BILL ANALYSIS Ó
SB 1155
Page 1
Date of Hearing: June 21, 2016
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Rudy Salas, Chair
SB 1155(Morrell) - As Amended May 31, 2016
SENATE VOTE: 39-0
NOTE: This bill is double-referred, and if passed by this
Committee, will be referred to the Assembly Committee on Veteran
Affairs.
SUBJECT: Professions and vocations: licenses: military
service
SUMMARY: Requires, on or after January 1, 2018, every board
under the Department of Consumer Affairs (DCA) to waive initial
license fees for veterans, as specified.
EXISTING LAW:
1)Existing law provides for the licensure and regulation of
various professions and vocations by licensing entities under
the DCA. (Business and Professions Code (BPC) §§1-11506)
2)Declares, among other things, that it is the policy of this
state that persons with skills, knowledge, and experience
obtained in the armed services of the United States should be
permitted to apply this learning and contribute to the
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employment needs of the state at the maximum level of
responsibility and skill for which they are qualified. (BPC §
35)
3)Exempts a licensee or registrant of any board, commission, or
bureau within the DCA whose license expired while the licensee
or registrant was on active duty as a member of the California
National Guard or the United States Armed Forces from
reexamination or penalties for reinstating the license or
registration, as specified. (BPC § 114)
4)Requires every board under the DCA to waive the renewal fees,
continuing education requirements, and other renewal
requirements as determined by the board 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 under the DCA to inquire in every
application for licensure if the applicant is serving in, or
has previously served in, the military. (BPC § 114.5)
6)Requires, after July 1, 2016, that a board under the DCA
expedite 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. (BPC § 115.4)
7)Requires a board under the DCA 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
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or vocation for which the applicant seeks a license from the
board. (BPC § 115.5)
8)Requires a board under the DCA to issue, after appropriate
investigation, specified temporary licenses to 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 the applicant meets
specified requirements. (BPC § 115.6)
THIS BILL:
1)Requires every board within the DCA to grant a fee waiver for
the application for and issuance of an initial license to an
individual who is a honorably discharged veteran who served as
an active duty member of the California National Guard or the
United States Armed Forces.
2)Provides that a veteran shall be granted only one fee waiver,
except if a board charges a fee for the application for a
license and another fee for the issuance of a license. In
that case, the board shall grant the veteran fee waivers for
both the application for and issuance of a license.
3)Specifies that, after a fee waiver has been issued by any
board under the DCA pursuant to the provisions under this
bill, the veteran will no longer be eligible for a waiver.
4)Specifies that 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.
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5)Specifies that a waiver shall not be issued for: 1) renewal of
a license; 2) the application for and issuance of an
additional license, a certificate, a registration, or a permit
associated with the initial license; or 3) the application for
an examination.
6)Becomes operative on January 1, 2018.
FISCAL EFFECT: According to the Senate Appropriations
Committee, this bill will result in:
1)"[DCA]-wide revenue loss of $1.1 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 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 of several
funds within the [DCA].
2)Additional absorbable workload to the [DCA] to make necessary
changes to the [DCA's] online licensing and enforcement
system, BreEZe. Additional minor costs for updating websites
related to applications."
COMMENTS:
Purpose. This bill is sponsored by the author. According to
the author, "[this bill] removes a barrier for veterans seeking
work in California and encourages immediate entrance into the
civilian workforce by waiving the application and initial
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license fees in order to receive an occupational license. These
fees act as a barrier of entry to the workforce for the 240,000
to 360,000 veterans that separate from the military each year,
many of whom would like to make California home... By removing
a barrier, we can more effectively help veterans harness their
invaluable skillsets thereby helping them find higher paying
jobs, strengthening the economy, and chipping away at the
growing issue of veteran homelessness."
Background. In 2015, the White House's Council of Economic
Advisors (CEA) in Occupational Licensing: A Framework for Policy
Makers pointed out that strict licensing creates barriers to
mobility for workers in licensed professions, including military
personnel and veterans. The CEA suggests that this is because
state licensing schemes impose additional licensing costs on
licensed workers for movement between states, but no extra cost
for movement within a state.
Further, the burdens could be harder on military applicants and
their families, who tend to move much more than the general
population. Military applicants may be stationed away from the
state where they earned their license (Permanent Change of
Station (PCS) move). Veterans may also end up moving to a
different state when they are discharged. If the state they
move to does not accept their license, the military applicants
and their families may have to repeat education and training to
meet the state-specific requirements.
There are also several costs associated with licensing.
Applicants and licensees typically have to pay to acquire the
required education, pay an application processing fee, pay an
examination fee, and pay an initial licensee fee. Depending on
the profession, some licensees also have to pay renewal fees and
continuing education fees. As a result, even if a military
applicant, military spouse, or veteran is licensed and meets the
educational and experiential requirements, they almost always
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have to pay duplicative fees.
DCA Board Assistance for Military Applicants and Licensees. Due
to the potential hardships of licensing on military applicants,
veterans, and their families, the Legislature has passed, and
the DCA boards have implemented, several policies to ease the
burdens on military applicants, spouses, and licensees. For
instance, BPC § 114 exempts licensees from penalties for
reinstating a retired license if called to active duty. BPC §
114.3 requires boards under the DCA to waive renewal fees,
continuing education requirements, and other requirements for
military licensees as long as specified requirements are met.
In addition, after July 1, 2016, BPC § 115.4 will require boards
under the DCA to begin expediting the initial licensure process
for applicants who are honorably discharged veterans.
Similarly, this bill adds a one-time initial license fee waiver
for applicants who are honorably discharged veterans.
Current Related Legislation. SB 1348 (Canella) of the current
Legislative Session, requires boards under the DCA that
authorize veterans to apply military experience and training
towards licensure requirements to post information on the
board's website about applying for military experience and
training towards licensure requirements.
Prior Related Legislation. AB 1057 (Medina), Chapter 693,
Statutes of 2013, requires each board to inquire in every
application for licensure if the individual applying for
licensure is serving in, or has previously served in, the
military.
IMPLEMENTATION ISSUES:
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Board Revenues. Based on available data, the DCA boards that
license military applicants estimate that there are at least
potential 8,714 military applicants that this legislation will
impact. The DCA notes that, because not all boards have moved
to DCA's new licensing processing database, BreEZe, this data
can be difficult to track for some boards. As a result, the
estimates are conservative. Given that several boards are
experiencing fiscal issues and have submitted recent proposals
for fee increases, it is unclear how the potential loss of
revenues will impact board operations.
Exclusion of Businesses. There are several boards that offer
licenses to businesses, authorizing the business to provide
services that require a license. These boards include the
Structural Pest Control Board, the California Board of
Accountancy, the Bureau for Private Postsecondary Education, the
Bureau of Security and Investigative Services, and others.
Because the assistance provided under this bill is only intended
to benefit an individual veteran, it contains a clause excluding
individual veterans applying on behalf of a business.
Therefore, this bill would exclude licensed businesses such as
accountancy firms, registered pest control companies, and
registered alarm companies.
Still, given the variety of license types (and variety of
licensees employed by the businesses), the current language of
the bill may also result in unintended exclusions or inclusions.
For example, some individuals applying on behalf of a business
are not applying for a license specifically authorizing the
business to practice (such as a contractor operating as a sole
proprietor). Therefore, the author should continue to work with
the DCA, boards, and stakeholders to determine the proper way to
distinguish businesses from individuals.
AMENDMENTS:
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The author should make the following amendment to clarify the
way applicants show honorable discharge status:
On page 2, lines 5-8, strike, 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. and
insert:
an applicant who supplies satisfactory evidence to the board
that the applicant has served as an active duty member of the
California National Guard or the United States Armed Forces and
was honorably discharged.
On page 3, between lines 1 and 2, insert:
(e)"Satisfactory evidence" means a completed "Certificate of
Release or Discharge from Active Duty" (DD Form 214).
REGISTERED SUPPORT:
American G.I. Forum of California
AMVETS-Department of California
California Association of County Veterans Service Officers
California Dental Association
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Goodwill Southern California
Military Officers Association of America, California Council of
Chapters
Veterans of Foreign Wars, California Department
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by:Vincent Chee / B. & P. / (916) 319-3301