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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