BILL ANALYSIS                                                                                                                                                                                                    Ó


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          Bill No:  SB 1243
          Author:   Lieu (D), et al.
          Amended:  8/18/14
          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

           SENATE FLOOR  :  36-0, 5/27/14
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Evans, Fuller, Gaines, Galgiani,  
            Hancock, Hernandez, Hill, Hueso, Huff, Jackson, Knight, Lara,  
            Leno, Lieu, Mitchell, Monning, Morrell, Nielsen, Padilla,  
            Pavley, Roth, Steinberg, Torres, Vidak, Walters, Wolk, Wyland
          NO VOTE RECORDED:  Calderon, Liu, Wright, Yee

           ASSEMBLY FLOOR  :  77-1, 8/25/14 - See last page for vote

            SUBJECT  :    Professions and vocations

           SOURCE  :     Author

           DIGEST  :    This bill increases the transparency of information  
          distributed by the Department of Consumer Affairs (DCA);  
          requires the Office of Administrative Hearings (OAH) to submit  
          specified reports to the Legislature annually; enhances  


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          unlicensed advertising enforcement; extends, until January 1,  
          2017, the provisions establishing the Veterinary Medical Board  
          (VMB) and the term of the executive officer (EO); sets the  
          operative date of the veterinary assistant controlled substance  
          program for July 1, 2015; and extends the Certified Common  
          Interest Development (CID) Manager program and the Tax Preparer  
          program until January 1, 2019.

           Assembly Amendments  add provisions relating to the OAH, public  
          meeting notices, DCA reporting and enforcement requirements, and  
          VMB controlled substance permits; and make technical,  
          nonsubstantive, and conforming changes.

           ANALYSIS  :    

          Existing law:

           1. Specifies that DCA is comprised of various boards, bureaus,  
             commissions, committees, and similarly constituted agencies  
             that license and regulate the practice of various professions  
             and vocations; and requires those agencies to hold public  
             meetings and provide public notice of a meeting.

           2. Authorizes certain agencies within DCA to issue a citation,  
             including an order of correction, to a person who is  
             advertising in a telephone directory with respect to the  
             offering or performance of services, without being properly  
             licensed by or registered with the agency; and authorizes  
             those agencies to notify the Public Utilities Commission  
             (PUC) if a person does not comply with a final order of  
             correction, and requires the PUC to require the telephone  
             corporation providing the telephone services to disconnect  
             the service.

           3. Imposes specified duties on DCA and allows DCA to levy a  
             charge for the estimated administrative expenses in advance  
             on a pro rata share basis against funds of an agency  
             comprising DCA.

           4. Requires an agency to investigate a consumer accusation or  
             compliant against a licensee and, where appropriate, the  
             agency is authorized to impose disciplinary action against a  
             licensee; and permits an agency to refer a compliant to the  
             Attorney General (AG) or OAH for further action. 



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           5. Requires the Director of DCA to submit an annual report to  
             the Governor and the Legislature, on or before January 1,  
             that includes information regarding consumer complaints and  
             the action taken on those complaints.

           6. Regulates the practice of veterinary medicine; and provides,  
             until January 1, 2016, for the VMB; and authorizes VMB, until  
             January 1, 2016, to appoint a person exempt from civil  
             service to be designated as an EO of VMB, as specified.

           7. Requires, beginning January 1, 2015, a veterinary assistant  
             to obtain a controlled substance permit from VMB in order to  
             administer a controlled substance, and requires VMB to revoke  
             a veterinary controlled substance permit upon notification  
             that the veterinary assistant has been convicted of a state  
             or federal felony controlled substance violation.

           8. Regulates the practice of CID managers, and makes those  
             provisions effective only until January 1, 2015.

           9. Establishes the California Tax Education Council (CTEC), a  
             nonprofit organization, and requires CTEC to register and  
             regulate tax preparers, until January 1, 2015.

          This bill:

           1. Permits an agency under DCA that is required to provide  
             specified meeting notifications to provide notice by regular  
             mail, email, or both and specifies that the agency give the  
             requester the option; and requires DCA to comply with the  
             requester's chosen form or forms of notification, as  

           2. Requires an agency that plans to Web cast a meeting to  
             include in the meeting notice, as specified, a statement of  
             the board's intent to Web cast the meeting, and permits the  
             Web casting of a meeting in the absence of the statement of  

           3. Expands the current authority to request telephone  
             disconnection, for advertising of unlicensed activity in any  
             form of advertisement, not just in a telephone directory, as  
             currently permitted and provides this authority to all  



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             boards, bureaus, committees, commissions or programs under  

           4. Requires DCA to continue to develop and make available  
             training courses for employees who perform enforcement  
             functions to attend enforcement training, as specified. 

           5. Requires DCA to develop the enforcement academy curricula in  
             consultation and cooperation with the AG and the OAH, as  

           6. Requires DCA to submit a report of the accounting of the pro  
             rata calculation of administrative expenses to the  
             appropriate policy committees of the Legislature on or before  
             July 1, 2015, and on or before July 1, of each subsequent  

           7. Requires DCA to conduct a one-time study of its current  
             system for prorating administrative expenses, which must  
             include consideration of whether some of the administrative  
             services offered by DCA should be outsourced or charged on an  
             as needed basis, and whether the agencies should be permitted  
             to elect not to receive and be charged for certain  
             administrative services, and requires the finding to be  
             included in the report referenced in #6 above. 

           8. Requires DCA to promptly submit a report from the  
             third-party consultant, if it chooses to hire a third-party  
             consultant, to assess its operations, as specified. 

           9. Clarifies that the required information contained in DCA's  
             annual report to the Governor and the Legislature include,  
             from the previous fiscal year, the average length of time for  
             a constituent entity to reach each of the following  
             milestones in the enforcement process: 

              A.    Average number of days from when a constituent entity  
                receives a complaint until the constituent entity assigns  
                an investigator to the complaint; 

              B.    Average number of days from a constituent entity  
                opening an investigation conducted by the constituent  
                entity staff or the Division of Investigation to closing  
                the investigation regardless of outcome; and 



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              C.    Average number of days from a constituent entity  
                closing an investigation to imposing formal discipline. 

           1. Requires the report described in #9 above, to be submitted  
             in compliance with the Government Code, as specified. 

           2. Requires OAH to submit a report to DCA, the Governor, and  
             the Legislature on or before January 1, 2016, and on or  
             before January 1, of each subsequent year that includes, at a  
             minimum, all of the following for the previous fiscal year: 

              A.    Number of cases referred by each constituent entity to  
                each office of the OAH for a hearing; 

              B.    Average number of days from receiving a request to  
                setting a hearing date at each office of the OAH; 

              C.    Average number of days from setting a hearing to  
                conducting a hearing; and 

              D.    Average number of days after conducting a hearing to  
                transmitting the proposed decision by each office of the  

           1. Makes legislative findings and declarations stating that DCA  
             is currently providing opportunities for employees of  
             agencies comprising DCA who perform enforcement functions to  
             attend an entry level enforcement academy; and it is in the  
             best interest of consumers in the state for DCA to continue  
             to provide ongoing training opportunities for employees  
             performing enforcement functions for each agency comprising  

           2. Extends the sunset date of the VMB until January 1, 2017. 

           3. Specifies that the VMB veterinary assistant controlled  
             substance permit program shall become operative on July 1,  
             2015, instead of the later of 
           January 1, 2015, as specified. 

           4. Makes other technical and clarifying changes to the  
             veterinary assistant controlled substance permit program. 



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           5. Extends the authority of the VMB to appoint an executive  
             office until
           January 1, 2017. 

           6. Extends the sunset date for the CID manager program until  
             January 1, 2019. 

           7. Extends the sunset date for CTEC until January 1, 2019. 

           8. Makes findings and declarations pertaining to the training  
             of employees performing enforcement functions. 

           9. Makes other technical and clarifying changes.
          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 EO 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  
          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  



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          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 Assembly Appropriations Committee: 

           1. On-going costs to DCA in the range of $300,000 (General  
             Fund) to conduct the required administrative expenses study,  
             and to meet the expanded requirements of DCA's annual report.  
              Additional unknown costs associated with the enforcement  
             training requirement.

           2. VMB:  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  

           3. No state costs associated with extending the CID manager and  
             Tax Preparer programs.  

          SUPPORT  :   (Verified  8/26/14)

          California Association of Community Managers
          Medical Board of California

           ASSEMBLY FLOOR  :  77-1, 8/25/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, 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, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.  



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            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  
            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NOES:  Fox
          NO VOTE RECORDED:  Donnelly, Vacancy

          MW:k  8/26/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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