BILL ANALYSIS                                                                                                                                                                                                    

                                                                    SB 1039  

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          Date of Hearing:  August 3, 2016


                               Lorena Gonzalez, Chair

          SB 1039  
          (Hill) - As Amended August 1, 2016

          |Policy       |Business and Professions       |Vote:|11 - 5       |
          |Committee:   |                               |     |             |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   


          This omnibus bill increases fees and makes other changes to the  
          statutes governing various boards and bureaus under the  
          Department of Consumer Affairs (DCA).  Specifically, this bill:

          1)Includes fee increases for several boards, including the  
            Dental Hygiene Committee of California (DHCC), the California  
            Board of Optometry (CBO), the Board of Registered Nursing  
            (BRN), the Board of Pharmacy (BOP), and the Contractors State  
            License Board (CSLB).


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          2)Eliminates the Telephone Medical Advice Services Bureau  

          3)Requires the BRN to audit continuing education providers at  
            least once every five years to ensure adherence to regulatory  
            requirements, and requires the BRN to withhold or rescind  
            approval from any provider that is in violation of the  
            regulatory requirements.

          4)Includes minor changes to practices and requirements under the  
            CSLB, the Veterinary Medical Board, and the Structural Pest  
            Control Board (SPCB). 

          5)Indicates intent to enact future legislation that would  
            establish a Dental Corps Scholarship Program within the Health  
            Professions Education Foundation to increase the supply of  
            dentists serving in medically underserved areas.

          FISCAL EFFECT:

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

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

          3)Increased licensing fee revenues of about $7 million per year  
            to the Board of Pharmacy (Pharmacy Board Contingent Fund).

          4)Increased licensing fee revenues of about $12.5 million per  
            year to the Contractor's State Licensing Board (Contractors  


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            Licensing Fund). 

          5)Unknown additional fee revenues due to increases in dental  
            hygienist license renewal fees 

            (State Dental Hygiene Fund) and for contact lens sellers,  
            registered dispensing opticians, and spectacle lens dispensers  
            (State Optometry Fund).

          6)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).

          7)Information technology costs to change fee amounts are  
            expected to be minor and absorbable.


          1)Purpose. This bill is intended to be an omnibus bill which  
            includes several changes to a number of boards under DCA, and  
            includes necessary fee increases for certain boards to ensure  
            they continue to operate without a major structural deficit  
            and maintain adequate reserves.   This bill also makes other  
            clarifying substantive changes for the SPCB in regards to  
            inspection conducted by structural pest control operators and  


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            their companies and eliminates the TMAS Bureau which is no  
            longer necessary to provide oversight of remote advice  
            provided by healthcare practitioners.

          2)Fee increases. Fee audits for a number of boards have  
            reflected fees that are insufficient to support operations.   
            Fee increases contained in this bill attempt to right-size  
            fees to address both structural imbalances and increased  
            program costs, such as for the BreEZe system, the state's new  
            enterprise-wide licensing system. 

          3)Telephone Medical Advice Services Bureau (TMAS). Under current  
            law, any business that provides telephone medical advice  
            services to a patient in California and who employs or  
            contracts with five or more health care professionals must  
            register with the TMAS Bureau. According to the most recent  
            DCA reports, the TMAS Bureau receives very few complaints and  
            there have been zero citations, fines assessed, referrals for  
            criminal or civil action, formal disciplinary actions filed,  
            or consumer restitution ordered by the TMAS Bureau in the last  
            five years.  DCA licensing boards already have concurrent  
            authority over the practice of healthcare by licensed and  
            unlicensed individuals. This bill eliminates the TMAS Bureau. 

          4)Related Legislation. AB 2190 through AB 2194 (Salas) and SB  
            1192 through 1196 (Hill) are all 2016 sunset review bills on  
            various topics. 


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          Analysis Prepared by:Lisa Murawski / APPR. / (916)