BILL ANALYSIS Ó AB 836 Page 1 Date of Hearing: April 14, 2015 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Susan Bonilla, Chair AB 836 (Rendon and Low) - As Amended April 6, 2015 NOTE: Double Referral: This bill is double referred, and if passed by this Committee, it will be referred to the Assembly Committee on Arts, Entertainment, Sports, Tourism, and Internet Media. SUBJECT: Tour guides: regulation. SUMMARY: Creates a voluntary certification program for tour guides under the California Travel and Tourism Commission (Commission) and requires tour guides providing tours to multiple sites in California to have adequate training and knowledge and pass a criminal background check. Requires the Commission to provide a list of certified tour guides to individuals seeking to hire a tour guide in California upon request. EXISTING LAW 1)Establishes a nonprofit mutual benefit corporation known at the California Travel and Tourism Commission. (Government Code (GC) Section 13995 et seq.) AB 836 Page 2 2)Requires the Commission to consist of thirty-seven members - twelve professional members appointed by the Governor, twenty-four elected members representing various aspects of the industry, and the Director of the Governor's Office of Business and Economic Development as the chairperson. (GC Section 13995.40) 3)Defines the purpose of the Commission is to market and promote travel and tourism to and within California in order to expand and strengthen the travel and tourism industry in the state by utilizing generic promotional methods and techniques which will mutually benefit travel and tourism businesses of all sizes and categories. (GC Section 13395.1) 4)Declares the marketing of California tourism affects the public interest and gives the Director and the Commission the authority to exercise the police powers of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of California. (GC Section 13395.50-51). THIS BILL 1) Defines "approved school" or "approved tour guide school" to mean a facility that is approved by the Commission and meets minimum standards for training and curriculum in California tour guiding and related subjects and meets any of the following requirements: AB 836 Page 3 a) Approved by the Bureau for Private Postsecondary Education; b) Approval by the Department of Consumer Affairs; and, c) Accreditation by the Accrediting Commission for Senior Colleges and Universities or the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges and that is any of the following: i) A public institution; ii) An institution incorporated and lawfully operating as a nonprofit public benefit corporation, as specified, and is not managed by any entity for profit; iii) A college or university of the state higher education system as specified; and, iv) A school requiring equal or greater training than required and recognized by the United States Department of Education. 2)Defines a "certificate" to mean a valid certificate issued by the Commission. 3)Defines "Commission" to mean the California Travel and Tourism Commission. 4)Defines "Compensation" to mean anything of value, including, AB 836 Page 4 but not limited to, a payment, loan, advance, donation, contribution, deposit, or gift money. 5)Defines "tour guide business" to mean a business or establishment that provides compensation for tour guides in California. 6)Defines "tour guide professional" or "tour guide" to mean a person who is certified by the Commission and practices tour guiding for compensation. 7)Requires the Commission to establish a tour guide certification program and provide for the promotion of certified tour guides to persons or organizations seeking to hire tour guides in California. 8)Authorizes the Commission to collect fees to cover the cost of the program and to approve tour guide schools. 9)Gives the Commission authority to issue certifications to individuals who hold a current and valid registration, certification, or license to work as a tour guide from any California city, county, or city and county. 10)Authorizes the Commission to certify individuals from other states who hold a current and valid registration, certification, or license and who demonstrate knowledge of tour group safety and California geography, history, and culture, as specified, and provides discretion to the Commission to give credit towards the academic requirements for individuals attending non-approved schools. AB 836 Page 5 11)Requires an applicant for certification as a tour guide to submit an application to the Commission and provide evidence that he or she meets the following: a) Be twenty-one (21) years of age or older; b) Must successfully complete the curricula in California tour guiding and related subjects including tour group safety and California geography, history, and culture; c) Pass a California tour guide competency examination that is approved by the Commission; and, d) Pay fees required by the Commission. 12)States that a tour guide certificate expires in two years unless renewed. 13)Requires the Commission to determine whether the school from which an applicant received his or her training meets the academic requirements for certification, as specified. 14)Allows the Commission to conduct oral interviews of the applicant in making a determination that the information received by an applicant is accurate. 15) Requires an applicant to submit fingerprints for a criminal background check conducted by the Department of Justice and the Federal Bureau of Investigation, as specified, and authorizes the DOJ and the Commission to charge a fee not to exceed the reasonable cost of processing the request. AB 836 Page 6 16)Permits the Commission to require its own employees, volunteers, and members to undergo a background investigation process similar to an applicant. 17)States the grounds for discipline, certificate revocation, or denial of an application are as follows: a) Unprofessional conduct; b) Procuring a certificate by fraud, misrepresentation, or mistake; c) Impersonating an applicant or acting as a proxy for an applicant in any examination; d) Impersonating a certificate holder, or permitting a noncertified person to use a certificate; e) Violating or attempting to violate any provision of this act or any rule or bylaw adopted by the Commission; f) Committing any fraudulent, dishonest, or corrupt act that is substantially related to the qualifications or duties of a certificate holder; g) Committing any act punishable as a sexually related crime; AB 836 Page 7 h) Committing any act resulting in sanctioning of any other license by any other state, or by any other government agency, or of a license issued by a California health care professional board; and, i) Being convicted of a felony or misdemeanor that is substantially related to the qualifications or duties of a certificate holder. 18) Authorizes the Commission to discipline a certificate holder by probation, suspension, revocation, or suspending or staying the disciplinary order with or without conditions, or taking any other action as the Commission deems proper. 19)Voids a certificate denial or discipline not conducted as required by the Act. 20)Requires any denial or discipline to be decided and imposed in good faith and in a fair and reasonable manner. Establishes the method for which a disciplinary action must be undertaking including providing reasonable notice and the opportunity to be heard. 21)Requires the Commission to provide background information relating to a certificate holder to law enforcement or to a local agency responsible for regulating or administering a local ordinance relating to tour guiding as specified. 22)Requires the Commission to maintain an accurate list of certified tour guides and provide the list to tour guide businesses and other organizations seeking to hire tour guides. AB 836 Page 8 23)Prevents a non-certified person from taking a tour group into state parks and other state facilities for compensation as part of a multisite tour. 24)Expresses that this Act will not interfere with a person's exercise of the right to freedom of speech. 25)Specifies that the Act applies only to tour guides for hire that show travelers more than one sight in California and excludes tour guides that work for a museum, amusement park, or other organization that invites tourists to visit its facility. 26)Provides that a certificate holder can perform tour guides in any city or county and is not required to obtain any other certification, license, permit, or authorization to engage in that practice. 27)Allows a city or a county to establish its own program within its jurisdiction and seek approval from the Commission for its tour guides to obtain state certification. 28)States that a city, county, or city and county may require a tour guide business or establishment to file copies or provide other evidence of a certificate held by a person providing tour guide services at the business. 29)States that a city, county, or city and county may charge a tour guide business or establishment a business licensing fee as specified. AB 836 Page 9 30)Provides that a city or a county may adopt rules relating to business practices, land use, and zoning relating to the practice of tour guiding. FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel. COMMENTS 1)Purpose. This bill is sponsored by Tour Guide Coalition of California . According to the author, "Every year, California attracts millions of tourists from all around the world. Many come on or take organized tours with tour guides. In order for these tour passengers to get the most out of their visit and return to the Golden State, it is necessary to ensure that their tour guides have knowledge of California's history, culture and sights, as well as knowledge of safe tour guiding practices." 2)Background. Anecdotal stories of bus boys serving as impromptu tour guides to unsuspecting tourists and potential safety concerns for wary visitors run the risk of creating a negative experience for travelers to California. Considering that travel and tourism plays a valuable role in California's economy, the formation of a tour guide certification program would attempted to curtail this potential of harm to tourists and the damage to the reputation of reputable tour guides. According to the California Travel Association, the travel industry generated $106.4 billion in revenue from visitors and contributes to $6.6 billion in state and local taxes in 2012. The revenue stream is predicted to grow to over $135.6 million by 2016. In 2013, California hosted nearly 16 million international visitors and it is forecasted to grow at over 5% per year through 2016. To support this volume of visitors, the travel and tourism industry maintains over 950,000 jobs. AB 836 Page 10 Tour Guide Regulations. Presently, the State of California does not have a tour guide certification program. Therefore, any individual regardless of training or adequate and accurate knowledge about California's history, culture, and special interests can be hired as a tour guide. Tour guides operate in various venues throughout California including local attractions, wine tours, historical buildings, and museums. Tour guides can be work independently or with a tour guide company. Regardless of the location or manner of employment, there are currently no standards relating to tour safety or management of groups of people. No system exists to shield tourists from unqualified persons or criminal elements operating as tour guides. The Commission. The California Travel and Tourism Commission is a California non-profit mutual benefit corporation established in accordance with the California Tourism Marketing Act. It was designed to work with the Office of Tourism to be the official state representative of California tourism. The primary mission of the Commission is to promote travel to and within California. The Commission consists of thirty-seven members chosen from industry representatives with the Director of the Governor's Office of Business and Economic Development serving as the Chairperson. The Commission meets at least three times a year and is authorized to establish various committees to assist in marketing and to advise the regional needs of travel and tourism throughout California. Other Cities, Counties, and States. Several regions in the United States have tour guide certification programs without consistency in qualifications or requirements. For example, the San Diego Professional Tour Guide Association was created AB 836 Page 11 to enhance the visitor's overall experience while in San Diego. Consistent with this mission, it has a voluntary certification program that consists of a written examination, an oral presentation, and two ride-a-long training tours. The association provides standard rates for various set tours which are serviced by its certified tour guides. In New York City, a voluntary program exists that requires a written test and a criminal declaration. The State of Hawaii issues a certification to tour guides that have completed an approved eight-hour tour guide course. In New Orleans, certified tour guides must provide a criminal background check with no felony convictions within five years, pass a drug test, be eighteen years or older, and successfully complete the written tour guide examination. Only certified tour guides may provide tours in New Orleans or risk a misdemeanor charge. In the District of Columbia, a licensed tour guide is required pay the required fees, pass a criminal background check, be eighteen years or older, and be fluent in English. The District of Columbia regulations restrict the practice of tour guiding to only licensed persons. While consistency lacks among the programs, the overarching principle is to provide for tour guides that demonstrate baseline knowledge of the regional history and culture that acts to enhance the experience of its visitors Legal Battles Relating to Tour Guide Laws. A series of lawsuits have been filed in the last few years challenging tour guide regulations as infringing on the freedom of speech. Currently, a local ordinance in Savannah, Georgia is waiting to be heard in the Federal district court on similar grounds. Previous litigation resulted in the New Orleans' law being upheld by the Fifth Circuit Court of Appeals. The DC Court of Appeals found otherwise and held that the District of Columbia's tour guide laws requiring the passage of a tour guide examination interfered with a person's freedom of speech. Despite the split in the circuit courts, the United States Supreme Court denied review. AB 836 Page 12 Tour Guide Schools in California. Presently, there are approximately four tour guide schools in California. The types of schools range from online programs, to an intense one-week to two-week courses, to an associated degree in travel and tourism. There is presently no standardization in tour guide school curricula. State Parks. This bill requires that a tour guide for hire leading a group on a tour of multiple sites in California to be certified before being allowed to take his or her group into state parks and state facilities. There are dozens of state parks and state buildings, such as the Capitol and the State Archives. It is unclear how often tour guides for hire access the parks and buildings. POLICY ISSUES FOR CONSIDERATION 1)This bill will not prevent persons from operating as tour guides or holding themselves out as tour guides or operating tour guide businesses except as discussed above in regards to state parks and structures. Further, this bill does not offer title protection for certified tour guides so there are no limitations on a person calling himself or herself a certified tour guide. 2)Additionally, there is no review process or oversight by the State as required by every board and bureau under the Department of Consumer Affairs. Unlike the boards and bureaus which have a sunset date that triggers their review, the Commission does not have a sunset date leaving the process for obtaining and regulating the tour guide certification program unchecked. AB 836 Page 13 3)Another consideration is the weight that is afforded to a license or certification endorsed by the State and what effect the creation of more licenses or certifications has on the diminution of the value of current licensees or certificate holders. 4)The author should consider whether the placement in the Business and Professions Code (BPC) is the proper section to place this proposed legislation. Considering that the California Tourism Marketing Act which created the California Travel and Tourism Commission is codified in the Government Code, the author may want to work with Legislative Counsel to assure that the language is correctly placed. Further, its placement within the BPC might be reconsidered since section 9400 sits amidst five repealed chapters. IMPLEMENTATION ISSUES Upon discussion with the Commission, two major concerns were raised. The first concern involves start-up costs related to the formation and administration of the tour guide examination. While the Commission seems well poised to assist in the formation of the examination, its concerns over cost and administration remain an issue. The Commission is established primarily as a marketing agency and has never been charged with examination administration. Additionally, as a marketing agency, the Commission has never had a regulatory function. While the subject matter is within the expertise of the Commission, this would be a departure from the Commission's core mission and would likely require restructuring of the organization from its current form. Considering this new regulatory scheme and the need for the development of a new examination and administration program, the author may consider a delayed implementation so that the AB 836 Page 14 infrastructure can be established prior to program initiation. SUGGESTED COMMITTEE AMENDMENTS On page 3, line 39, strike "or establishment" On page 6, line 1, strike "21" and insert "18" On page 6, line 7, insert "Successful completion of a program from an approved school satisfies this requirement." On page 8, line 17, strike "another" and insert "a" On page 8, line 17-19, strike "by any other government agency, or by another California health care professional licensing board." REGISTERED SUPPORT / OPPOSITION: Support Tour Guide Coalition of California (sponsor) AB 836 Page 15 Opposition None on file. Analysis Prepared by:Christian Jagusch / B. & P. / (916) 319-3301