BILL ANALYSIS Ó
AB 1939
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Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1939 (Patterson) - As Amended April 12, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Legislative Analyst's Office (LAO) to
conduct a study on whether there are unnecessary occupational
licensing requirements that produce a barrier to labor entry or
labor mobility, with a focus on dislocated workers, service
members, and military spouses, and submit a report to the
Legislature and the Department of Consumer Affairs (DCA) by July
1, 2017. The bill repeals the requirement on January 1, 2021.
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FISCAL EFFECT:
Minor and absorbable costs to the LAO.
COMMENTS:
1)Purpose. According to the author, "This bill is an important
measure that will provide the California State Legislature
with vital information about how some licensing requirements
may pose barriers for people to enter into, or transition into
the labor market. By doing this, we will uphold the intention
of licensing requirements which is to promote quality products
and services, and ensure that these requirements do not make
it more difficult for Californians to work."
2)Legislative Analysist's Office. The LAO has provided fiscal
and policy advice to the Legislature for more than 70 years.
It is known for its fiscal and programmatic expertise and
nonpartisan analyses of the state budget. The office serves as
the "eyes and ears" for the Legislature to ensure that the
executive branch is implementing legislative policy in a cost
efficient and effective manner. The office is overseen by the
Joint Legislative Budget Committee (JLBC), a 16-member
bipartisan committee. Currently, the office has a staff of 43
analysts and approximately 13 support staff. Throughout the
year, the office prepares special reports on the state budget
and topics of interest to the Legislature.
3)Premature? There are existing mechanisms and related efforts
addressing licensing issues. Following is a partial list of
resources on the topic of occupational licensing, including a
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study currently underway by the Little Hoover Commission. The
Committee may wish to consider waiting for the Little Hoover
Commission to complete its work before asking the LAO to
conduct a similar study.
a) Little Hoover Commission Study. The Little Hoover
Commission (Commission) is currently conducting a study on
occupational licensing. The study will partly explore the
impact of occupational licensing on upward mobility for
various groups, as well as the effect on of licensing
regulations on consumers and the economy. The Commission
has held two public hearings on this topic, the first in
Sacramento on February 4, 2016, and the second on March 30,
2016, in Culver City. The Commission is a statutorily
created independent agency that conducts research studies
about state government operations. The Commission makes
official recommendations to the legislative and executive
branches of the state government for improvements.
b) DCA. The DCA oversees 40 regulatory entities which
regulate more than 250 business and professional
categories. These entities establish the minimum
qualifications for licensure, issue licenses, and
investigate and discipline licensees. DCA has several
statutory mechanisms in place to compile licensing data
from the entities. It also has the statutory responsibility
under sunset review to respond to suggestions about
efficiency and make recommendations for improvements in the
licensing process.
c) Related Reports.
The White House released a report in July of 2015,
titled, Occupational Licensing: A Framework for
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Policymakers. The report recommends several best
practices to ensure that licensing protects consumers
without placing unnecessary restrictions on employment,
innovation, or access to important goods and services.
The White House released a report in 2013 entitled,
The Fast Track to Civilian Employment: Streamlining
credentialing and licensing for service members,
veterans, and their spouses. The report finds that many
service members are required to repeat education or
training in order to receive industry certifications and
state occupational licenses, even though much, and in
some cases, all of their military training and experience
overlaps with credential training requirements.
Additionally, frequent moves, and the resulting need to
search for new employment, can be a significant problem
for military spouses, especially when getting a job in a
new state requires obtaining an occupational license.
The report noted that California was one of the states
with several programs in place to assist transitioning
veterans and their spouses with employment opportunities.
Since that report was published, SB 1226 (Correa) Chapter
657, Statutes of 2014, was enacted to require boards and
bureaus to expedite and assist with the initial licensure
process for veterans of active duty in the Armed Forces
of the United States.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
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