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Board staff report rising enforcement costs and staffing changes; legislative and rulemaking work underway
Summary
At the March 18, 2025 meeting the board heard staff reports on budget pressure and enforcement costs, a projected augmentation request for AG/attorney costs, recent staff changes and telework guidance, rising PTA applications, as well as early summaries of bills being tracked and planned continuing-competency rulemaking and outreach activity.
Executive Officer Jason Keiser told the Physical Therapy Board of California on March 18 that the board is monitoring a projected general-fund shortfall statewide and has planned an 8% reduction in its overall budget projections. Keiser reported a notable increase in enforcement workload and legal costs: a roughly 8% increase in complaints, a 53% increase in cases referred to the Attorney General for filing, and a 22% increase in accusations at the end of the reporting period. As a result, staff are preparing a one-time augmentation request to cover higher AG/OAH costs; the request, if approved, would be charged to the board’s enforcement fund and could affect the fund condition if denied.
Keiser also reported staffing changes: an analyst vacancy in the applications services unit (endorsement analyst Arianna Rathman accepted a promotional position at another board) and the hiring of Anastasia Stokes to the administrative services unit as lead with eight-plus years of finance and budget experience. Staff expect to fill an analyst position in the continuing competency unit in the near term.
On personnel policy, Keiser reported that the governor issued Executive Order N-22-25 requiring a hybrid telework policy with a default minimum of four in-person days per week by July 1 and that CalHR guidance permits case-by-case exceptions; the board will draft telework agreements accordingly. Keiser noted the board’s current office has adequate square footage to accommodate increased in-person presence.
Application services staff are seeing a substantive rise in PTA applications (a reported 24% year-over-year increase to date) attributed to more PTA programs and larger cohorts; other applicant categories show double-digit increases. Keiser said staff will monitor whether this represents a sustained trend or a rebound following pandemic-related declines.
On legislation, staff provided early summaries of bills being watched in the 2025–26 session. Notable early items included AB 489 (prohibiting AI programs from implying licensure), AB 667 (requiring interpreter services for applicants who cannot read/speak/write English during state-administered licensing exams and adding a language-preference question to license applications), AB 742 (prioritizing licensure for descendants of American slavery, contingent on separate certification processes), AB 1458 (intent language to authorize advanced certification for animal physical therapy under veterinarian supervision), and SB 470 (to remove the Jan. 1, 2026 sunset on alternate Bagley-Keene teleconferencing provisions). Staff emphasized these are early, "spot" bills and further analysis will follow in June when boards may take positions.
Brooke from rulemaking reported continuing-competency regulation work is in the concept phase; proposed amendments and a separate package addressing continuing-competency approval agency fees are being developed for board consideration at the June meeting.
Communications staff reported outreach activity and social-media metrics: continuing outreach to PT and PTA programs, renewed high-school career-fair participation (CalHOSA career fair and local high-school events), and quarterly social-media statistics that fluctuate depending on event timing. Staff plan to continue consumer outreach, educational materials and attendance at student and professional events.
Board members asked about fund implications if the augmentation is denied, the mechanics for interpreting AB 667 (how interpreter requirements would apply to foreign-educated applicants or CAPTE-accredited graduates), the status of board appointments to fill one vacancy, and whether the board will pursue an advisory committee for next year’s sunset report. Staff said additional detail and potential board positions on legislation, the rulemaking packages, and the strategic-plan progress tracker will be provided at the June meeting.
No final policy decisions were adopted on budget or legislation at the March meeting; these reports informed the board’s planning and will return for potential action at future meetings.
