BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1039 (Hill) - Professions and vocations
          
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          |Version: April 21, 2016         |Policy Vote: B., P. & E.D. 6 -  |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 23, 2016      |Consultant: Brendan McCarthy    |
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          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill  
          Summary:  SB 1039 would increase licensing fees assessed by the  
          Board of Registered Nursing, the Pharmacy Board, the State  
          Contractors Licensing Board, and the Court Reporters Board. The  
          bill would eliminate the Telephone Medical Advice Services  
          Bureau.


          Fiscal  
          Impact:  
           One-time costs of $260,000 and ongoing costs of $250,000 per  
            year for the Board of Registered Nursing to audit providers of  
            continuing education (Board of Registered Nursing Fund).

           Increased licensing fee revenues of about $23 million per year  
            to the Board of Registered Nursing (Board of Registered  
            Nursing Fund).

           Increased licensing fee revenues of about $7 million per year  







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            to the Board of Pharmacy (Pharmacy Board Contingent Fund).

           Increased licensing fee revenues of about $13 million per year  
            to the Contractor's State Licensing Board (Contractors  
            Licensing Fund).

           Increased licensing fee revenues of about $950,000 per year to  
            the Court Reporters Board (Court Reporters Fund).

           Reduced expenditures (and license fee revenues) of about  
            $200,000 per year from the elimination of the Telephone  
            Medical Advice Services Bureau (Telephone Medical Advice  
            Services Fund).

           One-time General Fund benefit of about $1.1 million. The  
            Telephone Medical Advice Services Fund has a projected fund  
            balance at the end of the budget year of about $1.1 million.  
            According to the Government Code, any fund balance remaining  
            upon the abolishment of the fund can be transferred to the  
            General Fund. Upon abolishment of the Bureau, the Department  
            of Finance should be able to abolish the fund and transfer the  
            balance to the General Fund.


          Background:  Under current law, a variety of boards, bureaus, and  
          committees within the Department of Consumer Affairs license and  
          regulate professions and vocations.


          Proposed Law:  
            SB 1039 would make a variety of changes to the statutes  
          governing various boards, bureaus, and committees within the  
          Department of Consumer Affairs.
          Specific provisions of the bill would:
                 With regard to the Dental Board of California:
                  o         Declare legislative intent to enact  
                    legislation to provide dental scholarships;
                  o         Authorize the Dental Board to accept the  
                    findings of a Board-approved accreditation body for  
                    foreign dental schools;
                 With regard to the Board of Podiatric Medicine:
                  o         Establish the Board within the Department of  
                    Consumer Affairs, no longer within the Medical Board  
                    of California;








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                  o         Revise the requirements for the term of a  
                    license;
                 With regard to the Board of Registered Nursing:
                  o         Impose additional requirements on continuing  
                    education requirements;
                  o         Require the Board of Registered Nursing to  
                    audit continuing education providers at least once  
                    every five years;
                  o         Raise specified licensing fees currently  
                    assessed by the Board and impose additional fees;
                 With regard to the Board of Pharmacy:
                  o         Raise specified fees paid by licensees;
                 With regard to the Telephone Medical Advice Services  
               Bureau:
                  o         Eliminate the Bureau and repeal the  
                    requirement that businesses that provide telephone  
                    medical advice be registered with the Bureau;
                 With regard to the Contractors State License Board:
                  o         Raise specified fees paid by licensees;
                  o         Require the Board to establish criteria for  
                    processing expedited applications;
                 With regard to the Court Reporters Board:
                  o         Raise the renewal fee limit;
                 With regard to the Structural Pest Control Board:
                  o         Make a number of changes to the requirements  
                    for inspection reports and agreements regulated by the  
                    Board. 


          Staff  
          Comments:  The fee increases included in the bill respond to  
          structural imbalances in the special funds that support the  
          impacted boards. 
          With regard to the Board of Registered Nursing - significant  
          budget augmentations in recent years for enforcement of  
          licensing requirements and cost increases associated with the  
          new BreEze licensing system have led to a structural deficit in  
          the Board of Registered Nursing Fund. The Board of Registered  
          Nursing Fund is projected to be insolvent in 2018-19 without  
          increased revenues or decreased spending.


          With regard to the Board of Pharmacy - the Board has increased  
          enforcement spending by about 50% in recent years. All of the  








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          Board's licensing fees are capped in statute, and most of those  
          fees have been set at their statutory maximum. Based on current  
          revenue and expenditure trends, the Pharmacy Board Contingent  
          Fund is projected to be insolvent by 2017-18.


          With regard to the Telephone Medical Advice Services Bureau -  
          current law requires businesses that provide telephone medical  
          advice to register with the Bureau. The Bureau does not actively  
          regulate registered entities and the Bureau receives a very  
          small number of consumer complaints each year. Also, most of the  
          activities undertaken by registered entities would be subject to  
          licensing and regulation by other state entities, such as the  
          Medical Board.


          With regard to the Contractors State Licensing Board - the board  
          has experienced increased costs in recent years, primarily due  
          to increased administrative costs associated with the BreEze  
          licensing system and increased enforcement costs. (However, the  
          Board is not currently scheduled to transition to the BreEze  
          system.) The Contractors Licensing Fund is projected to be  
          insolvent by 2017-18.


          With regard to the Court Reporters Board - increasing costs and  
          declining numbers of licensees has led to a structural deficit.  
          The Court Reporters Fund is projected to be insolvent by  
          2017-18.


          The only costs that may be incurred by a local agency relate to  
          crimes and infractions. Under the California Constitution, such  
          costs are not reimbursable by the state.




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