BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 750


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          750 (Low) - As Amended April 16, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:  


          This bill authorizes any of the boards, bureaus, commissions, or  
          programs (boards) within the Department of Consumer Affairs  
          (DCA) to establish, by regulation, a system for a retired  
          category of licensure for persons who are not actively engaged  








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          in the practice of their profession or vocation. 


          FISCAL EFFECT:


          1)Minor and absorbable costs to the Department of Consumer  
            Affairs (DCA) to update regulations, add license status  
            designations, and update applications. 


          2)DCA had identified the following BreEZe system implementation  
            impacts:


             a)   Negligible state costs for Release 1 boards and bureaus.  
               The requirements of this bill would be addressed under the  
               existing maintenance and operation contract with the  
               project vendor. 


             b)   One-time major state costs, likely in the millions of  
               dollars, resulting from contract delays for Release 2  
               boards and bureaus if this bill is implemented prior to  
               January 1, 2017.  At this stage of the implementation, DCA  
               would likely have to renegotiate the vendor contract and  
               likely trigger a Special Project Report resulting in  
               project delays.  Currently, project delay costs are $1.25  
               million per month for the vendor contract and an additional  
               $500,000 per month in additional state costs associated  
               with the project.


             c)   Negligible state costs for three of the 19 boards and  
               bureaus in Release 3.  Each of the remaining Release 3  
               boards and bureaus will incur costs of $6,500 per license  
               type.










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          COMMENTS:


          1)Purpose.  According to the author, "An occupational license  
            can be sent to 'inactive' for various reasons, including  
            violations and non-renewal. The same is done for those  
            individuals who decided to retire - a troublesome label, as an  
            'inactive' status holds negative connotations and does not  
            appropriately illustrate the decades of service from the  
            license holder. Some licensees disfavor the inactive license  
            designation and would prefer a retired license designation."  
            Because existing law only provides for a system of inactive  
            licenses, many boards have sought legislation that would  
            permit them to also create a retired license category.  By  
            allowing any of the boards, bureaus, commissions, or programs  
            within DCA to establish a system for a retired category of  
            licensure, this bill seeks to provide uniformity to licensing  
            designation at the DCA.


          2)Background.  Existing law permits the boards under the DCA to  
            adopt regulations for issuing inactive licenses.  The law  
            requires that the regulations cover fees, renewal, restoration  
            to active status, and practice restrictions.  In addition,  
            there are 13 boards with the authority to issue retired  
            licenses. This bill would provide the remaining boards with  
            the authority to establish a system for retired category of  
            licensure. 


          3)BreEZe. In 2009, DCA proposed the BreEZe information  
            technology system and the California Department of Technology  
            (CalTech) approved the proposal.   BreEZe was envisioned to  
            replace DCA's out of date Legacy technology system and would  
            provide needed applicant tracking of licensing, renewal,  
            enforcement monitoring and cashiering support for 37 of the 40  
            boards, bureaus, committees and one commission housed within  
            DCA.  The project began in 2011, and BreEZe was launched for  
            ten of the regulatory entities (Release 1) in 2013.  BreEZe is  








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            intended to be launched for another eight entities (Release 2)  
            in March, 2016. 


          4)Related Legislation. AB 1253 (Steinorth), pending in this  
            Committee, will limit the issuance of a license designated as  
            a retired volunteer service to an optometrist who holds a  
            retired license for less than three years and will require the  
            holder of a retired license issued for more than three years  
            to meet certain requirements.  


          5)Prior Legislation. 





             a)   AB 2024 (Bonilla), Chapter 336, Statutes of 2014,  
               authorized the Professional Fiduciaries Bureau to  
               establish, by regulation, a system for a retired category  
               of licensure. 
          


             b)   AB 404 (Eggman), Chapter 339, Statutes of 2013,  
               clarified who qualifies for a retired license by specifying  
               that a license must be either active or inactive, and  
               reduces the timeline to restore a retired license from  
               retired to active status from five to three years.



             c)   SB 1215 (Emmerson), Chapter 359, Statutes of 2012,  
               established a retired license status and a retired license  
               with a volunteer service designation for optometrists.











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             d)   AB 431 (Ma), Chapter 395, Statutes of 2011, authorized  
               the California Board of Accountancy to establish, by  
               regulation, a system for a retired category of licensure.



             e)   SB 2191 (Emmerson), Chapter 548, Statutes of 2010,  
               authorized the Board of Behavioral Sciences to issue a  
               retired license as a marriage and family therapist,  
               educational psychologist, clinical social worker or  
               professional clinical counselor to an applicant who holds a  
               current license or a license eligible for renewal, and  
               established a $40 fee for a retired license.
          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081