BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1584| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 1584 Author: Padilla (D) Amended: As introduced Vote: 21 SENATE BUS., PROF. & ECON. DEVEL. COMMITTEE : 5-3, 4/14/08 AYES: Ridley-Thomas, Calderon, Corbett, Simitian, Yee NOES: Aanestad, Denham, Harman NO VOTE RECORDED: Florez SENATE APPROPRIATIONS COMMITTEE : 8-5, 4/28/08 AYES: Torlakson, Cedillo, Corbett, Florez, Kuehl, Ridley-Thomas, Simitian, Yee NOES: Cox, Aanestad, Dutton, Runner, Wyland NO VOTE RECORDED: Ashburn, Oropeza SUBJECT : Veterinary medicine: fees SOURCE : Veterinary Medical Board DIGEST : This bill increases the fee amount charged for veterinarian licensing, registered veterinary technician registration, registered veterinary technician schools and creates new fees to be paid by these licensees for services provided to them by the Veterinary Medical Board. ANALYSIS : Existing Law CONTINUED SB 1584 Page 2 1. Provides for the licensing and regulation of veterinarians, registered veterinary technicians and veterinary hospitals by the Veterinary Medical Board (VMB) in the Department of Consumer Affairs. 2. Requires the VMB to establish an advisory committee on issues pertaining to the practice of veterinary technicians, to be known as the Registered Veterinary Technician (RVT) Committee. 3. Provides that the duties of the RVT Committee include, among other things, advising and assisting the VMB in: A. The examination of applicants for veterinary technician registration. B. The inspection and approval of schools. C. Developing regulations to establish animal health care tasks and the appropriate degree of supervision. 4. Requires the VMB to set (by regulation) and collect various fees, including, but not limited to, a licensing examination fee for veterinarians, a registration fee for veterinary technicians, a diversion program registration fee, and an application fee for schools seeking approval of a registered veterinary technician curriculum. 5. Requires the VMB to establish diversion program (Program) criteria and provides that the Program cannot accept more than 100 participants. Additionally, authorizes the VMB to establish diversion evaluation committees (DEC) and provides for the DEC composition and duties. This bill: 1.Increases the maximum fee and creates new fees the VMB may charge for various licensing and regulatory activities as follows: A. Registered veterinarian technician application SB 1584 Page 3 exam fee from $200 to $350. B. Initial registered veterinarian technician registration fee from $100 to $350. C. Biennial registered veterinarian technician renewal fee from $100 to $350. D. School application fee from cost of approval process to a flat $300 fee plus actual cost. E. Failure to report a change in mailing address from $15 to $25 for veterinarians and new fee for registered veterinarian technicians. F. Diversion program registration fee from $1,600 to $4,000. G. Veterinarian application exam fee from $100 to $350. H. Board exam fee for veterinarians from $150 to $350. I. Veterinary Medicine Practice Act exam for veterinarians from $50 to $100. J. Initial veterinarian license fee from $250 to $500. K. Biennial veterinarian renewal fee from $250 to $500. L. Veterinarian temporary license fee from $125 to $250. M. Veterinary premise fee from $100 to $400. N. Issuance of a duplicate veterinarian license from $10 to $25. O. Duplication or other services (other than a license) from making a charge to the cost of rendering the service. SB 1584 Page 4 P. Delinquency fee from $25 to $50. 2.Requires registered veterinarian technicians to notify the VMB of any changes to their mailing address within 30 days of the change. 3.Updates various code sections to reflect the change in the name of the technician from animal health technician to registered veterinary technician. Background Funding Board Operations . The VMB licenses and regulates approximately 17,000 licensees including, approximately 9,800 veterinarians, 4,200 registered veterinary technicians and 2,600 veterinary hospitals. The VMB has remained within its statutory limits and has not sought legislation to increase the fee ceilings since 1992 (in over 16 years). According to the VMB, it increased its fees through the regulatory process on October 1, 2007, to the current statutory maximums, not to fund new programs, but to cover increasing costs of existing business operations. The fee increase in October 2007 was minimal due to the current statutory fee ceilings and is not sufficient to offset a dwindling Contingent Fund. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee analysis: Fiscal Impact (in thousands) Major Provisions 2008-09 2009-10 2010-2011 Fund Fee revisions $218 $436 $436 Special* (revenues) *Veterinary Medical Board Contingent Fund SUPPORT : (Verified 4/29/08) SB 1584 Page 5 California Veterinary Medical Board (source) OPPOSITION : (Verified 4/29/08) California Veterinary Medical Association ARGUMENTS IN SUPPORT : According to the Veterinary Medical Board, it understands that fee increases impact business, the profession and consumers and does not propose increases without considering all options. However, now, based on projections of a Contingent Fund deficiency by the year 2011-2012, outlined in fund conditions projections prepared by the Budget office of the Department of Consumer Affairs, the VMB believes it must request an increase in its fee ceilings. The VMB states that the proposed fee ceilings are based on an annualized inflation rate of three percent. The VMB is mandated by law to maintain a minimum of three months of revenue in its Contingent Fund to insure funding for existing programs and to offset increases in the cost of doing business. For example, according to the VMB, in the last few years the hourly rate for the Office of the Attorney General increased from $139 to $158, increasing the annual expenditure from $240,000 to $425,000. The VMB points out that other expenditure increases over the last few years include examination development costs, employee compensation and benefits, retirement, worker's compensation, rent and advancements in information technology systems. Additionally, a transition to online licensing, scheduled to begin in 2010, required a conversion to an automated Applicant Tracking System and a one-time cost in 2007 of $83,000. Operating cost increases are deducted directly out of the VMB's Contingent Fund. According to the VMB, it is continually evaluating ways to control or reduce expenditures and maintain a viable Contingent Fund. Currently, the VMB has reduced the number of examination development workshops each year and is considering the possibility of using the national veterinary technician examination instead of a California examination. ARGUMENTS IN OPPOSITION : According to its letter of SB 1584 Page 6 opposition, the California Veterinary Medical Association (CVMA) indicates it is unable to support this bill at this time due to significant concerns with the several facets of the VMB's performance. The CVMA states it has had ongoing frustrations with the VMB's inspection and enforcement program. In particular, it is concerned about the fact that while veterinarians must comply with the law, the VMB's inspectors and consultants have been unable to apply consistent, clear, and fair enforcement standards to countless cases. Thus, the CVMA argues that the fee increase could reinforce the current, defective system of enforcement practice The other main concern the CVMA has with the Board is the dominance of the RVT Committee. In particular, it is the CVMA's contention that the RVT Committee has been significantly exceeding its directive and the CVMA is concerned that the new fees could be used to bolster the Committee's current controversial legislative and regulatory platform. Finally, the CVMA points out that in many cases, the bill proposes to raise the fee caps by double if not triple the current level while the VMB has not spelled out how they plan to utilize the various fee increases. Therefore, the CMVA indicates it opposes this bill until it has a better understanding of the need for the fees, and the way they will be applied to address consumer protection and proper enforcement. JJA:do 4/29/08 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****