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  ****