BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 179


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          Date of Hearing:  April 28, 2015


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                Susan Bonilla, Chair


          AB 179  
          (Bonilla) - As Amended April 27, 2015


          SUBJECT:  Healing arts.


          SUMMARY:  Extends the operations of the Dental Board of  
          California (Board) until January 1, 2020; increases statutory  
          fee caps for all categories relating to dentists and dental  
          assistants; eliminates the practical examination for registered  
          dental assistants (RDAs), as specified.  Extends the operation  
          of the Board of Vocational Nursing and Psychiatric Technicians  
          (BVNPT) until January 1, 2018, and merges the Vocational Nursing  
          fund and the Psychiatric Technician funds, as specified.   


          EXISTING LAW:


          1)Establishes the Dental Practice Act (Act), administered by the  
            Dental Board of California (DBC) within the Department of  
            Consumer Affairs (DCA), to license and regulate the practice  
            of dentistry, and sunsets the DBC on January 1, 2016.   
            (Business and Professions Code (BPC) Section 1600, et seq.) 


          2)Establishes the Dental Assisting Council (DAC) of the DBC,  
            which shall consider all matters relating to dental assistants  
            in this state, on its own initiative or upon the request of  








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            the Board, and makes appropriate recommendations to the Board  
            and the standing committees of the Board, as specified.  


          3)Requires the DBC to establish, as necessary, the amount of  
            charges and fees for licensure for the purpose of carrying out  
            its responsibilities under the Act, subject to statutory fee  
            caps.  (BPC Section 1724)


          4)Requires the amount of the fees prescribed by this chapter  
            that relate to the licensing and permitting of dental  
            assistants to be established by regulation and subject to  
            statutory fee caps.  (BPC Section 1725)  


          5)Requires for licensure as a registered dental assistant  
            satisfactory performance on a written and practical  
            examination administered by the DBC.  (BPC Section 1752.1)


          6)Provides that a healing arts practitioner who engages in  
            sexual relations with a patient, client, or customer  
            constitutes unprofessional conduct and grounds for  
            disciplinary action, except as specified.  (BPC Section 726)


          7)Establishes the Board of Vocational Nursing and Psychiatric  
            Technicians (BVNPT) within the DCA, to license and regulate  
            vocational nurses under the Vocational Nursing Practice Act,  
            and to license and regulate psychiatric technicians under the  
            Psychiatric Technicians Law, and extends the operation of the  
            BVNPT until January 1, 2016.  (BPC Sections 2840 et seq., 4500  
            et seq.)


          8)Establishes the Vocational Nursing and Psychiatric Technicians  
            Fund.  (BPC Section 2890)









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          9)Establishes the Vocational Nursing Account and the Psychiatric  
            Technician Examiners Account of the Vocational Nursing and  
            Psychiatric Technician Fund.  (BPC Section 205)


          THIS BILL:


          10) Extends the operation of the DBC until January 1, 2020.
          11)Authorizes the DBC to increase specified fees for dentists  
            and RDAs, as specified.   


          12)Eliminates the practical examination for licensure as an RDA,  
            and requires the DBC to, in consultation with the Office of  
            Professional Examination Services, to conduct a review to  
            determine whether a practical examination is necessary to  
            demonstrate the competency of registered dental assistants.   
            The board's review and certification or determination shall be  
            completed by January 1, 2017.  


          13)Provides that if the DBC determines that the practical  
            examination is necessary to demonstrate competency of  
            registered dental assistants, the DBC's review and  
            certification or determination shall be completed and  
            submitted to the appropriate policy committees of the  
            Legislature, and the board may administer, and require, a  
            practical examination for licensure as a registered dental  
            assistant, in accordance with Section 139.  


          14)Extends the operation of the BVNPT until January 1, 2018. 


          15)Merges the funds of the BVNPT, as specified. 










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          16)Makes conforming changes.  


          FISCAL EFFECT:  Unknown.  This bill is keyed fiscal by the  
          Legislative Counsel.  


          COMMENTS:


          17)Purpose.  This bill is author sponsored.  According to the  
            author, "This bill is necessary to ensure that consumers are  
            protected by the continued operation of the DBC.  The Board's  
            sunset bill raised numerous issues, including the adequacy of  
            the Dentistry Fund condition and the practical examination for  
            registered dental assistants.  The DBC has been operating with  
            a major structural deficit, and is faced with impending  
            deficits.  Prior to recent increases to its initial and  
            renewal licensure fees, the DBC had not raised fees for nearly  
            two decades.  A recent audit of the DBC's finances shows that  
            the cost for licensure and permitting categories do not  
            sufficiently cover the cost for that license or permit.  As a  
            result, this bill proposes to increase statutory fee caps  
            across all categories to let the DBC begin to recover its  
            costs, help solve its structural imbalance, and build a  
            healthy reserve.  These fee caps are intended to carry the DBC  
            over for many years, and any actual increase in fees would  
            need to go through the regulatory process, thereby ensuring  
            that licensees may voice any concerns to potential increases.
          After the DBC recalibrated the practical examination for  
            registered dental assistants last August, there was an  
            alarming decline in passage rates.  In addition to the human  
            costs of placing undue hardship on examinees who are now  
            unable to find work or have lost work due to failing the exam,  
            and the impact on our healthcare workforce, the steep decline  
            questions the validity of the examination and its ability to  
            accurately measure a licensee's competency.  This bill imposes  
            a moratorium on RDA practical examinations until the Board can  
            properly evaluate the examination.  RDAs would continue to  








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            meet other requirements, such as completing an education  
            program, obtaining on the job experience as certified by a  
            supervising dentist, or a combination or both, in addition to  
            passing the written examination, thereby ensuring that  
            consumers will continue to be protected.


          In addition, on February 13, 2012, the BVNPT approved a merger  
            of the vocational nursing fund and the psychiatric technician  
            fund as an alternative to a statutory amendment to raising  
            fees for the psychiatric technician fees.  This bill would  
            advance the fiscal solvency of the BNVPT by merging these  
            funds.  The bill will also increase accountability by  
            extending the BVNPT's sunset date only until January 1, 2018,  
            thereby increasing legislative oversight of the BVNPT in light  
            of the significant issues raised in the BVNPT's sunset  
            background paper."    


          18)Background.  The DBC was created by the California  
            Legislature in 1885, to regulate dentists.  Today, the DBC  
            regulates the practice of approximately 86,000 licensed dental  
            healthcare professionals in California, including 40,163  
            dentists; 44,230 registered dental assistants (RDAs); and  
            1,545 registered dental assistants in extended functions  
            (RDAEFs).  In addition, the DBC is responsible for setting the  
            duties and functions of approximately 50,000 unlicensed dental  
            assistants.  


          The BVNPT is responsible for administering the laws related to  
            the education, practice and discipline of Licensed Vocational  
            Nurses (LVNs) and Psychiatric Technicians (PTs).  The LVN  
            program was established in 1951 and the PT program was  
            established in 1959.  The PT Certification Program was placed  
            under this Board's jurisdiction due to the unique mental  
            health and nursing care functions performed by PTs.  The BVNPT  
            oversees two distinct licensure programs, each with separate  
            statutes, regulations, budget authority, curriculum  








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            requirements, examinations, and staff.  Specifically, the  
            BVNPT regulates the practice of approximately 129,515 LVNs and  
            13,469 PTs, the largest groups of LVNs and PTs in the nation.   
             


          Sunset Review.  On March 23rd, 2015, the Assembly Business and  
            Professions Committee and the Senate Business, Professions,  
            and Economic Development Committee held a "sunset review"  
            hearing for the DBC and the BVNPT.  As part of the Sunset  
            Review, the DBC and the BVNPT each prepared a sunset report,  
            which was submitted to the Committees and Committee staff  
            prepared a background paper on each board.    


          A "sunset review" is a performance review of a state agency by  
            the Legislature aimed at determining whether that agency  
            should continue to exist, and if so, whether any statutory  
            reforms are needed to increase the agency's effectiveness.   
            Sunset review is triggered by the statutory expiration date  
            for the agency, which is commonly called a "sunset."  Without  
            an extension of this sunset date, the Board would cease to  
            exist. 


          Review of Dental Board Issues Addressed in this Bill.  The  
            Committees raised a number of issues relating to the DBC, and  
            this bill addresses a number of issues through statutory  
            changes.  The following are some of the major issues  
            pertaining to the DBC as reviewed and discussed by the  
            Committees, along with background information concerning each  
            particular issue and recommendations made by Committee staff  
            regarding the particular issues or problem areas which needed  
            to be addressed.


          DBC Issue #1: Email addresses.  










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          Background: The staff background report for the DBC identified  
            as an issue whether the Board should be authorized to collect  
            email addresses for its licensees.  According to the DBC, in  
            order to improve its ability to communicate with licensees,  
            the DBC will be pursuing statutory authority to allow it to  
            require email addresses on its applications and renewal forms.  
             Web-based communications will also reduce postage costs and  
            provide a cost savings.  


          Recommendation: The DBC should advise the Committees of any  
            statutory changes necessary to enable the DBC to collect email  
            addresses and to use email as a way to communicate with  
            licensees and applicants.  


          [This bill would authorize the DBC to collect email addresses.]   



          DBC Issue #5: Dental Fund Condition.  


          Background:  The Dentistry Fund is maintained by the DBC and  
            includes the revenues and expenditures related to licensing  
            for dentists.  For sixteen years, the license fee for dentists  
            was set at $365.  In 2013, for the first time in 16 years, the  
            DBC increased its license fee for dentists from $365 to its  
            statutory cap at the time of $450.  These regulations went  
            into effect on July 1, 2014.  During that time, the DBC also  
            pursued an increase in statute from $450 to $525.  SB 1416  
            (Block) Chapter 73, Statutes of 2014, raised the DBC's fee for  
            initial and renewal licenses for dentists from $450 to $525,  
            and set fees at that level.  During that time, an analysis  
            conducted by the DCA's Budget Office determined that the  
            license fees should be raised to $525 to ensure solvency into  
            the foreseeable future.  While fees increased have generated  
            additional revenue, the DBC's expenditures, projected to be  
            over $12M per year, continue to outpace its revenue, projected  








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            to be less than $11M per year, thus perpetuating a structural  
            imbalance.  Part of the reason for the increase in projected  
            and actual expenditures in recent years has been due to  
            funding 12.5 CPEI positions; funding the diversion program;  
            increased expenses associated with BreEZe; unexpected  
            litigation expenses; and the general increase in the cost of  
            doing business over the past 16 years.  While the DBC has  
            expended less than what it has been authorized by the budget  
            due to some cost savings and reimbursements, the DBC  
            emphasizes that its fund should be able to sustain  
            expenditures without relying on estimated savings or  
            reimbursements.  


          Based on data from the past five fiscal years, the DBC  
            calculated that the Dentistry Fund will be able to sustain  
            expenditures into FY 2017/18 before facing a deficit.  The DBC  
            projects it will only have 0.5 months in reserve in FY  
            2016/17, and is undergoing a fee rate audit to determine the  
            appropriate fee amounts to assess and to project fee levels  
            into the future.  The fee audit will also take into account  
            the funds necessary to establish a reserve of four to six  
            months for economic uncertainties and unanticipated expenses,  
            such as legislative mandates and the DCA costs.  In addition,  
            while the Dental Assisting Program has its own staff for  
            Licensing and Examination, paid for by its fund, the rest of  
            the functions relating to dental assisting, such as  
            administration and enforcement, are performed by Board staff  
            and paid for by the Dentistry Fund.  As a result, the fee  
            audit will examine the appropriate fees and costs for the  
            Dental Assisting Fund, which currently does not pay the  
            Dentistry Fund for any costs associated with administration or  
            enforcement and has a very large reserve.  After the results  
            of the fee audit come out, the Board anticipates requesting an  
            increase in the statutory fee caps, so that going forward, the  
            Board may raise fees incrementally and within the cap, as  
            necessary, to ensure a healthy budget.  The fee audit will be  
            available shortly.   









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          Recommendation: The DBC should share the fee audit with the  
            Committees as soon as that information is available to  
            determine the appropriate fee caps for licensees.  The DBC  
            should consider whether it is feasible or preferable to merge  
            the Dentistry and Dental Assisting, and to share all staff and  
            costs.  If the DBC determines that funds should remain  
            separate, the DBC should ensure that the Dental Assisting Fund  
            reimburses the Dentistry Fund for any costs incurred. 


          [The DBC has shared its recent fee audit, which discovered that  
            in addition to the DBC's operational imbalance, it is limited  
            in its ability to recover the true cost of licensure and  
            regulation for dentists and dental assistants based on many of  
            the set fees, which do not cover the actual costs.  In light  
            of this fee audit, the DBC is requesting an increase in all  
            statutory fee caps relating to dentists and dental assistants,  
            including, but not limited to, those fees relating to  
            licensure, permits, and examinations. 





               -------------------------------------------------------- 
              |     License,     |Current |Statutor|        |          |
              |  Certificate or  |  Fee   |y Limit |        |          |
              |      Permit      |  Amt.  |        |        | Proposed |
              |                  |        |        | Actual | Fee Cap  |
              |                  |        |        |  Cost  |          |
              |                  |        |        |per Fee |          |
              |                  |        |        | Audit  |          |
              |------------------+--------+--------+--------+----------|
              |Elective Facial   |  500.00|  500.00|        |          |
              |Cosmetic Surgery  |        |        |        |          |
              |Permit-Initial    |        |        |  $3,627|    $4,000|
              |Appl              |        |        |        |          |
              |------------------+--------+--------+--------+----------|








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              |Initial DDS       |  525.00|  525.00|        |          |
              |License           |        |        |    $288|    $1,200|
              |(pro-rated fee)   |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |DDS Biennial      |  525.00|  525.00|    $405|    $1,200|
              |Renewal           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Oral  &           |  450.00|  450.00|        |          |
              |Maxillofacial     |        |        |    $849|    $1,200|
              |Surgery Permit    |        |        |        |          |
              |Renewal           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Fictitious Name   |  450.00|  Not > |        |          |
              |Permit Initial    |        |   $450 |    $570|    $1,200|
              |Application       |        | or < $5|        |          |
              |------------------+--------+--------+--------+----------|
              |Special           |  300.00|  300.00|        |          |
              |Permit-Initial    |        |        |  $1,183|$1,000    |
              |Appl.             |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |License by        |  283.00|    0.00|        |          |
              |Credential Appl.  |        |        |    $789|$1,000    |
              |------------------+--------+--------+--------+----------|
              |License by        |  100.00|        |    $876|    $1,000|
              |Residency         |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |License by        |  350.00|  350.00|  $1,638|    $1,500|
              |Portfolio         |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Initial WREB      |  100.00|  500.00|    $745|    $1,000|
              |Appl.             |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Registered        |  250.00|  250.00|        |          |
              |Provider-Initial  |        |        |        |          |
              |Appl.(continuing  |        |        |    $827|      $500|
              |education)        |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Onsite Inspection |  250.00|  350.00|        |          |
              |Fee for GA/CS     |        |        |  $3,982|    $4,500|








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              |Permits           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Fictitious Name   |  225.00|  Not > |        |          |
              |Permit Renewal    |        |$450 Or |    $136|      $600|
              |                  |        |    < $5|        |          |
              |------------------+--------+--------+--------+----------|
              |Conscious         |  200.00|  250.00|        |          |
              |Sedation Permit   |        |        |    $716|    $1,000|
              |Initial           |        |        |        |          |
              |Application       |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Conscious         |  200.00|  250.00|        |          |
              |Sedation Permit   |        |        |    $237|      $600|
              |Renewal           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |General           |  200.00|  250.00|        |          |
              |Anesthesia Permit |        |        |    $716|    $1,000|
              |Initial           |        |        |        |          |
              |Application       |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |General           |  200.00|  250.00|        |          |
              |Anesthesia Permit |        |        |    $237|      $600|
              |Renewal           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Oral Conscious    |  200.00|Admin/En|        |          |
              |Sedation Initial  |        | f Costs|    $368|    $1,000|
              |Certificate       |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Elective Facial   |        |        |        |          |
              |Cosmetic Surgery  |  200.00|  200.00|    $368|      $800|
              |Permit Renewal    |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Oral &            |  150.00|  500.00|        |          |
              |Maxillofacial     |        |        |        |          |
              |Surgery           |        |        |    $849|    $1,000|
              |Permit-Initial    |        |        |        |          |
              |Appl.             |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Additional Office |  100.00|  200.00|        |          |








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              |Permit Initial    |        |        |    $437|      $750|
              |Application       |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Special Permit    |  100.00|  100.00|    $247|      $600|
              |Renewal           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Additional Office |  100.00|  100.00|        |          |
              |Permit Renewal    |        |        |    $136|      $375|
              |------------------+--------+--------+--------+----------|
              |Oral Conscious    |   75.00|Admin/En|        |          |
              |Sedation          |        | f Costs|    $136|$600      |
                                                                     |Certificate       |        |        |        |          |
              |Renewal           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |License           |    2.00|    2.00|    $364|$125      |
              |Certification     |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |     RDA Fees     |Current |Statutor|        |          |
              |                  |  Fee   |y Limit |        |          |
              |                  | Amount |        |        | Proposed |
              |                  |        |        | Actual | Fee Cap  |
              |                  |        |        |  Cost  |          |
              |                  |        |        |per Fee |          |
              |                  |        |        | Audit  |          |
              |------------------+--------+--------+--------+----------|
              |RDAEF Program     | 1400.00|1400.00 |        |          |
              |Curriculum        |        |        |  $7,486|    $7,500|
              |------------------+--------+--------+--------+----------|
              |RDA Program       | 1400.00|1400.00 |        |          |
              |Curriculum        |        |        |  $7,486|    $7,500|
              |------------------+--------+--------+--------+----------|
              |OA Permit Course  |  300.00|300.00  |        |          |
              |Approval          |        |        |  $3,168|    $2,000|
              |------------------+--------+--------+--------+----------|
              |DSA Permit Course |  300.00|300.00  |        |          |
              |Approval          |        |        |  $3,168|    $2,000|
              |------------------+--------+--------+--------+----------|
              |Infection Control |  300.00|300.00  |        |          |
              |Course Approval   |        |        |  $2,866|    $2,000|








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              |------------------+--------+--------+--------+----------|
              |Coronal Polish    |  300.00|300.00  |        |          |
              |Course Approval   |        |        |  $2,866|    $2,000|
              |------------------+--------+--------+--------+----------|
              |Pit and Fissure   |  300.00|300.00  |        |          |
              |Course Approval   |        |        |  $2,977|    $2,000|
              |------------------+--------+--------+--------+----------|
              |Radiation Safety  |  300.00|300.00  |        |          |
              |Course Approval   |        |        |  $2,977|    $2,000|
              |------------------+--------+--------+--------+----------|
              |RDA Biennial      |   70.00| 80.00  |     $50|      $200|
              |Renewal           |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |RDAEF Biennial    |   70.00| 80.00  |        |          |
              |Renewal           |        |        |     $50|      $200|
              |------------------+--------+--------+--------+----------|
              |Dental Sedation   |   70.00| 80.00  |        |          |
              |Assistant Permit  |        |        |     $50|      $200|
              |Biennial Renewal  |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |Orthodontic       |   70.00| 80.00  |        |          |
              |Assistant Permit  |        |        |     $50|      $200|
              |Biennial Renewal  |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |RDA Practical     |   60.00| 60.00  |        |          |
              |Exam Fee          |        |        |    $355|   Actual |
              |                  |        |        |        |      cost|
              |------------------+--------+--------+--------+----------|
              |Duplicate License |   25.00| 25.00  |        |          |
              |or Permit Fee     |        |        |     $63|      $100|
              |------------------+--------+--------+--------+----------|
              |RDA Application   |   20.00| 50.00  |     $72|      $200|
              |Fee               |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |RDAEF Application |   20.00| 50.00  |     $87|      $200|
              |Fee               |        |        |        |          |
              |------------------+--------+--------+--------+----------|
              |RDAEF2            |   20.00| 50.00  |     $87|$200      |
              |Application Fee   |        |        |        |          |








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               -------------------------------------------------------- 



          While some of these fee increases are dramatic, they reflect the  
            fact that many of these fee caps have not been raised in  
            nearly up to two decades.  The DBC's intent is for this large  
            increase in statutory fee caps to cover its potential need to  
            increase fees over a period of many years, including beyond  
            the next sunset period.  The DBC would have to raise any fees  
            through the regulatory process, however, ensuring that there  
            will be additional time and robust opportunity for public  
            participation prior to the increase of any fee.]  


          DBC Issues #7: The RDA Examination.   


          Background:  The pass rates for the RDA Practical Exam averaged  
            roughly 83% over the past four fiscal years.  However, in  
            2014, pass rates dropped dramatically.  Passage rates declined  
            from an over 80% average to a 38% pass rate in August 2014,  
            19% in November 2014, to 33% in February 2015.  The sharp  
            declines occurred after the practical examinations were  
            recalibrated, as discussed above.  In addition, recent  
            examination scores from the February 2015 examination indicate  
            that these rates continue to be very low.   Currently, the DBC  
            is pursuing an occupational analysis (OA) to validate the  
            practical exam.  The last OA was conducted in 2009.  BPC § 139  
            specifies that the Legislature finds and declares that OA and  
            examination validation studies are fundamental components of  
            licensure programs and the DCA is responsible for the  
            development of a policy regarding examination development and  
            validation, and occupational analysis. Licensure examinations  
            with substantial validity evidence are essential in preventing  
            unqualified individuals from obtaining a professional license.  
            To that end, licensure examinations must be developed  
            following an examination outline that is based on a current  
            occupational analysis; regularly evaluated; updated when tasks  








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            performed or prerequisite knowledge in a profession or on a  
            job change, or to prevent overexposure of test questions; and  
            reported annually to the Legislature.  According to the DCA's  
            policy, an occupational analysis and examination outline  
            should be updated at least every five years to be considered  
            current.  Such an OA is projected to be $60,000 and could take  
            up to a year to complete.  Board staff notes that the cost  
            would be absorbable by the Dental Assisting budget. 


          Recommendation:  The DBC should explain to the Committees why it  
            recalibrated the RDA examination, and the decline in pass  
            rates after the practical examination was recalibrated.  The  
            DBC should undertake the OA, and consider whether a practical  
            examination is the most effective way to demonstrate minimal  
            competency for those licensees.  The DBC should continue to  
            monitor examination passage rates, and pursue any legislative  
            changes necessary to reflect current practices as determined  
            by the OA.    


          [Based on the precipitous decline in examination scores, which  
            questions the validity of the examination and the ability of  
            the examination to truly measure competency, this bill would  
            eliminate the practical examination until the DBC is able to  
            conduct an occupational analysis and examine its validity and  
            determine whether an examination is necessary to demonstrate  
            competency.  Applicants for licensure would still need to meet  
            all other existing requirements for licensure, including  
            passing the written examination.]


          DBC Issue #10: Unprofessional Conduct.  


          Background: BPC § 726 prohibits, "The commission of any act of  
            sexual abuse, misconduct, or relations with a patient, client,  
            or customer constitutes unprofessional conduct and grounds for  
            disciplinary action" for any healing arts professional.  BPC §  








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            726 exempts sexual contact between a physician and surgeon and  
            his or her spouse, or person in an equivalent domestic  
            relationship, when providing non-psychotherapeutic medical  
            treatment.  SB 544 (Price, 2012) would have, among other  
            things, amended BPC § 726 to provide an exemption for all  
            licensees who provide non-psychotherapeutic medical treatment  
            to spouses or persons in equivalent domestic relationships,  
            instead of only exempting physicians and surgeons.  This bill  
            was held in the Senate Business, Professions and Economic  
            Development Committee.  The California Dental Association  
            (CDA) and the California Academy of General Dentistry (CAGD)  
            have both requested amending this section to also exempt  
            dentists who are treating their spouses or person in an  
            equivalent domestic relationship.       


          Recommendation:  The Committees should consider whether  
            exempting dentists maintains the spirit of the law and  
            determine whether additional conditions are necessary to  
            ensure that spouses and domestic partners are protected.  


          [This bill will extend the exemption to all healing arts  
            licensees who do not provide psychotherapeutic medical  
            treatment to spouses or persons in equivalent domestic  
            relationships.] 


          DBC Issue #18:  Continued Regulation by the DBC.   


          Background:  The health, safety and welfare of consumers are  
            protected by the presence of a strong licensing and regulatory  
            DBC with oversight over the dental profession.  The Board  
            should be continued with a four-year extension of its sunset  
            date so that the Legislature may once again review whether the  
            issues and recommendations in this Background Paper have been  
            addressed.









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          Recommendation:  Recommend that the licensing and regulation of  
            the dental profession continue to be regulated by the current  
            Board members in order to protect the interests of the public  
            and be reviewed again in four years.


          [This bill will extend the sunset date for the Board from  
            January 1, 2016, to January 1, 2020.] 


          Review of Key BVNPT Issues Addressed in this Bill.  The  
            Committees raised a number of issues relating to the BVNPT,  
            and this bill addresses a number of issues through statutory  
            changes.  The following are some of the major issues  
            pertaining to the BVNPT as reviewed and discussed by the  
            Committees, along with background information concerning each  
            particular issue and recommendations made by Committee staff  
            regarding the particular issues or problem areas which needed  
            to be addressed.


             BVNPT Issue #4: Fund Merger. 


          Background: Both the LVN and PT programs are at the statutory  
            maximums for the fees they charge licensees. In July of 2012,  
            the Board submitted a Budget Change Proposal (BCP) requesting  
            the merger of the LVN and PT funds. The BCP was denied as the  
            PTs fund condition was expected to remain solvent through FY  
            2015/16.  The Board was advised to seek a statutory proposal  
            to merge the funds versus a BCP. 


          According to the Board, current budget projections indicate that  
            the LVN program fund reserve will remain solvent past FY  
            2020/21.  The PTs program fund reserve will be exhausted by  
            2017/18. On February 13, 2012, the Board approved a merger of  
            the funds as an alternative to a statutory amendment to raise  








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            the PTs fee ranges. The Board has been advised by the DCA  
            Budget Office that the merger would delay a deficit and the  
            need to increase fees for three to four years. 


          Recommendation: The Committees should consider if the LVN and PT  
            funds should be merged. The Board should provide more detailed  
            statistics of how the merger will impact both licensing groups  
            e.g. how will funds be allocated for each licensing group?  If  
            the Committees agree to merge the funds, a statutory change  
            will be necessary.


             [This bill will merge the LVN and PT funds.]








            BVNPT Issue #11:  Continued Regulation by the BVNPT.


          Background:  A review of the issues raised during the last  
            review of the Board in 2011 reveals that the Board has made  
            some strides towards meaningful change. However, the  
            outstanding issues also reveal that the Board has experienced  
            some significant problems that have impacted its overall  
            functioning, the oversight of licensees and protection of the  
            public. As highlighted above, the Board has shown deficiencies  
            and discrepancies in the areas of enforcement and management  
            of funds. Due to these continuing problems as well as  
            potential issues concerning the management and operations of  
            the Board, it appears that this Board requires additional  
            oversight and direction. 










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          Recommendation: Recommend that the licensed vocational nursing  
            and psychiatric technician professions continue to be  
            regulated by the current Board in order to protect the  
            interests of the public and be reviewed once again in two  
            years. In addition, the Board should undergo an audit,  
            investigation by the DOI and involvement of an enforcement  
            monitor. The Board should update the appropriate policy  
            committees of the Legislature in two years of their  
            improvements in the following critical areas: 1) enforcement,  
            2) management, 3) staff and 4) funding.  


          [This bill will extend the BVNPT's sunset date to January 1,  
            2018.  In addition, AB 178 will address additional issues  
            pursuant to the Committees' recommendations.] 


          ARGUMENTS IN SUPPORT: 


          None on file. 


          ARGUMENTS IN OPPOSITION:


          None on file. 


          AMENDMENTS:


          While any fee increase would have to be adopted by the DBC  
          through regulations, thereby ensuring that there will be  
          sufficient consideration of the need for a fee increase and  
          public participation during that process, the author seeks to  
          ensure that there are some appropriate restraints to limit the  
          amount that fees may be increased.  As a result, the author  
          seeks to make the following changes: 








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          In subdivision (d) of Section 1724, strike "$1200" throughout  
          and insert "$650" and add,  Effective January 1, 2018, the fee  
          for an initial license shall not exceed $800, and the fee for  
          the renewal of a license shall not exceed $800  .


          The validity of the RDA examination has seriously been  
          questioned by the recent decline in passage rates.  As a result,  
          it is essential to place a temporary moratorium on these  
          examinations until the DBC can conduct an occupational analysis  
          to determine whether the practical examination is an accurate  
          measure of competency, and whether it is a valid examination.   
          To prevent undue hardships on applicants who are required to  
          take this examination for licensure until the effective date of  
          this bill, and to ensure an adequate dental health care  
          workforce, the author should pursue this measure in a separate  
          bill with an urgency clause that would allow this provision to  
          become operative immediately.


          Strike Sections 13 and 14 from the bill, inclusive.       


          REGISTERED SUPPORT:  


          None on file. 




          REGISTERED OPPOSITION:  
          None on file. 












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          Analysis Prepared by:Eunie Linden / B. & P. / (916) 319-3301