BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 1244 (Lieu) - Structural Pest Control Board: sunset review.
Amended: April 24, 2014 Policy Vote: BP&ED 9-0
Urgency: No Mandate: No
Hearing Date: May 23, 2014 Consultant: Mark McKenzie
SUSPENSE FILE.
Bill Summary: SB 1244 would extend the sunset of the Structural
Pest Control Board (SPCB) and the term of its executive officer
until January 1, 2019. The bill would also make a number of
technical and clarifying changes to update the Structural Pest
Control Law.
Fiscal Impact: Projected expenditures of approximately $4.85
million annually (Structural Pest Control Fund, Structural Pest
Control Education and Enforcement Fund), supporting 29.9 PY
until January 1, 2019, partially offset by fee revenues of $4.24
million, based on the proposed 2014-15 budget.
Background: Existing law provides for the licensing and
regulation of structural pest control applicators, field
representatives and operators, and structural pest control
companies by the SPCB within the Department of Consumer Affairs
(DCA) and repeals the SPCB on January 1, 2015. Existing law
authorizes the SPCB to appoint an executive officer, subject to
the approval of the director of DCA and repeals this provision
on January 1, 2015.
In 2011, the SPCB established an Act Review Committee to review
the statutes governing structural pest control and assess where
changes may be appropriate to streamline processes and maintain
consumer protections. The Act Review Committee has held 18
public meetings statewide and solicited input from industry
stakeholders and interested parties, ultimately recommending
numerous statutory changes that reflect consensus.
Proposed Law: SB 1244 would extend the sunset of the Structural
Pest Control Board (SPCB) and the term of its executive officer
until January 1, 2019. The bill would also make a number of
technical and clarifying changes to update the Structural Pest
SB 1244 (Lieu)
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Control Law, based upon the recommendations of the Act Review
Committee, as noted above.
Related Legislation: This bill is one of six bills introduced
this session to extend the sunset on licensing boards within the
Department of Consumer Affairs - including SB 1242 (Lieu), SB
1243 (Lieu), SB 1245 (Lieu), SB 1246 (Lieu), and SB 1247 (Lieu).
Staff Comments: DCA indicates that costs associated with
extending the operations of the SPCB and its executive director,
and making numerous technical, clarifying, and non-substantive
changes to the Structural Pest Control Act would be minor and
absorbable and within existing resources. Staff notes that the
Structural Pest Control Fund, which supports the activities of
the SPCB, is in a declining condition. Expenditures from the
fund outpaced revenues by $593,000 in the current year and are
projected to outpace revenues by $547,000 in 2014-15. The
fund's reserve has declined from $1.37 million at the end of
2012-13, to $770,000 at the end of 2013-14, and is projected to
be $223,000 at the end of 2014-15. At the current pace of
decline, and without corrective action or additional revenues,
the fund will be insolvent sometime during the 2015-16 fiscal
year, or about three years prior to the sunset date specified in
the bill.
The SPCB intends to implement a pilot program in the current
year to test the implementation of a computer based testing
system for licensing examinations. The current cost to
administer each examination is $37.50, which exceeds the
statutory caps on examination fees. Staff notes that AB 1685
(Williams), currently pending on the Assembly Floor, would raise
the maximum fees that the SPCB could charge for examinations as
follows:
Operator examination fee: increase from $25 to $100
Field representative examination fee: increase from $15
to $75
Applicator examination fee: increase from $15 to $60
These increased fees are intended to provide sufficient
resources to implement computer based testing and allow the SPCB
to set the fees at a level sufficient to cover the reasonable
costs of administering licensing exams. It is unclear whether
the increased fee authority, if enacted, would provide
sufficient resources to address the operating deficiencies in
the Structural Pest Control Fund.
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