BILL ANALYSIS Ó
SB 1159
Page 1
Date of Hearing: August 28, 2014
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Susan A. Bonilla, Chair
SB 1159 (Lara) - As Amended: August 22, 2014
SENATE VOTE : 32-0
SUBJECT : Professions and vocations: license applicants:
individual tax identification number.
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.
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.
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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
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
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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 with the state benefits provided by all
licensing acts of entities within DCA.
14)Makes other conforming and technical amendments.
EXISTING STATE LAW :
1)Requires each board under DCA, as well as the State Bar and
Bureau of Real Estate to, at the time of issuance of the
license, require that the licensee provide their federal
employer identification number, if the licensee is a
partnership, or SSN for all others. (Business and Professions
Code (BPC) Section 30 (a))
2)Requires that any licensee who does not provide the federal
identification number or SSN be reported by the licensing
board to the FTB and is subject to a penalty. (BPC 30 (b))
3)Provides that in addition to a penalty, a licensing board may
elect to not process any application for an original license
if the applicant or licensee fails to provide its federal
employer identification number or SSN where requested on the
application. (BPC 30 (c))
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4)Requires a licensing board, upon request of the FTB, to
furnish to the FTB specified information including the federal
employer identification number if the entity is a partnership,
or SSN, for all others. (BPC 30(d); Revenue and Taxation Code
(RTC) 19528)
5)Provides that it is the intent of the Legislature to utilize
the SSN or federal employer identification number for the
purpose of establishing the identification of persons affected
by state tax laws and for purposes of compliance with current
law, as specified and, to that end, the information furnished
pursuant to this section shall be used exclusively for those
purposes. (BPC 30 (j))
6)Provides that DCSS shall maintain a "certified list" that
provides names of persons who are found to be out of
compliance with a judgment or order for support in a case
being enforced under the Social Security Act. (Family Code
(FAM) Section 17520(a)(3))
7)Provides that DCSS shall provide the certified list to each
board that is responsible for the regulation of licenses, as
specified, and that all boards shall collect SSNs from all
applicants for the purposes of matching the names and of
responding to requests for this information made by DCSS.
(FAM 17520(d))
8)Requires that promptly after receiving the certified list from
DCSS, and prior to issuance or renewal of a license, each
board shall determine whether the applicant is on the most
recent certified list provided by DCSS. The board shall have
the authority to withhold issuance or renewal of the license
of any applicant on the list. (FAM 17520(e))
9)Authorizes the FTB to require any board, the State Bar, the
Bureau of Real Estate, and the Insurance Commissioner to
provide to the FTB specified information, including the
licensee's federal employer identification number or SSN; to
send a notice to any licensee failing to provide those numbers
that describes the information that was missing; the penalty
associated with not providing it; that the failure to provide
that information within 30 days will result in the assessment
of a penalty of $100; and to assess a $100 penalty for any
licensee failing to provide its federal employer
identification number or his or her social security number.
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(RTC 19528)
EXISTING FEDERAL LAW :
1)Prohibits, under the federal Personal Responsibility and Work
Opportunity Reconciliation Act (P.L. 104-193), certain
categories of individuals not lawfully present in the United
States from receiving specified public benefits, including
"any grant, contract, loan, professional license, or
commercial license provided by an agency of a State or local
government or by appropriated funds of a State or local
government." (8 USC Sec. 1621(c))
2)Authorizes states to provide that "an alien who is not
lawfully present in the United States is eligible for any
State or local public benefit for which such alien would
otherwise be ineligible . . . through the enactment of a State
law after August 22, 1996, which affirmatively provides for
such eligibility." (8 USC Sec. 1621(d))
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'
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
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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.
"The provisions of SB 1159 are consistent with current law and
in compliance with federal law. Additionally, recent
amendments provide for a delayed implementation of the
measure, allowing boards and bureaus sufficient time to comply
with the provisions of the bill."
3)Federal Personal Responsibility and Work Opportunity
Reconciliation Act . Federal law, the Personal Responsibility
and Work Opportunity Reconciliation Act (PRWORA), P.L 104-193,
prohibits certain categories of individuals not lawfully
present in the United States from receiving certain public
benefits, including "any grant, contract, loan, professional
license, or commercial license provided by an agency of a
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State or local government or by appropriated funds of a State
or local government." (8 USC Section 1621) (emphasis added)
However, the PRWORA also authorizes a state to make those
individuals eligible for any state or local public benefit for
which he or she would not otherwise be eligible by
affirmatively providing for those benefits through an
enactment of state law.
Professional licenses issued by licensing boards under DCA
constitute a public benefit, as defined under federal law, and
licensing boards under DCA are considered agencies of the
state, thereby triggering the federal requirement in the
PRWORA for an enactment of state law to provide those
benefits. Accordingly, this bill seeks to affirmatively
provide this eligibility to obtain a professional license to
individuals who are not lawfully present in the United States.
4)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.
5)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
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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.
6)Arguments in support . The Los Angeles Area Chamber of
Commerce writes in support, "[This bill] would ensure that
otherwise eligible applicants are not denied a professional
license based solely on their immigration status?Many
immigrants come to California as children and are educated in
elementary and secondary schools in the state. Despite the
high cost of higher education and limited resources, many of
them continue on to higher education, availing themselves of
state laws that offer access to in-state tuition rates and
state financial aid. These young people have worked hard and
overcome many obstacles to succeed. Now, they are educated
and ready to contribute as professionals. Without access to a
professional license, many individuals will be limited in
their ability to contribute to our state."
The California Immigrant Policy Center writes in support,
"Without access to a professional license, many individuals
will be limited in their ability to participate in the
workforce or start a business and thereby limit their economic
contributions to the State. It is estimated that California's
labor force includes 1.85 million undocumented workers and
that households headed by undocumented workers contribute an
estimated $2.7 billion in state taxes. As such, we expect SB
1159 to make an impact on the economic opportunity of
otherwise eligible immigrants."
The National Association of Social Workers, California Chapter,
also writes in support, "It is in the best interest of our
state to support efforts to educate our workforce and enable
our residents, including immigrants to improve their economic
mobility and self-sufficiency, which will increase their
contributions back to the state."
7)Related legislation . AB 1024 (Gonzalez), Chapter 573,
Statutes of 2013, authorized the Supreme Court to admit to the
practice of law an applicant who is not lawfully present in
the United States, upon certification by the committee that
the applicant has fulfilled those requirements for admission,
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as specified.
8)Prior legislation . SB 1822 (Bill Berryhill), Chapter 317,
Statutes of 2012, authorized submission of an individual tax
identification number or another identification number, as
determined by the board, in place of a social security number
where the applicant is not eligible for a social security
number and is not out of compliance with a child support
judgment or order, as specified.
AB 664 (Jones), Chapter 610, Statutes of 2005, authorized, in
specified circumstances, submission of a federal tax
identification number or another identification number, as
determined by the State Bar of California, in place of the
applicant's social security number.
REGISTERED SUPPORT / OPPOSITION :
Support
American Civil Liberties Union of California
California Immigrant Policy Center
California Pan-Ethnic Health Network
Central American Resource Center - Los Angeles
Coalition for Humane Immigrant Rights of Los Angeles
Councilwoman Cristina N. Carrizosa, City of Pomona
Friends Committee on Legislation
The Latino and Latina Roundtable of the San Gabriel and Pomona
Valley
Los Angeles Area Chamber of Commerce
Mexican American Legal Defense and Educational Fund
National Association of Social Workers - California Chapter
Our Family Coalition
Pre-Health Dreamers
United Farm Workers (UFW)
Opposition
None on file.
Analysis Prepared by : Eunie Linden / B.,P. & C.P. / (916)
319-3301
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