June 23, 2017
The California Legislature is considering a bill (AB 658) that would temporarily suspend the state's clinical laboratory license renewal fees for two years, 2018 and 2019.
The bill is a result of an audit that found that the California Department of Public Health (CDPH) had collected millions more in laboratory fees than it had spent operating the Laboratory Field Services (LFS) branch. The fund’s current reserves exceed $22 million. Under state law, however, CDPH cannot suspend or refund these fees.
This proposed legislation will only suspend renewal fees and would not apply to other fees like multiple site, personnel licensure, new lab or delinquency fees.
Fees would be reinstated in 2020, but going forward CDPH will only be permitted to collect enough fees to operate its LFS branch, as spelled out in the current law.
If this bill becomes law, labs in California should see significant savings over the next few years as licensing fees paid to the state are lowered after the freeze.
The bill passed the Assembly without objection and has passed the first Senate Committee.
Did you know?
Did you know that COLA Laboratory Accreditation is a California Medical Association (CMA) member benefit?
COLA a physician-directed organization whose purpose is to promote excellence in laboratory medicine and patient care through a program of voluntary education, consultation and accreditation. This member benefit provides a 20 percent savings on COLA’s Laboratory Accreditation Program.
COLA is approved by LFS under state law as well as the federal CLIA program. By enrolling, your one COLA survey every two years will meet both state and federal regulations.
CMA members also receive free online support and a complimentary basic quality lab course and may be eligible for a discount on AAFP and ACP proficiency testing programs.
Click here to learn more about COLA and to access the CMA member discount code.