BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 475| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 475 Author: Padilla (D) Amended: As introduced Vote: 21 SEN. BUS., PROF. & ECON. DEV. COMMITTEE : 9-0, 4/20/09 AYES: Negrete McLeod, Aanestad, Corbett, Correa, Florez, Oropeza, Romero, Walters, Yee NO VOTE RECORDED: Wyland SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Guide dogs for the blind SOURCE : State Board for Guide Dogs for the Blind DIGEST : This bill sets the annual renewal fee limit for guide dog schools to no more than 0.005 of the schools annual expenses, requires the State Board of Guide Dogs for the Blind to establish the exact amount of the fee by regulation and requires the renewal fee to be paid by April 30th of each year. ANALYSIS : Existing law: 1.Creates the State Board for Guide Dogs for the Blind (Board), within the Department of Consumer Affairs (DCA), to issue licenses for the instruction of blind persons in CONTINUED SB 475 Page 2 the use of guide dogs and for the training of guide dogs for use by blind persons. The Board also has exclusive authority to license guide dog schools. 2.Establishes the Guide dog for the Blind Fund (Fund) and imposes an annual renewal fee of no more than 0.004 of the school's annual expenses to be deposited in the Fund. This bill sets the annual renewal fee limit for guide dog schools to no more than 0.005 of the school's annual expenses, requires the Board to establish the exact amount of the fee by regulation and requires the renewal fee to be paid by April 30th of each year. Background In the 1940's, there were no minimum standards for guide dog school operations, and it was possible for anyone to open a school. The Industrial Revolution and World War II casualties increased the number of persons who were visually impaired. Guide dog programs of varying quality and competence emerged throughout the country, most of them in California. There was significant public confusion on the role and function of guide dogs in public places and there was a long list of scandalous activities that characterized the guide dog industry. Providing dogs with no training, raising funds with no plans to produce trained dogs, selling dogs, accepting people for training and not providing any and selling unauthorized certification papers were commonplace occurrences. Out of the concern that the blind and visually impaired were being victimized by scam artists, the Board was created to protect the blind by establishing guide dog school operation standards, providing oversight of the disposition of donor funds to licensed schools and licensing and regulating guide dog instructors. Prior to the establishment of the Board, there were approximately 20 guide dog school operations. After the Board was created, only two were able to qualify for licensure. Those schools still exist today; Guide Dogs for the Blind, Inc. in San Rafael and Guide Dogs of America in CONTINUED SB 475 Page 3 Sylmar. A third California school, the Guide dogs of the Desert was licensed in 1972. Department of Consumer Affairs Legal Opinion . In 2007, the Guide Dogs for the Blind, Inc. submitted a request to the Board to have all direct expenses of its Oregon Campus excluded from the calculation of its annual renewal payment on the grounds that it was unfair for them to pay license fees for expenses for services provided outside California and, therefore, the jurisdiction of the Board. In response, the Board requested a DCA legal opinion on the matter and on March 21, 20008, the Board adopted findings of that opinion. The DCA opinion stated that the direct costs for operating the Oregon campus should not be included within the total expenses used for the calculation of the annual renewal fee. The Board believes this decision will reduce its annual revenue by $30,000. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 4/28/09) State Board for Guide Dogs for the Blind (source) California Council of the Blind Guide Dog Users of California Guide Dogs of America Veterinary Medical Board ARGUMENTS IN SUPPORT : According to the sponsor, the State Board of Guide Dogs for the Blind, the annual renewal payment rate was codified in 1994 when the Board changed from a general funded agency to a special funded agency. Since that time, the Board's workload has doubled and it is struggling to maintain a consistent level of services. The Board reports that it has 1.3 staff positions to perform its essential services (licensing, examination and enforcement) but that if it cannot provide those functions, guide dog consumers will be harmed because they will not have an avenue for redress of grievances, minimum training standards for guide dogs or instruction for guide dog users may be adversely affected and the financial integrity of guide dog schools could be compromised. Due to the unstable finances of nonprofit organizations, the Board CONTINUED SB 475 Page 4 states that it needs to have the flexibility to set the annual renewal payment at a rate that can project future spending levels. JJA:cm 4/29/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED