AB 1262: Professional fiduciaries.

Existing law, the Professional Fiduciaries Act, until January 1, 2024, establishes the Professional Fiduciaries Bureau, under the supervision and control of the Director of Consumer Affairs, within the Department of Consumer Affairs, and requires the bureau to license and regulate professional fiduciaries, as defined. The act transfers the responsibilities and jurisdiction of the bureau to the Professional Fiduciaries Advisory Committee upon the repeal of the provisions establishing the bureau, and provides that the committee consists of 7 appointed members serving 4-year terms. The act authorizes a person to identify themself as a licensed professional fiduciary if they have been licensed by the bureau.

This bill would extend the repeal date of the provisions establishing the bureau to January 1, 2028, and would delete the provision providing for the transfer of the responsibilities and jurisdiction of the bureau to the committee. The bill, commencing January 1, 2027, would reduce one term of certain appointed members to 2 or 3 years, and, after the reduced term, would resume the 4-year terms for those appointments, as specified. The bill would specify that only a person who holds a current and active license from the bureau is authorized to identify themself as a licensed professional fiduciary. The bill would make it an infraction for a person to hold themself out as a professional fiduciary or a licensed professional fiduciary without being licensed. By creating a new crime, the bill would impose a state-mandated local program.

Existing law generally requires the bureau to maintain and keep confidential certain information in each licensees file, but requires the bureau to make a specified subset of the information available to the public and published on the internet. That subset of information includes whether the licensee has ever been removed for cause or has resigned as a conservator, guardian, trustee, personal representative of a decedents estate, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances. That subset of information that the bureau is required to make available to the public and published on the internet also includes the circumstances causing the removal or resignation and the case names, court locations, and case numbers associated with the removal or resignation.

This bill would remove the circumstances causing the removal or resignation and the associated case names, court locations, and case numbers from the subset of information that the bureau is required to make available to the public and published on the internet.

Existing law prohibits a license that is not renewed within 3 years following its expiration from being renewed, restored, or reinstated, and requires the license to be canceled immediately upon expiration of the 3-year period. Existing law also requires the bureau to deny an applicants application to place a license in retired status if the license is punitively restricted by the bureau.

This bill would authorize a canceled license to be reinstated if specified requirements are met, including fulfillment of all application requirements. The bill would authorize a person whose license has been revoked, surrendered, suspended, or otherwise disciplined to petition the bureau for reinstatement or reduction of penalty in accordance with specified requirements. The bill would require the director to rule on the petition and impose any terms and conditions the director reasonably deems appropriate. The bill would require the bureau to deny an application to place a license in retired status if the license is restricted by the bureau.

Existing law requires a licensee to file with the bureau, 60 days before the expiration of a license, an annual statement containing specified information regarding the licensee.

This bill would require a licensee to also notify the bureau in writing of their intent not to renew their license and submit a final annual statement demonstrating they are no longer subject to licensure, and would require the bureau to provide the licensee with any discrepancies between the final annual statement and the bureaus records. The bill would require a licensee to respond to any written inquiry relating to an investigation of a complaint against a licensee within 30 calendar days, and would make a license who does not provide true and accurate information subject to disciplinary action. The bill would specify that aiding or abetting an unlicensed person to evade the provisions of the act or taking other specified actions relating to unlicensed persons with intent to evade the provision of the act constitutes a cause for disciplinary action.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.