Amended in Senate May 1, 2014

Senate BillNo. 1467


Introduced by Committee on Business, Professions and Economic Development (Senators Lieu (Chair), Berryhill, Block, Corbett, Galgiani, Hernandez, Hill, Padilla,begin delete Wyland, and Yeeend deletebegin insert and Wylandend insert)

March 25, 2014


An act to amend Sections 5070, 5070.5, 5093, 5096, 5096.4, 6759, 7011.4, 7842,begin delete 7860, and 8538end deletebegin insert and 7860end insert of the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 1467, as amended, Committee on Business, Professions and Economic Development. Professions and vocations.

(1) Under existing law, the California Board of Accountancy licenses and regulates accountants. Existing law prohibits a person from engaging in the practice of public accountancy in this state unless he or she holds either a valid permit issued by the board or a practice privilege, as specified. Existing law requires an applicant for registration to furnish satisfactory evidence that the applicant is entitled to registration.

This bill would authorize the board to collect, but not require, a valid electronic mail address at the time of application for, or renewal of, a certified public accountant license. The bill would provide that these electronic mail addresses shall not be considered public records and would prohibit these electronic mail addresses from being disclosed pursuant to specified provisions of law, unless required pursuant to a court order.

Existing law sets forth education, examination, and experience requirements for a certified public accountant license, and requires an applicant to show, to the satisfaction of the board, that he or she has one year of qualifying experience, including any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills. Existing law requires the experience to have been performed in accordance with applicable professional standards in order to qualify, and to be completed under the supervision or in the employ of a person licensed to engage in the practice of public accountancy, as specified.

This bill would authorize the board, by regulation, to allow experience in academia to satisfy the one-year requirement described above.

Existing law, until January 1, 2019, authorizes an individual whose principal place of business is not in this state and who has a valid and current license, certificate, or permit to practice public accountancy from another state to engage in the practice of public accountancy in this state under a practice privilege without obtaining a certificate or license, if certain conditions are met. Existing law subjects an individual who holds a practice privilege to certain requirements, including, among others, that the individual shall notify the board of any pending criminal charges, other than a minor traffic violation, in any jurisdiction.

This bill would instead subject an individual holding and exercising a practice privilege in this state to the requirements described above. The bill would also require the individual to report the criminal charges described above to the board in writing within 30 days of the date the individual has knowledge of those charges.

Existing law, until January 1, 2019, authorizes the board to administratively suspend an individual’s right to practice in this state under a practice privilege at any time by an order issued by the board or its executive officer, without prior notice or hearing, for the purpose of conducting a disciplinary investigation, proceeding, or inquiry concerning the representations made in the notice, the individual’s competence or qualifications to practice under practice privileges, failure to timely respond to a board inquiry or request for information or documents, or under other conditions and circumstances provided for by board regulation. Existing law, beginning January 1, 2019, additionally requires the board to consult the Public Company Accounting Oversight Board (PCAOB) and the United States Securities and Exchange Commission on an every six-month basis to identify out-of-state licensees who may have disqualifying conditions, or may be obliged to cease practice, and to disclose whether those out-of-state licensees are lawfully permitted to exercise the privilege. Existing law provides that disclosure of this information is not to be considered discipline.

This bill would instead require the board to consult with the PCAOB and the United States Securities and Exchange Commissionbegin delete as specified aboveend deletebegin insert at least once every 6 months, as specified,end insert until January 1, 2019, and would delete those provisions after that date.

This bill would make technical, nonsubstantive changes, and would delete an obsolete provision.

(2) The Professional Engineers Act provides for the regulation and licensure of professional engineers by the Board of Professional Engineers, Land Surveyors, and Geologists. Existing law requires an applicant for registration as a professional engineer, among other things, to furnish evidence of 6 years or more of qualifying experience in engineering work, as specified, and to successfully pass the second division of the licensure examination. Existing law authorizes the board to issue a certificate of registration as a professional engineer, without a written examination, to a person holding a certificate of registration issued by another state or country if the applicant’s qualifications meet the requirements of the act. For purposes of these provisions, the act requires equivalent second division examinations to be 8-hour written examinations prepared or administered by a state or territory, as specified.

This bill would delete the requirement that an equivalent second division examination be an 8-hour examination.

(3) Under the Contractors’ State License Law, the Contractors’ State License Board licenses and regulates contractors. Under existing law, there is within the board a separate enforcement division that is required to rigorously enforce the act. Existing law specifies that persons employed as enforcement representatives in this division, and designated by the Director of Consumer Affairs, are not peace officers and are not entitled to safety member retirement benefits.

This bill would make technical, nonsubstantive changes to thesebegin delete provision.end deletebegin insert provisions.end insert

(4) Under the Geologist and Geophysicist Act, the Board for Professional Engineers, Land Surveyors, and Geologists registers and regulates professional geologists and professional geophysicists and certifies applicants in specialties in geology. The act requires an applicant seeking certification as a petroleum geologist to meet certain requirements including, among other things, having performed a minimum of 3 years of professional geological work under the supervision of a registered petroleum engineer.

This bill would delete the provisions relating to petroleum geologists described above. The bill would also make technical, nonsubstantive changes to one of these provisions.

begin delete

(5) Existing law provides for the regulation of registered structural pest control companies by the Structural Pest Control Board. Existing law requires a registered structural pest control company to provide a specified written notice to the owner, or owner’s agent, and the tenant of the premises where pest control work is to be done. Existing law authorizes the notice to be given by first-class mail, posting in a conspicuous place on the real property, or personal mail.

end delete
begin delete

This bill would also authorize the notice to be given by electronic mail.

end delete
begin delete

(6)

end delete

begin insert(5)end insert Existing constitutional provisions require that a statute that limits the right of access to meetings of public bodies or the writings of public officials and agencies be adopted with findings and declarations demonstrating the interest protected by that limitation and the need for protecting that interest.

This bill would make a legislative finding and declaration relating to the necessity of treating as confidential electronic addresses provided to the California Board of Accountancy in order to protect the privacy of those individuals applying for a certified public accountant license.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P4    1

SECTION 1.  

The Legislature finds and declares that in order
2to protect the privacy of those individuals applying for a certified
3public accountant license, it is necessary that electronic addresses
4provided to the California Board of Accountancy pursuant to
5Sections 2 and 3 of this act be confidential.

6

SEC. 2.  

Section 5070 of the Business and Professions Code is
7amended to read:

8

5070.  

(a) Permits to engage in the practice of public
9accountancy in this state shall be issued by the board only to
10holders of the certificate of certified public accountant issued under
11this chapter and to those partnerships, corporations, and other
P5    1persons who, upon application approved by the board, are
2registered with the board under this chapter. Notwithstanding any
3other law, the board may register an entity organized and authorized
4to practice public accountancy under the laws of another state for
5the purpose of allowing that entity to satisfy the registration
6requirement set forth in Section 5096.12, if (1) the certified public
7accountants providing services in California qualify for the practice
8privilege, and (2) the entity satisfies all other requirements to
9register in this state, other than its form of legal organization.

10(b) All applicants for registration shall furnish satisfactory
11evidence that the applicant is entitled to registration and shall pay
12the fee as provided in Article 8 (commencing with Section 5130).
13Every partnership, corporation, and other person to whom a permit
14is issued shall, in addition to any other fee which may be payable,
15pay the initial permit fee provided in Article 8 (commencing with
16Section 5130).

17(c) The board may collect, but shall not require, a valid
18electronic address at the time of application for a certified public
19accountant license. In the interest of protecting an applicant’s
20privacy, the electronic address shall not be considered a public
21record and shall not be disclosed pursuant to Section 27 or pursuant
22to a request under the California Public Records Act (Chapter 3.5
23(commencing with Section 6250) of Division 7 of Title 1 of the
24Government Code), unless required pursuant to a court order by
25a court of competent jurisdiction.

26(d) Each partnership, corporation, and other person issued a
27permit by the board to practice as a certified public accountant or
28as a public accountant shall be furnished with a suitable certificate
29evidencing that registration.

30

SEC. 3.  

Section 5070.5 of the Business and Professions Code
31 is amended to read:

32

5070.5.  

(a) (1) A permit issued under this chapter to a certified
33public accountant or a public accountant expires at 12 midnight
34on the last day of the month of the legal birthday of the licensee
35during the second year of a two-year term if not renewed.

36(2) To renew an unexpired permit, a permitholder shall, before
37the time at which the permit would otherwise expire, apply for
38renewal on a form prescribed by the board, pay the renewal fee
39prescribed by this chapter, and give evidence satisfactory to the
P6    1board that he or she has complied with the continuing education
2provisions of this chapter.

3(3) The board may collect, but shall not require, a valid
4electronic mail address on the renewal form described in paragraph
5(1). In the interest of protecting an applicant’s privacy, the
6electronic mail address shall not be considered a public record and
7shall not be disclosed pursuant to Section 27 or pursuant to a
8request under the California Public Records Act (Chapter 3.5
9(commencing with Section 6250) of Division 7 of Title 1 of the
10Government Code), unless required pursuant to a court order by
11a court of competent jurisdiction.

12(b) A permit to practice as an accountancy partnership or an
13accountancy corporation expires at 12 midnight on the last day of
14the month in which the permit was initially issued during the
15second year of a two-year term if not renewed. To renew an
16unexpired permit, the permitholder shall, before the time at which
17the permit would otherwise expire, apply for renewal on a form
18prescribed by the board, pay the renewal fee prescribed by this
19chapter, and provide evidence satisfactory to the board that the
20accountancy partnership or accountancy corporation is in
21compliance with this chapter.

22

SEC. 4.  

Section 5093 of the Business and Professions Code is
23amended to read:

24

5093.  

(a) To qualify for the certified public accountant license,
25an applicant who is applying under this section shall meet the
26education, examination, and experience requirements specified in
27subdivisions (b), (c), and (d), or otherwise prescribed pursuant to
28this article. The board may adopt regulations as necessary to
29implement this section.

30(b) (1) An applicant for admission to the certified public
31accountant examination under this section shall present satisfactory
32evidence that the applicant has completed a baccalaureate or higher
33degree conferred by a degree-granting university, college, or other
34institution of learning accredited by a regional or national
35 accrediting agency included in a list of these agencies published
36by the United States Secretary of Education under the requirements
37of the Higher Education Act of 1965 as amended (20 U.S.C. Sec.
381001 et seq.), or meeting, at a minimum, the standards described
39in subdivision (c) of Section 5094. The total educational program
40shall include a minimum of 24 semester units in accounting
P7    1subjects and 24 semester units in business-related subjects. This
2evidence shall be provided at the time of application for admission
3to the examination, except that an applicant who applied, qualified,
4and sat for at least two subjects of the examination for the certified
5public accountant license before May 15, 2002, may provide this
6evidence at the time of application for licensure.

7(A) An applicant enrolled in a program at an institution as
8described in this paragraph that grants conferral of a baccalaureate
9degree upon completion of the 150 semester units required by
10paragraph (2) of this subdivision may satisfy the requirements of
11this paragraph if the applicant’s institution mails the applicant’s
12official transcript or its equivalent together or separately with a
13letter signed by the institution’s registrar, or its equivalent, directly
14to the board pursuant to subdivision (c) of Section 5094. The letter
15shall include all of the following:

16(i) A statement that the applicant is enrolled and in good
17standing in a program that will result in the conferral of a
18baccalaureate degree upon completion of either a master’s degree
19or the 150 semester units required by paragraph (2) of this
20subdivision.

21(ii) A statement that the applicant has completed all
22requirements, including general education and elective
23requirements, for a baccalaureate degree and the only reason the
24college or university has yet to confer the degree is because the
25applicant is enrolled in a program that confers a baccalaureate
26degree upon completion of either a master’s degree or the 150
27semester units required by paragraph (2) of this subdivision.

28(iii) The date on which the applicant met all of the college’s or
29university’s requirements for conferral of a baccalaureate degree.

30(B) The total educational program for an applicant described in
31subparagraph (A) shall include a minimum of 24 semester units
32in accounting subjects and 24 semester units in business-related
33subjects. This evidence shall be provided at the time of application
34for admission to the examination, except that an applicant who
35applied, qualified, and sat for at least two subjects of the
36examination for the certified public accountant license before May
3715, 2002, may provide this evidence at the time of application for
38licensure.

39(2) An applicant for issuance of the certified public accountant
40license under this section shall present satisfactory evidence that
P8    1the applicant has completed at least 150 semester units of college
2education, including a baccalaureate or higher degree conferred
3by a college or university, meeting, at a minimum, the standards
4described in Section 5094, the total educational program to include
5a minimum of 24 semester units in accounting subjects, 24 semester
6units in business-related subjects, and, after December 31, 2013,
7shall also include a minimum of 10 units of ethics study consistent
8with the requirements set forth in Section 5094.3 and 20 units of
9accounting study consistent with the regulations promulgated under
10subdivision (c) of Section 5094.6. This evidence shall be presented
11at the time of application for the certified public accountant license.
12Nothing in this paragraph shall be deemed inconsistent with Section
135094 or 5094.6. Nothing in this paragraph shall be construed to
14be inconsistent with prevailing academic practice regarding the
15completion of units.

16(c) An applicant for the certified public accountant license shall
17pass an examination prescribed by the board.

18(d) (1) The applicant shall show, to the satisfaction of the board,
19that the applicant has had one year of qualifying experience. This
20experience may include providing any type of service or advice
21involving the use of accounting, attest, compilation, management
22advisory, financial advisory, tax, or consulting skills.

23(2) To be qualifying under this section, experience shall have
24been performed in accordance with applicable professional
25standards. Experience in public accounting shall be completed
26under the supervision or in the employ of a person licensed or
27otherwise having comparable authority under the laws of any state
28or country to engage in the practice of public accountancy.
29Experience in private or governmental accounting or auditing shall
30be completed under the supervision of an individual licensed by
31a state to engage in the practice of public accountancy.

32(3) Notwithstanding paragraph (2), the board may, by regulation,
33 allow experience in academia to be qualifying under this section.

34(e) Applicants completing education at a college or university
35located outside of this state, meeting, at a minimum, the standards
36described in Section 5094, shall be deemed to meet the educational
37requirements of this section if the board determines that the
38education is substantially equivalent to the standards of education
39specified under this chapter.

P9    1(f) An applicant who has successfully passed the examination
2requirement specified under Section 5082 on or before December
331, 2013, may qualify for the certified public accountant license
4without satisfying the 10 semester units of study set forth in Section
55094.3 or 20 semester units of accounting study consistent with
6the regulations promulgated under Section 5094.6, if the applicant
7completes all other requirements for the issuance of a license on
8or before December 31, 2015.

9

SEC. 5.  

Section 5096 of the Business and Professions Code,
10as amended by Section 3 of Chapter 319 of the Statutes of 2013,
11is amended to read:

12

5096.  

(a) An individual whose principal place of business is
13not in this state and who has a valid and current license, certificate,
14or permit to practice public accountancy from another state may,
15subject to the conditions and limitations in this article, engage in
16the practice of public accountancy in this state under a practice
17privilege without obtaining a certificate or license under this
18chapter if the individual satisfies one of the following:

19(1) The individual has continually practiced public accountancy
20as a certified public accountant under a valid license issued by any
21state for at least 4 of the last 10 years.

22(2) The individual has a license, certificate, or permit from a
23state that has been determined by the board to have education,
24examination, and experience qualifications for licensure
25substantially equivalent to this state’s qualifications under Section
265093.

27(3) The individual possesses education, examination, and
28experience qualifications for licensure that have been determined
29by the board to be substantially equivalent to this state’s
30qualifications under Section 5093.

31(b) The board may designate states as substantially equivalent
32under paragraph (2) of subdivision (a) and may accept individual
33qualification evaluations or appraisals conducted by designated
34entities, as satisfying the requirements of paragraph (3) of
35subdivision (a).

36(c) An individual who qualifies for the practice privilege under
37this section may engage in the practice of public accountancy in
38this state, andbegin delete noend deletebegin insert aend insert notice, fee, or other requirement shallbegin insert notend insert be
39imposed on that individual by the board.

P10   1(d) An individual who qualifies for the practice privilege under
2this section may perform the following services only through a
3firm of certified public accountants that has obtained a registration
4from the board pursuant to Section 5096.12:

5(1) An audit or review of a financial statement for an entity
6headquartered in California.

7(2) A compilation of a financial statement when that person
8expects, or reasonably might expect, that a third party will use the
9financial statement and the compilation report does not disclose a
10lack of independence for an entity headquartered in California.

11(3) An examination of prospective financial information for an
12entity headquartered in California.

13(e) An individual who holds a practice privilege under this
14article, and is exercising the practice privilege in California:

15(1) Is subject to the personal and subject matter jurisdiction and
16disciplinary authority of the board and the courts of this state.

17(2) Shall comply with the provisions of this chapter, board
18regulations, and other laws, regulations, and professional standards
19applicable to the practice of public accountancy by the licensees
20of this state and to any other laws and regulations applicable to
21individuals practicing under practice privileges in this state, except
22the individual is deemed, solely for the purpose of this article, to
23have met the continuing education requirements and ethics
24examination requirements of this state when the individual has
25met the examination and continuing education requirements of the
26state in which the individual holds the valid license, certificate, or
27permit on which the substantial equivalency is based.

28(3) Shall not provide public accountancy services in this state
29from any office located in this state, except as an employee of a
30firm registered in this state. This paragraph does not apply to public
31accountancy services provided to a client at the client’s place of
32business or residence.

33(4) Is deemed to have appointed the regulatory agency of the
34state that issued the individual’s certificate, license, or permit upon
35which substantial equivalency is based as the individual’s agent
36on whom notices, subpoenas, or other process may be served in
37any action or proceeding by the board against the individual.

38(5) Shall cooperate with any board investigation or inquiry and
39shall timely respond to a board investigation, inquiry, request,
40notice, demand, or subpoena for information or documents and
P11   1timely provide to the board the identified information and
2documents.

3(6) Shall cease exercising the practice privilege in this state if
4the regulatory agency in the state in which the individual’s
5certificate, license, or permit was issued takes disciplinary action
6resulting in the suspension or revocation, including stayed
7suspension, stayed revocation, or probation of the individual’s
8certificate, license, or permit, or takes other disciplinary action
9against the individual’s certificate, license, or permit that arises
10from any of the following:

11(A) Gross negligence, recklessness, or intentional wrongdoing
12relating to the practice of public accountancy.

13(B) Fraud or misappropriation of funds.

14(C) Preparation, publication, or dissemination of false,
15fraudulent, or materially incomplete or misleading financial
16statements, reports, or information.

17(7) Shall cease exercising the practice privilege in this state if
18convicted in any jurisdiction of any crime involving dishonesty,
19including, but not limited to, embezzlement, theft, misappropriation
20of funds or property, or obtaining money, property, or other
21valuable consideration by fraudulent means or false pretenses.

22(8) Shall cease exercising the practice privilege if the United
23States Securities and Exchange Commission or the Public Company
24Accounting Oversight Board bars the individual from practicing
25before them.

26(9) Shall cease exercising the practice privilege if any
27governmental body or agency suspends the right of the individual
28to practice before the body or agency.

29(10) Shall report to the board in writing any pending criminal
30 charges, other than for a minor traffic violation, in any jurisdiction
31within 30 days of the date the individual has knowledge of those
32charges.

33(f) An individual who is required to cease practice pursuant to
34paragraphs (6) to (9), inclusive, of subdivision (e) shall notify the
35board within 15 calendar days, on a form prescribed by the board,
36and shall not practice public accountancy in this state pursuant to
37this section until he or she has received from the board written
38permission to do so.

39(g) An individual who fails to cease practice as required by
40subdivision (e) or who fails to provide the notice required by
P12   1subdivision (f) shall be subject to the personal and subject matter
2jurisdiction and disciplinary authority of the board as if the practice
3privilege were a license and the individual were a licensee. An
4individual in violation of subdivision (e) or (f) shall, for a minimum
5of one year from the date the board learns there has been a violation
6of subdivision (e) or (f), not practice in this state and shall not have
7the possibility of reinstatement during that period. If the board
8determines that the failure to cease practice or provide the notice
9was intentional, that individual’s practice privilege shall be revoked
10and there shall be no possibility of reinstatement for a minimum
11of two years.

12(h) The board shall require an individual who provides notice
13to the board pursuant to subdivision (f) to cease the practice of
14public accountancy in this state until the board provides the
15individual with written permission to resume the practice of public
16accountancy in this state.

17(i) (1) An individual to whom, within the last seven years
18immediately preceding the date on which he or she wishes to
19practice in this state, any of the following criteria apply, shall notify
20the board, on a form prescribed by the board, and shall not practice
21public accountancy in this state pursuant to this section until the
22board provides the individual with written permission to do so:

23(A) He or she has been the subject of any final disciplinary
24action by the licensing or disciplinary authority of any other
25jurisdiction with respect to any professional license or has any
26charges of professional misconduct pending against him or her in
27any other jurisdiction.

28(B) He or she has had his or her license in another jurisdiction
29reinstated after a suspension or revocation of the license.

30(C) He or she has been denied issuance or renewal of a
31professional license or certificate in any other jurisdiction for any
32reason other than an inadvertent administrative error.

33(D) He or she has been convicted of a crime or is subject to
34pending criminal charges in any jurisdiction other than a minor
35traffic violation.

36(E) He or she has otherwise acquired a disqualifying condition
37as described in subdivision (a) of Section 5096.2.

38(2) An individual who fails to cease practice as required by
39subdivision (e) or who fails to provide the notice required by
40paragraph (1) shall be subject to the personal and subject matter
P13   1jurisdiction and disciplinary authority of the board as if the practice
2privilege were a license and the individual were a licensee. An
3individual in violation of subdivision (e) or paragraph (1) shall,
4for a minimum of one year from the date the board knows there
5has been a violation of subdivision (e) or paragraph (1), not practice
6in this state and shall not have the possibility of reinstatement
7during that period. If the board determines that the failure to cease
8practice or provide the notice was intentional, that individual shall
9be prohibited from practicing in this state in the same manner as
10if a licensee has his or her practice privilege revoked and there
11shall be no possibility of reinstatement for a minimum of two years.

12(j) This section shall remain in effect only until January 1, 2019,
13and as of that date is repealed, unless a later enacted statute, that
14is enacted before January 1, 2019, deletes or extends that date.

15

SEC. 6.  

Section 5096.4 of the Business and Professions Code,
16as added by Section 20 of Chapter 411 of the Statutes of 2012, is
17amended to read:

18

5096.4.  

(a) The right of an individual to practice in this state
19under a practice privilege may be administratively suspended at
20any time by an order issued by the board or its executive officer,
21without prior notice or hearing, for the purpose of conducting a
22disciplinary investigation, proceeding, or inquiry concerning the
23individual’s competence or qualifications to practice under practice
24privileges, failure to timely respond to a board inquiry or request
25for information or documents, or under other conditions and
26circumstances provided for by board regulation. The board shall
27consult the Public Company Accounting Oversight Board and the
28United States Securities and Exchange Commissionbegin delete not less thanend delete
29begin insert at least onceend insert every six months to identify out-of-state licensees
30who may have disqualifying conditions or who may be obliged to
31cease practice, and shall disclose, pursuant to this subdivision,
32whether those out-of-state licensees are lawfully permitted to
33exercise the privilege. Disclosure of this information shall not be
34considered discipline.

35(b) The administrative suspension order is immediately effective
36when mailed to the individual’s address of record or agent for
37notice and service as provided for in this article.

38(c) The administrative suspension order shall contain the
39following:

40(1) The reason for the suspension.

P14   1(2) A statement that the individual has the right, within 30 days,
2to appeal the administrative suspension order and request a hearing.

3(3) A statement that any appeal hearing will be conducted under
4the provisions of the Administrative Procedure Act (Chapter 3.5
5(commencing with Section 11340) of Part 1 of Division 3 of Title
62 of the Government Code) applicable to individuals who are
7denied licensure, including the filing of a statement of issues by
8the board setting forth the reasons for the administrative suspension
9of practice privileges and specifying the statutes and rules with
10which the individual must show compliance by producing proof
11at the hearing and in addition any particular matters that have come
12to the attention of the board and that would authorize the
13administrative suspension, or the revocation of practice privileges.

14(d) The burden is on the holder of the suspended practice
15privilege to establish both qualification and fitness to practice
16under practice privileges.

17(e) The administrative suspension shall continue in effect until
18terminated by an order of the board or the executive officer.

19(f) Administrative suspension is not discipline and shall not
20preclude any individual from applying for a license to practice
21public accountancy in this state.

22(g) Proceedings to appeal an administrative suspension order
23may be combined or coordinated with proceedings for revocation
24or discipline of a practice privilege.

25(h) This section shall become operative on July 1, 2013.

26(i) This section shall remain in effect only until January 1, 2019,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2019, deletes or extends that date.

29

SEC. 7.  

Section 5096.4 of the Business and Professions Code,
30as added by Section 21 of Chapter 411 of the Statutes of 2012, is
31amended to read:

32

5096.4.  

(a) The right of an individual to practice in this state
33under a practice privilege may be administratively suspended at
34any time by an order issued by the board or its executive officer,
35without prior notice or hearing, for the purpose of conducting a
36disciplinary investigation, proceeding, or inquiry concerning the
37representations made in the notice, the individual’s competence
38or qualifications to practice under practice privileges, failure to
39timely respond to a board inquiry or request for information or
P15   1documents, or under other conditions and circumstances provided
2for by board regulation.

3(b) The administrative suspension order is immediately effective
4when mailed to the individual’s address of record or agent for
5notice and service as provided for in this article.

6(c) The administrative suspension order shall contain the
7following:

8(1) The reason for the suspension.

9(2) A statement that the individual has the right, within 30 days,
10to appeal the administrative suspension order and request a hearing.

11(3) A statement that any appeal hearing will be conducted under
12the Administrative Procedure Act (Chapter 3.5 (commencing with
13Section 11340) of Part 1 of Division 3 of Title 2 of the Government
14Code) applicable to individuals who are denied licensure, including
15the filing of a statement of issues by the board setting forth the
16 reasons for the administrative suspension of practice privileges
17and specifying the statutes and rules with which the individual
18must show compliance by producing proof at the hearing and in
19addition any particular matters that have come to the attention of
20the board and that would authorize the administrative suspension,
21or the denial of practice privileges.

22(d) The burden is on the holder of the suspended practice
23privilege to establish both qualification and fitness to practice
24under practice privileges.

25(e) The administrative suspension shall continue in effect until
26terminated by an order of the board or the executive officer or
27expiration of the practice privilege under administrative suspension.

28(f) Administrative suspension is not discipline and shall not
29preclude any individual from applying for a license to practice
30public accountancy in this state or from applying for a new practice
31privilege upon expiration of the one under administrative
32suspension, except that the new practice privilege shall not be
33effective until approved by the board.

34(g) Notwithstanding any administrative suspension, a practice
35privilege expires one year from the date of notice unless a shorter
36period is set by board regulation.

37(h) Proceedings to appeal an administrative suspension order
38may be combined or coordinated with proceedings for denial or
39discipline of a practice privilege.

40(i) This section shall become operative on January 1, 2019.

P16   1

SEC. 8.  

Section 6759 of the Business and Professions Code is
2amended to read:

3

6759.  

The board, upon application therefor, on its prescribed
4form, and the payment of the fee fixed by this chapter, may issue
5a certificate of registration as a professional engineer, without
6written examination, to any person holding a certificate of
7registration issued to him or her by any state or country when the
8applicant’s qualifications meet the requirements of this chapter
9and rules established by the board. The board shall not require a
10comity applicant to meet any requirement not required of California
11applicants. For purposes of this section, equivalent second division
12examinations shall be written examinations prepared by or
13administered by a state or territory either by single or combined
14branch at the level generally administered by the board to persons
15who passed or were exempted from the first division examination.
16Applicants who have passed an equivalent second division
17combined branch or a single branch examination in a branch not
18recognized for registration in California shall be registered in the
19branch in which their experience and education indicate the closest
20relationship.

21

SEC. 9.  

Section 7011.4 of the Business and Professions Code
22 is amended to read:

23

7011.4.  

(a) Notwithstanding Section 7011, there is in the
24Contractors’ State License Board, a separate enforcement division
25begin delete whichend deletebegin insert thatend insert shall rigorously enforce this chapter prohibiting all
26forms of unlicensed activity.

27(b) Persons employed as enforcement representatives of the
28Contractors’ State License Board and designated by the Director
29of Consumer Affairs shall have the authority to issue a written
30notice to appear in court pursuant to Chapter 5c (commencing with
31Section 853.5) of Title 3 of Part 2 of the Penal Code. An employee
32so designated is not a peace officer and is not entitled to safety
33member retirement benefits as a result of that designation. He or
34she does not have the power of arrest.

35

SEC. 10.  

Section 7842 of the Business and Professions Code
36 is amended to read:

37

7842.  

An applicant for certification in a specialty in geology
38shall meet all of the requirements of Section 7841 and, in addition,
39his or her seven years of professional geological work shall include
40one of the following:

P17   1(a) A minimum of three years performed under the supervision
2of a geologist certified in the specialty for which the applicant is
3seeking certification or under the supervision of a registered civil
4engineer if the applicant is seeking certification as an engineering
5geologist, except that prior to July 1, 1970, professional geological
6work shall qualify under this subdivision if it is performed under
7the supervision of a geologist qualified in the specialty for which
8the applicant is seeking certification or under the supervision of a
9registered civil engineer if the applicant is seeking certification as
10an engineering geologist.

11(b) A minimum of five years’ experience in responsible charge
12of professional geological work in the specialty for which the
13 applicant is seeking certification.

14

SEC. 11.  

Section 7860 of the Business and Professions Code
15 is amended to read:

16

7860.  

(a) The board may, upon its own initiative or upon the
17receipt of a complaint, investigate the actions of any professional
18geologist or geophysicist, and make findings thereon.

19(b) By a majority vote, the board may publicly reprove, suspend
20for a period not to exceed two years, or revoke the certificate of
21any geologist or geophysicist registered hereunder, on any of the
22following grounds:

23(1) Conviction of a crime substantially related to the
24qualifications, functions, or duties of a geologist or geophysicist.

25(2) Misrepresentation, fraud, or deceit by a geologist or
26 geophysicist in his or her practice.

27(3) Negligence or incompetence by a geologist or geophysicist
28in his or her practice.

29(4) Violation of any contract undertaken in the capacity of a
30geologist or geophysicist.

31(5) Fraud or deceit in obtaining a certificate to practice as a
32geologist or geophysicist.

33(c) By a majority vote, the board may publicly reprove, suspend
34for a period not to exceed two years, or may revoke the certificate
35of any geologist or geophysicist registered under this chapter, for
36unprofessional conduct. Unprofessional conduct includes, but is
37not limited to, any of the following:

38(1) Aiding or abetting any person in a violation of this chapter
39or any regulation adopted by the board pursuant to this chapter.

P18   1(2) Violating this chapter or any regulation adopted by the board
2pursuant to this chapter.

3(3) Conduct in the course of practice as a geologist or
4geophysicist that violates professional standards adopted by the
5board.

begin delete
6

SEC. 12.  

Section 8538 of the Business and Professions Code
7 is amended to read:

8

8538.  

(a) A registered structural pest control company shall
9provide the owner, or owner’s agent, and the tenant, if any, of the
10premises for which the work is to be done with clear written notice
11that contains the following statements and information using words
12with common and everyday meaning:

13(1) The pest to be controlled.

14(2) The pesticide or pesticides proposed to be used, and the
15active ingredient or ingredients.

16(3) “State law requires that you be given the following
17information: CAUTION--PESTICIDES ARE TOXIC
18CHEMICALS. Structural Pest Control Companies are registered
19and regulated by the Structural Pest Control Board, and apply
20pesticides that are registered and approved for use by the California
21Department of Pesticide Regulation and the United States
22Environmental Protection Agency. Registration is granted when
23the state finds that, based on existing scientific evidence, there are
24no appreciable risks if proper use conditions are followed or that
25the risks are outweighed by the benefits. The degree of risk depends
26upon the degree of exposure, so exposure should be minimized.”

27“If within 24 hours following application you experience
28symptoms similar to common seasonal illness comparable to the
29flu, contact your physician or poison control center (telephone
30number) and your pest control company immediately.” (This
31statement shall be modified to include any other symptoms of
32overexposure that are not typical of influenza.)

33“For further information, contact any of the following: Your
34Pest Control Company (telephone number); for Health
35Questions--the County Health Department (telephone number);
36for Application Information--the County Agricultural
37Commissioner (telephone number) and for Regulatory
38Information--the Structural Pest Control Board (telephone number
39and address).”

P19   1(4) If a contract for periodic pest control has been executed, the
2frequency with which the treatment is to be done.

3(b) In the case of Branch 1 applications, the notice prescribed
4by subdivision (a) shall be provided at least 48 hours prior to
5application unless fumigation follows inspection by less than 48
6hours.

7In the case of Branch 2 or Branch 3 registered company
8applications, the notice prescribed by subdivision (a) shall be
9provided no later than prior to application.

10In either case, the notice shall be given to the owner, or owner’s
11agent, and the tenant, if there is a tenant, in at least one of the
12following ways:

13(1) First-class or electronic mail.

14(2) Posting in a conspicuous place on the real property.

15(3) Personal delivery.

16If the building is commercial or industrial, a notice shall be
17posted in a conspicuous place, unless the owner or owner’s agent
18objects, in addition to any other notification required by this
19section.

20The notice shall only be required to be provided at the time of
21the initial treatment if a contract for periodic pest control has been
22executed. If the pesticide to be used is changed, another notice
23shall be provided in the manner described in this section.

24(c) Any person or licensee who, or registered company that,
25violates any provision of this section is guilty of a misdemeanor
26and is punishable as set forth in Section 8553.

end delete


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