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California Board of Occupational Therapy approves draft requesting higher fee caps, moves sunset report to print
Summary
The board voted Dec. 5 to approve draft statutory language that would let it set higher fee caps in future regulations and approved the draft sunset report for printing; staff said a $300 biannual renewal via regulation is planned for July 2026 but that fee increases alone will not fully balance the board's fund, which is projected to face a deficit by FY 2028'29.
The California Board of Occupational Therapy voted Dec. 5 to approve draft language asking the Legislature for higher statutory fee caps and to send the draft sunset report to print with staff-authorized, non-substantive edits.
Board staff told members the board is preparing a regulatory package to raise renewal fees for occupational therapists (OTs) and occupational therapy assistants (OTAs) to $300 biannually, and that the board would seek legislative authority to set higher maximums for incidental fees. “We would do the regulation for the $300 renewal fee, and then we would seek legislative authority to have higher caps on all fees,” a staff presenter said during the meeting.
The staff presentation explained that the statutory language approved by the board does not itself raise fees; it would only set maximums that the board could use if it later adopts regulatory fee increases. Staff identified proposed maximums discussed in the packet: a renewal cap up to $500 for OTs and $450 for OTAs, initial-application caps of $100, an advanced-practice application cap up to $200, and $50 caps for duplicate-license and verification letters. The board said its immediate intent is to implement a $300 renewal by regulation and not to adopt the higher cap levels unless future circumstances require it.
The board and staff emphasized the fiscal context: revenue from renewal fees is the board's primary income source, and workload, enforcement and personnel costs have increased. Staff said projections show the board's fund would run out by fiscal year 2028'29 without additional revenue changes. "By increasing the renewal fees, which again this language does not actually increase any fees, ... that does in effect increase initial licenses, delinquency fees because those are all based as a percentage of the renewing fee," staff explained during the discussion.
Members asked technical questions about prorating fees for new graduates and about how the proposed statutory caps related to the budget committee's earlier 2024 recommendations. After discussion a board member moved to approve the draft statutory language and the motion was seconded. A roll-call vote was recorded and the motion carried.
The board then reviewed and voted to approve the draft sunset report for submission, authorizing the executive officer to make non-substantive edits before printing. The approved report includes the fee-cap language in the addendum and retains staff proposals to pursue the $300 renewal by regulation with an expected effective date of July 1, 2026.
Next steps: staff said the fee regulatory package will proceed to rulemaking for the $300 renewal fee; the statutory language will be included in the final sunset report so the board can seek legislative authority for higher caps if needed. The board did not set a specific date for seeking the statutory change from the Legislature.
