Amended in Senate April 7, 2014

Senate BillNo. 1159


Introduced by Senator Lara

February 20, 2014


An act to amend Sectionbegin delete 494end deletebegin insert 30end insert of the Business and Professions Code,begin insert and to amend Section 19528 of the Revenue and Taxation Code, end insertrelating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 1159, as amended, Lara. Professions and vocations: licensebegin delete suspension or restriction.end deletebegin insert applicants: federal tax identification number.end insert

Existing law provides for the licensure and regulation of various professions and vocations by boards within the Department of Consumer Affairs, among otherbegin delete entitiesend deletebegin insert licensing bodiesend insert. Existing lawbegin delete authorizes a board or an administrative law judge to, upon petition, issue an interim order suspending a licensee or imposing license restrictions if the petition demonstrates that the licensee has engaged in specified violations of law or has been convicted of a crime related to the licensed activity and permitting the licensee to continue to practice would endanger the publicend deletebegin insert requires those licensing bodies to require a licensee, at the time of issuance of the license, to provide its federal employer identification number, if the licensee is a partnership, or his or her social security number for all other licensees. Existing law requires those licensing bodies to report to the Franchise Tax Board any licensee who fails to provide the federal employer identification number or social security number, and subjects the licensee to a penalty for failing to provide the information after notification, as specifiedend insert.

This bill wouldbegin delete make technical, nonsubstantive changes to that provisionend deletebegin insert require those licensing bodies to require an applicant other than a partnership to provide either a federal tax identification number or social security number, if one has been issued to the applicant, and would require the licensing bodies to report to the Franchise Tax Board, and subject a licensee to a penalty, for failure to provide that information, as described aboveend insert.begin insert The bill would make other conforming changes.end insert

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 30 of the end insertbegin insertBusiness and Professions Codeend insert
2begin insert is amended to read:end insert

3

30.  

(a) Notwithstanding any other law, any board, as defined
4in Section 22, and the State Bar and the Bureau of Real Estate shall
5at the time of issuance ofbegin delete theend deletebegin insert an initial or renewalend insert license require
6that thebegin delete licenseeend deletebegin insert applicantend insert provide its federal employer
7identification number, if thebegin delete licenseeend deletebegin insert applicantend insert is a partnership, or
8begin delete his or herend deletebegin insert the applicant’s federal taxpayer identification number
9orend insert
social security numberbegin insert, if one has been issued,end insert for allbegin delete othersend delete
10begin insert other applicantsend insert.

11(b) Anybegin delete licenseeend deletebegin insert applicantend insert failing to provide the federal
12begin insert employerend insert identificationbegin delete numberend deletebegin insert number,end insert orbegin insert the federal taxpayer
13identification number orend insert
social security numberbegin insert, if one has been
14issued to the individual,end insert
shall be reported by the licensing board
15to the Franchise Taxbegin delete Board and, if failingend deletebegin insert Board. If the applicant
16failsend insert
to providebegin insert that informationend insert after notification pursuant to
17paragraph (1) of subdivision (b) of Section 19528 of the Revenue
18and Taxation Code,begin insert the applicantend insert shall be subject to the penalty
19provided in paragraph (2) of subdivision (b) of Section 19528 of
20the Revenue and Taxation Code.

21(c) In addition to the penalty specified in subdivision (b), a
22licensing boardbegin delete mayend deletebegin insert shallend insert not processbegin delete anyend deletebegin insert anend insert application for an
23begin delete originalend deletebegin insert initialend insert license unless the applicantbegin delete or licenseeend delete provides its
24federal employer identification numberbegin insert,end insert orbegin insert federal taxpayer
25identification number orend insert
social security numberbegin insert, if one has been
26issued to the individual,end insert
where requested on the application.

27(d) A licensing board shall, upon request of the Franchise Tax
28Board, furnish to the Franchise Tax Board the following
29information with respect to every licensee:

P3    1(1) Name.

2(2) Address or addresses of record.

3(3) Federal employer identification number if thebegin delete entityend deletebegin insert licenseeend insert
4 is a partnershipbegin insert,end insert orbegin insert the licensee’s federal taxpayer identification
5number orend insert
social security numberbegin insert, if one has been issued to the
6individual,end insert
for allbegin delete othersend deletebegin insert other licenseesend insert.

7(4) Type of license.

8(5) Effective date of license or a renewal.

9(6) Expiration date of license.

10(7) Whether license is active or inactive, if known.

11(8) Whether license is new or a renewal.

12(e) For the purposes of this section:

13(1) “Licensee” meansbegin delete anyend deletebegin insert a person orend insert entity, other than a
14corporation, authorized by a license, certificate, registration, or
15other means to engage in a business or profession regulated by
16this code or referred to in Section 1000 or 3600.

17(2) “License” includes a certificate, registration, or any other
18authorization needed to engage in a business or profession
19regulated by this code or referred to in Section 1000 or 3600.

20(3) “Licensing board” means any board, as defined in Section
2122, the State Bar, and the Bureau of Real Estate.

22(f) The reports required under this section shall be filed on
23magnetic media or in other machine-readable form, according to
24standards furnished by the Franchise Tax Board.

25(g) Licensing boards shall provide to the Franchise Tax Board
26the information required by this section at a time that the Franchise
27Tax Board may require.

28(h) Notwithstanding Chapter 3.5 (commencing with Section
296250) of Division 7 of Title 1 of the Government Codebegin delete, the social
30security number andend delete
begin insert aend insert federal employer identification numberbegin insert,
31federal taxpayer identification number, or social security numberend insert

32 furnished pursuant to this section shall not be deemed to be a public
33record and shall not be open to the public for inspection.

34(i) Any deputy, agent, clerk, officer, or employee of any
35licensing board described in subdivision (a), or any former officer
36or employee or other individual who in the course of his or her
37employment or duty has or has had access to the information
38required to be furnished under this section, may not disclose or
39make known in any manner that information, except as provided
P4    1in this section to the Franchise Tax Board or as provided in
2subdivision (k).

3(j) It is the intent of the Legislature in enacting this section to
4utilize thebegin delete social security account number orend delete federal employer
5identification numberbegin insert, federal taxpayer identification number, or
6social security numberend insert
for the purpose of establishing the
7identification of persons affected by state tax laws and for purposes
8of compliance with Section 17520 of the Family Code and, to that
9end, the information furnished pursuant to this section shall be
10used exclusively for those purposes.

11(k) If the board utilizes a national examination to issue a license,
12and if a reciprocity agreement or comity exists between the State
13of California and the state requesting release of thebegin insert federal taxpayer
14identification number orend insert
social security number, any deputy, agent,
15clerk, officer, or employee of any licensing board described in
16 subdivision (a) may release abegin insert federal taxpayer identification
17number orend insert
social security number to an examination or licensing
18entity, only for the purpose of verification of licensure or
19examination status.

20(l) For the purposes of enforcement of Section 17520 of the
21Family Code, and notwithstanding any otherbegin delete provision ofend delete law, any
22board, as defined in Section 22, and the State Bar and the Bureau
23of Real Estate shall at the time of issuance of the license require
24that each licensee provide thebegin insert federal taxpayer identification
25number orend insert
social security numberbegin insert, if any has been issued to the
26licensee,end insert
of each individual listed on the license and any person
27who qualifies the license. For the purposes of this subdivision,
28“licensee” means any entity that is issued a license by any board,
29as defined in Section 22, the State Bar, the Bureau of Real Estate,
30and the Department of Motor Vehicles.

31begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 19528 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
32amended to read:end insert

33

19528.  

(a) Notwithstanding any otherbegin delete provision ofend delete law, the
34Franchise Tax Board may require any board, as defined in Section
3522 of the Business and Professions Code, and the State Bar, the
36Bureau of Real Estate, and the Insurance Commissioner (hereinafter
37referred to as licensing board) to provide to the Franchise Tax
38Board the following information with respect to every licensee:

39(1) Name.

40(2) Address or addresses of record.

P5    1(3) Federal employer identification numberbegin delete (if the entity is a
2partnership) or social security number (for all others)end delete
begin insert, if the licensee
3is a partnership, or the licensee’s federal taxpayer identification
4number or social security number, if any has been issued, of all
5other licenseesend insert
.

6(4) Type of license.

7(5) Effective date of license or renewal.

8(6) Expiration date of license.

9(7) Whether license is active or inactive, if known.

10(8) Whether license is new or renewal.

11(b) The Franchise Tax Board may do the following:

12(1) Send a notice to any licensee failing to provide thebegin insert federal
13employerend insert
identification numberbegin insert, federal taxpayer identification
14number,end insert
or social security number as required by subdivision (a)
15of Section 30 of the Business and Professions Code and subdivision
16(a) of Section 1666.5 of the Insurance Code, describing the
17information that was missing, the penalty associated with not
18providing it, and that failure to provide the information within 30
19days will result in the assessment of the penalty.

20(2) After 30 days following the issuance of the notice described
21in paragraph (1), assess a one hundred dollar ($100) penalty, due
22and payable upon notice and demand, for any licensee failing to
23provide either its federal employer identification number (if the
24licensee is a partnership) or his or her social security number (for
25all others) as required in Section 30 of the Business and Professions
26Code and Section 1666.5 of the Insurance Code.

27(c) Notwithstanding Chapter 3.5 (commencing with Section
286250) of Division 7 of Title 1 of the Government Code, the
29information furnished to the Franchise Tax Board pursuant to
30Section 30 of the Business and Professions Code or Section 1666.5
31of the Insurance Code shall not be deemed to be a public record
32and shall not be open to the public for inspection.

begin delete
33

SECTION 1.  

Section 494 of the Business and Professions Code
34 is amended to read:

35

494.  

(a) A board or an administrative law judge sitting alone,
36as provided in subdivision (h), may, upon petition, issue an interim
37order suspending a licensee or imposing license restrictions,
38including, but not limited to, mandatory biological fluid testing,
39supervision, or remedial training. The petition shall include
P6    1affidavits that demonstrate, to the satisfaction of the board, both
2of the following:

3(1) The licensee has engaged in acts or omissions constituting
4a violation of this code or has been convicted of a crime
5substantially related to the licensed activity.

6(2) Permitting the licensee to continue to engage in the licensed
7activity, or permitting the licensee to continue in the licensed
8activity without restrictions, would endanger the public health,
9safety, or welfare.

10(b)  An interim order provided for in this section shall not be
11issued without notice to the licensee unless it appears from the
12petition and supporting documents that serious injury would result
13to the public before the matter could be heard on notice.

14(c) Except as provided in subdivision (b), the licensee shall be
15given at least 15 days’ notice of the hearing on the petition for an
16interim order. The notice shall include documents submitted to the
17board in support of the petition. If the order was initially issued
18without notice as provided in subdivision (b), the licensee shall be
19entitled to a hearing on the petition within 20 days of the issuance
20of the interim order without notice. The licensee shall be given
21notice of the hearing within two days after issuance of the initial
22interim order, and shall receive all documents in support of the
23petition. The failure of the board to provide a hearing within 20
24days following the issuance of the interim order without notice,
25unless the licensee waives his or her right to the hearing, shall
26result in the dissolution of the interim order by operation of law.

27(d) At the hearing on the petition for an interim order, the
28licensee may do all of the following:

29(1) Be represented by counsel.

30(2) Have a record made of the proceedings, copies of which
31shall be available to the licensee upon payment of costs computed
32in accordance with the provisions for transcript costs for judicial
33review contained in Section 11523 of the Government Code.

34(3) Present affidavits and other documentary evidence.

35(4) Present oral argument.

36(e) The board, or an administrative law judge sitting alone as
37provided in subdivision (h), shall issue a decision on the petition
38for interim order within five business days following submission
39of the matter. The standard of proof required to obtain an interim
40order pursuant to this section shall be a preponderance of the
P7    1evidence standard. If the interim order was previously issued
2without notice, the board shall determine whether the order shall
3remain in effect, be dissolved, or modified.

4(f) The board shall file an accusation within 15 days of the
5issuance of an interim order. In the case of an interim order issued
6without notice, the time shall run from the date of the order issued
7after the noticed hearing. If the licensee files a Notice of Defense,
8the hearing shall be held within 30 days of the agency’s receipt of
9the Notice of Defense. A decision shall be rendered on the
10accusation no later than 30 days after submission of the matter.
11Failure to comply with any of the requirements in this subdivision
12shall dissolve the interim order by operation of law.

13(g) Interim orders shall be subject to judicial review pursuant
14to Section 1094.5 of the Code of Civil Procedure and shall be heard
15only in the superior court in and for the Counties of Sacramento,
16San Francisco, Los Angeles, or San Diego. The review of an
17interim order shall be limited to a determination of whether the
18board abused its discretion in the issuance of the interim order.
19Abuse of discretion is established if the respondent board has not
20proceeded in the manner required by law, or if the court determines
21that the interim order is not supported by substantial evidence in
22light of the whole record.

23(h) The board may, in its sole discretion, delegate the hearing
24on a petition for an interim order to an administrative law judge
25in the Office of Administrative Hearings. If the board hears the
26noticed petition itself, an administrative law judge shall preside at
27the hearing, rule on the admission and exclusion of evidence, and
28advise the board on matters of law. The board shall exercise all
29other powers relating to the conduct of the hearing but may
30delegate any or all of them to the administrative law judge. When
31the petition has been delegated to an administrative law judge, he
32or she shall sit alone and exercise all of the powers of the board
33relating to the conduct of the hearing. A decision issued by an
34administrative law judge sitting alone shall be final when it is filed
35with the board. If the administrative law judge issues an interim
36order without notice, he or she shall preside at the noticed hearing,
37unless unavailable, in which case another administrative law judge
38may hear the matter. The decision of the administrative law judge
39sitting alone on the petition for an interim order is final, subject
40only to judicial review in accordance with subdivision (g).

P8    1(i) Failure to comply with an interim order issued pursuant to
2subdivision (a) or (b) shall constitute a separate cause for
3disciplinary action against a licensee, and may be heard at, and as
4a part of, the noticed hearing provided for in subdivision (f).
5Allegations of noncompliance with the interim order may be filed
6at any time prior to the rendering of a decision on the accusation.
7Violation of the interim order is established upon proof that the
8licensee was on notice of the interim order and its terms, and that
9the order was in effect at the time of the violation. The finding of
10a violation of an interim order made at the hearing on the
11accusation shall be reviewed as a part of any review of a final
12decision of the agency.

13If the interim order issued by the agency provides for anything
14less than a complete suspension of the licensee from his or her
15business or profession, and the licensee violates the interim order
16prior to the hearing on the accusation provided for in subdivision
17(f), the agency may, upon notice to the licensee and proof of
18violation, modify or expand the interim order.

19(j) A plea or verdict of guilty or a conviction after a plea of nolo
20contendere is deemed to be a conviction within the meaning of
21this section. A certified record of the conviction shall be conclusive
22evidence of the fact that the conviction occurred. A board may
23take action under this section notwithstanding the fact that an
24appeal of the conviction may be taken.

25(k) The interim orders provided for by this section shall be in
26addition to, and not a limitation on, the authority to seek injunctive
27relief provided in any other provision of law.

28(l) In the case of a board, a petition for an interim order may be
29filed by the executive officer. In the case of a bureau or program,
30a petition may be filed by the chief or program administrator, as
31the case may be.

32(m) “Board,” as used in this section, shall include any agency
33described in Section 22, and any allied health agency within the
34jurisdiction of the Medical Board of California. Board shall also
35include the Osteopathic Medical Board of California and the State
36Board of Chiropractic Examiners. The provisions of this section
37shall not apply to the Medical Board of California, the Board of
38Podiatric Medicine, or the State Athletic Commission.

end delete


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