BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 2024 (Bonilla) - Professional Fiduciaries.
Amended: As Introduced Policy Vote: BP&ED 8-0
Urgency: No Mandate: No
Hearing Date: June 30, 2014
Consultant: Mark McKenzie
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 2024 would authorize the Professional
Fiduciaries Bureau (PFB) to establish a system for the placement
of a professional fiduciary license into "retired" status, as
specified, and establish minimum qualifications for the
restoration of a license to active status. The bill would also
prohibit the renewal, restoration, or reinstatement of a license
that is not renewed within three years of expiration.
Fiscal Impact: One-time PFB costs, likely in the range of
$50,000 to $100,000 to develop and adopt regulations
(Professional Fiduciaries Fund). The Department of Consumer
Affairs (DCA) estimates that any costs to update regulations,
adding license status designations, and updating applications
would be absorbable.
Background: Existing law, the Professional Fiduciaries Act,
establishes the PFB to license and regulate non-family member
professional fiduciaries, including conservators, guardians,
trustees, and agents under durable power of attorney. The PFB
currently licenses 638 professional fiduciaries.
Proposed Law: AB 2024 would authorize the PFB to establish, by
regulation, a system for the placement of a professional
fiduciary license into "retired" status for those who are not
currently engaged in the active practice of a professional
fiduciary or activities that require licensure, as specified.
The PFB would be required to establish minimum qualifications to
place a license in retired status and to restore a license to
active status. The bill requires the PFB to set a fee, by
regulation, to designate a license as "retired" or "inactive"
and to reinstate such a license to active status. The bill
AB 2024 (Bonilla)
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would also prohibit the renewal, restoration, or reinstatement
of a license that is not renewed within three years of
expiration, and requires the cancellation of such a license upon
the expiration of the three-year period.
Related Legislation: AB 2741 (Bonilla) would extend the sunset
on the PFB from January 1, 2015 to January 1, 2019.
Staff Comments: This bill would require the PFB to develop and
adopt regulations to establish a system for the placement of a
professional fiduciary license into retired status, including
minimum qualifications for placing the license in retired
status, restoring the license from retired to active status, and
establishing fees to designate a license as retired or inactive
and to reinstate a license to active status. Staff estimates
that costs to promulgate the regulations would be in the range
of $50,000 to $100,000. Staff notes that the Professional
Fiduciaries Fund is projected to have a reserve balance of
$481,000 at the end of 2014-15, which is sufficient to support
the efforts of the bill. The bill is likely to result in some
minor increased fee revenue related to the new licensing
designation, potentially offset by lost fee revenues currently
paid by non-practicing fiduciaries who would rather pay an
annual renewal fee to keep their license active than allow it to
go into a delinquent status.