BILL ANALYSIS Ó
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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
SENATE BUSINESS, PROF.& ECON. DEV.COMM .: 7-1, 8/29/14 (Pursuant
to Senate Rule 29.10)
AYES: Lieu, Berryhill, Block, Corbett, Hernandez, Hill, Torres
NOES: Wyland
NO VOTE RECORDED: Galgiani
ASSEMBLY FLOOR : Not available
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SUBJECT : Professions and vocations: license applicants:
individual tax identification number
SOURCE : Author
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
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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
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.
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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
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
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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
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;
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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.
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,
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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
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
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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
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
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self-sufficiency, which will increase their contributions back
to the state."
MW:me 8/29/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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