BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 181


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          181 (Bonilla)


          As Amended  September 4, 2015


          Majority vote


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          Original Committee Reference:  B. & P.


          SUMMARY:  Extends the regulatory authority for the Board of  
          Barbering and Cosmetology (BBC) until January 1, 2020; requires  
          the BBC to conduct a review of its current 1,600-hour curriculum  
          requirements for the Cosmetologist license; requires the BBC to  
          adopt a protocol for its inspector program; requires the BBC to  
          establish a Health and Safety Advisory Committee; requires the  
          BBC to issue regulations regarding a personal service permit, as  
          specified, and, makes numerous other minor and technical changes  
          to delete obsolete code sections and references.  In addition,  
          this bill makes numerous substantive, technical, and  
          non-controversial changes to various provisions of the  
          non-healing arts boards regulated by the Department of Consumer  
          Affairs (DCA).  Specifically, this bill:


          1)Requires the BBC to review the 1,600-hour training requirement  
            for Cosmetologists, conduct an occupational analysis of the  
            cosmetology profession in California, and conduct a review of  








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            the national written examination for cosmetologists and of the  
            practical examination in order to evaluate whether both  
            examinations assess critical competencies for California  
            cosmetologists and meet professional testing standards and  
            report back to the appropriate policy committees by November  
            1, 2018.
          2)Requires the BBC to conduct a review of the Spanish-language  
            examination if by January 1, 2016, the pass rate for Spanish  
            speakers did not increase to the average pass rate for all  
            other language examinations during the two-year period prior  
            to January 1, 2016.


          3)Requires the BBC to adopt a protocol for inspecting  
            establishments when an inspector has difficulty understanding  
            or communicating with the owner, manager, or employees of the  
            establishment due to language barriers, and requires the BBC  
            to evaluate the protocol every two years to ensure the  
            protocol remains current.


          4)Requires the BBC to establish a Health and Safety Advisory  
            Committee to provide the BBC with advice and recommendations  
            on health and safety issues before the BBC. 


          5)Defines a "personal service permit" to mean a permit that  
            authorizes an individual to perform services, for which he or  
            she holds a license, as specified, outside of an establishment  
            in accordance with regulations established by the BBC.


          6)Permits the BBC to issue a personal service permit to an  
            individual who meets the criteria for a personal service  
            permit set forth in regulation.


          7)Requires the BBC to issue regulations regarding a personal  
            service permit, and in establishing those regulations, the BBC  
            is required to hold, at a minimum, two stakeholder meetings.










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          8)Requires the BBC to determine the appropriate licensing  
            categories that may apply for a personal service permit in  
            order to protect consumer safety.


          9)Requires the BBC to authorize a personal service permit holder  
            to perform services outside of a licensed establishment.


          10)Prohibits the BBC from exempting a personal service permit  
            holder from any of the BBC's existing regulations or  
            requirements on health and safety.


          11)Specifies that the BBC cannot require a personal service  
            permit holder to be employed by an establishment, unless the  
            BBC determines that it would be necessary in order to maintain  
            consumer safety.


          12)Specifies that the regulations may require an applicant for a  
            personal service permit to have proof of liability insurance  
            and to pass a criminal background clearance.


          13)States that a personal service permit is valid for two years  
            and must be renewed prior to expiration.


          14)Specifies that the initial and renewal fee for a personal  
            service permit can be no greater than $50, and the delinquency  
            fee is 50% of the renewal fee in effect on the date of the  
            renewal.


          15)Requires the BBC to report to the Legislature, as specified,  
            on or before January 1, 2017, on the progress of the  
            regulatory process and the issuance of the personal service  
            permit.


          17)Makes the following substantive changes relating to the  








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            California Board of Accountancy (CBA):


             a)   Clarifies that a canceled license placed into retired  
               status may not be renewed, restored, or reinstated.
             b)   Requires that such license holders reapply for licensure  
               if they wish to renew restore, or reinstate their license.


          18)Adds that a funeral establishment must use the words "good,"  
            "merchandize," "products," or "services" on its home page to  
            identify a link to the list of goods and services.
          19)Clarifies that contractor licensees are required to notify  
            the registrar 90 days after any change in information.


          20)Allows California Travel and Tourism Commission members to  
            participate in meetings through teleconference and other  
            technology. 


          21)Deletes the requirement for architects to prepare civil  
            engineering plans, calculations, specifications, and reports  
            for the construction of structures.


          22)Makes the following substantive changes relating to  the  
            Structural Pest Control Board:


             a)   Deletes language that limits the effect of the statute  
               to Branch 1 and Branch 3 registered companies.
             b)   Adds language that allows a person to represent that  
               pest control work has been completed by an unlicensed  
               company or individual in cases where the Business and  
               Professions Code (BPC) specifies that the unlicensed  
               company may complete the work.


             c)   Adds language in order to clarify that branch office  
               supervisors must be field representatives or operators who  
               are licensed in the branch or branches of pest control that  








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               is being conducted at that office.


          23)Makes numerous technical, non-substantive, and clarifying  
            changes including deleting obsolete references to departments  
            and reports.   
          The Senate amendments delete the requirement that the BBC  
          conduct the review of its current 1,600-hour curriculum  
          requirements in conjunction with the Office of Professional  
          Examination Services; require the BBC to issue regulations  
          regarding a personal service permit and require the BBC to  
          conduct stakeholder meetings in developing those regulations;  
          authorize the BBC to issue a personal service permit if  
          specified conditions are met; revise the fee for the renewal of  
          a personal service permit from $80 to $50; make other technical  
          and clarifying amendments to the Barbering and Cosmetology Act,  
          and add language which make numerous substantive, technical, and  
          minor non-controversial changes to various provisions of the  
          non-healing arts boards regulated by DCA.  


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, this bill will result in: 


          1)No significant costs are anticipated due to the extension of  
            the California State Board of Barbering and Cosmetology  
            (Barbering and Cosmetology Contingent Fund).  Under current  
            law, the BBC itself has a statutory sunset (including the  
            BBC's authority to employ an executive officer).  However, the  
            larger body of current law requiring licensure for barbers and  
            cosmetologists and authorizing the enforcement of those laws  
            does not have a statutory sunset.  If this bill was not  
            enacted and the BBC itself sunset, the overall regulatory  
            program would still existing within the DCA (less the costs  
            associated with the Board itself).  Therefore, extending the  
            sunset of the BBC does not impose any significant costs.


          2)One-time additional costs of about $510,000 for additional  
            requirements imposed in the bill (Barbering and Cosmetology  
            Contingent Fund).  The BBC would review the existing 1,600  








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            hour training requirement for cosmetologists, conduct an  
            occupational analysis of the cosmetology profession, conduct a  
            review of the existing national written examination and  
            California practical examination for cosmetologists, and  
            conduct a review of the Spanish-language examination and  
            curriculum.


          3)Ongoing costs of about $70,000 per year for issuing new  
            personal service permits (Barbering and Cosmetology Contingent  
            Fund).


          4)Unknown costs for enforcing licensing requirements relating to  
            the new personal service permit (Barbering and Cosmetology  
            Contingent Fund).


          5)Anticipated ongoing fee revenues of about $5 million per year  
            for new personal service permits (Barbering and Cosmetology  
            Contingent Fund).  The BBC anticipates that about 15% of  
            licensees will seek the new permit.





          COMMENTS:  


          Purpose.  This bill is one of five author-sponsored sunset  
            bills.  According to the author, "The BBC ensures that  
            applicants for licensure have completed the necessary training  
            and passed both a written and practical examination in order  
            to demonstrate that licensed individuals possess the knowledge  
            and skills required to perform within the scope of their  
            discipline in order to protect the public's health and safety.  
             In addition, the BBC is responsible for carrying out many  
            responsibilities which ensure the safety of consumers and help  
            benefit the robust licensing populations in California.  In an  
            effort to improve the BBC's regulatory capacity and improve  
            administrative inefficiencies, this bill will require the BBC  








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            to prioritize some of the issues raised in the Committee's  
            background paper during its sunset review, including reviewing  
            curriculum standards, ensuring that the curriculum and tests  
            are appropriate for Spanish-language test takers, establishing  
            a Health and Safety committee, issuing regulations regarding a  
            personal service permit, and making technical changes to  
            outdated sections of the Act."  In addition, this bill will  
            make numerous minor and non-controversial changes to various  
            provisions of the non-healing arts boards regulated DCA.


          Background.  The BBC licenses and regulates over 550,000  
            licensees.  Each profession has its own scope of practice,  
            entry-level requirements, and professional settings, with some  
            overlap in areas.  The BBC's licensing population includes:   
            Barbers; Barber Apprentices; Cosmetology Apprentices;  
            Cosmetologists; Electrologists; Estheticians; Manicurists;  
            Establishments; and, Mobile Units.  The BBC's last sunset  
            review was completed in 2013, and at that time it was granted  
            a two-year extension to address outstanding issues as  
            determined by the Legislature.  


          Joint Oversight Hearings and Sunset Review of DCA Licensing  
            Boards.  In March of 2015, the Assembly Business and  
            Professions Committee and the Senate Business, Professions and  
            Economic Development Committee conducted multiple joint  
            oversight hearings to review ten regulatory boards and other  
            entities within the DCA.  The legislation pertaining  
            specifically to the BBC in this bill is based on specific  
            issues raised and addressed in the report released by the  
            Assembly Business and Professions Committee.  


          Inspector Program.  An important and essential arm of the BBC's  
          enforcement activities is the Inspection Program, whose primary  
          role is enforcing health and safety regulations.  This is  
          accomplished through directed, random, initial and targeted  
          inspections of the 50,473 establishments and 283 schools of  
          barbering, cosmetology, and electrology.  During the BBC's 2013  
          sunset review, the Committee's background paper cited  
          "continuous problems with the Inspector Program" and requested  








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          the BBC to address numerous issues including the inappropriate  
          use of the position, lack of proper training, and concerns with  
          vacancies.  In addition to the BBC's reported inspection  
          challenges, stakeholders have also shared concerns with the  
          inspection process, especially as it pertains to language  
          barriers.  As noted, the BBC regulates a diverse population,  
          which includes many individuals with limited English  
          proficiency, who cannot always understand English-language  
          inspection forms or are met with communication problems during  
          an inspection.  Currently, it appears that the BBC does not have  
          a standardized protocol or systematic process for inspectors  
          when they encounter potential language barriers, which may  
          complicate the inspection process and result in dissatisfactory  
          outcomes for licensees.  The BBC reports that in an effort to  
          help better identify concerns of licensees regarding inspectors  
          and the inspection process, it has translated complaint forms  
          into Vietnamese, Spanish, and Korean.  The BBC reports that it  
          is also working with the DCA to provide training to inspectors.   
          In order to help address some of the challenges with the  
          Inspector Program, this bill will require the BBC to develop a  
          protocol for inspecting establishments where language concerns  
          exist.


          Curriculum Requirement.  In 2009, the BBC reports that it  
            transitioned to the national written examination.  Since the  
            transition, the BBC has seen a decline in the pass rates of  
            the written examination.  The BBC reports that this may result  
            from new material on the examination being "current and  
            relevant to today's practices" as the previous examination had  
            been in circulation for many years and many schools often  
            provided courses on how to pass the old version of the  
            examination.  It is unclear what, if any, updates, changes, or  
            revisions were made to schools' curriculum standards or if  
            reference materials were updated as a result of the transition  
            to the national examination.  This bill will require the BBC  
            to review its current curriculum standards to ensure that the  
            1600-hour requirement for cosmetologists is warranted and that  
            the materials being taught to students are relevant to today's  
            practices. 










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          In addition, the committee's background paper also noted  
          concerns with the Spanish-language examination pass rate which  
          has been low for a number of years.  The Spanish-language pass  
          rate issue has plagued the BBC during the last two sunset  
          reviews and continues to be an issue.  This bill will require  
          the BBC to conduct a review of the Spanish-language examination  
          and curriculum as specified.


          Advisory Committee.  During the BBC's 2013 sunset review, the  
          committee background paper raised current health and safety  
          issues which continue to plague the beautification industry,  
          especially in nail salons.  The report stated, "nail salons are  
          of particular concern due to the high preponderance of minority  
          women working for extremely long hours in settings that are not  
          properly ventilated and having constant contact with potentially  
          dangerous chemicals linked to illness and reproductive health  
          problems."  Because the continued changes in the industry and  
          new beautification products are brought to market, this bill  
          requires the BBC to establish a permanent committee which is  
          designated to review industry trends as they relate to health  
          and safety standards to ensure the timely distribution of  
          information about potential and growing concerns.


          Personal Service Permit.  The BBC's 2014 sunset review report  
          identified several new issues pertaining to workforce  
          development which included expanding or altering licensing  
          classifications.  Currently in California, all BBC-regulated  
          beautification services are required to be obtained within a BBC  
          licensed establishment.  BCP Section 7317 specifically states  
          that it is unlawful for any person, firm, or corporation to  
          engage in barbering, cosmetology or electrolysis practices, for  
          compensation, in an establishment or mobile unit which is not  
          licensed by the BBC.  Legally, those BBC-licensed establishments  
          or the twenty-one licensed mobile units are the only facilities  
          where consumers can access services of licensed professionals  
          regulated by the BBC.  


          As reported by the BBC, current trends in the beautification  
          industry have found that consumers are beginning to seek  








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          services outside the walls of a traditional brick and mortar  
          establishment such as homes, hotels, businesses, and other  
          non-traditional locations.  This bill authorizes the BBC to  
          determine whether or not to issue a "personal service permit"  
          and requires the BBC to hold stakeholder meetings among other  
          requirements during the regulatory process in establishing the  
          personal services permit.  This bill requires the BBC to provide  
          an update to the Legislature by January 1, 2017, on its progress  
          of the regulatory process and the the issuance of a personal  
          service permit.  


          Cemetery and Funeral Bureau.  SB 658 (Negrete-McLeod), Chapter  
          386, Statutes of 2011, enhanced California's disclosure  
          requirements by specifically requiring, beginning January 1,  
          2013, that all funeral establishments which maintain a website,  
          post their list of funeral goods and services.  As drafted, this  
          requirement does not require any specific identification to the  
          Web site link where this information is posted.  However, if a  
          funeral establishment elects to post a link to its General Price  
          List, it must identify the link on its home page with the words  
          "price information" or a similar phrase that includes the word  
          "price." (BPC Section 7685 (b) (3))


          The Center for Public Interest Law's experience and the  
          experience of the Funeral Consumers Alliance (affirmed by 2013  
          report by the Orange County Register) revealed that the ability  
          of consumers to obtain consistent and reliable funeral  
          establishment product and pricing information over the Internet  
          is oddly difficult.  In the absence of such information over the  
          Internet, consumers cannot ask about products or services over  
          the phone and get comparison quotes because they may not in the  
          first place know what products or services funeral  
          establishments offer generally, or which services are offered by  
          a particular facility.  


          This bill would require that a funeral establishment must use  
          the words "goods," "merchandise," "products," or "services" on  
          its home page to identify a link to the list of goods and  
          services to enable consumers to find this important information.








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          County Clerks and Election Officials.  Current law is unclear  
          for out-of-state registrants for a fictitious business name as  
          to whether the required documentation by the county clerk needs  
          to be from the California Secretary of State (SOS) or any SOS.   
          Therefore, this bill clarifies that the applicant for a  
          fictitious business name in the State of California provides  
          required documentation from the California SOS, if requested by  
          the county clerk.


          Contractors State License Board.  BPC Sections 136 and 7083  
          conflict as to the required timeframe for a licensee to report  
          an address change.  BPC Section 136 requires a licensee to  
          notify the issuing board at its principal office of any change  
          in his or her mailing address within 30 days after the change,  
          unless the board has specified by regulations a shorter time  
          period.  This is the usual timeline for all DCA licensees.


          However, BPC Section 7083 provides that all licensees shall  
          notify the registrar, on a form prescribed by the registrar, in  
          writing within 90 days of any change to information recorded  
          under Chapter 9, Division 3 of the BPC.  This bill addresses a  
          conflict in the timeframe for reporting information to the board  
          and underscores that contractor licensees are required to notify  
          the registrar 90 days after any change in information.


          Governor's Office of Business and Economic Development.  This  
          bill makes a technical change to the Government Code that allows  
          members to participate in the California Travel and Tourism  
          Commission via teleconference and other technology.  This bill  
          continues to ensure that the teleconference is still subject to  
          the requirements of the Bagley-Keene Open Meeting Act and all  
          other requirements that allow for accessibility.


          Board of Guide Dogs for the Blind.  Referring to persons who are  
          blind or visually impaired as "blind person" is considered  
          offensive to many members of the community.  The accepted  








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          terminology is to identify the individual as a person who has a  
          specific medical condition.  This is called "person first  
          terminology".


          This bill will change the language to reflect the accepted  
          terminology to identify a person who is blind.  With this  
          wording, the person is not defined by their condition.   
                                                              Additionally, members of the public and the board have noted the  
          outdated language referring to the use of the masculine gender  
          in the code.  This bill would remove specific gender from the  
          code.  


          Board for Professional Engineers, Land Surveyors and Geologists.  
           Currently, BPC Section 6735 allows architects to sign off on  
          civil engineering plans, calculations, specifications, and  
          reports for the construction of reports.  Since the level of  
          education and expertise are dramatically different between the  
          two groups, this bill reverts the code section back to its 2014  
          format where only civil engineers may sign off on civil  
          engineering plans, calculations, specifications, and reports for  
          the construction of reports.


          Structural Pest Control Board.  For BPC Section 8508, this bill  
          replaces the word "man" with the word "persons" and replacing  
          the word "his" with the word "their".  For BPC Section 8513,  
          this bill deletes the language that limits the effect of the  
          statute to Branch 1 and Branch 3 registered companies in order  
          to correct statutory inconsistencies. Branch 2 registered  
          companies routinely contract directly with consumers therefore,  
          Branch 2 registered companies are subject to the provisions of  
          BPC Section 8513 and the mechanic's lien laws.


          This bill also deletes repetitive language, BPC Section 8516.5,  
          as its provisions have been incorporated into BPC Section 8516.   
          For BPC Section 8552, this bill adds language that allows a  
          registered company to represent work that has been completed by  
          an unlicensed company or individual only in cases where the Act  
          explicitly provides for an unlicensed company to complete such  








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          work.  Currently, BPC Section 8552 makes no such allowance even  
          though there are instances where repair work may be performed by  
          unlicensed companies or individuals.




          This bill adds language in order to clarify that branch office  
          supervisors must be field representatives or operators who are  
          licensed in the branch, or branches of pest control that is  
          being conducted at that office.


          Analysis Prepared by:                                             
                          Elissa Silva / B. & P. / (916) 319-3301  FN:  
          0002332