BILL ANALYSIS                                                                                                                                                                                                    Ó





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

          SB 1155 (Morrell) - Professions and vocations:  licenses:   
          military service
          
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          |Version: March 28, 2016         |Policy Vote: B., P. & E.D. 9 -  |
          |                                |          0, V.A. 5 - 0         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 25, 2016    |Consultant: Jillian Kissee      |
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          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  








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            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  







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          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.


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