BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 308 (Price) - Professions and vocations.
          
          Amended: May 2, 2013            Policy Vote: BP&ED 10-0
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2013      Consultant: Mark McKenzie
          
          SUSPENSE FILE. 

          
          Bill Summary: SB 308 would extend the sunset on the Interior  
          Design Law and the Board of Guide Dogs for the Blind (BGDB)  
          until January 1, 2018, and extend the sunset of the Board of  
          Barbering and Cosmetology (BBC) and its executive officer until  
          January 1, 2016.  

          Fiscal Impact: 
              BBC: projected expenditures of approximately $20.5 million  
              annually (Barbering and Cosmetology Fund), supporting 92.2  
              PY until January 1, 2016, fully offset by fee revenues of  
              $22.8 million, based on the proposed 2013-14 budget.

              BGDB: projected expenditures of $197,000 annually (State  
              Board of Guide Dogs for the Blind Fund), supporting 1.5 PY  
              until January 1, 2018, partially offset by fee revenues of  
              $150,000 annually, based on the proposed 2013-14 budget.

              No state costs associated with extending the Interior  
              Design Law and enforcement of certified interior designers.   
              Certification of interior designers is handled by specified  
              nonprofit regulating entities that are outside of state  
              government and are not supported by state funds.

          Background: Current law relating to certification of interior  
          designers was initially enacted in 1990 by SB 153 (Craven), Chap  
          396/1990.  Existing law provides for a voluntary system whereby  
          an interior designer may become certified and obtain a stamp  
          from an interior design organization by demonstrating competency  
          by means of education, experience and examination.  The Interior  
          Design Law is scheduled to sunset on January 1, 2014.

          The Board of Barbering and Cosmetology licenses and regulates  
          barbers, cosmetologists, electrologists, estheticians, and  








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          manicurists after determining, through an examination, that  
          applicants possess the minimum skills and qualifications  
          necessary to provide safe and effective services to the public.   
          BBC conducts both routine and directed health and safety  
          inspections of licensed establishments operating in the state.  
          The Board also investigates allegations of unprofessional  
          conduct, gross negligence, incompetence, fraud, or unlicensed  
          activity.  Schools that train these practitioners must be  
          approved by the Bureau of Private Postsecondary Education, while  
          the BBC approves curriculum, facilities, equipment, and  
          textbooks for schools.  The BBC is scheduled to sunset on  
          January 1, 2014.

          The State Board of Guide Dogs for the Blind's primary objectives  
          are to protect the safety of blind guide dog users by ensuring  
          that instructors and schools possess minimum qualifications and  
          are licensed, and to enforce licensing standards for performance  
          and conduct.  In the 2011-12 fiscal year, the BGDB had a license  
          base of 109 active guide dog instructors and 3 inactive  
          instructors, and the Board currently oversees three guide dog  
          schools in the state.  The BGDB also has an arbitration panel  
          for settling disputes between a guide dog user and a licensed  
          guide dog school regarding the continued use of a guide dog.   
          The arbitration panel has only been utilized two times in the  
          past nine years.  The BGDB and the arbitration program are  
          scheduled to sunset on January 1, 2014.

          Proposed Law: SB 308 would do the following:
                 Extend the provisions of the Interior Design Law until  
               January 1, 2018.  
                 Require that, in order to meet the definition of  
               "certified interior designer," a person must provide plans  
               and documents that illustrate specified aspects of interior  
               design, and engage in coordination and collaboration with  
               other design professionals.
                 Require a certified interior designer to use a written  
               contract that includes specified provisions to provide  
               design services to a client. 
                 Specify that an uncertified person who uses terms such  
               as "licensed," "registered," or "CID" is engaging in an  
               unfair business practice.
                 Require meetings of an interior design organization to  
               comply with specified open meeting laws.
                 Extend the BGCB and an existing arbitration program  








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               until January 1, 2018.
                 Extend the BBC and its executive officer until January  
               1, 2016.
                 Require a school to be approved by the BBC in advance of  
               seeking approval by the Bureau for Private Postsecondary  
               Education, but allow the applications to simultaneously  
               processed.
                 Authorize the BBC to revoke, suspend, or deny approval  
               of a school at any time on any of ten specified grounds.

          Related Legislation: This bill is one of several bills  
          introduced this session to extend the sunset on licensing boards  
          within the Department of Consumer Affairs - including SB 305  
          (Price), SB 306 (Price), SB 307 (Price), SB 308 (Price), and SB  
          309 (Price).

          Staff Comments: The certification of interior designers is  
          performed by nonprofit interior design organizations that are  
          outside of state government.  Since no state funds are  
          associated with the voluntary certification program, this  
          analysis does not discuss the expanded provisions of the  
          Interior Design Law.

          The Department of Consumer Affairs indicates that the provisions  
          of the bill that extend the sunset on the BGDB and BBC are minor  
          and absorbable.  Staff notes that the Barbering and Cosmetology  
          Fund, which supports the activities of the BBC, has a health  
          reserve of approximately $14 million, which is more than  
          sufficient to cover any increased costs to administer the  
          approval, revocation, suspension, or denial of approval of  
          schools.

          Staff notes that the State Board of Guide Dogs for the Blind  
          Fund, which supports the operations of the BGDB, is in a  
          declining condition.  Expenditures from the fund have been  
          outpacing revenues by about $30,000 to $50,000 annually, and the  
          fund's reserve has declined from $164,000 at the end of 2011-12,  
          to $110,000 at the end of 2012-13, and is projected to be  
          $64,000 at the end of 2013-14.  At the current pace, and without  
          corrective action or additional revenues, the fund will be  
          insolvent sometime during the 2015-16 fiscal year, which is two  
          years before the sunset date specified in the bill.










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