BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2859 (Low) - Professions and vocations: retired category:
licenses
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|Version: June 15, 2016 |Policy Vote: B., P. & E.D. 9 - |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 2859 would authorize any board, bureau, or other
licensing entity within the Department of Consumer Affairs to
establish a retired license category.
Fiscal
Impact: There are 25 boards, bureaus, and other licensing
entities within the Department of Consumer Affairs that
currently do not have a retired license category. For any of
those entities that chose to create a retired license category,
the following costs are likely to occur:
Minor one-time costs to adopt regulations establishing a
retired license category (various special funds).
One-time costs between $15,000 and $75,000 to make changes to
the licensing system to accommodate a new retired license
AB 2859 (Low) Page 1 of
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category (various special funds). The potential cost to update
information technology systems used to process license
applications and renewals will depend both on the size of the
board's license population and whether or not the board is
using the BreEze licensing system or an internal licensing
system.
Minor revenue losses due to individuals with active licenses
shifting to a retired license (various special funds).
Currently, there are indications that individual licensees who
are effectively retired continue to renew their active license
because shifting to an inactive license or allowing their
active license to lapse implies that the licensee may have
been subject to some kind of disciplinary action. Therefore,
there are likely to be licensees who give up their active
license (which requires a biennial renewal with a fee) and
apply for a retired license (which is likely to be accompanied
by a one-time fee). There are 15 boards within the Department
of Consumer Affairs that currently have a retired license
category. The ratio of retired licensees to active licensees
for those boards is small (typically less than 1%). Therefore
it is likely that the number of licensees who would give up an
active license for a retired license would be fairly small as
would be any resulting revenue loss. There would also be some
revenue loss from individuals giving up an inactive license
(who are not inactive due to disciplinary action) in exchange
for a retired license.
To the extent that licensees shift to a retired license that
does not require renewal and are not engaged in the practice
of their profession, the impacted board is likely to see a
commensurate reduction in licensing and enforcement activity.
Background: Under current law, 40 boards, bureaus, committees, and other
entities within the Department of Consumer Affairs license and
regulate various professions and vocations. Currently, 15 of
those entities are authorized in law to establish a retired
license category. If an entity does not have a retired license
category, licensees who are no longer practicing their
profession can maintain an active license, shift to an inactive
license, or allow their active license to lapse.
AB 2859 (Low) Page 2 of
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Proposed Law:
AB 2859 would authorize any board, bureau, or other licensing
entity within the Department of Consumer Affairs to establish a
retired license category.
Specific provisions of the bill would:
Authorize any of the boards within the Department of Consumer
Affairs to establish, by regulation, a retired license
category for individuals who are not actively engaged in their
profession or vocation. (Under current law, the term "board"
refers to several types of licensing entities within the
Department.);
Place requirements on the issuance of a retired license and
the requirements for the restoration of an active license by a
retired license holder;
Authorize a board on its own determination, or require the
board upon a complaint, to investigate the actions of a
licensee, including a retired licensee;
Specify that the bill's provisions do not apply to a board
that has other statutory authority to establish a retired
license.
Related
Legislation: SB 1194 (Hill) would authorize the Board of
Psychology to establish a retired license. That bill is pending
in the Assembly.
Recommended
Amendments: Staff recommends the bill be clarified to
explicitly authorize any board implementing a retired license
category to impose a fee for the issuance of that license.
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