BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1239|
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                                 THIRD READING


          Bill No:  SB 1239
          Author:   Price (D)
          Amended:  4/16/12
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEVELOP. COM  :  7-0, 04/23/12
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, 
            Strickland, Wyland
          NO VOTE RECORDED:  Negrete McLeod, Vargas

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/24/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg


           SUBJECT  :    Acupuncture

           SOURCE  :     Author


           DIGEST  :    This bill extends to January 1, 2015 (two years 
          only), the provisions establishing the Acupuncture Board 
          (Board) and extends the term of the executive officer to 
          January 1, 2015.  This bill makes clarifying change to the 
          Board's authority to promulgate regulations regarding 
          standards for the approval of schools, training and 
          educational programs; makes other technical changes.

           ANALYSIS  :    Existing law:

            1.  Establishes the California Acupuncture Board within 
              the Department of Consumer Affairs (DCA), which 
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              licenses and regulates the acupuncture profession 
              pursuant to the Acupuncture Licensure Act.

            2.  Defines an acupuncturist as an individual who has 
              been licensed to practice acupuncture pursuant to the 
              Acupuncture Licensure Act.  Defines acupuncture as the 
              stimulation of a certain point or points on or near the 
              surface of the body by the insertion of needles to 
              prevent or modify the perception of pain or to 
              normalize physiological functions, including pain 
              control, for the treatment of certain diseases or 
              dysfunctions of the body and includes the techniques of 
              electroacupuncture, cupping, and moxibustion. 

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

            4.  States that a licensed acupuncturist is authorized to 
              do the following: 

             A.   To engage in the practice of acupuncture.

             B.   To perform or prescribe the use of Asian massage, 
               acupressure, breathing techniques, exercise, heat, 
               cold, magnets, nutrition, diet, herbs, plant, animal, 
               and mineral products, and dietary supplements to 
               promote, maintain, and restore health.  Nothing in 
               this section prohibits any person who does not possess 
               an acupuncturist's license or another license as a 
               healing arts practitioner from performing, or 
               prescribing the use of any of these modalities, as 
               specified.

            1.  States that the Board shall issue a license to 
              practice acupuncture to any person who applies and 
              meets the following requirements:  

             A.   Is at least 18 years of age.

             B.   Furnishes satisfactory evidence of completion of 

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               one of the following:  1) an education and training 
               program, as specified; 2) satisfactory completion of a 
               tutorial program in the practice of an acupuncturist 
               which is approved by the Board; or 3) In the case of 
               an applicant who has completed education and training 
               outside the United States and Canada, documented 
               education training and clinical experience, as 
               specified.

             C.   Passage of a written examination administered by 
               the Board, as specified.

             D.   Completion of a clinical internship training 
               program approved by the Board.  

          This bill:

          1.Extends until January 1, 2015, the provisions 
            establishing the Board. 

          2.Extends until January 1, 2015, the term of the executive 
            officer of the Board.

          3.Makes clarifying change to the Board's authority to 
            promulgate regulations regarding standards for the 
            approval of schools, training and educational programs.  

          4.Makes other technical changes.

           Background
           
          The Board regulates the practice of acupuncture and Asian 
          medicine in the State of California.  The Board establishes 
          and maintains entry standards of qualification, primarily 
          through its authority to license.  The primary 
          responsibility of the Board is to protect California 
          consumers from incompetent, and/or fraudulent practice 
          through the enforcement of the Acupuncture Licensure Act 
          and the Board's regulations.  The Board implements 
          regulatory programs and performs a variety of functions to 
          protect consumers.  These activities include setting 
          licensure requirements for acupuncturists, developing and 
          administering the licensure exam, issuing and renewing 
          licenses, overseeing the investigation of complaints 

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          against licensees or allegations of unlicensed activity, 
          overseeing the continuing education program, and monitoring 
          probationer acupuncturists.

          The practice of acupuncture involves the stimulation of 
          certain points on or near the surface of the body by the 
          insertion of needles to prevent or modify the perception of 
          pain or to normalize physiological functions, including 
          pain control, for the treatment of certain diseases or 
          dysfunctions of the body and includes the techniques of 
          electroacupuncture, cupping and moxibustion.   An 
          acupuncturist is also allowed to perform or prescribe the 
          use of Asian massage, acupressure, breathing techniques, 
          exercise, heat, cold, magnets, nutrition, diet, herbs, 
          plant, animal and mineral products, and dietary supplements 
          to promote, maintain, and restore health.  However, unlike 
          the practice of acupuncture itself, these treatments and 
          modalities are not restricted just to the acupuncture 
          profession.

          There are approximately 10,000 active licensees in 
          California.  The Board has an annual operating budget of 
          approximately $1.5 million.  The Board is a special fund 
          agency, and its funding comes from the licensing of 
          acupuncturists and biennial renewal fees of acupuncturists, 
          as well as acupuncture schools and continuing education 
          (CE) providers.  Currently, the license and renewal fee for 
          acupuncturists is $325.  The Board also receives revenue 
          through its cite and fine program.  The average revenue 
          from fines over the past three fiscal years (2008/09 
          through 2010/11) is $87,000.

          The Board's anticipated expenditures for FY 2010/2011 are 
          $1.9 million.  The Board is scheduled to loan the General 
          Fund $5 million in Fiscal Year 2011/12.  That loan is 
          scheduled to be repaid with interest in FY 2013/14.  
          However, the reserve funds will be reduced to 2.1 months 
          before the loan is scheduled for repayment.  The Board 
          spends approximately 40% of its budget on its enforcement 
          program, with the major portion of these expenditures going 
          to operating expenses and equipment.

          The Board is authorized nine staff positions, three of 
          which were vacant when the Board submitted its sunset 

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          review report in November 1, 2011.  Due to the hiring 
          freeze at that time, the Board had not filled these 
          positions.  The Board stated that "the vacancies have had a 
          negative impact on the Board's ability to handle our 
          workload;" however, there was no evidence provided by the 
          Board to support this statement. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee, estimated 
          annual cost of $1.99 million from the Acupuncture Fund 
          (1110-0108) based on the 2010-11 Budget Act, all costs 
          offset by existing fees.


          JJA:nl  5/25/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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