BILL ANALYSIS                                                                                                                                                                                                    Ó







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        |Hearing Date:April 28, 2014        |Bill No:SB                         |
        |                                   |1244                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                          Bill No:        SB 1244Author:Lieu
                        As Amended:  April 24, 2014Fiscal:  Yes

        
        SUBJECT:  Structural Pest Control Board.
        
        SUMMARY:  Extends until January 1, 2019, the provisions establishing  
        the Structural Pest Control Board and the term of the executive  
        officer of the Board, and makes numerous technical, updating and  
        correcting changes to the structural pest control law.

        Existing law:
        
        1) Licenses and regulates structural pest control applicators, field  
           representatives and operators, and structural pest control  
           companies by the Structural Pest Control Board (SPCB) within the  
           Department of Consumer Affairs (DCA) and repeals the SPCB on  
           January 1, 2015.  (Business and Professions Code (BPC) § 8500 et  
           seq.)

        2) Authorizes the SPCB to appoint an executive officer, subject to the  
           approval of the director of DCA and repeals this provision on  
           January 1, 2015.  (BPC § 8528)

        3) Requires any person, including limited liability companies (LLCs),  
           to become licensed before performing structural pest control.  (BPC  
           § 8504)

        4) Regulates the use of insecticides, pesticides, rodenticides,  
           fumigants, and allied chemicals and substances.  (BPC § 8505)

        5) Defines methyl bromide, sulfur dioxide, propylene oxide, sulfuryl  
           fluoride and aluminum phosphide as lethal fumigants.  (BPC §  
           8505.1)





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        6) Requires that, at the request of the country agricultural  
           commissioner, fumigators provide a notice of intent to fumigate to  
           the commissioner.  (BPC § 8505.5)

        7) Allows, but places restrictions on, the fumigation of a single  
           apartment within a larger structure.  (BPC § 8505.6)

        8) Requires that fumigators place warning signs warning of fumigation,  
           and requires that the entire warning be printed in red on white  
           background.  (BPC § 8505.10)

        9) Requires that fumigators use an adequate warning agent when using  
           fumigants that lack warning properties.  (BPC § 8505.12)

        10)Defines "fumigator" as any individual licensed by the SPCB within  
           the branch of pest control that includes fumigation.  (BPC §§  
           8505.14, 8560)

        11)Prohibits any registered company from expressing an opinion or  
           statement relating to the control of household pests until an  
           inspection has been made.  (BPC § 8514)

        12)Allows an unlicensed individual to apply pesticides for training  
           purposes, under the direct supervision of a licensed field  
           representative or operator, for a maximum of 30 days. 
        (BPC § 8551.5)

        13)Requires written examinations and various written forms in several  
           places throughout the BPC.  (BPC §§ 8560, 8562, 8564, 8564.6, 8565,  
           8566, 8567, 8593.1, 8612, 8613)

        14)Allows certain types of licensees (Branch 2) to choose to be  
           certified in the handling, control, and removal of Africanized  
           honey bees, and requires that the Board either develop or approve a  
           program for the certification.  (BPC § 8565.6)

        15)Provides that all applicator licenses expire at 12 midnight three  
           years from the date of issue, while operator and field  
           representative licenses expire at 12 midnight on June 30 of every  
           third year.  (BPC §§ 8590, 8590.1)

        16)Allows the SPCB or county agricultural commissioner, to cite, fine,  
           and suspend the activity of licensees or registered companies for  
           violations of the structural pest control law or any regulations  
           adopted under that law or for specified provisions of the Food and  





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           Agricultural Code, or any regulations relating to pesticides  
           adopted under those laws.  (BPC § 8617)

        17)Requires that all complaints against licensees or registered  
           companies be filed with the SPCB within two years after the act or  
           omission, and four years in the case of fraud.  Also requires the  
           SPCB to file accusations within one year after the complaint has  
           been filed or two years in the case of fraud.  (BPC § 8621)

        18)Provides that, where the SPCB has determined that a property that a  
           registered company has worked on is not in compliance, the company  
           has thirty days from the receipt of notice to bring the property  
           into compliance.  (BPC § 8622)

        19)Provides that the SPCB can bring a disciplinary action against a  
           registered company that fails to maintain records for a minimum of  
           three years.  (BPC § 8652)

        This bill:

       1)Extends the operation of the SPCB and the authority to appoint an  
          executive officer until January 1, 2019.

       2)Removes limited liability companies (LLCs) from the definition of  
          "person."  

       3)Adds a definition for "pesticide," which includes any spray adjuvant  
          and any substance, or mixture of substances intended to be used for  
          preventing, destroying, repelling, or mitigating any pest or  
          organism.  

           a)   Replaces all references to substances with the term  
             "pesticide" throughout the Act.  

       4)Eliminates sulfur dioxide and propylene oxide from the list of lethal  
          fumigants.  

       5)Eliminates the provisions regarding the now impermissible practice of  
          fumigating a single apartment within a larger complex.  

       6)Allows the text of fumigation warning signs to be printed in legible  
          ink of any color, rather than just red on white.  

       7)Provides for an exception to the use of an adequate warning agent.   
          Specifically, allows for the state regulatory authority to waive the  
          use of chloropicrin when it may damage or contaminate the contents  





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          of a structure.  If waived, it must be documented in advance and  
          must include alternative safety precautions.  

       8)Adds the requirement of a "3-Day Right to Cancel" in home  
          solicitation contracts.  

       9)Extends the number of days an unlicensed individual, working for a  
          registered company, may apply pesticides for training purposes from  
          30 days to 90 days.   

       10)Eliminates the use of written, paper, and hardcopy document  
          references throughout the Act.  

       11)Eliminates the option for applicants to become certified in the  
          control of Africanized honey    bees and the requirement that the  
          SPCB either develop or certify a program for the certification.  

       12)Changes the expiration date of applicator's licenses from 12  
          midnight three years from the date of issue to 12 midnight on June  
          30 of every third year.  

       13)Requires that actions brought pursuant to BPC § 8617 be commenced by  
          the country agricultural commissioner within two years of the  
          occurrence.  Also requires that once the commissioner submits a  
          completed investigation to the SPCB, the action be commenced within  
          one year of the submission.  

       14)Allows the SPCB to grant extensions to companies required to bring  
          noncompliant properties into compliance.  

       15)Defines "original applicator's license" as a license issued to  
          someone that did not have a license during the prior licensing  
          period, and defines a renewal applicator's license as a license  
          issued to someone that did.  

       16)Allows individuals licensed as applicators to request an earlier  
          expiration date and have their fees prorated.  

        
        FISCAL EFFECT:  Unknown.  This bill has been keyed "fiscal" by  
        Legislative Counsel.

        

        COMMENTS:
        





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       1.Purpose.  This bill is one of six "sunset review bills" authored by  
          the Chair of this Committee.  Unless legislation is carried this  
          year to extend the sunset dates for the SPCB and its executive  
          officer they will be repealed on January 1, 2015.  This bill extends  
          those provisions to January 1, 2019, and makes a number of  
          legislative changes regarding the SPCB reflected in the  
          recommendations in the Committee's background paper.

       2.Oversight Hearings and Sunset Review of Licensing Boards and  
          Commission of DCA.  In 2014, the Senate Business and Professions  
          Committee and the Assembly Business, Professions and Consumer  
          Protection Committee (Committees) conducted joint oversight hearings  
          to review 9 regulatory entities:  Bureau of Automotive Repair;  
          Bureau of Home Furnishings and Thermal Insulation; Bureau for  
          Private Postsecondary Education (BPPE); California Massage Therapy  
          Certification program; California Board of Acupuncture; California  
          Tax Preparers Program; Dental Hygiene Committee of California;  
          Professional Fiduciaries Bureau; and Structural Pest Control Board.   
          This Committee also reviewed the performance and effectiveness of  
          the Community Interest Development Manager's Certification Program. 

          The Committees began their review of the aforementioned licensing  
          agencies in March and conducted two days of hearings and then more  
          recently held a hearing on the BPPE.  This bill, and the  
          accompanying sunset bills, are intended to implement legislative  
          changes as recommended by staff of the Committee's and which are  
          reflected in the  Background Papers  prepared by Committee staff for  
          each agency and program reviewed by the Committees for this year.

       3.Review of the Structural Pest Control Board (SPCB), Issues Identified  
          and Recommended Changes.  The following are some of the major issues  
          pertaining to the SPCB or areas of concern reviewed and discussed by  
          the Committee during the review of the SPCB, along with background  
          information concerning each particular issue.  Recommendations were  
          made by Committee staff regarding the particular issues or problem  
          areas which needed to be addressed. 

           a)     Issue  :  Technical clean-up.

            Background  :  During the review of the SPCB, the Board submitted  
             proposed legislation to clean up the existing laws governing the  
             practice of structural pest control.  The SPCB noted that  
             existing law should be updated to recognize current technology.   
             In addition, certain provisions in the structural pest control  
             law are no longer applicable and need to be deleted or clarified.  
              Other provisions require updating in order to meet the statute's  





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             purpose.  Still other provisions of the law contain similar or  
             duplicative language causing inconsistencies in the  
             interpretation or application of those provisions.

             The SPCB's proposal makes technical or non-substantive changes to  
             certain provisions of the structural pest control law, deletes  
             existing provisions from that law that are no longer applicable,  
             and would delete or amend other provisions to support the  
             legislative intent.

             The SPCB states that in 2011, the Board President established an  
             Act Review Committee which was charged with reviewing the  
             structural pest control law for revisions to modernize and  
             streamline processes while maintaining a focus on consumer  
             protection, as consumer protection is the highest priority of the  
             Board.  Since that time, the Act Review Committee held 18 public  
             meetings throughout California and solicited input from its  
             industry stakeholders and interested parties.  The SPCB indicates  
             it also solicited input and received participation from the  
             Fumigation Enforcement Committee of the Department of Pesticide  
             Regulations and the County Agricultural Commissioners.   
             Ultimately the Act Review Committee submitted approximately 38  
             statutory recommendations to the SPCB which are reflected in the  
             amendments to this bill.

              Recommendation  :  Committee staff recommended that the SPCB should  
             work with staff to identify what updating changes should be made  
             to the structural pest control law.  The SPCB should assure the  
             Committees that all concerned individuals and interested parties  
             have had an opportunity to express any concerns regarding the  
             proposed changes, and that the concerns have been addressed, to  
             the extent possible, by the SPCB.  In its response to the Issues  
             in the Committee's Background Paper, the SPCB submitted its  
             recommendations for technical cleanup, and updating of the laws  
             under its jurisdiction.  

             [  The current language in this measure described in This Bill,  
             Items 2-16, above, reflects these recommended changes  .]

            b)   Issue  :  Fee increases for the implementation of Computer Based  
             Testing.  

            Background  :  In its Sunset Review Report, the SPCB states the  
             intention to seek legislation to increase examination fees so  
             that it can begin to implement Computer Based Testing (CBT).






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             The SPCB does not anticipate a budget deficit in the current year  
             nor forecasts a budget deficit in fiscal years 2013-14 or  
             2014-15.  However, the SPCB has indicted that it will be seeking  
             legislation during the current Session to increase examination  
             fees to support CBT.  A proposal would increase the maximum fees  
             that could be charged for the examinations, however, the actual  
             fees for the examinations would be based on the actual costs to  
             administer the examinations.  According to the SPCB, the current  
             cost to administer each examination is $37.50 under the DCA  
             contract with the outside CBT vendor.  If legislation to increase  
             fees is approved, the SPCB would finalize a cost analysis and  
             subsequently promulgate regulations possibly through a  
             legislative BCP to support the SPCB's fully loaded costs to  
             administer the examination program.

             The SPCB states that prior to the full implementation of CBT, the  
             Board, in a joint effort with the DCA, is planning a pilot CBT  
             offering in the early part of 2014, as part of its public policy  
             analysis and review to substantiate operating expenses and  
             equipment and personnel years.  This will help the SPCB to  
             understand the necessary levels at which the fees should be set,  
             and further provide the justification for any BCPs related to the  
             full implementation of CBT.  The SPCB also indicates that it will  
             continue to assess its fund condition to ensure that it does not  
             operate in a deficiency during the CBT Pilot.

             The Pest Control Operators of California (PCOC) are sponsoring  
             the CBT legislation, 
             AB 1685 (Williams), introduced on February 14, 2014, which would  
             raise the maximum fees that the SPCB could charge for  
             examinations as follows:  

                         Operator examination fee:  increase from $25 to $100
                         Field representative examination fee:  increase from  
                  $15 to $75
                         Applicator examination fee:  increase from $15 to  
                  $60

             If approved, the increase in fees would be effective no later  
             than January 1, 2015.  At this point, the full impact of the  
             proposed fee increases on licensing applicants is unknown.  PCOC  
             states that the fees will not impact applicants or impair the  
             pest control industry in any manner.

              Recommendation  :  Committee staff recommended that the Committee  
             appropriately consider any legislative proposals and their impact  





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             upon applicants, the pest control industry, and SPCB revenues.  

             [  The current language in this measure does not reflect any  
             changes to structural pest control law regarding this issue,  
             however, AB 1685 (Williams),which was introduced this year amends  
             BPC § 8674 to increase the statutory limit on examination fees.  ]
             
            a)   Issue  :  Continued Regulation by the SPCB.
           
              Background  :  The health, safety and welfare of consumers are  
             protected by the presence of a strong licensing and regulatory  
             Board with oversight over the structural pest control industry.

             This SPCB has experienced significant transitions over the last  
             five years.  Specifically, moving from DCA to the Department of  
             Pesticide Regulation in 2009 and then moving back to DCA in 2013  
             has greatly disrupted many of the SPCB's licensing, regulatory  
             and disciplinary activities.  However, it appears that the SPCB  
             has successfully traversed the transitions and is making progress  
             as a regulatory agency.

             The SPCB should be continued with a 4-year extension of its  
             sunset date so that the Legislature may once again review whether  
             the issues and recommendations in this Background Paper have been  
             addressed.

              Recommendation  :  Committee staff recommended that the licensing  
             and regulation of structural pest control continue to be  
             regulated by the current Board members of the Structural Pest  
             Control Board in order to protect the interests of the public and  
             be reviewed once again in four years.

             [  The current language in this measure reflects this recommended  
             change  .]
        
        4. Current Related Legislation.   SB 1242  (Lieu, 2014) Amends the  
           Automotive Repair Act and updates the sunset provisions for the  
           Bureau of Automotive Repair.  (  Status  : This bill will also be heard  
           before the BP&ED Committee during today's hearing.)  

        SB 1243  (Lieu, 2014) Extends until January 1, 2017, the term of the  
           Veterinary Medical Board, which provides for the licensing and  
           registration of veterinarians and registered veterinary technicians  
           and the regulation of the practice of veterinary medicine by the  
           Veterinary Medical Board.  The bill also extends the terms of the  
           executive officer of the Veterinary Medical Board.  This bill also  





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           extends to January 1, 2019, the law regulating the practice of  
           common interest development managers, and the law establishing the  
           California Tax Education Council, which provides for the Council to  
           register and regulate tax preparers.  This bill also subjects the  
           Board and programs to be reviewed by the appropriate policy  
           committees of the Legislature.  (  Status  : This bill will also be  
           heard before the BP&ED Committee during today's hearing.)

         SB 1245  (Lieu, 2014) Extends until January 1, 2019, the term of the  
           Dental Hygiene Committee of California which provides for the  
           licensing and regulation of dental hygienists.  The bill also  
           extends the term of the Committee's executive officer and subjects  
           the Committee to be reviewed by the appropriate policy committees  
           of the Legislature.  (  Status  : This bill will also be heard before  
           the BP&ED Committee during today's hearing.)
         
        SB 1246  (Lieu, 2014) Extends until January 1, 2019 the term of the  
           Acupuncture Board which provides for the licensing and regulation  
           of doctors of acupuncture under the Acupuncture Licensure Act and  
           subjects the board to be reviewed by the appropriate policy  
           committees of the Legislature.  (  Status  : This bill will also be  
           heard before the BP&ED Committee during today's hearing.)
         
        SB 1247  (Lieu, 2014) Extends until January 1, 2019 the term of the  
           California Private Postsecondary Education Act of 2009, which  
           provides for the regulation of private postsecondary educational  
           institutions by the Bureau for Private Postsecondary Education in  
           the Department of Consumer Affairs.   The bill also extends the  
           term of the Student Tuition Recovery Fund under the administration  
           of the bureau, and subjects the bureau to review by the appropriate  
           policy committees of the Legislature.  (  Status  : This bill will also  
           be heard before the BP&ED Committee during today's hearing.)  
         

        SUPPORT AND OPPOSITION:
        
         Support:  

        Cardinal Professional Products
        Western Exterminator Company

         Opposition:  

        None received as of April 23, 2014.







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        Consultant:Vincent Chee