The California Physician Assistant Board on Nov. 8 adopted its draft 2025 sunset review report and authorized regulatory and legislative steps aimed at stabilizing the board’s fund balance.

Board staff and the Department of Consumer Affairs budget office presented a fund-condition analysis showing the board’s reserve declining from roughly a year’s operating months to an estimated four months by 2027 under current revenue and expenditure assumptions. Matt Neshamini of DCA’s budget office told the board the program was “structurally imbalanced by about $450,000 per year,” and recommended two steps: raise fees to existing statutory caps via regulation and seek legislative authority to increase caps so the board can adjust fees in the future.

As a near-term regulatory action, the board authorized staff to initiate a rulemaking package to raise the initial license fee from $200 to $250. DCA staff described the change as an incremental move that could be implemented by regulation, with a separate legislative effort to expand statutory caps (examples discussed included future caps up to $500) so the board would have greater flexibility going forward. The board discussed timing and stakeholder engagement; staff said a regulatory target date for an initial increase to $250 would begin in 2025 with any statutory cap changes pursued through the sunset legislation.

Board members pressed staff on assumptions behind the projections and on limiting the immediate impact on applicants. Board counsel and budget staff emphasized that regulatory increases to the statutory caps require stakeholder notice and would not immediately raise all licensees’ fees beyond current levels; statutory changes, if enacted, would create room for future regulatory adjustments.

The board voted to adopt the sunset review report and to direct the executive officer to make technical edits and submit the final report to the legislature. In related action, the board approved initiating rulemaking to amend Title 16 regulations (including proposed amendment to Cal. Code Regs. §1399.550) to raise the initial license fee and to proceed with review by DCA and its parent agency.