Date of Hearing:

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Evan Low, Chair

ABPCA Bill Id:AB 544

Author:(Brough) – As Amended Ver:March 21, 2019

SUBJECT: Professions and vocations: inactive license fees and accrued and unpaid renewal fees.

SUMMARY: Limits the maximum fee for the renewal of a license in an inactive status to no more than 50% of the renewal fee for an active license. Prohibits a board from requiring payment of accrued and unpaid renewal fees as a condition of reinstating an expired license or registration.

EXISTING LAW:

1. Establishes the inactive category of health professionals’ licensure. An inactive license or certificate allows a person who has a license or certificate in the healing arts, but is not active in the practice of his or her profession, to maintain his or her license or certificate. (Business and Professions Code (BPC) § 700)
2. Requires a healing arts board to issue an inactive license or certificate to a current holder of an active license or certificate whose license or certificate is not suspended, revoked, or otherwise punitively restricted by that board. (BPC § 701)
3. Prohibits the holder of a healing arts inactive license or certificate from engaging in any activity for which an active license or certificate is required. (BPC § 702)
4. Requires the renewal fee for an active license or certificate in the healing arts to also apply to the renewal of an inactive license or certificate in the healing arts. (BPC § 703)
5. Application of delinquency fees or accrued and unpaid renewal fees for the renewal of expired licenses or registrations shall not apply to licenses or registrations that have lawfully been designated as inactive or retired. (BPC § 121.5)
6. Established that any of the boards, bureaus, commissions, or programs within the Department of Consumer Affairs may establish, by regulation, a system for an inactive category of licensure for persons who are not actively engaged in the practice of their profession or vocation. (BPC § 462)

THIS BILL:

1. Reduces the barrier of reentry for someone with an inactive or expired license.
2. Limits the maximum fee for the renewal of a license in an inactive status to no more than 50% of the renewal fee for an active license.
3. Prohibits a board from requiring payment of accrued and unpaid renewal fees as a condition of reinstating an expired license or registration.

FISCAL EFFECT: Unknown. This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose. This bill is authored sponsored. According to the author, “This bill would help reduce the barrier to reenter the workforce. Licensed professionals who decide to let their licenses lapse for a period of time in order to focus on raising children, dealing with personal or family illness, or other life events should not be penalized to reactive their license. Under current law, a board can accrue renewal fees as a requirement to reactive a license. It is not fair to require those individuals to pay several years of accrued renewal fees to reinstate the license and start working again.”

Background. According to a report by the Little Hoover Commission, one in five Californians must receive permission from the government to work. For a lower-income licensed occupation in California, applicants, on average, pay $300 in licensing fees, spend 549 days in education and training, and pass one exam.

The purpose of occupational licensing is consumer protection; however there are certain regulations in place that have erected barriers to entry or reentry into occupations.

The California Department of Consumer Affairs’ licensing boards have varying provisions related to placing licenses on inactive status and/or for reinstating a license that has been allowed to lapse/expire.

Some licensed professionals are allowed to place licenses on inactive status, but in most cases are still required to pay the full biennial license fees even though they are not engaging in the profession at all. Other licensing boards do not have a specific category of “inactive license,” thus providing only the option of letting the license expire. While some professions are allowed to reinstate an expired license within five years, many of those are required to pay all accrued renewal fees in addition to any applicable delinquency fees.

Prior Related Legislation.

AB 1659 (Low, 2018) Authorizes healing arts licensing boards to establish lower renewal fees for inactive licenses than for active licenses, and prohibits an inactive license holder from representing that he/she has an active license. Chaptered by the Secretary of State - Chapter 249, Statutes of 2018.

ARGUMENTS IN OPPOSITION:

According to the Speech-Language Pathology and audiology and Hearing Aid Dispensers Board (Board), “This bill would prohibit the Board from collecting full license renewal fees when renewing an expired license, resulting in revenue loss for the Board. This provision of the bill could create a disincentive for licensees to keep their license current and the Board may see an increase in the number of licensees in delinquent status. Meanwhile, these licensees continue to be workload for the Board.”

POLICY ISSUE(S) FOR CONSIDERATION:

It will important to maintain the intent of the bill, which is to remove the barrier of reentry for someone who is a licensed professional. Going forward the author may wish to clean up any technical issues, in order to meet the goals of this bill.

REGISTERED OPPOSITION:

Speech-Language Pathology and audiology and Hearing Aid Dispensers Board

Analysis Prepared by: Danielle Sires / B. & P. / (916) 319-3301

Date of Hearing: May 1, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 544

Author:(Brough) – As Amended Ver:March 21, 2019

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill limits the maximum renewal fee for an inactive license issued by a regulatory board within the Department of Consumer Affairs (DCA) to no more than 50% of the renewal fee for an active license. It also prohibits a board from requiring payment of accrued and unpaid renewal fees as a condition of reinstating an expired license or registration.

FISCAL EFFECT:

1. Total fee revenue reductions to DCA boards and bureaus of nearly $9.6 million (various special funds) annually, potentially threatening the fiscal solvency of several programs. Nearly $6 million of the projected loss results from the prohibition to collect unpaid fees when reinstating an expired license, while approximately $3.7 million results from the required fee reduction to inactive license renewals. The boards or bureaus with the largest projected revenue losses are the Bureau of Automotive Repair with $3.4 million, the Board of Accountancy with $954,000 and the Board of Registered Nursing with $891,000.
2. Estimated costs of $25,000 to update licensing system fees, notices and accrual of licensing fees. These costs are absorbable within existing resources.

COMMENTS:

1. Purpose. This bill seeks to (a) reduce costs for licensees who wish to maintain an inactive license status by capping the annual renewal fee and to (b) reduce costs for former licensees who wish to reinstate an expired license by waiving the payment of unpaid renewal fees as a condition of reinstatement.
2. Background. Existing law allows for the licensure and regulation of professions and vocations by various boards within the DCA and allows a regulatory board to charge a fee to initially acquire and to renew a license. Existing law also allows for a license to be “inactive,” which means the licensee is not allowed to practice and is not allowed to represent that they have the ability to practice. A holder of an inactive license retains the right to later convert the inactive license into an active license after paying a fee and completing any outstanding continuing education requirements. Inactive license holders need not meet continuing education requirements while inactive, but must continue to pay a renewal fee.

Often the fee paid for the renewal of an inactive license is the same as the full fee paid for renewal by active license holders. For certain licenses that have expired, all accrued fees must be paid as a condition of reinstatement of the license.

This bill limits the maximum fee for renewal of an inactive license to 50% of the fee for renewal of an active license and prohibits a board from requiring payment of accrued and unpaid fees as a condition of reinstating an expired license.

1. Prior Legislation. AB 1659 (Low), Chapter 249, Statutes of 2018, authorizes healing arts licensing boards to establish lower renewal fees for inactive licenses than for active licenses and prohibits an inactive license holder from representing that they have an active license.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081