BILL ANALYSIS AB 107 Page 1 Date of Hearing: April 1, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 107 (Galgiani) - As Introduced: January 12, 2009 Policy Committee: Business and Professions Vote: 10 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill makes various changes to the Veterinary Medicine Practice Act and the Veterinary Medical Board (VMB), which governs veterinarians practicing in California. Specifically, this bill: 1)Requires the governor to appoint one public member to the VMB. 2)Requires the VMB to waive the examinations requirements for out-of-state veterinarians who wish to practice in California and meet certain requirements. 3)Requires the VMB to offer a licensing examination at least twice a year. FISCAL EFFECT 1)Costs associated with computer programming changes and workload increases would be approximately $110,000 from the Veterinary Medical Board Contingent Fund for 2009-10 with an on-going annual cost of $70,000 from the same fund. 2)This bill would increase licensing revenue by approximately $25,000 in the first and second years, growing to $50,000 in 2011-12 and continuing to grow by $25,000 a year as 100 new veterinarians are licensed each year. 3)The Department of Consumer Affairs estimates this will result AB 107 Page 2 in an increase of 100 veterinarians in California each year. Currently, approximately 12% of veterinarians treat farm animals. If the purpose of this bill is to attract more agricultural veterinarians, this legislation would result in 12 more of these veterinarians in the state each year with a net annual cost of $3,750 per newly licensed agricultural veterinarian. COMMENTS 1)Rationale . This bill is primarily designed to increase the number of veterinarians and veterinary technicians who treat farm animals in California. The sponsors, the Western United Dairymen (WUD) and the California Cattlemen's Association, that there is a lack of agricultural veterinarians in California, which is adversely impacts, the dairy industry. They believe contend shortages are not only due to a decline in the number of graduates, but also because there are no incentives for large animal/agricultural veterinarians to practice in California. According to the California Veterinary Medical Association (CVMA), there are approximately 7,500 veterinarians in California and 222 graduate from veterinary schools in the state each year. The author notes that in order to combat the shortage of agricultural veterinarians it is critical that the state find a way to keep veterinarians who graduate from California's veterinary schools, and to attract veterinarians from other states. This bill provides a modest incentive for veterinarians by requiring the VMB to offer the licensing exam more often and by waiving examination requirements for out-of-state veterinarians who wish to relocate to California. However, these incentives are not specifically targeted to agricultural veterinarians; they are available to all veterinarians wishing to practice in the state. 2)Large-Animal Veterinarian Shortage . The nation is currently facing a shortage of large-animal veterinarians who treat farm animals. According to recent studies conducted for the American Veterinary Medical Association, it is expected that the demand for "food supply" (agricultural) veterinarians will increase by as much as 14 percent by 2016 and that at the same AB 107 Page 3 time the nation will have an ongoing decrease of 4 to 5 percent annually in the number of veterinarians willing to treat farm animals. Most veterinarians gravitate toward treating small animals for various reasons. Small animal veterinarians generally make more money from pet owners who are willing to pay for expensive treatments for sick or injured animals. Ranchers, on the other hand, tend to slaughter a sick or injured animal rather than invest in costly veterinary care. For veterinarians with large student loans, the ability to make a larger income to pay off those loans could become a necessity. In addition to the higher earning potential, working with small animals is less physically demanding. The shortage could directly affect the safety of the nation's food supply as veterinarians are responsible for monitoring the health of the livestock. The recent recall of 143 million pounds of beef from the Hallmark/Weston Meat Packing Company in San Bernardino County has greatly increased the awareness of the vulnerability of the food supply and the need for increased oversight and for more veterinarians willing to provide care for these animals. 3)Other States' Legislation . Currently, eight states (including Ohio and Pennsylvania) are attempting to address the shortage of agricultural veterinarians by offering student loan forgiveness programs and eight other states are considering similar legislation. 4)Prior Legislation . This bill is virtually identical to AB 1760 from 2008 that was vetoed due to the late passage of the 2008-09 budget. In the message the governor wrote, "I am only signing bills that are the highest priority for California. This bill does not meet that standard and I cannot sign it at this time." Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081