BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2859


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2859 (Low)


          As Amended  August 3, 2016


          Majority vote


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          Original Committee Reference:  B. & P.


          SUMMARY:  Authorizes any of the boards, within the Department of  
          Consumer Affairs (DCA) to establish, by regulation, a system for  
          a retired category of licensure for persons not actively engaged  
          in the practice of their profession, as specified.


          The Senate amendments specify that a retired license can only be  
          issued to an individual with an active or inactive license that  
          was not placed on inactive status for disciplinary reasons,  
          authorize boards to establish an appropriate fee for a retired  
          license, specify that boards with existing authority to  
          establish a retried license are not subject to specified  
          provisions, and make other minor and technical clarifying  
          changes. 


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, there are 25 boards, bureaus, and other licensing  








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          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:


          1)Minor one-time costs to adopt regulations establishing a  
            retired license category (various special funds).


          2)One-time costs between $15,000 and $75,000 to make changes to  
            the licensing system to accommodate a new retired license  
            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.


          3)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. 










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            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.


          COMMENTS:  


          Purpose.  This bill authorizes any of the boards under the DCA  
          to establish, through regulations, a system to allow for a  
          retired license category for those licensees who no longer wish  
          to practice their profession or vocation but who do not want  
          their license to become "inactive".  This bill is sponsored by  
          the author.  According to the author, "[this bill] allows any of  
          the boards, bureaus, commissions, or programs within the [DCA]  
          to establish a system for a retired category of licensure for  
          those not actively in [the] practice of their profession.


          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.  To that end, this bill acts as a practical  
          means to bring uniformity to licensing at the DCA."


          Background.  Existing law permits the boards under the DCA to  
          adopt regulations to establish a system for issuing inactive  
          licenses.  The law requires that those regulations cover fees,  
          renewal, restoration to active status, and practice  
          restrictions. 


          There are two differences to the laws permitting regulations for  
          inactive licenses for non-healing arts boards and healing arts  
          boards:  1) non-healing arts boards are permitted to reduce the  
          fees for renewal and change the continuing education  
          requirements, while the healing arts boards are not; and, 2) the  
          restoration fee is waived for a physician and surgeon that  








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          certifies he or she is restoring the inactive license to an  
          active license solely for volunteer purposes.


          Retired Licenses.  According to the author, some licensees  
          disfavor an "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 specific to their licensees that would permit them  
          to also create a retired license category.  Prior bills have  
          included conditions for volunteering, enforcement of retired  
          licenses, and fees. 


          Thirteen other healing arts and non-healing arts boards have the  
          authority to issue retired licensees, including: 


          1)Board of Accountancy


          2)Architects Board


          3)Board of Barbering and Cosmetology


          4)Board of Behavioral Sciences 


          5)Dental Board 


          6)Dental Hygiene Committee of California 


          7)Landscape Architects Technical Committee 


          8)Medical Board 










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          9)Board of Pharmacy 


          10)Board of Podiatric Medicine 


          11)Professional Fiduciaries Bureau


          12)Board for Professional Engineers, Land Surveyors, and  
          Geologists 


          13)Respiratory Care Board 


          This bill will provide the remaining boards with the authority  
          to establish a system of retired licenses if they desire to.   
          This bill does not require boards to offer a retired license. 


          BreEZe.  The "BreEZe Project" was designed to provide the DCA  
          boards with a new enterprise-wide enforcement and licensing  
          system.  The updated BreEZe system was engineered to replace  
          outdated legacy systems and multiple "work around" systems with  
          an integrated solution based on updated technology.  BreEZe  
          enables consumers to verify a professional license and file a  
          consumer complaint.  Licensees and applicants can submit license  
          applications, renew a license and change their address among  
          other services.  The initial BreEZe project was to be  
          implemented in three separate phases.  Release one was launched  
          in October of 2013, and included 10 boards.  Release two was  
          launched in January of 2016 and included eight boards.  The  
          remaining boards will be in a final release in which the vendor  
          and the release date have not been identified.  Consumers can  
          verify licensure status through the BreEZe system.


          A substantially similar version of this bill was introduced in  
          2015.  AB 750 (Low) of 2015, passed the Assembly Committee on  
          Business and Professions (14 Ayes - 0 Noes) on April 14, 2015,  
          but was subsequently held in the Assembly Committee on  








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          Appropriations.  The Appropriations Committee analysis noted  
          potential delays and costs associated with the Release two of  
          the BreEZe project.  That analysis noted "[o]ne-time major state  
          costs, likely in the millions of dollars, resulting from  
          contract delays for Release two 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."  


          It is unknown if similar costs or the issues cited prior to the  
          implementation of Release two will impact any boards' ability to  
          offer a retired license status.  This bill does not require a  
          board to establish a retired license, but simply authorizes a  
          board to establish, through regulation, a process to offer a  
          retired status license.


          Analysis Prepared by:                                             
                          Elissa Silva / B. & P. / (916) 319-3301  FN:  
          0003868