BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1874


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          Date of Hearing:  April 20, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1874 (Wood) - As Introduced February 10, 2016


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          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:








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          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


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            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