BILL ANALYSIS Ó AB 181 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 181 (Bonilla) As Amended September 4, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |79-0 |(June 1, 2015) |SENATE: |40-0 |(September 9, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 AB 181 Page 2 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. AB 181 Page 3 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 AB 181 Page 4 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 AB 181 Page 5 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 AB 181 Page 6 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 AB 181 Page 7 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 AB 181 Page 8 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. AB 181 Page 9 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 AB 181 Page 10 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. AB 181 Page 11 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 AB 181 Page 12 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 AB 181 Page 13 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