BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2859 (Low) - Professions and vocations: retired category: licenses ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 15, 2016 |Policy Vote: B., P. & E.D. 9 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- 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 ? 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 ? 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. -- END --