BILL ANALYSIS Ó
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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