BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:            SB 1479         Hearing Date:    April 18,  
          2016
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          |Author:   |Committee on Business, Professions and Economic       |
          |          |Development                                           |
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          |Version:  |March 10, 2016                                        |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Mark Mendoza                                          |
          |:         |                                                      |
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                         Subject:  Business and professions


          SUMMARY:  Makes several non-controversial, minor, non-substantive or  
          technical changes to various provisions within the Business and  
          Professions Code relating to the non-health regulatory boards or  
          bureaus of the Department of Consumer Affairs.

          Existing law:
          
          1) Provides for the licensing and regulation of various  
             professions and businesses by some 26 Boards, 10 bureaus, two  
             committees, one program, and one commission within the  
             Department of Consumer Affairs (DCA) under various licensing  
             acts within the Business and Professions Code (BPC).

          2) Contains the following provisions relating to the California  
             Board of Accountancy (CBA):
          
             a)   Provides that an applicant for certified public  
               accountant (CPA) licensure is required to complete 10  
               semester units or 15 quarter units of ethics study with  
               specific terms in the course title.  (BPC § 5094.3 (d))
            
          3) Contains the following provisions relating to the California  
             Architects Board (CAB):

             a)   Provides that CAB may grant eligibility, based on an  







          SB 1479 (Committee on Business, Professions and Economic  
          Development)                Page 2 of ?
          
          
               eligibility point determined by the Additional Path to  
               Architectural Licensing Program, for a candidate to take  
               the examination for a license to practice architecture if  
               he or she is enrolled in an Additional Path to  
               Architectural Licensing program that integrates the  
               experience and examination components offered by a National  
               Architectural Accrediting Board-accredited degree program.   
               (BPC § 5550.2)

          4) Contains the following provisions relating to the Contractors  
             State License Board (CSLB):

             a)   Requires that an application for an original license,  
               for an additional classification, or for a change of  
               qualifier become void when:

          (1) The applicant or examinee for the applicant has failed to  
          appear for the scheduled qualifying examination and fails to  
          request and pay the fee for rescheduling within 90 days of  
          notification of failure to appear, or, after being rescheduled,  
          has failed to appear for a second examination.

          (2) The applicant or the examinee for the applicant has failed  
          to achieve a passing grade in the scheduled qualifying  
          examination, and fails to request and pay the fee for  
          rescheduling within 90 days of notification of failure to pass  
          the examination.  (BPC § 7074(a))

          5) Contains the following provisions relating to the Board for  
             Professional Engineers, Land Surveyors, and Geologists   
             (BPELSG):

             a)   Requires that an examination for registration be held at  
               the times and places within the state as the board  
               determine; provides that the scope of examinations and the  
               methods of procedure be prescribed by rule of the board.  
               (BPC § 7844)

          6) Contains the following provisions relating to the Governor's  
             Office of Business and Economic Development (GO-Biz):

             a)   Establishes the California Tourism Marketing Act.  
               (Government Code (GC) § 13995 et seq.) 









          SB 1479 (Committee on Business, Professions and Economic  
          Development)                Page 3 of ?
          
          
             b)   Makes various findings and declarations regarding the  
               importance of California's tourism industry, need for  
               marketing of the industry and importance in funding the  
               marketing of the industry, including: 

          (1) An industry-approved assessment provides a private-sector  
          financing mechanism that, in partnership with state funding,  
          will provide the amount of marketing necessary to increase  
          tourism marketing expenditures by California.

          (2) The goal of the assessments is to assess the least amount  
          per business, in the least intrusive manner, spread across the  
          greatest practical number of tourism industry segments.  (GC §  
          13995.1)

          This bill:

          1) Makes the following changes relating to the California Board  
             of Accountancy (CBA):
          
             a)   Provides flexibility to the courses that fall under the  
               ethics education requirement without expanding the  
               disciplines in which the education is earned.  

          2) Makes the following changes relating to California Architects  
             Board (CAB):
             
             a)   Clarifies the language of BPC§  5550.2 to allow students  
               enrolled in any program accepted by the National Council of  
               Architectural Registration Boards (NCARB) to receive early  
               eligibility to take the Architectural Registration  
               Examination.



          3) Makes the following changes relating to the Contractors State  
             License Board (CSLB):
          
             a)   Eliminates the two conditions in existing law that void  
               an application because of exam scheduling.

          4) Makes the following changes relating to the Board for  
             Professional Engineers, Land Surveyors, and Geologists   
             (BPELSG):








          SB 1479 (Committee on Business, Professions and Economic  
          Development)                Page 4 of ?
          
          

             a)   Authorizes the Board to make arrangements with a public  
               or private organization to conduct the examination and to  
               contract with a public or private organization for  
               materials or services related to the examination.

          5) Makes the following changes relating to the Governor's Office  
             of Business and Economic Development (GO-Biz):

             a)   Deletes the obsolete reference to "secretary" of the  
               California Business, Transportation and Housing Agency  
               (BT&H) and instead inserts the word "Director".

          
          FISCAL EFFECT:  Unknown.  This bill is keyed "fiscal" by  
          Legislative Counsel.   

          
          COMMENTS:
          
         1.Purpose.  This bill is one of two "committee bills" authored by  
            the Business, Professions, and Economic Development Committee  
            (Committee) and is intended to consolidate a number of  
            non-controversial provisions related to various regulatory  
            programs and professions governed by the BPC.  Consolidating  
            the provisions in one bill is designed to relieve the various  
            licensing boards, bureaus, professions and other regulatory  
            agencies from the necessity and burden of having separate  
            measures for a number of non-controversial revisions.

         Many of the provisions of this bill are minor, technical, and  
            updating changes, while other provisions are substantive  
            changes intended to improve the ability of various licensing  
            programs and other entities to efficiently and effectively  
            administer their respective laws.

         However, as a Committee bill, if controversy or opposition should  
            arise regarding any provision that cannot be resolved, then  
            that provision will be removed from the bill.  This will  
            eliminate the chance of placing any of the other provisions in  
            jeopardy.

         2.Background.  The following is background and reasons for the  
            more significant and substantive provisions in this measure:








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          Development)                Page 5 of ?
          
          

             a)   Board of Accountancy (CBA).  According to BPC § 5094.3,  
               an applicant for CPA license is required to complete 10  
               semester units or 15 quarter units of ethics study with  
               specific terms in the course title.  After January 1, 2017,  
               an applicant is required to complete a maximum of 7  
               semester units or 11 quarter units, in courses of ethics  
               study with specific terms in the course title and a minimum  
               of three semester units or four quarter units in courses  
               devoted to accounting ethics or accountants' professional  
               responsibilities.  

          As written, the requirement of specific terms in the course  
          title may be too restrictive for applicants and may be  
          invalidating courses that should qualify.  The CBA has received  
          additional feedback that the requirement of specific terms in  
          the course title may be too restrictive for applicants that  
          received their college education in any of the other 54  
          jurisdictions and/or received their college education  
          internationally.  In order to create flexibility and remove a  
          potential barrier to entry, this bill would provide added  
          flexibility to the courses which fall under the ethics education  
          requirement without expanding the disciplines in which the  
          education is earned.  This change will ensure that applicants  
          who have completed ethics education will meet the ethics  
          requirement. 

             b)   California Architects Board (CAB).  The current language  
               of BPC § 5550.2 references the obsolete term "Additional  
               Path to Architectural Licensing".  The nomenclature for  
               these programs has changed and accordingly the amendment is  
               needed to reflect the new terminology.  This measure  
               clarifies that students enrolled in any integrated degree  
               program accepted by the NCARB may be eligible to take the  
               Architectural Registration Examination early, thereby  
               improving the licensure process and enabling them to become  
               licensed and enter the workforce more quickly than the  
               traditional path.

          Currently, there are fourteen NCARB approved universities with  
          integrated degree programs, three of which are in California.   
          The three California universities are the University of Southern  
          California, the NewSchool of Architecture and Design, and  
          Woodbury University. 








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          Development)                Page 6 of ?
          
          

             c)   Contractors State License Board (CSLB).   The current  
               application for licensure states: "If you are required to  
               take an examination, subject to some limitation, you have  
               18 months after the approval of your application in which  
               to achieve a passing grade on the exam.  During that time  
               period, you may take the exam an unlimited number of times.  
                A $60 fee is required each time you reschedule an exam."  

          However, BPC § 7074 further provides eight conditions upon which  
          an application becomes void, two of which relate to test  
          scheduling.  The first is when an applicant does not reschedule  
          within 90 days of failing to appear at a scheduled exam; and the  
          second is when an applicant does not reschedule within 90 days  
          of failing an exam.

          In 2014, 196 applications were voided due to these two  
          provisions.

          This bill eliminates the two conditions in existing law that  
          void an application because of exam scheduling, since  
          computer-based testing makes it unnecessary.   Prior to computer  
          based testing, the Board only administered the exam at periodic  
          times throughout the year.  Now, CSLB tests every day and has  
          eight test centers throughout the state.  The Board has more  
          capacity for testing with the computer based system.  Applicants  
          can schedule an exam time, but also have the option of walking  
          into a testing center and be accommodated.  If an applicant has  
          an exam scheduled, but does not show, he or she is not taking a  
          spot from someone else who was waiting to take the exam.

             d)   Board for Professional Engineers, Land Surveyors, and  
               Geologists (BPELSG).  This bill would provide for  
               consistent operations among the BPELSG's licensing programs  
               by conforming the law relating to geologists and  
               geophysicists to those for professional engineers and land  
               surveyors.  The BPELSG currently purchases the licensing  
               examinations for geologists from National Association of  
               State Boards of Geology (ASBOG), the national organization  
               that develops the examinations.  However, the BPELSG must  
               still administer the examinations rather than contracting  
               with ASBOG to administer them.  The Professional Engineers  
               Act and the Professional Land Surveyors' Act contain  
               provisions (BPC § 6750(b), 6754, 8740, and 8745)  








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          Development)                Page 7 of ?
          
          
               authorizing the BPELSG to contract with an outside  
               organization to administer the licensing examinations for  
               engineers and land surveyors.  The BPELSG contracts with  
               The National Council of Examiners for Engineering and  
               Surveying (NCEES), the national organization that develops  
               the engineering and land surveying examinations, to  
               administer these examinations.
           
             e)   Governor's Office of Business and Economic Development  
               (GO-Biz). This bill deletes the obsolete reference to the  
               "Secretary" of BT&H and clarifies language to find and  
               declare that the mechanisms to fund generic promotions be  
               pursuant to the supervision and oversight of the Director  
               of the Governor's Office of Business and Economic  
               Development. 

          3. Arguments in Support.  The California Board of Accountancy  
             writes, "The CBA would like to thank you for including our  
             proposal to amend the CBA's ethics study education  
             requirements for Certified Public Accountant licensure to  
             provide a level of flexibility by changing the current course  
             title requirement to a subject requirement in SB 1479."
          

          SUPPORT AND OPPOSITION:
          
           Support:  

          The California Board of Accountancy 

           Opposition:  None on file as of April 12, 2016.


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