BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1243|
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THIRD READING
Bill No: SB 1243
Author: Lieu (D), et al.
Amended: 4/21/14
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV.COMM. : 9-0, 4/28/14
AYES: Lieu, Wyland, Berryhill, Block, Corbett, Galgiani,
Hernandez, Hill, Padilla
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Professions and vocations: Veterinary Medical
Board: certified common interest development
manager: tax preparers
SOURCE : Author
DIGEST : This bill extends, until January 1, 2017, the
provisions establishing the Veterinary Medical Board (VMB) and
the term of the executive officer of the VMB, and extends the
certified common interest development (CID) manager program and
the Tax Preparer program to January 1, 2019.
ANALYSIS :
Existing law:
VMB
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1. Provides for the licensing and regulation of approximately
9,800 veterinarians and 4,300 registered veterinary
technicians by the VMB.
2. Requires the VMB to remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or
extends that date, and that prior to repeal of the VMB,
requires review by the appropriate legislative policy
committees, but that limits review to those issues as
identified by the respective committees; and specifies that
the VMB shall not be required to submit a sunset review
document or evaluative questionnaire.
Certified CID Manager
1. Establishes a scheme for the regulation of CIDs, including
condominiums, planned unit developments, stock operatives,
and community apartments under the Davis-Sterling Common
Interest Development Act.
2. Defines a "common interest development manager" as an
individual, or as a partner or other business entity, who for
compensation or in expectation of compensation provides or
contracts to provide management or financial services to a
community association.
3. Establishes requirements for a voluntary CID manager
certification program to be administered by a professional
association for CID managers.
4. Requires that, in order to be "certified," a CID manager
complete a minimum of 30 hours of coursework, as specified,
and pass an examination relating to CID law and management.
5. Requires that a CID manager make specific disclosures to a
condominium association, or other association as specified,
including whether the CID manager is certified by a
professional association.
6. Provides that it is an unfair business practice for a CID
manager to hold themselves out as a "certified" CID manager
without meeting the requirements of the certification
program.
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7. Sunsets the certified CID manager program on January 1,
2015.
Tax Preparers
1. Provides for the registration of tax preparers by the
California Tax Education Council (CTEC), and sunsets those
provisions of law effective January 1, 2015.
2. Defines a "tax preparer" as a person who, for a fee or for
other consideration, assists with or prepares tax returns for
another person or who assumes final responsibility for
completed work on a return on which preliminary work has been
done by another person, or who holds himself/herself out as
offering those services.
3. Defines a "tax preparer" to also mean a corporation,
partnership, association, or other entity that has persons
associated with it who have as part of their responsibilities
the preparation of data and ultimate signatory authority of
tax returns or that holds itself out as offering those
services or having that authority.
4. Specifies that a "tax preparer" does not include an employee
who, as part of the regular clerical duties of employment,
prepares his/her employer's income, sales, or payroll tax
returns.
5. Establishes the CTEC as a single organization that is made
up of not more than one representative from each specified
entity operating as a nonprofit corporation that represents,
among others, tax preparers with a membership in California
of at least 200 for the last three years and not more than
one representative from each for-profit tax preparation
corporation that has at least 200 employees and has been
operating in California for the last three years.
6. Establishes various requirements for tax preparers including
obligations to register with the CTEC; obtain a "certificate
of completion" based on completing a tax education curriculum
as specified; maintain a surety bond of $5,000 payable to the
State of California. Requires the bond to be for the benefit
of any person(s) damaged by any fraud, dishonesty,
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misstatement, misrepresentation, deceit, or any unlawful acts
or omissions by the tax preparer.
7. Requires CTEC to issue a "certificate of completion" when a
tax preparer demonstrates completion of not less than 60
hours of specified educational requirements.
This bill:
1. Extends the sunset date of the VMB and its executive officer
to January 1, 2017.
2. Extends the sunset date of the certified CID manager program
to January 1, 2019.
3. Extends the sunset date of the Tax Preparer program to
January 1, 2019.
Background
This bill is one of six "sunset review bills" authored by the
Chair of the Senate Business, Professions and Economic
Development (BPED) Committee. Unless legislation is carried
this year to extend the sunset dates of the certified CID
manager program and Tax Preparer program, they will both be
repealed on
January 1, 2015. The repeal date for the VMB and its executive
officer has been extended for one year, to January 1, 2017, to
allow sufficient time for the VMB to address issues which have
been identified by this Committee.
In 2014, the Senate BPED Committee and the Assembly Business,
Professions and Consumer Protection Committee conducted joint
oversight hearings to review nine regulatory entities: Bureau
of Automotive Repair; Bureau of Home Furnishings and Thermal
Insulation; Bureau for Private Postsecondary Education;
California Massage Therapy Certification program; California
Board of Acupuncture; California Tax Preparer program; Dental
Hygiene Committee of California; Professional Fiduciaries
Bureau; and the Structural Pest Control Board. The Senate BPED
Committee also reviewed the performance and effectiveness of the
CID manager program.
The Committees began their review of the aforementioned
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licensing agencies in March and conducted two days of hearings.
This bill, and the accompanying sunset bills, are intended to
implement legislative changes as recommended in the Committee's
Background Papers prepared for each agency and program reviewed
by the Committees for this year.
NOTE: For a summary of the issues and recommendations relating
to the Tax Preparer program, refer to the Senate BPED
Committee analysis of
April 28, 2014.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
VMB: Projected costs of approximately $4.5 million annually
(VMB Contingency Fund), supporting 23.8 personnel years,
until January 1, 2017, partially offset by fee revenues of
approximately $3.5 million, based on the proposed 2014-15
Budget.
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.
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.
MW:k 5/23/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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