BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 1243 (Lieu) - Professions and vocations: sunset review.
Amended: April 21, 2014 Policy Vote: BP&ED 9-0
Urgency: No Mandate: No
Hearing Date: May 23, 2014 Consultant: Mark McKenzie
SUSPENSE FILE.
Bill Summary: SB 1243 would extend the sunset of the Veterinary
Medical Board (VMB) and the term of its executive officer until
January 1, 2017, and extend the sunset of the Certified Common
Interest Development Manager (CID manager) program and the Tax
Preparer program until January 1, 2019.
Fiscal Impact:
VMB: Projected costs of approximately $4.5 million annually
(VMB Contingency Fund), supporting 23.8 PY, until January 1,
2017, partially offset by fee revenues of approximately $3.5
million, based on the proposed 2014-15 budget. See staff
note below pertaining to discrepancies in budget documents.
No state costs associated with extending the CID manager
and Tax Preparer programs. The certification of CID
managers and registration of tax preparers is handled by a
specified professional association of CID managers and a
nonprofit regulating entity, respectively, that are outside
of state government and are not supported by state funds.
Background:
Veterinary Medical Board
Existing law provides for the licensing and regulation of
approximately 17,000 licensed veterinarians and registered
veterinary technicians by the VMB within the Department of
Consumer Affairs (DCA). Existing law establishes a sunset date
of January 1, 2016 for the VMB and requires a review of the VMB
by the appropriate policy committees of the Legislature prior to
that repeal date that is limited to those issues as identified
by the respective committees. The VMB is not required to submit
a sunset review document or evaluative questionnaire at that
time.
SB 1243 (Lieu)
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When the VBM was reviewed by the appropriate legislative
committees in 2013, concerns were raised about whether the board
was taking sufficient and timely actions to address specified
issues. To provide an opportunity for additional review in the
short term, the committees determined that a two-year extension
of the sunset date was appropriate. This bill would allow
additional time for the VBM to implement regulations and
responses for some of the important issues in the near future.
Tax Preparer program
Existing law establishes the California Tax Education Council
(CTEC) as a nonprofit corporation that represents tax preparers
in the state. Existing law also requires tax preparers to
register with CTEC, obtain a certificate of completion of
specified tax education curriculum, and maintain a surety bond
of $5,000 payable to the State of California. The Tax Preparers
program is repealed on January 1, 2015.
CID managers program
Existing law establishes the requirements for a voluntary CID
manager program that is administered by a professional
association of CID managers. The program specifies the
requirements for certification as a CID manager, including 30
hours of coursework and an examination on CID law and
management. The CID managers program is repealed on January 1,
2015.
Proposed Law: SB 1243 would the sunset of the Veterinary Medical
Board (VMB) and the term of its executive officer until January
1, 2017, and extend the sunset of the Certified Common Interest
Development Manager (CID manager) program and the Tax Preparer
Program until January 1, 2019.
Related Legislation: This bill is one of six measures introduced
this session to extend the sunset on licensing boards within the
Department of Consumer Affairs - including SB 1242 (Lieu), SB
1244 (Lieu), SB 1245 (Lieu), SB 1246 (Lieu), and SB 1247 (Lieu).
Staff Comments:
The certification of CID managers is performed by a professional
association of CID managers, and tax preparers register with
CTEC. Both of these programs are outside of state government,
SB 1243 (Lieu)
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and no state funds are associated with these voluntary
certification and registration programs.
The Department of Consumer Affairs indicates that the provisions
of the bill that extend the sunset on the VMB are minor and
absorbable and within existing resources. Staff notes that,
according to the 2014-15 proposed budget, the VMB Contingency
Fund, which supports the activities of the VMB, will have
expenditures that exceed revenues by over $1 million in the
budget year, leaving a reserve of $2.4 million at the end of
2014-15. However, this fund condition statement differs
significantly from analyses of the fund condition included in
two proposed Budget Change Proposals for VMB augmentations, each
of which indicate that the VMB Contingency Fund is in relative
balance with a 10-13 month reserve through the extended period
of VMB operations. Staff notes that the actual condition of the
fund is uncertain, considering these inconsistencies.