BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 122
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          Date of Hearing:   June 26, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                     SB 122 (Price) - As Amended:  June 21, 2012

           SENATE VOTE  :   30-6
           
          SUBJECT  :   Healing Arts.

           SUMMARY  :   Makes a number of changes to law pertaining to the 
          Medical Board of California, (MBC), the California Board of 
          Registered Nursing (BRN), and the California Massage Therapy 
          Council (CAMTC).  Specifically,  this bill  :   

          1)Authorizes the MBC to issue a physician and surgeon license to 
            an applicant who: successfully completes a medical curriculum 
            in a medical school that is not approved or recognized by the 
            MBC or that has been disapproved by the MBC; passes a written 
            exam deemed equivalent to that administered in California; has 
            held an unrestricted physician and surgeon license to practice 
            medicine in another state or country or as a member of the 
            active military, United States Public Health Services, or 
            other federal program for a minimum of five years; has no 
            history of disciplinary action; has not been the subject of 
            adverse judgments or settlements; has completed specified 
            postgraduate training; and, has not committed any acts or 
            crimes constituting grounds for license denial, as specified.

          2)Requires the MBC to review and process any application 
            received from applicants described above.

          3)Deletes provisions requiring a school of nursing that is not 
            affiliated with an institution of higher education to make an 
            agreement with such an institution for purposes of awarding 
            nursing degrees and instead authorizes the BRN to grant 
            approval to these institutions to grant nursing degrees.

          4)Requires the BRN to have a memorandum of understanding with 
            the Bureau for Private Postsecondary Education (BPPE) to 
            delineate the powers of the BRN to review and approve schools 
            of nursing and the powers of the BPPE to protect the interest 
            of students attending institutions governed by the Private 
            Postsecondary Education (PPE) Act of 2009.








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          5)Subjects a school of nursing or a new nursing program seeking 
            approval by the BRN to the following fee schedule:

             a)   A fee of $5,000 for approval of a nursing program;

             b)   A fee of $3,500 for continuing approval of a nursing 
               program established after January 1, 2013; and,

             c)   A fee of $500 for processing authorization of a 
               substantive change to an approval of a school of nursing.

          6)Requires the BRN to issue a cease and desist order to a school 
            of nursing not approved by the BRN and to notify the BPPE and 
            the Attorney General of such a school.  Makes it 
            unprofessional conduct for any registered nurse (RN) to 
            violate or attempt to violate or to assist or abet the 
            violation of this provision.

          7)Requires meetings of the BRN to be held in northern and 
            southern California.

          8)Defines an operator of a massage business to mean a person, 
            whether owner or nonowner, who manages or operates a massage 
            business.

          9)Allows the use of credit unit equivalents (in addition to 
            hours) in determining completion of required education for 
            massage practitioners and massage therapists.

          10)Revises the dual path to licensure for massage therapists by 
            adding the following educational requirements to the option 
            that currently requires only the passage of a competency 
            assessment examination: successful completion, at a single 
            approved school, of curricula in massage and related subjects 
            totaling a minimum of 250 hours that incorporates appropriate 
            school assessment of student knowledge and skills.  Included 
            in the hours shall be instruction addressing anatomy and 
            physiology, contraindications, health and hygiene, and 
            business and ethics, with at least 100 hours of the required 
            minimum 250 hours devoted to these curriculum areas.

          11)Requires certificates and identification cards issued by the 
            CAMTC to be surrendered to CAMTC by any holder whose 
            certificate has been suspended or revoked.








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          12)Allows the CAMTC to immediately suspend the certificate of a 
            certificate holder upon receipt of clear and convincing 
            evidence that the holder has committed an act punishable as a 
            sexually related crime or felony, and requires the CAMTC to 
            consider any available credible mitigating evidence before 
            making a decision to suspend a certificate, as specified.  

          13)Provides the holder of a suspended certificate the right to a 
            hearing within 30 days, and requires the CAMTC to send notice 
            of suspension to the certificate holder, businesses on record 
            with the CAMTC as employing or contracting with the holder, 
            and the local permitting authority with jurisdiction over the 
            employing or contracting businesses, as specified.

          14)Authorizes a law enforcement agency or local government 
            agency with responsibility for regulating massage or massage 
            business, upon request of the CAMTC, to provide information to 
            the CAMTC concerning an applicant or certificate holder, 
            including, but not limited to: the current status of any 
            application or local permit; any history of disciplinary 
            action taken against the applicant or certificate holder; any 
            information related to criminal activity or unprofessional 
            conduct allegedly engaged in by an applicant or certificate 
            holder, including, but not limited to, police reports and 
            declarations of conduct; the home and work addresses of the 
            applicant or certificate holder; and, any other information in 
            the law enforcement agency's or other local government 
            agency's possession that is necessary to verify facts or 
            implement laws governing massage therapists.

          15)Authorizes the CAMTC to deny an application or discipline a 
            certificate holder for a conviction of any infraction, 
            municipal code violation, or liability in an administrative or 
            civil action that is substantially related to the 
            qualifications, functions, or duties of a certificate holder, 
            in which event the record of the conviction or other judgment 
            shall be conclusive evidence of the crime or liability.

          16)Requires a certificate holder to have his or her 
            identification card in his or her possession while providing 
            massage services.

          17)Requires a certificate holder, upon request at the location 
            where he or she is providing massage services, to provide his 








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            or her full name and certificate number to a member of the 
            public, the CAMTC, or a member of law enforcement or a local 
            government agency charged with regulating massage.

          18)Specifies that business license fees charged to a massage 
            business or establishment can be no higher than the lowest fee 
            that is applied to other individuals and businesses providing 
            professional services, as specified.

          19)Makes a certified massage business owner responsible for the 
            conduct of all employees or independent contractors working on 
            the premises of the business.

          20)Specifies that local jurisdictions can only ask for 
            information from applicants for a massage business license 
            that is the same as that required of other individuals and 
            professionals providing professional services, as specified.

          21)Specifies that the background check that a local jurisdiction 
            can require of an owner or operator of a massage establishment 
            may include, but is not limited to, a criminal background 
            check, including requiring submission of fingerprints.  If a 
            noncertified owner's or operator's background check results in 
            a finding that the local jurisdiction determines is relevant 
            to owning or operating a massage establishment, then specified 
            rights to practice shall not apply to that establishment and 
            the local jurisdiction may regulate that establishment in any 
            manner it deems proper that is in accordance with the law.

          22)Specifies that nothing in statutes governing massage therapy 
            shall be construed to restrict or limit in any way the 
            authority of a local jurisdiction to adopt a local ordinance 
            restricting the opening of a new massage establishment in a 
            location in which a massage establishment has been closed due 
            to criminal activity.

           EXISTING LAW  :

          1)Provides for the regulation of various health professions by 
            regulatory boards within the Department of Consumer Affairs 
            (DCA). 

          2)Licenses and regulates the practice of medicine via the MBC 
            within the DCA.









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          3)Authorizes the MBC to determine whether materials submitted as 
            proof of completing requisite medical education and training 
            by applicants for a physician and surgeon certificate meet 
            those requirements, and to determine whether medical schools 
            meet statutory and regulatory requirements for the provision 
            of medical education and training.

          4)States that protection of the public shall be the highest 
            priority for the MBC in exercising its licensing, regulatory, 
            and disciplinary functions and that, whenever the protection 
            of the public is inconsistent with other interests sought to 
            be promoted, the protection of the public shall be paramount.

          5)Establishes the Nursing Practice Act (NP Act) which provides 
            for the certification and regulation of RNs, nurse 
            practitioners and advanced practice nurses by the BRN within 
            the DCA.   

          6)Establishes the BPPE within DCA and provides for BPPE 
            oversight and regulation of California private postsecondary 
            institutions pursuant to the PPE Act, including a school of 
            nursing that is not accredited by accrediting agencies 
            affiliated with the Western Association of Schools and 
            Colleges or regional accrediting agencies recognized by the 
            United States Department of Education (USDE).

          7)Provides for the voluntary certification of massage 
            practitioners and massage therapists by the CAMTC.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           Purpose of this bill  .  According to the author, "It has recently 
          come to the attention of the Author that physicians who have 
          been practicing in other states in good standing for many years 
          are being refused a license to practice in California because 
          the medical school they attended has not been approved by the 
          MBC or may have at some time been disapproved by the MBC.  The 
          Author believes that the MBC should at least be able to have the 
          discretion to review the practice and other qualifications of 
          the physician and surgeon who has been practicing in another 
          state and make a determination whether they are competent to 
          practice within California even though they may have attended a 
          medical school that is currently not on the approved list of 








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          medical schools of the MBC.  Current law does not permit the MBC 
          to make such a determination.  There are other health related 
          boards which have the discretion to make a determination about 
          licensing of out-of-state practitioners about whether they 
          should practice in California, regardless of whether or not the 
          school they attended has been approved.  This includes the Board 
          of Behavioral Sciences, the Psychology Board, the 
          Speech-Language Pathology and Audiology Board, and the 
          Veterinary Medicine Board.  With the potential shortage of 
          physicians and surgeons in this state and the advent of National 
          Health Care Reform, this will provide greater reciprocity for 
          physicians to practice in California.  Out-of-state physicians 
          will be reviewed for licensure based on their five-year or more 
          history as a medical practitioner as well as their education and 
          training and in meeting the other requirements to practice in 
          this state.  Their application for a physician and surgeon's 
          license will not be rejected just because the medical school 
          does not appear on the MBC's approved list of schools."

          The author also states, "The BRN believes that the following 
          changes will provide improvements to the BRN's nursing school 
          approval process by: (1) Granting complete authority over the 
          approval of nursing schools to the BRN rather than requiring a 
          duplicative process under the BPPE, and to offset costs of the 
          BRN in both approving and regulating nursing schools; and (2) 
          Providing the BRN with the ability to issue a cease and desist 
          order to a school of nursing which has not been approved (or has 
          been disapproved) by the BRN and requiring the BRN to inform the 
          Attorney General of a school which continues to operate 
          illegally.  The measure will also make some other clarifying and 
          technical changes regarding the nursing school approval process 
          and to meetings of the BRN."

          The author also provided the following rationale for the bill's 
          changes to statutes governing the CAMTC:

          This bill defines "operator" as someone who owns or manages a 
          business.  Under current law, cities and counties can conduct 
          background checks of non-certified owners of massage businesses. 
           Due to the fact that often the owner is not on site or involved 
          in operations, city attorneys have requested the right to 
          investigate a person who has substantial authority over the 
          operation of the establishment, such as hiring and firing of 
          certified massage professionals.









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          This bill allows education to be "250 hours or the credit unit 
          equivalent" and "500 hours or the credit unit equivalent."  The 
          USDE has issued new rules for recognizing school credits issued. 
           Currently, CAMTC converts credits to hours but some states have 
          recognized in rules that they will accept both.  California 
          schools have suggested that CAMTC do the same to avoid confusion 
          regarding student financial aid. 

          This bill adds a requirement that a person be qualified as a 
          massage practitioner in addition to passing an approved exam.  
          Current law has a loophole though which a person without any 
          massage training can qualify for certification by passing an 
          exam that requires no proof of education.  In California, it has 
          been discovered that people were taking test review preparation 
          courses on the internet without any supervised massage 
          education.  To prevent this, CAMTC currently does not recognize 
          the Massage and Bodywork Licensing Examination (MEBLEx), which 
          was developed by the Federation of State Massage Therapy Boards 
          and is currently used by 36 states, the District of Columbia, 
          Puerto Rico and the Virgin Islands for state licensing purposes 
          and does not set a requirement for education because each state 
          (except for California) sets their own standard in order to sit 
          for the exam.  This provision will allow an applicant who has at 
          least 250 hours of approved education to qualify at the higher 
          tier by passing an exam, and would allow CAMTC to recognize the 
          MEBLEx.

          This bill specifies that the certificate and ID card are the 
          property of CAMTC and shall be surrendered upon suspension or 
          revocation.  This is standard practice for suspended or revoked 
          certifications and licenses

          This bill adds to grounds for immediate suspension of 
          certification acts of unprofessional conduct based on clear and 
          convincing evidence of a sexually related crime or felony based 
          on sworn declarations, which was requested by law enforcement 
          and the enforcement division of CAMTC. 

          This bill allows law enforcement or a local government agency to 
          provide information to CAMTC regarding a certificate holder or 
          applicant, including the status of a local permit, disciplinary 
          actions, criminal activity or unprofessional conduct, police 
          reports and declarations of conduct.  A small number of city 
          attorneys, including from Los Angeles, do not believe that local 
          governments have the authority to provide information to CAMTC, 








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          resulting in approval of applicants who would otherwise be 
          denied.  All applicants sign an authorization for release of 
          such information to CAMTC.

          This bill adds to the grounds for denial or discipline an 
          infraction, municipal code violation or liability in an 
          administrative or civil action that is substantially related to 
          the practice of massage.  It is common to charge relevant crimes 
          such as solicitation as infractions, civil citations or 
          municipal code violations.  Administrative and civil citations 
          are alternatives to criminal proceedings against a 
          person/business for violation of the city's laws.  Government 
          Code specifically authorizes cities to make violations of 
          ordinances subject to a civil fine or penalty instead of the 
          usual criminal fine.  These citations are subject to appeal and 
          ultimately can be challenged in court.  Currently, defense 
          attorneys are advising clients to plea to infractions to avoid 
          denial or discipline by CAMTC. 

          This bill requires that the ID card be in the possession of the 
          therapist while providing massage and that he or she display 
          only an original certificate.  This is a city request.  The 
          certificate itself does not have a photo.  Other professions 
          require only original certificates/licenses be displayed.

          This bill requires certified professionals to provide their full 
          name and certification number to the public, CAMTC or law 
          enforcement upon request.  The public has a right to know who 
          their massage therapist is and whether they are certified. 

          This bill specifies that the business license fees can be no 
          higher than the lowest fee charged other professionals.  This is 
          a city request.  Currently, most cities have multiple rates for 
          professionals.  In some cases this will result in lower fees.

          This bill clarifies that an application for a business license 
          for businesses in which everyone provided is certified shall be 
          the same as that required of other individuals and professionals 
          providing professional services.  This is a city request for 
          clarification.

          This bill makes the certified owner responsible for the conduct 
          of all employees or independent contractors working on the 
          premises of the business.  The current language has a loophole 
          whereby if anyone providing massage is not certified, the owner 








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          cannot be held responsible for the conduct of those providing 
          massage on the premises.
           
          This bill allows the owner/operator background check to be 10 
          years and include live scan and criminal background check.  If 
          the owner background check results in findings of history 
          relevant to owning or management of a massage business, certain 
          provisions do not apply.  Several city attorneys interpret 
          current language as prohibiting checking 10 years work and home 
          address history (as CAMTC does on the applicant for 
          certification) or including a criminal background check and live 
          scan.  The law does not currently allow a city or county to 
          prevent a person from opening or operating a massage business as 
          there are no consequences should the background investigation 
          reveal offenses substantially related to the operation of a 
          massage business. 

          This bill states that local jurisdictions have the authority to 
          restrict the ability of a new massage business to open for a 
          period of one year in any location in which a massage business 
          has been closed for criminal activity.  This is a city request.  
          It is common for illicit businesses to change ownership and 
          continue the same type of business.  Nuisance abatement, which 
          prohibits any use of the site for one year, is costly and 
          burdensome on the city and county.  The revolving door of 
          illicit businesses is a huge problem for cities and counties.

           Background  .  Long-standing statutes and regulations govern the 
          approval of medical schools, including international medical 
          schools, by the MBC, which carries out this duty through its 
          Division of Licensing.  The MBC's medical school approval 
          process is a thorough and rigorous assessment of an 
          institution's competency in meeting California's statutory and 
          regulatory requirements for the education and training of 
          medical doctors.  These requirements were designed to ensure the 
          integrity of the profession and protect health care consumers.

          Specific statutory requirements apply to international medical 
          schools.  A school that applies to the MBC for approval must 
          complete and submit a self-assessment report that collects 
          information about the institution's mission and objectives, 
          organizational structure, curriculum, governance, faculty, 
          admissions and promotion standards, financial resources, 
          facilities, medical students, records, branch campuses, and 
          affiliation agreements.  The MBC may request follow-up 








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          information and may require a site visit before approving or 
          disapproving a medical school, which is a lengthy and 
          labor-intensive process.  A school that has been neither 
          approved nor disapproved is considered unrecognized.

          Even with the MBC's robust review process, hundreds of approved 
          medical schools are listed on the MBC's website in dozens of 
          countries.  Only 10 disapproved schools are listed, the last of 
          which was disapproved in 2007.  Approximately 75 medical schools 
          are undergoing the MBC's medical school approval process, and 
          the MBC has approved about 10 or 12 schools in the past nine 
          months.

          This bill, as recently amended in the Assembly without review by 
          a Senate Committee, allows the MBC to issue a physician and 
          surgeon's certificate to an applicant who has completed his or 
          her medical education at a school that is not approved or 
          recognized by the MBC or that has been disapproved by the MBC, 
                                                  with specifying conditions.  The bill also requires the MBC to 
          review and process any application received from such 
          applicants.  

          The author has not provided compelling evidence as to the need 
          for this provision, or any information suggesting the MBC's 
          current medical school evaluation process is deficient or 
          problematic.  These provisions have the potential to render 
          meaningless California's current statutory requirements for the 
          education and training of physicians and the institutions that 
          provide this education and training, negate the value of schools 
          that have been approved, and weaken the standards established to 
          ensure protection of the public.  They also pose a significant 
          burden on the MBC in reviewing and processing applications from 
          any individuals who have attended unapproved or disapproved 
          schools, possibly forcing the MBC to review these institutions 
          on a case-by-case basis rather than through its established 
          process on an institutional basis.  The Committee may wish to 
          consider whether these provisions are necessary or merited.

          The BRN is responsible for regulating the practice of RNs in 
          California, including implementation and enforcement of the laws 
          and regulations related to nursing education, licensure, 
          practice and discipline.    

          According to information provided by the author, the average 
          length of time for initial BRN approval of a nursing school 








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          application is 18 months, but there have been instances when the 
          process has taken four to five years, especially if the 
          applicant is a for-profit institution.  With over 41,500 
          qualified applicants in 2009-10 and the ability of both public 
          and private programs to admit only about 14,200 applicants in 
          2009-10, the BRN must find ways to improve its approval process 
          so that private for-profit schools have an equal chance of 
          meeting the requirements to provide nursing programs.  

          The BPPE is generally responsible for protecting consumers and 
          students against fraud, misrepresentation, or other business 
          practices at private postsecondary institutions that may lead to 
          loss of students' tuition and related educational funds; 
          establishing and enforcing minimum standards for ethical 
          business practices and the health and safety and fiscal 
          integrity of postsecondary education institutions; and, 
          establishing and enforcing minimum standards for instructional 
          quality and institutional stability for all students in all 
          types of private postsecondary educational and vocational 
          institutions.  

          SB 731 (Oropeza), Chapter 384, Statutes of 2008, created 
          voluntary statewide certification of massage therapists by the 
          Massage Therapy Organization (MTO).  The purpose of the MTO was 
          to make the process of certification the same throughout the 
          state, rather than different in each city and county.  The 
          certification allows for work in multiple California locations 
          without the need for multiple permits or fees.

          The MTO was renamed the CAMTC by the organization.  CAMTC 
          evaluates the qualifications of massage professionals and issues 
          certifications in California.  There are two levels of 
          certification, massage therapist and massage practitioner, each 
          with different educational requirements.  If a certificate 
          holder violates terms of certification, CAMTC can suspend or 
          revoke their certification.  Although California law grants 
          title protection, there is no defined scope of practice for 
          massage professionals.  Scope of practice questions therefore 
          fall under what insurance providers will cover in the event of a 
          claim and what falls outside the exclusive scope of practice of 
          licensed health care professions.

          Local cities and counties cannot require local massage permits 
          of CAMTC certificate holders, but they can require permits 
          dealing with reasonable health and safety issues. They will also 








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          generally require a business license of the business owner, 
          independent contractor, or tenant.

           Support  .  The California Massage Therapy Council writes, "CAMTC 
          has worked with representatives of the California Police Chiefs 
          Association, the League of California Cities, the California 
          State Association of Counties, and city attorneys throughout the 
          state in preparing the proposed amendments to the massage 
          therapy law.  The massage provisions in this bill will make the 
          statewide massage certification program more effective in its 
          mission to protect the public."

           Opposition  .  The American Civil Liberties Union writes, "We are 
          concerned that people with a massage therapist certificate may 
          have those certificates suspended (1) even before the individual 
          has been arrested for the crime (much less convicted of that 
          crimes), (2) this suspension may take place for any felony which 
          would include crimes that are not directly related to the 
          qualifications to practice their professions (i.e. drug 
          possession), and (3) people should be entitled to expedited 
          hearings when their certificates as a massage therapist been 
          suspended.  

          "In addition, we are also concerned that a conviction of an 
          infraction or municipal code violation should not be sufficient 
          to deny an individual a certificate or give cause for 
          disciplinary action because infractions are considered so 
          minimal that defendants are not given legal representation.  An 
          individual should not be in the place of losing his or her 
          certificate or not being refused a certificate based on these 
          minor offenses.

          "While we understand that this certificate is similar to 'good 
          housekeeping seal of approval' (rather than actual licensure to 
          practice), we believe that the state-imposed standards that 
          directly affect an individual's ability to practice their 
          profession must meet the fundamental due process and 'directly 
          related to an individual's fitness' to practice their 
          professions standards."

           Previous Legislation  .  SB 538 (Price) of 2011extends the sunset 
          date of the BRN and makes a number of changes to the BRN's 
          authority and operations, and to the NP Act, including 
          provisions substantially similar to the provisions of this bill. 
           This bill was vetoed for reasons unrelated to these provisions.








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          AB 619 (Halderman) Chapter 162, Statutes of 2011, changes the 
          name of the MTO to the CAMTC and makes a number of clarifying, 
          conforming and technical changes to the Massage Therapy Act.

          SB 731 (Oropeza) Chapter 384, Statutes of 2008, creates the MTO 
          and provides for the voluntary certification of massage 
          therapists and massage practitioners by the MTO.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Massage Therapy Association
            California Massage Therapy Council

           Opposition 
           
          American Civil Liberties Union
          Associated Bodywork and Massage Professionals

           Analysis Prepared by  :    Angela Mapp / B.,P. & C.P. / (916) 
          319-3301