BILL ANALYSIS
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THIRD READING
Bill No: AB 20XXXX
Author: Evans (D)
Amended: 7/23/09 in Senate
Vote: 21
WITHOUT REFERENCE TO COMMITTEE
PRIOR VOTE NOT RELEVANT
SUBJECT : Budget Act of 2009: consumer affairs:
regulatory boards:
reorganization
SOURCE : Author
DIGEST : Senate Floor Amendments of 7/23/09 delete the
prior version of the bill expressing the intent of the
Legislature to enact statutory changes relating to the 2009
Budget Act.
This bill now makes the necessary statutory changes to
consolidate and reorganize various regulatory agencies
under the Department of Consumer Affairs.
ANALYSIS :
This bill:
1.Abolishes the Bureau of Naturopathic Medicine, and
creates a Naturopathic Medicine Committee within the
CONTINUED
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Osteopathic Medical Board of California (OMBC) to
administer the Naturopathic Doctors Act (Act).
A. Establishes a nine-member committee appointed by
the Governor to administer the Act, composed of three
naturopathic doctors, three physicians and surgeon,
and three public members.
B. Adds two naturopathic doctors to the OMBC.
2.Repeals these provisions on January 1, 2013.
3.Abolishes the Board for Geologists and Geophysicists
(BGG), and transfers the licensing and regulation of
geologists and geophysicists to the Board of Professional
Engineers and Land Surveyors (BPELS).
A. Provides that any reference to the BGG shall be
deemed to be a reference to the BPELS.
B. Provides that BPELS shall receive two personnel y
ears that were previously allocated to the BGG.
4.Transfers the Structural Pest Control Board from the
jurisdiction of the Department of Consumer Affairs (DCA)
to the jurisdiction of the Department of Pesticide
Regulation (DPR).
5.Consolidates the Bureau of Electronic and Appliance
Repair (BEAR) and the Bureau of Home Furnishings and
Thermal Insulation (BHFTI) into a single bureau names the
Bureau of Electronic and Appliance Repair, Home
Furnishings and Thermal Insulation.
6.Repeals the provisions establishing the Inspection and
Maintenance Review Committee (IMRC) on January 1, 2012.
Comments
1. May Revision and General Fund Proposals . On May 14,
2009, the Governor released the 2009-10 May Revision
General Fund Proposals. The May Revision made a number
of proposals to consolidate or eliminate certain boards
and bureaus under DCA to "further improve governmental
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efficiency." The Administration indicated that these
proposals, along with others, are intended to realign and
consolidate certain agencies as a "follow up on the work
of the California Performance Review (CPR) conducted in
Governor Schwarzenegger's second year in office."
However, it appears that the Administration's proposals
regarding specific boards and bureaus differ
significantly from the work of the CPR.
Under the Legislature's sunset review process of the last
14 years, the overriding concern in determining whether
to eliminate or consolidate a board or bureau is whether
any proposed change would improve the efficiency or
effectiveness of its operations, its policy-making
responsibility in setting standards for the profession to
ensure minimum competency of the licensee, or in the
enforcement actions against a licensee for any violations
of their practice act or the law. Typically, decisions
about consolidating or eliminating such boards and
bureaus are made through the sunset review process.
2. Senate Business, Professions and Economic Development
Committee (BP&ED Committee) Hearing on Governor's
Elimination, Consolidation and Reorganization Proposals .
This bill incorporates a number of changes recommended to
the Budget Conference Committee by the BP&ED Committee.
The recommendations reflect the actions taken by the
BP&ED Committee on the Governor's Elimination,
Consolidation and Reorganization Proposals at its hearing
on Monday, June 15, 2009.
As requested by the Conference Committee, the BP&ED
Committee considered a number of the specific
elimination, consolidation and reorganization proposals
made by the Governor, and also considered several
additional consolidation and reorganization proposals
identified by the BP&ED Committee's policy consultants.
In the hearing, the BP&ED Committee received testimony
from the Administration, the Departments, Boards and
Bureaus that would be affected by the proposed changes,
the Legislative Analyst's Office, the Center for Public
Interest Law, professional associations, members of the
regulated professions, and members of the public.
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While the BP&ED Committee rejected some of the Governor's
proposals, the BP&ED Committee approved a number of
specific changes to eliminate, consolidate and reorganize
specific boards and bureaus within the DCA which are
incorporated into this bill.
3. Specific Consolidations
A. Bureau of Naturopathic Medicine . This bill
eliminates the Bureau of Naturopathic Medicine and
move oversight responsibilities to the Osteopathic
Medical Board. The bill creates a nine-member
committee under the OMBC, adds two naturopathic
doctors to the OMBC, and repeals these provisions on
January 1, 2013. This reflects the recommendation
approved by the BP&ED Committee by a vote of 8-1.
The Governor's proposal was to eliminate the Bureau
of Naturopathic Medicine.
The Bureau of Naturopathic Medicine and the
Naturopathic Doctors Act was established in 2003 by
SB 907 (Burton), Chapter 485, Statutes of 2003.
Unlike other DCA regulatory programs in which only
the board is subject to a sunset date, the July 1,
2010 repeal date will sunset the entire Naturopathic
Doctors Act and thus eliminate licensure of
naturopathic doctors in California.
The OMBC was established by initiative statute in
1922 to assure the continued existence of D.O.s as a
licensed branch of the medical profession.
Subsequent initiative statutes have modified the
initial law, and it is clear that the Legislature has
considerable authority to amend the osteopathic law.
Unlike the Chiropractic Act (which was also enacted
by initiative but is not amendable), a 1962
initiative explicitly allows the Legislature great
leeway to amend the Osteopathic Act. In fact, the
only restriction on the Legislature's power is that
it may not fully repeal the Act unless the number of
licensed D.O.s falls below 40 (Osteopathic Initiative
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Act 3600-3). Short of that, the Legislature may
make any amendment to the act that it finds
appropriate.
Alternative Regulatory Model . The regulatory scheme
of this bill mirrors the recently-created Dental
Hygiene Committee under the jurisdiction of the
Dental Board of California (SB 853 [Perata], Chapter
31, Statutes of 2008). That committee carries out
the licensing and regulatory functions necessary to
regulate dental hygiene in California.
Relocating the oversight of naturopathic medical
doctors to the OMB would permit the continued
regulation of naturopathic medicine and generate
special fund savings through operational
efficiencies, equipment sharing, and reduced staff.
B. Board for Geologists and Geophysicists . The
Governor's proposal to consolidate the BGG with the
State Mining and Geology Board was approved by the
BP&ED Committee by a vote of 8-1. This bill instead
consolidates the BGG with the BPELS.
Similar to the BGG, the BPELS regulates a licensed
design profession within the DCA. Moving the
regulatory functions into the BPELS would likely
maintain continuity of operations and consistency in
the administering the licensing act.
The BGG licenses more than 7,600 geologists and
geophysicists, and has an annual budget of $1.4
million, and a staff of 9.6 authorized positions.
BPELS licenses and regulates engineers and land
surveyors. The board administers the Professional
Engineers Act and the Professional Land Surveyors
Act. BPELS has more than 114,000 licensees, and has
an annual budget of $9.5 million, and a staff of 53.9
authorized positions
In 1994, the Business and Professions Committee
initially reviewed whether the BGG should be merged
with any other entity including the BPELS. At that
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time, no changes were made to BGG. In 1996 and again
in 1999, the Sunset Review Committee and DCA reviewed
this Board and both DCA and the Sunset Review
Committee recommended BGG be continued as an
independent board and not be combined with any other
entity.
In 2004, the CPR recommendation was to combine BGG
with the Board of Mining and Geology and place the
new board under the Division of Land Management
within the proposed new Department of Natural
Resources. LAO and the CPR Commission rejected this
proposal. The Governor's Reorganization Plan to
convert this Board to a bureau was rejected by the
Legislature, and ultimately withdrawn by the
Administration.
This bill consolidates two related technical design
boards into a single board under DCA, which could
ultimately bring about efficiencies and budgetary
savings.
C. Structural Pest Control Board . This bill moves
the SPCB into the Department of Pesticide Regulation,
keeping the board and its licensing and regulatory
functions intact and maintaining the transparency and
public input of the board's regulatory functions.
This reflects the recommendation approved by the
BP&ED Committee by a vote of 8-0.
The SPCB licenses and regulates Structural Pest
Control Operators and companies. The Board's
objective is to license those persons that possess
the necessary qualifications to professionally
perform structural pest control work and to assist
consumers in resolving disputes with pest control
companies. The SPCB regulates more than 24,000
licensees, and has an annual budget of $4.9 million,
and a staff of 29.2 authorized positions.
DPR in the California Environmental Protection Agency
protects public health and the environment by
regulating all aspects of the sale and use of
pesticides and by promoting reduced-risk pest
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management strategies. DPR ensures compliance with
pesticide laws and regulations through its oversight
of County Agricultural Commissioners, who enforce
pesticide laws at the local level. The DPR has an
annual budget of $73.4 million, and a staff of 385
authorized positions.
The eradiation of pests and application of dangerous
chemicals and pesticides by pest control operators
and pest control companies presents significant
environmental, health and safety issues. Although
the regulation of business that inspects structures
for pests and infestations is a significant portion
of the activities of the SPCB, the application of
pesticides to eradicate pests is an underlying risk
to consumers and the public. It is appropriate that
efficiencies and the safety of the public might be
better protected by consolidating the functions of
the SPCB within the DPR.
D. Bureau of Electronic and Appliance Repair; Bureau
of Home Furnishings and Thermal Insulation. This
bill consolidates the BEAR and the BHFTI into a
single bureau within the Department of Consumer
Affairs. This reflects the recommendation approved
by the BP&ED Committee by a vote of 8-0.
The BHFTI regulates the manufacture, distribution,
and sale of upholstered furniture, bedding, and
thermal insulation products sold in California to
ensure they meet health, safety, and flammability
standards. The BHFTI regulates more than 23,000
licensees and has an annual budget of $4.9 million,
and a staff of 30.4 authorized positions. BEAR
registers and regulates all businesses engaged in
major home appliance and electronic equipment repair
by imposing specific obligations of ethical conduct,
honesty, and full and fair disclosure, providing
certain safeguards to consumers when they need repair
services or enter into service contract transactions,
and ridding the repair industry of unscrupulous
repair dealers and service contractors. The BEAR
regulates more than 13,000 licensees, and has an
annual budget of $2.4 million, and a staff of 14.5
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authorized positions.
For a number of years the BHFTI and the BEAR have
been closely aligned within DCA. The bureaus are
under the direction of a single bureau chief, and
staffs are generally located together and largely
share administrative and operational resources. It
is likely that further efficiencies may obtained by
consolidating both agencies into a single bureau
within the DCA.
Inspection and Maintenance Review Committee. This
bill establishes a sunset date of January 1, 2012 on
the IMRC. This reflects the recommendation approved
by the BP&ED Committee by a vote of 6-3. The
Governor's proposal was to eliminate the IMRC.
The IMRC is an advisory body established to review
and evaluate the vehicle inspection and maintenance
program (Smog Check) and to recommend program
improvements to the Administration and the
Legislature.
The IMRC consists of 13 members; nine are appointed
by the Governor, two by the Speaker of the Assembly,
and two by the Senate Rules Committee. The IMRC has
an annual budget of approximately $155,000 and a
staff of one authorized position. The members of the
IMRC receive no compensation, but are reimbursed by
DCA for their reasonable expenses in performing
committee duties. The State Air Resources Board and
DCA provide the IMRC with any necessary technical and
clerical support in its evaluation and study.
IMRC makes an annual assessment of the BAR's Smog
Check Program which is submitted to the Legislature
(Health and Safety Code 44021.)
In the 1982 legislation, the Legislature created the
IMRC which is charged with analyzing the effect of
the Smog Check Program on vehicle emissions and air
quality. In 2005, the Governor's CPR report, "Form
Follows Function," recommended elimination of the
IMRC stating that the Secretary of the new Department
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of Commerce and Consumer Protection (which the CPR
report recommended creating) can appoint an ad hoc
advisory committee as the need arises.
Establishing a two year sunset date on the IMRC is
intended to establish further accountability of the
IMRC to the Legislature, and provide further
opportunity for the Legislature to consider the
overall effectiveness of the committee's operations
and possible elimination.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
JJA:cm 7/23/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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