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 SB 1215 (Emmerson) Page 1 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. SB 1215 (Emmerson) Page 2