BILL ANALYSIS Ó SB 308 Page 1 SENATE THIRD READING SB 308 (Lieu) As Amended August 5, 2013 Majority vote SENATE VOTE :38-0 BUSINESS & PROFESSIONS 13-0 GOVERNMENTAL ORGANIZATION 16-0 ----------------------------------------------------------------- |Ayes:|Gordon, Jones, Bocanegra, |Ayes:|Hall, Nestande, Bigelow, | | |Campos, Dickinson, | |Campos, Chesbro, Cooley, | | |Bonilla, Hagman, Holden, | |Gray, Hagman, Roger | | |Maienschein, Mullin, | |Hernández, Jones-Sawyer, | | |Skinner, Ting, Wilk | |Levine, Medina, Perea, | | | | |V. Manuel Pérez, Salas, | | | | |Waldron | ----------------------------------------------------------------- APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Gatto, Harkey, Bigelow, | | | | |Bocanegra, Bradford, Ian | | | | |Calderon, Campos, Eggman, | | | | |Gomez, Hall, Holden, | | | | |Linder, Pan, Quirk, | | | | |Wagner, Weber | | | | | | | | ----------------------------------------------------------------- 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 SB 308 Page 2 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; 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. SB 308 Page 3 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 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: SB 308 Page 4 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; 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. FISCAL EFFECT : According to the Assembly Appropriations Committee, annual fee-supported special fund costs associated with continued operation of the following regulatory entities, as follows: 1) BBC - approximately $23 million in revenue and SB 308 Page 5 approximately $20 million in expenditures. 2) Board of Guide Dogs for the Blind - approximately $150,000 in revenue and approximately $200,000 in expenditures. 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 the Department of Consumer Affairs (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. This bill 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 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 SB 308 Page 6 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)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. 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. 5)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, 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 SB 308 Page 7 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. Amendments to these provisions include the extension of the dispute arbitration program and extension of the Board's authorization until January 1, 2018. 6)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. 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. Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916) 319-3301 SB 308 Page 8 FN: 0002132