BILL ANALYSIS �
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|Hearing Date:April 28, 2014 |Bill No:SB |
| |1467 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: SB 1467Author:Business, Professions and
Economic Development Committee
As Introduced: March 25, 2014Fiscal: Yes
SUBJECT: Professions and vocations.
SUMMARY: Makes several non-controversial, minor, non-substantive or
technical changes to various provisions within the Business and
Professions Code (BPC) relating to the regulatory boards of the
Department of Consumer Affairs (DCA).
Existing law:
1)Provides for the licensing and regulation of various professions and
businesses by some
23 boards, 4 committees, 9 bureaus, and 1 commission within the DCA
under various licensing acts within the BPC.
2)Contains the following provisions relating to the California Board of
Accountancy (CBA):
a) Prohibits a person from engaging in the practice of public
accountancy in California unless he or she holds either a valid
certified public accountant (CPA) license issued by the CBA, or a
practice privilege, as specified. An applicant for registration
must furnish satisfactory evidence that the applicant is entitled
to registration. (BPC � 5070)
b) Establishes education, examination, and experience
requirements for a CPA license, and requires an applicant to show
that he or she has one year of qualifying experience. The law
requires the experience to have been performed in accordance with
applicable professional standards, and to be completed under the
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supervision or employ of a licensed CPA, as specified. (BPC �
5093)
c) Authorizes, until January 1, 2019, a CPA licensed in another
state to engage in the practice of public accountancy in
California under a practice privilege without obtaining a
California CPA license, as specified. CPAs who hold a practice
privilege must notify the CBA of any pending criminal charges,
other than a minor traffic violation, in any jurisdiction in
which they practice. (BPC � 5096)
d) Authorizes the CBA to suspend an individual's practice
privilege right by an order issued by the CBA or its executive
officer, without prior notice or hearing, in order to conduct a
disciplinary investigation concerning the individual's competence
or qualifications to practice under a practice privilege.
Requires the CBA to consult the Public Company Accounting
Oversight Board (PCAOB) and the United States Securities and
Exchange Commission on a six-month basis to identify out-of-state
licensees who may have disqualifying conditions, or may be
obliged to cease practice. (BPC � 5096.4)
3)Contains the following provisions relating to the Contractors State
License Board (CSLB):
a) Provides that persons employed as enforcement representatives
in the enforcement division within the CSLB, and designated by
the Director of DCA, are not peace officers and are not entitled
to safety member retirement benefits. (BPC � 7011.4)
4)Contains the following provisions relating to Board for Professional
Engineers, Land Surveyors and Geologists (BPELSG):
a) Provides for the BPELSG to issue an engineer's license to an
engineer licensed in another state or country without a written
examination if the applicant's qualification is equivalent to the
requirements of California law. Provides that an equivalent
second division examination must be an eight hour written
examination, as specified. (BPC � 6759)
b) Authorizes BPELSG to issue a certification as a petroleum
geologist to a geologist that meets certain requirements. (BPC �
7842)
5)Contains the following provisions relating to Structural Pest Control
Board:
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a) Requires a structural pest control company to provide an
owner, or tenant of a premises where pest control work is being
done with a written notice by mail, or by posting on the premises
a description of the pests to be controlled, the pesticides used,
consumer safety notices and other specified information. (BPC �
8538)
This bill:
1)Makes the following changes relating to the California Board of
Accountancy (CBA):
a) Authorizes the CBA to collect, but not require, a valid
electronic mail address from applicants or those renewing a
license (BPC �� 5070, 5070.5); provides that an electronic mail
address collected by the CBA shall be treated as confidential;
makes legislative findings and declarations that the electronic
addresses provided to the CBA are confidential.
b) Authorizes the CBA to, by regulation, allow experience in
academia to satisfy the one-year experience requirement for a CPA
license. (BPC � 5093)
c) Clarifies that a CPA who is licensed in another state and who
holds and exercises a practice privilege in California, must
notify the CBA in writing within 30 days of any pending criminal
charges. (BPC � 5096)
d) Corrects a drafting error by moving the requirement that the
CAB consult with the Public Company Accounting Oversight and the
United States Securities and Exchange Commission to practice
privilege requirements which are in effect only until January 1,
2019. (BPC � 5096.4)
2)Makes the following changes relating to the Contractors State License
Board (CSLB):
a) Revises the existing provisions establishing a CSLB
enforcement division and makes technical, non-substantive
changes. (BPC � 7011.4)
3)Makes the following changes relating to the Board for Professional
Engineers, Land Surveyors and Geologists (BPELSG):
a) Updates the second division examination requirement for
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professional engineers to delete the requirement that the
examination be an 8-hour examination. (BPC � 6759)
b) Removes references to the obsolete title of "petroleum
geologist." (BPC � 7842)
c) Corrects a drafting error. (BPC � 7860)
4)Makes the following changes relating to the Structural Pest Control
Board (SPCB):
a) Modifies the requirement for a pest control company to give a
written notice by mail, or by posting on the premises where pest
control work is to be done, to additionally authorize the notice
to be given by electronic mail. (BPC � 8538)
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1.Purpose. This bill is one of two "committee bills" authored by the
Business, Professions and Economic Development Committee (Committee)
and is intended to consolidate a number of non-controversial
provisions related to various regulatory programs and professions
governed by the BPC. Consolidating the provisions in one bill is
designed to relieve the various licensing boards, bureaus,
professions and other regulatory agencies from the necessity and
burden of having separate measures for a number of non-controversial
revisions.
Many of the provisions of this bill are minor, technical and updating
changes, while other provisions are substantive changes intended to
improve the ability of various licensing programs and other entities
to efficiently and effectively administer their respective laws.
However, as a Committee bill, if controversy or opposition should arise
regarding any provision that cannot be resolved, then that provision
will be removed from the bill. This will eliminate the chance of
placing any of the other provisions in jeopardy.
2.Background. The following is background and reasons for the more
significant and substantive provisions in this measure:
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a) Board of Accountancy. According to the CBA, the vast majority
of licensees have an email address and prefer email
communications. While the email addresses would never be used
for sensitive communications, it is anticipated that an email
list could be used for communicating important and timely
information regarding a wide range of topics that could include
urgent legislation and regulation issues, problems with computer
systems, or other unforeseen emergencies, according to CBA.
The CBA contends that allowing experience in academia to count
towards the general experience requirement for CPA licensure
would begin to bridge the gap between theory and practice by
allowing more accounting professors to obtain a CPA license.
Bringing practical experience into the classroom benefits
students, the accounting profession, and most importantly, the
consumers of California.
The bill adds the phrases "in writing" and "within 30 days of the
date the individual has knowledge of such charges" to BPC � 5096.
This change mirrors the wording and timeframe of BPC � 5063
which establishes reporting requirements for licensees. In
addition, 5096 (e) clarifies that it applies only to those
exercising the practice privilege in California. Adding the
timeframe will eliminate the possibility of practice privilege
holders putting off notifying the CBA of pending criminal charges
which will assist the CBA in protecting the consumers of
California. It will also avoid unnecessary reporting by those
who never intend to practice in California, according to CBA.
The CBA further requested amendments to correct a drafting error in
SB 1405 (De Leon, Chapter 411, Statutes of 2012) by moving the
requirement that the CBA consult with the Public Company
Accounting Oversight Board and the United States Securities and
Exchange Commission to the practice privilege requirements which
are in effect only until January 1, 2019. (BPC � 5096.4)
b) Contractors State License Board. According to the CSLB, in
2012 the Board sponsored legislation (AB 2554, Berryhill, Chapter
85, Statutes of 2012) which provided all CSLB enforcement
representatives with the authority to issue a notice to appear
for misdemeanor violations of the Contractors State License Law.
This proposal will further revise BPC � 7011.4, as recommended by
CSLB's legal counsel, to more clearly provide that all CSLB
enforcement representatives may issue a written notice to appear.
c) Board for Professional Engineers, Land Surveyors and
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Geologists (BPELSG). BPELSG proposes removing the reference to
an "eight-hour" examination in BPC � 6759, stating that since the
Board has changed how the examination is administered, the
reference to the timeframe is no longer relevant. Since October
2011, BPELSG has utilized computer-based testing centers to
administer its licensing examinations. Examinations are offered
at a multitude of testing sites throughout the nation. The Board
states that the main purpose in developing and administering
exams is to test the examinees knowledge and experience. The
time frame for administering the examination is not relevant,
according to BPELSG.
BPELSG states BPC � 7842 has existed since the inception of the
Geology Act in 1968, but there has never been a known consumer or
industry need to provide for a separate certification of
petroleum geology. A professional geologist license authorizes a
person to perform petroleum geology, so a separate certification
appears to be redundant. This bill would remove the reference to
that obsolete certification.
d) Structural Pest Control. According to the Pest Control
Operators of California, authorizing the notice of pest control
work to be delivered by electronic mail updates and modernizes
the law to recognize the way business is carried out.
3.Recommended Author's Amendments. Committee staff recommends the
following amendments as Author's amendments to the bill.
a) Amendment to clarify that the CBA may consult on a more
frequent timeframe with the Public Company Accounting Oversight
Board and the U.S. Securities and Exchange Commission to identify
out of state licensees who may have disqualifying conditions.
On page 13, line 33, strike out "not less than" and insert:
"at least once"
b) Amendment to remove a redundant provision. The provision
authorizing a consumer notice of pest control work to be
delivered by electronic mail is also contained in AB 1685
(Williams). Staff recommends removing this redundant provision
from this bill.
On page 18, strike out lines 25 through 40, inclusive, and
strike out pages 19 and 20.
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SUPPORT AND OPPOSITION:
Support: None received as of April 23, 2014
Opposition: None received as of April 23, 2014
Consultant:G. V. Ayers