Existing law establishes the Structural Pest Control Board within the Department of Consumer Affairs, requires the board to license and regulate structural pest control operators, as specified, and authorizes the board to appoint a registrar to be the executive officer and secretary of the board. Existing law repeals those provisions on January 1, 2024, at which time the board is subject to review by the appropriate policy committees of the Legislature. Existing law makes a violation of provisions regulating structural pest control operators a misdemeanor.

This bill would extend the operation of the board and the authority to appoint a registrar to January 1, 2028. Because this bill would expand the application of an existing crime by extending the above-described misdemeanor, this bill would create a state-mandated local program.

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.

Existing law establishes the Structural Pest Control Board within the Department of Consumer Affairs, requires the board to license and regulate structural pest control operators, as specified, and authorizes the board to appoint a registrar to be the executive officer and secretary of the board. Existing law repeals those provisions on January 1, 2024, at which time the board is subject to review by the appropriate policy committees of the Legislature. Existing law makes a violation of provisions regulating structural pest control operators a misdemeanor.

This bill would extend the operation of the board and the authority to appoint a registrar to January 1, 2028. Because this bill would expand the application of an existing crime by extending the above-described misdemeanor, this bill would create a state-mandated local program.

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.

Existing law establishes the Structural Pest Control Board and the registrar of the Structural Pest Control Board, within the Department of Consumer Affairs, and requires the board to license and regulate structural pest control operators, as specified. specified, and authorizes the board to appoint a registrar to be the executive officer of the board. Existing law repeals those provisions on January 1, 2024, at which time the board is subject to review by the appropriate policy committees of the Legislature. Existing law makes a violation of provisions regulating structural pest control operators a misdemeanor. Existing law requires a registered company to notify the registrar in writing within 10 days when the licensed structural pest control operator who is designated as the qualifying manager for the company ceases to be connected with the company. Existing law suspends the registration of a company that fails to notify the registrar within that 10-day period, and requires the registration to be reinstated upon the filing of an affidavit with the registrar by a representative of the company, as provided.

This bill would instead require a registered company to notify the registrar in writing within 7 business days when the licensed operator ceases to be connected with the company. extend the operation of the board and the authority to appoint an executive officer to January 1, 2028. Because an affidavit is required for the reinstatement of the companys registration, and this bill would expand the application of an existing crime of perjury by modifying by extending the above-described reporting requirement, misdemeanor, this bill would create a state-mandated local program.

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.

Existing law establishes the Structural Pest Control Board and the registrar of the Structural Pest Control Board, within the Department of Consumer Affairs, and requires the board to license and regulate structural pest control operators, as specified. Existing law makes a violation of provisions regulating structural pest control operators a misdemeanor. Existing law requires a registered company to notify the registrar in writing within 10 days when the licensed structural pest control operator who is designated as the qualifying manager for the company ceases to be connected with the company. Existing law suspends the registration of a company that fails to notify the registrar within that 10-day period, and requires the registration to be reinstated upon the filing of an affidavit with the registrar by a representative of the company, as provided.

This bill would instead require a registered company to notify the registrar in writing within 7 business days when the licensed operator ceases to be connected with the company. Because an affidavit is required for the reinstatement of the companys registration, and this bill would expand the application of an existing crime of perjury by modifying the above-described reporting requirement, this bill would create a state-mandated local program.

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.

SENATE THIRD READING

STR Bill Id:SB 813

Author:(Roth)

As Amended Ver:April 27, 2023

Majority vote

SUMMARY

Extends the sunset date for the Structural Pest Control Board (SPCB) by four years to January 1, 2028.

Major Provisions

COMMENTS

Background. The SPCB was first established in 1935 within the Department of Professional and Vocational Standards to regulate and license the business of structural pest control. Currently, the SPCB is established within the Department of Consumer Affairs and also regulates inspections and repairs related to structural pest control. The SPCB's highest priority is the protection of the public through its licensing, regulatory, and disciplinary functions within the pest control industry.

The SPCB regulates three branches (practice areas) of pest control:

1. Branch 1 Fumigation: the practice relating to the control of household and wood-destroying pests or organisms by fumigation with poisonous or lethal gases.
2. Branch 2 General Pest: the practice relating to the control of household pests, excluding fumigation with poisonous or lethal gases.
3. Branch 3 Wood Destroying Pests and Organisms: the practice relating to the control of wood-destroying pests or organisms by the use of insecticides, or structural repairs and corrections, excluding fumigation with poisonous or lethal gases.

Within those branches, the SPCB issues three license types are:

1. Applicator: an entry-level license category issued for Branch 2 and 3 only. An Applicator is an individual licensed by the SPCB to apply a pesticide, or any other medium to eliminate, exterminate, control, or prevent infestations or infections. Applicators cannot inject lethal gases used in fumigation.
2. Field Representative: a full journey-level license issued in all three branches. A Field Representative secures work, makes identifications, makes inspections, submits bids, and contracts for work on behalf of a registered company.
3. Operator: the highest level of licensure issued in all three branches. Depending on the license category, an Operator must have at least two years, or as many as four years, qualifying experience. Only a licensed Operator may qualify a company for registration by assuming responsibility for the company and its employees as the company Qualifying Manager.

Administration and Funding. As of June 30, 2022, the SPCB had approximately 24,813 active licenses, 3,566 active Principle and Brach Office Registrations, 2,987 delinquent licensees, and 2,031 current but inactive licensees. On average, SPCB receives approximately 337 complaints per year since FY 2019-20. SPCB notes 86% of cases brought for accusations have been settled rather than resulting in a hearing.

SPCB is funded through regulatory fees and license renewal fees and does not receive funds from California's General Fund (GF). The SPCB administers three funds: 1) Structural Pest Control Fund, 2) Structural Pest Control Education and Enforcement Fund, and 3) Structural Pest Control Research Fund.

The SPCB's Fiscal Year (FY) 2022-23 fund condition projects a balance of $3,330,000, with 6 months in budget reserve. For the past four FYs, the SPCB's total program expenditures have increased by 11%. Personnel services expenditures increased by 21% and operating equipment and expenditures increased by 0.05%. SPCB attributes the personnel service increase to shifting an analyst from the education and enforcement fund to the support fund.

According to the Author

"In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the Board. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year."

Arguments in Support

The Structural Pest Control Board writes in support:

In October 2022, the Board adopted a Strategic Plan to guide its efforts through 2028. The plan encompasses five goals which target Licensing, Examinations, Continuing Education, Enforcement, Policy, Outreach, and Organizational Effectiveness. In the next few years, the Board looks forward to increasing positive and proactive relationships with industry and partner agencies, aligning policy with federal core standards, attaining a sustainable revenue structure, and leveraging new technology to streamline processes.

[This bill] will extend the operations of our Board until January 2028, providing us an opportunity to continue our mission and achieve these goals. For these reasons, the Structural Pest Control Board would like to offer its full support for [this bill].

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Appropriations Committee, ongoing costs of approximately $7.4 million annually (Structural Pest Control Fund) to support the continued operation of the SPCB's licensing and enforcement activities until 2028. The SPCB is funded through regulatory fees and license fees and is independent of the State General Fund.

VOTES

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ASM BUSINESS AND PROFESSIONS: 19-0-0

YES: Berman, Flora, Alanis, Aguiar-Curry, Bains, Bonta, Chen, Dixon, Gipson, Grayson, Irwin, Jackson, Lee, Lowenthal, McCarty, McKinnor, Stephanie Nguyen, Joe Patterson, Ting

ASM APPROPRIATIONS: 16-0-0

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Soria, Weber, Wilson

UPDATED

VERSION: April 27, 2023

CONSULTANT: Vincent Chee / B. & P. / (916) 319-3301 FN: 0001438

Date of Hearing: August 16, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

SBPCA Bill Id:SB 813

Author:(Roth) – As Amended Ver:April 27, 2023

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill extends the sunset date for the Structural Pest Control Board (SPCB) by four years, to January 1, 2028.

FISCAL EFFECT:

Ongoing costs of approximately $7.4 million annually (Structural Pest Control Fund) to support the continued operation of the SPCB’s licensing and enforcement activities until 2028. The SPCB is funded through regulatory fees and license fees and is independent of the State General Fund.

COMMENTS:

1. Purpose. This is the sunset extension bill for the SPCB, authored by the Chair of the Senate Committee on Business, Professions, and Economic Development as part of the committee’s review of the authorities and activities of the boards and bureaus under the Department of Consumer Affairs (DCA). According to the author:

In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the [SPCB]. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.

1. Background. Existing law established the SPCB within the Department of Consumer Affairs for the licensing and regulation of structural pest control applicators, field representatives and operators, and structural pest control companies, and repeals authorization for operation of the SPCB on January 1, 2024. The SPCB issues three types of licenses for three different practice areas (branches) of pest control: applicator, field representative, and operator. Each license has its own scope of practice, entry-level requirements, and education and examination requirements, with some overlap.

The Structural Pest Control Fund is the primary fund for the board, accounting for approximately 75% of the board's annual budget. Typically, boards and bureaus under DCA maintain a minimum reserve level of three to six months to cover unanticipated costs, such as litigation. For fiscal year 2022-2023, the SPCB anticipates a six month budget reserve balance of six months, approximately $3.3 million.

1. Related Legislation. This bill is one of eight sunset review bills moving through the legislative process this session. SBs 812, 814, and 815, also authored by Senator Roth, are pending in this committee. ABs 1262 and 1263, authored by the Assembly Business and Professions Committee, and AB 1257 and 1264, authored by Assemblymember Berman, Chair of the Assembly Business and Professions Committee, are pending in the Senate Appropriations Committee.
2. Prior Legislation. SB 1481 (Hill), Chapter 572, Statutes of 2018, extended the sunset date of the SPCB, from January 1, 2019, to January 1, 2023, and made numerous changes to the structural pest control licensing laws. The SPCB was subsequently extended one more year, to January 1, 2024, by SB 607 (Min), Chapter 607, Statutes of 2021, in order to adjust the sunset review schedules interrupted during the COVID-19 pandemic.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: July 11, 2023

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Marc Berman, Chair

SBPCA Bill Id:SB 813

Author:(Roth) – As Amended Ver:April 27, 2023

SENATE VOTE: 40-0

SUBJECT: Structural Pest Control Board

SUMMARY: Extends the sunset date for the Structural Pest Control Board (SPCB) by four years to January 1, 2028.

EXISTING LAW:

1. Licenses and regulates structural pest control applicators, field representatives, operators, and structural pest control companies, and establishes the SPCB within the Department of Consumer Affairs to administer and enforce the licensing program until January 1, 2024. (Business and Professions Code (BPC) §§ 8500-8697.4)
2. Defines, for purposes of licensure, “structural pest control” and “pest control,” with respect to household pests and wood-destroying pests or organisms, or other pests that may invade households or other structures, including railroad cars, ships, docks, trucks, airplanes, or the contents thereof, the engaging in, offering to engage in, advertising for, soliciting, or the performance of, any of the following:
   1. Identification of infestations or infections. (BPC § 8505(a)(1))
   2. The making of an inspection or inspections for the purpose of identifying or attempting to identify infestations or infections of household or other structures by those pests or organisms. (BPC § 8505(a)(2))
   3. The making of inspection reports, recommendations, estimates, and bids, whether oral or written, with respect to those infestations or infections. (BPC § 8505(a)(3))
   4. The making of contracts, or the submitting of bids for, or the performance of any work including the making of structural repairs or replacements, or the use of pesticides, or mechanical devices for the purpose of eliminating, exterminating, controlling, or preventing infestations or infections of those pests, or organisms. (BPC § 8505(a)(4))

FISCAL EFFECT: According to the Senate Appropriations Committee, the 2023-24 Governor’s Budget provides approximately $7.4 million (Structural Pest Control Fund) and 30.9 positions to support the continued operation of the SPCB’s licensing and enforcement activities.

COMMENTS:

Purpose. This bill is sponsored by the author. According to the author, “In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the Board. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.”

Background. The SPCB was first established in 1935 within the Department of Professional and Vocational Standards to regulate and license the business of structural pest control. Currently, the SPCB is established within the Department of Consumer Affairs and also regulates inspections and repairs related to structural pest control. The SPCB’s highest priority is the protection of the public through its licensing, regulatory, and disciplinary functions within the pest control industry.

The SPCB regulates three branches (practice areas) of pest control:

• Branch 1 Fumigation: the practice relating to the control of household and wood-destroying pests or organisms by fumigation with poisonous or lethal gases.
• Branch 2 General Pest: the practice relating to the control of household pests, excluding fumigation with poisonous or lethal gases.
• Branch 3 Wood Destroying Pests and Organisms: the practice relating to the control of wood-destroying pests or organisms by the use of insecticides, or structural repairs and corrections, excluding fumigation with poisonous or lethal gases.

Within those branches, the SPCB issues three license types are:

• Applicator: an entry-level license category issued for Branch 2 and 3 only. An Applicator is an individual licensed by the SPCB to apply a pesticide, or any other medium to eliminate, exterminate, control, or prevent infestations or infections. Applicators cannot inject lethal gases used in fumigation.
• Field Representative: a full journey-level license issued in all three branches. A Field Representative secures work, makes identifications, makes inspections, submits bids, and contracts for work on behalf of a registered company.
• Operator: the highest level of licensure issued in all three branches. Depending on the license category, an Operator must have at least two years, or as many as four years, qualifying experience. Only a licensed Operator may qualify a company for registration by assuming responsibility for the company and its employees as the company Qualifying Manager.

Administration and Funding. As of June 30, 2022, the SPCB had approximately 24,813 active licenses, 3,566 active Principle and Brach Office Registrations, 2,987 delinquent licensees, and 2,031 current but inactive licensees. On average, SPCB receives approximately 337 complaints per year since FY 2019-20. SPCB notes 86% of cases brought for accusations have been settled rather than resulting in a hearing.

SPCB is funded through regulatory fees and license renewal fees and does not receive funds from California’s General Fund (GF). The SPCB administers three funds: (1) Structural Pest Control Fund, (2) Structural Pest Control Education and Enforcement Fund, and (3) Structural Pest Control Research Fund.

The SPCB’s Fiscal Year (FY) 2022-23 fund condition projects a balance of $3,330,000, with 6 months in budget reserve. For the past four FYs, the SPCB’s total program expenditures have increased by 11%. Personnel services expenditures increased by 21% and operating equipment and expenditures increased by 0.05%. SPCB attributes the personnel service increase to shifting an analyst from the education and enforcement fund to the support fund.

Current Related Legislation. AB 1257 (Berman), which is pending in the Senate, is the sunset review bill for the Dental Hygiene Board of California, extends the board until January 1, 2028, and makes other changes raised during sunset review.

AB 1262 (Business and Professions Committee), which is pending in the Senate, is the sunset review bill for the Professional Fiduciaries Bureau, extends the bureau until January 1, 2028, and makes other changes raised during sunset review.

AB 1263 (Business and Professions Committee), which is pending in the Senate, is the sunset review bill for the Bureau of Automotive Repair, extends the bureau until January 1, 2028, and makes other changes raised during sunset review.

AB 1264 (Berman), which is pending in the Senate, is the sunset review bill for the California Acupuncture Board, extends the board until January 1, 2028, and makes changes raised during sunset review.

SB 812 (Roth), which is pending in this committee, is the sunset review bill for the California Tax Education Council and extends the enacting statute for the council until January 1, 2028.

SB 814 (Roth), which is pending in this committee, is the sunset review bill for the Bureau of Household Goods and Services, extends the bureau until January 1, 2028, and makes other changes raised during sunset review.

SB 815 (Roth), which is pending in this committee, is the sunset review bill for the Medical Board of California and extends the board until January 1, 2028, and makes other changes raised during sunset review.

Prior Related Legislation. SB 607 (Min), Chapter 607, Statutes of 2021, extended the SPCB by one year until January 1, 2024, among numerous other things.

SB 1481 (Hill), Chapter 572, Statutes of 2018, was the prior sunset review bill for the SPCB and extended the board until January 1, 2023, and made other changes raised during sunset review.

SB 1244 (Lieu), Chapter 560, Statutes of 2014, was a sunset bill for the SPCB and extended the board until January 1, 2023, and made other changes raised during sunset review.

AB 1317 (Frazier), Chapter 352, Statues of 2013, made statutory changes to reflect the changes made by the Governor's Reorganization Plan No. 2. The Governor’s Reorganization Plan No. 2 was a 2012 reorganization plan of the executive branch of state government that, among other things, moved the SPCB from the Department of Pesticide Regulation to the Department of Consumer Affairs.

AB 20 X4 (Audra Strickland), Chapter 18, Statutes of 2009, was an extraordinary session bill that consolidated and reorganized various agencies under the Department of Consumer Affairs, including moving the SPCB from the Department of Consumer Affairs to the Department of Pesticide Regulation.

AB 2382 (Miller), Chapter 823, Statutes of 1935, first established the SPCB and the licensing program for structural pest control.

ARGUMENTS IN SUPPORT:

None on file

ARGUMENTS IN OPPOSITION:

None on file

REGISTERED SUPPORT:

None on file

REGISTERED OPPOSITION:

None on file

Analysis Prepared by: Vincent Chee / B. & P. / (916) 319-3301

 THIRD READING  

Bill No: SB 813

Author: Roth (D), et al.

Amended: 4/27/23

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 4/24/23

AYES: Roth, Nguyen, Alvarado-Gil, Archuleta, Ashby, Becker, Dodd, Eggman, Glazer, Niello, Smallwood-Cuevas, Wahab, Wilk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

SUBJECT: Structural Pest Control Board

SOURCE: Author

DIGEST:

This bill extends the operations of the Structural Pest Control Board of California (SPCB) for four years until January 1, 2028.

ANALYSIS:

Existing law:

1. Establishes the SPCB as the entity within the Department of Consumer Affairs (DCA) that licenses and regulates structural pest control applicators, field representatives, operators, and structural pest control companies and repeals the SPCB on January 1, 2023. (Business and Professions Code (BPC) § 8500 et seq.)
2. Requires any work, correspondence, or document expressing an opinion or making a statement regarding the presence or absence of wood destroying pests or organisms or nondecay fungi to refer to an inspection report, as specified. (BPC § 8517)
3. Requires registered companies to prepare the applicable certification, if requested. (BPC § 8519)
4. Prohibits an individual from advertising, engaging, or offering to engage in the business or practice of structural pest control. (BPC § 8550)
5. Permits the ability to fine any person who violates any provision of the Act not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000). (BPC § 8553)
6. Permits the Director of the Department of Pesticide Regulation (DPR) to levy a civil penalty against a person or company that violates the structural fumigation enforcement program. (BPC § 8698.3)

This bill extends the operations of SPCB for four years until January 1, 2028.

Background

In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the Board. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.

The Structural Pest Control Act (Act) was established by AB 2382 (Chapter 823, Statutes of 1935). The Act originally was administered by the California Pest Control Association and set minimum standards for the industry including mandating practitioners’ experience and continuing education (CE) requirements. In 1941, the Act was codified and SPCB was formed and then began the oversight of the profession. In 2009, the SPCB was transferred from the Department of Consumer Affairs (DCA) to the Department of Pesticide Regulation (DPR) and then back again to DCA under former Governor Brown’s 2011-2012 Reorganization Plan No. 2 and AB 1317 (Frazier, Chapter 352, Statues of 2013). The SPCB’s highest priority is the protection of the public through its licensing, regulatory, and disciplinary functions within the pest control industry (Business and Professions Code (BPC) § 8520.1).

The SPCB issues three types of licenses for three different practice areas (branches) of pest control. The branch types are:

• Branch 1 Fumigation – The practice relating to the control of household and wood-destroying pests or organisms by fumigation with poisonous or lethal gases.
• Branch 2 General Pest – The practice relating to the control of household pests, excluding fumigation with poisonous or lethal gases.
• Branch 3 Wood Destroying Pests and Organisms (WDO) – The practice relating to the control of wood-destroying pests or organisms by the use of insecticides, or structural repairs and corrections, excluding fumigation with poisonous or lethal gases.

The license types are:

• Applicator - An entry-level license category issued for Branch 2 and 3 only. An Applicator is an individual licensed by the SPCB to apply a pesticide, or any other medium to eliminate, exterminate, control, or prevent infestations or infections. Applicators cannot inject lethal gases used in fumigation.
• Field Representative - A full journey-level license issued in all three branches. A Field Representative secures work, makes identifications, makes inspections, submits bids, and contracts for work on behalf of a registered company.
• Operator - The highest level of licensure issued in all three branches. Depending on the license category, an Operator must have at least two years, or as many as four years, qualifying experience. Only a licensed Operator may qualify a company for registration by assuming responsibility for the company and its employees as the company Qualifying Manager.

As of June 30, 2022, the Board had approximately 24,813 active licenses, 3,566 active Principle and Brach Office Registrations, 2,987 delinquent licensees, and 2,031 current but inactive licensees.

SPCB is funded through regulatory fees and license renewal fees and does not receive funds from California’s General Fund (GF). The SPCB administers three funds: (1) Structural Pest Control Fund, (2) Structural Pest Control Education and Enforcement Fund, and (3) Structural Pest Control Research Fund.

The SPCB’s FY 2022-23 fund condition projects a balance of $3,330,000, with 6 months in budget reserve. For the past four fiscal years, the SPCB’s total program expenditures have increased by 11%. Personnel Services expenditures increased by 21% and OE&E expenditures increased by 0.05%. SPCB attributes the personnel service increase to shifting an AGPA from the education and enforcement fund to the support fund.

On average, SPCB receives approximately 337 complaints per year since FY 2019/20. SPCB notes 86% of cases brought for accusations have been settled rather than resulting in a hearing. SPCB identified issues facing its enforcement division, including the need to increase positive proactive education and enforcement, increase working relationships with county agricultural commissioners and the Department of Pesticide Regulations/Environmental Protection Agency to reduce incidents of unlawful pest control services, and seek authority to suspend and/or (with cause) revoke a license for non-compliance of a citation (unpaid citation or fine) to accelerate compliance and reduce outstanding fines.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee, the 2023-24 Governor’s Budget provides approximately $7.4 million and 30.9 positions to support the continued operation of the SPCB’s licensing and enforcement activities.

SUPPORT: (Verified 5/19/23)

None received

OPPOSITION: (Verified 5/19/23)

None received

Prepared by: Sarah Mason / B., P. & E.D. /

5/20/23 13:09:42

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

SB 813 (Roth) - Structural Pest Control Board

Bill Summary:

SB 813 is the sunset bill for the Structural Pest Control Board (SPCB) and extends the operation of the SPCB and its authority to appoint an executive officer to January 1, 2028.

Fiscal Impact:

The 2023-24 Governor’s Budget provides approximately $7.4 million (Structural Pest Control Fund) and 30.9 positions to support the continued operation of the SPCB’s licensing and enforcement activities.

Background:

The SPCB issues three types of licenses for three different practice areas (branches) of pest control. The branch types are:

• Branch 1 Fumigation – The practice relating to the control of household and wood-destroying pests or organisms by fumigation with poisonous or lethal gases.
• Branch 2 General Pest – The practice relating to the control of household pests, excluding fumigation with poisonous or lethal gases.
• Branch 3 Wood Destroying Pests and Organisms (WDO) – The practice relating to the control of wood-destroying pests or organisms by the use of insecticides, or structural repairs and corrections, excluding fumigation with poisonous or lethal gases.

The license types are:

• Applicator - An entry-level license category issued for Branch 2 and 3 only. An Applicator is an individual licensed by the SPCB to apply a pesticide, or any other medium to eliminate, exterminate, control, or prevent infestations or infections. Applicators cannot inject lethal gases used in fumigation.
• Field Representative - A full journey-level license issued in all three branches. A Field Representative secures work, makes identifications, makes inspections, submits bids, and contracts for work on behalf of a registered company.
• Operator - The highest level of licensure issued in all three branches. Depending on the license category, an Operator must have at least two years, or as many as four years, qualifying experience. Only a licensed Operator may qualify a company for registration by assuming responsibility for the company and its employees as the company Qualifying Manager.

Proposed Law:

Extends the operation of the SPCB and its authority to appoint an executive officer to January 1, 2028.

Related Legislation:

SB 812 (Roth, 2023) is the California Tax Education Council sunset bill. SB 812 is pending in this committee.

SB 814 (Roth, 2023) is the Bureau of Household Goods and Services sunset bill. SB 814 is pending in this committee.

SB 815 (Roth, 2023) is the Medical Board of California sunset bill. SB 815 is pending in this committee.

AB 1257 (Assembly Business and Professions Committee, 2023) is the Dental Hygiene Board of California sunset bill. AB 1257 is pending in Assembly Appropriations Committee.

AB 1262 (Assembly Business and Professions Committee, 2023) is the Professional Fiduciaries Bureau sunset bill. AB 1262 is pending in Assembly Appropriations Committee.

AB 1263 (Assembly Business and Professions Committee, 2023) is the Bureau of Automotive Repair sunset bill. AB 1263 is pending in Assembly Appropriations Committee.

AB 1264 (Assembly Business and Professions Committee, 2023) is the California Acupuncture Board sunset bill. AB 1264 is pending in Assembly Appropriations Committee.

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Richard Roth, Chair

2023 - 2024 Regular

Bill No: Hearing Date: April 24, 2023

Subject:

SUMMARY:

Makes various changes to the operations of the Structural Pest Control Board (SPCB).

Existing law:

1. Establishes the SPCB as the entity within the Department of Consumer Affairs (DCA) that licenses and regulates structural pest control applicators, field representatives, operators, and structural pest control companies and repeals the SPCB on January 1, 2023. (Business and Professions Code (BPC) § 8500 et seq.)
2. Requires any work, correspondence, or document expressing an opinion or making a statement regarding the presence or absence of wood destroying pests or organisms or nondecay fungi to refer to an inspection report, as specified.
   (BPC § 8517)
3. Requires registered companies to prepare the applicable certification, if requested. (BPC § 8519)
4. Requires the Branch 1 registered company to issue a certification stating that the property was fumigated in the case when a Branch 3 registered company prepared the inspection report disclosing an infestation and a Branch 1 registered company performed the fumigation. (BPC § 8519.5)
5. Prohibits an individual from advertising, engaging, or offering to engage in the business or practice of structural pest control. (BPC § 8550)
6. Permits the ability to fine any person who violates any provision of the Act not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000). (BPC § 8553)
7. Requires a registered company to notify the SPCB within 30 days of a change in location of its principal office or any branch office or of a change in qualifying manager, branch supervisor, officers, or its bond or insurance. (BPC § 8553)
8. Requires a registered company that completes any work related to wood destroying pests or organisms to post a completion tag next to the inspection tag.
   (BPC § 8619(b))
9. Requires the SPCB, if requested in writing by the applicant for licensure, to provide the applicant with a copy of history his or her criminal history record if the applicant was denied licensure at least in part due to the applicant’s state or federal criminal history record. (BPC § 8623(d)(1))
10. Permits the SPCB or county agriculture commissions to fine a registered company acting as a prime contractor up to one thousand dollars ($1,000) if a subcontractor of the company committed a “serious” or “moderate” violation and the prime contractor had been notified of more than two “serious” or “moderate” violations committed by that subcontractor within 12 consecutive months or if the subcontractors did not have a signed factsheet on the premise being treated.
    (BPC §§ 8663(b) and (e))
11. Requires a notice of violation issued for any violation committed by a subcontractor to be sent by certified mail to the prime contractor within 15 days of the violation. (BPC § 8663(d))
12. Permits the Director of the Department of Pesticide Regulation (DPR) to levy a civil penalty against a person or company that violates the structural fumigation enforcement program. (BPC § 8698.3)

This bill makes various changes to the operations of the SPCB, including requiring notification to be provided to SPCB in 7 business days rather than 10 if the qualified manager ceased to be connected with a licensed operator.

FISCAL EFFECT:

Unknown. This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

1. Purpose. This bill is sponsored by the Author. According to the Author, this bill “makes changes to SPCB and laws governing structural pest control operators, intended to improve oversight of the profession and SPCB operations, stemming from the sunset review oversight of SPCB.”
2. Oversight Hearings and Sunset Review of Licensing Boards and Programs. In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of 8 regulatory entities including the Board. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.
3. Background on SPCB. The Structural Pest Control Act (Act) was established by AB 2382 (Chapter 823, Statutes of 1935). The Act originally was administered by the California Pest Control Association and set minimum standards for the industry including mandating practitioners’ experience and continuing education (CE) requirements. In 1941, the Act was codified and SPCB was formed and then began the oversight of the profession. In 2009, the SPCB was transferred from the Department of Consumer Affairs (DCA) to the Department of Pesticide Regulation (DPR) and then back again to DCA under former Governor Brown’s 2011-2012 Reorganization Plan No. 2 and AB 1317 (Frazier, Chapter 352, Statues of 2013). The SPCB’s highest priority is the protection of the public through its licensing, regulatory, and disciplinary functions within the pest control industry (Business and Professions Code (BPC) § 8520.1).

The SPCB issues three types of licenses for three different practice areas (branches) of pest control. The branch types are:

• Branch 1 Fumigation – The practice relating to the control of household and wood-destroying pests or organisms by fumigation with poisonous or lethal gases.
• Branch 2 General Pest – The practice relating to the control of household pests, excluding fumigation with poisonous or lethal gases.
• Branch 3 Wood Destroying Pests and Organisms (WDO) – The practice relating to the control of wood-destroying pests or organisms by the use of insecticides, or structural repairs and corrections, excluding fumigation with poisonous or lethal gases.

The license types are:

• Applicator - An entry-level license category issued for Branch 2 and 3 only. An Applicator is an individual licensed by the SPCB to apply a pesticide, or any other medium to eliminate, exterminate, control, or prevent infestations or infections. Applicators cannot inject lethal gases used in fumigation.
• Field Representative - A full journey-level license issued in all three branches. A Field Representative secures work, makes identifications, makes inspections, submits bids, and contracts for work on behalf of a registered company.
• Operator - The highest level of licensure issued in all three branches. Depending on the license category, an Operator must have at least two years, or as many as four years, qualifying experience. Only a licensed Operator may qualify a company for registration by assuming responsibility for the company and its employees as the company Qualifying Manager.

As of June 30, 2022, the Board had approximately 24,813 active licenses, 3,566 active Principle and Brach Office Registrations, 2,987 delinquent licensees, and 2,031 current but inactive licensees.

SPCB is funded through regulatory fees and license renewal fees and does not receive funds from California’s General Fund (GF). The SPCB administers three funds: 1) Structural Pest Control Fund, 2) Structural Pest Control Education and Enforcement Fund, and 3) Structural Pest Control Research Fund.

The SPCB’s FY 2022-23 fund condition projects a balance of $3,330,000, with 6 months in budget reserve. For the past four fiscal years, the SPCB’s total program expenditures have increased by 11%. Personnel Services expenditures increased by 21% and OE&E expenditures increased by 0.05%. SPCB attributes the personnel service increase to shifting an AGPA from the education and enforcement fund to the support fund.

On average, SPCB receives approximately 337 complaints per year since FY 2019/20. SPCB notes 86% of cases brought for accusations have been settled rather than resulting in a hearing. SPCB identified issues facing its enforcement division, including the need to increase positive proactive education and enforcement, increase working relationships with county agricultural commissioners and the Department of Pesticide Regulations/Environmental Protection Agency to reduce incidents of unlawful pest control services, and seek authority to suspend and/or (with cause) revoke a license for non-compliance of a citation (unpaid citation or fine) to accelerate compliance and reduce outstanding fines.

1. Proposed Author’s Amendment. In order to ensure continued SPCB operations, the Author is proposing an amendment to extend program operations for four years until January 1, 2028.

SUPPORT AND OPPOSITION:

Support:

None received

Opposition:

None received

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