BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2741
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          ASSEMBLY THIRD READING
          AB 2741 (Bonilla)
          As Amended  April 10, 2014
          Majority vote 

           BUSINESS & PROFESSIONS  13-0    APPROPRIATIONS      13-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonilla, Bocanegra,       |Ayes:|Gatto, Bocanegra,         |
          |     |Campos, Dickinson,        |     |Bradford,                 |
          |     |Eggman, Gordon, Hagman,   |     |Ian Calderon, Campos,     |
          |     |Holden, Maienschein,      |     |Eggman, Gomez, Holden,    |
          |     |Mullin, Skinner, Ting,    |     |Linder, Pan, Quirk,       |
          |     |Wilk                      |     |Ridley-Thomas, Weber      |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Extends the sunset date on the Professional  
          Fiduciaries Bureau (PFB) from January 1, 2015 to January 1,  
          2019. 

           EXISTING LAW  :

          1)Establishes PFB under the jurisdiction of the Department of  
            Consumer Affairs (DCA), and vests the duty of enforcing and  
            administering the Professional Fiduciary Law in the PFB chief.  
             (Business and Professions Code (BPC) Section 6510)

          2)Establishes a Professional Fiduciaries Advisory Committee to  
            examine the functions and policies of PFB and make  
            recommendations with respect to policies, practices, and  
            regulations as may be deemed important and necessary by the  
            PFB chief.  (BPC 6511)

          3)Sunsets PFB on January 1, 2015, and transfers the  
            responsibilities and jurisdiction of PFB to the Professional  
            Fiduciaries Advisory Committee.  (BPC 6510) 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, on-going Special Fund costs of approximately $500,000  
          to extend the PFB beyond the January 1, 2015 sunset date.  This  
          fund is self-supporting with fee revenue.

           COMMENTS  :   








                                                                  AB 2741
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          1)Purpose of this bill.  This bill simply extends the sunset  
            date for PFB by four years to January 1, 2019, and makes a  
            small technical correction.  This bill is author-sponsored.  

          2)Regulation of Professional Fiduciaries.  The Professional  
            Fiduciaries Act (Act) was created in 2006 (SB 1550 (Figueroa)  
            Chapter 491, Statutes of 2006).  PFB was established to  
            license and regulate non-family member Professional  
            Fiduciaries (PFs), including conservators, guardians,  
            trustees, and agents under durable power of attorney.  The  
            Bureau currently licenses 638 PFs.    

            PFs provide critical services to seniors, disabled persons,  
            and minors.  They manage matters for clients including daily  
            care, housing and medical needs, and also offer financial  
            management services ranging from basic bill paying to estate  
            and investment management. 

            In order to qualify for licensure, an applicant must be at  
            least 21 years old, be a US citizen or be legally admitted to  
            the United States, submit fingerprints and pass a background  
            check, pass an examination that includes national and state  
            components, and have either a baccalaureate degree, an  
            associate degree and three years' relevant work experience, or  
            at least five years' relevant work experience prior to 2012.  

            Requirements for licensure also include completing 30 hours of  
            approved pre-licensure education courses and earning 15 hours  
            of continuing education (CE) credit each year for renewal.   
            Licensees must comply with reporting requirements and abide by  
            the Professional Fiduciaries Code of Ethics.

            The Bureau began operation on July 1, 2007.  The Bureau Chief  
            is appointed by the Governor, subject to Senate confirmation,  
            and serves under the direction and supervision of the Director  
            of the Department of Consumer Affairs (DCA) and at the  
            pleasure of the Governor.

          3)2014 Sunset Review Report.  On March 17, 2014, the Senate  
            Business, Professions, and Economic Development Committee and  
            the Assembly Business, Professions and Consumer Protection  
            Committee held a joint sunset review hearing to hear testimony  
            from PFB as to its performance and the necessity for  








                                                                  AB 2741
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            continuing its existence by extending its sunset date.  

            The Sunset review report drafted by this committee recommended  
            that PFB continue operations until the next review in 2019,  
            and in the meantime:

             a)   Consider reducing fees sufficient to avoid accumulating  
               a 24-month reserve if PFB cannot get budget authority to  
               hire additional staff;

             b)   Brief the Legislature on the potential pool of new PFs  
               and provide reasonable yearly targets for attracting new  
               licensees; and,

             c)   Discuss with the Legislature and DCA whether to maintain  
               PFB independently if its current staffing and licensing  
               levels do not change.  

           
          Analysis Prepared by :    Sarah Huchel / B.,P. & C.P. / (916)  
          319-3301 


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