MDC endorses revised fee package, asks board to pursue statute changes to shore up fund reserves

The Medical Discipline Committee recommended that the Veterinary Medical Board pursue legislative changes to Business and Professions Code section 4905 to increase statutory fee caps and adopt a tiered veterinary-premises fee structure. The MDC approved the staff-drafted legislative proposal (option 2), which would make several statutory-cap changes and create small, medium and large premises renewal and initial fees.

Lede: committee members said the board's fund projections showed a structural deficit later in the decade and that delaying fee changes risked insolvency. The MDC voted to ask the full board to submit a legislative proposal that increases statutory fee caps for veterinary licenses and authorizes a three-tier premises fee (small, medium, large) and raises caps for RVT and VACSP fees; the committee selected an option that shifts a greater share of the increase to veterinarian premises while moderating RVT fee increases.

Why it matters: staff modeled several multi-year scenarios and concluded that, without statutory cap increases, the board's reserves could fall below required minima in the later years of the forecasts. The proposed statutory caps are intended to allow incremental fee increases by regulation and to establish a premises-tier structure tied to full-time-equivalent (FTE) veterinarian counts; staff also proposed a $25-per-mobile-unit fee to cover inspection workload for mobile units.

What the proposal would do (option 2 highlights) - Create a three-tier veterinary premises registration fee: small (1to 3 FTE veterinarians), medium (4to 8 FTE), and large (9+ veterinarians). Modeling showed roughly 80 percent of registered premises would be in the small tier, 16 percent medium, and 4 percent large.

- Increase statutory caps for veterinarian application and renewal fees to allow future regulatory adjustments; example proposal figures discussed: veterinarian license application and renewal caps raised (staff models used $765 or $800 in alternate models).

- Raise statutory caps for RVT application and renewal fees from a current set fee of $225 to a cap allowing higher regulation-set fees ($300or $350 in discussed options), but the committee selected an option with a smaller RVT increase while asking larger premises to shoulder more of the increase.

- Increase VACSP (veterinary assistant controlled substance practitioner) fees to better reflect enforcement workload (staff modeled increases to $300 or $320 depending on option).

Rationale and public comment - Staff told the MDC the board's fund condition forecasts could fall below 3 months in reserve in later fiscal years unless the board secures statutory flexibility to raise fees. The analysis also noted historical reversions and uncertainties in long-term forecasting; staff said actual reserves have varied versus past estimates, and pending legislative proposals (for example, statutory authority to enter stipulated settlements and avoid OAG costs) could materially improve the fund condition.

- The CVMA supported proactive planning and the concept of a tiered premises structure; it suggested the board publish clear guidance on how to count veterinarians (for example, how to treat staff on leave) to avoid confusion at renewal.

- The MDC debated but did not adopt a plan for earlier fee increases than staff proposed; several members noted veterinarian incomes have risen and that shifting a greater share to premises (option 2) could moderate the impact on RVTs.

Action taken - The MDC voted to recommend that the full Veterinary Medical Board submit the option 2 legislative proposal to the California Legislature (vote recorded by roll call; see actions[] for recorded votes). That option favors larger premises carrying more of the fiscal burden while modestly increasing RVT and VACSP caps.

Implementation and next steps - If the board authorizes staff to submit the bill, legislative counsel and staff will finalize bill language, and the board will work the measure through the legislative process. If enacted, the statutes will increase the board's ability to adjust fees by regulation and create the premises-tier structure and mobile-unit fee.

Ending: MDC members said the recommended legislative approach seeks to stabilize the board fund through a mix of revenue changes and potential savings (for example, reducing OAG costs if statutory authority to resolve cases with stipulated settlements is granted), while attempting to minimize the impact on lower-revenue licensees such as RVTs.