BILL NUMBER: SB 1550 CHAPTERED
BILL TEXT
CHAPTER 491
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2006
APPROVED BY GOVERNOR SEPTEMBER 27, 2006
PASSED THE SENATE AUGUST 31, 2006
PASSED THE ASSEMBLY AUGUST 29, 2006
AMENDED IN ASSEMBLY AUGUST 24, 2006
AMENDED IN ASSEMBLY AUGUST 7, 2006
AMENDED IN ASSEMBLY JUNE 22, 2006
AMENDED IN ASSEMBLY JUNE 14, 2006
AMENDED IN SENATE MAY 26, 2006
AMENDED IN SENATE MAY 3, 2006
AMENDED IN SENATE APRIL 24, 2006
INTRODUCED BY Senator Figueroa
(Principal coauthors: Senators Alquist and Scott)
(Principal coauthor: Assembly Member Jones)
FEBRUARY 23, 2006
An act to add Chapter 6 (commencing with Section 6500) to Division
3 of the Business and Professions Code, and to add Section 60.1 to,
to amend, repeal, and add Article 4 (commencing with Section 2340) to
Chapter 4 of Part 4 of Division 4 of, and to amend and repeal
Chapter 13 (commencing with Section 2850) of Part 4 of Division 4 of,
the Probate Code, relating to professional fiduciaries.
LEGISLATIVE COUNSEL'S DIGEST
SB 1550, Figueroa Professional Fiduciaries Act.
Existing law requires all private professional conservators,
private professional guardians, and private professional trustees to
file a specified annual statement, under penalty of perjury, with the
clerk of the court. Existing law prohibits a court from appointing
a person as a conservator, guardian, or trustee, unless he or she is
registered in the Statewide Registry maintained by the Department of
Justice and has filed the annual statement with the court.
This bill would enact the Professional Fiduciaries Act, which
would create the Professional Fiduciaries Bureau in the Department of
Consumer Affairs and would require the bureau to license and
regulate professional fiduciaries, as specified. The bill would also
create the Professional Fiduciaries Advisory Committee with specified
membership and duties. On and after July 1, 2008, the act would
require a person acting or holding himself or herself out as a
professional fiduciary to be licensed as a professional fiduciary,
unless he or she is licensed as an attorney or a certified public
accountant or is enrolled as an agent to practice before the Internal
Revenue Service, as specified, and would require a licensee to meet
certain other requirements, including filing an application for
licensure signed under penalty of perjury, passing a licensing
examination, payment of licensing fees set by the bureau, submission
of fingerprints for a criminal background check, and annually filing
a statement containing specified information under penalty of
perjury. The act would provide for the deposit of licensing fees in
the Professional Fiduciary Fund, which the bill would create and
which would be the successor fund to certain fees in the Statewide
Registry. The bureau would become inoperative on July 1, 2011, and be
repealed on January 1, 2012, and its responsibilities and
jurisdiction would be transferred to the Professional Fiduciaries
Advisory Committee.
This bill would also make inoperative, as of July 1, 2008, the
provisions of the Probate Code that relate to the registration of
private professional conservators and guardians.
This bill would only become operative if SB 1116, SB 1716, and AB
1363 are enacted and become effective on or before January 1, 2007.
Because this bill would require the filing of documents signed
under penalty of perjury, it would expand the crime of perjury and
thereby 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. This act, together with Senate Bill 1116, Senate Bill
1716, and Assembly Bill 1363, shall be known and may be cited as the
Omnibus Conservatorship and Guardianship Reform Act of 2006.
SEC. 2. The Legislature finds and declares all of the following:
(a) California's population is growing at an increasing rate, and
the growth in the number of people 65 years of age or older is
surpassing that in other states. The number of California's
population 65 years of age or older will grow from 3.6 million people
in the year 2000, to 6.2 million people in the year 2020, an
increase of 72 percent.
(b) As the population of California continues to grow and age, an
increasing number of people in the state are unable to provide
properly for their personal needs, manage their financial resources,
or resist fraud or undue influence as well as fiscal, emotional, and
physical harm. In addition, there is an increasing use of trusts and
durable powers of attorney by individuals seeking to provide for
potential incapacity. These vulnerable members of society have an
expectation that they and their property will be protected by a fair
system with high standards of care.
(c) One result of these trends is the growing number of people
acting as professional conservators, guardians, trustees,
attorneys-in-fact, and estate administrators on behalf of other
persons or their estates. The persons acting in one or more of these
capacities are known or are commonly referred to as professional
fiduciaries.
(d) Professional fiduciaries are not adequately regulated at
present. This lack of regulation can result in the neglect or the
physical, emotional or financial abuse of the vulnerable clients that
professional fiduciaries are supposed to serve. Unless there is a
strengthened accountability, abuses of people who are unable to take
care of themselves or their property by professional fiduciaries will
increase.
(e) Creation of a program to license and regulate professional
fiduciaries is necessary to protect the public health, safety, and
welfare.
SEC. 3. Chapter 6 (commencing with Section 6500) is added to
Division 3 of the Business and Professions Code, to read:
CHAPTER 6. Professional Fiduciaries
Article 1. General Provisions
6500. This chapter shall be known as the Professional Fiduciaries
Act.
6501. As used in this chapter, the following terms have the
following meanings:
(a) "Act" means this chapter.
(b) "Bureau" means the Professional Fiduciaries Bureau within the
Department of Consumer Affairs, established pursuant to Section 6510.
(c) "Client" means an individual who is served by a professional
fiduciary.
(d) "Department" means the Department of Consumer Affairs.
(e) "Licensee" means a person who is licensed under this chapter
as a professional fiduciary.
(f) "Professional fiduciary" means a person who acts as a
conservator or guardian for two or more persons at the same time who
are not related to the professional fiduciary or to each other by
blood, adoption, marriage, or registered domestic partnership.
"Professional fiduciary" also means a person who acts as a trustee,
agent under a durable power of attorney for health care, or agent
under a durable power of attorney for finances, for more than three
people or more than three families, or a combination of people and
families that totals more than three, at the same time, who are not
related to the professional fiduciary by blood, adoption, marriage,
or registered domestic partnership. "Professional fiduciary" does not
include any of the following:
(1) A trust company, as defined in Section 83 of the Probate Code.
(2) An FDIC-insured institution, or its holding companies,
subsidiaries, or affiliates. For the purposes of this paragraph,
"affiliate" means any entity that shares an ownership interest with,
or that is under the common control of, the FDIC-insured institution.
(3) A person employed by an entity described in paragraph (1) or
(2) who is acting in the course and scope of that employment.
(4) Any public officer or public agency, including the public
guardian, public conservator, or other agency of the State of
California or of a county of California, when that public officer or
public agency is acting in the course and scope of official duties,
or any regional center for persons with developmental disabilities as
defined in Section 4620 of the Welfare and Institutions Code.
(5) Any person whose sole activity as a professional fiduciary is
as a broker-dealer, broker-dealer agent, investment adviser
representative registered and regulated under the Corporate
Securities Law of 1968 (Division 1 (commencing with section 25000) of
Title 4 of the Corporations Code), the Investment Advisers Act of
1940 (15 U.S.C. 80b-1 et seq.), or the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.), or involves serving as a trustee to a
company regulated by the Securities and Exchange Commission under the
Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.).
(g) "Committee" means the Professional Fiduciaries Advisory
Committee, as established pursuant to Section 6511..
6502. (a) Every person who is required to register with the
Statewide Registry maintained by the Department of Justice under
Chapter 13 (commencing with Section 2850) of Part 4 of Division 4 of
the Probate Code prior to January 1, 2007, shall be required to
obtain a license as a professional fiduciary under this chapter.
(b) Every person who is required to file information with the
clerk of the court under Article 4 (commencing with Section 2340) of
Chapter 3 of Part 4 of Division 4 of the Probate Code prior to
January 1, 2007, shall be required to obtain a license as a
professional fiduciary under this chapter.
Article 2. Administration
6510. (a) There is within the jurisdiction of the department the
Professional Fiduciaries Bureau. The bureau is under the supervision
and control of the director. The duty of enforcing and administering
this chapter is vested in the chief of the bureau, who is responsible
to the director. Every power granted or duty imposed upon the
director under this chapter may be exercised or performed in the name
of the director by a deputy director or by the chief, subject to
conditions and limitations as the director may prescribe.
(b) The Governor shall appoint, subject to confirmation by the
Senate, the chief of the bureau, at a salary to be fixed and
determined by the director with the approval of the Director of
Finance. The chief shall serve under the direction and supervision of
the director and at the pleasure of the Governor.
(c) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2011, deletes or
extends the dates on which it becomes inoperative and is repealed.
The repeal of this section renders the bureau subject to the review
required by Division 1.2 (commencing with Section 473).
Notwithstanding any other provision of law, upon the repeal of
this section, the responsibilities and jurisdiction of the bureau
shall be transferred to the Professional Fiduciaries Advisory
Committee, as provided by Section 6511.
6511. (a) There is within the bureau a Professional Fiduciaries
Advisory Committee. The committee shall consist of seven members;
three of whom shall be licensees actively engaged as professional
fiduciaries in this state, and four of whom shall be public members.
One of the public members shall be a member of a nonprofit
organization advocating on behalf of the elderly, and one of the
public members shall be a probate court investigator.
(b) Each member of the committee shall be appointed for a term of
four years, and shall hold office until the appointment of his or her
successor or until one year shall have elapsed since the expiration
of the term for which he or she was appointed, whichever first
occurs.
(c) Vacancies shall be filled by the appointing power for the
unexpired portion of the terms in which they occur. No person shall
serve as a member of the committee for more than two consecutive
terms.
(d) The Governor shall appoint the member from a nonprofit
organization advocating on behalf of the elderly, the probate court
investigator, and the three licensees. The Senate Committee on Rules
and the Speaker of the Assembly shall each appoint a public member.
(e) Every member of the committee shall receive per diem and
expenses as provided in Sections 103 and 113.
(f) The committee shall do all of the following:
(1) Examine the functions and policies of the bureau and make
recommendations with respect to policies, practices, and regulations
as may be deemed important and necessary by the director or the chief
to promote the interests of consumers or that otherwise promote the
welfare of the public.
(2) Consider and make appropriate recommendations to the bureau in
any matter relating to professional fiduciaries in this state.
(3) Provide assistance as may be requested by the bureau in the
exercise of its powers or duties.
(4) Meet at least once each quarter. All meetings of the committee
shall be public meetings.
(g) The bureau shall meet and consult with the committee regarding
general policy issues related to professional fiduciaries.
(h) Notwithstanding any other provision of law, if the bureau
becomes inoperative or is repealed in accordance with Section 6510,
or by subsequent acts, the committee shall succeed to and is vested
with all the duties, powers, purposes, responsibilities, and
jurisdiction, not otherwise repealed or made inoperative, of the
bureau and its chief. The succession of the committee to the
functions of the bureau as provided in this subdivision shall
establish the committee as the Professional Fiduciaries Committee in
the department within the meaning of Section 22, and all references
to the bureau in this code shall be considered as references to the
committee.
6513. The bureau may employ, subject to civil service and other
provisions of law, other employees as may be necessary to carry out
the provisions of this chapter under the direction of the
chief.
6514. The bureau shall keep a complete record of all its
proceedings and all licenses issued, renewed, or revoked, and a
detailed statement of receipts and disbursements.
6515. The duty of administering and enforcing this chapter is
vested in the bureau and the chief. In the performance of this duty,
the bureau and the chief have all of the powers of, and are subject
to all of the responsibilities vested in and imposed upon, the head
of a department by Chapter 2 (commencing with Section 11150) of Part
1 of Division 3 of Title 2 of the Government Code.
6516. Protection of the public shall be the highest priority for
the bureau in exercising its licensing, regulatory, and disciplinary
functions. Whenever the protection of the public is inconsistent with
other interests sought to be promoted, the protection of the public
shall be paramount.
6517. The bureau may adopt, amend, or repeal, in accordance with
the provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code), regulations necessary to enable the bureau to
carry into effect the provisions of law relating to this chapter.
6518. (a) The bureau shall be responsible for administering the
licensing and regulatory program established in this chapter.
(b) The bureau shall approve classes qualifying for prelicense
education, as well as classes qualifying for annual continuing
education required by this chapter. The bureau shall maintain a
current list of all approved classes.
(c) The bureau shall arrange for the preparation and
administration of licensing examinations.
6520. The bureau shall adopt, by regulation, a Professional
Fiduciaries Code of Ethics. The Professional Fiduciaries Code of
Ethics shall be consistent with all statutory requirements, as well
as requirements developed by the courts and the Judicial Council. The
Professional Fiduciaries Code of Ethics shall be provided
electronically on the bureau's Internet Web site and to persons who
request an application for licensure. The bureau may, by regulation,
amend the Professional Fiduciaries Code of Ethics from time to time,
as it deems necessary, provided that no amendment shall be effective
with regard to a licensee until the licensee's next annual license
renewal cycle, as specified in subdivision (a) of Section 6542, is
completed. Any amendment to the Professional Fiduciaries Code of
Ethics shall be included in the license renewal materials sent to a
licensee.
Article 3. Licensing
6530. (a) On and after July 1, 2008, no person shall act or hold
himself or herself out to the public as a professional fiduciary
unless that person is licensed as a professional fiduciary in
accordance with the provisions of this chapter.
(b) This section does not apply to a person licensed as an
attorney under the State Bar Act (Chapter 4 (commencing with Section
6000)).
(c) This section does not apply to a person licensed as, and
acting within the scope of practice of, a certified public accountant
pursuant to Chapter 1 (commencing with Section 5000) of Division 3.
(d) This section does not apply to a person enrolled as an agent
to practice before the Internal Revenue Service who is acting within
the scope of practice pursuant to Part 10 of Title 31 of the Code of
Federal Regulations.
6531. No professional fiduciary shall operate with an expired,
suspended, or revoked license.
6532. A person who has been licensed by the bureau may identify
himself or herself as a "licensed professional fiduciary."
6533. In order to meet the qualifications for licensure as a
professional fiduciary a person shall meet all of the following
requirements:
(a) Be at least 21 years of age.
(b) Be a United States citizen, or be legally admitted to the
United States.
(c) Have not committed any acts that are ground for denial of a
license under Section 480 or 6536.
(d) Submit fingerprint images as specified in Section 6533.5 in
order to obtain criminal offender record information.
(e) Have completed the required prelicensing education described
in Section 6538.
(f) Have passed the licensing examination administered by the
bureau pursuant to Section 6539.
(g) Have at least one of the following:
(1) A baccalaureate degree of arts or sciences from a college or
university accredited by a nationally recognized accrediting body of
colleges and universities or a higher level of education.
(2) An associate of arts or science degree from a college or
university accredited by a nationally recognized accrediting body of
colleges and universities, and at least five years of experience with
substantive fiduciary responsibilities working for a professional
fiduciary, public agency, or financial institution acting as a
conservator, guardian, trustee, personal representative, or agent
under a power of attorney.
(3) Experience of not less than three years, prior to July 1,
2008, with substantive fiduciary responsibilities working for a
public agency or financial institution acting as a conservator,
guardian, trustee, personal representative, or agent under a power of
attorney.
(h) Agree to adhere to the Professional Fiduciaries Code of Ethics
and to all statutes and regulations.
(i) Consent to the bureau conducting a credit check on the
applicant.
(j) File a completed application for licensure with the bureau on
a form provided by the bureau and signed by the applicant under
penalty of perjury.
(k) Submit with the license application a nonrefundable
application fee, as specified in this chapter.
6533.5. Criminal offender record information shall be obtained on
each applicant as provided in this section.
(a) Each applicant shall submit fingerprint images to the
Department of Justice for the purpose of obtaining criminal offender
record information regarding state and federal level convictions and
arrests, including arrests where the Department of Justice
establishes that the person is free on bail or on his or her own
recognizance pending trial or appeal.
(b) When received, the Department of Justice shall forward to the
Federal Bureau of Investigation requests for federal summary criminal
history information received pursuant to this section. The
Department of Justice shall review the information returned from the
Federal Bureau of Investigation and compile and disseminate a fitness
determination to the bureau.
(c) The Department of Justice shall provide a response to the
bureau pursuant to subdivision (p) of Section 11105 of the Penal
Code.
(d) The bureau shall request from the Department of Justice
subsequent arrest notification service, as provided pursuant to
Section 11105.2 of the Penal Code.
(e) The Department of Justice shall charge a fee sufficient to
cover the cost of processing the request described in this section.
6534. (a) The bureau shall maintain the following information in
each licensee's file, shall make this information available to a
court for any purpose, including the determination of the
appropriateness of appointing or continuing the appointment of, or
removing, the licensee as a conservator, guardian, trustee, or
personal representative, and shall otherwise keep this information
confidential, except as provided in subdivisions (b) and (c) of this
section:
(1) The names of the licensee's current conservatees or wards and
the trusts or estates currently administered by the licensee.
(2) The aggregate dollar value of all assets currently under the
licensee's supervision as a professional fiduciary.
(3) The licensee's current addresses and telephone numbers for his
or her place of business and place of residence.
(4) Whether the licensee has ever been removed for cause as
conservator, guardian, trustee, or personal representative or has
ever resigned as conservator, guardian, trustee, or personal
representative in a specific case, the circumstances causing that
removal or resignation, and the case names, court locations, and case
numbers associated with the removal or resignation.
(5) The case names, court locations, and case numbers of all
conservatorship, guardianship, or trust or other estate
administration cases that are closed for which the licensee served as
the conservator, guardian, trustee, or personal representative.
(6) Information regarding any discipline imposed upon the licensee
by the bureau.
(7) Whether the licensee has ever filed for bankruptcy or held a
controlling financial interest in a business that filed for
bankruptcy.
(b) The bureau shall make the information in paragraphs (2), (4),
(6), and (7) of subdivision (a) available to the public.
(c) The bureau shall also publish information regarding licensees
on the Internet as specified in Section 27. The information shall
include, but shall not be limited to, information regarding license
status and the information specified under subdivision (b).
6535. The bureau shall approve or deny licensure in a timely
manner to applicants who apply for licensure. Upon approval of a
license, the bureau shall notify the applicant of issuance of the
license, and shall issue a license certificate identifying him or her
as a "licensed professional fiduciary."
6536. The bureau shall review all applications for licensure and
may investigate an applicant's qualifications for licensure. The
bureau shall approve those applications that meet the requirements
for licensure, but shall not issue a license to any applicant who
meets any of the following criteria:
(a) Does not meet the qualifications for licensure under this
chapter.
(b) Has been convicted of a crime substantially related to the
qualifications, functions, or duties of a fiduciary.
(c) Has engaged in fraud or deceit in applying for a license under
this chapter.
(d) Has engaged in dishonesty, fraud, or gross negligence in
performing the functions or duties of a fiduciary, including engaging
in such conduct prior to July 1, 2008.
(e) Has been removed as a fiduciary by a court for breach of trust
committed intentionally, with gross negligence, in bad faith, or
with reckless indifference, or has demonstrated a pattern of
negligent conduct, including a removal prior to July 1, 2008, and all
appeals have been taken, or the time to file an appeal has expired.
6537. The bureau may deny a license for the reasons specified in
Section 480 or 6536. An applicant notified of the denial of his or
her application for licensure shall have the right to appeal to the
bureau as specified in Chapter 2 (commencing with Section 480) of
Division 1.5.
6538. (a) To qualify for licensure, an applicant shall have
completed 30 hours of prelicensing education courses provided by an
educational program approved by the bureau.
(b) To renew a license, a licensee shall complete 15 hours of
approved continuing education courses each year.
(c) The cost of any educational course required by this chapter
shall not be borne by any client served by a licensee.
6539. As a requirement for licensure, an applicant shall take and
pass the licensing examination administered by the bureau. The
bureau shall determine the frequency with which the examination will
be given. The bureau shall also determine the frequency with which an
applicant for reexamination may sit for the examination. The bureau
shall administer the examination through a computer-based examination
process and may also administer the examination through other means.
6540. Individuals, entities, agencies, and associations that
propose to offer educational programs qualifying for the prelicensing
educational or continuing educational requirements of this chapter
shall apply for and obtain the approval of the bureau.
6541. (a) A license shall expire one year after it was issued on
the last day of the month in which it was issued.
(b) A license may be renewed by filing a renewal application with
the bureau, submitting the annual statement required by Section 6561,
submitting proof of the licensee's compliance with the continuing
education requirements of this chapter, and payment of the renewal
fee set by the bureau, provided that the licensee has not engaged in
conduct that would justify the bureau's refusal to grant the renewal.
Acts justifying the bureau's refusal to renew a license shall
include any of the following:
(1) Conviction of a crime substantially related to the
qualifications, functions, or duties of a fiduciary.
(2) Fraud or deceit in obtaining a license under this chapter.
(3) Dishonesty, fraud, or gross negligence in performing the
functions or duties of a professional fiduciary.
(4) Removal by a court as a fiduciary for breach of fiduciary duty
if all appeals have been taken or the time to file an appeal has
expired.
Article 4. Practice Provisions
6560. A licensee shall keep complete and accurate records of
client accounts, and shall make those records available for audit by
the bureau.
6561. (a) A licensee shall initially, and annually thereafter,
file with the bureau a statement under penalty of perjury containing
the following:
(1) Her or his business address, telephone number, and facsimile
number.
(2) Whether or not he or she has been removed as conservator,
guardian, trustee, or personal representative for cause. The licensee
may file an additional statement of the issues and facts pertaining
to the case.
(3) The case names, court locations, and case numbers for all
matters where the licensee has been appointed by the court.
(4) Whether he or she has been found by a court to have breached a
fiduciary duty.
(5) Whether he or she has resigned or settled a matter in which a
complaint has been filed, along with the case number and a statement
of the issues and facts pertaining to the allegations.
(6) Any licenses or professional certificates held by the
licensee.
(7) Any ownership or beneficial interests in any businesses or
other enterprises held by the licensee or by a family member that
receives or has received payments from a client of the licensee.
(8) Whether the licensee has ever filed for bankruptcy or held a
controlling financial interest in a business that filed for
bankruptcy.
(9) The name of any persons or entities that have an interest in
the licensee's professional fiduciary business.
(10) Whether the licensee has been convicted of a crime .
(b) The statement by the licensee required by this section may be
filed electronically with the bureau, in a form approved by the
bureau. However, any additional statement filed under paragraph (2)
of subdivision (a) shall be filed in writing.
6562. The annual statement shall be filed with the bureau 60 days
prior to the expiration of the license as provided in subdivision
(a) of Section 6541.
Article 5. Enforcement and Disciplinary Proceedings
6580. (a) The bureau may upon its own, and shall, upon the
receipt of a complaint from any person, investigate the actions of
any professional fiduciary. The bureau shall review a professional
fiduciary's alleged violation of statute, regulation, or the
Professional Fiduciaries Code of Ethics and any other complaint
referred to it by the public, a public agency, or the department, and
may impose sanctions upon a finding of a violation or a breach of
fiduciary duty.
(b) Sanctions shall include any of the following:
(1) Administrative citations and fines as provided in Section
125.9 for a violation of this chapter, the Professional Fiduciaries
Code of Ethics, or any regulation adopted under this chapter.
(2) License suspension, probation, or revocation.
(c) The bureau shall provide on the Internet information regarding
any sanctions imposed by the bureau on licensees, including, but not
limited to, information regarding citations, fines, suspensions, and
revocations of licenses or other related enforcement action taken by
the bureau relative to the licensee.
6582. All proceedings against a licensee for any violation of
this chapter or any regulations adopted by the bureau shall be
conducted in accordance with the Administrative Procedure Act
(Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code), and shall be prosecuted by the
Attorney General's office, and the bureau shall have all the
powers granted therein.
6582.5. Notwithstanding Section 6582, if any violation occurs, in
its discretion, the bureau may refer the case to the Attorney
General or to the local district attorney for criminal prosecution.
The referral of a case for criminal prosecution shall not preclude
the bureau from taking any other action provided for in this chapter.
6583. The bureau shall establish a system of administrative
citations and fines under Section 125.9 for violations of this
chapter, the Professional Fiduciaries Code of Ethics, or any
regulation adopted under this chapter.
6584. A license issued under this chapter may be suspended,
revoked, denied, or other disciplinary action may be imposed for one
or more of the following causes:
(a) Conviction of any felony or any misdemeanor, if the
misdemeanor is substantially related to the functions and duties of a
professional fiduciary. The record of conviction, or a certified
copy thereof, is conclusive evidence of the conviction.
(b) Failure to notify the bureau of a conviction as required by
paragraph (10) of subdivision (a) of Section 6561.
(c) Fraud or misrepresentation in obtaining a license.
(d) Fraud, dishonesty, corruption, willful violation of duty,
gross negligence or incompetence in practice, or unprofessional
conduct in, or related to, the practice of a professional fiduciary.
For purposes of this section, unprofessional conduct includes, but is
not limited to, acts contrary to professional standards concerning
any provision of law substantially related to the duties of a
professional fiduciary.
(e) Failure to comply with, or to pay a monetary sanction imposed
by, a court for failure to provide timely reports. The record of the
court order, or a certified copy thereof, is conclusive evidence that
the sanction was imposed.
(f) Failure to pay a civil penalty relating to the licensee's
professional fiduciary duties.
(g) The revocation of, suspension of, or other disciplinary action
against, any other professional license by the State of California
or by another state. A certified copy of the revocation, suspension,
or disciplinary action is conclusive evidence of that action.
(h) Violation of this chapter or of the applicable provisions of
Division 4 (commencing with Section 1400), Division 4.5 (commencing
with Section 4000), Division 4.7 (commencing with Section 4600), or
Division 5 (commencing with Section 5000) of the Probate Code or of
any of the statutes, rules, or regulations pertaining to duties or
functions of a professional fiduciary.
Article 6. Revenue
6590. All fees collected by the bureau shall be paid into the
Professional Fiduciary Fund in the State Treasury, which is hereby
created. The money in the fund shall be available to the bureau for
expenditure for the purposes of this chapter only upon appropriation
by the Legislature.
6591. The Professional Fiduciary Fund shall be the successor fund
to those funds deposited under the Statewide Registry with the
Department of Justice pursuant to Chapter 13 (commencing with Section
2850) of Part 4 of Division 4 of the Probate Code.
6592. (a) The fee for a professional fiduciary examination and
reexamination shall be set by the bureau through regulation at the
amount necessary to recover the actual costs to develop and
administer the examination.
(b) The license fee to obtain a professional fiduciary license
shall be set by the bureau.
(c) The renewal fee for a professional fiduciary license shall be
set by the bureau.
(d) The license and renewal fees under subdivisions (b) and (c)
shall be set by the bureau through regulation at an amount necessary
to recover the costs to the bureau in carrying out the provisions of
this chapter.
SEC. 4. Section 60.1 is added to the Probate Code, to read:
60.1. (a) "Professional fiduciary" means a person who is a
professional fiduciary as defined under subdivision (f) of Section
6501 of the Business and Professions Code.
(b) On and after July 1, 2008, no person shall act or hold himself
or herself out to the public as a professional fiduciary unless he
or she is licensed as a professional fiduciary under Chapter 6
(commencing with Section 6500) of Division 3 of the Business and
Professions Code.
SEC. 5. Article 4 (commencing with Section 2340) is added to
Chapter 4 of Part 4 of Division 4 of the Probate Code, to read:
Article 4. Professional Fiduciaries
2340. On and after July 1, 2008, a superior court may not appoint
a person to carry out the duties of a professional fiduciary, unless
he or she holds a valid, unexpired, unsuspended license as a
professional fiduciary under Chapter 6 (commencing with Section 6500)
of Division 3 of the Business and Professions Code.
2341. This article shall become operative on July 1, 2008.
SEC. 6. Section 2345 is added to the Probate Code, to read:
2345. This article shall remain in effect only until July 1,
2008, and as of January 1, 2009, is repealed, unless a later enacted
statute, that is enacted before January 1, 2009, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 7. Section 2856 is added to the Probate Code, to read:
2856. This chapter shall remain in effect only until July 1,
2008, and as of January 1, 2009, is repealed, unless a later enacted
statute, that is enacted before January 1, 2009, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 8. This act shall only become operative if Senate Bill 1116,
Senate Bill 1716, and Assembly Bill 1363 of the 2005-06 Regular
Session are enacted and become effective on or before January 1,
2007.
SEC. 9. 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.