BILL ANALYSIS Ó
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|Hearing Date:June 23, 2014 |Bill No:AB |
| |2741 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: AB 2741Author:Bonilla
As Amended: April 10, 2014Fiscal: Yes
SUBJECT: Professional Fiduciaries Bureau.
SUMMARY: Extends until January 1, 2019, the sunset date on the
Professional Fiduciaries Bureau (Bureau) and Chief of the Bureau.
Existing law:
1)Licenses and regulates professional fiduciaries under the
Professional Fiduciaries Act (Act) by the Professional Fiduciaries
Bureau (Bureau) within the Department of Consumer Affairs (DCA), and
makes the Bureau inoperative and repealed on January 1, 2015.
(Business and Professions Code (BPC) § 6510)
2)Establishes a Chief of the Bureau who is appointed by the Governor,
subject to confirmation of the Senate, and provides that the Chief
shall serve under the direction and supervision of the Director and
at the pleasure of the Governor. (BPC § 6510)
3)Vests the duty of administering and enforcing the Act with the Bureau
and the Chief, and provides that the Chief shall have all the powers
and responsibilities of the head of a department, as specified.
(BPC § 6515)
4)Provides that if the Bureau is repealed, the responsibilities and
jurisdiction of the Bureau shall be transferred to the Professional
Fiduciaries Advisory Committee, and that Committee shall be
established as a board within DCA. (BPC § 6510 (h))
This bill:
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1)Extends the sunset date on the Bureau and the Bureau Chief from
January 1, 2015 to January 1, 2019.
2)Makes technical, conforming amendments.
FISCAL EFFECT: This measure was keyed "fiscal" by Legislative
Counsel. The April 30, 2014 Assembly Appropriations Committee
analysis cites 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:
1.Purpose. This bill is one of three "sunset review bills" authored by
the Chair of the Assembly Business, Professions and Consumer
Protection Committee. This bill extends the sunset date on the
Bureau and prevents the responsibilities and jurisdiction of the
Bureau from transferring to the Professional Fiduciaries Advisory
Committee. The other bills are AB 2740 , relating to the Bureau of
Electronic and Appliance Repair, Home Furnishings, and Thermal
Insulation, and AB 1147 , relating to massage therapy.
2.Background. A professional fiduciary is a person who acts as a
conservator of the person or estate, or guardian of the estate or
person, for two or more individuals at the same time who are not
related to the professional fiduciary or to each other. A
professional fiduciary is also someone 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
individuals, at the same time.
3.Oversight Hearings and Sunset Review of Licensing Boards and
Commission of DCA. In 2014, the Senate Business and Professions
Committee and the Assembly Business, Professions and Consumer
Protection Committee (Committees) conducted joint oversight hearings
to review 9 regulatory entities: Bureau of Automotive Repair;
Bureau of Home Furnishings and Thermal Insulation; Bureau for
Private Postsecondary Education (BPPE); California Massage Therapy
Certification program; California Board of Acupuncture; California
Tax Preparers Program; Dental Hygiene Committee of California;
Professional Fiduciaries Bureau; and Structural Pest Control Board.
This Committee also reviewed the performance and effectiveness of
the Community Interest Development Manager's Certification Program.
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The Committees began their review of the licensing agencies in March
and conducted two days of hearings and then more recently held a
hearing on the BPPE. This bill, and the accompanying sunset bills,
are intended to implement legislative changes as recommended by
staff of the Committee's and which are reflected in the Background
Papers prepared by Committee staff for each agency and program
reviewed by the Committees for this year.
4.Review of the Professional Fiduciaries Bureau (Bureau), Issues
Identified and Recommended Changes. The following are some of the
major recommendations made pertaining to the Bureau or areas of
concern reviewed and discussed by the Committee during the review of
the Bureau. The Sunset review report drafted by this Assembly
Committee recommended that the Bureau continue operations until the
next review in 2019, and in the meantime:
The Bureau should consider reducing fees sufficient to
avoid accumulating a 24 month reserve if the Bureau cannot get
budget authority to hire additional staff;
Brief the Legislature on the potential pool of new
professional fiduciaries and provide reasonable yearly targets
for attracting new licensees;
Discuss with the Legislature and the DCA whether to
maintain the Bureau independently if its current staffing and
licensing levels do not change.
a) Issue : Continued Regulation by the Bureau.
Background : The health, safety and welfare of consumers are
protected by the presence of a strong licensing and regulatory
Bureau with oversight over PFs.
The Bureau should be continued with a 4-year extension of its
sunset date so that the Legislature may once again review whether
the issues and recommendations in this Background Paper have been
addressed.
Recommendation : Committee staff recommended that the Bureau be
reviewed by the Committees again in four years.
[ The current language in this bill extends the sunset date on the
Bureau and the Bureau Chief to January 1, 2019.
1.Related Legislation. AB 2740 (Bonilla, 2014) a sunset bill by the
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same Author, subjects the powers and duties of the Bureau of
Electronic and Appliance Repair, Home Furnishings and Thermal
Insulation to review by the appropriate policy committees of the
Legislature as if these provisions were scheduled to be repealed on
January 1, 2019; requests the Bureau to report on specified issues
by March 1, 2015. ( Status : AB 2740 is set for hearing before the
Senate Business, Professions and Economic Development Committee on
June 23, 2014.)
AB 1147 (Bonilla) Revises, recasts and makes a number of substantive,
clarifying, conforming and technical changes to the Massage
Therapists Act as follows: deletes the preemption of ordinances and
local land use authority for "certified-only" massage
establishments; reconstitutes the California Massage Therapy Council
(CAMTC); reinforces local massage ordinances; raises professional
and educational standards for massage therapists; expands the
disciplinary authority of CAMTC; specifies requirements for
operators of massage businesses and establishment.. ( Status : AB
1147 is set for hearing before the Senate Business, Professions and
Economic Development Committee on June 23, 2014.)
AB 2024 (Bonilla, 2014) updates the Professional Fiduciary Act to
authorize "retired" status for licensed fiduciaries and require
cancellation of a license that is not renewed within three years.
( Status : AB 2024 was heard and passed by the Senate Business,
Professions and Economic Development Committee on June 16, 2014.)
AB 1859 (Maienschein, 2014) authorizes professional fiduciaries to
organize as a professional corporation under the Moscone-Knox
Professional Corporation Act. ( Status : AB 1859 is set for hearing
in the Senate Judiciary Committee on June 25, 2014.)
SB 543 (Price, Chapter 488, Statutes of 2011) among other things,
extended the sunset date of the Bureau from 2012 to 2015.
SB 1550 (Figueroa, Chapter 491, Statutes of 2006) established the
Professional Fiduciaries Act, provided for the licensure and
regulation of professional fiduciaries; and created the Professional
Fiduciaries Bureau within the DCA.
2.Arguments in Support. The Professional Fiduciary Association of
California (PFAC) writes in support of the bill, stating PFAC
sponsored the original legislation that created the Professional
Fiduciaries Act and the Professional Fiduciaries Bureau within the
DCA. Since their inception, these state licensure laws, which
include state oversight and enforcement, have been in place to
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protect the public. The Bureau regulates non-family member
professional fiduciaries, including conservators, guardians,
trustees, and agents under durable power of attorney. "PFAC
supports the provisions of AB 2741 that would extend the sunset on
the Act from January 1, 2015 to January 1, 2019. The continuation
of the Act will serve to protect consumers by ensuring the
continuation of the Bureau that is charged with the following
responsibilities: Educating consumers about their rights; Promoting
legal and ethical standards of professional conduct; Investigating
the background of applicants; Administering licensing examinations;
Licensing [professional fiduciaries]; Investigating complaints from
consumers; and, Taking disciplinary action and issuing citations."
SUPPORT AND OPPOSITION:
Support:
Professional Fiduciary Association of California
Opposition:
None received as of June 18, 2014
Consultant:Vince Chee