BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 2741 (Bonilla) - Professional Fiduciaries Bureau.
Amended: April 10, 2014 Policy Vote: BP&ED 8-0
Urgency: No Mandate: No
Hearing Date: August 4, 2014
Consultant: Mark McKenzie
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2741 would extend the sunset of the
Professional Fiduciaries Bureau (SFB) and the term of the Chief
of the SFB until January 1, 2019.
Fiscal Impact: Projected expenditures of approximately $596,000
annually (Professional Fiduciaries Fund), supporting 2.7
positions until January 1, 2019, offset by specified fee
revenues of $593,000, based on the 2014-15 budget.
Background: Existing law, the Professional Fiduciaries Act (the
Act), establishes the PFB to license and regulate non-family
member professional fiduciaries, including conservators,
guardians, trustees, and agents under durable power of attorney.
Professional fiduciaries commonly manage the affairs for
vulnerable populations, such as seniors, minors, and disabled
persons, and offer services associated with daily care, housing
and medical needs, and financial management. The PFB currently
licenses 638 professional fiduciaries.
Existing law repeals the PFB and term of its Chief on January 1,
2015. Upon repeal, the responsibilities and jurisdiction of the
PFB are transferred to the Professional Fiduciaries Advisory
Committee, as specified.
Proposed Law: AB 2741 would extend the sunset of the PFB and the
term of its Chief until January 1, 2019.
Related Legislation: AB 2024 (Bonilla), which is currently
pending on the Senate Floor, would authorize the 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
AB 2741 (Bonilla)
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active status. The bill would also prohibit the renewal,
restoration, or reinstatement of a license that is not renewed
within three years of expiration.
Staff Comments: In March of this year, the Senate Committee on
Business, Professions and Economic Development and the Assembly
Committee on Business, Professions, and Consumer Protection held
a joint sunset review hearing to review the performance of the
PFB and other regulatory boards and bureaus. The background
paper prepared by the Assembly Committee recommended that the
PFB continue operations until January 1, 2019 and in the
meantime consider reducing fees sufficient to avoid the
accumulation of a 24-month reserve, plan for attracting new
licensees, and discuss the viability of maintaining the PFB as
an independent entity. This bill reflects the recommendation
that the Bureau be continued for four years.
The Department of Consumer Affairs indicates that the provisions
of the bill that extend the sunset on the PFB are minor and
absorbable and within existing resources. Staff notes that,
according to the fund condition statement published with the
2014-15 proposed budget, the Professional Fiduciaries Fund,
which supports the activities of the PFB, is in relative balance
with a reserve of approximately 10 months ($481,000) at the end
of the budget year.