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 ----------------------------------------------------------------- |Author: |Baker | |----------+------------------------------------------------------| |Version: |June 1, 2015 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Sarah Huchel | |: | | ----------------------------------------------------------------- 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 AB 773 (Baker) Page 2 of ? 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 AB 773 (Baker) Page 3 of ? 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 AB 773 (Baker) Page 4 of ? 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: AB 773 (Baker) Page 5 of ? California Board of Psychology (Sponsor) California Psychological Association Medical Board of California Opposition: None on file as of June 2, 2015. -- END --