BILL ANALYSIS                                                                                                                                                                                                    Ó







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        |Hearing Date:July 2, 2012          |Bill No:AB                         |
        |                                   |1588                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                          Senator Curren D. Price, Jr., Chair
                                           

                         Bill No:        AB 1588Author:Atkins
                          As Amended:June 25, 2012 Fiscal:Yes

        
        SUBJECT:   Professions and vocations:  reservist licensee:  fees and 
        continuing education.
        
        SUMMARY:  Authorizes all boards, commissions, bureaus, committees, 
        departments, divisions, examining committees, programs and agencies 
        within the Department of Consumer Affairs to provide waivers from 
        professional license renewal fees and continuing education 
        requirements for military reservists called to active duty

        Existing law:
        
       1)Provides for the regulation of various professions and vocations by 
          boards, commissions, bureaus, committees, departments, divisions, 
          examining committees, programs and agencies within the DCA and for 
          the licensure or registration of individuals.  

       2)Authorizes any licensee whose licensed expired while he or she was on 
          active duty as a member of the California National Guard of the 
          United States Armed Forces to reinstate his or her license without 
          examination or penalty if the following requirements are met:  
          (Business and Professions Code (BPC) 114.3)

           a)   The licensee was in good standing with the board at the time 
             the reservist was called to active duty;

           b)   The renewal fees or continuing education requirements are 
             waived only for the period during which the reservist is on 
             active duty service and;

           c)   The active duty reservist, or the active duty reservist's 





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             spouse or registered domestic partner, provides written notice 
             satisfactory to the board that substantiates the reservist's 
             active duty service. 

       3)Exempts licensees of the Medical Board from paying license renewal 
          fees while engaged in full-time training or active service in the 
          Army, Navy, Air Force, Marines or in the United States Public Health 
          Service.  (BPC § 2440)

       4)Permits the Veterinary Medical Board to waive continuing education 
          requirements for veterinarians who are on active military duty.  
          (BPC § 4846.5(h))

       5)Permits the Board of Accountancy to waive continuing education 
          requirements for its licensees who are on active military duty.  
          (BPC § 5028)

       6)Authorizes the State Bar of California to waive the membership fees 
          of any member who is a service member if all of the following 
          requirements are met:  (Military and Veterans Code § 825)

           a)   The member was in good standing with the State Bar of 
             California at the time the member enters into military service. 

           b)   The membership fees are for the period for which the service 
             member is in military service.

           c)   The service member, or the service member's spouse, provides 
             written notice to the State Bar of California that substantiates 
             the service member's military service.
        
        This bill:

       1)Adds committees, departments, divisions, examining committees, 
          programs and agencies (as included in BPC § 22) to the list of 
          entities under DCA that can waive fees and requirements. 

       2)Requires the boards, commissions, bureaus, committees, departments, 
          divisions, examining committees, programs and agencies within DCA to 
          waive the applicable renewal requirements of any licensee or 
          registrant who is called to active duty as a member of the United 
          States Military Reserve or the California National Guard.

       3)Requires that written documentation substantiating the licensee or 
          registrant's active duty service be provided to the board which 
          regulates the licensee or registrant's profession.





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       4)Requires that licensees and registrants not engage in activities that 
          would require a license during the period that the waivers are in 
          effect.  

       5)Requires the licensee or registrant to meet all renewal requirements 
          within one year from the reservist's date of discharge from active 
          duty service. 

        FISCAL EFFECT:   According to the Assembly Committee on Appropriations 
        dated March 28, 2012, there is "unknown, potentially significant 
        revenue loss, in excess of 150,000 per year, in licensing revenue 
        (various special funds).  The majority of programs under the 
        Department of Consumer Affairs do not track whether a licensee is a 
        reservist member.  Of those that do, approximately one-third to 
        one-half of one percent of licensees fall under that category.  
        Assuming that percentage across all the various licensing categories 
        and in the unlikely event that half of those reservists were called to 
        active duty at the same time, it would result in an annual revenue 
        loss of up to $500,000."

        COMMENTS:
        
       1.Purpose.  The  Author  is the sponsor of the bill.  According to the 
          Author, active duty military members who have valid professional 
          licenses are not able to perform the duties for which they are 
          licensed while on active military duty.  Therefore, they cannot 
          receive the benefits of the licenses which they would pay to renew.  
          Military reservists are in a unique situation because they are 
          likely to have civilian vocations which they intend to return to 
          after active duty.  Their active duty status is a temporary 
          departure from their civilian lives and employment.  Therefore, AB 
          1588 proposes a temporary waiver of renewal requirements (such as 
          fee payment and continuing education) to ensure that reservists will 
          not be penalized for their service by having their license fall into 
          delinquency and possible suspension.  While the costs to renew 
          individual licenses vary, they can be hundreds of dollars.  It is 
          important to find ways to support our military reservists' civilian 
          lives while they serve our nation. 

       2.Background.   Military Reservists.   A reservist is a person who is a 
          member of a military reserve force.  They are otherwise civilians, 
          and in peacetime have careers outside the military.  Reservists 
          usually go for training on an annual basis to refresh their skills. 
          This person is usually a former active-duty member of the armed 
          forces, and they remain a reservist either voluntarily, or by 





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          obligation.  All five branches of the United States armed forces 
          have their own Reserve Forces, whose reservists can be called upon 
          to serve anywhere at any time including:

                   United States Army Reserve
                   Marine Forces Reserve (U.S. Marine Corps)
                   United States Navy Reserve
                   Air Force Reserve Command (U.S. Air Force)
                   United States Coast Guard Reserve

           There is also the United States National Guard, which is under dual 
           Federal/State control, and is traditionally intended for homeland 
           defense and domestic disaster relief (although large numbers are 
           currently deployed in Iraq, and as such the distinction between 
           National Guardsmen and Reservists has become blurred). The National 
           Guard is divided into:

                   Army National Guard (U.S. Army)
                   Air National Guard (U.S. Air Force)

           During peacetime, Reservists and National Guardsmen spend one 
           weekend a month, two weeks a year annually in training.

           Under existing law, a member of the California National Guard or 
           the United States Armed Forces is permitted to reinstate his or her 
           professional license or registration without examination or penalty 
           if their license expired while the licensee or registrant was on 
           active duty.  

           Other States.   Numerous states, including Colorado, Kentucky, 
          Louisiana and Michigan, have introduced or enacted legislation to 
          provide comparable license fee and continuing education waivers for 
          active duty military. 

       1.Arguments in Support.   The American Legion-Department of California  , 
          AMVETS-Department of California  ,  California Association of County 
          Veterans Service Officers  ,  California State Commanders Veterans 
          Council  , and the  Vietnam Veterans of America-California State 
          Council  wrote a joint letter of support.  In it they state: "When 
          our reservists are called to active duty, the last thing on their 
          minds is the renewal of any professional licenses they hold.  They 
          should not be negatively impacted by missing a renewal because they 
          are deployed.  We support your efforts to make sure that military 
          professionals are not penalized for being called to serve."

          The  Veterans of Foreign Wars Department of California  also supports 





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          the bill.  They note that this change in the Business and 
          Professions Code would help to ensure that persons who are serving 
          the nation would not lose their professional licenses while they are 
          on active duty in the military services. 

          The  Department of Defense State Liaison Office wrote:  "Activation 
          and deployment frequently cause life disruptions for the members of 
          the National Guard and Reserves, one of which can be renewal of 
          State licenses.  Remaining current on continuing education 
          requirements can be difficult, if not impossible, during activation. 
           Activation and deployment can also impact the financial situation 
          of the Service member.  AB 1588 will address both of these 
          concerns."

          According to the  American Federation of State, County and Municipal 
          Employees  , the costs of individual licenses are typically hundreds 
          of dollars.  AB 1588 ensures that military professionals will not be 
          penalized for their military service by allowing their professional 
          licenses to fall into delinquency and possible suspension during 
          their service period.  It is important to find ways to support our 
          military reservists' civilian lives while they serve our nation.

          Both the  American Nurses Association of California  and the  Blood 
          Centers of California  support the bill.  Both groups recognize the 
          presence of registered nurses and clinical laboratory scientists in 
          the military and approve this mechanism which will help these 
          providers return to their professions without delay. 

          The  Respiratory Care Board of California  states their support of the 
          bill.  They note in their letter: "The Board recognizes that this 
          bill will allow members of the Military Reserve of National Guard to 
          maintain a professional license set to expire while servicing on 
          active duty.  The Board also understands military professionals 
          would not be expected to pay to renew or fulfill continuing 
          education requirements for a professional license they cannot use 
          during their service period, and should not be penalized for their 
          military service by allowing their license to become delinquent 
          during their service period." 

        5. Previous Related Legislation.   AB 1666  (Frommer, Chapter 345, 
          Statutes of 2005) requires the State Bar to waive the membership 
          fees of any attorney in good standing for the duration of his or her 
          military service when written proof of military service is provided 
          to the State Bar.
        
        SUPPORT AND OPPOSITION:





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         Support:  

        American Federation of State, County and Municipal Employees
        American Legion-Department of California
        American Nurses Association of California
        AMVETS-Department of California
        Blood Centers of California
        California Association of County Veterans Service Officers
        California State Commanders Veterans Council 
        California State Commanders Veterans Council
        Department of Defense State Liaison Office
        Hearing HealthCare Providers
        Los Angeles County Democratic Party
        Respiratory Care Board of California
        Veterans of Foreign Wars of the United States Department of California
        Vietnam Veterans of America-California State Council

         Opposition:  

        None received as of June 27, 2012.



        Consultant:Le Ondra Clark