BILL ANALYSIS Ó AB 750 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 750 (Low) - As Amended April 16, 2015 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 750 Page 2 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. AB 750 Page 3 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 AB 750 Page 4 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. AB 750 Page 5 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