BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1155 (Morrell) - Professions and vocations: licenses: military service ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 28, 2016 |Policy Vote: B., P. & E.D. 9 - | | | 0, V.A. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: April 25, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill requires every board within the Department of Consumer Affairs (Department) to grant a fee waiver for the application and the initial licensing fee to an honorably discharged veteran. Fiscal Impact: Department-wide revenue loss of about $1.2 million to waive applicable fees for honorably discharged veterans. Additional workload required of each board and bureau to establish the fee waiver in regulations prior to implementation could drive SB 1155 (Morrell) Page 1 of ? potentially significant costs. Though most boards and bureaus indicate that the loss of revenue and any associated workload would be minor, this bill would exacerbate the fiscal issues concerning several funds within the Department. See Staff Comments (Special funds) Additional absorbable workload to the Department to make necessary changes to the Department's online licensing and enforcement system, BreEZe, that would necessitate an implementation date of January 1, 2018. Additional minor costs for updating websites related to applications. Background: Existing law 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. 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. Existing law 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. Existing law authorizes any licensee whose license expired while he or she was on active duty as a member of the California National Guard or the United States Armed Forces to reinstate his or her license without examination or penalty if certain specified requirements are met. Existing law 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 SB 1155 (Morrell) Page 2 of ? California National Guard if certain requirements are met. 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. Proposed Law: This bill 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 States Armed Forces. This bill, among other things, restricts veterans to one fee waiver and prohibits a waiver to be issued for a renewal of a license. Staff Comments: The Department estimates that approximately 8,700 applicants would have fees waived pursuant to this bill, resulting in revenue loss of $1.2 million. According to the Department, most boards and bureaus indicate the loss in revenue and any associated workload would be minor and absorbable. However, the Board of Registered Nursing anticipates a loss in licensing revenue of about $465,000 annually which would likely cause a decrease in the associated fund's already constrained reserves. In addition, the Physical Therapy Board and the Bureau of Security and Investigative Services anticipate losses in licensing revenue of $45,000 and $298,000 annually and respectively, which would exacerbate to the structural imbalance of associated funds. -- END --