BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           1584 (Padilla)
          
          Hearing Date:  4/28/08          Amended: As Introduced
          Consultant:  Bob Franzoia       Policy Vote: B,P&ED 5-3
          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 1584, relating to veterinary medicine, would do  
          the following: 
          - Require a registered veterinary technician to notify the  
          Veterinary Medical Board (VMB) of a change of address and impose  
          a penalty of $25 for the failure to do so.
          - Delete the authorization for the VMB to make a charge for  
          official documents and instead provide that any charge for  
          duplication or other services be set at the cost of rendering  
          the service, which is consistent with other provisions of the  
          Veterinary Medical Practice Act, except as provided.
          - Increase the maximum amounts that the VMB may set for other  
          fees and delete the existing provision requiring the VMB to set  
          and collect the fee for the national licensing examination.
          - Require that a school or institution seeking approval of a  
          registered veterinary technician curriculum pay an application  
          fee not to exceed $300 and to pay the actual costs of board  
          inspection.
          By increasing the source of funds for a continuously  
          appropriated fund, the bill would make an appropriation.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)
           Major Provisions         2008-09      2009-10       2010-11     Fund
           Fee revisions          $218       $436        $436      Special*
          (revenues)

          * Veterinary Medical Board Contingent Fund
          _________________________________________________________________ 
          ____
          STAFF COMMENTS: The VMB licenses and regulates approximately  
          17,000 licensees including, 9,800 veterinarians, 4,200  
          registered veterinary technicians, and 2,600 veterinary  
          hospitals.  The VMB has not requested a statutory fee increase  
          since 1992.

           --------------------------------------------------- 
          |Year      |          | |           | |    2007-08* |










          |          |2005-06   | |2006-07    | |             |
          |----------+----------+-+-----------+-+-------------|
          |Revenue   |$1,671,580| |$1,818,789 | |$1,970,000   |
          |          |          | |           | |             |
          |----------+----------+-+-----------+-+-------------|
          |Expenditur|$1,764,000| |$2,142,000 | |$2,206,000   |
          |es        |          | |           | |             |
          |----------+----------+-+-----------+-+-------------|
          |Shortfall |          | |           | |             |
          |          |<$92,420> | |<$323,211> | |<$236,000>   |
          |          |          | |           | |             |
           --------------------------------------------------- 
          VMB Three Year Budget Summary                                    
          * Projected

          Business and Professions Code 4905 generally requires the VMB  
          Contingent Fund to maintain a reserve of not less than three  
          months and not more than 10 months of annual board expenditures.  
          This bill would increase and revise existing fees and add one  
          new fee for the failure to report an address change.  These  
          increases would eliminate the subsidy of the registered  
          veterinary technician exam by veterinarian licensing fees and  
          provide a reserve 1.2 months higher that the statutory minimum.  
          Absent these increases, it is estimated the VMB will have a  
          negative fund balance by 2011-12.