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 --