BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1155| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1155 Author: Morrell (R) Amended: 5/31/16 Vote: 21 SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 4/4/16 AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski SENATE VETERANS AFFAIRS COMMITTEE: 5-0, 4/12/16 AYES: Nielsen, Hueso, Allen, Nguyen, Roth SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/27/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen SUBJECT: Professions and vocations: licenses: military service SOURCE: Author DIGEST: This bill requires every board within the Department of Consumer Affairs (Department) to grant a waiver for the application and initial licensing fee to an honorably discharged veteran, except as otherwise specified, as of January 1, 2018. ANALYSIS: Existing law: 1)Provides for the licensure, registration and regulation of SB 1155 Page 2 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)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) 4)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) 5)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) 6)Authorizes the State Bar of California to waive the membership fees of any member who is good standing with the State Bar at the time the member enters into military service and for the period for which the service member is in military service. SB 1155 Page 3 (Military and Veterans Code § 825) This bill: 1)Requires as of January 1, 2018, that every board within the Department to grant a fee waiver for the application for and issuance of initial 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, except as otherwise specified. After a fee waiver has been issued by any board within the department pursuant to these provisions, the veteran is no longer eligible for a waiver. b) If a board charges a fee for the application for a license and another fee for the issuance of a license, the veteran shall be granted fee waivers for both the application for and issuance of a license. c) The fee waiver shall apply only to an application of and a license issued to an individual veteran and not to an application of or a license issued to an individual veteran on behalf of a business or other entity. d) A waiver shall not be issued for any of the following: i) Renewal of a license. ii) The application for and issuance of an additional license, a certificate, a registration, or a permit associated with the initial license. iii) The application for an examination. 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 SB 1155 Page 4 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. 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 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. 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 SB 1155 Page 5 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. 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. FISCAL EFFECT: Appropriation: No Fiscal Com.: YesLocal: No According to the Senate Appropriations Committee analysis dated May 27, 2016, this bill will result in Department-wide revenue loss of $1.1 million to waive applicable fees for honorably discharged veterans. The bill will also result in additional workload for each board and bureau to establish the fee waiver in regulations prior to implementation which could drive potentially significant costs. The analysis notes that although most boards and bureaus indicate that the loss of revenue and any associated workload stemming from thi bill would be minor, several special funds' fiscal issues could be exacerbated. This bill will also result in additional absorbable workload to the Department to make necessary changes to the Department's online licensing and enforcement system, BreEZe as well as additional minor costs for updating websites related to applications. SUPPORT: (Verified 5/31/16) California Association of Licensed Investigators, Inc. Goodwill Southern California Veterans of Foreign Wars of California (San Diego County, Southern Imperial County) OPPOSITION: (Verified 5/31/16) None received SB 1155 Page 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 bill and indicate that 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. Proponents state that veterans often gain valuable job skills during military service which can be used upon entering the 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 proponents believe 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. The California Association of Licensed Investigators, Inc. is also in support of this bill and believes that the provisions of this bill 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 applicants to obtain occupational license. Prepared by:Bill Gage / B., P. & E.D. / (916) 651-4104 5/31/16 20:45:36 **** END ****