BILL ANALYSIS �
AB 2024
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Date of Hearing: April 22, 2014
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Susan A. Bonilla, Chair
AB 2024 (Bonilla) - As Introduced: February 20, 2014
SUBJECT : Professional fiduciaries.
SUMMARY : Updates the Professional Fiduciary Act to authorize
"retired" status for licensed fiduciaries and require
cancellation of a license that is not renewed within three
years. Specifically, this bill :
1)Prohibits a professional fiduciary from operating with a
retired or canceled license.
2)Prohibits a license from being renewed, restored, or
reinstated if it is not renewed within three years following
its expiration, and requires that the license be cancelled
immediately upon expiration of the three-year period.
3)Requires a licensee to complete 15 hours of approved
continuing education courses each year in order to restore a
license from retired status to active status.
4)Authorizes the Professional Fiduciaries Bureau (Bureau) to
establish regulations for a retired license status, as
specified, for a professional fiduciary who is not actively
engaged in the practice of a professional fiduciary or any
other activity that requires him or her to be licensed by the
Bureau.
5)Requires the Bureau to deny an applicant's application to
place a license in retired status if the license is subject to
an outstanding order of the Bureau, suspended, placed on
probation, revoked, or otherwise punitively restricted by the
Bureau, or subject to disciplinary action.
6)Affirms that the holder of a retired license is not required
to renew that license.
7)Requires the Bureau to establish minimum qualifications to
place a license in retired status, and for the restoration of
a license from retired status to active status. These minimum
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qualifications shall include, but are not limited to,
completion of continuing education hours, submission of a
statement, and payment of a fee, as specified.
8)Authorizes the Bureau to investigate the actions of a person
with a license that either restricts or prohibits the practice
of that person as a professional fiduciary, including, but not
limited to, a license that is retired, inactive, canceled, or
suspended.
9)Authorizes the Bureau to set by regulation fees to designate a
license status of "retired" or "inactive," and to reinstate a
license to "active" from "retired" or "inactive," at an amount
necessary to recover reasonable costs.
10)Makes other technical or clarifying changes.
EXISTING LAW :
1)Establishes the Bureau to license and regulate professional
fiduciaries under the Professional Fiduciaries Act. (Business
and Professions Code (BPC) Section 6510)
2)Defines "professional fiduciary" as a person who acts as a
conservator of the person, the estate, or person and estate,
or guardian of the estate, or person and estate, for two or
more individuals at the same time who are not related to the
professional fiduciary or to each other. This term also
includes a person who acts as a trustee, agent under a durable
power of attorney for health care, or agent under a durable
power of attorney for finances, for more than three
individuals, at the same time. (BPC 6501)
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of this bill . This bill updates the licensing
provisions in the Professional Fiduciaries Act to provide for
a retired license status, requires cancellation of a license
that is not renewed within three years, and makes other
conforming and clarifying changes. These changes are
consistent with provisions in other DCA boards' and bureaus'
licensing acts that allow licensees to select a "retired"
status that would be reflected in public records. This bill
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is author-sponsored.
2)Author's statement . According to the author's office, "This
bill is necessary in order to update the Professional
Fiduciaries Act and make the licensing laws more consistent
with other DCA boards and bureaus."
3)Professional fiduciaries . A professional fiduciary is a person
who acts as a conservator of the person or estate, or guardian
of the estate or person, for two or more individuals at the
same time who are not related to the professional fiduciary or
to each other. A professional fiduciary is also someone who
acts as a trustee, agent under a durable power of attorney for
health care, or agent under a durable power of attorney for
finances, for more than three individuals, at the same time.
4)Retired licenses . This bill would allow the Bureau to adopt
regulations establishing a retired license. This license
status would be for individuals not actively engaged in the
practice of a professional fiduciary. Several other DCA
boards and bureaus permit a similar license status, such as
the Board of Accountancy, California Architects Board, and the
Dental Board of California.
5)Related legislation . AB 1859 (Maienschein) of 2014, would
permit Professional Fiduciaries to organize as a professional
corporation under the Moscone-Knox Professional Corporation
Act. That bill will be heard in the Assembly Business,
Professions, and Consumer Protection Committee on April 29,
2014.
AB 2741 (Bonilla) of 2014, would extend the sunset date on the
Bureau from January 1, 2015 to January 1, 2019.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Sarah Huchel / B.,P. & C.P. / (916)
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319-3301