BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
                              Senator Jerry Hill, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 2529         Hearing Date:    June 20,  
          2016
           ----------------------------------------------------------------- 
          |Author:   |Linder                                                |
          |----------+------------------------------------------------------|
          |Version:  |April 14, 2016                                        |
           ----------------------------------------------------------------- 
           ---------------------------------------------------------------- 
          |Urgency:  |No                     |Fiscal:    |Yes              |
           ---------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant|Mark Mendoza                                          |
          |:         |                                                      |
           ----------------------------------------------------------------- 
          
                          Subject:  Structural pest control


          SUMMARY:  Provides that a company registered to perform structural pest  
          control that hires or employs unlicensed individuals to perform  
          work on contracts or service agreements, may do so for Branches  
          1, 2, or 3, as specified, and authorizes a county agricultural  
          commissioner to take disciplinary action against an employer or  
          employee for failing to wear personal protective equipment, as  
          specified. 

          Existing law:
          
          1)Establishes the Structural Pest Control Board (SPCB) under the  
            Department of Consumer Affairs (DCA) to regulate the practice  
            of structural pest control.  (Business and Professions Code  
            (BPC) §§ 8500 - 8697.4)





          2)Defines "structural pest control," with respect to household  
            pests and wood destroying pests or organisms, as performing or  
            offering to perform any of the following:  











          AB 2529 (Linder)                                        Page 2  
          of ?
          
          

             a)   Identification of infestations or infections.





             b)   The making of an inspection or inspections for the  
               purpose of identifying or attempting to identify  
               infestations or infections of household or other structures  
               by those pests or organisms.



             c)   The making of inspection reports, recommendations,  
               estimates, and bids, whether oral or written, with respect  
               to those infestations or infections.



             d)   The making of contracts, or the submitting of bids for,  
               or the performance of any work including the making of  
               structural repairs or replacements, or the use of  
               pesticides, or mechanical devices for the purpose of  
               eliminating, exterminating, controlling or preventing  
               infestations or infections of those pests, or organisms.  
               (BPC § 8505)





          3)Classifies, for the purpose of delimiting the type and  
            character of work authorized by the various branch licenses,  
            the practice of pest control into the following three  
            branches:  (BPC § 8560)





             a)   Branch 1: fumigation licenses, which authorize the  
               practice relating to the control of household and  
               wood-destroying pests or organisms by fumigation with  








          AB 2529 (Linder)                                        Page 3  
          of ?
          
          
               poisonous or lethal gases.


             b)   Branch 2: general pest license, which authorize the  
               practice relating to the control of household pests,  
               excluding fumigation with poisonous or lethal gases.


             c)   Branch 3: termite licenses, which authorizes the  
               practice relating to the control of wood-destroying pests  
               or organisms by the use of insecticides, or structural  
               repairs and corrections, excluding fumigation with  
               poisonous or lethal gases.





          4)Defines "registered company" as a sole proprietorship,  
            partnership, corporation, or other business organization that  
            is registered with the SPCB to engage in the practice of  
            structural pest control.  (BPC § 8506.1)  





          5)Authorizes a registered company to hire or employ individuals  
            who are not licensed by the SPCB to perform work on contracts  
            covering wood-destroying organisms only after an operator or  
            field representative has fully completed the negotiation or  
            signing of the contract covering a given job.  (BPC § 8506.1)



          6)Provides that the SPCB shall delegate its authority to the  
            Director of Pesticide Regulation for designating county  
            agricultural commissioners.  (BPC §§ 8616, 8616.4)



          7)Provides that the county agricultural commissioner shall be  
            the lead agency for inspections and routine investigations of  
            pesticide use by structural pest control licensees and  








          AB 2529 (Linder)                                        Page 4  
          of ?
          
          
            registered companies, and of persons engaged in unlicensed  
            structural pest control.  Further provides that when a matter  
            is referred to the SPCB for disciplinary action, the SPCB  
            shall be the lead agency and may require that the commissioner  
            assist in any investigation.  (BPC § 8616.5)





          8)Provides that, if an employee is found during an inspection or  
            investigation not wearing personal protective equipment  
            required by regulation, the commissioner shall have the option  
            to use discretion in citing an employer only if evidence of  
            all of the following is provided:  





             a)   The employer has a written training program, has  
               provided training to the employee, and has maintained a  
               record of training as required by regulation.





             b)   The employer provided personal protective equipment as  
               required by regulation, the equipment was available at the  
               site when the employee was handling the pesticide or  
               pesticides, and the equipment was properly maintained and  
               in good working order.





             c)   The employer is in compliance with regulations relating  
               to the workplace and supervision of employees.












          AB 2529 (Linder)                                        Page 5  
          of ?
          
          

             d)   The employer has implemented and adheres to a written  
               company policy of disciplinary action for employees who  
               violate company policy or state or local laws or  
               regulations.





             e)   The employer has no history of repeated violations of  
               this section. 


             (BPC § 8616.9)



          9)Authorizes the SPCB or county agricultural commissioners, when  
            acting pursuant to BPC § 8616.4, to suspend the right of a  
            structural pest control licensee or registered company to work  
            in a county for up to three working days or, for a licensee,  
            registered company, or an unlicensed individual acting as a  
            licensee, levy an administrative fine up to one thousand  
            dollars or direct the licensee to attend and pass a  
            SPCB-approved course of instruction at a cost not to exceed  
            the administrative fine, or both, as specified.  (BPC § 8617)


          This bill:

          1) Expands the authority of a registered company to hire or  
             employ individuals who are not licensed to practice  
             structural pest control to perform work on contracts covering  
             any Branch 1, 2, or 3, or any combination of branches, after  
             an operator or field representative has fully completed the  
             negotiation or signing of the contract covering a given job.   
             Provides that this provision not be construed to authorize an  
             unlicensed individual to perform work that requires a  
             license. 

          2) Authorizes a county agricultural commissioner that finds  
             during an inspection or investigation an employee who is not  
             wearing personal protective equipment required by label or  








          AB 2529 (Linder)                                        Page 6  
          of ?
          
          
             regulation, to refer the violation by the employer for  
             statewide disciplinary action by the SPCB, or suspend the  
             right of the employer to work in the county for up to three  
             working days.  If the commissioner does neither, the  
             commissioner may assess an administrative fine against both  
             the employer and the employee.  If the commissioner does not  
             take disciplinary action against an employer, the  
             commissioner may assess an administrative fine against the  
             employee only if the employer provides evidence of all of the  
             following: 

             a)   The employer has a written training program, has  
               provided training to the employee, and has maintained a  
               record of training as required by label or regulation;





             b)   The employer provided personal protective equipment  
               required by label or regulation, the equipment was  
               available at the site when the employee was handling the  
               pesticide or pesticides, and the equipment was properly  
               maintained and in good working order;





             c)   The employer is in compliance with regulations relating  
               to the workplace and supervision of employees;





             d)   The employer has documented implementation and adheres  
               to a written company policy of disciplinary action for  
               employees who violate company policy or state or local laws  
               or regulations; and,












          AB 2529 (Linder)                                        Page 7  
          of ?
          
          

             e)   The employer has not been disciplined or assessed an  
               administrative fine for a violation of the personal  
               protective equipment requirement for the previous two  
               years.



          3) Provides that a county agricultural commissioner may impose  
             an administrative fine assessed against an employer and shall  
             not be less than seven hundred dollars ($700) nor more than  
             five thousand dollars ($5,000). 





          4) Provides that a county agricultural commissioner may impose  
             an administrative fine assessed against an employee and shall  
             not be less than two hundred fifty dollars ($250) nor more  
             than five thousand dollars ($5,000). 





          5) Requires that when assessing an administrative fine, the SPCB  
             or commissioner consider the appropriateness of the amount of  
             the fine to the gravity of the violation, the good faith of  
             the licensee, and the history of prior violations.





          6) Provides that nothing in this section is intended to limit  
             the authority of the commissioner to take action against the  
             employee, including suspension of the employee's license or  
             referral of the violation for statewide disciplinary action  
             by the SPCB pursuant to BPC § 8620.


          
          FISCAL EFFECT:  This bill has been keyed "fiscal" by Legislative  








          AB 2529 (Linder)                                        Page 8  
          of ?
          
          
          Counsel.  According to the April 14, 2016 Assembly  
          Appropriations Committee analysis, this bill will result in a  
          minor increase in fine revenue to the SPCB due to potential  
          increase in fines.

          
          COMMENTS:
          
          1. Purpose.   The Pest Control Operators of California  are the  
             Sponsor of this measure.  According to the Author, this bill  
             "enables a Branch 1 and Branch 2 registered company to be  
             equally competitive with a Branch 3 registered company in the  
             use of those services of employees or independent  
             contractors, who otherwise are not required to be licensed,  
             to perform work in connection with a pest control contract or  
             service.  The proposed changes to BPC § 8616.9 would provide  
             authority and guidelines for county enforcement personnel to  
             take administrative action against the employee if it is  
             found that the employer has met certain conditions."
             
             The changes this bill seeks to make were 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 October 8,  
             2015 meeting.

          2. Structural Pest Control Board.  In 1936, the Structural Pest  
             Control Act (AB 2382, Chapter 823, Statutes of 1935)  
             established the first SPCB (Chapter 14 of the Business and  
             Professions Code was codified in 1941 and established the  
             current version of the SPCB.  On October 23, 2009, the SPCB  
             was transferred from the Department of Consumer Affairs to  
             the Department of Pesticide Regulation (DPR).  Effective July  
             1, 2013, under the Governor's 2011-2012 Reorganization Plan  
             (GRP) No. 2 and AB 1317 (Frazier Chapter 352, Statutes of  
             2013), the SPCB returned to the DCA.  

             SPCB issues three types of licenses for three different  
             practice areas (branches) of pest control.  The license types  
             are Applicator, Field Representative, and Operator.  The  
             branches are fumigation, general pest, and termite  
             (wood-destroying pests and organisms).  Under the fumigation  
             branch, the SPCB issues Field Representative Licenses and  
             Operator Licenses.  Under the general pest and termite  








          AB 2529 (Linder)                                        Page 9  
          of ?
          
          
             branches, the SPCB issues all three licenses. 

             Each branch covers a distinct area of pest control:
          
             Branch 1Fumigation - Whole structure treatment with lethal  
               gas.
             Branch 2General Pest - Ants, cockroaches, mice and rats.
             Branch 3Termite - Termites, wood boring beetles, dry rot, and  
               fungus. 
            
             As of April 2016, the licensee population included 7,113  
             Applicators, 10,876 Field Representatives, and 4,090  
             Operators.  Each license has its own scope of practice,  
             entry-level requirements, and education/examination  
             requirements, with some overlap. 
          
                 Applicator - An entry-level license category issued in  
               Branch 2 and 3 only.  The Applicator is an individual  
               licensed by the SPCB to apply a pesticide, or any other  
               medium to eliminate, exterminate, control or prevent  
               infestations or infections.  Applicators cannot inject  
               lethal gases used in fumigation. 

                 Field Representative - A full journey-level license.   
               This individual secures work, makes identifications, makes  
               inspections, submits bids, and contracts for work on behalf  
               of a registered company.

                 Operator - The highest level of license.  Depending on  
               the license category, the Operator must have at least two  
               years' or as many as four years' qualifying experience.   
               Only a licensed Operator may qualify a company for  
               registration by assuming responsibility for the company and  
               its employees as the company Qualifying Manager.

             Each company and branch office must register with the SPCB  
             (BPC § 8610).  As of April 2016, there were 2,982 Principal  
             Registrations and 440 Branch Office Registrations.

          1. Hiring Unlicensed Personnel for Non-Pest Control Work.   
             Existing law allows a registered company to hire personnel  
             who are unlicensed to practice structural pest control to  
             perform work on a pest control contract covering wood  
             destroying organisms.  The conditions state that the  








          AB 2529 (Linder)                                        Page 10  
          of ?
          
          
             unlicensed personnel may only start working after a licensed  
             operator or field representative signs the contract and the  
             unlicensed individual may not perform structural pest  
             control.  This exemption allowed for registered companies to  
             negotiate contracts that included more than just pest  
             control, such as repairs, and to utilize unlicensed  
             individuals to perform the non-pest control work. 

             However, contracts involving other household pests and  
             organisms may still require non-pest control work (e.g.  
             exterminating bed bugs).  Therefore, this bill seeks to  
             expand the exemption to include all contracts. 

          2. Disciplinary Action by County Agricultural Commissioners.   
             Current law provides that a county agricultural commissioner  
             shall be the lead agency for inspections and routine  
             investigations of pesticide use by structural pest control  
             licensees, registered companies, and unlicensed persons.   
             Further, it authorizes the agricultural commissioners to cite  
             an employer where an employee is discovered not wearing  
             personal protective equipment, so long as there are specified  
             circumstances indicating the employer is not at fault.  

          3. Arguments in Support.   The Structural Pest Control Board   
             writes that, "In 2010 the SPCB created the Act Review  
             Committee and directed it to review the Structural Pest  
             Control Act to recommend changes that would both strengthen  
             consumer protection and modernize the language.  The  
             amendments being proposed by AB 2529 are recommendations from  
             the Act Review Committee that the SPCB voted unanimously to  
             approve"
          

          SUPPORT AND OPPOSITION:
          
           Support:  

          Pest Control Operators of California (Sponsor)
          Newport Exterminating
          The Structural Pest Control Board
          Western Exterminator Company

           Opposition:  









          AB 2529 (Linder)                                        Page 11  
          of ?
          
          
          None on file as of June 14, 2016.

                                      -- END --