualified under the federal regulations, was  
          rejected.  In response, Congresswoman Doris Matsui has  
          drafted federal legislation to prohibit the Secretary of  
          Health and Human Services from requiring local public  
          health laboratory directors to posses a doctoral degree in  
          addition to meeting the applicable qualifications under  
          state law.
          
          Related bills
          SB 744 (Strickland) revises licensing and certification  
          requirements for clinical laboratories by recognizing  
          accreditation of clinical laboratories by private,  
          nonprofit organizations as specified.  Revises license fees  
          according to the number of tests
          performed, and makes other administrative changes.   
          Currently in the Assembly Health Committee.

          Prior legislation
          SB 113 (Maddy), Chapter 510, Statutes of 1995, conformed  
          state laboratory licensing law to federal CLIA law as a  
          precursor for the state to seek CLIA exemption. 
          
          Arguments in support
          According to CAPHLD, a co-sponsor of SJR 15, current  
          federal requirements for lab directors is threatening the  
          state's capacity to respond to public health problems and  
          threats.  CAPHLD states that the federal requirements are  
          resulting in the closure of many local labs, and cites the  
          example of Mendocino County, which in 2008 closed its  
          public health lab after failing to attract a federally  




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          qualified director for over two years.

          CAPHLD notes that California's public lab system has been  
          in operation since 1950.  Since then, the state's  
          population has quadrupled and public health departments and  
          labs are dealing with the reemergence of diseases such as  
          tuberculosis, rabies, syphilis, plague, and anthrax, while  
          also facing several new diseases, such as H1N1 influenza,  
          SARS, HIV, West Nile virus, E. coli, and Lyme disease.   
          CAPHLD argues that given these threats, it is imperative  
          that further closures of public health labs be averted, by  
          modifying current unrealistic and unnecessary federal  
          requirements.


                                     COMMENTS
           

          1.  Suggested technical amendmenst:

               a.  On page 1, lines 1 - 6, amend as follows:

               WHEREAS, The federal  Center  Centers for Medicare and  
          Medicaid
               Services (CMS) has adopted the Clinical Laboratory  
          Improvement
                Amendment  Amendments (CLIA) regulations related to  
          laboratory director
               qualifications that are unreasonable for the  
          California local public health
               laboratory system and have led to the closure of  
          needed local public health
               laboratories in California; and
          
            b.  On page 2, lines 29 - 40, amend as follows:

            Resolved by the Senate and the Assembly of the State of  
            California, 
            jointly, That the Legislature of the State of California  
            encourages
            CMS to amend the CLIA regulations, and the Congress and
            the President of the United States to enact legislation  
            that would,
            allow qualified nondoctoral, nonboard certified persons  
            to serve as
            laboratory directors of local public health laboratories,  




          STAFF ANALYSIS OF SENATE BILL  SJR 15 (Alquist)Page 8


          

            if they are
            qualified to direct such laboratories under the law of  
            the state
            in which the laboratory is located, with the express  
            goals of ensuring
            adequate local public health laboratory support for  
            response to communicable
            disease events, ensuring an adequate supply of local  
            public health
            laboratory directors, and ensuring protection for the  
            balance of the nation
            by increasing national security through adequate disease  
            identification;
            and be it further
            
                                        
                                    POSITIONS  


          Support:  California Association of Public Health  
          Laboratory Directors (co-sponsor)
                           Health Officers Association of California  
          (HOAC) (co-sponsor)

          Oppose:   None received


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