BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
                              Senator Jerry Hill, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 773          Hearing Date:    June 8,  
          2015
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          |Author:   |Baker                                                 |
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          |Version:  |June 1, 2015                                          |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Sarah Huchel                                          |
          |:         |                                                      |
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              Subject:  Licenses: Medical Board of California: Board of  
                                     Psychology.


          SUMMARY:  Recasts the expiration dates for certain licenses,  
          certificates, and registrations issued by the Medical Board of  
          California (MBC) and the Board of Psychology (BOP) based on the  
          date of issuance instead of a licensee's birthdate.   

          Existing law:
          
            1)  Authorizes the MBC to issues licenses to physicians and  
              surgeons, licensed midwives, dispensing opticians, spectacle  
              lens dispensers, and contact lens dispensers.  (Business and  
              Professions Code (BPC) §§ 2080, 2512, 2550, 2559.1, 2560.)  

            2)  Establishes the BOP to provide for the licensure and  
              regulation of licensed psychologists.  (BPC § 2901 et seq.)

            3)  States that all physician and surgeon's certificates,  
              certificates to practice podiatric medicine, registrations  
              of spectacle lens dispensers and contact lens dispensers,  
              and certificates to practice midwifery shall expire at 12  
              midnight on the last day of the birth month of the licensee  
              during the second year of a two-year term if not renewed.   
              (BPC § 2423 (a)(1)). 

            4)  Requires dispensing optician registrations to expire at  
              midnight on the last day of the month in which the license  







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              was issued during the second year of a two-year term if not  
              renewed.  (BPC § 2423 (a)(2)). 

            5)  States that all psychologist licenses expire and become  
              invalid at midnight on the last day of February, 1980, and  
              thereafter expire at midnight of the legal birth date of the  
              licensee during the second year of a two-year term if not  
              renewed.  
            (BPC § 2982)

            6)  Requires the BOP to establish regulations for the  
              administration of the birth date renewal program including  
              the establishment of a pro rata formula for the payment of  
              fees by licentiates affected by the implementation of that  
              program, and the establishment of a staggered license  
              application system so that a relatively equal number of  
              licensees expire annually.  (BPC § 2982)

          
          This bill:

          1) Deletes code sections requiring that all licenses,  
             certificates, permits, and registrations issued by the MBC  
             expire and become invalid at 12 midnight on the last day of  
             February of each even-numbered year if not renewed.

          2) Deletes the current birthdate renewal system for physician  
             and surgeon's certificates, registrations for spectacle lens  
             dispensers and contact lens dispensers, certificates to  
             practice midwifery, and psychologist licenses.

          3) Requires that all physician and surgeon's certificates,  
             registrations for spectacle lens dispensers and contact lens  
             dispensers, and certificates to practice midwifery expire at  
             12 midnight on the last day of the month in which the license  
             was issued  during the second year of a two-year term  
             commencing from the date of issuance. 

          4) Makes technical changes.

          
          FISCAL  
          EFFECT:  This bill is keyed "fiscal" by Legislative Counsel.   
          According to the Assembly Appropriations analysis, dated April  








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          22, 2015:

          1)Minor revenue losses to the BOP, potentially in the range of  
            $100,000 (Psychology Fund).   Because initial licenses will be  
            valid for longer, the BOP will receive slightly less revenue  
            starting in 2017, and in each subsequent year, due to a time  
            lag (as compared to current practice) in receiving initial  
            license renewal fees.  Put another way, the current practice  
            of an abbreviated initial licensure period requires licensees  
            on average to pay slightly more, and allows the BOP to collect  
            slightly more fee revenue, than what would be the case under  
            this bill.   


          2)Costs to the BOP to change business processes and systems are  
            minor and absorbable. 



          COMMENTS:
          
          1. Purpose.  This bill is sponsored by the Board of Psychology  
             (BOP).  This bill changes the expiration and renewal cycle  
             for physician and surgeon's certificates, registrations for  
             spectacle lens dispensers and contact lens dispensers,  
             certificates to practice midwifery, and psychology licenses  
             from a system based on an applicant's birth date to one based  
             on the date of license issuance. 

          2. Background.  Current law requires the BOP and MBC to use  
             birth dates to determine the renewal and expiration dates for  
             licenses.  The birth date renewal system issues licenses for  
             a period of time ranging between 12 and 24 months depending  
             on the licensee's birth month.  If, for example, a licensee  
             has a February birth date and his or her license is issued in  
             March 2014, the license will expire at midnight on February  
             29, 2016.  If, however, a licensee has a March birthday and  
             his or her license is issued in March 2014, the license will  
             expire at midnight on March 31, 2015. 

             In these examples, the license in the first scenario will  
             expire after nearly 2 years, but in the second scenario, the  
             license will expire after 12 months and 5 days. Despite the  
             varying expiration dates, both licensees would need to pay  








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             the same initial license fee.  

             According to the Author's office, "The birth date renewal  
             system places an unfair financial burden on first-time  
             licensees because all licenses have an equal fee regardless  
             of how long the license lasts."  This bill will standardize  
             the length of time a license expires after issuance. 

          3. Related Legislation.   AB 483  (Patterson) of 2015 would  
             require fees imposed, as specified, for an initial license,  
             an initial temporary or permanent license, or an original  
             license to be prorated on a monthly basis.  (  Status  :  This  
             bill is pending on the Assembly floor.)

             AB 1758  (Patterson) of 2014 would have required the initial  
             license fee for the following licensing categories to be  
             prorated on a monthly basis: dentists; dental hygienists;  
             physicians and surgeons; hearing aid dispensers; occupational  
             therapists; physical therapists; psychologists; veterinary  
             technicians; veterinarians; acupuncturists; and architects.   
             (  Status  :  This bill was held in the Senate Appropriations  
             Committee.) 

              SB 2014  (Machado) of 2002 would have directed the MBC to  
             prorate its annual licensing fees in cases where the initial  
             licensure period is less than two years, and deleted an  
             obsolete oral examination fee authority.  (  Status  :  This bill  
             was held in the Senate Appropriations Committee.) 

          4. Arguments in Support.  The BOP writes, "First time licensees  
             of the [BOP] are currently paying the full license amount for  
             their license when they are not always receiving that license  
             for the complete two-year period.  First time licensees are  
             at the start of their careers as psychologists and have often  
             incurred significant student debts in the process of earning  
             undergraduate and postgraduate degrees.  The establishment of  
             an initial license period that is always 24 months will stop  
             these licensees paying a full fee for an abbreviated license  
             period." 
          

          SUPPORT AND OPPOSITION:
          
           Support:  








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          California Board of Psychology (Sponsor)
          California Psychological Association
          Medical Board of California

           Opposition:  

          None on file as of June 2, 2015.

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