BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 483


                                                                      Page  1





          ASSEMBLY THIRD READING


          AB  
          483 (Patterson)


          As Amended  May 28, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Business &      |14-0  |Bonilla, Jones,     |                      |
          |Professions     |      |Baker, Bloom,       |                      |
          |                |      |Campos, Chang,      |                      |
          |                |      |Dodd, Eggman,       |                      |
          |                |      |Gatto, Holden,      |                      |
          |                |      |Mullin, Ting, Wilk, |                      |
          |                |      |Wood                |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,     |                      |
          |                |      |Bonta, Calderon,    |                      |
          |                |      |Chang, Daly,        |                      |
          |                |      |Eggman, Gallagher,  |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Jones, Quirk,       |                      |
          |                |      |Rendon, Wagner,     |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |








                                                                       AB 483


                                                                      Page  2





          |                |      |                    |                      |
           ------------------------------------------------------------------- 


          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. Specifically, 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)   Osteopathic physician and surgeon;


             d)   Hearing aid dispenser;


             e)   Occupational therapist or occupational therapy assistant;


             f)   Physical therapist;


             g)   Registered veterinary technician;


             h)   Veterinarian;


             i)   Acupuncturist; and,










                                                                       AB 483


                                                                      Page  3





             j)   Architect.


          2)Makes conforming changes. 
          


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)Potential revenue loss to affected boards attributable to lower  
            average initial licensure fees in the range of hundreds of  
            thousands of 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)$120,000 in Information Technology expenditures due to licensing  
            system modifications. (various special funds). 


          COMMENTS:


          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  








                                                                       AB 483


                                                                      Page  4





          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 careers."


          Background.  Many of the boards within the Department of Consumer  
          Affairs (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, rather than renew on the date the  
          license was issued, many boards renew licenses based on birth  
          date, which helps prevent the boards from processing large numbers  
          of applications or renewals at one time.


          Existing License Fee Pro Rata Formulas.  Currently, there are  
          three boards that use an initial license fee pro rata formula. The  
          California Board of Psychology (BOP) and the Veterinary Medical  
          Board (VMB) are required by statute to establish a birth date  
          renewal program that includes a pro rata formula for the payment  
          of fees.  The California Architects Board (CAB) voluntarily  








                                                                       AB 483


                                                                      Page  5





          established a pro rata formula through regulation. 


          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  
          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. 


          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.




          Analysis Prepared by:                                               
                          Vincent Chee / B. & P. / (916) 319-3301  FN:  
          0000806














                                                                       AB 483


                                                                      Page  6