BILL ANALYSIS Ó SB 1202 Page 1 Date of Hearing: August 8, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1202 (Leno) - As Amended: May 29, 2012 Policy Committee: Business and Professions Vote: 9-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill modifies numerous provisions relating to the Hygiene Committee of California (committee) within the Dental Board of California, including raising statutory maximum fee levels and creating new fee categories. Specifically, this bill: 1)Raises the statutory maximum levels of several fees: a) License application fee, from $50 to $250. b) Biennial renewal fees, from $80 to $250. c) Delinquency fee, from $40 to one-half the renewal fee (maximum of $125). d) Curriculum review and site evaluation, from $1,400 to $2,100. 2)Establishes and creates statutory maximum levels for several new fee categories as: a) Certification of licensure, maximum of $250. b) Registration of an extramural dental facility, maximum of $250. c) Registration of a mobile dental hygiene unit, maximum of $150. d) Biennial renewal fee for a mobile dental hygiene unit, maximum of $250. e) Additional office permit, maximum of $250. f) The biennial renewal fee for an additional office, maximum of $250. g) The initial application and biennial special permit fee, set equal to the biennial renewal fee of $250. 3)Allows the committee to issue a special permit for out-of-state dental hygiene instructors to teach in SB 1202 Page 2 California. Modifies certain requirements related to potential out-of-state licensees. 4)Authorizes, instead of requires, the committee to approve dental hygiene educational programs accredited by the Commission on Dental Accreditation. 5)Requires potential licensees to complete certain courses related to "extended functions" (gingival soft tissue curettage, nitrous oxide-oxygen analgesia, and local anesthesia). 6)Tightens requirements related to failure of clinical exams. 7)Allows Registered Dental Hygienists in Alternative Practice (RDH-AP) to establish mobile clinics, and establishes site registration requirements for RDH-APs. FISCAL EFFECT 1)One-time costs for development and promulgation of regulations and standards related to approval of educational programs, registration of places of practice and mobile clinics for RDH-APs, and registration of extramural dental facilities, as well as workload analysis to support fee increases, in the range of $80,000. 2)One-time costs in the range of $100,000 to modify IT systems to support a number of changes made by this bill. 3)Likely minor ongoing costs, under $50,000, to manage various new requirements and to exercise the additional authority granted to the committee by this bill. 4)All costs would be funded through the Dental Hygiene special fund. As this bill raises statutory maximum levels for existing fees and creates statutory maximum levels for new fees, additional revenue will not be generated until the committee increases fees by resolution as authorized under existing law. However, additional costs related to this bill are expected to be fully covered by increased fee revenue. COMMENTS 1)Rationale . The author indicates this bill implements changes SB 1202 Page 3 identified by the committee and the California Dental Hygienists' Association that ensure the committee is best able to oversee the profession. Provisions of this bill ensure dental hygienists are properly trained and licensed, ensure approved educational programs are high-quality, expand access to dental care by allowing mobile treatment sites, and allow the committee flexibility to raise fees to address a projected deficit in 2016-17. 2)Fiscal Comments Related to Fee Levels . Fees related to core licensure and renewal fees provide most of the revenue to support committee functions. Some of the steep increases in these fee ceilings for these licensure and renewal fees appear unwarranted. For example, the committee will be authorized to increase the total fee to obtain an initial license from $50 to $250. Licensure renewal fees could also increase from $80 to $250. Information provided from the committee to the Senate Business and Professions Committee indicates the committee is projected to collect approximately $700,000 in renewal fees, which provides the majority of the committee's revenues. Based on this level of current and projected fee collection, the $167,000 deficit projected for fiscal year 2016-17 could be covered entirely by more modest increases in licensure and renewal fees. Even a doubling of renewal fees to $160 would provide far in excess of the committee's projected annual expenditures for the next five years. This bill also creates a fee category for certification of licensure, with a maximum fee of $250. The committee indicates certification of licensure is a verification sent to another state board or similar entity that the licensee is in good standing. Workload costs for checking licensure status and sending verification do not appear to warrant a $250 maximum fee level. 3)Prior Legislation . SB 853 (Perata) of 2008 created the Dental Hygiene Committee of California to regulate the profession. Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081 SB 1202 Page 4