BILL ANALYSIS Ó AB 2859 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2859 (Low) As Amended August 3, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |79-0 |(May 5, 2016) |SENATE: |39-0 |(August 23, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 AB 2859 Page 2 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. AB 2859 Page 3 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 AB 2859 Page 4 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 AB 2859 Page 5 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 AB 2859 Page 6 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