BILL ANALYSIS Ó SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Jerry Hill, Chair 2015 - 2016 Regular Bill No: AB 177 Hearing Date: July 6, 2015 ----------------------------------------------------------------- |Author: |Bonilla | |----------+------------------------------------------------------| |Version: |June 30, 2015 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Mark Mendoza | |: | | ----------------------------------------------------------------- Subject: Professions and vocations: licensing boards: authority: extension. SUMMARY: Extends the sunset date for the Board for Professional Engineers, Land Surveyors, and Geologists, the California Architects Board, and the Landscape Architects Technical Committee until January 1, 2020. Existing law: 1)Establishes the California Architects Board (CAB) within the Department of Consumer Affairs (DCA), which licenses and regulates professional architects under the Architects Practice Act. (BPC § 5500 et seq.) 2)Establishes the Landscape Architects Technical Committee (LATC), under the CAB, which licenses and regulates landscape architects. (BPC § 5615 et seq.) 3)Establishes the Professional Engineers Act, administered by the Board for Professional Engineers, Land Surveyors, and Geologists (BPELSG), within the DCA, which licenses and regulates professional engineers. (BPC § 6700 et seq.) 4)Creates the BPELSG within the DCA and extends the operation of the BPELSG until January 1, 2016. (Business and Professions Code (BPC) § 6710) AB 177 (Bonilla) Page 2 of ? 5)Defines the Professional Engineer's and Land Surveyor's Fund as a single special fund. (BPC § 6797; 8800) 6)Establishes the Geologist and Geophysicists Act, administered by the BPELSG, within the DCA, which licenses and regulates professional geologists and geophysicists. (BPC § 7800 et seq.) 7)Defines the Geology and Geophysicists Account within the Professional Engineers and Land Surveyors Fund. (BPC §§ 7885-7886) 8)Establishes the Land Surveyor's Act, administered by the BPELSG, within the DCA, which licenses and regulates the practice of land surveying. (BPC § 8700 et seq.) This bill: 1)Extends the sunset date for the BPELSG, CAB, and the LATC from January 1, 2016 to January 1, 2020. 2)Creates the Professional Engineers, Land Surveyors, and Geologists Fund by merging the Geology and Geophysics Account with the Professional Engineers and Land Surveyors Fund, as specified. 3)Gives the BPELSG the authority to discipline a licensee for failure to respond to a written request or information from the BPELSG stemming from complaint investigation. 4)Clarifies that the written contract requirement for a licensee must contain a provision for both party's ability to terminate and the procedure for termination of a contract. AB 177 (Bonilla) Page 3 of ? 5)Gives the BPELSG the ability to develop the education standards for licensure as a geologist, geophysicist, or a geologist-in-training. 6)Adds a sunset date to the specific section regarding failure to respond. 7)Makes other technical and clarifying changes. FISCAL EFFECT: This bill is keyed "fiscal" by Legislative Counsel. According to the Assembly Appropriations Committee dated May 13, 2015, this bill will result in: 1)On-going annual Special Fund costs of approximately $9.6 million (Professional Engineer's and Land Surveyor's Fund) and $1.4 million (Geology and Geophysics Account) to extend the BPELSG beyond the January 1, 2016, sunset date. This fund is self-supporting with fee revenue. 2)On-going annual Special Fund costs of approximately $3.9 million (California Architects Board Fund) to extend the CAB beyond the January 1, 2016, sunset date. This fund is self-supporting with fee revenue. 3)On-going annual Special Fund costs of approximately $1.0 million (Landscape Architects Fund) to extend the LATC beyond the January 1, 2016, sunset date. This fund is self-supporting with fee revenue. COMMENTS: 1. Purpose. The Author is the Sponsor of this bill. According to the Author, "This bill is necessary to ensure that AB 177 (Bonilla) Page 4 of ? consumers continue to be protected through the ongoing licensure and regulation of architects, landscape architects, engineers, land surveyors, and geologists." 2. Oversight Hearings and Sunset Review of Licensing Boards and Programs. In 2015, the Senate Business, Professions and Economic Development Committee and the Assembly Business and Professions Committee (Committees) conducted joint oversight hearings to review 12 regulatory entities: California Accountancy Board; California Architects Board and Landscape Architects Committee; California State Athletic Commission; Board of Barbering and Cosmetology; Cemetery and Funeral Bureau; Contractors State License Board; Dental Board of California; Board for Professional Engineers, Land Surveyors and Geologists; Board of Registered Nursing; Bureau of Security and Investigative Services; and Board of Vocational Nursing and Psychiatric Technicians. 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 by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed by the Committees for this year. In response to the recommendations in the background paper and the sunset hearing, this bill extends the sunset date for the BPELSG, the CAB, and the LATC from January 1, 2016, to January 1, 2020. This bill also incorporates proposed changes to the function of the BPELSG that arose out of the sunset review process including the merging of the Geology and Geophysics Account with the Professional Engineers and Land Surveyors Fund; giving the BPELSG the authority to discipline a licensee for failure to respond to a requires for information relating to a complaint investigation; and providing clarification of the licensure requirements for geologist. 3.Board for Professional Engineers, Land Surveyors, and Geologists. The BPELSG is charged with safeguarding the life, health, property, and public welfare by regulating the practices of professional engineering, land surveying, geology, and geophysics. The BPELSG provides this public AB 177 (Bonilla) Page 5 of ? service by qualifying and licensing individuals, establishing regulations, enforcing laws and regulations, and providing information so that consumers can make informed decisions. The complexity of engineering, land surveying, geology, and geophysics projects necessitates a very high degree of technical knowledge and skill which is typically only acquired after many years of experience. The vast majority of licensed engineers hold a college degree in engineering. Land surveyors make decisions and form opinions based upon interpretation of legal documents, field evidence, and the use of technically advanced instrumentation. Licensed geologists and geophysicists often obtain post-secondary degrees in earth sciences and devote many years of experience studying and interpreting historical data related to soils, earth dynamics, groundwater, and the effect those have on public improvements. 4. Merging the Funds. During the 4th Extraordinary Session of 2009, the Legislature merged the Board for Professional Engineers and Land Surveyors and the Board for Geologists and Geophysicists, ABX4-20 (Strickland, Chapter 18, Statutes of 2009). At the time of the subsequent sunset review in 2012, the recommendation was to keep the funds of each board separate until the functions of the new board integrated. Initially, the Licensing, Enforcement, and Administrative units of the BPELSG had separate personnel for geologists and geophysicists and for engineers and land surveyors. Presently, the activities and staff of these units are combined so each unit has authority to regulate all of the professions under the BPELSG. Despite the merger of these duties, funds are maintained separately as the Geology and Geophysics Account within the Professional Engineers and Land Surveyors Fund. By fiscal year 2015-16, the reserve in the Geology and Geophysics account is predicted to reach a level that would require a fee increase. The Professional Engineers and Land Surveyors Fund is predicted to remain solvent. This division of funds is the last remnant of the merger. This bill would combine the accounts to enable the BPELSG to fully integrate its operations and costs. 5. Enforcement Delays. One major issue raised in the sunset review hearing that interferes with the expeditious processing of a complaint is the lack of authority to require AB 177 (Bonilla) Page 6 of ? its licensees to respond to the Board or to provide documents related to a project which the Enforcement Unit may request during the course of a complaint investigation. One of the reasons for delays in the processing of investigations has been that staff gives the subject of the investigation ample time and opportunities to respond and provide documents during the investigation. However, what typically transpires is that the licensed subjects often think that if they do not respond, the complaint will simply be closed. While some cases are closed due to lack of substantive information in the complaint, this is unusual. In most cases, the BPELSG must either proceed based on the information on file or must expend additional time and resources such as referring the case to the Division of Investigation within the DCA to obtain the information. Often, if the BPELSG had received this information in a timely fashion, the complaint could have been resolved without any further action being pursued against the licensee. Presently, the Contractors' State License Board and the California Medical Board have the authority to pursue disciplinary action against a licensee who fails to respond to a request from an investigator in the course of an enforcement action. This bill gives the BPELSG the authority to initiate disciplinary action for a licensee that fails to respond to a written request by an investigator in the process of a complaint investigation. 6. Education Requirements for Geologists and Geophysicists. During the sunset review process, the BPELSG identified a concern relating to the licensure requirements for geologists. Under the Geology and Geophysics Act, a bachelor's degree in geology is required, however, the necessary coursework to qualify for licensure within a geology major it unclear. Presently, the narrow definition of the education requirement of having graduated with a degree in geology has created some confusion in applicants looking for licensure. This results in an applicant being denied a license because upon review of the coursework the applicant has insufficient education in the field. The BPELSG is examining how to better capture new graduates by clarifying this section of the Geology and Geophysicists Act. This bill authorizes the BPELSG to formulate the requirements for licensure through regulation. 7. Written Contract Requirement. Presently, most of the AB 177 (Bonilla) Page 7 of ? regulated trade professions have the requirement that a written contract be executed prior to performing professional services. The language in the BPC provides a loophole that according to the BPELSG has been used by licensees at the potential detriment of consumers. Currently, the BPC sections require that a contract include description of the procedure to be used by any party to terminate the contract rather than giving both parties the ability to terminate the contract. This provision has resulted in some licensees including only a provision giving the licensee the ability to terminate. This bill would clarify that the licensee must include language in a written contract about how both parties can terminate the contract. 8. CAB and LATC. The CAB was created in 1901 by the Legislature to fulfill the mission of protecting the health, safety, and welfare of the public through the regulation of the practice of architecture. The CAB establishes regulations for the examination and licensing of the architecture profession in California, which today numbers approximately 21,000 licensed architects and approximately 11,000 candidates who are in the process of meeting examination and licensure requirements. The mission of the CAB is to protect the public health, safety, and welfare through the regulation of the practice of architecture and landscape architecture in California. California began regulating the practice of landscape architecture in 1953. The LATC, under the purview of the CAB, was created by the Legislature to protect the health, safety, and welfare of the public by establishing license standards and enforcing the laws and regulations that govern the practice of landscape architecture in California. The LATC is responsible for the examination, licensure, and enforcement programs concerning landscape architects. The LATC currently licenses more than 3,500 of the over 16,400 licensed landscape architects in the United States. The mission of the LATC is to regulate the practice of landscape architecture in a manner which protects the public health, safety, and welfare and safeguards the environment, as specified. In fulfilling their missions, the CAB and the LATC have found that acting preventively and proactively is the best use of its resources. Because of the nature of the design AB 177 (Bonilla) Page 8 of ? profession, there are numerous opportunities to prevent minor problems from becoming disasters. As such, the CAB and the LATC works to aggressively address issues well before they exacerbate into catastrophes. In the CAB's Enforcement Program, for example, this means cooperatively working with building departments through the CAB's first-of-its-kind Building Official Contact Program. The CAB and the LATC work closely with professional groups to ensure that licensees understand changes in laws, codes, and standards, and monitor changes in industry and the environment to ensure licensure and regulation reflect current needs. The CAB and the LATC also invest in communicating with consumers, schools, licensed professionals, and related professions and organizations. To ensure the effectiveness of these endeavors, the CAB and the LATC works to upgrade and enhance its communications by constantly seeking feedback and analyzing the results of its communications efforts. 9. Review of the CAB and LATC Issues. While the Committees raised a number of issues relating to the CAB and the LATC, none required any statutory changes. As a result, the only change necessary was the extension of the CAB and the LATC until January 1, 2020. 10.Related Legislation This Year. SB 465 (Hill) extends the operation of the Contractors' State License Board until 2020 and makes various changes to the Contractors' State License Law. ( Status: The bill is pending in the Assembly Committee on Business and Professions.) SB 466 (Hill) sunsets the Board of Registered Nursing. ( Status: The bill is pending in the Assembly Committee on Business and Professions.) SB 467 (Hill) extends the operation of the California Board of Accountancy until 2020 and makes various changes in regards to the DCA. ( Status: The bill is pending in the Assembly Committee on Business and Professions.) SB 468 (Hill) extends the operation of the Bureau of Security and Investigative Services and the Alarm Company Act, Locksmith Act, Private Investigator Act, Private Security Services Act, Proprietary Security Services Act, and Collateral Recovery Act until January 1, 2020. It also AB 177 (Bonilla) Page 9 of ? subjects the Bureau to review by the appropriate committees of the Legislature and makes various changes to provisions in the aforementioned Acts to improve the oversight, enforcement and regulation by the Bureau of licensees under each Act. ( Status: The bill is pending in the Assembly Committee on Business and Professions.) SB 469 (Hill) extends the operation of the California State Athletic Commission until January 1, 2020. Makes changes to the laws governing the Commission's operations and the Commission's oversight of professional and amateur boxing, professional and amateur kickboxing, all forms and combinations of full contact martial arts contests, including mixed martial arts and matches or exhibitions conducted, held or given in California. ( Status: The bill is pending in the Assembly Committee on Business and Professions.) AB 178 (Bonilla) extends the operation of the Board of Vocational Nursing and Psychiatric Technicians until January 1, 2020. ( Status: The bill is pending in the Senate Appropriations Committee.) AB 179 (Bonilla) extends the operation of the Dental Board of California until January 1, 2020. ( Status: The bill is also set for a hearing before this Committee on July 6.) AB 180 (Bonilla) extends the operation of the Cemetery and Funeral Bureau until January 1, 2020. ( Status: The bill is also set for a hearing before this Committee on July 6.) AB 181 (Bonilla) extends the operation of the California State Board of Barbering and Cosmetology (BBC) until January 1, 2020. Makes changes to the laws governing the Board's regulation of barbers, cosmetologists, estheticians, electrologists, manicurists, apprentices and establishments. ( Status: The bill is also set for a hearing before this Committee on July 6.) AB 320 (Wood) adds the title "environmental engineer" to the list of professional engineers currently given Title Act protection and prevents a person from using that title unless licensed by the Board for Professional Engineers, Land Surveyors, and Geologists. This bill also exempts licensed civil, electrical, and mechanical engineers from additional AB 177 (Bonilla) Page 10 of ? qualifications to use the title, "environmental engineer." ( Status: The bill is also set for a hearing before this Committee on July 6.) 11.Arguments in Support. The Board of Professional Engineers, Land Surveyors, and Geologists writes, "AB 177 would merge the Geology and Geophysics Account of the Professional Engineer's and Land Surveyor's Fund into the fund, which would be renamed the Professional Engineer's, Land Surveyor's and Geologist's Fund. Additionally, AB 177 would add a much needed cause for disciplinary action by the Board if a licensee or certificate holder fails or refuses to respond to a written request from a representative of the board to cooperate in the investigation of a complaint against that licensee or certificate holder." The Professional Engineers in California Government underscores that "continued licensure of these professional are necessary to ensure ongoing public protection." The California Council of the American Society of Landscape Architects highlights that "the LATC has a strong record in providing an appropriate balance between protecting the interest of consumers and regulating the practice of landscape architects through their licensing and regulatory programs." 12.Arguments in Opposition. D. Wolley & Associates, Inc. writes in opposition, underscoring that "Section 8780.2 is overreaching and violates licensees' constitutional rights and protections." 13.Technical Amendments. On page 8, line 29 of the bill, the bill should read, "This section shall become operative on July 1,20172016." The Author has agreed to take this technical amendment on the Senate Floor. SUPPORT AND OPPOSITION: Support: Board of Professional Engineers, Land Surveyors, and Geologists California Council of the American Society of Landscape AB 177 (Bonilla) Page 11 of ? Architects California Land Surveyors Association Professional Engineers in California Government Opposition: D. Wolley & Associates, Inc. -- END --