BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 1416
          Author:   Block (D)
          Amended:  4/10/14
          Vote:     21


           SENATE BUSINESS, PROF. & ECON. DEV. COMM.  :  8-1, 4/28/14
          AYES:  Lieu, Berryhill, Block, Corbett, Galgiani, Hernandez,  
            Hill, Padilla
          NOES:  Wyland


           SUBJECT  :    Dentistry:  fees

           SOURCE  :     Dental Board of California


           DIGEST  :    This bill establishes a fee of $525 that the Dental  
          Board of California (DBC) will assess for initial dental  
          licensure and biennial renewal of licensure; and makes  
          legislative findings and declarations.

           ANALYSIS  :    

          Existing law:

          1.Provides for the licensure and regulation of the practice of  
            dentistry by DBC.

          2.Requires DBC to examine all applicants for a license to  
            practice dentistry and to collect and apply all fees.

          3.Requires that the charges and fees for licensed dentists be  
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            established by DBC for the purpose of carrying out the  
            responsibilities required by these provisions.

          4.Prohibits the fee for an initial license and for the renewal  
            of the license from exceeding $450.

          This bill sets the fee for an initial dentist license and  
          renewal license to $525; and makes legislative findings and  
          declarations.

           Background

          Initial and renewal licensure fees  .  DBC's initial licensure and  
          biennial renewal fees of $365 have been in effect since 1998.   
          Business and Professions Code Section 1724(d) authorizes DBC to  
          establish a fee for an initial dentist license and for the  
          renewal of a dentist license up to a maximum of $450.  These  
          fees are utilized by DBC to carry out its responsibilities  
          including issuing licenses to eligible applicants; investigating  
          complaints against licensees and disciplining licensees for  
          violations of the Dental Practice 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 DBC is  
          authorized to establish a fee up to a specified maximum amount,  
          DBC has historically established the actual fee amounts via  
          regulation (California Code of Regulations, Title 16, Section  
          1021).

           State Dentistry Fund Condition  .  According to the State  
          Dentistry Fund Condition for the Governor's Budget 2014-2015,  
          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.  DBC has worked in consultation with the  
          Department of Consumer Affairs' Budget Office and has determined  
          that it is necessary for DBC to increase the initial licensure  
          and biennial renewal fees assessed to its dentist licensees.

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

           Applicants for Initial Licensure/Licensees Seeking Biennial  
            Renewal;
           Inactive Licensees;

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           Licensees on Retirement Status;
           Licensees on Disability Status;
           Oral and Maxillofacial Surgery Permit-Holders;
           Applicants for Fictitious Name Permits; and
           Delinquent Retirement/Disability Renewal.

          If 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.

           State Specific licensing requirements  .  The increase of initial  
          licensure and biennial fees to $525 on January 1, 2015, is  
          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      |
          |----------------+--------------+-----------------+----------------|
          |   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

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           ------------------------------------- 
          |      Profession      |    Amount    |
          |----------------------+--------------|
          |       Attorney       |     $900     |
          |----------------------+--------------|
          | Naturopathic Doctor  |     $800     |
          |----------------------+--------------|
          |      Physician       |     $808     |
          |----------------------+--------------|
          |      Podiatrist      |     $900     |
          |----------------------+--------------|
          |     Psychologist     |$420          |
          |                      |              |
           ------------------------------------- 

           Comments
           
          According to the author's office, averting or delaying an  
          immediate fee increase will cause DBC to become insolvent in  
          Budget Year 2015-2016.  In order to provide better public  
          protection, DBC has made enhancements to its enforcement program  
          over the last 15 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 DBC's  
          enforcement program so that it may continue to process and  
          investigate consumer complaints efficiently and effectively. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  4/29/14)

          Dental Board of California (source)

           ARGUMENTS IN SUPPORT  :    The bill's sponsor, the Dental Board of  
          California writes, "This bill will enable the Board to sustain  
          operations to effectively protect consumers through its  
          licensing and enforcement functions."


          MW:e  4/29/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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