BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1584|
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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
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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
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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.
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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)
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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
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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
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