BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
                              Senator Jerry Hill, Chair
                                2015 - 2016  Regular 

          Bill No:            SB 1155         Hearing Date:    April 4,  
          2016
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          |Author:   |Morrell                                               |
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          |Version:  |March 28, 2016    Amended                             |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Bill Gage                                             |
          |:         |                                                      |
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           Subject:  Professions and vocations: licenses: military service


          SUMMARY:  Would require every board under the Department of Consumer  
          Affairs (Department) to grant a waiver for the application and  
          initial licensing fee to an honorably discharged veteran.

          Existing law:
          
          1) Provides for the licensure, registration and regulation of  
             various professions and vocations by the boards, bureaus,  
             committees, programs and commission (board(s)) within the  
             Department.

          2) Specifies that it is the policy of this state that persons  
             with the skills, knowledge, and experiences obtained in the  
             armed services should be permitted to apply this learning and  
             contribute to the employment needs of this state at the  
             maximum level of responsibility and skill for which they are  
             qualified, and that to this end, that the rules and  
             regulations of boards shall provide a method of evaluating  
             education, training and experience obtained in the armed  
             services and determine how it may be used to meet the  
             licensure requirements for the particular business, or  
             occupation, or profession regulated.  (Business and  
             Professions Code (BPC) § 35)  

          3) Authorizes any licensee whose license expired while he or she  
             was on active duty as a member of the California National  







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             Guard of the United States Armed Forces to reinstate his or  
             her license without examination or penalty if certain  
             specified requirements are met.  (BPC § 114)

          4) Provides that every board within the Department shall waive  
             the renewal fees, continuing education requirements, and  
             other renewal requirements as determined by the board, if  
             they are applicable, for any licensee or registrant called to  
             active duty as a member of the United States Armed Forces or  
             the California National Guard if certain specified  
             requirements are met.  (BPC § 114.3)

          5) Requires each board to inquire in every application if the  
             individual applying for licensure is serving in, or has  
             previously served in, the military. (BPC § 114.5)

          6) Requires after July 1, 2016, that a board within the  
             Department expedite, and may assist, the initial licensure  
             process for an applicant who supplies satisfactory evidence  
             to the board that the applicant has served as an active duty  
             member of the Armed Forces of the United States and was  
             honorably discharged and provides that the board may adopt  
             regulations necessary to implement this requirement.  
          (BPC § 115.4)

          7) Requires a board within the Department to expedite the  
             licensure process for an applicant who is married to, or in a  
             domestic partnership or other legal union with an active duty  
             member of the Armed Forces or who is assigned to a duty  
             station within this state under official active duty military  
             orders and holds a current license from another state in the  
             profession or vocation for which her or she seeks a license  
             from the board. (BPC § 115.5)

          8) Requires a board within the Department to issue, after  
             appropriate investigation, temporary licenses for specified  
             professions for an applicant who is married to, or is in a  
             domestic partnership or other legal union with an active duty  
             member of the Armed Forces or who is assigned to a duty  
             station within this state under official active duty military  
             orders, if specified requirements are met. 

          9) Authorizes the State Bar of California to waive the  
             membership fees of any member who is good standing with the  








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             State Bar at the time the member enters into military service  
             and for the period for which the service member is in  
             military service.
          (Military and Veterans Code § 825)

          This bill:

          1)Requires every board within the Department to grant a fee  
            waiver for the application for and issuance of a license to an  
            individual who is an honorably discharged veteran who served  
            as an active duty member of the California National Guard or  
            the United State Armed Forces.

          2)Requires under this program, that the following shall apply:

             a)   The veteran shall be granted only one fee waiver.

             b)   The fee waiver shall apply only to an application of a  
               license issued to an individual veteran and not to an  
               application of or a license issued to a business or other  
               entity.

             c)   A waiver shall not be issued for a renewal license or  
               for the application for and issuance of a license other  
               that one initial license. 

          
          FISCAL  
          EFFECT:  Unknown.  This bill has been keyed "fiscal" by  
          Legislative Counsel.

          
          COMMENTS:
          
          1. Purpose.  This measure is sponsored by the Author.  According  
             to the Author, initial application and occupational license  
             fees can act as a barrier for entry to the workforce for the  
             240,000 to 360,000 veterans who separate from the military  
             each year.  Many either already reside in or intend to make  
             California their home, adding to the 1.9 million veterans  
             residing in the state.  

          As stated by the Author, veterans often gain valuable job skills  
             during military service which can be used upon entering the  








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             civilian workforce.  Despite this fact, young male veterans,  
             as of 2014, have an unemployment rate of 16.2 percent.   
             California also has upwards of 11,000 veterans living on the  
             streets, the most of any state.  

          The Author believes that eliminating these fees will bring more  
             veterans into the workforce, growing the skilled labor market  
             in California, and taking a step to alleviate the growing  
             problem of veteran homelessness.

          2. Background.  The Department currently oversees 39 licensing  
             programs that issue more than two million licenses,  
             registrations and certifications in nearly 200 professional  
             categories.  These licensing boards are charged with  
             regulating a particular profession through licensure and  
             enforcement programs.  Each of these entities is responsible  
             for enforcing the minimum qualifications for licensure that  
             are established by statute and regulation.  Licensure  
             requirements vary in their specificity and flexibility.  In  
             many cases, the stated qualifications are specific and  
             provide the regulating entity with little or no discretion  
             over what experience or education can be accepted.   
             Professional and occupational licensure requirements range  
             from completing a form and paying a licensing fee to  
             satisfying significant experience, education and exam  
             requirements.

          3. Consideration of Military Experience and Education.  In 2012,  
             the Department provided a report to the Legislature regarding  
             the licensing programs that have statutes or regulations that  
             allow for the use of military experience and education to  
             meet licensing requirements for the various boards under the  
             Department.  Titled, Report to the California State  
             Legislature:  Acceptance of Military Experience & Education  
             Towards Licensure, it outlined administrative solutions that  
             the Department's programs were instituting to assist military  
             applicants with the licensure process.  It provided a  
             breakdown of all licensing programs under the Department that  
             allowed for members of the military to apply experience,  
             education, or training towards licensure and those that did  
             not.  

          In 2015, the Department provided an update to its 2012 report  
             and focused on boards providing acceptance of military  








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             experience towards licensure pursuant to BPC § 35, which  
             requires that rules and regulations of boards shall provide  
             for methods of evaluating education, training and experience  
             obtained in the armed services.  It was found that none of  
             the licensing programs have regulations based on BPC § 35,  
             but that many of the Department's programs have either  
             specific or broad authority to review and apply military  
             education, experience, or training towards licensure.  For  
             example, the Bureau of Security and Investigative Services  
             (BSIS) worked with over 5,000 military applicants to guide  
             them through the application process in the last two years.   
             The Contractors' State License Board (CSLB) has also created  
             a formal program to assist former military members with  
             properly applying their education and experience and  
             completing the licensing process.   

          4. Impact on Board Licensing Revenue Minimal.  A survey of  
             several licensing boards found that the impact on their  
             overall revenue received from licensing fees would be  
             minimal.  The CSLB has expedited 45 applications for veterans  
             for the last year out of about 18,000 applications received.   
             For BSIS, they receive about 3,700 new applications from  
             veterans on an annual basis out of about 71,000 applications  
             received per year.  The Bureau of Automotive Repair and the  
             Board of Barbering and Cosmetology receives about 5  
             applications from veterans per year.

          5. Other States Granting Licensing Fee Waivers for Veterans.   
             Florida, Texas and Wisconsin have granted licensing fee  
             waivers for the initial issuance of occupational licenses to  
             honorably discharged veterans.  Ohio is in the process of  
             passing a similar law.

          6. Arguments in Support.  The  Veterans of Foreign Wars of  
             California  (San Diego County and Southern Imperial County)  
             and  Goodwill Southern California  are in support of this  
             measure for the reasons as indicated by the Author.  

          The  California Association of Licensed Investigators, Inc.  is  
             also in support of this bill and believes that the provisions  
             of this measure will remove an obstacle for veterans who  
             desire to work in our state and will facilitate their  
             entrance into the civilian workforce by waiving the  
             application and initial license fees that are paid by  








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             applicants to obtain occupational license. 

          
          SUPPORT AND OPPOSITION:
          
           Support:  

          California Association of Licensed Investigators, Inc.
          Goodwill Southern California
          Veterans of Foreign Wars of California (San Diego County,  
          Southern Imperial County)

           Opposition:  None received as of March 29, 2016.


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