BILL ANALYSIS �
AB 2741
Page 1
Date of Hearing: April 22, 2014
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Susan A. Bonilla, Chair
AB 2741 (Bonilla and Lieu) - As Amended: April 10, 2014
SUBJECT : Professional Fiduciaries Bureau.
SUMMARY : Extends the sunset date on the Professional
Fiduciaries Bureau (PFB) from January 1, 2015 to January 1,
2019.
EXISTING LAW :
1)Establishes PFB under the jurisdiction of the Department of
Consumer Affairs (DCA), and vests the duty of enforcing and
administering the Professional Fiduciary Law in the PFB chief.
(Business and Professions Code (BPC) Section 6510)
2)Establishes a Professional Fiduciaries Advisory Committee to
examine the functions and policies of PFB and make
recommendations with respect to policies, practices, and
regulations as may be deemed important and necessary by the
PFB chief. (BPC 6511)
3)Sunsets PFB on January 1, 2015, and transfers the
responsibilities and jurisdiction of PFB to the Professional
Fiduciaries Advisory Committee. (BPC 6510)
FISCAL EFFECT : None. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS :
1)Purpose of this bill . This bill simply extends the sunset
date for PFB by four years to January 1, 2019, and makes a
small technical correction. This bill is author-sponsored.
2)Author's statement . According to the author's office, "This
bill is necessary because if the Bureau is allowed to sunset,
the responsibilities and jurisdiction of the Bureau will be
transferred to the Professional Fiduciaries Advisory
Committee. PFB has a new chief who works in tandem with a
dedicated advisory committee; I look forward to their
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continued management of the profession."
3)Regulation of Professional Fiduciaries . The Professional
Fiduciaries Act (Act) was created in 2006 (SB 1550 Figueroa)
(Chapter 491, Statutes of 2006). PFB was established to
license and regulate non-family member Professional
Fiduciaries (PFs), including conservators, guardians,
trustees, and agents under durable power of attorney. The
Bureau currently licenses 638 PFs.
PFs provide critical services to seniors, disabled persons,
and minors. They manage matters for clients including daily
care, housing and medical needs, and also offer financial
management services ranging from basic bill paying to estate
and investment management.
In order to qualify for licensure, an applicant must be at
least 21 years old, be a US citizen or be legally admitted to
the United States, submit fingerprints and pass a background
check, pass an examination that includes national and state
components, and have either a baccalaureate degree, an
associate degree and three years' relevant work experience, or
at least five years' relevant work experience prior to 2012.
Requirements for licensure also include completing 30 hours of
approved pre-licensure education courses and earning 15 hours
of continuing education (CE) credit each year for renewal.
Licensees must comply with reporting requirements and abide by
the Professional Fiduciaries Code of Ethics.
The Bureau began operation on July 1, 2007, and is charged
with the following responsibilities:
a) Educating consumers about their rights;
b) Promoting legal and ethical standards of professional
conduct;
c) Investigating the background of applicants;
d) Administering licensing examinations;
e) Licensing PFs;
f) Investigating complaints from consumers; and,
AB 2741
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g) Taking disciplinary action and issuing citations.
The Bureau Chief is appointed by the Governor, subject to
Senate confirmation, and serves under the direction and
supervision of the Director of the Department of Consumer
Affairs (DCA) and at the pleasure of the Governor.
4)2014 Sunset Review Report . On March 17, 2014, the Senate
Business, Professions, and Economic Development Committee and
the Assembly Business, Professions and Consumer Protection
Committee held a joint sunset review hearing to hear testimony
from PFB as to its performance and the necessity for
continuing its existence by extending its sunset date.
The Sunset review report drafted by this Committee recommended
that PFB continue operations until the next review in 2019,
and in the meantime:
a) Consider reducing fees sufficient to avoid accumulating
a 24 month reserve if PFB cannot get budget authority to
hire additional staff;
b) Brief the Legislature on the potential pool of new PFs
and provide reasonable yearly targets for attracting new
licensees; and,
c) Discuss with the Legislature and DCA whether to maintain
PFB independently if its current staffing and licensing
levels do not change.
1)Related legislation . AB 2024 (Bonilla) of 2014 revises the
Professional Fiduciaries Act to permit PFB to establish a
"retired" and "inactive" status for licensees, provided that
licenses may not be renewed, restored or reinstated after
three years expiration, and clarifies the ability of PFB to
investigate the actions of any PF, even if that person has a
retired, inactive, canceled, or suspended license. That bill
will be heard in the Assembly Business, Professions and
Consumer Protection Committee on April 22, 2014.
AB 1859 (Maienschein) of 2014 permits PFs to form Licensed
Professional Fiduciary Corporations. That bill will be heard
in the Assembly Business, Professions and Consumer Protection
Committee on April 22, 2014.
AB 2741
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REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Sarah Huchel / B.,P. & C.P. / (916)
319-3301