BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1584|
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UNFINISHED BUSINESS
Bill No: SB 1584
Author: Padilla (D)
Amended: 8/14/08
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
SENATE FLOOR : 21-15, 5/12/08
AYES: Alquist, Calderon, Cedillo, Corbett, Ducheny,
Florez, Kehoe, Kuehl, Lowenthal, Migden, Negrete McLeod,
Padilla, Perata, Ridley-Thomas, Romero, Scott, Simitian,
Steinberg, Torlakson, Wiggins, Yee
NOES: Aanestad, Ackerman, Ashburn, Battin, Cogdill,
Correa, Cox, Denham, Dutton, Harman, Hollingsworth,
Maldonado, Margett, McClintock, Wyland
NO VOTE RECORDED: Machado, Oropeza, Runner, Vincent
ASSEMBLY FLOOR : 49-27, 8/18/08 - See last page for vote
SUBJECT : Veterinary medicine: fees
SOURCE : Veterinary Medical Board
CONTINUED
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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.
Assembly amendments require the Veterinary Medical Board
(VMB) to appoint a voluntary, advisory, multidisciplinary
committee to assist, advise, and make recommendations for
the implementation of rules and regulations necessary to
ensure proper administration of the Veterinary Medicine
Practice Act, specify the membership terms and the
composition of the Registered Veterinary Technician (RVT)
committee, amends the RVT exam eligibility requirements,
require the VMB to prioritize its investigative and
prosecutorial resources, establish a priority list for
investigative and prosecutorial resources, require the VMB
to report annually and make publicly available the number
of disciplinary actions it takes, as specified, specify
that veterinarians designated by the VMB to review and
investigate allegations must be employed by the state
either full time or part time and have not been out of
practice for more than four years, require the VMB to
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, permit the VMB to issue an
interim suspension in case where violations represent an
immediate threat to the public and animal health and
safety, and require the VMB to consider, in making
regulations covering the assessment of civil penalties,
whether a violation is minor.
ANALYSIS :
Existing Law
1. Provides for the licensing and regulation of
veterinarians, registered veterinary technicians and
veterinary hospitals by the VMB in the Department of
Consumer Affairs.
2. Requires the VMB to establish an advisory committee on
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issues pertaining to the practice of veterinary
technicians, to be known as the 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.Requires the VMB to appoint a voluntary, advisory,
multidisciplinary committee to assist, advise, and make
recommendations for the implementation of rules and
regulations necessary to ensure proper administration of
the Act. The committee shall consist of no more than
nine members, appointed by the VMB.
2.Specifies the membership terms and the composition of
the RVT committee.
3.Amends the RVT exam eligibility requirements to permit
that education or a combination of education and
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clinical experience may constitute the equivalent of the
current graduation requirement, as specified.
4.Increases the regulatory ceiling on certain fees for
RVTs, veterinarians, and veterinary premises.
5.Requires a school or institution to pay for the actual
costs of an onsite inspection conducted by the VMB, as
specified.
6.Requires every person registered by the VMB who changes
his/her mailing address to notify the VMB of the new
mailing address within 30 days of the change. States
that the VMB shall not renew the registration of any
person who fails to comply with this section unless the
person pays a penalty fee.
7.Requires the VMB to prioritize its investigative and
prosecutorial resources to ensure that the most
problematic veterinarians and RVTs are identified and
disciplined expeditiously.
8. Establishes a priority list for investigative and
prosecutorial resources.
9.Requires the VMB to report annually and make publicly
available the number of disciplinary actions it takes,
as specified.
10.Requires VMB to 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.
11.Permits the VMB to issue an interim suspension in case
where violations represent an immediate threat to the
public and animal health and safety.
12.Requires the VMB to consider, in making regulations
covering the assessment of civil penalties, whether a
violation is minor.
Background
Funding Board Operations . The VMB licenses and regulates
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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 Assembly Appropriations Committee
analysis:
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.
SUPPORT : (Verified 5/20/08)
California Veterinary Medical Board (source)
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
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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.
ASSEMBLY FLOOR :
AYES: Aghazarian, Arambula, Beall, Berg, Brownley,
Caballero, Charles Calderon, Carter, Coto, Davis, De La
Torre, De Leon, DeSaulnier, Dymally, Emmerson, Eng,
Evans, Feuer, Fuentes, Furutani, Galgiani, Hancock,
Hayashi, Hernandez, Huffman, Jones, Karnette, Krekorian,
Laird, Leno, Levine, Lieber, Lieu, Ma, Mendoza, Mullin,
Nava, Nunez, Parra, Portantino, Price, Ruskin, Salas,
Saldana, Solorio, Swanson, Torrico, Wolk, Bass
NOES: Adams, Anderson, Benoit, Berryhill, Cook, DeVore,
Duvall, Fuller, Gaines, Garcia, Horton, Houston, Huff,
Jeffries, Keene, La Malfa, Maze, Nakanishi, Niello,
Plescia, Silva, Smyth, Spitzer, Strickland, Tran,
Villines, Walters
NO VOTE RECORDED: Blakeslee, Garrick, Sharon Runner, Soto
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JJA:do 8/21/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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