BILL ANALYSIS Ó ----------------------------------------------------------------------- |Hearing Date:April 29, 2013 |Bill No:SB | | |822 | ----------------------------------------------------------------------- SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Curren D. Price, Jr., Chair Bill No: SB 822Author:Business, Professions and Economic Development Committee As Amended:April 22, 2013 Fiscal:Yes SUBJECT: Professions and vocations. SUMMARY: Makes several non-controversial, minor, non-substantive or technical changes to various provisions within the Business and Professions Code (BPC) relating to the regulatory boards of the Department of Consumer Affairs (DCA). Existing law: 1)Provides for the licensing and regulation of various professions and businesses by some 23 boards, 4 committees, 9 bureaus, and 1 commission within the DCA under various licensing acts within the BPC. 2)Establishes certain general provisions of the BPC: a) Transfers the duties, powers, purpose, responsibilities, and jurisdiction of the Cemetery Board and the Board of Funeral Directors and Embalmers to the Department of Consumer Affairs as of January 1, 1996. (BPC § 102.1) b) Requires the Structural Pest Control Board to make certain reports during the 1995/1996 Budget Year. (BPC § 102.2) 3)Makes the following provisions relating to the California Board of Accountancy (CBA): a) Provides that, effective July 1, 2013, a licensed certified public accountant (CPA) from another state may practice in SB 822 Page 2 California subject to certain requirements, including notifying the CBA within 15 days of any disciplinary action taken against them by another state for fraud, gross negligence, theft, embezzlement, reckless accounting practice, or if the licensee is barred by the United States Securities and Exchange Commission or the Public Company Accounting Oversight Board, or if the licensee's right to practice is suspended by any government entity. (BPC § 5096) b) Authorizes CBA to issue citations and fines to California licensees who violate specified sections of law. Beginning July 1, 2013, the law authorizes the CBA to revoke, suspend, or fine a practice privilege holder for specified violations. (BPC § 5096.2) 4)Contains the following provisions relating to the Contractors State License Board (CSLB): a) Authorizes a contractor that meets specified experience conditions, to waive the applicable license classification exam and obtain an additional license classification based solely on the qualifier's experience, and requires that at least 3% of these "waiver applications" undergo a "comprehensive field investigation" and that every waiver application that is approved be reported to the CSLB at each of the quarterly meetings as specified. (BPC § 7065.3) b) Authorizes the registrar to order a licensee who aids and abets unlicensed practice to make restitution through a citation in lieu of an accusation. (BPC § 7114) c) Requires a licensee to submit an acceptable renewal application prior to expiration of the license in order to avoid a break in time in the license record and a delinquency fee ($180.00 for an active license). (BPC § 7141) 5)Contains the following provisions relating to Board of Guide Dogs for the Blind (BGDB): a) Provides that the BGDB shall hold regular meetings at least once a year at which an examination of applicants for certificates of registration shall be given. (BPC § 7206) b) Refers to "guide dog and seeing-eye dog." (BPC § 7210) SB 822 Page 3 6)Contains the following provisions relating to Board for Professional Engineers, Land Surveyors and Geologists (BPELSG): a) Authorizes the BPELSG to issue a retired status license for professional engineers and land surveyors but does not authorize a retired license status professional geologist or geophysicist. b) Establishes criteria for a land surveyor to file a record of survey. (BPC § 8773) 7)Contains the following provisions relating to Fictitious Business Name Statements: a) Makes various references to "married couple" throughout the law dealing with fictitious business names, but refers to "husband and wife" in BPC § 17914. This bill: 1)Repeals outdated provisions of the BPC. (BPC §§ 102.1, 102.2) 2)Makes the following changes relating to the California Board of Accountancy (CBA): a) Requires an out-of-state licensee to notify the CBA of pending criminal charges and allow the CBA to initiate an investigation to determine whether there is immediate consumer harm. (BPC § 5096) b) Authorizes the CBA to issue citations to out-of-state licensees practicing in California under practice privilege. (BPC §§ 5096.2, 5096.12) 3)Makes the following changes relating to the Contractors State License Board (CSLB): a) Repeals a redundant requirement that requires a license application to be posted for public review before the license is issued, and removes an outdated requirement to conduct a "field" investigation of a licensee's qualification for a specialty license (BPC § 7065.3) b) Clarifies the registrar's authority to order a licensee to make restitution for aiding or abetting unlicensed activity. (BPC § 7114) SB 822 Page 4 c) Provides that an incomplete license renewal submitted prior to the license expiration date, and returned to the licensee by the CSLB shall not be subject to the delinquency fee if the applicant corrects the application and returns it within 30 days of the expiration date. (BPC § 7141) 4)Makes the following changes relating to the Board of Guide Dogs for the Blind (BGDB): a) Strikes a reference to the board members administering licensing examinations to guide dog instructors. (BPC § 7206) b) Makes conforming changes by striking out a reference to "seeing-eye dog" and only referring to "guide dog," and makes technical changes. (BPC § 7210) 5)Makes the following changes relating to the Board for Professional Engineers, Land Surveyors and Geologists (BPELSG): a) Establishes a retired status license for a professional geologist or geophysicist. (BPC § 7206) b) Sets the fee for a retired registration for a professional geologist or geophysicist at not more than 50% of the license fee. (BPC § 7887) 6)Makes the following changes relating to Fictitious Business Name Statements: a) Makes a conforming change to refer to "married couple" rather than to "husband and wife." (BPC § 17914) FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by Legislative Counsel. COMMENTS: 1.Purpose. This bill is one of three "committee bills" authored by the Business, Professions and Economic Development Committee (Committee) and is intended to consolidate a number of non-controversial provisions related to various regulatory programs and professions governed by the BPC. Consolidating the provisions in one bill is designed to relieve the various licensing boards, bureaus, professions and other regulatory agencies from the necessity and SB 822 Page 5 burden of having separate measures for a number of non-controversial revisions. Many of the provisions of this bill are minor, technical and updating changes, while other provisions are substantive changes intended to improve the ability of various licensing programs and other entities to efficiently and effectively administer their respective laws. However, as a Committee bill, if controversy or opposition should arise regarding any provision that cannot be resolved, then that provision will be removed from the bill. This will eliminate the chance of placing any of the other provisions in jeopardy. 2.Background. The following is background and reasons for the more significant and substantive provisions in this measure: a) General Provisions. As a Trailer Bill to the Budget Act of 1995, the BPC § 102.1 transferred the duties, powers, purpose, responsibilities, and jurisdiction of the Cemetery Board and the Board of Funeral Directors and Embalmers to the DCA as of January 1, 1996. Under the terms of this law, the transfer was to be operative only during the period that legislation is not enacted to consolidate or otherwise restructure the Cemetery Board and the Funeral Directors and Embalmers Board into another board or entity (BPC § 102.1 (d)). In 2000, AB 2888 (Consumer Protection, Governmental Efficiency and Economic Development Committee, Chapter 568, Statutes of 2000) consolidated the Cemetery Board and Board of Funeral Directors and Embalmers into the current Cemetery and Funeral Bureau, thereby setting aside Section 102.1. The BPC § 102.2 simply required the Structural Pest Control Board to make certain reports during the 1995/1996 Budget Year. Both of these sections are outdated and no longer needed. (BPC §§ 102.1 and 102.2) b) Board of Accountancy. According to the CBA, an out-of-state licensee who exercises a practice privilege in California is required to notify the CBA within 15 days of the occurrence of any disciplinary action from another state for fraud, gross negligence, theft, embezzlement, reckless accounting practice, or if the licensee is barred by the United States Securities and Exchange Commission or the Public Company Accounting Oversight Board, or if the licensee's right to practice is suspended by any government entity. However, an out-of-state licensee who exercises a practice privilege in California is not required to SB 822 Page 6 notify the CBA of any pending criminal charges. As a result, the CBA will receive inconsistent notifications of pending criminal charges. This bill would require an out of state licensee practicing in California to notify the CBA of any pending criminal charges. The CBA is authorized by Section 125.9 of the Business and Professions Code (B&P Code) to issue citations and fines to California licensees who violate specified sections of law. Beginning July 1, 2013, Section 5096.2 will authorize the CBA to revoke, suspend, or fine a practice privilege holder for specified violations. The law, as it presently exists, does not authorize the CBA to issue citations to out-of-state licensees practicing in California. c) Contractors State License Board. According to the CSLB, there are duplicative posting requirements under the Contractors Law. BPC § 7080.5 requires that all applications for licensure (including waiver applications) be posted for public review, and BPC § 7065.3 requires applications for an additional license classification to be posted for public review, before the additional license classification is issued. CSLB further states that investigations for additional license classifications do not require any type of review in the "field." Because of the conditions required for approval, the investigations consist strictly of review of documentation that must be submitted by the contractor. The term "field" as used in § 7065.3 is superfluous. CSLB states without the change to BPC § 7114, a restitution order cannot be included in an accusation even though the underlying charge of aiding and abetting unlicensed practice is included in the pleading for disciplinary action. As such, restitution could not be a condition for reinstatement of the license, leaving the consumer with no alternative but to try to recoup the financial loss through a civil action. CSLB states that every month a number of licensee renewal applications contain simple errors, such as missing signatures on the application. Because of these errors the applications cannot be processed and must be returned to the licensee for corrections. Even though CSLB sends renewal applications 60 days prior to the expiration date, applications are often postmarked a week (or less) prior to the expiration date, allowing very little time for processing and returning incomplete renewals. For such cases licensees who must mail in corrected applications will, in addition to experiencing a break in current license status, be SB 822 Page 7 required to pay the delinquency fee even though they made a good-faith effort to submit a timely application. d) Board of Guide Dogs for the Blind. According to BGDB, in 2005, the BDGB adopted an Occupational Analysis which ultimately recommended the guide dog instructor exam no longer be administered by the BGDB, but instead, administered by a panel of subject matter experts in order to be legally defensible. Therefore, the BDGB is requesting a clarifying amendment to BPC § 7206. BGDB states that the law refers to "guide dogs or seeing-eye dogs." However, "seeing-eye dog" refers to a specific type of dog from a particular guide dog school, according to BGDB, and reference to the term should be eliminated. (BPC § 7210) e) Board for Professional Engineers, Land Surveyors and Geologists. The BPELSG states that a geologist or geophysicist who retires from the profession, has one of two options; either stop paying the renewal fee which causes the license to go to a delinquent status after the license expiration date, and eventually to a cancelled status, (five years after the license expiration date), or to continue to pay the renewal fee every two years to keep the license in an active status even though they are retired from the profession. A delinquent or cancelled status can often have a negative connotation because it implies that the individual has not complied with a requirement. The license status is public information and prominently displayed on the BPELSG's website, making the delinquent status available for anyone to see. Some licensees have requested to have the option of a retired license status because they have worked hard, accomplished much and take pride in having passed the examinations and maintaining a license in good standing for many years. A delinquent or cancelled status can be viewed as a huge downgrade after several years in a prestigious status. However, choosing to maintain a current license status is costly, especially for an individual that is no longer working and possibly on a fixed income due to retirement from the profession. In addition, under the Professional Engineers Act and the Professional Land Surveyors Act, engineers and land surveyors have the choice of a retired status, while geologists and geophysicists do not have that option. SB 822 Page 8 f) Fictitious Business Name Statements. According to the California Association of Clerks and Election Officials, AB 1325 (Lara, Chapter 368, Statutes of 2012) made a number of changes relating to fictitious business names, including making reference to a "married couple" throughout the law dealing with fictitious business names, rather than to "husband and wife." A conforming change should be made in BPC § 17914. SUPPORT AND OPPOSITION: Support: Board for Professional Engineers, Land Surveyors and Geologists Board of Guide Dogs for the Blind California Association of Clerks and Election Officials Contractors State License Board Executive Officer, California Board of Accountancy Opposition: None received as of April 23, 2013 Consultant:G. V. Ayers