BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1215 (Emmerson) - Optometry
          
          Amended: April 12, 2012         Policy Vote: BP&ED 8-0
          Urgency: No                     Mandate: Yes
          Hearing Date: April 30, 2012                           
          Consultant: Jennifer Douglas    
          
          This bill does not meet the criteria for referral to the 
          Suspense File.
          
          
          Bill Summary: SB 1215 would allow an optometrist retiring from 
          practice to be issued a retired license by the State Board of 
          Optometry.  The holder of a retired license would be prohibited 
          from engaging in the practice of optometry, would no longer be 
          required to complete continuing education and would be 
          authorized to reactivate their license upon repayment of a 
          reactivation fee.  The bill also allows an optometrist retiring 
          from practice to be issued a retired license with a volunteer 
          service designation.  The holder would be subject to biennial 
          renewal requirements and would be required to complete 
          continuing education, as specified.  Because the bill would 
          direct the deposit of these fees into the Optometry Fund, a 
          continuously appropriated fund, the bill would make an 
          appropriation.

          SB 1215 also amends the address notifications for an 
          optometrist's place of practice and temporary practice.

          Fiscal Impact: 
              Minor increase of estimated $3,750 in license fee revenue 
              to the State Optometry Fund, ongoing; assuming no change in 
              number of inactive licenses issued annually.
              Minimal costs for clarification of address notifications 
              and place of practice requirements.

          Background:  The Optometry Practice Act, provides for the 
          licensure and regulation of the practice of optometry by the 
          State Board of Optometry.  Currently, if an optometrist wants to 
          retire from practice they can be issued an inactive license and 
          are required to pay a biennial renewal fee of $425, the same as 
          for an active license.  Or, an optometrist retiring from 








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          practice can choose not to pay their licensing fees and have 
          their license expire and are considered delinquent until the 
          license is cancelled after three years.  A license status of 
          delinquent or cancelled has a negative connotation and does not 
          accurately reflect a retired licensee's status to consumers. 

          Several other Boards offer a retired license designation, 
          including the Medical Board of California, the Respiratory Care 
          Board and the Board of Pharmacy.  

          Related Legislation: AB 2848 (Hernandez) 2008 would have created 
          a retired license status for optometrist, but did not define a 
          means for a retired license to return to active status.  The 
          bill died in the Senate.

          Staff Comments: The fiscal impact of changes in licensing status 
          and fees can vary widely.  The board may see a minor increase in 
          revenue from optometrists who choose a retired license or 
          retired license with volunteer service designation (volunteer 
          license) rather than let their license become expired and 
          eventually cancelled, which currently results in no revenue to 
          the board.  For example, if 250 optometrists retire annually and 
          20 percent (50) choose to pay $425 for an inactive license 
          another 80 percent (200) are allowing their license to expire.  
          Preliminary data indicates that some optometrists choose to 
          obtain an inactive license when they want to retire and this 
          analysis assumes that they would want to continue to obtain an 
          inactive license.  Under this bill optometrists who would have 
          chosen to let their license expire now have the additional 
          option of either obtaining a retired license or a volunteer 
          license.  If 20 percent (50) now choose a retired license for a 
          one-time fee of $25 that would result in $1,250 in additional 
          revenue to the board and if another 20 percent (50) now choose a 
          volunteer license for $50 that would be $2,500 that board would 
          now be receiving biennially through renewal fees, for a total 
          revenue increase of $3,750.

          There appear to be minimal costs associated with the Statement 
          of Licensure provision related to place of practice and address 
          notification.












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