BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 822
Author: Senate Business, Professions and Economic Development
Committee
Amended: 8/19/13
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM. : 10-0, 4/29/13
AYES: Price, Emmerson, Block, Corbett, Galgiani, Hernandez,
Hill, Padilla, Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 36-0, 5/20/13 (Consent)
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De León, DeSaulnier, Evans, Fuller, Gaines,
Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,
Knight, Leno, Lieu, Liu, Monning, Nielsen, Padilla, Pavley,
Roth, Steinberg, Torres, Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Emmerson, Lara, Price, Vacancy
ASSEMBLY FLOOR : 75-1, 8/26/13 - See last page for vote
SUBJECT : Professions and vocations
SOURCE : Author
DIGEST : This bill makes several non-controversial, minor,
nonsubstantive 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).
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Assembly Amendments double-joint this bill with SB 152 (Roth);
and make other technical and clarifying changes.
ANALYSIS :
Existing law:
1.Establishes certain general provisions of the BPC by
transferring 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, and requiring the Structural Pest Control Board to make
certain reports during the 1995-96 Budget Year.
2.Makes the following provisions relating to the California
Board of Accountancy (CBA):
A. Provides that, effective July 1, 2013, a licensed
certified public accountant from another state may practice
in 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.
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.
1.Contains the following provisions relating to the Contractors
State License Board (CSLB):
A. Defines the term "contractor" to include any person or
consultant who undertakes a bid to construct a building or
home improvement project, and defines the term
"consultant," for purposes of the definition, to include a
person who oversees a bid, arranges for and sets up work
schedules, or maintains oversight of a construction
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project.
B. 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.
C. Authorizes the registrar of contractors to order a
licensee who aids and abets unlicensed practice to make
restitution through a citation in lieu of an accusation.
D. 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 for an active license).
1.Contains the following provisions relating to Board of Guide
Dogs for the Blind (BGDB):
A. Requires the BGDB to hold regular meetings at least once
a year at which an examination of applicants for
certificates of registration shall be given.
B. Refers to "guide dog" and "seeing-eye dog."
1.Contains the following provisions relating to the 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 status license for a professional
geologist or geophysicist.
B. Authorizes the application of fixed maximum fees for
specified registrations, certificates, and license
renewals.
1.Makes various references to "married couple" throughout the
law dealing with fictitious business names, but refers to
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"husband and wife" in BPC Section 17914.
2.Authorizes service dealers, licensed by the Bureau of
Electronic and Appliance Repair, Home Furnishings, and Thermal
Insulation (Bureau), to install calibrate, service, maintain,
and monitor ignition interlock devices.
This bill:
1.Repeals outdated provisions of the BPC.
2.Makes the following changes relating to the 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.
B. Authorizes the CBA to issue citations to out-of-state
licensees practicing in California under practice
privilege.
1.Makes the following changes relating to the CSLB:
A. Specifies that the term "contractor" or "consultant"
does not include a common interest development (CID)
manager, and clarifies that a CID manager is not required
to hold a contractor's license to perform management
services.
B. Repeals the requirement that the CSLB post a listing of
all applications approved during the previous 12 months at
its quarterly meetings, and deletes a reference to the
outdated requirement to perform "field" investigations for
a specialty license.
C. Clarifies the registrar's authority to order a licensee
to make restitution for aiding or abetting unlicensed
activity.
D. Provides that a license renewal applicant who submitted
an incomplete renewal application prior to his or her
license expiration date will not be required to pay the
delinquency fee, if CSLB returned the incomplete
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application to the applicant for corrections, and then the
licensee resubmitted the completed and acceptable
application within 30 days of the license expiration date.
1.Makes the following changes relating to the BGDB:
A. Strikes a reference to the board members administering
licensing examinations to guide dog instructors.
B. Makes conforming changes by striking out a reference to
"seeing-eye dog" and only referring to "guide dog," and
makes technical changes.
1.Makes the following changes relating to the BPELSG:
A. Establishes a retired status license for a professional
geologist or geophysicist who has been registered by the
board for a minimum of five years within California and a
minimum of 20 years within the United States.
B. Provides that the fee for a retired registration for a
professional geologist or geophysicist shall be fixed at
not more than 50% of the license fee that is in effect on
the date of application for a retired registration.
C. Makes technical changes to BPC Sections 7851 and 7887,
replacing references to the term "registration" with
"license."
1.Makes a conforming change to refer to "married couple" rather
than to "husband and wife," as it relates to fictitious
business name statements.
2.Limits the authorization of a service dealer, licensed by the
Bureau to install, calibrate, service, maintain, and monitor
ignition interlock devices, to licensed persons authorized to
engage in the electronic repair industry, as defined.
3.Contains double-jointing language with SB 152 (Roth).
Background
General provisions . As a Trailer Bill to the Budget Act of
1995, BPC Section 102.1 transferred the duties, powers, purpose,
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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 Section 102.1 (d)). In 2000, AB 2888
(Consumer Protection, Governmental Efficiency and Economic
Development Committee, Chapter 568) consolidated the Cemetery
Board and Board of Funeral Directors and Embalmers into the
current Cemetery and Funeral Bureau, thereby setting aside
Section 102.1. BPC Section 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.
CBA . 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
notify the CBA of any pending criminal charges. As a result,
the CBA will receive inconsistent notifications of pending
criminal charges. This bill requires an out-of-state licensee
practicing in California to notify the CBA of any pending
criminal charges.
The CBA is authorized by BPC Section 125.9 to issue citations
and fines to California licensees who violate specified sections
of law. Beginning July 1, 2013, BPC Section 5096.2 will
authorize the CBA to revoke, suspend, or fine a practice
privilege holder for specified violations. Existing law does
not authorize the CBA to issue citations to out-of-state
licensees practicing in California. This bill permits CBA to
cite out-of-state licensees.
CSLB . According to the CSLB, there are duplicative posting
requirements under the Contractors Law. BPC Section 7080.5
requires that all applications for licensure (including waiver
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applications) be posted for public review, and BPC Section
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.
CSLB states without the change to BPC Section 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 required to pay the delinquency
fee even though they made a good-faith effort to submit a timely
application.
BGDB . 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 Section 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 Section 7210)
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BPELSG. 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 Web site,
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.
Fictitious business name statements. 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."
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee:
CSLB estimates a potential loss of revenue from delinquency
fees in the range of $100,000 per year.
Minor and absorbable costs within the affected boards'
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budgets.
SUPPORT : (Verified 8/27/13)
Board for Professional Engineers, Land Surveyors and Geologists
Board of Guide Dogs for the Blind
California Association of Clerks and Election Officials
California Board of Accountancy
Contractors State License Board
ARGUMENTS IN SUPPORT : The Contractors State License Board
writes, "SB 822 provides that an incomplete renewal application
that had originally been submitted on or before the license
expiration date shall be returned to the licensee with an
explanation, and the licensee shall have 30 days to correct and
resubmit, and shall not be required to pay the renewal
delinquency fee. Under current law, CSLB does not have the
authority to waive the delinquency fee. Licensees in these
circumstances are making a good faith effort to complete their
renewal on-time and should not be penalized with a delinquency
fee."
The Board for Professional Engineers, Land Surveyors, and
Geologists states that this bill establishes a retired license
status and associated fee for professional geologists and
geophysicists which is consistent with professional engineers
and land surveyors.
The Board of Guide Dogs for the Blind (Board) states that this
bill eliminates the requirement for the Board to meet to conduct
examinations and remove trademarked terminology ("seeing eye
dog") from the Guide Dog Act (Act). "In 2005, the Board
conducted an Occupational Analysis which created a legally
defensible examination involving subject matter experts, as
opposed to Board Members, for purposes of conducting instructor
examinations. Additionally, the Act utilizes the term "seeing
eye dog" which is a trademarked term for the Seeing Eye Dog
School in New Jersey. These changes update the Act to be more
current with examination standards and industry terminology."
The California Association of Clerks and Election Officials
states that by updating the reference in BPC Section 17914 from
"husband and wife" to "married couple" this bill creates
uniformity in the BPC.
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ASSEMBLY FLOOR : 75-1, 8/26/13
AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,
Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,
Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Weber, Wieckowski, Wilk, Williams,
Yamada, John A. Pérez
NOES: Allen
NO VOTE RECORDED: Patterson, Waldron, Vacancy, Vacancy
MW:nl:d 8/27/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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