BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1685| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1685 Author: Williams (D) Amended: 4/21/14 in Assembly Vote: 21 SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 8-0, 6/16/14 AYES: Lieu, Wyland, Berryhill, Block, Corbett, Galgiani, Hill, Torres NO VOTE RECORDED: Hernandez SENATE APPROPRIATIONS COMMITTEE : 6-0, 6/30/14 AYES: De León, Walters, Hill, Lara, Padilla, Steinberg NO VOTE RECORDED: Gaines ASSEMBLY FLOOR : 72-0, 5/8/14 - See last page for vote SUBJECT : Structural pest control operators: fees SOURCE : Pest Control Operators of California DIGEST : This bill increases the statutory maximum for licensure examination fees charged by the Structural Pest Control Board (SPCB). ANALYSIS : Existing law: 1. Provides for the licensure and regulation of the practice of structural pest control by SPCB. CONTINUED AB 1685 Page 2 2. Requires SPCB to examine all applicants for a license to practice as an applicator, field representative, or operator in any of the three branches of structural pest control and apply all fees. 3. Permits SPCB to charge a fee for examinations for the renewal of licenses, but prohibits the fee from exceeding $50 per examination. 4. Establishes a fee schedule for the various stages in the application process, including examination fees. The fees are set at $10 for applicators, $15 for field representatives, and $24 for operators. This bill: 1. Authorizes a registered structural pest control company to provide by electronic mail (e-mail), if an e-mail address has been provided, a written notice to the owner or owner's agent, and the tenant of the premises where the pest control work is to be done. 2. Removes the $15 cap on the applicator's examination fee, and instead authorizes SPCB to charge a fee in an amount sufficient to cover the reasonable regulatory cost of administering the examination, as specified. 3. Increases the maximum licensure examination fees as follows: A. Operator examination fees from $25 to $100; B. Field Representative examination fees from $15 to $75; and C. Applicator examination fees from $15 to $60. 4. Removes the $50 cap on examination fees in cases where the exam is taken during the course of license renewal, and instead authorizes SPCB to charge an examination fee amount sufficient to cover the reasonable regulatory cost of administering each exam. Background In January 2013, SPCB's examinations were compromised when CONTINUED AB 1685 Page 3 examination participants misappropriated examination questions. This subversion led to suspension of the examinations until SPCB was able to draft a new examination at a cost of $41,532. Computer-based testing is seen as a way to decrease the risk of the occurrence of cheating. Further, because SPCB currently only has two examination sites, computer-based testing will improve testing availability and efficacy, particularly for out-of-state candidates who will save on costs associated with airfare and other travel to California to take an examination. There are currently 17 proposed computer-based testing sites in California and 22 sites in other states. Currently, SPCB is paying the increased cost for computer-based testing. However, SPCB is only authorized to incur this increased cost through 2014 in anticipation that it can raise the fee in 2015. Fees assessed for these examinations will be based on actual costs to administer the examinations (currently $37.50 under contract with the Department Consumer Affairs and an outside vendor for computer-based testing) and miscellaneous costs for staffing. A moderate increase in these fees to modernize testing methodologies allows SPCB to more efficiently and effectively offer the tests required to become a licensed operator in California. Comments According to the author's office, this bill helps fund the implementation of computer-based testing for licensees which will accomplish the following: reduce the risk of cheating; simplify test validation, scheduling and monitoring for SPCB staff and examinees; and significantly increase the number of examination sites in and out of state, making it easier and cheaper for applicants to take an exam. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: CONTINUED AB 1685 Page 4 Minor costs to SPCB to revise regulations to reflect increased examination fees. (Structural Pest Control Fund) Estimated revenue gains of approximately $364,000 for expenditure on computer-based testing of applicants, based on an anticipated examination fee increase of $40. (Structural Pest Control Fund). The Structural Pest Control Fund, which supports the activities of the SPCB, is in a declining condition. Expenditures from the Fund outpaced revenues by $593,000 in the current year and are projected to outpace revenues by $547,000 in 2014-15. The Fund's reserve has declined from $1.37 million at the end of 2012-13, to $770,000 at the end of 2013-14, and is projected to be $223,000 at the end of 2104-15. This bill provides authority to raise the licensing examination fees beyond the current proposal to increase the fees by $40 per licensing category. The additional fee authority could help the condition of the Fund. SUPPORT : (Verified 7/1/14) Pest Control Operators of California (source) Structural Pest Control Board ARGUMENTS IN SUPPORT : According to the bill's sponsor, Pest Control Operators of California (PCOC), this bill helps bring the industry up to date with advances in today's technology. PCOC believes this bill will help improve the application and licensing process in a manner that will save pest control companies far more than the nominal fee increased proposed. The organization also adds that this bill improves consumer protection d and helps small businesses in California. SPCB writes, "The ability to offer CBT [computer-based testing] examinations will help the Board ensure its applicants meet an acceptable level of competency for licensure. This helps the Board achieve its goals of protection of public health and the promotion of worker safety." ASSEMBLY FLOOR : 72-0, 5/8/14 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian CONTINUED AB 1685 Page 5 Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Fong, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Donnelly, Eggman, Fox, Gorell, Mansoor, Patterson, V. Manuel Pérez, Vacancy MW:d 7/2/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED