BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1889
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1889 (Fong) - As Amended:  March 29, 2012 

          Policy Committee:                              Business and 
          Professions  Vote:                            8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires applicants for an acupuncture license to pass 
          a practical examination administered by the Acupuncture Board 
          (Board) and developed by the Office of Professional Examination 
          Services of the Department of Consumer Affairs (DCA).

           FISCAL EFFECT  

          1)One-time costs likely to exceed $200,000 to develop the exam 
            (Acupuncture Fund). 

          2)Ongoing costs of at least $500,000 (Acupuncture Fund) annually 
            to the Board administer the practical examination.  

          3)Because the Acupuncture Fund has a fairly low projected 
            balance of $440,000 at present, the fund may not be able to 
            support a surge in expenditures without fee increases.  The 
            Board is currently budgeted at a level that approximately 
            equals revenue collected, but in recent years has not spent 
            funds at this level due to staff vacancies.  A high balance in 
            this fund resulted in a $5 million GF loan in 2011-12 which 
            will be repaid, and this repayment would temporarily mitigate 
            some of the fiscal impact.  However, it is doubtful that 
            current fees would be adequate to cover the increased costs 
            over the long run.

            The examination fee is currently set at $550; it would have to 
            be increased by $500 or more per licensee to fund the 
            practical exam. 

           COMMENTS  








                                                                  AB 1889
                                                                  Page  2


           1)Rationale  . According to the author, AB 1889 is intended to 
            ensure consumers that acupuncturists meet essential 
            educational and clinical standards. The author asserts a 
            practical examination will determine if the acupuncturist's 
            competence to diagnose and treat patients is effective. This 
            bill is sponsored by the Council of Acupuncture and Oriental 
            Medicine Associations, an association of acupuncturists.

           2)Background  .  In 1999, the practical component of the 
            acupuncture licensing exam was discontinued.  Since that time, 
            the licensing exam has consisted of a written test developed 
            by the Office of Professional Examination Services within DCA. 
            The Little Hoover Commission in a 2004 report and recent 
            legislative sunset review hearings have discussed replacing 
            the California-specific test with the examination offered by 
            the National Certification Commission for Acupuncture and 
            Oriental Medicine.  There does not appear to be any evidence 
            of consumer harm, however, such as an increase in complaints 
            or patient injuries, as a result of the discontinuation of a 
            practical examination. 

           3)Opposition  .  The California State Oriental Medical 
            Association, also an association of acupuncturists, asserts 
            that the need for a clinical skills exam has not been 
            demonstrated, that clinical skills competency is best 
            demonstrated through clinical internships completed as part of 
            an existing accredited professional training program similar 
            to that in other health professions, and that development of a 
            meaningful, legally defensible, valid, and reliable clinical 
            skills exam at a reasonable cost is not possible.


           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081