BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 308
                                                                  Page  1

          Date of Hearing:   June 25, 2013

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                              Richard S. Gordon, Chair
                     SB 308 (Price) - As Amended:  June 19, 2013

           SENATE VOTE  :   38-0
           
          SUBJECT  :   Professions and vocations.

           SUMMARY  :   Extends until January 1, 2018 the provisions of the  
          Interior Design Law and the Board of Guide Dogs for the Blind  
          (Board), and extends until January 1, 2016 the provisions of the  
          Board of Barbering and Cosmetology (BBC) and the term of its  
          executive officer, and makes various other technical changes and  
          improvements to those provisions.  Specifically,  this bill  :   

          1)Specifies that nothing in the Interior Design Law shall  
            prohibit interior design or interior decorator services by any  
            person or retail activity.

          2)Requires a certified interior designer (CID) to use a written  
            contract when contracting to provide interior design services  
            to a client as specified, and requires that the written  
            contract be executed by the CID and the client or his or her  
            representative prior to the CID commencing work, and shall  
            include but not be limited to the following provisions:

             a)   A description of the services to be provided to the  
               client by the CID;

             b)   A description of any basis of compensation applicable to  
               the contract and the method of payment agreed upon by the  
               parties;

             c)   The name, address and certification number of the CID  
               and the name and address of the client;

             d)   A description of the procedure that the CID and the  
               client will use to accommodate additional services; 

             e)   A description of the procedure to be used by any party  
               to terminate the contract; 









                                                                  SB 308
                                                                  Page  2

             f)   A three-day rescission clause; and,

             g)   A written disclosure stating whether or not the CID  
               carries errors and omissions insurance.

          3)Specifies that the above provisions do not apply to any of the  
            following;

             a)   Interior design services rendered by a CID for which the  
               client will not pay compensation; and,

             b)   Interior design services rendered by a CID to any of the  
               following:

               i)     A licensed architect;

               ii)    A licensed landscape architect; and, 

               iii)   A licensed engineer.

          4)Clarifies that a written contract includes a contract in  
            electronic form.

          5)Clarifies that the provisions of law pertaining to interior  
            design shall be subject to review by the appropriate policy  
            committees of the Legislature.

          6)Extends the provisions relating to the interior design law  
            until January 1, 2018.

          7)Requires the meetings of an interior design organization  
            issuing interior design stamps, as specified, are subject to  
            the rules of the Bagley-Keene Open Meeting Act.

          8)Clarifies that it is an unfair business practice for any  
            person to represent or hold himself or herself out, or to use  
            the title "certified interior designer" or any other term such  
            as licensed, registered or CID that implies or suggests that  
            the person is certified, as an interior designer when he or  
            she does not hold a valid certification as specified. 

          9)Extends the provisions relating to Board of Guide Dogs for the  
            Blind until January 1, 2018.

          10)Extends the provisions relating to the arbitration procedure  








                                                                  SB 308
                                                                  Page  3

            for the resolution of disputes between guide dog users and  
            guide dog schools until January 1, 2018.

          11)Extends the provisions authorizing the BBC and the provisions  
            authorizing the appointment of an executive officer as  
            specified until January 1, 2016, and requires the BBC to be  
            reviewed by the appropriate policy committees of the  
            Legislature. 

          12)Clarifies that a school approved by the BBC is one that is  
            first approved by the BBC and subsequently approved by the  
            Bureau for Private Postsecondary Education (BPPE), and allows  
            both the BBC and the BPPE to simultaneously process a school's  
            application for approval.

          13)Authorizes the BBC to revoke, suspend, or deny approval of a  
            school on any of the following grounds:  

             a)   Unprofessional conduct which includes, but is not  
               limited to, any of the following:

               i)     Incompetence or gross negligence, including repeated  
                 failure to comply with generally accepted standards for  
                 the practice of barbering, cosmetology, or electrology,  
                 or disregard for the health and safety of patrons;

               ii)    Repeated similar negligent acts; or,

               iii)   Conviction of any crime substantially related to the  
                 qualifications, functions, or duties of the owner of an  
                 approved school, in which case, the records of conviction  
                 or a certified copy thereof shall be conclusive evidence  
                 of the conviction.

             b)   Repeated failure to comply with the rules governing  
               health and safety adopted by the BBC and approved by the  
               California Department of Public Health for the regulation  
               of board-approved schools;

             c)   Repeated failure to comply with the rules adopted by the  
               BBC for the regulation of BBC-approved schools as  
               specified;

             d)   Continued practice by a person knowingly having an  
               infectious or contagious disease;








                                                                  SB 308
                                                                  Page  4


             e)   Habitual drunkenness or habitual use of, or addiction to  
               the use of, any controlled substance;

             f)   Obtaining or attempting to obtain practice in any  
               occupation licensed and regulated as specified, or money or  
               any form of compensation, by fraudulent misrepresentation;

             g)   Refusal to permit or interference with an inspection as  
               specified; or,

             h)   Any action or conduct that would have warranted the  
               denial of a school approval. 

           EXISTING LAW  : 

          1)Defines a CID as a "person who prepares and submits  
            nonstructural or non-seismic plans as specified to local  
            building departments that are of sufficient complexity so as  
            to require the skills of a licensed contractor to implement  
            them, and who engages in programming, planning, designing, and  
            documenting the construction and installation of  
            non-structural or non-seismic elements, finishes and  
            furnishings within the interior spaces of a building and has  
            demonstrated by means of education, experience and examination  
            the competency to protect and enhance the health, safety and  
            welfare of the public." (Business and Professions Code (BPC)  
            Section 5800)

          2)Authorizes a CID to obtain a stamp from an interior design  
            organization that includes a number that uniquely identifies  
            and bears the name of that CID and certifies that the interior  
            designer has provided the interior design organization with  
            evidence of passage of an examination approved by that  
            interior design organization. (BPC 5801)

          3)States that the procedure for the issuance of a stamp by an  
            interior design organization includes the examination  
            recognized and required by the organization and is subject to  
            the occupational analyses and examination validation as  
            required every five to seven years. (BPC5801.1)

          4)Specifies that it is an unfair business practice for any CID  
            or any other person to advertise or put out any sign or card  
            or other device, including any stamp or seal, or to represent  








                                                                  SB 308
                                                                  Page  5

            to the public through any print or electronic media that he or  
            she is "state certified" to practice interior design or to use  
            any other words or symbols that represent to the public that  
            he or she is certified. (BPC 5804)

          5)Repeals the provisions relating to interior designers on  
            January 1, 2014. (BPC 5800 et seq.)

          6)Establishes a State Board of Guide Dogs for the Blind (Board)  
            under the Department of Consumer Affairs (DCA). (BPC 7200)

          7)States that the Board has the authority to license for the  
            instruction of blind persons in the use of guide dogs and for  
            the training of guide dogs for use by blind persons, and has  
            the authority to issue licenses to operate schools for the  
            training of guide dogs for the blind and the instruction of  
            blind persons in the use of the guide dogs.  (BPC 7200.5)

          8)Repeals the provisions of law pertaining to the Board's  
            licensing, regulatory and disciplinary authority on January 1,  
            2014.  (BPC 7200)

          9)Establishes a pilot project to provide an arbitration  
            procedure for the purpose of resolving disputes between a  
            guide dog user and a licensed guide dog school as specified,  
            and repeals those provisions on January 1, 2014. (BPC 7215.6)

          10)Establishes the BBC within the DCA and authorizes the BBC to  
            appoint an executive officer subject to the approval of the  
            Director of DCA and repeals these provisions on January 1,  
            2014. (BPC 7303)

          11)States that the power and duties of the BBC are the  
            following:

             a)   Make rules and regulations as specified, in accordance  
               with the Administrative Procedures Act;

             b)   Conduct and administer examinations of applicants for  
               licensure;

             c)   Issue licenses to those applicants that may be entitled  
               thereto;

             d)   Discipline persons who have been determined to be in  








                                                                  SB 308
                                                                  Page  6

               violation of the provisions of, or the regulations adopted  
               pursuant to, the Barbering and Cosmetology Act; and,

             e)   Adopt rules governing sanitary conditions and  
               precautions to be employed as are reasonably necessary to  
               protect the public health and safety in establishments,  
               schools approved by the BBC, and in the practice of any  
               profession as specified. (BPC 7312)

          12)Provides that a school approved by the BBC is one which is  
            licensed by the BPPE or a public school in this state and  
            provides a course of instruction approved by the BBC. (BPC  
            7362)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of the bill  .  This bill is one of four "sunset bills"  
            which extend the operations of certain boards, bureaus and  
            committees regulated by DCA and make various other regulatory  
            improvement.  Specifically, this bill extends until January 1,  
            2018 the provisions establishing the Interior Design Law for  
            CIDs, and the Board regulating the training of guide dogs for  
            the blind.  Additionally, this bill extends until January 1,  
            2016 the provisions establishing the BBC and the term of its  
            executive officer.  SB 308 makes other changes regarding the  
            Interior Design Law and the regulatory programs of the Board  
            as well.  This bill is sponsored by the author. 
             
          2)Author's statement  .  According to the author, "This bill is  
            one of four 'sunset review' bills.  Unless legislation is  
            carried this year to extend the sunset dates for the Board  
            [and] BBC, they will be repealed on January 1, 2014.  In  
            addition, unless legislation is carried this year to extend  
            the sunset date for the Interior Design Law, the entire  
            chapter relating to CIDs and authorizing an interior design  
            organization to issue a certification stamp to an interior  
            designer will be repealed as of January 1, 2014.  This bill  
            extends the Board and the Interior Design Law for four years  
            to January 1, 2018.  The bill would extend the BBC for two  
            years to January 1, 2016.  This bill further makes a number of  
            legislative changes recommended by the boards and the  
            California Council for Interior Design Certification (CCIDC)  
            as well as recommendations made in the Committee's background  








                                                                  SB 308
                                                                  Page  7

            paper [issued in conjunction with the joint sunset review  
            hearings held in March-April 2013]."

           3)Joint oversight hearings and sunset review of DCA licensing  
            boards  .  In March and April of 2013, the Assembly Business,  
            Professions and Consumer Protection Committee and the Senate  
            Business, Professions and Economic Development Committee  
            conducted multiple joint oversight hearings to review 14  
            regulatory boards and other entities within the DCA.  The  
            Committees began their review of these licensing agencies in  
            March and conducted three days of hearings.  This and other  
            sunset bills are intended to implement legislative changes  
            recommended in the respective background reports drafted by  
            the Senate Business, Professions and Economic Development  
            Committee for all of the agencies reviewed by the Committees  
            this year.

           4)The sunset review process  .  The sunset review process provides  
            a formal mechanism for DCA; the Legislature; the regulatory  
            boards, bureaus and committees; interested parties; and  
            stakeholders to make recommendations for improvements to the  
            authority of consumer protection boards and bureaus. This is  
            performed on a standard four-year cycle and was mandated by SB  
            2036 (McCorquodale) (Chapter 908, Statutes of 1994).  The  
            legislation pertaining to this bill was based on specific  
            issues raised and addressed in the reports released by the  
            Senate Business, Professions and Economic Development  
            Committee.  

           5)California Council for Interior Design Certification  .  Current  
            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  
            through education, experience and examination.  The California  
            Council for Interior Design Certification (CCIDC) was created  
            by a coalition of professional interior design organizations  
            in January of 1992 with the intent of being the organization  
            responsible for determining whether interior designers meet  
            the education, experience and examination requirements.  The  
            law provides for an "interior design organization" to  
            administer voluntary certification.  Through 2011 CCIDC  
            certified some 2,255 interior designers. In 2011, CCIDC  
            received and approved 126 applications, and renewed  
            approximately 1,000 certificates. 









                                                                  SB 308
                                                                  Page  8

            The specific components of this bill aim to address some of  
            the issues pertaining to the CCIDC that were reviewed and  
            discussed during the sunset review of the CCIDC.   This bill  
            requires the usage of written contracts to better protect  
            consumers, extends the sunset date of the Interior Design Law  
            until January 1, 2018, and further requires meetings of the  
            CCIDC be subject to the open-meeting requirements of the  
            Bagley-Keene Act. 

           6)Written contracts for interior design work  .  In CCIDC's recent  
            sunset review report, it recommended that CIDs be required to  
            use a written contract when providing interior design services  
            to a client.  Although CCIDC has received only 71 complaints  
            against CIDs since 1992, a substantial number of those  
            complaints related to unfulfilled contract obligations,  
            disputes over charges for goods sold, and failure to deliver  
            goods.  The use of written contracts would lend clarity to  
            those types of disputes.  

          Architects, contractors, engineers and land surveyors are  
            currently required to use written contracts, and are widely  
            considered an effective tool for protecting consumers by  
            ensuring fair contracting and billing practices.  Contracts  
            also protect CIDs by ensuring that both parties understand the  
            essential terms of the agreement, which reduces disputes and  
            litigation.  This bill specifies that a CID should utilize a  
            written contract when providing interior design services and  
            specifies the terms of such a contract. 

           7)Bagley-Keene  .  A major element of public protection in  
            regulatory programs is the transparency of their operations.   
            Under state law, the Bagley-Keene Open Meeting Act  
            (Bagley-Keene Act) generally requires all state boards and  
            commissions to publicly notice their meetings, prepare  
            agendas, accept public testimony and conduct their meetings in  
            public unless specifically authorized under by the  
            Bagley-Keene Act to meet in closed session.  The public  
            meeting requirement applies to board and committee meetings  
            alike.  A meeting is considered a "gathering" of a majority of  
            the board or a majority of a committee of three or more  
            persons where board business will be discussed.  This includes  
            telephone and email communications.  

          Current law does not require the CCIDC to publicly notice its  
            meetings.  This bill would require meetings of the CCIDC to be  








                                                                  SB 308
                                                                  Page  9

            subject to the requirement of Bagley-Keene Act. While the  
            CCDIC is not a state board or commission, the requirement of  
            private certification organizations that are authorized by  
            state law to issue specific certifications to comply with open  
            meeting laws is consistent with what the Legislature has  
            required in 2008 for the massage therapy profession.  

           8)Sunset of the CCIDC  .  The law pertaining to CIDs was initially  
            enacted by SB 153 (Craven) (Chapter 396, Statutes of 1990).   
            The current 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.  That law is  
            set to expire on January 1, 2014, and this bill will ensure  
            that the CCIDC continues certifying interior designers. The  
            CCIDC must also be reviewed again by the appropriate policy  
            committees of the Legislature in four years.

           9)Opposition to proposed interior design amendments  .  Numerous  
            members of the interior design community submitted letters of  
            opposition to the Committee regarding proposed amendments to  
            this bill affecting to a CID's ability to submit interior  
            design plans to local building officials.  However, those  
            proposed amendments were never adopted, and are not included  
            in the current version of this bill.   

          Separately, the American Institute of Building Design,  
            California Society expressed concerns with another set of  
            proposed amendments which would have added a provision to the  
            Health and Safety Code to expand the definition of "registered  
            design professional."  Those proposed amendments were never  
            adopted, and are not included in the current version of this  
            bill.  

          Because these opposition letters pertain only to amendments that  
            were never taken, they are not otherwise reflected in this  
            analysis.

           10)State Board of Guide Dogs for the Blind  .  The Board was  
            established on January 1, 1948 to ensure that blind persons  
            receive well-trained guide dogs, to confirm that blind persons  
            are thoroughly trained to be effective and safe guide dog  
            users, and to assure donors to guide dog charities that their  
            donations will be used for the intended charitable purpose.   
            The Board licenses guide dog schools, guide dog instructors,  








                                                                  SB 308
                                                                  Page  10

            and fundraising programs to open new guide dog schools.  The  
            Board inspects all schools, requires new active guide dog  
            instructors to take a legally defensible written and practical  
            examination, and requires instructors to submit proof of eight  
            hours of continuing education each year to remain licensed.   
            California is the only State with a regulatory program to  
            address guide dog instructors, trainers and schools. During  
            fiscal years 2011/12 the Board had a licensing population of  
            109 active guide dog instructors, and the Board oversees three  
            guide dog schools located throughout California.

           11)Arbitration panel  .  Current law authorizes an arbitration  
            panel for the settlement of disputes between a guide dog user  
            and a licensed guide dog school regarding the continued use of  
            a guide dog by the user in all cases except those in which the  
            dog user is the unconditional legal owner of the dog.  The  
            arbitration program has only been used two times during the  
            nine years it has existed.  This bill extends the arbitration  
            program to allow this tool to continue to be available for  
            guide dog users and guide dog schools in resolving disputes  
            between them.

           12)Sunset of the Board  .  In order to continue the Board's  
            important oversight role and to provide services for blind  
            persons in California, this bill will extend the sunset date  
            of the Board until January 1, 2018, and further requires the  
            Board to be reviewed again in four years by the appropriate  
            policy committees of the Legislature.  

           13)Board of Barbering and Cosmetology (BBC)  .  The BBC is  
            responsible for the licensing and regulation of barbers,  
            cosmetologists, estheticians, electrologists, manicurists,  
            apprentices and establishments.  The BBC is an autonomous  
            regulatory entity under DCA, with full policy and enforcement  
            authority over the practices of hair, skin and nail care, and  
            electrolysis in the state. The Barbering and Cosmetology Act  
            (Act) regulates the practice of barbering, cosmetology and  
            electrolysis. Title protection is provided for the use of the  
            term "cosmetologist" and "barber." The Act also regulates the  
            specialty branches of skin care and nail care within the  
            practice of cosmetology.  The BBC currently regulates over  
            500,000 licensees.

           14)School oversight  .   The BBC approves certain aspects of a  
            barbering, cosmetology and electrology programs including  








                                                                  SB 308
                                                                  Page  11
                                                    
            curriculum, facilities, equipment and textbooks for schools  
            offering training programs for eventual licensees.  In  
            addition, the BPPE approves many institutions to ensure  
            student protections for those individuals attending schools.   
            Current law provides that a school approved by the BBC is one  
            which is licensed by BPPE.  A school that offers cosmetology,  
            barbering or electrology must first be licensed by the BPPE  
            and then must receive a separate approval from the BBC.  The  
            BBC does not obtain a fee from schools for the work it  
            conducts to provide school approval.  

          During the sunset review process, the BBC noted concerns with  
            respect to the dual oversight of the schools and the school  
            approval process and the BBC requested that it be granted sole  
            oversight and sole approval of barbering, cosmetology and  
            electrology schools in the state.  

          Because the BBC has some expertise in the educational and  
            training requirements for its licensees to safely interact  
            with clients, it is no doubt appropriate for the BBC to have  
            some form of approval over barbering, cosmetology and  
            electrology programs offered in California.  It is also  
            appropriate for the BBC to have the ability to remove its  
            approval of schools and programs that do not meet the  
            educational quality standards necessary for an individual to  
            learn how to be a safe, effective beauty practitioner.   
            However, it also appears that the BPPE serves an important  
            function in the continued approval and oversight it provides  
            to schools, as well as the student protections.  This bill  
            therefore combines the school approval role of both the BBC  
            and the BPPE, providing the BBC with the authority to close  
            down bad schools as well.  

           15)Double-referred  .  This bill is double-referred to the  
            Assembly Governmental Organization Committee.  

           16)Related legislation  .  SB 304 (Price) of 2013 would make  
            various changes to the Medical Practice Act and to the Medical  
            Board of California.  This bill is pending in the Assembly  
            Business, Professions and Consumer Protection Committee.

          SB 306 (Price) of 2013 would have extended until January 1, 2018  
            the provisions establishing the State Board of Chiropractic  
            Examiners, the Speech Language Pathology and Audiology and  
            Hearing Aid Dispensers Board, the Physical Therapy Board of  








                                                                  SB 308
                                                                  Page  12

            California and the California Board of Occupational Therapy,  
            and extends the terms of the executive officers of the  
            Physical Therapy Board of California and the Speech Language  
            Pathology and Audiology and Hearing Aid Dispensers Board.   
            This bill was subsequently amended to address an unrelated  
            topic.  

          SB 307 (Price) of 2013 would have extended until January 1, 2018  
            the term of the Veterinary Medicine Board, which provides for  
            the licensure and registration of veterinarians and registered  
            veterinary technicians and the regulation of the practice of  
            veterinary medicine by the Veterinary Medical Board.  This  
            bill was held on the Senate Floor. 
             
             SB 309 (Price) of 2013 extends the term of the State Athletic  
            Commission, which is responsible for licensing and regulating  
            boxing, kickboxing, and martial arts matches and is required  
            to appoint an executive officer until January 1, 2018.  This  
            bill is pending in the Assembly Arts, Entertainment, Sports,  
            Tourism and Internet Media Committee.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          State Board for Guide Dogs for the Blind
          Guide Dogs of America
           
            Opposition 
           
          None on file.

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