BILL ANALYSIS Ó SB 1159 Page 1 SENATE THIRD READING SB 1159 (Lara) As Amended August 22, 2014 Majority vote SENATE VOTE : 32-0 BUSINESS & PROFESSIONS 12-2 APPROPRIATIONS 13-4 ----------------------------------------------------------------- |Ayes:|Bonilla, Bocanegra, |Ayes:|Gatto, Bocanegra, | | |Campos, Dickinson, | |Bradford, Ian Calderon, | | |Eggman, Gordon, Hagman, | |Campos, Eggman, Gomez, | | |Holden, Maienschein, | |Holden, Linder, Pan, | | |Mullin, Skinner, Ting | |Quirk, Ridley-Thomas, | | | | |Weber | |-----+--------------------------+-----+--------------------------| |Nays:|Jones, Wilk |Nays:|Bigelow, Donnelly, Jones, | | | | |Wagner | ----------------------------------------------------------------- SUMMARY : Prohibits licensing boards under the Department of Consumer Affairs (DCA) from denying licensure to an applicant based on his or her citizenship or immigration status, and requires a licensing board and the State Bar to require, by January 1, 2016, that an applicant for licensure provide his or her individual taxpayer identification number (ITIN) or a social security number (SSN) for an initial or renewal license. Specifically, this bill : 1)Requires a board, as defined, the State Bar, and the Bureau of Real Estate to require, by January 1, 2016, that an individual applicant for licensure provide either an ITIN or SSN. 2)Prohibits any entity within DCA from denying licensure to an applicant based on his or her citizenship or immigration status. 3)Requires every board to implement all required regulatory or procedural changes by January 1, 2016, and authorizes a board to implement these provisions prior to that date. 4)Requires a board to report to the Franchise Tax Board (FTB) a licensee who fails to provide his or her ITIN, and subjects a licensee who fails to provide that information after notification to a penalty, as specified. SB 1159 Page 2 5)In addition to that penalty, prohibits a board from processing an application for an initial license unless the applicant provides his or her ITIN, where requested on the application. 6)Requires a board, upon request of the FTB, to furnish to the FTB specified information, including the licensee's ITIN. 7)Provides that an ITIN furnished pursuant to this bill is not deemed a public record and shall not be open to the public for inspection. 8)Provides that if the board uses a national examination to issue a license, and if a reciprocity agreement or comity exists between California and the state requesting release of the ITIN, the board may release the ITIN to an examination or licensing entity, only for the purpose of verification of licensure or examination status. 9)For purposes of enforcing child support payment provisions, requires any board, the State Bar, and the Bureau of Real Estate to require that each licensee provide the ITIN of each individual licensed on the license and any person who qualifies for the license. 10)Authorizes boards, as specified, to collect an ITIN instead of a SSN for purposes of existing law that requires all boards, as specified, to collect SSNs from applicants for the purposes of matching the names on a certified list, provided by the Department of Child Support Services (DCSS), of persons who are found to be out of compliance with a judgment or order for support, as specified. 11)Authorizes the FTB to require any board, the State Bar, the Bureau of Real Estate, and the Insurance Commissioner to provide to the FTB the licensee's ITIN, and to send a notice to any licensee failing to provide that number that describes the information that was missing, the penalty associated with not providing it, and that failure to provide that information within 30 days will result in the assessment of a penalty of $100. 12)Makes conforming statutory changes to remove the requirement of citizenship, legal admission, or documentary evidence thereof for the following authorizations to practice or other SB 1159 Page 3 licensure actions: a) Allow a foreign medical graduate to be eligible for a physician's and surgeon's certificate; b) Allow a foreign medical graduate to participate in professional activities in a medical school as a "visiting fellow," and to participate in a fellowship program in specified hospitals or clinics; c) Allow a foreign medical graduate who does not immediately qualify for a physician and surgeon's certificate of registration to practice medicine and who is offered a full-time faculty position at a medical school to be granted a certificate in connection with his or her position; d) Allow the Naturopathic Medicine Committee under the Osteopathic Medical Board to grant a certificate to practice naturopathic medicine to a person who does not hold a naturopathic doctor's license but who is offered a faculty position in a naturopathic medical education program; and, e) Allow an individual to be licensed as a professional fiduciary. 13)Finds and declares that it is in the best interests of the state to provide persons who are not lawfully present in the United States (U.S.) with the state benefits provided by all licensing acts of entities within DCA. 14)Makes other conforming and technical amendments. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)One-time costs to the Department of Consumer Affairs of up to $130,000 (various special funds) to update forms, publications, and information technology. 2)Unknown potential costs, likely minor, to DCA's boards and bureaus to ensure that new applicants using ITINs are complying with child support judgments. DCA's boards and bureau's currently perform this function using applicants' SB 1159 Page 4 social security numbers. 3)The bill would likely result in an increase in individuals applying for licenses at the various boards and bureaus within DCA, leading to increased licensing revenues. The amount of the increase is unknown. COMMENTS : 1)Purpose of the bill. This bill prohibits licensing boards from denying licensure to an applicant based on his or her citizenship or immigration status, and requires licensing boards to require an ITIN or SSN for an individual applicant for licensure. This bill is intended to provide additional identification options to applicants and licensees, thereby increasing access to California professional licenses to otherwise qualified individuals regardless of their immigration status. This bill is author-sponsored. 2)Author's statement. According to the author, "Many immigrants come to the [US] as children and attend California's public elementary and secondary schools, as well as public and private colleges and universities. Despite the high cost of higher education and limited resources, with hard work, a strong spirit of determination, and the assistance of state laws that provide access to nonresident tuition exemptions, state financial aid, and graduate school admissions tests, these students are now able to attend, participate in, and graduate from California colleges and universities. "Recently, the Legislature has begun to recognize the need to address arbitrary restrictions on professional licenses with the passage of SB 1822 (Bill Berryhill) in 2012 and AB 1024 (Gonzalez) in 2013. However, ambiguity in other sections of state law, in particular [BPC] 30 pertaining to the issuance of professional licenses has created barriers to access, and created an artificial wall that deprives many Californians of their only effective means of economic mobility and self-sufficiency. "Authorizing the use of a social security number or ITIN, if one has been issued, for the application of a professional license would ensure the collection and reporting of information to the [FTB] while clarifying inconsistent laws and removing arbitrary barriers to professional licenses." SB 1159 Page 5 3)Individual Taxpayer Identification Numbers. An ITIN is a tax processing identification number issued by the U.S. Internal Revenue Service (IRS) for the administration of tax laws. An ITIN consists of nine digits, beginning with the number nine (i.e. 9XX-XX-XXX). Since 1996, the IRS has issued ITINs to taxpayers and their dependents that are not eligible to obtain a SSN. The IRS issues ITINs because all wage earners, regardless of their immigration status, are required to pay federal taxes. ITINs allow people who are ineligible for a SSN to comply with tax laws, and are issued regardless of immigration status. Examples of individuals who need ITINs include nonresident aliens, a U.S. resident alien, and dependents or spouses of U.S. citizens or resident aliens, or of nonresident alien visa holders. To obtain an ITIN, an individual must complete an IRS form which requires documentation substantiating an individual's foreign or alien status and the true identity of the individual. 4)This bill does not affect FTB or DCSS's ability to track licensees. The purpose of requiring an SSN or federal employer identification number is to identify persons with outstanding tax liabilities or who are out of compliance with child support orders. Existing law authorizes the suspension of a delinquent taxpayer's occupational or professional license once a delinquency is at least five months old, and specified notices have been issued by the FTB. Existing law also authorizes license denials and suspensions for failure to pay court-ordered child support debt. According to both the FTB and DCSS, this bill would not affect the ability of the FTB or DCSS to identify persons with outstanding tax liabilities or child support payments because both entities have the capability to identify those persons using their ITIN. Analysis Prepared by : Eunie Linden / B., P. & C.P. / (916) 319-3301 FN: 0005371 SB 1159 Page 6