BILL ANALYSIS Ó AB 1874 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1874 (Wood) - As Introduced February 10, 2016 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill revises the definition of a "qualifying manager" to add a requirement that a licensed operator be physically present at the licensee's principal office or branch office location for a minimum of 72 hours every three consecutive calendar months, and to require that the hours be documented and provided to the Structural Pest Control Board (SPCB) upon request. FISCAL EFFECT: AB 1874 Page 2 Minor and absorbable costs to the Department of Consumer Affairs. COMMENTS: 1)Purpose. According to the author, this bill "adds a requirement that 'qualifying managers' be physically present in the offices of the companies they qualify for a minimum of 72 hours every three consecutive calendar months. The addition of this requirement will help ensure that the companies performing structural pest control will do so with adequate supervision." The change this bill seeks to make was approved by the SPCB's Act Review Committee, which reviews the structural pest control practice act and recommends changes to the full SPCB. The approval was adopted by the SPCB at its January 14, 2015 meeting. 2)Background. In order to provide structural pest control services, a business organization must register with the SPCB and designate a "qualifying manager." The qualifying manager must be a structural pest control operator, an individual who is licensed by the SPCB and is responsible for supervising the daily business of the organization. Currently, the qualifying manager must "be available to supervise and assist the company's employees." However, "be available to supervise and assist" is not defined. The sponsor, the Pest Control Operators of California, states AB 1874 Page 3 that the lack of a definition has resulted in a loophole where licensed operators are "renting" their licenses to a registered company that needs to designate a qualifying manager. Because there is no language specifying that a licensed operator has to be physically available, many simply charge a registered company a recurring fee to use their license number with minimal involvement in the company. According to the sponsors, bad actors are able to argue that they can satisfy the availability and supervision requirements over the phone or through video conferencing. This bill seeks to remedy this by imposing a minimum physical presence requirement on operator licensees of 72 hours in a three-consecutive-month period. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081