BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       SB 1159|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                 UNFINISHED BUSINESS


          Bill No:  SB 1159
          Author:   Lara (D)
          Amended:  8/22/14
          Vote:     21


           SENATE BUSINESS, PROF. & ECON. DEV. COMM.  :  8-1, 4/21/14
          AYES:  Lieu, Berryhill, Block, Corbett, Galgiani, Hernandez,  
            Hill, Padilla
          NOES:  Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 5/5/14
          AYES:  De León, Gaines, Hill, Lara, Steinberg
          NO VOTE RECORDED:  Walters, Padilla

           SENATE FLOOR  :  32-0, 5/8/14
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Evans, Galgiani, Hancock,  
            Hernandez, Hill, Hueso, Huff, Jackson, Lara, Leno, Lieu, Liu,  
            Mitchell, Monning, Nielsen, Padilla, Pavley, Roth, Steinberg,  
            Torres, Vidak, Walters, Wolk
          NO VOTE RECORDED:  Calderon, Fuller, Gaines, Knight, Morrell,  
            Wright, Wyland, Yee

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Professions and vocations:  license applicants:   
          individual tax identification number

           SOURCE  :     Author


                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          2

           DIGEST :    This bill prohibits licensing boards under the  
          Department of Consumer Affairs (DCA) from denying licensure to  
          an applicant based on his/her citizenship or immigration status,  
          and requires a licensing board and the State Bar of California  
          to require, by January 1, 2016, that an applicant for licensure  
          provide his/her individual taxpayer identification number (ITIN)  
          or a social security number (SSN) for an initial or renewal  
          license.

           Assembly Amendments  prohibit DCA licensing boards from denying  
          licensure to applicants based on their citizenship or  
          immigration status; require DCA boards, by January 1, 2016, to  
          implement regulatory and procedural changes to implement this  
          bill; and make conforming and technical changes.

           ANALYSIS  :    

          Existing federal law:

           1. Prohibits, under the federal Personal Responsibility and  
             Work Opportunity Reconciliation Act (PRWORA), 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.

           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."

          Existing state law:

           1. Provides that each board under DCA, as well as the State Bar  
             and the Bureau of Real Estate (BRE) shall, at the time of  
             issuance of the license, require that the licensee provide  
             their federal employer identification number (EIN) if the  
             licensee is a partnership, or SSN for all others.

           2. Specifies that any licensee who does not provide the federal  

                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          3

             EIN or SSN shall be reported by the licensing board to the  
             Franchise Tax Board (FTB) and is subject to a penalty.

           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 EIN or SSN where requested on the application.

           4. Requires a licensing board, upon request of FTB, to furnish  
             to FTB specified information including the federal EIN if the  
             entity is a partnership, or SSN, for all others.

           5. States legislative intent to utilize the SSN or federal EIN  
             for the purpose of establishing the identification of persons  
             affected by state tax laws and for purposes of compliance  
             with existing law, as specified, and, to that end, the  
             information furnished pursuant to this section shall be used  
             exclusively for those purposes.

           6. Requires the Department of Child Support Services (DCSS) to  
             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.

           7. Requires DCSS to 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 of the  
             certified list to applicants and licensees and of responding  
             to requests for this information made by DCSS.

           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; and provides  
             that the board shall have the authority to withhold issuance  
             or renewal of the license of any applicant on the list.

           9. Authorizes FTB to require any board, the State Bar, the BRE,  
             and the Insurance Commissioner to provide to FTB specified  
             information, including the licensee's federal EIN or SSN; to  
             send a notice to any licensee failing to provide those  
             numbers that describes the information that was missing; the  

                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          4

             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 EIN or  
             his/her SSN.

          This bill:

           1. Requires a board, as defined, the State Bar, and BRE 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/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 FTB a licensee who fails to  
             provide his/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/her ITIN, where requested on the  
             application.

           6. Requires a board, upon request of FTB, to furnish to 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. Requires, for purposes of enforcing child support payment  

                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          5

             provisions, any board, the State Bar, and BRE 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 an 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 DCSS, of persons who are found to be out of compliance  
             with a judgment or order for support, as specified.

           11.Authorizes FTB to require any board, the State Bar, BRE, and  
             the Insurance Commissioner to provide to 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  
                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/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  

                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          6

                program; and

              E.    Allow an individual to be licensed as a professional  
                fiduciary.

           1. 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.

           2. Makes other conforming and technical amendments.

           Background
           
           PRWORA  .  The PRWORA 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 State or local government or by appropriated funds  
          of a State or local government."  However, the PRWORA also  
          authorizes a state to make those individuals eligible for any  
          state or local public benefit for which he/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.

           ITIN  .  An ITIN is a tax processing identification number issued  
          by the Internal Revenue Service (IRS) that is only available for  
          certain nonresident and resident aliens, their spouses, and  
          dependents who cannot get a SSN.  It is a 9-digit number,  
          beginning with the number "9" and is formatted like a SSN.  To  
          obtain an ITIN, an individual must complete an IRS form.  The  
          form requires documentation substantiating foreign/alien status  
          and true identity for the individual.  The person may either  
          mail the documentation, along with the required form, present it  
          at the IRS office, or process the application through an  

                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          7

          acceptable agent authorized by the IRS.

           Comments
           
          The author states, "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."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

           DCA indicates that it would incur one-time costs of up to  
            $130,000 (special funds) to update forms, publications, and  
            information technology.

           This bill could result in potential costs to DCA boards and  
            bureaus to ensure that new applicants using ITINs are  
            complying with child support judgments.  The extent of these  
            costs is unknown.

           This bill results 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.

           SUPPORT  :   (Verified  8/28/14)

          ACLU, California
          California Immigrant Policy Center
          California Pan-Ethnic Health Network
          Central American Resource Center, Los Angeles
          City of Pomona, Councilwoman Cristina N. Carrizosa
          Coalition for Humane Immigrant Rights of Los Angeles
          Educators for Fair Consideration
          Friends Committee on Legislation

                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          8

          Latino and Latina Roundtable of the San Gabriel Valley 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

           ARGUMENTS IN SUPPORT  :    The Los Angeles Area Chamber of  
          Commerce writes, "[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, "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,  
          writes, "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."


          MW:me  8/29/14   Senate Floor Analyses 


                                                                CONTINUED





                                                                    SB 1159
                                                                     Page  
          9

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****
          









































                                                                CONTINUED