SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No:
Author:
Version:
Urgency:
Consultant:
AB 179
Bonilla
June 30, 2015
No
Sarah Huchel
Hearing Date:
July 6, 2015
Fiscal:
Yes
Subject: Healing arts.
SUMMARY: Extends the operation of the Dental Board of California (DBC) until
January 1, 2020, increases statutory fee caps relating to dentists and dental assistants,
extends the operation of the Board of Vocational Nursing and Psychiatric Technicians
(BVNPT) until January 1, 2018, merges the Vocational Nursing fund and the Psychiatric
Technician funds, and makes other changes as specified.
Existing law:
1) Establishes the Dental Practice Act (Act), administered by the DBC within the
Department of Consumer Affairs (DCA), to license and regulate the practice of
dentistry, and sunsets the DBC on January 1, 2016. (Business and Professions
Code (BPC) §§ 1600, et seq.)
2) Establishes the Dental Assisting Council (DAC) of the DBC, which shall consider all
matters relating to dental assistants in this state, on its own initiative or upon the
request of the Board, and makes appropriate recommendations to the Board and
the standing committees of the Board, as specified. (BPC § 1742)
3) Requires the DBC to establish, as necessary, the amount of charges and fees for
licensure for the purpose of carrying out its responsibilities under the Act, subject to
statutory fee caps. (BPC § 1724)
4) Requires the amount of the fees prescribed by this chapter that relate to the
licensing and permitting of dental assistants to be established by regulation and
subject to statutory fee caps. (BPC § 1725)
5) Requires for licensure as a registered dental assistant satisfactory performance on
a written and practical examination administered by the DBC. (BPC § 1752.1)
6) Provides that a healing arts practitioner who engages in sexual relations with a
patient, client, or customer constitutes unprofessional conduct and grounds for
disciplinary action, except as specified. (BPC § 726)
7) Establishes the BVNPT within the DCA, to license and regulate vocational nurses
under the Vocational Nursing Practice Act, and to license and regulate psychiatric
technicians under the Psychiatric Technicians Law, and extends the operation of
the BVNPT until January 1, 2016. (BPC §§ 2840 et seq., 4500 et seq.)
AB 179 (Bonilla)
Page 2 of 7
8) Establishes the Vocational Nursing and Psychiatric Technicians Fund.
(BPC § 2890)
9) Establishes the Vocational Nursing Account and the Psychiatric Technician
Examiners Account of the Vocational Nursing and Psychiatric Technician Fund.
(BPC § 205)
This bill:
1) Merges the Vocational Nurse Account and the Psychiatric Technician Examiners
Account of the Vocational Nursing and Psychiatric Technicians Fund on July 1,
2016 to become the Vocational Nursing and Psychiatric Technicians Fund.
2) Expands the exception to all hearing arts licensees that it is not unprofessional
conduct for a healing arts licensee to engage in consensual sexual conduct with his
or her spouse or person in an equivalent domestic relationship when that
licensee provides medical treatment, other than psychotherapeutic treatment, for
that person.
3) Extends the DBC’s sunset until January 1, 2020.
4) Consolidates references to fees in the general fee provisions section and increases
fee amounts, as specified.
5) Requires every applicant and licensee who has an electronic mail address to report
to the DBC that electronic mail address no later than July 1, 2016. The electronic
mail address shall be considered confidential and not subject to public disclosure.
6) Requires the DBC to annually send an electronic notice to each applicant and
licensee that requests confirmation from the applicant or licensee that his or her
electronic mail address is current.
7) Limits the term of a member of the DAC to no more than two full terms.
8) Consolidates the funds of the BVNPT, as specified.
9) Extends the sunset date on the BVNPT until January 1, 2018.
10) Makes clarifying and technical amendments.
FISCAL EFFECT: This bill has been keyed “fiscal” by the Legislative Counsel.
According to the Assembly Appropriations Committee analysis dated May 20, this bill
will have the following fiscal effect:
1) $14.6 million annually (State Dentistry Fund), until January 1, 2020, to maintain
current operations of the DBC.
2) $11.2 million annually (Vocational Nursing and Psychiatric Technicians Fund), until
January 1, 2018, to maintain current operations of the BVNPT.
AB 179 (Bonilla)
Page 3 of 7
3) Unknown potential increased revenues, if DBC adopts regulations to raise fees
based on the increased fee caps.
COMMENTS:
1.
Purpose. This bill is sponsored by the Author. According to the Author’s office,
“This bill is necessary to ensure that consumers are protected by the continued
operation of the DBC and the BVNPT. The DBC’s sunset bill raised numerous
issues, including the adequacy of the Dentistry Fund condition. The DBC has been
operating with a major structural deficit, and is faced with impending deficits. Prior to
recent increases to its initial and renewal licensure fees, the DBC had not raised
fees for nearly two decades. A recent audit of the DBC’s finances shows that the
cost for licensure and permitting categories do not sufficiently cover the cost for that
license or permit. As a result, this bill proposes to increase statutory fee caps across
all categories to let the DBC begin to recover its costs, help solve its structural
imbalance, and build a healthy reserve. These fee caps are intended to carry the
DBC over for many years, and any actual increase in fees would need to go through
the regulatory process, thereby ensuring that licensees may voice any concerns to
potential increases. This bill would also extend the sunset date for the DBC until
January 1, 2020.
The Author notes that “In addition, on February 13, 2012, the BVNPT approved a
merger of the vocational nursing fund and the psychiatric technician fund as an
alternative to a statutory amendment to raising fees for the psychiatric technician
fees. This bill would advance the fiscal solvency of the BVNPT by merging these
funds. The bill will also increase accountability by extending the BVNPT's sunset
date only until January 1, 2018, thereby increasing legislative oversight of the
BVNPT in light of the significant issues raised in the BVNPT's sunset background
paper.”
2. Background. This is one of several bills resulting from the 2015 Sunset Reviews
by the Senate Committee on Business, Professions, and Economic Development
and the Assembly Business and Professions Committee.
3. Dental Board Fund Condition. The Dentistry Fund is maintained by the DBC and
includes the revenues and expenditures related to licensing dentists. For sixteen
years, the license fee for dentists was set at $365. Between 2013 and 2014, the
DBC increased its license fee for dentists from $365 to its statutory cap of $450 and
simultaneously pursued a legislative fee increase $450 to $525. This was aligned
with a DCA audit recommending that the license fees be raised to that amount
ensure solvency.
While increased fees have generated additional revenue, the DBC's expenditures
continue to outpace its revenue, perpetuating a structural imbalance. Part of the
reason for the increase in projected and actual expenditures in recent years has
been due to funding 12.5 Consumer Protection Enforcement Initiative (CPE)
positions; funding the diversion program; increased expenses associated with
BreEZe; unexpected litigation expenses; and the general increase in the cost of
doing business over the past 16 years. While the DBC has expended less than
what it has been authorized by the budget due to some cost savings and
AB 179 (Bonilla)
Page 4 of 7
reimbursements, the DBC emphasizes that its fund ought to be able to sustain
expenditures without relying on estimated savings or reimbursements.
The DBC shared the result of its recent fee audit, which discovered that in addition
to the DBC's operational imbalance it is limited in its ability to recover the true cost of
licensure and regulation for dentists and dental assistants based on many of the set
fees, which do not cover the actual costs. In light of this fee audit, the DBC is
requesting an increase in all statutory fee caps relating to dentists and dental
assistants, including, but not limited to, those fees relating to licensure, permits, and
examinations.
While some of these fee increases are dramatic, they reflect the fact that many of
these fee caps have not been raised in nearly up to two decades. The DBC's intent
is for this large increase in statutory fee caps to cover its potential need to increase
fees over a period of many years, including beyond the next sunset period. The
DBC would have to raise any fees through the regulatory process, however,
ensuring that there will be additional time and robust opportunity for public
participation prior to the increase of any fee. The proposed increases are as follows:
License, Certificate or Permit
Elective Facial Cosmetic Surgery
Permit-Initial Appl
Current Fee
Amt.
Statutory
Limit
Proposed Fee
Cap
500.00
500.00
$4,000
525.00
525.00
$650
DDS Biennial Renewal
Oral & Maxillofacial Surgery Permit
Renewal
Fictitious Name Permit Initial
Application
525.00
525.00
$1,200
450.00
450.00
$1,200
450.00
Not > $450
or < $5
$1,200
Special Permit-Initial Appl.
300.00
300.00
$1,000
License by Credential Appl.
283.00
0.00
$1,000
License by Residency
100.00
License by Portfolio
350.00
350.00
$1,500
Initial WREB Appl.
100.00
500.00
$1,000
250.00
250.00
$500
250.00
350.00
$4,500
Fictitious Name Permit Renewal
225.00
Not > $450 Or
< $5
$600
Conscious Sedation Permit Initial
Application
200.00
250.00
200.00
250.00
$600
200.00
200.00
250.00
250.00
$1,000
Initial DDS License
(pro-rated fee)
Registered Provider-Initial
Appl.(continuing education)
Onsite Inspection Fee for GA/CS
Permits
Conscious Sedation Permit Renewal
General Anesthesia Permit Initial
Application
General Anesthesia Permit Renewal
$1,000
$1,000
AB 179 (Bonilla)
Page 5 of 7
$600
Oral Conscious Sedation Initial
Certificate
Elective Facial Cosmetic Surgery
Permit Renewal
200.00
Admin/Enf
Costs
$1,000
200.00
200.00
$800
150.00
500.00
$1,000
100.00
200.00
$750
Special Permit Renewal
100.00
100.00
$600
Additional Office Permit Renewal
Oral Conscious Sedation Certificate
Renewal
100.00
$375
75.00
100.00
Admin/Enf
Costs
2.00
2.00
$125
Oral & Maxillofacial Surgery PermitInitial Appl.
Additional Office Permit Initial
Application
License Certification
RDA Fees
Current Fee
Amount
Statutory
Limit
$600
Proposed Fee
Cap
RDAEF Program Curriculum
1400.00
1400.00
$7,500
RDA Program Curriculum
1400.00
1400.00
$7,500
OA Permit Course Approval
300.00
300.00
$2,000
DSA Permit Course Approval
300.00
300.00
$2,000
Infection Control Course Approval
300.00
300.00
$2,000
Coronal Polish Course Approval
300.00
300.00
$2,000
Pit and Fissure Course Approval
300.00
300.00
$2,000
Radiation Safety Course Approval
300.00
300.00
$2,000
RDA Biennial Renewal
70.00
80.00
$200
RDAEF Biennial Renewal
Dental Sedation Assistant Permit
Biennial Renewal
Orthodontic Assistant Permit Biennial
Renewal
70.00
80.00
$200
70.00
80.00
$200
70.00
80.00
$200
RDA Practical Exam Fee
60.00
60.00
Actual cost
Duplicate License or Permit Fee
25.00
25.00
$100
RDA Application Fee
20.00
50.00
$200
RDAEF Application Fee
20.00
50.00
$200
RDAEF2 Application Fee
20.00
50.00
$200
4. Amending the Unprofessional Conduct Statute. Current law prohibits "The
commission of any act of sexual abuse, misconduct, or relations with a patient,
client, or customer constitutes unprofessional conduct and grounds for disciplinary
action" for any healing arts professional. However, it exempts sexual contact
between a physician and surgeon and his or her spouse, or person in an equivalent
domestic relationship, when providing non-psychotherapeutic medical treatment.
AB 179 (Bonilla)
Page 6 of 7
This bill will extend the exemption to all healing arts licensees who do not provide
psychotherapeutic medical treatment to spouses or persons in equivalent domestic
relationships.
5. Fund Merger. Both the LVN and PT programs are at the statutory maximums for
licensing fees. In July of 2012, the Board submitted a Budget Change Proposal
(BCP) requesting the merger of the LVN and PT funds. The BCP was denied
because the PTs fund condition was expected to remain solvent through FY
2015/16. The Board was advised to seek a statutory proposal to merge the funds
versus a BCP.
According to the Board, current budget projections indicate that the LVN program
fund reserve will remain solvent past FY 2020/21. The PTs program fund reserve
will be exhausted by 2017/18. On February 13, 2012, the Board approved a merger
of the funds as an alternative to a statutory amendment to raise the PTs fee ranges.
The Board has been advised by the DCA Budget Office that the merger would delay
a deficit and the need to increase fees for three to four years.
This bill will merge the LVN and PT funds. Delaying the merger until the new fiscal
year will ease the accounting transition.
6. DAC Term limits. This bill limits the terms of the DAC to two years, which will
mirror the terms of the DBC members.
7. Related Legislation This Year. SB 465 (Hill) extends the operation of the
Contractors’ State License Board until 2020 and makes various changes to the
Contractors’ State License Law. (Status: The bill is pending in the Assembly
Committee on Business and Professions.)
SB 466 (Hill) sunsets the Board of Registered Nursing. (Status: The bill is pending
in the Assembly Committee on Business and Professions.)
SB 467 (Hill) extends the operation of the California Board of Accountancy until
2020 and makes various changes in regards to the DCA. (Status: The bill is
pending in the Assembly Committee on Business and Professions.)
SB 468 (Hill) extends the operation of the Bureau of Security and Investigative
Services and the Alarm Company Act, Locksmith Act, Private Investigator Act,
Private Security Services Act, Proprietary Security Services Act, and Collateral
Recovery Act until January 1, 2020. It also subjects the Bureau to review by the
appropriate committees of the Legislature and makes various changes to provisions
in the aforementioned Acts to improve the oversight, enforcement and regulation by
the Bureau of licensees under each Act. (Status: The bill is pending in the
Assembly Committee on Business and Professions.)
SB 469 (Hill) extends the operation of the California State Athletic Commission until
January 1, 2020. Makes changes to the laws governing the Commission’s
operations and the Commission’s oversight of professional and amateur boxing,
professional and amateur kickboxing, all forms and combinations of full contact
AB 179 (Bonilla)
Page 7 of 7
martial arts contests, including mixed martial arts and matches or exhibitions
conducted, held or given in California. (Status: The bill is pending in the Assembly
Committee on Business and Professions.)
AB 177 (Bonilla) extends the operation of the Board for Professional Engineers,
Land Surveyors and Geologists and California Architects Board and Landscape
Architects Committee until January 1, 2020. (Status: The bill is also set for a
hearing before this Committee on July 6.)
AB 178 (Bonilla) extends the operation of the Board of Vocational Nursing and
Psychiatric Technicians until January 1, 2020. (Status: The bill is pending in the
Senate Appropriations Committee.)
AB 180 (Bonilla) extends the operation of the Cemetery and Funeral Bureau until
January 1, 2020. (Status: The bill is also set for a hearing before this Committee
on July 6.)
AB 181 (Bonilla) extends the operation of the California State Board of Barbering
and Cosmetology (BBC) until January 1, 2020. Makes changes to the laws
governing the Board’s regulation of barbers, cosmetologists, estheticians,
electrologists, manicurists, apprentices and establishments. (Status: The bill is also
set for a hearing before this Committee on July 6.)
8. Arguments in Support. The Dental Board of California writes in support, “This
important measure would extend the licensing and regulation functions as well as
other provisions relating to the Board until January 1, 2020, increase the allowable
maximum fee ceilings the Board is authorized to assess, and authorize the Board to
collect electronic mail addresses of applicants and licensees. These provisions will
provide the resources necessary for the Board to continue its mission of protecting
the public.”
The Dental Hygiene Committee of California (DHCC) writes, “DHCC members
strongly feel that the extension of the Dental Board of California is essential in order
to continue to protect consumers.”
SUPPORT AND OPPOSITION:
Support:
Dental Board of California
Dental Hygiene Committee of California
Opposition:
None on file as of June 30, 2015.
-- END --