Senate Bill No. 1467

Introduced by Committee on Business, Professions and Economic Development (Senators Lieu (Chair), Berryhill, Block, Corbett, Galgiani, Hernandez, Hill, Padilla, Wyland, and Yee)

March 25, 2014

An act to amend Sections 5070, 5070.5, 5093, 5096, 5096.4, 6759, 7011.4, 7842, 7860, and 8538 of the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 1467, as introduced, Committee on Business, Professions and Economic Development. Professions and vocations.

(1) Under existing law, the California Board of Accountancy licenses and regulates accountants. Existing law prohibits a person from engaging in the practice of public accountancy in this state unless he or she holds either a valid permit issued by the board or a practice privilege, as specified. Existing law requires an applicant for registration to furnish satisfactory evidence that the applicant is entitled to registration.

This bill would authorize the board to collect, but not require, a valid electronic mail address at the time of application for, or renewal of, a certified public accountant license. The bill would provide that these electronic mail addresses shall not be considered public records and would prohibit these electronic mail addresses from being disclosed pursuant to specified provisions of law, unless required pursuant to a court order.

Existing law sets forth education, examination, and experience requirements for a certified public accountant license, and requires an applicant to show, to the satisfaction of the board, that he or she has one year of qualifying experience, including any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills. Existing law requires the experience to have been performed in accordance with applicable professional standards in order to qualify, and to be completed under the supervision or in the employ of a person licensed to engage in the practice of public accountancy, as specified.

This bill would authorize the board, by regulation, to allow experience in academia to satisfy the one-year requirement described above.

Existing law, until January 1, 2019, authorizes an individual whose principal place of business is not in this state and who has a valid and current license, certificate, or permit to practice public accountancy from another state to engage in the practice of public accountancy in this state under a practice privilege without obtaining a certificate or license, if certain conditions are met. Existing law subjects an individual who holds a practice privilege to certain requirements, including, among others, that the individual shall notify the board of any pending criminal charges, other than a minor traffic violation, in any jurisdiction.

This bill would instead subject an individual holding and exercising a practice privilege in this state to the requirements described above. The bill would also require the individual to report the criminal charges described above to the board in writing within 30 days of the date the individual has knowledge of those charges.

Existing law, until January 1, 2019, authorizes the board to administratively suspend an individual’s right to practice in this state under a practice privilege at any time by an order issued by the board or its executive officer, without prior notice or hearing, for the purpose of conducting a disciplinary investigation, proceeding, or inquiry concerning the representations made in the notice, the individual’s competence or qualifications to practice under practice privileges, failure to timely respond to a board inquiry or request for information or documents, or under other conditions and circumstances provided for by board regulation. Existing law, beginning January 1, 2019, additionally requires the board to consult the Public Company Accounting Oversight Board (PCAOB) and the United States Securities and Exchange Commission on an every six-month basis to identify out-of-state licensees who may have disqualifying conditions, or may be obliged to cease practice, and to disclose whether those out-of-state licensees are lawfully permitted to exercise the privilege. Existing law provides that disclosure of this information is not to be considered discipline.

This bill would instead require the board to consult with the PCAOB and the United States Securities and Exchange Commission as specified above until January 1, 2019, and would delete those provisions after that date.

This bill would make technical, nonsubstantive changes, and would delete an obsolete provision.

(2) The Professional Engineers Act provides for the regulation and licensure of professional engineers by the Board of Professional Engineers, Land Surveyors, and Geologists. Existing law requires an applicant for registration as a professional engineer, among other things, to furnish evidence of 6 years or more of qualifying experience in engineering work, as specified, and to successfully pass the second division of the licensure examination. Existing law authorizes the board to issue a certificate of registration as a professional engineer, without a written examination, to a person holding a certificate of registration issued by another state or country if the applicant’s qualifications meet the requirements of the act. For purposes of these provisions, the act requires equivalent second division examinations to be 8-hour written examinations prepared or administered by a state or territory, as specified.

This bill would delete the requirement that an equivalent second division examination be an 8-hour examination.

(3) Under the Contractors’ State License Law, the Contractors’ State License Board licenses and regulates contractors. Under existing law, there is within the board a separate enforcement division that is required to rigorously enforce the act. Existing law specifies that persons employed as enforcement representatives in this division, and designated by the Director of Consumer Affairs, are not peace officers and are not entitled to safety member retirement benefits.

This bill would make technical, nonsubstantive changes to these provision.

(4) Under the Geologist and Geophysicist Act, the Board for Professional Engineers, Land Surveyors, and Geologists registers and regulates professional geologists and professional geophysicists and certifies applicants in specialties in geology. The act requires an applicant seeking certification as a petroleum geologist to meet certain requirements including, among other things, having performed a minimum of 3 years of professional geological work under the supervision of a registered petroleum engineer.

This bill would delete the provisions relating to petroleum geologists described above. The bill would also make technical, nonsubstantive changes to one of these provisions.

(5) Existing law provides for the regulation of registered structural pest control companies by the Structural Pest Control Board. Existing law requires a registered structural pest control company to provide a specified written notice to the owner, or owner’s agent, and the tenant of the premises where pest control work is to be done. Existing law authorizes the notice to be given by first-class mail, posting in a conspicuous place on the real property, or personal mail.

This bill would also authorize the notice to be given by electronic mail.

(6) Existing constitutional provisions require that a statute that limits the right of access to meetings of public bodies or the writings of public officials and agencies be adopted with findings and declarations demonstrating the interest protected by that limitation and the need for protecting that interest.

This bill would make a legislative finding and declaration relating to the necessity of treating as confidential electronic addresses provided to the California Board of Accountancy in order to protect the privacy of those individuals applying for a certified public accountant license.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares that in order
to protect the privacy of those individuals applying for a certified
public accountant license, it is necessary that electronic addresses
provided to the California Board of Accountancy pursuant to
Sections 2 and 3 of this act be confidential.

SEC. 2.  

Section 5070 of the Business and Professions Code is
amended to read:

5070.  

begin insert (a) end insert begin insert   end insert Permits to engage in the practice of public
accountancy in this state shall be issued by the board only to
holders of the certificate of certified public accountant issued under
this chapter and to those partnerships, corporations, and other
persons who, upon application approved by the board, are
registered with the board under this chapter. Notwithstanding any
other begin delete provision of end delete law, the board may register an entity organized
and authorized to practice public accountancy under the laws of
another state for the purpose of allowing that entity to satisfy the
registration requirement set forth in Section 5096.12, begin delete provided
that end delete begin insert if end insert (1) the certified public accountants providing services in
California qualify for the practice privilege, and (2) the entity
satisfies all other requirements to register in this state, other than
its form of legal organization.

begin delete

All

end delete

begin insert (b) end insert begin insert   end insert begin insert All end insert applicants for registration shall furnish satisfactory
evidence that the applicant is entitled to registration and shall pay
the fee as provided in Article 8 (commencing with Section 5130).
Every partnership, corporation, and other person to whom a permit
is issued begin delete after December 31, 1962, end delete shall, in addition to any other
fee which may be payable, pay the initial permit fee provided in
Article 8 (commencing with Section 5130).

begin insert

(c) The board may collect, but shall not require, a valid
electronic address at the time of application for a certified public
accountant license. In the interest of protecting an applicant’s
privacy, the electronic address shall not be considered a public
record and shall not be disclosed pursuant to Section 27 or
pursuant to a request under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code), unless required pursuant to a
court order by a court of competent jurisdiction.

end insert begin delete

Each

end delete

begin insert (d) end insert begin insert   end insert begin insert Each end insert partnership, corporation, and other person issued a
permit by the board to practice as a certified public accountant or
as a public accountant shall be furnished with a suitable certificate
evidencing that registration.

SEC. 3.  

Section 5070.5 of the Business and Professions Code
is amended to read:

5070.5.  

(a)  begin insert (1) end insert begin insert   end insert A permit issued under this chapter to a certified
public accountant or a public accountant expires at 12 midnight
on the last day of the month of the legal birthday of the licensee
during the second year of a two-year term if not renewed.

begin delete

To

end delete

begin insert (2) end insert begin insert   end insert begin insert To end insert renew an unexpired permit, a permitholder shall, before
the time at which the permit would otherwise expire, apply for
renewal on a form prescribed by the board, pay the renewal fee
prescribed by this begin delete chapter end delete begin insert chapter, end insert and give evidence satisfactory
to the board that he or she has complied with the continuing
education provisions of this chapter.

begin insert

(3) The board may collect, but shall not require, a valid
electronic mail address on the renewal form described in
paragraph (1). In the interest of protecting an applicant’s privacy,
the electronic mail address shall not be considered a public record
and shall not be disclosed pursuant to Section 27 or pursuant to
a request under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), unless required pursuant to a court order by
a court of competent jurisdiction.

end insert

(b) A permit to practice as an accountancy partnership or an
accountancy corporation expires at 12 midnight on the last day of
the month in which the permit was initially issued during the
second year of a two-year term if not renewed. To renew an
unexpired permit, the permitholder shall, before the time at which
the permit would otherwise expire, apply for renewal on a form
prescribed by the board, pay the renewal fee prescribed by this
chapter, and provide evidence satisfactory to the board that the
accountancy partnership or accountancy corporation is in
compliance with this chapter.

SEC. 4.  

Section 5093 of the Business and Professions Code is
amended to read:

5093.  

(a) To qualify for the certified public accountant license,
an applicant who is applying under this section shall meet the
education, examination, and experience requirements specified in
subdivisions (b), (c), and (d), or otherwise prescribed pursuant to
this article. The board may adopt regulations as necessary to
implement this section.

(b) (1) An applicant for admission to the certified public
accountant examination under begin delete the provisions of end delete this section shall
present satisfactory evidence that the applicant has completed a
baccalaureate or higher degree conferred by a degree-granting
university, college, or other institution of learning accredited by
a regional or national accrediting agency included in a list of these
agencies published by the United States Secretary of Education
under the requirements of the Higher Education Act of 1965 as
amended (20 U.S.C. Sec. 1001 et seq.), or meeting, at a minimum,
the standards described in subdivision (c) of Section 5094. The
total educational program shall include a minimum of 24 semester
units in accounting subjects and 24 semester units in
business-related subjects. This evidence shall be provided at the
time of application for admission to the examination, except that
an applicant who applied, qualified, and sat for at least two subjects
of the examination for the certified public accountant license before
May 15, 2002, may provide this evidence at the time of application
for licensure.

(A) An applicant enrolled in a program at an institution as
described in this paragraph that grants conferral of a baccalaureate
degree upon completion of the 150 semester units required by
paragraph (2) of this subdivision may satisfy the requirements of
this paragraph if the applicant’s institution mails the applicant’s
official transcript or its equivalent together or separately with a
letter signed by the institution’s registrar, or its equivalent, directly
to the board pursuant to subdivision (c) of Section 5094. The letter
shall include all of the following:

(i) A statement that the applicant is enrolled and in good
standing in a program that will result in the conferral of a
baccalaureate degree upon completion of either a master’s degree
or the 150 semester units required by paragraph (2) of this
subdivision.

(ii) A statement that the applicant has completed all
requirements, including general education and elective
requirements, for a baccalaureate degree and the only reason the
college or university has yet to confer the degree is because the
applicant is enrolled in a program that confers a baccalaureate
degree upon completion of either a master’s degree or the 150
semester units required by paragraph (2) of this subdivision.

(iii) The date on which the applicant met all of the college’s or
university’s requirements for conferral of a baccalaureate degree.

(B) The total educational program for an applicant described in
subparagraph (A) shall include a minimum of 24 semester units
in accounting subjects and 24 semester units in business-related
subjects. This evidence shall be provided at the time of application
for admission to the examination, except that an applicant who
applied, qualified, and sat for at least two subjects of the
examination for the certified public accountant license before May
15, 2002, may provide this evidence at the time of application for
licensure.

(2) An applicant for issuance of the certified public accountant
license under begin delete the provisions of end delete this section shall present satisfactory
evidence that the applicant has completed at least 150 semester
units of college begin delete education end delete begin insert education, end insert including a baccalaureate or
higher degree conferred by a college or university, meeting, at a
minimum, the standards described in Section 5094, the total
educational program to include a minimum of 24 semester units
in accounting subjects, 24 semester units in business-related
subjects, and, after December 31, 2013, shall also include a
minimum of 10 units of ethics study consistent with the
requirements set forth in Section 5094.3 and 20 units of accounting
study consistent with the regulations promulgated under
subdivision (c) of Section 5094.6. This evidence shall be presented
at the time of application for the certified public accountant license.
Nothing in this paragraph shall be deemed inconsistent with Section
5094 or 5094.6. Nothing in this paragraph shall be construed to
be inconsistent with prevailing academic practice regarding the
completion of units.

(c) An applicant for the certified public accountant license shall
pass an examination prescribed by the board.

(d) begin insert   end insert begin insert (1) end insert  The applicant shall show, to the satisfaction of the board,
that the applicant has had one year of qualifying experience. This
experience may include providing any type of service or advice
involving the use of accounting, attest, compilation, management
advisory, financial advisory, tax, or consulting skills. begin delete To end delete

begin insert (2) end insert begin insert   end insert begin insert To end insert be qualifying under this section, experience shall have
been performed in accordance with applicable professional
standards. Experience in public accounting shall be completed
under the supervision or in the employ of a person licensed or
otherwise having comparable authority under the laws of any state
or country to engage in the practice of public accountancy.
Experience in private or governmental accounting or auditing shall
be completed under the supervision of an individual licensed by
a state to engage in the practice of public accountancy.

begin insert

(3) Notwithstanding paragraph (2), the board may, by
regulation, allow experience in academia to be qualifying under
this section.

end insert

(e) Applicants completing education at a college or university
located outside of this state, meeting, at a minimum, the standards
described in Section 5094, shall be deemed to meet the educational
requirements of this section if the board determines that the
education is substantially equivalent to the standards of education
specified under this chapter.

(f) An applicant who has successfully passed the examination
requirement specified under Section 5082 on or before December
31, 2013, may qualify for the certified public accountant license
without satisfying the 10 semester units of study set forth in Section
5094.3 or 20 semester units of accounting study consistent with
the regulations promulgated under Section 5094.6, if the applicant
completes all other requirements for the issuance of a license on
or before December 31, 2015.

SEC. 5.  

Section 5096 of the Business and Professions Code,
as amended by Section 3 of Chapter 319 of the Statutes of 2013,
is amended to read:

5096.  

(a) An individual whose principal place of business is
not in this state and who has a valid and current license, certificate,
or permit to practice public accountancy from another state may,
subject to the conditions and limitations in this article, engage in
the practice of public accountancy in this state under a practice
privilege without obtaining a certificate or license under this
chapter if the individual satisfies one of the following:

(1) The individual has continually practiced public accountancy
as a certified public accountant under a valid license issued by any
state for at least 4 of the last 10 years.

(2) The individual has a license, certificate, or permit from a
state that has been determined by the board to have education,
examination, and experience qualifications for licensure
substantially equivalent to this state’s qualifications under Section
5093.

(3) The individual possesses education, examination, and
experience qualifications for licensure that have been determined
by the board to be substantially equivalent to this state’s
qualifications under Section 5093.

(b) The board may designate states as substantially equivalent
under paragraph (2) of subdivision (a) and may accept individual
qualification evaluations or appraisals conducted by designated
entities, as satisfying the requirements of paragraph (3) of
subdivision (a).

(c) An individual who qualifies for the practice privilege under
this section may engage in the practice of public accountancy in
this state, and no notice, fee, or other requirement shall be imposed
on that individual by the board.

(d) An individual who qualifies for the practice privilege under
this section may perform the following services only through a
firm of certified public accountants that has obtained a registration
from the board pursuant to Section 5096.12:

(1) An audit or review of a financial statement for an entity
headquartered in California.

(2) A compilation of a financial statement when that person
expects, or reasonably might expect, that a third party will use the
financial statement and the compilation report does not disclose a
lack of independence for an entity headquartered in California.

(3) An examination of prospective financial information for an
entity headquartered in California.

(e) An individual who holds a practice privilege under this
article begin insert , and is exercising the practice privilege in California end insert :

(1) Is subject to the personal and subject matter jurisdiction and
disciplinary authority of the board and the courts of this state.

(2) Shall comply with the provisions of this chapter, board
regulations, and other laws, regulations, and professional standards
applicable to the practice of public accountancy by the licensees
of this state and to any other laws and regulations applicable to
individuals practicing under practice privileges in this begin delete state end delete begin insert state, end insert
except the individual is deemed, solely for the purpose of this
article, to have met the continuing education requirements and
ethics examination requirements of this state when the individual
has met the examination and continuing education requirements
of the state in which the individual holds the valid license,
certificate, or permit on which the substantial equivalency is based.

(3) Shall not provide public accountancy services in this state
from any office located in this state, except as an employee of a
firm registered in this state. This paragraph does not apply to public
accountancy services provided to a client at the client’s place of
business or residence.

(4) Is deemed to have appointed the regulatory agency of the
state that issued the individual’s certificate, license, or permit upon
which substantial equivalency is based as the individual’s agent
on whom notices, subpoenas, or other process may be served in
any action or proceeding by the board against the individual.

(5) Shall cooperate with any board investigation or inquiry and
shall timely respond to a board investigation, inquiry, request,
notice, demand, or subpoena for information or documents and
timely provide to the board the identified information and
documents.

(6) Shall cease exercising the practice privilege in this state if
the regulatory agency in the state in which the individual’s
certificate, license, or permit was issued takes disciplinary action
resulting in the suspension or revocation, including stayed
suspension, stayed revocation, or probation of the individual’s
certificate, license, or permit, or takes other disciplinary action
against the individual’s certificate, license, or permit that arises
from any of the following:

(A) Gross negligence, recklessness, or intentional wrongdoing
relating to the practice of public accountancy.

(B) Fraud or misappropriation of funds.

(C) Preparation, publication, or dissemination of false,
fraudulent, or materially incomplete or misleading financial
statements, reports, or information.

(7) Shall cease exercising the practice privilege in this state if
convicted in any jurisdiction of any crime involving dishonesty,
including, but not limited to, embezzlement, theft, misappropriation
of funds or property, or obtaining money, property, or other
valuable consideration by fraudulent means or false pretenses.

(8) Shall cease exercising the practice privilege if the United
States Securities and Exchange Commission or the Public Company
Accounting Oversight Board bars the individual from practicing
before them.

(9) Shall cease exercising the practice privilege if any
governmental body or agency suspends the right of the individual
to practice before the body or agency.

(10) Shall begin delete notify end delete begin insert report to end insert the board begin delete of end delete begin insert in writing end insert any pending
criminal charges, other than for a minor traffic violation, in any
jurisdiction begin insert within 30 days of the date the individual has knowledge
of those charges end insert .

(f) An individual who is required to cease practice pursuant to
paragraphs (6) to (9), inclusive, of subdivision (e) shall notify the
board within 15 calendar days, on a form prescribed by the board,
and shall not practice public accountancy in this state pursuant to
this section until he or she has received from the board written
permission to do so.

(g) An individual who fails to cease practice as required by
subdivision (e) or who fails to provide the notice required by
subdivision (f) shall be subject to the personal and subject matter
jurisdiction and disciplinary authority of the board as if the practice
privilege were a license and the individual were a licensee. An
individual in violation of subdivision (e) or (f) shall, for a minimum
of one year from the date the board learns there has been a violation
of subdivision (e) or (f), not practice in this state and shall not have
the possibility of reinstatement during that period. If the board
determines that the failure to cease practice or provide the notice
was intentional, that individual’s practice privilege shall be revoked
and there shall be no possibility of reinstatement for a minimum
of two years.

(h) The board shall require an individual who provides notice
to the board pursuant to subdivision (f) to cease the practice of
public accountancy in this state until the board provides the
individual with written permission to resume the practice of public
accountancy in this state.

(i) (1) An individual to whom, within the last seven years
immediately preceding the date on which he or she wishes to
practice in this state, any of the following criteria apply, shall notify
the board, on a form prescribed by the board, and shall not practice
public accountancy in this state pursuant to this section until the
board provides the individual with written permission to do so:

(A) He or she has been the subject of any final disciplinary
action by the licensing or disciplinary authority of any other
jurisdiction with respect to any professional license or has any
charges of professional misconduct pending against him or her in
any other jurisdiction.

(B) He or she has had his or her license in another jurisdiction
reinstated after a suspension or revocation of the license.

(C) He or she has been denied issuance or renewal of a
professional license or certificate in any other jurisdiction for any
reason other than an inadvertent administrative error.

(D) He or she has been convicted of a crime or is subject to
pending criminal charges in any jurisdiction other than a minor
traffic violation.

(E) He or she has otherwise acquired a disqualifying condition
as described in subdivision (a) of Section 5096.2.

(2) An individual who fails to cease practice as required by
subdivision (e) or who fails to provide the notice required by
paragraph (1) shall be subject to the personal and subject matter
jurisdiction and disciplinary authority of the board as if the practice
privilege were a license and the individual were a licensee. An
individual in violation of subdivision (e) or paragraph (1) shall,
for a minimum of one year from the date the board knows there
has been a violation of subdivision (e) or paragraph (1), not practice
in this state and shall not have the possibility of reinstatement
during that period. If the board determines that the failure to cease
practice or provide the notice was intentional, that individual shall
be prohibited from practicing in this state in the same manner as
if a licensee has his or her practice privilege revoked and there
shall be no possibility of reinstatement for a minimum of two years.

(j) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

SEC. 6.  

Section 5096.4 of the Business and Professions Code,
as added by Section 20 of Chapter 411 of the Statutes of 2012, is
amended to read:

5096.4.  

(a) The right of an individual to practice in this state
under a practice privilege may be administratively suspended at
any time by an order issued by the board or its executive officer,
without prior notice or hearing, for the purpose of conducting a
disciplinary investigation, proceeding, or inquiry concerning the
individual’s competence or qualifications to practice under practice
privileges, failure to timely respond to a board inquiry or request
for information or documents, or under other conditions and
circumstances provided for by board regulation. begin insert The board shall
consult the Public Company Accounting Oversight Board and the
United States Securities and Exchange Commission not less than
every six months to identify out-of-state licensees who may have
disqualifying conditions or who may be obliged to cease practice,
and shall disclose, pursuant to this subdivision, whether those
out-of-state licensees are lawfully permitted to exercise the
privilege. Disclosure of this information shall not be considered
discipline. end insert

(b) The administrative suspension order is immediately effective
when mailed to the individual’s address of record or agent for
notice and service as provided for in this article.

(c) The administrative suspension order shall contain the
following:

(1) The reason for the suspension.

(2) A statement that the individual has the right, within 30 days,
to appeal the administrative suspension order and request a hearing.

(3) A statement that any appeal hearing will be conducted under
the provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code) applicable to individuals who are
denied licensure, including the filing of a statement of issues by
the board setting forth the reasons for the administrative suspension
of practice privileges and specifying the statutes and rules with
which the individual must show compliance by producing proof
at the hearing and in addition any particular matters that have come
to the attention of the board and that would authorize the
administrative suspension, or the revocation of practice privileges.

(d) The burden is on the holder of the suspended practice
privilege to establish both qualification and fitness to practice
under practice privileges.

(e) The administrative suspension shall continue in effect until
terminated by an order of the board or the executive officer.

(f) Administrative suspension is not discipline and shall not
preclude any individual from applying for a license to practice
public accountancy in this state.

(g) Proceedings to appeal an administrative suspension order
may be combined or coordinated with proceedings for revocation
or discipline of a practice privilege.

(h) This section shall become operative on July 1, 2013.

(i) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

SEC. 7.  

Section 5096.4 of the Business and Professions Code,
as added by Section 21 of Chapter 411 of the Statutes of 2012, is
amended to read:

5096.4.  

(a) The right of an individual to practice in this state
under a practice privilege may be administratively suspended at
any time by an order issued by the board or its executive officer,
without prior notice or hearing, for the purpose of conducting a
disciplinary investigation, proceeding, or inquiry concerning the
representations made in the notice, the individual’s competence
or qualifications to practice under practice privileges, failure to
timely respond to a board inquiry or request for information or
documents, or under other conditions and circumstances provided
for by board regulation. begin delete The board shall consult the Public
Company Accounting Oversight Board and the Securities and
Exchange Commission on an every six-month basis to identify
out-of-state licensees who may have disqualifying conditions, or
may be obliged to cease practice, and shall disclose, pursuant to
this subdivision, whether those out-of-state licensees are lawfully
permitted to exercise the privilege. Disclosure of this information
shall not be considered discipline. end delete

(b) The administrative suspension order is immediately effective
when mailed to the individual’s address of record or agent for
notice and service as provided for in this article.

(c) The administrative suspension order shall contain the
following:

(1) The reason for the suspension.

(2) A statement that the individual has the right, within 30 days,
to appeal the administrative suspension order and request a hearing.

(3) A statement that any appeal hearing will be conducted under
begin delete the provisions of end delete the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code) applicable to individuals who are
denied licensure, including the filing of a statement of issues by
the board setting forth the reasons for the administrative suspension
of practice privileges and specifying the statutes and rules with
which the individual must show compliance by producing proof
at the hearing and in addition any particular matters that have come
to the attention of the board and that would authorize the
administrative suspension, or the denial of practice privileges.

(d) The burden is on the holder of the suspended practice
privilege to establish both qualification and fitness to practice
under practice privileges.

(e) The administrative suspension shall continue in effect until
terminated by an order of the board or the executive officer or
expiration of the practice privilege under administrative suspension.

(f) Administrative suspension is not discipline and shall not
preclude any individual from applying for a license to practice
public accountancy in this state or from applying for a new practice
privilege upon expiration of the one under administrative
suspension, except that the new practice privilege shall not be
effective until approved by the board.

(g) Notwithstanding any administrative suspension, a practice
privilege expires one year from the date of notice unless a shorter
period is set by board regulation.

(h) Proceedings to appeal an administrative suspension order
may be combined or coordinated with proceedings for denial or
discipline of a practice privilege.

(i) This section shall become operative on January 1, 2019.

SEC. 8.  

Section 6759 of the Business and Professions Code is
amended to read:

6759.  

The board, upon application therefor, on its prescribed
form, and the payment of the fee fixed by this chapter, may issue
a certificate of registration as a professional engineer, without
written examination, to any person holding a certificate of
registration issued to him or her by any state or country when the
applicant’s qualifications meet the requirements of this chapter
and rules established by the board. The board shall not require a
comity applicant to meet any requirement not required of California
applicants. For purposes of this section, equivalent second division
examinations shall be begin delete eight-hour end delete written examinations prepared
by or administered by a state or territory either by single or
combined branch at the level generally administered by the board
to persons who passed or were exempted from the first division
examination. Applicants who have passed an equivalent second
division combined branch or a single branch examination in a
branch not recognized for registration in California shall be
registered in the branch in which their experience and education
indicate the closest relationship.

SEC. 9.  

Section 7011.4 of the Business and Professions Code
is amended to read:

7011.4.  

(a) Notwithstanding Section 7011, there is in the
Contractors’ State License Board, a separate enforcement division
which shall rigorously enforce this chapter prohibiting all forms
of unlicensed activity.

(b) Persons employed as enforcement representatives begin delete in this
division end delete begin insert of the Contractors’ State License Board end insert and designated
by the Director of Consumer Affairs begin delete are not peace officers and are
not entitled to safety member retirement benefits. They do not
have the power of arrest. However, they may end delete begin insert shall have the
authority to end insert issue a written notice to appear in court pursuant to
Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2
of the Penal Code. begin insert An employee so designated is not a peace officer
and is not entitled to safety member retirement benefits as a result
of that designation. He or she does not have the power of arrest. end insert

SEC. 10.  

Section 7842 of the Business and Professions Code
is amended to read:

7842.  

An applicant for certification in a specialty in geology
shall meet all of the requirements of Section 7841 and, in addition,
his begin insert or her end insert seven years of professional geological work shall include
one of the following:

(a) A minimum of three years performed under the supervision
of a geologist certified in the specialty for which begin delete he end delete begin insert the applicant end insert
is seeking certification or under the supervision of a registered
civil engineer if the applicant is seeking certification as an
engineering begin delete geologist or under the supervision of a registered
petroleum engineer if the applicant is seeking certification as a
petroleum end delete geologist, except that prior to July 1, 1970, professional
geological work shall qualify under this subdivision if it is
performed under the supervision of a geologist qualified in the
specialty for which the applicant is seeking certification or under
the supervision of a registered civil engineer if the applicant is
seeking certification as an engineering begin delete geologist or under the
supervision of a registered petroleum engineer if the applicant is
seeking certification as a petroleum end delete geologist.

(b) A minimum of five years’ experience in responsible charge
of professional geological work in the specialty for which the
applicant is seeking certification.

SEC. 11.  

Section 7860 of the Business and Professions Code
is amended to read:

7860.  

(a) The board may, upon its own initiative or upon the
receipt of a complaint, investigate the actions of any professional
geologist begin delete , end delete begin insert or end insert geophysicist, and make findings thereon.

(b) By a majority vote, the board may publicly reprove, suspend
for a period not to exceed two years, or revoke the certificate of
any geologist or geophysicist registered hereunder, on any of the
following grounds:

(1) Conviction of a crime substantially related to the
qualifications, functions, or duties of a geologist or geophysicist.

(2) Misrepresentation, fraud, or deceit by a geologist or
geophysicist in his or her practice.

(3) Negligence or incompetence by a geologist or geophysicist
in his or her practice.

(4) Violation of any contract undertaken in the capacity of a
geologist or geophysicist.

(5) Fraud or deceit in obtaining a certificate to practice as a
geologist or geophysicist.

(c) By a majority vote, the board may publicly reprove, suspend
for a period not to exceed two years, or may revoke the certificate
of any geologist or geophysicist registered under this chapter, for
unprofessional conduct. Unprofessional conduct includes, but is
not limited to, any of the following:

(1) Aiding or abetting any person in a violation of this chapter
or any regulation adopted by the board pursuant to this chapter.

(2) Violating this chapter or any regulation adopted by the board
pursuant to this chapter.

(3) Conduct in the course of practice as a geologist or
geophysicist that violates professional standards adopted by the
board.

SEC. 12.  

Section 8538 of the Business and Professions Code
is amended to read:

8538.  

(a) A registered structural pest control company shall
provide the owner, or owner’s agent, and begin insert the end insert tenant begin insert , if any, end insert of the
premises for which the work is to be done with clear written notice
begin delete which end delete begin insert that end insert contains the following statements and information using
words with common and everyday meaning:

(1) The pest to be controlled.

(2) The pesticide or pesticides proposed to be used, and the
active ingredient or ingredients.

(3) “State law requires that you be given the following
information: CAUTION--PESTICIDES ARE TOXIC
CHEMICALS. Structural Pest Control Companies are registered
and regulated by the Structural Pest Control Board, and apply
pesticides begin delete which end delete begin insert that end insert are registered and approved for use by the
California Department of Pesticide Regulation and the United
States Environmental Protection Agency. Registration is granted
when the state finds that, based on existing scientific evidence,
there are no appreciable risks if proper use conditions are followed
or that the risks are outweighed by the benefits. The degree of risk
depends upon the degree of exposure, so exposure should be
minimized.”

“If within 24 hours following application you experience
symptoms similar to common seasonal illness comparable to the
flu, contact your physician or poison control center (telephone
number) and your pest control company immediately.” (This
statement shall be modified to include any other symptoms of
overexposure begin delete which end delete begin insert that end insert are not typical of influenza.)

“For further information, contact any of the following: Your
Pest Control Company (telephone number); for Health
Questions--the County Health Department (telephone number);
for Application Information--the County Agricultural
Commissioner (telephone number) and for Regulatory
Information--the Structural Pest Control Board (telephone number
and address).”

(4) If a contract for periodic pest control has been executed, the
frequency with which the treatment is to be done.

(b) In the case of Branch 1 applications, the notice prescribed
by subdivision (a) shall be provided at least 48 hours prior to
application unless fumigation follows inspection by less than 48
hours.

In the case of Branch 2 or Branch 3 registered company
applications, the notice prescribed by subdivision (a) shall be
provided no later than prior to application.

In either case, the notice shall be given to the owner, or owner’s
agent, and begin insert the end insert tenant, if there is a tenant, in at least one of the
following ways:

(1) First-class begin insert or electronic end insert mail.

(2) Posting in a conspicuous place on the real property.

(3) Personal delivery.

If the building is commercial or industrial, a notice shall be
posted in a conspicuous place, unless the owner or owner’s agent
objects, in addition to any other notification required by this
section.

The notice shall only be required to be provided at the time of
the initial treatment if a contract for periodic begin delete service end delete begin insert pest control end insert
has been executed. If the pesticide to be used is changed, another
notice shall begin delete be required to end delete be provided in the manner begin delete previously
set forth herein end delete begin insert described in this section end insert .

(c) Any person or licensee who, or registered company begin delete which end delete
begin insert that end insert , violates any provision of this section is guilty of a
misdemeanor and is punishable as set forth in Section 8553.