BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   June 30, 2009

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                 Mary Hayashi, Chair
                 SB 674 (Negrete McLeod) - As Amended:  June 1, 2009

           SENATE VOTE  :   31-2
           
          SUBJECT  :   Healing arts.

          SUMMARY  :   Requires specified healing arts licensees to include  
          professional designations behind their names in advertisements;  
          requires the Medical Board of California (MBC) to adopt  
          regulations regarding the appropriate level of physician  
          availability needed within clinics or other settings using laser  
          or intense pulse light devices for elective cosmetic procedures;  
          permits MBC to adopt standards that it deems necessary for  
          outpatient settings that offer in vitro fertilization; and  
          revises accreditation requirements and procedures.   
          Specifically,  this bill  :   

          1)Requires the following licensees to include the appropriate  
            professional initials immediately after the licensee's name in  
            advertisements:

             a)   A chiropractor shall include the designation "DC;"

             b)   A dentist shall include the designation "DDS" or "DMD;"

             c)   A physician and surgeon shall include the designation  
               "MD;"

             d)   An osteopathic physician and surgeon shall include the  
               designation "DO;"

             e)   A podiatrist shall include the designation "DPM;"

             f)   A registered nurse shall include the designation "RN;"

             g)   A licensed vocational nurse shall include the  
               designation "LVN;"

             h)    A psychologist shall include the designation "Ph.D;"

             i)   An optometrist shall include the designation "OD;"








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             j)   A physician assistant shall include the designation  
               "PA;" and,

             aa)  A naturopathic doctor shall include the designation  
               "ND;" 

          2)Defines "advertisement" to include communication by mail,  
            television, radio, motion picture, newspaper, book, directory,  
            Internet, or other electronic communication.

          3)Exempts the following from the definition of "advertisement:" 

             a)   A medical directory released by a health care service  
               plan or a health insurer;

             b)   A billing statement from a health care practitioner to a  
               patient;

             c)   An appointment reminder from a health care practitioner  
               to a patient; and,

             d)   Any advertisement or business card disseminated by a  
               health care service plan indicating its contracting  
               providers.

          4)States that the new advertising requirements shall apply on  
            January 1, 2011 to any advertisement that is published  
            annually and prior to July 1, 2010.

          5)Requires the MBC to adopt regulations regarding the  
            appropriate level of physician availability needed within  
            clinics or other settings using laser or intense pulse light  
            devices for elective cosmetic procedures. 

          6)Prohibits the regulations promulgated by MBC for laser or  
            intense pulse light devices for elective cosmetic procedures  
            from applying to laser or intense pulse light devices approved  
            by the federal Food and Drug Administration for  
            over-the-counter use by a health care practitioner or by an  
            unlicensed person on himself or herself.

          7)Requires the MBC to post on its Internet Web site an  
            easy-to-understand factsheet to educate the public about  
            cosmetic surgery and its risks, and a comprehensive list of  








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            questions for patients to ask their physician and surgeon  
            regarding cosmetic surgery.

          8)Includes facilities that offer in vitro fertilization in the  
            definition of "outpatient setting."

          9)Requires outpatient settings to submit to an accreditation  
            agency detailed plans, standardized procedures, and protocols  
            to be followed in the event of serious complications or side  
            effects from surgery that would place a patient at high risk  
            for injury or harm.  

          10)Permits MBC to adopt standards that it deems necessary for  
            outpatient settings that offer in vitro fertilization.

          11)Requires the MBC to automatically notify the public about an  
            outpatient setting's accreditation, certification, or  
            licensure, and if a setting's accreditation, certification, or  
            license has been revoked, suspended, or placed on probation,  
            or the setting has received a reprimand by the accreditation  
            agency. 

          12)Requires an accreditation agency to immediately report to the  
            MBC if an outpatient setting's certificate for accreditation  
            has been denied. 

          13)Requires every accredited outpatient setting to be inspected  
            by an accreditation agency and be subject to inspection by the  
            MBC.

          14) Requires the MBC to ensure that accreditation agencies  
            inspect outpatient settings according to the following  
            parameters:

             a)   The frequency of inspection shall depend upon the type  
               and complexity of the outpatient setting to be inspected;

             b)   Inspections shall be conducted no less often than once  
               every three years by the accreditation agency and as often  
               as necessary by the MBC to ensure the quality of care  
               provided; and,

             c)   Permits the MBC or the accreditation agency to enter and  
               inspect any outpatient setting that is accredited by an  
               accreditation agency at any reasonable time to ensure  








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               compliance with, or investigate an alleged violation of,  
               any standard of the accreditation agency or any provision  
               of this chapter.

          15)Requires an accreditation agency to provide the outpatient  
            setting with notice of any deficiencies before suspending or  
            revoking a certificate of accreditation and requires the  
            outpatient setting to agree with the accreditation agency on a  
            plan of correction that gives the outpatient setting  
            reasonable time to supply information demonstrating  
            compliance.  Requires the outpatient setting to publicly post  
            a list of deficiencies and the plan of correction during the  
            time it is working towards compliance.

          16)Requires reports on the results of any inspection to be kept  
            on file with the MBC or the accreditation agency along with  
            the plan of correction and the outpatient setting comments.   
            Permits the inspection report to include a recommendation for  
            reinspection and requires all inspection reports, lists of  
            deficiencies, and plans of correction to be public records  
            open to inspection.

          17)Requires the accreditation agency to immediately report to  
            the MBC if:

             a)   The outpatient setting has been issued a reprimand;

             b)   The outpatient setting's certification of accreditation  
               has been suspended or revoked; or,

             c)   If the outpatient setting has been placed on probation.

          18)Requires, rather than permits, the MBC to evaluate the  
            performance of an approved accreditation agency no less than  
            once every three years, or in response to complaints against  
            an agency, or complaints against one or more outpatient  
            settings accreditation by an agency that indicates  
            noncompliance by the agency with the standards approved by the  
            MBC.  

          19)Requires the Department of Public Health (DPH) to inspect the  
            peer review process utilized by the hospital during a state  
            periodic inspection of an acute care hospital.

          EXISTING LAW  :








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          1)Provides that it is unlawful for health care licensees to  
            disseminate or cause to be disseminated any form of public  
            communication, as defined, containing false, fraudulent,  
            misleading, deceptive statement, or image, as specified, to  
            induce the provision of services or the rendering of a product  
            relating to a professional practice or business for which he  
            or she is licensed.   

          2)Requires the MBC in conjunction with the Board of Registered  
            Nursing (BRN), and in consultation with the Physician  
            Assistant Committee (PAC) 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.

          3)Specifies that the review conducted by the MBC, the BRN and  
            the PAC shall include the appropriate level of physician  
            supervision needed, the appropriate level of training to  
            ensure competency, guidelines for standardized procedures and  
            protocols that address patient selection, education,  
            instruction and informed consent, use of topical agents, and  
            procedures to be followed in the event of complications or  
            side effects from treatment and procedures for governing  
            emergency and urgent care situations.

          4)Requires the MBC to adopt standards for accreditation of  
            outpatient settings, as defined, and in approving  
            accreditation agencies to perform accreditation of outpatient  
            settings, ensure that the certification program shall, at a  
            minimum, include standards for specified aspects of settings'  
            operations.

          5)Requires the MBC to obtain and maintain a list of all  
            accredited, certified, and licensed outpatient settings, and  
            to notify the public, upon inquiry, whether a setting is  
            accredited, certified, or licensed, or whether the setting's  
            accreditation, certification, or license has been revoked.

          6)Requires DPH to license and inspect health facilities,  
            including acute care hospitals, and requires DPH to conduct  
            periodic inspections of acute care hospitals no less than once  
            every three years.  

           FISCAL EFFECT  :   Unknown








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           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "SB 674  
          attempts to guarantee the public's safety by strengthening the  
          regulation and oversight of fertility clinics and surgical  
          centers performing cosmetic procedures, and ensures that quality  
          of care standards are in place at these clinics and checked by  
          the appropriate credentialing agency."

           Background  .  According to a 2007 study by the American Society  
          of Plastic Surgeons, almost 12 million cosmetic plastic surgery  
          procedures were performed in 2007, a 7% increase from 2006 and a  
          59% increase from 2000.  The study concludes that, as with all  
          surgical procedures, cosmetic surgery carries with it certain  
          risks-if performed poorly, it can be disfiguring or  
          life-threatening.  In California, cosmetic surgery can be  
          performed by any licensed physician; from a plastic surgeon to a  
          pediatrician.  

          Medical spas or facilities offering botox injections, laser hair  
          removal, and microdermabrasion are emerging in malls, city  
          office buildings, and store fronts across the country.  Although  
          the federal Food and Drug Administration oversees the safety of  
          the machines and skin-care products used, there is little  
          regulation of these medical spas to guarantee that practitioners  
          in these facilities are administering treatments safely and  
          patients are aware of the potential risks associated with any  
          treatment.

          The Health and Safety Code makes a distinction between clinics  
          licensed by the DPH and outpatient settings that are accredited  
          by an outside accrediting agency under the oversight of the MBC.  
           Clinics licensed by the DPH are non-physician owned, while  
          clinics accredited by an accreditation agency approved by the  
          MBC are physician owned and operated.  DPH-licensed clinics  
          include those not part of a hospital which provide ambulatory  
          surgical care for patients who remain fewer than 24 hours.  As  
          part of their licensure, clinics under DPH's jurisdiction  
          undergo inspection and must have in place minimum standards of  
          safety and staffing.  

          Clinics that are physician-owned and are accredited by an  
          accreditation agency approved by the MBC and are commonly  
          referred to as "outpatient settings."  Outpatient settings are  








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          defined as a facility where anesthesia is used in doses that do  
          not have the probability of placing the patient at risk for loss  
          of life.  These clinics are accredited by one of four  
          accreditation bodies approved by the MBC.  These accrediting  
          agencies must ensure that certification programs include  
          standards for the operation of outpatient settings such as  
          safety and emergency training requirements, licensure or  
          certification of allied health staff, provision of onsite  
          equipment, medication and trained personnel in a medical  
          emergency, permit surgery only by a licensee who has admitting  
          privileges at a local accredited or licensed acute care  
          hospital, as defined, and a system for patient care and  
          monitoring procedures.  The four accrediting agencies approved  
          by the MBC are the American Association for Accreditation of  
          Ambulatory Surgery Facilities Inc., Accreditation Association  
          for Ambulatory Health Care, the Institute for Medical Quality,  
          and the Joint Commission.

           Arguments in support  .  The California Society of Dermatology and  
          Dermatologic Surgery (CalDerm) writes, "CalDerm's members have  
          seen an explosion in so-called med-spas where many procedures  
          are done without appropriate oversight.  SB 674 asks the MBC to  
          adopt regulations regarding the appropriate level of physician  
          availability needed within clinics or other settings using laser  
          or intense pulse light devices for elective cosmetic procedures.

          "And because of some clever, if not deceptive advertising, many  
          prospective patients are not aware of the lack of qualifications  
          of some of those who perform these procedures.  SB 674 will make  
          it harder for non-physicians to imply in advertisements that  
          they are physicians." 

           Arguments in opposition  .  The American Nurses  
          Association/California writes, "The Medical Board and Nursing  
          Board held hearings in California to review existing law and the  
          standards required for laser procedures or intense pulse light  
          devices for elective cosmetic procedures.  Both Boards  
          determined that the necessary laws for training and supervision  
          are already in place.  However, these laws are not being  
          enforced.  Creating a new law will not change the current  
          practice."

           Related legislation  :  

          SB 1423 (Figueroa), Chapter 873, Statutes of 2006, requires the  








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          MBC in conjunction with the BRN to promulgate regulations on or  
          before January 1, 2009 to implement changes relating to the use  
          of laser or intense pulse light devices for cosmetic procedures  
          by physicians and surgeons, nurses, and physician assistants. 

          SB 835 (Figueroa), of 1999, would have enacted the Cosmetic  
          Surgery Patient Disclosure Act, requiring physicians who perform  
          cosmetic surgery, as defined, to provide the MBC with specified  
          information, including training, board certifications, and  
          number of procedures performed, and requires the MBC to make  
          this information available to the public upon request and post  
          the information on the internet.  SB 835 was vetoed by the  
          Governor who indicated in his veto message that the methods  
          prescribed by the measure were unduly burdensome.

          SB 836 (Figueroa), Chapter 856, Statutes of 1999, expands and  
          revised the prohibition against fraudulent advertising by health  
          practitioners.

          SB 837 (Figueroa), of 1999 would have required cosmetic surgery  
          procedures to be performed in a licensed acute care hospital or  
          in a licensed or accredited outpatient surgery setting.  SB 837  
          was held in the Assembly Appropriations Committee.

           Double-referred  :  This bill is double-referred to the Assembly  
          Health Committee. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Society for Dermatologic Surgery Association
          California Society of Plastic Surgeons
          California Society of Dermatology and Dermatologic Surgery
          The Medical Board of California
          The Procter and Gamble Company
           
            Opposition 
           
          The American Nurses Association/California


           Analysis Prepared by  :    Sarah Huchel / B. & P. / (916) 319-3301