BILL NUMBER: AB 2256	CHAPTERED
	BILL TEXT

	CHAPTER  564
	FILED WITH SECRETARY OF STATE  SEPTEMBER 28, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2006
	PASSED THE ASSEMBLY  AUGUST 31, 2006
	PASSED THE SENATE  AUGUST 30, 2006
	AMENDED IN SENATE  AUGUST 21, 2006
	AMENDED IN SENATE  AUGUST 7, 2006
	AMENDED IN SENATE  JUNE 15, 2006
	AMENDED IN ASSEMBLY  APRIL 19, 2006

INTRODUCED BY   Committee on Business and Professions (Negrete McLeod
(Chair), Shirley Horton (Vice Chair), Bass, Frommer, Koretz, Maze,
Nation, Tran, Vargas, and Yee)

                        FEBRUARY 22, 2006

   An act to amend Sections 3077, 3166, and 5615 of, to add Sections
3111, 5588, 5678, 5678.1, 5678.2, 5678.3, and 5678.4 to, to repeal
Sections 3161, 3162, 5678.5, and 5679.5 of, and to repeal and add
Section 3160 of, the Business and Professions Code, to amend Section
13401 of the Corporations Code, and to add Section 15770.5 to the
Government Code, relating to professions and vocations.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2256, Committee on Business and Professions  Professions and
vocations.
   (1) Existing law, the Optometry Practice Act, provides for the
licensure and regulation of optometrists by the State Board of
Optometry and makes a violation of the act a crime. Under the act, an
optometric corporation is required to obtain a certificate of
registration from the board and file specified reports with it.
   This bill would delete the provisions requiring an optometric
corporation to obtain this certificate from the board and file these
reports with it.
   Existing law gives the board the same powers of suspension,
revocation, and discipline against an optometric corporation as it
has against individual licensees.
   This bill would delete that provision, and would also delete a
provision requiring the board to comply with the Administrative
Procedure Act. The bill would make it unprofessional conduct and a
misdemeanor for a person licensed under the act to violate the
Moscone-Knox Professional Corporation Act.
   (2) Existing law provides for the licensing and regulation of
architects by the California Architects Board.  Existing law requires
a licensee to report to the board any civil action judgment,
settlement, arbitration award, or administrative action resulting in
a judgment, settlement, or arbitration award against the licensee if
the action alleges fraud, deceit, negligence, incompetence, or
recklessness by the licensee in the practice of architecture and the
amount or value of the judgment, settlement, or award is $5,000 or
more. A licensee who fails to comply with this requirement is subject
to disciplinary action.
   This bill would provide that a licensee who fails to comply with
this requirement may also be subject to a civil penalty, as
specified, as an additional intermediate sanction.
   (3) Existing law provides for the licensure and regulation of
landscape architects by the California Architects Board, and defines
a person who practices landscape architecture as a person who
performs specified professional services.
   This bill would also include in that definition a person who
offers to perform those services.
   Existing law requires an insurer that provides professional
liability insurance to a landscape architect to report certain
information to the board within a specified time after a settlement
or arbitration award in specified claims or actions. Existing law
also requires an uninsured landscape architect or his or her counsel
to report to the board after a settlement or arbitration award of
certain claims or actions, and makes a failure to do so a
misdemeanor.
   This bill would require an insurer or a governmental agency that
self-insures a landscape architect to report specified information to
the board within 30 days of payment of a civil action judgment,
settlement, or arbitration award in specified actions. The bill would
also require a landscape architect to report specified information
to the board within 30 days after he or she has knowledge of a civil
action judgment, settlement, or arbitration award against him or her
in specified actions and would eliminate the reporting requirement
with respect to his or her counsel.  Failure to comply with these
requirements would subject a landscape architect to civil penalties,
as specified, and disciplinary action. The bill would also authorize
the board to adopt regulations relating to these reporting
requirements and require a landscape architect to respond to
inquiries from the board concerning the reportable events.
   (4) Existing law establishes the State Public Works Board, which
includes the Director of Finance, the Director of Transportation, and
the Director of General Services.
   This bill would authorize the Director of Transportation and the
Director of General Services to appoint a representative to act in
their place on the board.
   (5) Because the bill would expand existing crimes, it would impose
a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 3077 of the Business and Professions Code is
amended to read:
   3077.  As used in this section "office" means any office or other
place for the practice of optometry.
   (a) No person, singly or in combination with others, may have an
office unless he or she is registered to practice optometry under
this chapter.
   (b) An optometrist, or two or more optometrists jointly, may have
one office without obtaining a further license from the board.
   (c) On and after October 1, 1959, no optometrist, and no two or
more optometrists jointly, may have more than one office unless he or
she or they comply with the provisions of this chapter as to an
additional office. The additional office, for the purposes of this
chapter, constitutes a branch office.
   (d) Any optometrist who has, or any two or more optometrists,
jointly, who have, a branch office prior to January 1, 1957, and who
desire to continue the branch office on or after that date shall
notify the board in writing of that desire in a manner prescribed by
the board.
   (e) On and after January 1, 1957, any optometrist, or any two or
more optometrists, jointly, who desire to open a branch office shall
notify the board in writing in a manner prescribed by the board.
   (f) On and after January 1, 1957, no branch office may be opened
or operated without a branch office license.  Branch office licenses
shall be valid for the calendar year in or for which they are issued
and shall be renewable on January 1st of each year thereafter. Branch
office licenses shall be issued or renewed only upon the payment of
the fee therefor prescribed by this chapter.
   On or after October 1, 1959, no more than one branch office
license shall be issued to any optometrist or to any two or more
optometrists, jointly.
   (g) Any failure to comply with the provisions of this chapter
relating to branch offices or branch office licenses as to any branch
office shall work the suspension of the certificate of registration
of each optometrist who, individually or with others, has a branch
office. A certificate of registration so suspended shall not be
restored except upon compliance with those provisions and the payment
of the fee prescribed by this chapter for restoration of a
certificate of registration after suspension for failure to comply
with the provisions of this chapter relating to branch offices.
   (h) The holder or holders of a branch office license shall pay the
annual renewal fee therefor in the amount required by this chapter
between the first day of January and the first day of February of
each year. The failure to pay the fee in advance on or before
February 1st of each year during the time it is in force shall ipso
facto work the suspension of the branch office license. The license
shall not be restored except upon written application and the payment
of the penalty prescribed by this chapter, and, in addition, all
delinquent branch office fees.
   (i) Nothing in this chapter shall limit or authorize the board to
limit the number of branch offices that are in operation on October
1, 1959, and that conform to this chapter, nor prevent an optometrist
from acquiring any branch office or offices of his or her parent.
The sale after October 1, 1959, of any branch office shall terminate
the privilege of operating the branch office, and no new branch
office license shall be issued in place of the license issued for the
branch office, unless the branch office is the only one operated by
the optometrist or by two or more optometrists jointly.
   Nothing in this chapter shall prevent an optometrist from owning,
maintaining, or operating more than one branch office if he or she is
in personal attendance at each of his or her offices 50 percent of
the time during which the office is open for the practice of
optometry.
   (j) The board shall have the power to adopt, amend, and repeal
rules and regulations to carry out the provisions of this section.
   (k) Notwithstanding any other provision of this section, neither
an optometrist nor an individual practice association shall be deemed
to have an additional office solely by reason of the optometrist's
participation in an individual practice association or the individual
practice association's creation or operation. As used in this
subdivision, the term "individual practice association" means an
entity that meets all of the following requirements:
   (1) Complies with the definition of an optometric corporation in
Section 3160.
   (2) Operates primarily for the purpose of securing contracts with
health care service plans or other third-party payers that make
available eye/vision services to enrollees or subscribers through a
panel of optometrists.
   (3) Contracts with optometrists to serve on the panel of
optometrists, but does not obtain an ownership interest in, or
otherwise exercise control over, the respective optometric practices
of those optometrists on the panel.
   Nothing in this subdivision shall be construed to exempt an
optometrist who is a member of an individual practice association and
who practices optometry in more than one physical location, from the
requirement of obtaining a branch office license for each of those
locations, as required by this section. However, an optometrist shall
not be required to obtain a branch office license solely as a result
of his or her participation in an individual practice association in
which the members of the individual practice association practice
optometry in a number of different locations, and each optometrist is
listed as a member of that individual practice association.
  SEC. 2.  Section 3111 is added to the Business and Professions
Code, to read:
   3111.  It is unprofessional conduct and a violation of this
chapter for a person licensed under this chapter to violate, attempt
to violate, assist in the violation of, or conspire to violate the
Moscone-Knox Professional Corporation Act (Part 4 (commencing with
Section 13400) of Division 3 of Title 1 of the Corporations Code),
this article, or any regulation adopted pursuant to those provisions.

  SEC. 3.  Section 3160 of the Business and Professions Code is
repealed.
  SEC. 4.  Section 3160 is added to the Business and Professions
Code, to read:
   3160.  An optometric corporation is a corporation that is
authorized to render professional services, as described in Sections
13401 and 13401.5 of the Corporations Code, if that corporation and
its shareholders, officers, directors, and employees rendering
professional services who are physicians and surgeons, psychologists,
registered nurses, optometrists, or podiatrists are in compliance
with the Moscone-Knox Professional Corporation Act as contained in
Part 4 (commencing with Section 13400) of Division 3 of Title 1 of
the Corporations Code, the provisions of this article, and all other
statutes and regulations now or hereafter enacted or adopted
pertaining to the corporation and the conduct of its affairs. With
respect to an optometric corporation, the governmental agency
referred to in the Moscone-Knox Professional Corporation Act is the
State Board of Optometry.
  SEC. 5.  Section 3161 of the Business and Professions Code is
repealed.
  SEC. 6.  Section 3162 of the Business and Professions Code is
repealed.
  SEC. 7.  Section 3166 of the Business and Professions Code is
amended to read:
   3166.  An optometric corporation shall not do or fail to do an act
the doing of which or the failure to do which would constitute
unprofessional conduct under any statute, rule, or regulation. In
conducting its practice, an optometric corporation shall observe and
be bound by statutes, rules, and regulations to the same extent as a
person holding a license under Section 3055.
  SEC. 8.  Section 5588 of the Business and Professions Code is
amended to read:
   5588.  (a) A licensee shall report to the board in writing within
30 days of the date the licensee has knowledge of any civil action
judgment, settlement, arbitration award, or administrative action
resulting in a judgment, settlement, or arbitration award against the
licensee in any action alleging fraud, deceit, negligence,
incompetence, or recklessness by the licensee in the practice of
architecture if the amount or value of the judgment, settlement, or
arbitration award is five thousand dollars ($5,000) or greater.
   (b) The report required by subdivision (a) shall be signed by the
licensee and shall set forth the facts that constitute the reportable
event. If the reportable event involves the action of an
administrative agency or court, the report shall set forth all of the
following:
   (1) The title of the matter.
   (2) The court or agency name.
   (3) The docket number.
   (4) The claim or file number.
   (5) The date on which the reportable event occurred.
   (c) A licensee shall promptly respond to oral or written inquiries
from the board concerning the reportable events, including inquiries
made by the board in conjunction with license renewal.
   (d) Failure of a licensee to report to the board in the time and
manner required by this section shall be grounds for disciplinary
action.
   (e) Any licensee who fails to comply with this section may be
subject to a civil penalty of not less than one hundred dollars
($100) and not more than one thousand dollars ($1,000) as an
additional intermediate sanction imposed by the board in lieu of
revoking the licensee's license. Any licensee who knowingly and
intentionally fails to comply with this section may be subject to a
civil penalty of up to twenty thousand dollars ($20,000) as an
additional intermediate sanction imposed by the board in lieu of
revoking the licensee's license.
  SEC. 9.  Section 5615 of the Business and Professions Code is
amended to read:
   5615.  As used in this chapter:
   "Landscape architect" means a person who holds a license to
practice landscape architecture in this state under the authority of
this chapter.
   A person who practices landscape architecture within the meaning
and intent of this article is a person who offers or performs
professional services, for the purpose of landscape preservation,
development and enhancement, such as consultation, investigation,
reconnaissance, research, planning, design, preparation of drawings,
construction documents and specifications, and responsible
construction observation. Landscape preservation, development and
enhancement is the dominant purpose of services provided by landscape
architects. Implementation of that purpose includes: (1) the
preservation and aesthetic and functional enhancement of land uses
and natural land features; (2) the location and construction of
aesthetically pleasing and functional approaches and settings for
structures and roadways; and, (3) design for trails and pedestrian
walkway systems, plantings, landscape irrigation, landscape lighting,
landscape grading and landscape drainage.
   Landscape architects perform professional work in planning and
design of land for human use and enjoyment. Based on analyses of
environmental physical and social characteristics, and economic
considerations, they produce overall plans and landscape project
designs for integrated land use.
   The practice of a landscape architect may, for the purpose of
landscape preservation, development and enhancement, include:
investigation, selection, and allocation of land and water resources
for appropriate uses; feasibility studies; formulation of graphic and
written criteria to govern the planning and design of land
construction programs; preparation review, and analysis of master
plans for land use and development; production of overall site plans,
landscape grading and landscape drainage plans, irrigation plans,
planting plans, and construction details; specifications; cost
estimates and reports for land development; collaboration in the
design of roads, bridges, and structures with respect to the
functional and aesthetic requirements of the areas on which they are
to be placed; negotiation and arrangement for execution of land area
projects; field observation and inspection of land area construction,
restoration, and maintenance.
   This practice shall include the location, arrangement, and design
of those tangible objects and features as are incidental and
necessary to the purposes outlined herein. Nothing herein shall
preclude a duly licensed landscape architect from planning the
development of land areas and elements used thereon or from
performing any of the services described in this section in
connection with the settings, approaches, or environment for
buildings, structures, or facilities, in accordance with the accepted
public standards of health, safety, and welfare.
   This chapter shall not empower a landscape architect, licensed
under this chapter, to practice, or offer to practice, architecture
or engineering in any of its various recognized branches.
  SEC. 10.  Section 5678 is added to the Business and Professions
Code, to read:
   5678.  (a) A licensee shall report to the board in writing within
30 days of the date the licensee has knowledge of any civil action
judgment, settlement, arbitration award, or administrative action
resulting in a judgment, settlement, or arbitration award against the
licensee in any action alleging fraud, deceit, negligence,
incompetence, or recklessness by the licensee in the practice of
landscape architecture if the amount or value of the judgment,
settlement, or arbitration award is five thousand dollars ($5,000) or
greater.
   (b) The report required by subdivision (a) shall be signed by the
licensee and shall set forth the facts that constitute the reportable
event. If the reportable event involves the action of an
administrative agency or court, the report shall set forth all of the
following:
   (1) The title of the matter.
   (2) The court or agency name.
   (3) The docket number.
   (4) The claim or file number.
   (5) The date on which the reportable event occurred.
   (c) A licensee shall promptly respond to oral or written inquiries
from the board concerning the reportable events, including inquiries
made by the board in conjunction with license renewal.
   (d) Failure of a licensee to comply with this section shall be
grounds for disciplinary action.
   (e) A licensee who fails to comply with this section may be
subject to a civil penalty of not less than one hundred dollars
($100) and not more than one thousand dollars ($1,000) as an
intermediate sanction imposed by the board in lieu of revoking the
licensee's license. A licensee who knowingly and intentionally fails
to comply with this section may be subject to a civil penalty of up
to twenty thousand dollars ($20,000) as an additional intermediate
sanction imposed by the board in lieu of revoking the licensee's
license.
  SEC. 11.  Section 5678.1 is added to the Business and Professions
Code, to read:
   5678.1.  (a) Within 30 days of payment of all or any portion of a
civil action judgment, settlement, or arbitration award described in
Section 5678 against a licensee of the board in which the amount or
value of the judgment, settlement, or arbitration award is five
thousand dollars ($5,000) or greater, any insurer providing
professional liability insurance to that licensee or landscape
architectural entity shall report to the board all of the following:

   (1) The name of the licensee.
   (2) The claim or file number.
   (3) The amount or value of the judgment, settlement, or
arbitration award.
   (4) The amount paid by the insurer.
   (5) The identity of the payee.
   (b) Within 30 days of payment of all or any portion of any civil
action judgment, settlement, or arbitration award described in
Section 5678 against a licensee of the board in which the amount or
value of the judgment, settlement, or arbitration award is five
thousand dollars ($5,000) or greater, any state or local governmental
agency that self insures that licensee shall report to the board all
of the following:
   (1) The name of the licensee.
   (2) The claim or file number.
   (3) The amount or value of the judgment, settlement, or
arbitration award.
   (4) The amount paid.
   (5) The identity of the payee.
  SEC. 12.  Section 5678.2 is added to the Business and Professions
Code, to read:
   5678.2.  The requirements of Sections 5678 and 5678.1 shall apply
if a party to the civil action, settlement, arbitration award, or
administrative action is or was (a) a sole proprietorship,
partnership, firm, corporation, or state or local governmental agency
in which a licensee is or was an owner, partner, member, officer, or
employee and (b) a licensee in responsible control of that portion
of the project that was the subject of the civil judgment,
settlement, arbitration award, or administrative action.
  SEC. 13.  Section 5678.3 is added to the Business and Professions
Code, to read:
   5678.3.  Notwithstanding any other provision of law, a licensee
shall not be considered to have violated a confidential settlement
agreement or other confidential agreement by providing a report to
the board as required by this article.
  SEC. 14.  Section 5678.4 is added to the Business and Professions
Code, to read:
   5678.4.  The board may adopt regulations to further define the
reporting requirements of Sections 5678 and 5678.1.
  SEC. 15.  Section 5678.5 of the Business and Professions Code is
repealed.
  SEC. 16.  Section 5679.5 of the Business and Professions Code is
repealed.
  SEC. 17.  Section 13401 of the Corporations Code is amended to
read:
   13401.  As used in this part:
   (a) "Professional services" means any type of professional
services that may be lawfully rendered only pursuant to a license,
certification, or registration authorized by the Business and
Professions Code, the Chiropractic Act, or the Osteopathic Act.
   (b) "Professional corporation" means a corporation organized under
the General Corporation Law or pursuant to subdivision (b) of
Section 13406 that is engaged in rendering professional services in a
single profession, except as otherwise authorized in Section
13401.5, pursuant to a certificate of registration issued by the
governmental agency regulating the profession as herein provided and
that in its practice or business designates itself as a professional
or other corporation as may be required by statute. However, any
professional corporation or foreign professional corporation
rendering professional services by persons duly licensed by the
Medical Board of California or any examining committee under the
jurisdiction of the board, the Osteopathic Medical Board of
California, the Dental Board of California, the California State
Board of Pharmacy, the Veterinary Medical Board, the California
Architects Board, the Court Reporters Board of California, the Board
of Behavioral Sciences, the Speech-Language Pathology and Audiology
Board, the Board of Registered Nursing, or the State Board of
Optometry shall not be required to obtain a certificate of
registration in order to render those professional services.
   (c) "Foreign professional corporation" means a corporation
organized under the laws of a state of the United States other than
this state that is engaged in a profession of a type for which there
is authorization in the Business and Professions Code for the
performance of professional services by a foreign professional
corporation.
   (d) "Licensed person" means any natural person who is duly
licensed under the provisions of the Business and Professions Code,
the Chiropractic Act, or the Osteopathic Act to render the same
professional services as are or will be rendered by the professional
corporation or foreign professional corporation of which he or she is
or intends to become, an officer, director, shareholder, or
employee.
   (e) "Disqualified person" means a licensed person who for any
reason becomes legally disqualified (temporarily or permanently) to
render the professional services that the particular professional
corporation or foreign professional corporation of which he or she is
an officer, director, shareholder, or employee is or was rendering.

  SEC. 18.  Section 15770.5 is added to the Government Code, to read:

   15770.5.  Notwithstanding any other provision of law, the Director
of Transportation and the Director of General Services may appoint a
deputy or assistant director in their respective departments to act
in their place on the board, irrespective of whether the deputy or
assistant director holds a position specified in subdivision (g) of
Section 4 of Article VII of the California Constitution, and
irrespective of whether there is to be more than one person
representing a director at a meeting of the board. While serving on
the board, the representative shall have all the powers of the
director he or she is representing, including the right to be counted
in a quorum, to participate in the proceedings of the board, and to
vote on all matters. The director shall be responsible for the
representative's acts to the same extent that the director is
responsible for the deputy or assistant director's acts when
performing his or her official duties.
  SEC. 19.   No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.