BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1874


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1874 (Wood)


          As Amended  June 14, 2016


          Majority vote


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          |ASSEMBLY:  |76-0  |(April 28,     |SENATE: |37-0  |(August 11,      |
          |           |      |2016)          |        |      |2016)            |
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          Original Committee Reference:  B. & P.


          SUMMARY:  Requires a licensed "qualifying manager" to be  
          physically present at the licensee's principal office or branch  
          office location for a minimum of nine days every three  
          consecutive calendar months, and requires that the hours be  
          documented and provided to the Structural Pest Control Board  
          (SPCB) upon request.


          The Senate amendments are non-substantive.  They combine the 72  
          hours required into nine days. 


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  









                                                                    AB 1874


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          Purpose.  This bill is sponsored by the Pest Control Operators  
          of California.  According to the author, this bill "will help  
          ensure that the companies performing structural pest control  
          will do so with adequate supervision."


          Background.  In California, a "registered company" is defined as  
          any business organization, such as a sole proprietorship or  
          corporation.  In order to provide structural pest control  
          services as a registered company, 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.  While the qualifying manager must "be available  
          to supervise and assist the company's employees," the phrase  
          "available to supervise and assist" is not defined. 


          The sponsor states 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, it is possible  
          to 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.


          Therefore, this bill seeks to impose a minimum physical presence  
          requirement on operator licensees.  The goal of the requirement  
          is to deter the practice of using the loophole to avoid having  
          to actually supervise.  This change 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 last year at its January 14,  
          2015 meeting.










                                                                    AB 1874


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          Analysis Prepared by:                                             
                          Vincent Chee / B. & P. / (916) 319-3301  FN:  
          0003745