BILL ANALYSIS Ó
SB 1243
Page 1
Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1243 (Lieu) - As Amended: June 30, 2014
Policy Committee: Business and
Professions Vote: 13 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill is one of several sunset extension bills introduced
this session and enacts a wide variety of non-controversial
reforms to address issues raised during the 2014 sunset review
process. Specifically, this bill:
1)Allows agencies within the Department of Consumer Affairs
(DCA) that are required to provide meeting notices to provide
notice by regular mail, email, or both and to comply with the
requester's chosen form of notification.
2)Enhances unlicensed advertising enforcement.
3)Requires DCA, the Attorney General (AG), and the Office of
Administrative hearings (OAH) to submit or continue to submit
specified reports to the Legislature annually.
4)Extends the sunset of the Veterinary Medical Board (VMB) and
the term of its executive officer from January 1, 2016 to
January 1, 2017.
5)Extends the sunset of the Certified Common Interest
Development Manager (CID manager) program and the Tax Preparer
Program from January 1, 2015 to January 1, 2019.
FISCAL EFFECT
1)The California Department of Justice reports 2014-15 costs of
$1.3 million ($460,000 GF and $850,000 Legal Services
Revolving Fund) and ongoing costs of $1.7 million ($260,000 GF
and $1.5 million Legal Services Revolving Fund) for the AG to
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compile data and develop, design, and prepare the required
report. The AG is not currently required to report to DCA, the
Governor or any legislative committees, statistical data or
results of cases referred to the AG by constituent entities
comprising the department. The AG reports they would
experience significant workload impacts.
2)On-going costs to DCA in the range of $500,000 (GF) to develop
and implement the Board Mentor Program, to conduct the
required administrative expenses study, and to meet the
expanded requirements of the Department's annual report.
Additional unknown costs associated with the enforcement
training requirement.
3)Veterinary Medical Board: On-going special fund costs of
approximately $4.5 million annually (VMB Contingency Fund),
supporting 23.8 personnel years, to extend the sunset until
January 1, 2017, largely offset by fee revenues. Costs to DCA
of extending the sunset are minor and absorbable within
existing resources.
4)No state costs associated with extending the CID manager and
Tax Preparer programs. The certification of CID managers and
registration of tax preparers are handled by a professional
association of CID managers and a nonprofit regulating entity,
respectively which are outside of state government and are not
supported by state funds.
COMMENTS
1)Purpose . In March 2014, the Senate Business Professions and
Economic Development Committee and the Assembly Business,
Professions and Consumer Protection Committee conducted joint
oversight hearings to review nine regulatory entities. The
Senate Committee also reviewed the performance and
effectiveness of the CID manager program. This is one of six
sunset extension bills intended to implement the recommended
legislative changes as a result of review by the Committees.
2)Department of Consumer Affairs . The mission of DCA is to
"protect and serve the interests of California consumers." By
statute, consumer protection is the primary purpose for all of
the regulatory programs located within DCA, which consists of
26 boards, nine bureaus, two committees, one program, and one
commission. Collectively, these entities regulate more than
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100 types of businesses and 200 different industries and
professions. As regulators, these entities perform two basic
program functions: licensing and enforcement. Licensing
entails ensuring only those who meet minimum standards are
issued a license to practice, and enforcement entails
investigation of alleged violations.
During the March 2014, sunset review hearing, and in the
Senate BPED background paper on DCA, several issues were
raised relating to the administration and operations of DCA.
This bill addresses some of the issues raised during the
sunset review process including greater transparency for
consumers and the Legislature, specific enforcement reporting
requirements, and expanding the telephone disconnect program
for unlicensed advertising.
3)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. Existing law
repeals the VMB as of January 1, 2016 and requires a review of
the VMB by the Legislature prior to that repeal.
When the Legislature reviewed the VMB in 2013, concerns were
raised about whether the board was taking sufficient and
timely actions to address specified issues. The VMB was
granted a two-year sunset extension. This bill extends that
date by one year to allow the VBM to implement regulations and
responses to the issues raised in 2013.
4)Tax Preparer program . The California Tax Education Council
(CTEC) is a nonprofit corporation that represents tax
preparers in the state. Existing law 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
Preparer program sunsets on January 1, 2015.
5)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 sunsets on January 1, 2015.
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6)Related Legislation . This bill is one of six measures
introduced this session to extend sunsets on licensing boards
within the Department of Consumer Affairs - including SB 1242
(Lieu) pending on the Assembly floor, SB 1244 (Lieu) and SB
1245 (Lieu) both pending on this committee's Suspense File,
and SB 1246 (Lieu) and SB 1247 (Lieu) which are before this
committee today.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081