BILL ANALYSIS Ó ----------------------------------------------------------------------- |Hearing Date:May 2, 2011 |Bill No:SB | | |543 | ----------------------------------------------------------------------- SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Curren D. Price, Jr., Chair Bill No: SB 543Author:Price As Amended:April 14, 2011Fiscal: Yes SUBJECT: Business and professions: regulatory boards. SUMMARY: Extends the sunset date of the California Architects Board (CAB), Contractors State License Board (CSLB), Landscape Architects Technical Committee (LATC), Board for Professional Engineers, Land Surveyors, and Geologists (BPELSG), State Board of Guide Dogs for the Blind (Guide Dog Board), State Athletic Commission (Commission). Makes programmatic and administrative changes to some of the boards, committees and commissions whose operation is being extended. Existing law: 1) Provides for the licensing and regulation of various professions and businesses by some 23 boards, 4 committees, 8 bureaus, and 1 commission within the Department of Consumer Affairs under various Business and Professions Code (BPC) licensing acts. 2) Requires the licensing applicants of specified boards to submit a full set of fingerprints for the purposes of conducting criminal history record checks, and authorizes the licensing boards to obtain and receive, at its discretion, criminal history information from the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). The boards subject to this requirement are: (BPC § 144) California Board of Accountancy State Athletic Commission Board of Behavioral Sciences Court Reporters Board SB 543 Page 2 State Board of Guide Dogs for the Blind California State Board of Pharmacy Board of Registered Nursing Veterinary Medical Board Registered Veterinary Technician Committee Board of Vocational Nursing and Psychiatric Technicians Respiratory Care Board of California Hearing Aid Dispensers Advisory Commission Physical Therapy Board Physician Assistant Committee of the Medical Board of California Speech-Language Pathology and Audiology Board Medical Board of California State Board of Optometry Acupuncture Board Cemetery and Funeral Bureau Bureau of Security and Investigative Services Division of Investigation Board of Psychology The California Board of Occupational Therapy Structural Pest Control Board Contractors State License Board Bureau of Naturopathic Medicine The Professional Fiduciaries Bureau 3)Establishes CAB until January 1, 2012. (BPC § 5510) 4)Authorizes CAB to appoint an Executive Officer (EO) until January 1, 2012. (BPC § 5517) 5)Authorizes the CAB to regulate and implement an intern development program until January 1, 2012. (BPC § 5552.5) 6)Specifies that licenses issued or renewed by CAB expire at 12 midnight on the last day of the birth month of the license holder in each odd numbered year following the issuance or renewal of the license. Clarifies that to renew an unexpired license, the license holder shall apply for renewal before the time at which the license would otherwise expire. (BPC § 5600) 7)Establishes LATC under CAB until January 1, 2012 and authorizes LATC to: assist CAB in the examination of candidates for a landscape architect's license; investigate, assist and make recommendations to CAB about the regulation of landscape architects; perform delegated duties and functions and; send a SB 543 Page 3 representative to CAB meetings to report on activities. (BPC § 5620 and BPC § 5622) 8)Establishes BPELSG until January 1, 2012. (BPC § 6710) 9)Authorizes BPELSG to appoint an EO until January 1, 2012. (BPC § 6714) 10)Prohibits use of the title "structural engineer" by any person unless he or she is a licensed civil engineer in California and has been deemed qualified as a structural engineer according to rules and regulations established by BPELSG. (BPC § 6736) 11)Specifies that an applicant to use the title "structural engineer" must pass a written exam that incorporates a national exam by a nationally recognized entity approved by BPELSG and must pass a supplemental California specific exam that tests the applicant's knowledge of state laws, rules and regulations, seismicity and structural engineering unique to this state. (BPC § 6763.1) 12)Creates the Professional Engineer and Land Surveyor's Fund. (BPC § 6797 and BPC § 8800) 13)Establishes CSLB, subject to review by DCA limited only to unresolved issues identified by the Joint Committee on Boards, Commissions and Consumer Protection, until January 1, 2012. (BPC § 7000.5) 14)Authorizes CSLB to appoint, with DCA director approval, a registrar of contractors as EO until January 1, 2012. (BPC § 7011) 15)Establishes the Guide Dog Board until January 1, 2012 (BPC § 7200). 16)Establishes a pilot project for arbitration of disputes between dog users and dog schools over continued custody and use of dogs until January 1, 2012. (BPC § 7215.6) 17)Establishes the Geologists and Geophysics Fund. (BPC § 7885) 18)Requires applicants for registration as a geologist to pay an exam fee set by the board, not to exceed $450. (BPC § 7887) 19)Establishes BPELSG as the entity responsible for carrying out SB 543 Page 4 the Professional Land Surveyors Act until January 1, 2012. (BPC § 8710) 20)Establishes the Commission until January 1, 2012. (BPC § 18602) 21)Requires the Commission to provide a report to the Legislature by July 30, 2010 on the condition of the Neurological Examination Account and the Boxers' Pension Fund. This bill: 1) Adds BPELSG to the list of specified boards whose licensing applicants are required to submit a full set of fingerprints for the purposes of conducting criminal history record checks. 2) Extends the date of operation of CAB until January 1, 2014. 3) Removes the sunset date on CAB's authority to implement an intern development program, granting permanent authority to CAB. 4) Amends CAB's license renewal process to clarify that licenses expire no more than 24 months after the issue date and to clarify that the expiration date of the original license shall be set by CAB in a manner to best distribute renewal procedures throughout each year. Specifies that to renew and unexpired license, the license holder shall apply for a renewal on or before the expiration date of the license. 5) Extends the date of operation of LATC until January 1, 2014. 6) Extends the date of operation of BPELSG until January 1, 2014. 7) Deletes the requirement for a California specific exam for structural engineers. 8) Adds "Geologist's and Geophysicist's" to the name of the BPELSG fund, creating the "Board of Professional Engineer's, Land Surveyor's, Geologist's and Geophysicist's Fund." 9) Removes the cap on the exam fee set by the BPELSG for registration as a geologist. 10)Extends the operation of CSLB until January 1, 2012 and deletes an obsolete reference to the Joint Committee on Boards, Commissions SB 543 Page 5 and Consumer Protection. 11)Extends the operation of the Guide Dog Board and arbitration pilot project until January 1, 2014. 12)Extends the operation of the Commission until January 1, 2014 and requires the Commission to provide a report to the Legislature by July 30, 2012 on the condition of the Neurological Examination Account and the Boxers' Pension Fund. FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by Legislative Counsel. COMMENTS: 1. Purpose. This bill is one of 7 "sunset bills" authored by the Chair of the Business Professions and Economic Development Committee (Committee). Under current law, each of the boards, committees and commissions named below will expire on January 1, 2012. SB 543 makes necessary statutory changes to the Business and Professions Code to extend the sunset date of the California Architects Board (CAB), Contractors State License Board (CSLB), Landscape Architects Technical Committee (LATC), Board for Professional Engineers, Land Surveyors, and Geologists (BPELSG), State Board of Guide Dogs for the Blind (Guide Dog Board), State Athletic Commission (Commission). This bill will ensure that consumers continue to be protected by oversight of the professionals licensed by CAB, CSLB, LATC, BPELSG, Guide Dog Board and Commission while also implementing changes to better promote the protection of the public, as recommended by the Committee in Background Papers for the recent oversight hearings, based on collection of substantive data and testimony. 2. Background. In 2011, the Committee conducted oversight hearings to review 9 boards: the Board of Registered Nursing, the Board of Vocational Nursing and Psychiatric Technicians, the Dental Board of California, the Commission, the Board of Accountancy, Professional Fiduciaries Bureau, the CSLB, the BPELSG, the CAB and the LATC. The Committee also conducted oversight hearings of the Department of Real Estate and the Office of Real Estate Appraisers. The Committee began its review of these licensing agencies in March with three days of hearings. This bill, and the accompanying sunset bills, is intended to implement legislative changes as recommended in the Committee's Background Papers for several licensing boards reviewed by the Committee this year. SB 543 Page 6 3. California Architects Board (CAB). The CAB is responsible for implementation and enforcement of the Architects Practice Act; the laws and regulations related to the licensure, practice and discipline of the architecture and landscape architecture industry in California. CAB currently licenses 24,117 licensees. CAB renews licenses on a bi-annual basis in set years, rather than as an ongoing process, which appears to be impacting the Board's budget balancing. As all boards and commissions under DCA are currently subject to a hiring freeze imposed by Governor Brown, following the action of his predecessor Governor Schwarzenegger, staff shortages and limited resources are a problem many boards are experiencing. Additionally, Governor Brown's budget proposes borrowing money from other boards as loans to the General Fund to make up for a significant budget shortfall for FY 2011-12. While CAB may not immediately be impacted by this effort, streamlining its internal processes to prepare for further impact to its ability to effectively conduct business should be a goal. The Committee found that renewal and associated fees should be ongoing, rather than performed in stated years to better utilize staff resources while balancing revenue with expenditures. This bill amends CAB's license renewal fee collection process so that renewals occur in a manner that may create a steadier and more predictable fund level from year to year. CAB has implemented important programmatic and operational changes and enhancements since its last sunset extension, as well as made important policy decisions and adopted regulatory changes, including: Converting its California Supplemental Examination (CSE) from the oral format to a computer based format which is much more accessible to candidates, as is be available 6 days a week year round at 13 different sites throughout California and ten sites out of state, rather than the previous oral format, which was offered 6 times per year alternating between the Bay Area and Orange County. The addition of Continuing Education Requirement on Disabled Access. The Board now requires licensees to complete five hours of continuing education on disabled access provisions each two year renewal period. Implementation of a structured internship program which is viewed as a valuable tool of assuring that interns gain broad experience in all relevant areas of practice and as a SB 543 Page 7 critical means of ensuring reciprocity so California architects have greater ability to practice in other states. Implementation of a Website, www.architect.ca.gov, which is designed to explain licensure requirements to students and the wide range of career possibilities in architecture. Conducting a major study of education and experience requirements for landscape architect. Implementation of regulations to allow for: public information disclosure to ensure clear, consistent, and complete information is available for consumers; increased fines that can be assessed for violations of the Architects Practice Act; requirement for licensee response for information requested regarding complaints; clarifying what type of business can use the word "architect" in its name; codifying a national standard of specifying that exam scores for a division of the national exam are good for five years; sponsoring legislation to clarify that licensees and insurance companies report settlement, judgments and arbitration awards over $5,000; sponsoring legislation to clarify how unlicensed individuals can collaborate with architects and; supporting and implementing legislation requiring California architects to complete mandatory continuing education courses on disabled access requirements as a condition of license renewal. In 2004, the Board adopted a structured internship requirement as a prerequisite for licensure as a means of exposing interns to a full range of the necessary areas of practice. Candidates who are eligible to take the Architect Registration Examination (ARE), which is administered by the National Council of Architectural Registration Boards (NCARB), are required to complete NCARB's Intern Development Program (IDP). To complement IDP, CAB developed its Comprehensive Intern Development Program (CIDP) which aims to ensure that an intern's experience is effective and verified. The program is designed to encourage better communication between the intern and supervisor while enhancing accountability. CIDP requires interns to gain practical experience performing specific key functions in the practice of architecture and submit evidence-based documentation of that experience through work samples and written narratives that are discussed by interns and their supervisors. The program is working well and CAB's efforts to shape its future have been successful, and are continuing. This bill grants CAB permanent authority to implement an intern development program. SB 543 Page 8 The Committee found that CAB has shown over the years a strong commitment to improve its overall efficiency and effectiveness and has worked cooperatively with the Legislature and Committee to bring about necessary changes. This bill extends the sunset on CAB for 4 years . 1. Landscape Architects Technical Committee (LATC). California began regulating the practice of landscape architecture in 1953 with the formation of the Board of Landscape Architects (BLA). In 1997, BLA was allowed to sunset after review by this Committee and CAB was recommended as the appropriate oversight agency for landscape architects, due to the similarities between the two professions and the existing infrastructure of CAB's regulatory programs. In April 1997, the groups reached consensus and CAB unanimously supported legislation to establish LATC under its jurisdiction. LATC was statutorily established, with the purpose of acting in an advisory capacity to CAB on examination and other matters pertaining to the regulation of the practice of landscape architecture in California. This structure allows LATC and CAB to perform all of the licensing and enforcement functions required of a state regulatory body. LATC is responsible for the examination, licensure, and enforcement programs concerning landscape architects in the state of California. LATC currently licenses more than 3,500 of the over 15,000 licensed landscape architects in the United States. California has both a practice act, which precludes unlicensed individuals from practicing landscape architecture, and a title act, which restricts the use of the title "landscape architect" to those who have been licensed by LATC. In 2004, the California Performance Review's (CPR), conducted during Governor Schwarzenegger's second year in office, recommendation was to eliminate CAB and LATC because they are not needed to conduct licensing and regulatory activities of professional disciplines and to transfer their functions to the new Division of Licensing under the Department of Commerce and Consumer Protection. Both the Legislative Analyst Office and the CPR Commission rejected this proposal. The Governor's Reorganization Plan to convert CAB to a bureau and eliminate LATC was rejected by the Legislature. LATC has implemented important programmatic and operational changes and enhancements since its last sunset extension, as well as made important policy decisions and adopted regulatory changes, including: SB 543 Page 9 Conducting an occupational analysis to identify critical job activities performed by landscape architects licensed in California as part of LATC's comprehensive review of the practice of landscape architecture and to serve as a basis for the examination program. Providing a report and recommendations on California's eligibility requirements and access to landscape architecture licensure in California. Taking steps to increase awareness of LATC and the profession it regulates through outreach efforts to public agencies, firms/businesses, associations, landscape architectural schools and inviting landscape architecture faculty to attend and participate at LATC meetings. Strengthening its enforcement program by adding an additional 0.4 position. Clarifying the exempt area of practice for consumers and practitioners in order to ensure the public's safety and promote efficient enforcement of statutes through legislative changes. Creating a candidate education/experience tracking system based on the recommendations of the Education Subcommittee. Streamlining examination processing and reducing costs by contracting with the Council of Landscape Architectural Registration Boards (CLARB) to administer all five sections of the Landscape Architects Registration Examination (LARE). Redeveloping the format of the California Supplemental Exam (CSE) from a take-home written exam to a computer-based, multiple choice exam. Reviewing and approving the University of California Extension Certificate Programs according to LATC's requirements for an approved Extension Certificate Program. Holding annual strategic planning sessions. Updating publications to reflect changes in licensure requirements and landscape architecture laws. SB 543 Page 10 Creating an email subscription lists for landscape architect candidates, licensees, professionals, faculty and the public. Creating an online consumer satisfaction survey to analyze trends and improve services. LATC has shown over the years a strong commitment to improve its overall efficiency and effectiveness and has worked cooperatively with the Legislature and this Committee to bring about necessary changes. It is a regulatory program that has been found to be efficient and effective when previously reviewed during Sunset Review and by DCA. One of the benefits of ongoing regulation of the profession is direct participation of landscape architects in decisions regarding oversight of their profession. This bill extends the sunset on LATC for 4 years . 1. Board for Professional Engineers, Land Surveyors, and Geologists (BPELSG). BPELSG is responsible for regulating the practice of professional engineers and a number of branches of engineering, and also land surveyors, geologists and geophysicists. Engineers, land surveyors, geologists, and geophysicists make professional judgments, which have major financial, health, safety, and other significant consequences on a daily basis. BPELSG is responsible for implementation and enforcement of the Professional Engineers Act, the Professional Land Surveyors' Act, and the Geologist and Geophysicist Act; the laws and regulations related to the education, examination, licensure, practice and discipline of engineers, land surveyors, geologists and geophysicists. BPELSG has implemented important programmatic and operational changes and enhancements since its last sunset extension, as well as made important policy decisions and adopted regulatory changes, including: Implementation of its reporting of legal actions program where all professional engineers and land surveyors are required to report criminal convictions; civil action judgments, settlements, and arbitration awards; and administrative actions to the Board within 90 days of their occurrence or from when the licensee has knowledge of the action. Authorization of a selected organization to receive SB 543 Page 11 payments directly from applicants for examination fees and contracting with an outside vendor for the direct collection of national examination fees. More timely licensure of eligible candidates. Biennial strategic planning sessions to review accomplishments during the previous two years and to revise the plan to reflect future goals and objectives. Use of a national examination to better facilitate licensure in California of structural engineers who are licensed in other states. BPELSG currently treats the licensing and regulation of geologists and geophysicists as a separate function (Program) apart from that of the licensing and regulation of engineers and land surveyors. Legislation enacted during the 4th Extraordinary Session of 2009 (ABx4 20) eliminated the Board for Geologists and Geophysicists and transferred all of the duties, powers, purposes, responsibilities, and jurisdiction to regulate the practices of geology and geophysics to the Board for Professional Engineers and Land Surveyors (BPELS). The transfer of authority became effective October 23, 2009. The Geologist and Geophysicist Act and the Rules and Regulations pertaining to the practices of geology and geophysics remained in effect. The title of BPELS was then changed to the "Board for Professional Engineers, Land Surveyors, and Geologists" pursuant to AB 1431 (Hill, Chapter 696, Statutes of 2010) and the composition of the Board was also increased from 13 to 15 by adding a licensed geologist or geophysicist and a public member to the Board. It was the decision of BPELSG to continue with a separate "Geologists and Geophysicists Program" to provide for the licensing and qualifications and enforce the laws and regulations as it pertains to geologists and geophysicists. The Geologist and Geophysicists Program is a parallel program to that for engineers and land surveyors. The budget, staff, and online systems have been maintained as separate programs, and all fees are directed to the appropriate accounts. The former Board for Geologists and Geophysicists Fund has not been comingled with the Engineers and Land Surveyors Fund. There is some indication that the reason for keeping the merger of the Geologist and Geophysicist Board with that of BPELSG as a separate Program was that there may be some action in the future to possibly undo what the Governor and Legislature did back in 2009 (based on a lawsuit that had been filed by an association of professional geologists following the SB 543 Page 12 elimination of the Board for Geologists and Geophysicists). This appears doubtful. It was also looked upon as a "cost savings" approach by the former Governor when the staffing of the Geologists and Geophysicists Board was reduced. Bringing the separate program of geologists and geophysicists under BPELSG may at least help address some of the resource and staffing issues which both this separate Program has as well as that of BPELSG and improve the overall effectiveness of the functions of this Program. This bill merges the Geologists and Geophysicists program with that of the engineers and land surveyors and eliminates the separate Geologists and Geophysicists Fund, specifying that all moneys should be deposited into the new Professional Engineer's, Land Surveyor's, Geologist's and Geophysicist's Fund . According to BPELSG, prior to 2004, a civil engineer applying to use the title "structural engineer" was required to pass the 16-hour California Structural examination. At that time, the National Council of Examiners for Engineering and Surveying (NCEES) also provided a national examination for structural engineers, but it was not used for licensing in California. Based on discussions during the prior Sunset Review process, it was determined that the Board should use the national examination in conjunction with a state specific examination. The Board made this transition in 2004. The Board's Structural Engineers Technical Advisory Committee (SE TAC) recommended to the Board in April of 2009 that the new 16-hour NCEES Structural examination be administered in California for structural licensing beginning in April 2011, and that the legislative requirement for a California specific structural examination be eliminated. The requirements for a California specific examination for structural engineering is unnecessary since the 16-hour NCEES Structural Examination has been considered as testing for all the material previously provided in the state specific examination. Reliance on the national exam can also greatly facilitate comity licensing, as all other states will be using this new examination as the only requirement for structural licensing. This bill eliminates the requirement for a state specific structural engineering examination so that BPELSG no longer has to create a "take-home" multiple choice examination to meet the current statutory requirement. BPELSG attempted, after seeking this same authority in 2003 and 2004, to seek legislation to obtain authority to fingerprint applicants to best determine criminal activity or record. BPELSG indicates that its applications for in-training certificates and for professional licensure require all applicants to state whether or not they have been convicted of a crime, because current law SB 543 Page 13 allows the Board to deny certification or licensure if the applicant has been convicted of a crime substantially related to the qualifications, functions, and duties of the professional practice. However, the Board does not have the legal authority to obtain criminal history information to verify if the information provided on the applications is correct. Since the Board has no legal authority to independently verify the truthfulness of an applicant's response, the Board must rely solely on the information provided by the applicant on the applications. This current process does not adequately protect consumers. Additionally, the Board can take disciplinary action against a licensee if the licensee has been convicted of a crime substantially related to the qualifications, functions, and duties of the professional practice. However, the Board is not able to proactively monitor whether its licensees have been convicted of crimes because it is not able to obtain criminal history information directly. The Board must wait for someone to submit a complaint and provide the conviction information. Again, this current process does not adequately protect consumers. This bill clarifies that BPELSG is one of the boards, bureaus, divisions, and programs under DCA that may obtain both state and federal criminal history information. BPELSG indicates that the Geologist and Geophysicist Program can increase its revenue by increasing the exam fee for the Professional Geologist's exam. Currently, the national examinations administered by the Program consist of a Practice of Geology exam and a Fundamentals of Geology exam. These examinations are prepared by and purchased from the National Association of State Board of Geology (ASBOG). The two national exams and a California Specific Exam (CSE) exam must be taken and passed to achieve licensure as a Professional Geologist. The Practice of Geology exam costs the Program $250, and the Fundamentals of Geology exam costs $150. However, applicants are only being charged $150 each for the exam. Raising the ASBOG examination fees to match the amount the Program spends on purchasing the examination will not only increase its revenue, it will bring the Program into compliance with current statute. This bill removes the $450 cap on fees charged for exam fees. The health, safety and welfare of consumers is protected by a well-regulated engineering, land surveying and geology profession. BPELSG has shown over the years a strong commitment to improve its overall efficiency and effectiveness and has worked cooperatively with the Legislature and this Committee to bring about necessary changes. SB 543 Page 14 This bill extends the sunset on the BPELSG for 4 years. 1. Contractors State License Board (CSLB). The CSLB is responsible for implementation and enforcement of the Contractors State License Law; the laws and regulations related to the licensure, practice and discipline of the construction industry in California. All businesses and individuals who construct or alter, or offer to construct or alter, any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more. The Board licenses approximately 310,000 contractors in 43 license classifications and two certifications. CSLB issues some 27,000 licenses each year, and more than 123,000 licenses are renewed each year. A license may be issued to an individual, partnership, corporation, or joint venture. All licenses must have a qualifying individual (also referred to as "qualifier"). A qualifying individual is the person listed on CSLB records who satisfies the experience and examination requirements for a license. The Board also registers some 7,400 home improvement salespersons (HIS) who are engaged in the sale of home improvement goods and services. CSLB has implemented important programmatic and operational changes and enhancements since its last sunset extension, as well as made important policy decisions and adopted regulatory changes, including: Implementation of an Imaging and Workflow Automation System (IWAS) which is a system to scan, route, retrieve (search), process, and print various documents used by licensing staff who process applications and also allows enforcement staff to scan, retrieve, and print documents for use in their analysis and processing of cases. A commitment to alternative dispute resolution, as recognized by the California Dispute Resolution Council for CSLB's arbitration programs, as well as its on-site negotiation program, mandatory settlement conference policies, and extensive conciliation efforts. Participation in the Economic and Employment Enforcement Coalition (EEEC), a coalition of state and federal agencies charged with overlapping jurisdiction in the area of labor law enforcement that was created to make a concerted, consistent, and vigorous effort to combat illegal and unscrupulous SB 543 Page 15 operators. Establishment of a partnership with the Los Angeles City Attorney's Office to streamline the procedure for processing consumer complaints against unlicensed activity, enabling CSLB to refer cases to the L.A. City Attorney's Office within 60 days of receipt. Use of new software to administer exams. In 2007, CSLB began administering all examinations using the State Contractors Official Regulatory Exam (SCORE) software, a new Microsoft Windows-based system developed in-house by Testing Division staff. The SCORE system provides a reliable, user-friendly system, and has the technology to automate reports, increase examination security, and, in many cases, trouble shoot and fix hardware and software problems without the need for staff to travel to the affected site. Examination results are available in real time and statistical analyses are built into the system, allowing test development staff to perform statistical analysis for each of their assigned examination programs in a matter of minutes. Receipt of the 2009 Innovation in Regulation award by the National Association of State Contracting Licensing Agencies (NASCLA) in recognition of its innovation, creativity, and excellence in maintaining fair and balanced regulation of the construction industry as demonstrated by the efforts of the Service and Repair Task Force, which brought a sophisticated, organized, and massive fraud ring to justice. Participation in a memoranda of understanding (MOU) for the purpose of sharing enforcement information with the Employment Development Department (EDD), the Division of Occupational Health and Safety (DOSH), the Division of Labor Standards Enforcement (DLSE), the Division of Apprenticeship Standards (DAS), the Department of Transportation (Caltrans), the Franchise Tax Board (FTB), and the Department of Industrial Relations' (DIR) Office of Director - Legal (ODL). During 2009, CSLB worked with each agency to further enhance the existing MOUs; thus, strengthening enforcement of labor, tax, and licensing laws. Implementation of a fingerprint requirement for license applicants so that CSLB can be better informed about convictions by applicants and licensees and have the ability to take necessary action in an effective and consistent manner. SB 543 Page 16 CSLB has shown over the years a strong commitment to improve its overall efficiency and effectiveness and has worked cooperatively with the Legislature and Committee to bring about necessary changes. This bill extends the sunset on CSLB for 4 years . 1. State Board of Guide Dogs for the Blind (Guide Dog Board). The Guide Dog Board is tasked with issuing licenses for the instruction of blind persons in 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. In the 1940s, 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 concern that the blind and visually impaired were being victimized by scam artists, the Guide Dog 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 two schools still exist today; Guide Dogs for the Blind, Inc. in San Rafael and Guide Dogs of America in Sylmar. A third California school, the Guide Dogs of the Desert was licensed in 1972. To ensure that the Committee can review the Guide Dog Board during oversight hearings and properly determine its efficiency and effectiveness, this bill extends the sunset on the Guide Dog Board for 2 years. 2. State Athletic Commission (Commission). The Commission is responsible for protecting the health and safety of its licensees; SB 543 Page 17 boxers, kickboxers and martial arts athletes. Established by initiative in 1924, stemming from concerns for athlete injuries and deaths, the Commission provides direction, management, control of and jurisdiction over professional and amateur boxing, professional and amateur kickboxing, all forms and combinations of full contact martial arts contests, including mixed martial arts (MMA) and matches or exhibitions conducted, held or given in California. Functionally, the Commission consists of four components: licensing, enforcement, regulating events and administering the Professional Boxers' Pension Fund (Pension Fund). The Commission is responsible for implementation and enforcement of the Boxing Act also known as the State Athletic Commission Act. The Commission establishes requirements for licensure, issues and renews licenses, approves and regulates events, assigns ringside officials, investigates complaints received, and enforces applicable laws by issuing fines and suspending or revoking licenses. In 2010, the Commission supervised 184 events, including 82 boxing, 72 MMA, 16 kickboxing and14 muay thai. Federal Law, the Muhammad Ali Boxing Reform Act (Boxing Act) prohibits events from taking place in a state without a regulatory commission unless the fight is regulated by either another state's commission or on sovereign tribal land. Regulated events result in higher levels of protection for fighters than unauthorized or illegal events in addition to added revenue for the state and a boon to the local economy where events take place. The Committee held an oversight hearing focused on the Commission in April 2010. At that time, numerous operational deficiencies, fighter safety issues and problems with amateur MMA regulation were explored and discussed. In addition to administrative issues that plagued the Commission, since it was reconstituted in 2007, Committee members were especially concerned with the process and procedures by which the Commission delegated its authority for amateur MMA regulation. Since that hearing, and throughout the course of the year, the Commission has made several improvements and significant progress in the way that it does business. After years of failing to set the foundation for the Commission's efforts to effectively do business in the form of a Strategic Plan (Plan), and several missed deadlines to prepare a Plan, the Plan was finally completed and submitted to the Legislature in December 2010. The Commission now holds regular meetings that are generally well attended by new, SB 543 Page 18 more engaged Commission members after years of meetings where it was difficult to even establish a quorum. For the first time in many years, the Commission has a full time Executive Officer (EO) and Assistant EO and is not beleaguered with turmoil in personnel, issues involving conflicts of interest, and inappropriate activities on the part of staff. Additionally, there are now more frequent and regular training and informational sessions offered for field staff, covering a more consistent set of subjects, and the Commission is finally holding bi-annual training sessions as outlined in statute to ensure that field staff understand their responsibilities and duties relative to all applicable laws and regulations. The Commission is going through the process of updating regulations in the California Code of Regulations to better conform to current practice and strengthen oversight of athletes and events. The Commission has implemented important programmatic and operational changes and enhancements since its last sunset extension, as well as made important policy decisions and adopted regulatory changes, including: Development of a Strategic Plan which includes goals for efficiency, more proactive public outreach and the formulation of performance measures. Improved spending efforts and cost control. The Commission has focused on optimum utilization of its resources by attempting to assign staff based on proximity to an event and reducing labor and travel costs as well as managing licensing and avoiding backlogs with a small staff. Establishment of new cashiering and accounting practices. The Commission only accepts checks, ensures prompt transmittal to DCA's cashiering unit, is developing a receipt system to identify transactions and is creating a desk and field manual to streamline staff procedures. Creation of a temporary database and other systems to create more electronic records. The Commission is updating records with past licensing information and attempting to have a precise tracking system. The Commission is also using software to assist in assigning staff as opposed to relying on hand written lists and cards. Hiring staff and filling vacancies. The Commission has only one key staff position vacant as a means of achieving SB 543 Page 19 cost savings and recently hired an Assistant EO with a strong background in board administration. Positive investment accumulation for the Boxers Pension Fund which historically was insolvent. Exploration into eligible program development and proper expenditures for the Neurological Examination Fund. Monitoring the delegation of authority for regulation of MMA events. The Commission works closely with the nonprofit organization overseeing MMA and receives regular reports on its actions, fee structure and standards. While the Commission has experienced problems over the past number of years, the current membership and management has shown a commitment to improve the Commission's overall efficiency and effectiveness and is working cooperatively with the Legislature and this Committee to bring about necessary changes. California's professional and amateur boxers, kickboxers and mixed martial arts athletes are better served with appropriate oversight, and the state benefits from holding these events in California. This bill extends the sunset on the Commission for 2 years. 1. Related Legislation. Other sunset bills to be presented before the Committee include: SB 538 which deals with the Board of Registered Nursing, SB 539 which deals with the Board of Vocational Nursing and Psychiatric Technicians, SB 540 which deals with the Dental Board of California, SB 541 which deals with Expert Consultants, SB 542 which deals with the Board of Accountancy and the Professional Fiduciaries Bureau, and SB 706 which deals with the Department of Real Estate and the Office of Real Estate Appraisers. 2. Arguments in Support. The Contractors State License Board (CSLB) writes in support of SB 543, noting that "CSLB believes we are working hard to fulfill our consumer protection mandate, and we look forward to continuing to work with the Legislature, consumers and other interested parties to further our efforts." The California Landscape Contractors Association (CLCA) believes that CSLB has made remarkable progress in its mission to protect consumers and provide contractors with a fair and competitive marketplace for their services. CLCA states that allowing CSLB to sunset and be replaced by a bureau would be step backward and a serious blow to open and responsive governance of the construction SB 543 Page 20 industry. Guide Dog Users Inc. (GDUI) , Guide Dog Users of America and the State Board of Guide Dogs for the Blind write in support of extending the date of operation for the Guide Dog Board, noting that the Board provides important services to licensed instructors and visually impaired consumers. Supporters believe that the work of the Guide Dog Board has resulted in improved training standards for training of guide dogs for the blind and an improved process for licensing dog trainers and that it is important for the Board to continue providing consumer protection. SUPPORT AND OPPOSITION: Support: California Landscape Contractors Association (CLCA) Contractors State License Board Guide Dog Users Inc. (GDUI) Guide Dog Users of America State Board of Guide Dogs for the Blind Opposition: None received as of April 26, 2011. Consultant:Sarah Mason