BILL ANALYSIS SB 1584 Page 1 Date of Hearing: July 2, 2008 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mark Leno, Chair SB 1584 (Padilla) - As Amended: June 23, 2008 Policy Committee: Business and Profession Vote: 7-1 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill increases various regulatory fees for veterinarians and registered veterinary technicians (RVTs), establishes investigatory and enforcement priorities for the Veterinary Medical Board (VMB), and make other changes to the Veterinary Medicine Practice Act. Specifically, this bill: 1)Increases the regulatory ceiling on various licensing-related fees for veterinarians and RVTs. The cap on most fees will double, and in some cases will increase by up to 250%. 2)Requires the VMB to prioritize its investigative and prosecutorial resources, as specified, to ensure that the most problematic veterinarians and RVTs are identified and disciplined expeditiously. 3)Requires the VMB to: a) Report annually and make publicly available the number of disciplinary actions it takes. b) Provide a notice of deficiencies and a reasonable time for compliance prior to further action for any violations found as a result of an inspection. SB 1584 Page 2 c) Consider, in making regulations covering the assessment of civil penalties, whether a violation is minor. 4)Requires every registrant to notify the VMB within 30 days of changing their mailing address, and stipulates that the VMB shall not renew the registration of anyone failing to comply unless a penalty fee is paid. 5)Requires the VMB to appoint a voluntary advisory committee until July 1, 2011 to assist, advise, and make recommendations for the implementation of rules and regulations necessary to ensure proper administration of the Act. FISCAL EFFECT 1)Annual special fund revenues of $480,000 from increased fees ($440,000) and additional citations ($40,000). [VMB Contingent Fund] 2)Special fund costs of $170,000 in 2009-10 and $150,000 in 2010-11 for one position to support the advisory committee and for presumed additional citations and appeals related to a more targeted enforcement program. COMMENTS 1)Background and Purpose . The VMB licenses and regulates approximately 9,800 veterinarians, 4,200 RVTs and 2,600 veterinary hospitals. The VMB's statutory fee ceilings have not been increased since 1992. The board increased its fees to the maximum allowable on October 1, 2007 to cover increasing costs of its operations, but the board indicates that these levels are insufficient to offset a dwindling fund balance, and the fund will be nearly insolvent by 2010-11. This bill is the result of efforts between the California Veterinary Medical Association and the VMB to link the fee increases with operational reforms at the board. 2)Amendments . The author is proposing amendments to (1) add SB 1584 Page 3 additional investigative priorities and (2) provide the board with authority to take immediate action, without notice of deficiencies or time for compliance, in cases where violations represent an immediate threat to health and safety. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081