BILL ANALYSIS Ó
AB 483
Page 1
Date of Hearing: April 21, 2015
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Susan Bonilla, Chair
AB 483
(Patterson) - As Amended April 9, 2015
SUBJECT: Healing arts: initial license fees: proration.
SUMMARY: Requires that the fees for an initial license, an
initial temporary or permanent license, an original license, or
a renewal for specified regulatory entities, be prorated on a
monthly basis.
EXISTING LAW:
1)Provides for the regulation and licensure of various
professions and vocations by boards within the Department of
Consumer Affairs (DCA). (Business and Professions Code (BPC)
§§ 100-11506)
2)Establishes fees for initial licenses, initial temporary and
permanent licenses, and original licenses for various
professions and vocations, as follows:
a) Requires the Dental Board of California (DBC) to
establish the charges and fees for dentists and prohibits
the initial license fee and the renewal fee from exceeding
five hundred twenty-five dollars ($525). (BPC §1724)
b) Requires the Dental Hygiene Committee of California to
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establish licensing fees for dental hygienists, prohibits
the initial license fee from exceeding two hundred fifty
dollars ($250), and provides that a dental hygienist
license, unless specifically excepted, expires at 12
midnight on the last day of the month of the legal birth
date of the licensee during the second year of a two-year
term, if not renewed. (BPC §§ 1935, 1944)
c) Requires the Medical Board of California (MBC) to
establish the application and license fee for a physician
and surgeon, prohibits the initial license fee and the
biennial renewal fee from exceeding seven hundred ninety
dollars ($790), and provides that all physician and
surgeon's certificates expire at 12 midnight on the last
day of the birth month of the licensee during the second
year of a two-year term, if not renewed, and requires the
Division of Licensing to establish regulatory procedures
for the administration of a birth date renewal program.
(BPC §§ 2423, 2435, 2456.1)
d) Prohibits the initial temporary license fee and the fee
for renewal of a temporary license for hearing aid
dispenser licensees from exceeding one hundred dollars
($100) and the initial permanent license fee and the fee
for renewal of a permanent license from exceeding two
hundred eighty dollars ($280), and provides that all
licenses expire at 12 midnight of the last date of the
birth month of the licensee during the second year of a
two-year term, if not renewed. (BPC §§ 2535, 2538.57)
e) Requires the California Board of Occupational Therapy
(BOT) to establish the initial license and renewal fee for
an occupational therapist and limits the fee to one hundred
fifty dollars ($150) per year; and provides that any
license is subject to renewal as prescribed by the BOT.
(BPC §§ 2570.10, 2570.16)
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f) Provides that licenses for physical therapists expire at
12 midnight on the last date of the birth month of the
licensee during the second year of a two-year term, if not
renewed, and prohibits the Physical Therapy Board of
California (PTB) from establishing a license fee that
exceeds one hundred fifty dollars ($150). (BPC §§ 2644,
2688)
g) Requires the California Veterinary Medical Board (VMB)
to set an initial license fee for veterinarians not to
exceed five hundred dollars ($500), and to set the initial
fee for veterinary technicians not to exceed three hundred
fifty dollars ($350), except that, if the license is issued
less than one year before the date on which it will expire,
then the fee shall be set by the VMB at not more than one
hundred seventy-five dollars ($175). (BPC §§ 4842.5, 4905)
h) Requires the VMB to establish procedures for the
administration of the birth date renewal program, including
the establishment of a pro rata formula for the payments of
fees, and provides that all licenses and registrations
expire at 12 midnight on the last date of the birth month
of the registrant during the second year of a two-year
term, if not renewed. (BPC § 4900)
i) Provides that the initial license fee for an
acupuncturist not exceed three hundred twenty five dollars
($325), provides that licenses shall expire on the last day
of the birth month of the licensee during the second year
of a two-year term, if not renewed, and requires the
California Acupuncture Board (CAB) to establish and
administer a birth date renewal program. (BPC §§ 4965,
4970)
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j) Requires the California Architecture Board to fix the
initial license fee for an architect that is equal to the
renewal fee in effect at the time the license is issued,
and provides that license shall expire at 12 midnight on
the last day of the birth month of the license holder in
each odd-numbered year following the issuance or renewal of
the license. (BPC §§ 5600, 5604)
THIS BILL:
1)Requires that the fees imposed for an initial license, an
initial temporary or permanent license, an original license,
or a renewal be prorated on a monthly basis for the following
licenses:
a) Dentist;
b) Dental hygienist;
c) Physician and surgeon;
d) Osteopathic physician and surgeon;
e) Hearing aid dispenser;
f) Occupational therapist or occupational therapy
assistant;
g) Physical therapist;
h) Registered veterinary technician;
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i) Veterinarian;
j) Acupuncturist; and,
aa) Architect.
2)Makes other minor and technical changes.
FISCAL EFFECT: Unknown. This bill is keyed fiscal by the
Legislative Counsel.
COMMENTS:
1)Purpose. This bill is author sponsored. According to the
author, "[This bill] will decrease financial burdens on
newly-licensed professionals in our state. Current law in
California states that initial licenses for certain
professions? expire on the last day of a licensee's birth
month on the second year of their second term."
For example, a constituent in my district? was notified that
her brand-new license expired in three weeks, due to her birth
date, and that she had to pay a full $160 renewal fee. This
occurred only a few months after she paid $575 for her state
exam and application and $100 for her initial license.
Various licensing agencies have tried to remedy this issue,
but this piecemeal approach still means that licensees in some
professions pay far more than is appropriate for the duration
of their initial license. [This bill] would standardize
initial licensing fees across state-licensed professions that
follow a birth month renewal policy. [This bill] makes a
common-sense change to a policy that can adversely affect
young professionals who are just starting out in their
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careers."
2)Background. Many of the boards within the DCA have
implemented a birth date renewal program to calculate license
expiration dates. Under the program, a license expires on the
licensee's birth date or on the last day of the licensee's
birth month on the second year of a two-year renewal term.
For many boards, licensees submit applications for licensure
at the same time (e.g. because of the timing of exams). This
causes boards to have a large number of applications for
initial licenses during peak times. As a result, many boards
now renew licenses based on birth date, rather than the date
the license was issued, which helps prevent the boards from
processing large numbers of applications or renewals at one
time. Depending on the board, the initial license period can
vary from a few months up to 24 months, depending on the
applicant's birth month.
Existing License Fee Pro Rata Formulas. Currently, there are
boards that use an initial license fee pro rata formula. The
California Board of Psychology (BOP) and the VMB are required
by statute to establish a birth date renewal program that
includes a pro rata formula for the payment of fees. The CAB
voluntarily established a pro rata formula through regulation.
The BOP was initially included in this bill but requested to
be excluded from this bill because AB 773 (Baker), of this
legislative session, would revise the licensure renewal
program for psychologists to a two-year renewal program based
on application date.
The VMB uses a yearly pro rata formula. For a license that is
valid for less than one year, a licensee pays half the initial
license fee. For a license that is valid between one to two
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years, a licensee pays the full fee.
The CAB has used a formula for an initial license that pro
rates fees on a monthly basis. According to the CAB, its pro
rata formula has been in place for over a decade and continues
to operate well. While there are boards that currently use
pro rata formulas, this bill would create a consistent system
for all the boards.
3)Current Related Legislation. AB 773 (Baker) of the current
legislative session, will change the expiration date of a
psychologist's license from the licensee's birthdate to
two-years after the date of issuance. STATUS: This bill is
pending in the Assembly Appropriations Committee.
4)Prior Related Legislation. AB 1758 (Patterson), would have
required that the fee for an initial temporary or permanent
license or an original license be prorated on a monthly basis.
It was amended in appropriations to authorize a board or
committee to impose an additional fee to cover the reasonable
costs of issuing an initial or original license that expires
in less than 12 months. NOTE: This bill was held in the Senate
Appropriations Committee.
ARGUMENTS IN SUPPORT:
The California Physical Therapy Association writes in support,
"By charging licensees a pro-rated amount of the licensure fee
based on how many month have elapsed between initial license
issuance and their birth date renewal, AB 483 will even the
playing field for licensees in professions that must comply with
the birth month renewal policy."
The Fresno Chamber of Commerce writes in support, "The [BPC]
links license renewals for numerous professions? to birth dates
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instead of license issuance dates. For many professionals, their
license may expire only a few months after they first receive
it, forcing them to spend hundreds of extra dollars."
ARGUMENTS IN OPPOSITION:
None on file.
IMPLEMENTATION ISSUE:
The DCA anticipates that implementing pro rata formulas will
have an impact on BreEZe, the new information technology program
created to assist regulatory boards in licensing and other
pertinent functions. However, the DCA is unsure of what the
impact will be and it is currently looking into the issue.
REGISTERED SUPPORT:
California Physical Therapy Association
Fresno Chamber of Commerce
2 Individuals
REGISTERED OPPOSITION:
AB 483
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None on file.
Analysis Prepared by:Vincent Chee / B. & P. / (916) 319-3301