BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 483


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          483 (Patterson) - As Amended April 9, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the initial license fee for the following  
          licensing categories to be prorated on a monthly basis:  
          dentists, dental hygienists, physicians and surgeons, hearing  
          aid dispensers, occupational therapists, physical therapists,  








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          veterinary technicians, veterinarians, acupuncturists, and  
          architects.
          


          FISCAL EFFECT:





          1)Revenue loss to affected boards attributable to lower average  
            initial licensure fees of at least several hundred thousand  
            dollars annually (various special funds).  This may increase  
            pressure on boards to raise fees.  However, in some cases,  
            fees are already set at their statutory maximums.         

          2)Minor and absorbable costs to affected licensing boards  
            associated with changing cashiering procedures, forms and  
            materials (various special funds).

          3)$140,000 in Information Technology expenditures due to  
            licensing system modifications. (various special funds).
          


          COMMENTS:



          1)Purpose.  This bill requires initial licensing fees for  
            specified healing arts practitioners and architects to be  
            prorated on a monthly basis, to ensure that licensees are  
            charged fees in a fair manner and are not disadvantaged based  
            on their birth month.  This bill is author-sponsored.    

          2)Birth Date Renewal Program.  Many boards and bureaus under  
            Department of Consumer Affairs (DCA) operate a birth date  
            renewal program. Instead of basing license renewals on the  








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            date of issuance of the initial license, which would result in  
            the boards facing the same influx of applications year after  
            year, most boards renew licenses based on birth date, rather  
            than the date the license was issued, which allows the boards  
            to spread out that work throughout the year.  

          3)Related Legislation. AB 773 (Baker), pending on the Assembly  
            Floor, makes psychologist's initial licensure for a 2-year  
            period, with expiration based on licensure date instead of  
            birthdate.

          4)Previous Legislation.  

             a)   AB 1758 (Patterson) of 2014 as introduced was similar to  
               this bill. AB 1758 was amended in this committee to address  
               concerns related to mismatch of initial licensure workload  
               and revenue, and was ultimately held in Senate  
               Appropriations Committee.

             b)   SB 2014 (Machado) of 2002 directed the MBC to prorate  
               its annual licensing fees in cases where the initial  
               licensure period is less than two years, and deleted an  
               obsolete oral examination fee authority.  That bill was  
               held in the Senate Appropriations Committee.

             c)   SB 1045 (Murray) of 2000 would have directed the MBC to  
               prorate its annual licensing fees in cases where the  
               initial licensure period is less than two years.  That bill  
               was held in the Senate.  

             d)   SB 663 (Maddy), Chapter 626, Statutes of 1992,  
               authorized the Veterinary Medical Board (VMB) to adopt  
               regulations for the waiver or refund of initial  
               registration fees if the registration is issued less than  
               45 days before it will expire.

          1)Staff Comments.  As currently drafted, this bill may result in  
            a mismatch between fees and workload.  The fee for initial  
            licensure must support initial licensure workload, such as  








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            initial verification of education and experience, as well as  
            ongoing oversight workload for the period of the license. Some  
            level of proration appears reasonable, but in some cases where  
            the initial licensures will only be in effect for a short  
            period of time, fees prorated on a monthly basis may not be  
            adequate to cover the workload costs of initial licensure.   
            Initial licensure requires a set amount of workload regardless  
            of the length of the license.  The Medical Board for example,  
            charges an application fee in addition to initial licensure  
            fee to cover the costs of establishing a license.  Initial  
            licensure and/or application fees should be adequate to cover  
            the cost of establishing a license.  The author may wish to  
            ensure that is the case for each board when moving to a  
            prorated system. 

          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081