Bill Would Allow Medical Board to Reduce Licensing Fees
[Posted 01/18/087]

California Assemblymember Fiona Ma (D-San Francisco) has introduced a bill that will give the Medical Board of California the flexibility to reduce licensing fees when its contingent fund exceeds two months of reserves.

Current law requires the board to maintain a reserve fund that would cover operating costs for approximately two months.  A recent audit of the medical board’s financial status found that its reserves increased by $6.3 million, to $18.5 million, in fiscal year 2006-07. This represents 4.3 months of reserves.

The auditor recommended that the board either reduce fees or issue refunds to physicians to lower its contingent fund balance. However, under current law, fees are fixed at $790 and medical board does not have the authority to reduce them without legislative action. This bill (AB 547) would grant the medical board the flexibility to reduce licensing fees when necessary to maintain its fund balance at or near the mandated level.

CMA is working with Assemblymember Ma and the medical board to determine how to best reduce the excessive reserves.

Contact: Brett Michelin, 916/444-5532 or bmichelin@cmanet.org.