Amended in Assembly July 1, 2015

Amended in Assembly June 29, 2015

Amended in Senate April 21, 2015

Senate Bill No. 467

Introduced by Senator Hill

February 25, 2015

An act to amend Sections 201, 5000, begin delete and 5015.6 end delete begin insert 5015.6, 7000.5, 7011, and 7071.6 end insert of, begin delete and end delete to add Sections 312.2, 328, and 5100.5 to, begin insert and to repeal Section 7067.5 of, end insert the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 467, as amended, Hill. Professions and vocations.

Existing law provides for the licensure and regulation of various professions and vocations by boards, bureaus, commissions, divisions, and other agencies within the Department of Consumer Affairs. Existing law authorizes the department to levy a pro rata share of the department’s administrative expenses against any of these constituent agencies at the discretion of the Director of Consumer Affairs and with the approval of the Department of Finance.

This bill would eliminate the requirement that the levy described above be at the discretion of the Director of Consumer Affairs and with the approval of the Department of Finance, and would instead require the levy to be approved by the Legislature.

Existing law requires an agency within the department to investigate a consumer accusation or complaint against a licensee and, where appropriate, the agency is authorized to impose disciplinary action against a licensee. Under existing law, an agency within the department may refer a complaint to the Attorney General or Office of Administrative Hearings for further action.

This bill would require the Attorney General to submit a report to the department, the Governor, and the appropriate policy committees of the Legislature, on or before January 1, 2018, and on or before January 1 of each subsequent year, that includes specified information regarding the actions taken by the Attorney General pertaining to accusation matters relating to consumer complaints against a person whose profession or vocation is licensed by an agency within the department.

Existing law creates the Division of Investigation within the department and requires investigators who have the authority of peace officers to be in the division to investigate the laws administered by the various boards comprising the department or commencing directly or indirectly any criminal prosecution arising from any investigation conducted under these laws.

This bill would, in order to implement the Consumer Protection Enforcement Initiative of 2010, require the Director of Consumer Affairs, through the Division of Investigation, to implement “Complaint Prioritization Guidelines” for boards to utilize in prioritizing their complaint and investigative workloads and to determine the referral of complaints to the division and those that are retained by the health care boards for investigation.

Under existing law, the California Board of Accountancy within the department is responsible for the licensure and regulation of accountants and is required to designate an execute officer. Existing law repeals these provisions on January 1, 2016.

This bill would extend the repeal date to January 1, 2020.

Existing law authorizes the California Board of Accountancy, after notice and hearing, to revoke, suspend, or refuse to renew any permit or certificate, as specified, or to censure the holder of that permit or certificate for unprofessional conduct.

This bill would additionally authorize the board, after notice and hearing, to permanently restrict or limit the practice of a licensee or impose a probationary term or condition on a licence for unprofessional conduct. This bill would authorize a licensee to petition the board for reduction of penalty or reinstatement of the privilege, as specified, and would provide that failure to comply with any restriction or limitation imposed by the board is grounds for revocation of the license.

begin insert

Under existing law, the Contractors’ State License Law, the Contractors’ State License Board is responsible for the licensure and regulation of contractors and is required to appoint a registrar of contractors. Existing law repeals these provisions establishing the board and requiring it to appoint a registrar on January 1, 2016.

end insert begin insert

This bill would extend these repeal dates to January 1, 2020.

end insert begin insert

Existing law requires every applicant for an original license, the reactivation of an inactive license, or the reissuance or reinstatement of a revoked license to evidence financial solvency, as specified, and requires the registrar to deny the application of any applicant who fails to comply with that requirement. Existing law, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, requires the applicant or licensee to file or have on file a contractor’s bond in the sum of $12,500.

end insert begin insert

This bill would repeal that evidence of financial solvency requirement and would instead require that bond to be in the sum of $15,000.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 201 of the Business and Professions Code
is amended to read:

201.  

(a) (1) A charge for the estimated administrative expenses
of the department, not to exceed the available balance in any
appropriation for any one fiscal year, may be levied in advance on
a pro rata share basis against any of the boards, bureaus,
commissions, divisions, and agencies, with the approval of the
Legislature.

(2) The department shall submit a report of the accounting of
the pro rata calculation of administrative expenses to the
appropriate policy committees of the Legislature on or before July
1, 2015, and on or before July 1 of each subsequent year.

(b) The department shall conduct a one-time study of its current
system for prorating administrative expenses to determine if that
system is the most productive, efficient, and cost-effective manner
for the department and the agencies comprising the department.
The study shall include consideration of whether some of the
administrative services offered by the department should be
outsourced or charged on an as-needed basis and whether the
agencies should be permitted to elect not to receive and be charged
for certain administrative services. The department shall include
the findings in its report pursuant to paragraph (2) of subdivision
(a) that it is required to submit on or before July 1, 2015.

SEC. 2.  

Section 312.2 is added to the Business and Professions
Code, to read:

312.2.  

(a) The Attorney General shall submit a report to the
department, the Governor, and the appropriate policy committees
of the Legislature on or before January 1, 2018, and on or before
January 1 of each subsequent year that includes, at a minimum,
all of the following for the previous fiscal year for each constituent
entity within the department represented by the Licensing Section
and Health Quality Enforcement Section of the Office of the
Attorney General:

(1) The number of accusation matters referred to the Attorney
General.

(2) The number of accusation matters rejected for filing by the
Attorney General.

(3) The number of accusation matters for which further
investigation was requested by the Attorney General.

(4) The number of accusation matters for which further
investigation was received by the Attorney General.

(5) The number of accusations filed by each constituent entity.

(6) The number of accusations a constituent entity withdraws.

(7) The number of accusation matters adjudicated by the
Attorney General.

(b) The Attorney General shall also report all of the following
for accusation matters adjudicated within the previous fiscal year
for each constituent entity of the department represented by the
Licensing Section and Health Quality Enforcement Section:

(1) The average number of days from the Attorney General
receiving an accusation referral to when an accusation is filed by
the constituent entity.

(2) The average number of days to prepare an accusation for a
case that is rereferred to the Attorney General after further
investigation is received by the Attorney General from a constituent
entity or the Division of Investigation.

(3) The average number of days from an agency filing an
accusation to the Attorney General transmitting a stipulated
settlement to the constituent entity.

(4) The average number of days from an agency filing an
accusation to the Attorney General transmitting a default decision
to the constituent entity.

(5) The average number of days from an agency filing an
accusation to the Attorney General requesting a hearing date from
the Office of Administrative Hearings.

(6) The average number of days from the Attorney General’s
receipt of a hearing date from the Office of Administrative
Hearings to the commencement of a hearing.

(c) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

SEC. 3.  

Section 328 is added to the Business and Professions
Code, to read:

328.  

In order to implement the Consumer Protection
Enforcement Initiative of 2010, the director, through the Division
of Investigation, shall implement “Complaint Prioritization
Guidelines” for boards to utilize in prioritizing their respective
complaint and investigative workloads. The guidelines shall be
used to determine the referral of complaints to the division and
those that are retained by the health care boards for investigation.

SEC. 4.  

Section 5000 of the Business and Professions Code is
amended to read:

5000.  

(a) There is in the Department of Consumer Affairs the
California Board of Accountancy, which consists of 15 members,
7 of whom shall be licensees, and 8 of whom shall be public
members who shall not be licentiates of the board or registered by
the board. The board has the powers and duties conferred by this
chapter.

(b) The Governor shall appoint four of the public members, and
the seven licensee members as provided in this section. The Senate
Committee on Rules and the Speaker of the Assembly shall each
appoint two public members. In appointing the seven licensee
members, the Governor shall appoint individuals representing a
cross section of the accounting profession.

(c) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

(d) Notwithstanding any other provision of law, the repeal of
this section renders the board subject to review by the appropriate
policy committees of the Legislature. However, the review of the
board shall be limited to reports or studies specified in this chapter
and those issues identified by the appropriate policy committees
of the Legislature and the board regarding the implementation of
new licensing requirements.

SEC. 5.  

Section 5015.6 of the Business and Professions Code
is amended to read:

5015.6.  

The board may appoint a person exempt from civil
service who shall be designated as an executive officer and who
shall exercise the powers and perform the duties delegated by the
board and vested in him or her by this chapter.

This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

SEC. 6.  

Section 5100.5 is added to the Business and Professions
Code, to read:

5100.5.  

(a) After notice and hearing the board may, for
unprofessional conduct, permanently restrict or limit the practice
of a licensee or impose a probationary term or condition on a
license, which prohibits the licensee from performing or engaging
in any of the acts or services described in Section 5051.

(b) A licensee may petition the board pursuant to Section 5115
for reduction of penalty or reinstatement of the privilege to engage
in the service or act restricted or limited by the board.

(c) The authority or sanctions provided by this section are in
addition to any other civil, criminal, or administrative penalties or
sanctions provided by law, and do not supplant, but are cumulative
to, other disciplinary authority, penalties, or sanctions.

(d) Failure to comply with any restriction or limitation imposed
by the board pursuant to this section is grounds for revocation of
the license.

(e) For purposes of this section, both of the following shall
apply:

(1) “Unprofessional conduct” includes, but is not limited to,
those grounds for discipline or denial listed in Section 5100.

(2) “Permanently restrict or limit the practice of” includes, but
is not limited to, the prohibition on engaging in or performing any
attestation engagement, audits, or compilations.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 7000.5 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7000.5.  

(a) There is in the Department of Consumer Affairs
a Contractors’ State License Board, which consists of 15 members.

(b) Notwithstanding any other provision of law, the repeal of
this section renders the board subject to review by the appropriate
policy committees of the Legislature.

(c) This section shall remain in effect only until January 1, begin delete 2016, end delete
begin insert 2020, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2016, end delete begin insert 2020, end insert deletes or extends
that date.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 7011 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7011.  

(a) The board, by and with the approval of the director,
shall appoint a registrar of contractors and fix his or her
compensation.

(b) The registrar shall be the executive officer and secretary of
the board and shall carry out all of the administrative duties as
provided in this chapter and as delegated to him or her by the
board.

(c) For the purpose of administration of this chapter, there may
be appointed a deputy registrar, a chief reviewing and hearing
officer, and, subject to Section 159.5, other assistants and
subordinates as may be necessary.

(d) Appointments shall be made in accordance with the
provisions of civil service laws.

(e) This section shall remain in effect only until January 1, begin delete 2016, end delete
begin insert 2020, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2016, end delete begin insert 2020, end insert deletes or extends
that date.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 7067.5 of the end insert begin insert Business and Professions Code end insert
begin insert is repealed. end insert

begin delete

7067.5.  

Every applicant for an original license, or for the
reactivation of an inactive license, or for the reissuance or
reinstatement of a revoked license shall possess and every such
applicant, other than one applying under Section 7029 unless
required by the registrar, shall evidence financial solvency. The
registrar shall deny the application of any applicant who fails to
comply with this section. For purposes of this section financial
solvency shall mean that the applicant’s operating capital shall
exceed two thousand five hundred dollars ($2500).

The applicant shall provide answers to questions contained in a
standard form of questionnaire as required by the registrar relative
to his financial ability and condition and signed by the applicant
under penalty of perjury.

In any case in which further financial information would assist
the registrar in an investigation, the registrar may obtain such
information or may require any licensee or applicant under
investigation pursuant to this chapter to provide such additional
financial information as the registrar may deem necessary.

The financial information required by the registrar shall be
confidential and not a public record, but, where relevant, shall be
admissible as evidence in any administrative hearing or judicial
action or proceeding.

The registrar may destroy any financial information which has
been on file for a period of at least three years.

end delete

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 7071.6 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7071.6.  

(a) The board shall require as a condition precedent
to the issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file a contractor’s bond in the sum of begin delete twelve end delete begin insert fifteen end insert thousand
begin delete five hundred end delete dollars begin delete ($12,500). end delete begin insert ($15,000). end insert

(b) Excluding the claims brought by the beneficiaries specified
in subdivision (a) of Section 7071.5, the aggregate liability of a
surety on claims brought against a bond required by this section
shall not exceed the sum of seven thousand five hundred dollars
($7,500). The bond proceeds in excess of seven thousand five
hundred dollars ($7,500) shall be reserved exclusively for the
claims of the beneficiaries specified in subdivision (a) of Section
7071.5. However, nothing in this section shall be construed so as
to prevent any beneficiary specified in subdivision (a) of Section
7071.5 from claiming or recovering the full measure of the bond
required by this section.

(c) No bond shall be required of a holder of a license that has
been inactivated on the official records of the board during the
period the license is inactive.

(d) Notwithstanding any other begin delete provision of end delete law, as a condition
precedent to licensure, the board may require an applicant to post
a contractor’s bond in twice the amount required pursuant to
subdivision (a) until the time that the license is renewed, under the
following conditions:

(1) The applicant has either been convicted of a violation of
Section 7028 or has been cited pursuant to Section 7028.7.

(2) If the applicant has been cited pursuant to Section 7028.7,
the citation has been reduced to a final order of the registrar.

(3) The violation of Section 7028, or the basis for the citation
issued pursuant to Section 7028.7, constituted a substantial injury
to the public.