BILL ANALYSIS Ó
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|Hearing Date:August 29, 2014 |Bill No:SB |
| |1159 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: SB 1159Author:Lara
As Amended:August 22, 2014Fiscal: Yes
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.
NOTE : The Assembly amendments are considered as a rewrite of this
bill and this measure has been referred to the Committee pursuant to
Senate Rule 29.10 (d) for consideration. The Committee may, by a
vote of the majority, either: (1) hold the bill, or (2) return the
bill to the Senate floor for consideration of the bill as amended in
the Assembly.
Existing law:
1)Provides that each board under the Department of Consumer Affairs, as
well as the State Bar and Bureau of Real Estate shall, 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 social security number for all others. (Business
and Professions Code (BPC) § 30 (a))
2)Specifies that any licensee who does not provide the federal
identification number or social security number shall be reported by
the licensing board to the Franchise Tax Board and is subject to a
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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 social security number where requested on
the application. (BPC § 30 (c))
4) Requires a licensing board, upon request of the Franchise Tax Board
(FTB), to furnish to the FTB specified information including the
federal employer identification number if the entity is a
partnership, or social security number, for all others. (BPC § 30
(d)) (Revenue and Taxation Code § 19528)
5) Provides that it is the intent of the Legislature to utilize the
social security number 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
Section 17520 of the Family Code and, to that end, the information
furnished pursuant to this section shall be used exclusively for
those purposes. (BPC § 30 (j))
6) Provides that the Department of Child Support Services (Department)
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 Title IV-D of the Social
Security Act. (Family Code (FC) § 17520 (a) (3))
7) Provides that the Department shall provide the certified list to
each board that is responsible for the regulation of licenses, as
specified, and that all boards shall collect social security
numbers 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 child support services.
(FC § 17520 (d))
8) Requires that promptly after receiving the certified list from the
Department, 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 the Department and provides that the
board shall have the authority to withhold issuance or renewal of
the license of any applicant on the list.
(FC § 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
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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. (Revenue and Tax Code (RTC) § 19528)
10)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))
11)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))
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 that any applicant failing to provide the federal employer
identification number or the federal taxpayer identification number
or social security number, if one has been issued to the
individual, to be reported by the licensing board to the FTB and
provides if the applicant fails to provide that information they
shall be subject to a penalty.
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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, or legal admission or documentary evidence requirements
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
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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
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 DCA 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. According to the Author, "Many immigrants come to the
[US] as children and attend California's public elementary and
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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."
The Author states that the "recent amendments, crafted in
consultation with the Department of Consumer Affairs, simply
provide guidance for the boards and ensure that the bill can be
implemented effectively. Specifically, these amendments clarify
that otherwise eligible individuals will not be denied a license
based solely on their immigration status, and provide sufficient
time for successful implementation."
2. Taxpayer Identification Numbers. A Taxpayer Identification Number
(TIN) is an identification number used by the Internal Revenue
Service (IRS) in the administration of tax laws. It is issued by
the Social Security Administration (SSA) or by the IRS. A Social
Security Number is issued by the SSA whereas all other TINs are
issued by the IRS.
The Individual Taxpayer Identification Number, or ITIN, is a tax
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processing number 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 acceptable agent authorized by the IRS.
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 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. FTB and DCSS's Ability to Identify 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.
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5. Arguments in Support. The Los Angeles Area Chamber of Commerce
writes in support, and states: "[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 and states:
"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."
6. 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 State Bar that the applicant has fulfilled
those requirements for admission, as specified.
SB 1822 (Berryhill, Chapter 317, Statutes of 2012) authorized
submission of an individual tax identification number or another
identification number, as determined by the California Architects
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
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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.
SUPPORT AND 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 as of August 29, 2014.
Consultant:Bill Gage and Mark Mendoza