BILL ANALYSIS                                                                                                                                                                                                    �







         ----------------------------------------------------------------------- 
        |Hearing Date:June 16, 2014         |Bill No:AB                         |
        |                                   |186                                |
         ----------------------------------------------------------------------- 


                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                         Bill No: AB 186 Author:  Maienschein
                         As Amended:  May 29, 2014Fiscal:  Yes

        
        SUBJECT:   Professions and vocations:  military spouses:  temporary  
        licenses. 
        
        SUMMARY:  Requires applicable licensing entities under the Department  
        of Consumer Affairs (DCA) to provide military spouses and domestic  
        partners, who hold a valid professional license in another state, an  
        18 month provisional license to practice in California and permits a  
        board within the DCA to require an applicant to successfully pass a  
        jurisprudence or law and ethics examination before granting a  
        temporary license to practice. 

        Existing law:
        
        1) Provides for the licensure and regulation of various professions  
           and vocations by boards within the DCA.

        2) Defines "license" as a license, certificate, registration or other  
           means to engage in a business or profession regulated by the  
           Business and Professions Code (BPC).  (BPC � 23.7)

        3) Defines "board" as a board, bureau, commission, committee,  
           department, division, examining committee, program or agency within  
           the DCA.  (BPC � 22)

        4) Defines "military service" as federal service after October 1,  
           1940, where a military member is on active duty with any branch of  
           service as well as training or education under the supervision of  
           the United States preliminary to induction into the military  
           service.  
        (BPC � 10460 (c))





                                                                         AB 186
                                                                         Page 2




        5) Defines "active service" or "active duty" as the period during  
           which a person in military service is absent from duty on account  
           of sickness, wounds, leave, or other lawful cause.  
        (BPC � 10460 (c))

        6) Specifies that a board within DCA shall expedite the licensure  
           process for an applicant who meets both of the following  
           requirements:  (BPC � 155.5)

            a)    Supplies evidence satisfactory to the board that the  
              applicant is married to, or in a domestic partnership or other  
              legal union with, an active duty member of the Armed Forces of  
              the United States who is assigned to a duty station in this  
              state under official active duty military orders.

            b)    Holds a current license in another state, district, or  
              territory of the United States in the profession or vocation for  
              which he or she seeks a license from the board. 

        This bill:

        1) Requires applicable boards within DCA to issue a 12-month temporary  
           license to an applicant who is a military spouse or domestic  
           partner while the license application is being processed, if: 

            a)    The applicant supplies satisfactory evidence that the  
              applicant is married to, or in a domestic partnership or other  
              legal union with, an active duty member of the Armed Forces of  
              the United States who is assigned to a duty station in this  
              state under official active duty military orders;

            b)    The applicant holds a current license in another state,  
              district or territory of the United States in the profession or  
              vocation for which he or she seeks a license from the board;

            c)    The applicant submits an affidavit attesting that the  
              information submitted in the application is accurate; 

            d)    The applicant submits written verification from the  
              applicant's original licensing jurisdiction stating that the  
              applicant's license is in good standing; 

           e)   The applicant, upon the board's request, submits fingerprints  
             for a background check; 






                                                                         AB 186
                                                                         Page 3



            f)     The applicant has not committed any act in any jurisdiction  
              that constitutes grounds for the denial, suspension, or  
              revocation of the professional license by the board under the  
              Business and Professions Code at the time the act was committed;  
              and, 

            g)    The applicant was not disciplined by a licensing entity in  
              another jurisdiction and is not the subject of an unresolved  
              complaint, review procedure, or disciplinary proceeding  
              conducted by a licensing entity in another jurisdiction.

        2) Exempts the California Architects Board and the Board of  
           Chiropractic Examiners from the requirements of the bill.

        3) Specifies that an applicant seeking a temporary license as a civil  
           engineer, geotechnical engineer, structural engineer, professional  
           geologist, professional geophysicist, certified engineering  
           geologist, certified hydrogeologist or land surveyor shall  
           successfully pass the appropriate California specific  
           examination(s) as required for licensure by the Board for  
           Professional Engineers, Land Surveyors and Geologists.

        4) Specifies that a board within the DCA may require an applicant to  
           successfully pass a jurisprudence or California Law and Ethics  
           Examination for the issuance of the temporary license, if the  
           examination is a requirement of all applicants for full licensure.

        5) Specifies that a board within the DCA may adopt necessary  
           regulations to enact this legislation.

        6) Indicates that any temporary license for the practice of medicine  
           may be immediately terminated if it is found that the individual  
           violated any requirements or provided inaccurate information that  
           would affect their eligibility for licensure.

        7) Permits the boards within the DCA to issue a notice to cease the  
           practice of medicine immediately upon receipt of the notification  
           of the termination of the temporary license. 

        8) Specifies that the provisions of the bill shall not apply to a  
           board within DCA that has established a temporary licensing process  
           before January 1, 2014. 

        
        FISCAL EFFECT:  This measure has been keyed "fiscal" by Legislative  
        Counsel.  According to the Assembly Appropriations Committee analysis  





                                                                         AB 186
                                                                         Page 4



        dated April 22, 2013, if the BreEZe system is fully implemented prior  
        to the completion of the regulations for the new provisional license  
        type, the cost to DCA would be under $100,000.  However, if there are  
        delays in the implementation of BreEZe, one-time costs to DCA would be  
        approximately $500,000.
        

        COMMENTS:
        
        1. Purpose.  This bill is sponsored by the Author.  According to the  
           Author, "The wait time for expedited licenses can be very long, and  
           spouses can't even begin seeking employment until their license has  
           been approved.  A December article in USAA Magazine described the  
           process as taking many months even after all appropriate  
           documentation has been submitted, fees being paid, and tests taken  
           to receive the license.  The unemployment rate amongst military  
           spouses is estimated to be about 26% which is three times the  
           national average." 

        2. Background.  According to a 2005 study conducted by the RAND  
           National Defense Research Institute, the majority of military  
           spouses are less likely to be employed, more likely to be seeking  
           work and earn less than comparable civilian spouses.  Military  
           spouses versus civilian spouses are more likely to live in  
           metropolitan areas.  Moreover, they are more likely to have  
           graduated from high school and to have some college education.   
           These facts would ostensibly increase their employability.   
           However, due to "military lifestyle" which includes frequent moves,  
           deployments and long hours that keep service members from assisting  
           with parenting, employment opportunities for spouses are negatively  
           impacted.

        Current data suggests:

                   68% of married military members report that their spouse's  
               ability to maintain a career impacts their decision to remain  
               in the military.

                   67% of military spouses report that they want or need to  
               work.

                   The annual percent of the military spouse population that  
               moves across state lines is 14.5%, compared to 11% for civilian  
               spouses.

                   As much as 34% of military spouses in the labor force are  





                                                                         AB 186
                                                                         Page 5



               required to be fully licensed.

                   19% of employed spouses experience challenges maintaining  
               their licenses. 

        1. United States Department of Defense (DOD) and Department of the  
           Treasury (DOT) Report.  On January 24, 2011, United States  
           President Barack Obama presented Strengthening Our Military  
           Families:  Meeting America's Commitment, a document urging agencies  
           to support and improve the lives of military families.

        As a result of the President's directive, the United States DOT and  
           the United States DOD issued a joint report to highlight the impact  
           of state occupational licensing requirements on the careers of  
           military spouses, who frequently move across state lines.  Released  
           in February 2012, the report, Supporting our Military Families:   
           Best Practices for Streamlining Occupational Licensing Across State  
           Lines revealed that approximately 35% of military spouses work in  
           professions that require state licenses or certification and that  
           military spouses are ten times more likely to have moved to another  
           state in the last year compared to their civilian counterparts. 

        The report also listed jobs military spouses commonly accepted and  
           revealed how licensing requirements impacted employment  
           opportunities:  "Teaching is the most common occupation among  
           military spouses, followed by child care services, and nursing.   
           While many of the common occupations among military spouses are not  
           licensed, some of the most popular professions, including teaching  
           and nursing, do require licensure.  In a 2008 Defense Manpower Data  
           Center survey of active duty military spouses, participants were  
           asked what would have helped them with their employment search  
           after their last military move.  Nearly 40% of those respondents  
           who have moved indicated that 'easier state-to-state transfer of  
           certification' would have helped them."

        As a result of the survey, the United States DOT and DOD issued  
           several recommendations, including the authorization of temporary  
           licenses for military spouses if the applicant met state  
           requirements.  The report's recommendation specified:  "Temporary  
           licenses allow applicants to be employed while they fulfill all of  
           the requirements for a permanent license including examinations or  
           endorsement(s), applications and additional fees.  In developing  
           expedited approaches that save military spouses time and money, DOD  
           does not want to make licensure easier for military spouses to  
           achieve at the expense of degrading their perceived value in their  
           profession." 





                                                                         AB 186
                                                                         Page 6




           In February of 2014, the Military Spouse Employment Report was  
           released.   According to data in the report, there were  
           approximately 725,877 spouses of DOD Active Duty members and  
           approximately 413,295 spouses of Reserve and Guard members in 2010.  
            According to the Veterans Administration's(VA) 2010 NationalSurvey  
           of Veterans,        it is estimated that there are more than 15  
           million veterans' spouses in the United States and more than 5.8  
           million surviving    spouses of veterans in the U.S.   

        2. Military Spouses Employment Partnership.  On June 29, 2011, the  
           Military Spouse Employment Partnership (MSEP) was launched at the  
           Chamber of Commerce in Washington, D.C.  The MSEP program is an  
           expansion of the Army Spouse Employment Partnership program and is  
           focused on helping military spouses from all branches of the  
           military attain financial security and achieve educational and  
           employment goals.

        Through a website, the MSEP creates a gateway for military spouses and  
           corporate and non-profit organizations to interact.  The MSEP has  
           been the latest development in an effort backed by President Barack  
           Obama's administration to do more to help military families.  In  
           May of 2012, 34 companies joined the MSEP and pledged to recruit,  
           hire, promote and retain military spouses in portable careers.

        3. Expedited Licensure for Military Spouses.  In 2012,  AB 1904  (Block,  
           Chapter 399, Statutes of 2012) was passed.  This bill required all  
           licensing entities under the DCA to issue an expedited license to  
           the spouse or domestic partner of a military member on active duty,  
           beginning January 1, 2013.  The DCA reports that across all boards  
           under its jurisdiction, approximately 90 expedited licenses have  
           been granted to military spouses or domestic partners.

        4. Arguments in Support.  The  Easter Seals Disability Services   
           supports the bill and writes, "Easter Seals recognizes how  
           difficult it is for military spouses to find meaningful employment  
           when their families are regularly relocated to other military  
           installations as a result of their spouses' military careers?AB 186  
           would help to address barriers to employment for military spouses  
           by allowing military spouses who have a valid license for the same  
           profession in another state to secure a temporary California  
           license.  The bill represents a meaningful step forward in  
           addressing an employment challenge currently faced by thousands of  
           military families who proudly serve our nation in the United States  
           Armed Forces."






                                                                         AB 186
                                                                         Page 7



           The  Medical Board of California  is in support of the bill and  
           writes, "In order to ensure consumer protection, the Board  
           requested that language be amended into the bill that would allow  
           for termination of the temporary license if it is found that the  
           individual issued the temporary license violated any requirements  
           in the bill or provided substantive inaccurate information that  
           would affect their eligibility of licensure.  The Board would like  
           to thank you and your staff for working with us on the bill and  
           including language in your bill to address our concern.  The Board  
           is pleased to be in support of AB 186."

        5. Support if Amended.  The California Board of Accountancy  (CBA) also  
           supports the bill if amended.  In their letter they write, "The CBA  
           supports the military and their families; however, it would like to  
           request an amendment to clarify that an individual's license must  
           be current, active and unrestricted with the authority to practice  
           the identified profession in the state that issued the individual's  
           license." 

           The  California Architects Board  states their request for an  
           amendment which will include an additional exemption for the  
           Landscape Architect Technical Committee:

           "This section shall not pally to architects or landscape architects  
           as licensed pursuant to the Architects Practice Act and Landscape  
           Architects Practice Act, respectively."

        6. Oppose Unless Amended.  The  Contractors State License Board  (CSLB)  
           as well as the  United Contractors  (UCON) have taken an oppose  
           unless amended position on AB 186 and similarly write in their  
           letters that both UCON and CSLB support the goal of assisting  
           military families.  However, they do not believe that the CSLB  
           licensing process is so long as to require the need for a temporary  
           license.  Additionally, the bill applies to applicants who hold a  
           license in good standing in another state, district, or territory.   
           CSLB only has limited reciprocity with 3 other states, for a few of  
           California's 43 license classifications.  Only about half of the  
           other states license at the state level and the scope of the  
           license varies in each jurisdiction, which would make it difficult  
           to use a license from another state to qualify for a license here.

        7. Arguments in Opposition.  The  California Fence Contractors'  
           Association  of the American Fence Association,  Marin Builders  
           Association  , and the  Flasher Barricade Association  oppose the  
           measure and state in their letter, "While this measure is  
           well-meaning, it would undermine and/or complicate the Contractors'  





                                                                         AB 186
                                                                         Page 8



           License Board's (CSLB) licensing system?The CSLB only has limited  
           reciprocity with 3 other states, for a few of their license  
           classifications; however, they issue licenses in 44  
           classifications. Only about half of the other states license at the  
           state level (in others, it's is [sic] done at a local level) and  
           the scope of the license varies in each jurisdiction.  As an  
           example, California has a general building license, which covers  
           all types of constructions, whereas some other state's license  
           [sic] based on residential building or commercial  
           construction?Beyond testing and the background check, the other  
           main part of California's license process is the experience  
           requirement (we do not have an education requirement).  It is also  
           important to note that California does have a process currently in  
           place for an applicant to request to expedite an application." 

        8. The  Board of Behavioral Sciences  (BBS) submitted a letter  
           reflecting their support if amended position.  In it they state,  
           "The BBS supports the intent of this bill to assist spouses of  
           military members to quickly obtain employment.  However, the Board  
           respectfully requests three additional amendments in order to  
           ensure consumer protection is upheld:
           
                   An amendment to require that the temporary license  
               applicant provide a transcript to the licensing board;

                   An amendment requiring the temporary license applicant to  
               pass the Board's California Law and Ethics examination prior to  
               the issuance of the temporary license; and, (Note: recent  
               amendments to the bill require applicants to pass the Law and  
               Ethics examination)

                   An amendment allowing delayed implementation to  
               accommodate DCA's transition to the new BreEZe database  
               system."

        1. Policy Issues for Consideration.  The goal and spirit of this  
           legislation is to promote expedited licensure for military spouses  
           and domestic partners.  As illustrated in the background section of  
           this analysis, the need for this action has been well studied and  
           documented.  Further, there is a federal effort to encourage state  
           licensing entities to adopt policies that will assist in expediting  
           the licensure process for military spouses.  In response, the  
           California Legislature passed AB 1904 in 2012.  AB 186 attempts to  
           promote even more timely expedition of licenses by the DCA  
           licensing entities by granting an immediate provisional license for  
           a military spouse to practice in California.  Concern remains that  





                                                                         AB 186
                                                                         Page 9



           this bill may be premature as there has not been adequate time to  
           thoroughly study the results of the new expedited licensure  
           requirements that went into effect on January 1, 2013. 

           Though the language in the bill requires an applicant to submit  
           written verification from their original licensing jurisdiction  
           stating that the applicant's license in good standing, the bill  
           does not specify that the license needs to be current, active and  
           unrestricted.  This is of utmost importance in order to ensure  
           consumer protection and maintain California's high standards of  
           enforcement and regulation.  As such, the Author may want to add  
           language to the bill that would specify that "good standing" is  
           defined as a current, active an unrestricted license, in the  
           jurisdiction in which the applicant received their license. 

        
        SUPPORT AND OPPOSITION:
        
         Support:  
        Easter Seals Disability Services
        Medical Board of California
        78 individuals

         Support if Amended:
         California Board of Accountancy
        California Architects Board

         Oppose Unless Amended:
         Contractor's State Licensing Board
        United Contractors
         
        Oppose
         California Fence Contractors Association
        Marin Builders Association
        Flasher Barricade Association
        Board of Behavioral Sciences


        Consultant:Le Ondra Clark, Ph.D.