California occupational-therapy board OKs rulemaking to raise renewal fees to $300

California Board of Occupational Therapy members voted unanimously on June 13 to initiate a rulemaking package to raise biennial renewal fees for occupational therapists and occupational therapy assistants to $300, the board's statutory cap.

The board approved the regulatory language and a clerical correction to the draft package in two motions after discussion with the Department of Consumer Affairs (DCA) Budget Office. The vote on the final amended motion was 4–0 in favor.

Board members and DCA budget staff said the change is intended to stabilize the board fund, which has been running a thin reserve and faces a structural imbalance between ongoing revenues and expenditures.

DCA budget analysts presented scenarios showing that the board’s projected workload cost to process a single license renewal is $312 — above the $300 statutory cap — and that without fee changes the fund could run negative in later years. "The board finds that its cost is $312 exceeding the statutory fee cap of $300," Sam Dyer, DCA budget office, said during the presentation. He and Matt Nishamini described three scenarios: a modest increase keeping OTA renewal lower than OT renewal (OT $300, OTA $240), raising both renewals to the $300 caps, and a scenario that would leave OTA below cap to retain a lower entry barrier.

Why it matters: the board supports its operations mainly with licensing revenue. DCA projected the board would end fiscal 2024–25 with about $1.305 million — roughly 4.6 months in reserve — down from roughly 5.1 months in reserve in 2023–24, and warned personal-service cost increases and other unanticipated events could further pressure the fund.

Board discussion and public comments Board members and DCA staff discussed trade-offs between keeping OTA renewal fees lower to reduce barriers to entry and maximizing statutory caps to strengthen arguments for a future legislative increase at the board’s sunset review. "The traditional way to raise a program's statutory fee cap is through their legislative sunset review, and this board sunset is scheduled for 2026," Sam Dyer said. Matt Nishamini added: "If you were to increase both the OTA and the OTs to 300 to the statutory cap, that would be looked on more favorably by the legislature when you go through your sunset process." He said reaching statutory caps shows the board has taken available regulatory steps before asking the Legislature for higher statutory limits.

Public commenters representing the Occupational Therapy Association of California and education programs said they understood the fiscal rationale but raised concerns about cost burdens. Samia Rafidi, president of the Occupational Therapy Association of California, said a $300 fee would represent a small percentage of typical practitioner earnings and argued the level is "balanced" but warned higher fees could reduce association membership. Ada Boone Hurl, Sacramento City College program director, and other OTA commenters asked for clear, accessible messaging explaining the rationale and how the increases would be implemented.

Board action and next steps The board directed staff to submit the amended regulatory text for section 41.30 to the director of the Department of Consumer Affairs and the Business, Consumer Services, and Housing Agency for review. If no adverse comments are received during the 45‑day public comment period, the board authorized the executive officer to initiate the rulemaking process, make non‑substantive edits, and proceed to adoption if no hearing is requested.

Matt Nishamini and Sam Dyer said the board would target a July 1, 2026, effective date for any regulatory fee change if the rulemaking proceeds on the agency schedule. They emphasized that a statutory cap increase (which would require legislative action during the board’s sunset review) would not itself change fee levels without separate regulatory action.

Ending The board approved the rulemaking to raise renewal fees to the statutory cap unanimously. Staff said they will return with the formal rulemaking materials and that DCA will continue to monitor the board’s fund condition and provide ongoing budget guidance.