BILL ANALYSIS                                                                                                                                                                                                    �







         ----------------------------------------------------------------------- 
        |Hearing Date:April 28, 2014        |Bill No:SB                         |
        |                                   |1416                               |
         ----------------------------------------------------------------------- 


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

                          Bill No:        SB 1416Author:Block
                         As Amended:April 10, 2014 Fiscal:  No

        
        SUBJECT:  Dentistry: fees.
        
        SUMMARY:  Establishes a fee of $525 that the Dental Board of  
        California (DBC) would assess for initial dental licensure and  
        biennial renewal of licensure. 

        Existing law:
        
        1) Provides for the licensure and regulation of the practice of  
           dentistry by the DBC.  (Business and Professions Code (BPC) �  
           1601.1)

        2) Requires the DBC to examine all applicants for a license to  
           practice dentistry and to collect and apply all fees.   (BPC �  
           1724)

        3) Requires the charges and fees for licensed dentists to be  
           established by the DBC for the purpose of carrying out the  
           responsibilities required by these provisions.  
        (BPC � 1724 et seq.)

        4) Prohibits the fee for an initial license and for the renewal of the  
           license from exceeding $450. (BPC � 1724 (d))

        This bill:  Sets the fee for an initial license and renewal license to  
        $525.

        FISCAL EFFECT:  Unknown. This bill has been keyed "fiscal" by  
        Legislative Counsel.






                                                                        SB 1416
                                                                         Page 2



        COMMENTS:
        
        1. Purpose.  This bill is sponsored by the  Dental Board of California   
           (DBC).  According to the Author, averting or delaying an immediate  
           fee increase will cause the DBC to become insolvent in Budget Year  
           2015-2016.  In order to provide better public protection, the DBC  
           has made enhancements to its enforcement program over the last  
           fifteen years.  These enhancements have included increased  
           analytical and investigative staffing to process and investigate  
           consumer complaints in an effective and efficient manner.  The  
           proposed fee increases will support the DBC's enforcement program  
           so that it may continue to process and investigate consumer  
           complaints efficiently and effectively. 

        2. Background.  The Committee requested that the DBC complete a fee  
           bill worksheet (see attached worksheet for more detailed  
           information).   

             a)    Initial and Renewal Licensure Fees  .  DBC's initial licensure  
              and biennial 
              renewal fees of $365 have been in effect since 1998.  BPC � 1724  
              (d) authorizes the DBC to establish a fee for an initial DDS  
              license and for the renewal of a DDS license up to a maximum of  
              $450.  These fees are utilized by the DBC to carry out its  
              responsibilities including: issuing licenses to eligible  
              applicants; investigating complaints against licensees and  
              disciplining licensees for violations of the Act; monitoring  
              licensees whose licenses have been placed on probation and  
              managing the Diversion Program for licensees whose practice may  
              be impaired due to abuse of dangerous drugs or alcohol.  Since  
              BPC � 1724 provides the DBC with authorization to establish a  
              fee up to a specified maximum amount, the DBC has historically  
              established the actual fee amounts via regulation (California  
              Code of Regulations, Title 16 � 1021).

             b)    State Dentistry Fund Condition  .  According to the State  
              Dentistry Fund Condition for the Governor's Budget 2014-2015,  
              the DBC is projecting a fund balance deficit of $2.239 million  
              in Budget Year 2015-2016, as well as an ongoing fund balance  
              deficit thereafter.  The DBC has worked in consultation with the  
              DCA Budget Office and has determined that it is necessary for  
              the DBC to increase the initial licensure and biennial renewal  
              fees assessed to its dentist licensees.  

              The proposed fee increase would impact the following individual  
              dentist licensees:





                                                                        SB 1416
                                                                         Page 3




                           Applicants for Initial Licensure/ Licensees  
                   Seeking Biennial Renewal

                           Inactive Licensees

                           Licensees on Retirement Status

                           Licensees on Disability Status

                           Oral and Maxillofacial Surgery Permit-Holders

                           Applicants for Fictitious Name Permits

                           Delinquent Retirement/Disability Renewal
               
              If the DBC is not authorized to increase the fees, the following  
        will likely occur:

                           Reduction of staff, operating resources and  
                   equipment .

                           Delayed response times to licensing inquiries and  
                   application approvals.

                         Delays in enforcement, such as delays in processing  
                  consumer complaints, conducting investigations and referring  
                  egregious cases to the Attorney General's Office for  
                  prosecution.


             a)    State Specific Licensing Requirements  .  The increase of  
              initial licensure and biennial fees to $525 on January 1, 2015,  
              would be comparable to the licensing renewal fees for dentists  
              in other states and well below the biennial licensing renewal  
              fees for other healing arts professions within California, as  
              illustrated in the following tables.

                  Licensing Renewal Fees for Dentists in Other States
        
         ------------------------------------------------------------------- 
        |State           |Amount          |Frequency       |Avg. Cost Per   |
        |                |                |                |Year            |
        |----------------+----------------+----------------+----------------|
        |Arizona         |$650            |Every 3 years   |$216            |
        |----------------+----------------+----------------+----------------|





                                                                        SB 1416
                                                                         Page 4



        |California      |$450            |Every 2 years   |$225            |
        |----------------+----------------+----------------+----------------|
        |Nevada          |$600            |Every 2 years   |$300            |
        |----------------+----------------+----------------+----------------|
        |New Mexico      |$550            |Every 3 years   |$183            |
        |----------------+----------------+----------------+----------------|
        |Texas           |$350            |Every year      |$350            |
        |                |                |                |                |
         ------------------------------------------------------------------- 

             Biennial Licensing Renewal Fees for Other Professions within  
                                      California
        
         ----------------------------------------------------------------- 
        |Profession                      |Amount                          |
        |--------------------------------+--------------------------------|
        |Attorney                        |$900                            |
        |--------------------------------+--------------------------------|
        |Naturopathic Doctor             |$800                            |
        |--------------------------------+--------------------------------|
        |Physician                       |$808                            |
        |--------------------------------+--------------------------------|
        |Podiatrist                      |$900                            |
        |--------------------------------+--------------------------------|
        |Psychologist                    |$420                            |
        |                                |                                |
         ----------------------------------------------------------------- 
         
         1. Arguments in Support.   The Dental Board of California  (Sponsor)  
           supports the bill and writes, "This bill will enable the Board to  
           sustain operations to effectively protect consumers through its  
           licensing and enforcement functions."


        SUPPORT AND OPPOSITION:
        
         Support:  

        Dental Board of California (sponsor)

         Opposition:  

        None on file as of April 21, 2014








                                                                        SB 1416
                                                                         Page 5



        Consultant:Le Ondra Clark, Ph.D.