Bill Text: CA AB2740 | 2013-2014 | Regular Session | Chaptered
Bill Title: Bureau of Electronic and Appliance Repair, Home
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2014-09-18 - Chaptered by Secretary of State - Chapter 428, Statutes of 2014. [AB2740 Detail]
Download: California-2013-AB2740-Chaptered.html
BILL NUMBER: AB 2740 CHAPTERED
BILL TEXT
CHAPTER 428
FILED WITH SECRETARY OF STATE SEPTEMBER 18, 2014
APPROVED BY GOVERNOR SEPTEMBER 18, 2014
PASSED THE SENATE AUGUST 21, 2014
PASSED THE ASSEMBLY AUGUST 22, 2014
AMENDED IN SENATE AUGUST 18, 2014
AMENDED IN SENATE AUGUST 13, 2014
AMENDED IN ASSEMBLY APRIL 24, 2014
AMENDED IN ASSEMBLY APRIL 10, 2014
INTRODUCED BY Assembly Member Bonilla
(Principal coauthor: Senator Lieu)
FEBRUARY 26, 2014
An act to amend Sections 9810, 9812.5, 9830.5, 9832.5, 9847.5,
9849, 9851, 9853, 9855.9, 9860, 9862.5, 9863, and 9873 of the
Business and Professions Code, relating to consumer affairs.
LEGISLATIVE COUNSEL'S DIGEST
AB 2740, Bonilla. Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation.
Existing law, the Electronic Appliance Repair Dealer Registration
Law, provides for the licensure and regulation of electronic
appliance and repair dealers by the Bureau of Electronic and
Appliance Repair, Home Furnishings, and Thermal Insulation and makes
a failure to comply with its provisions of a crime. Existing law
establishes the bureau under the supervision and control of the
Director of Consumer Affairs. Existing law requires the director to
administer and enforce those provisions relating to the licensure and
regulation of electronic and appliance repair service dealers and
persons engaged in various businesses associated with home
furnishings. Under existing law the Governor is required to appoint a
chief of the bureau to serve under the direction and supervision of
the director, as specified.
This bill would extend the operation of the act to January 1,
2019, and would require that the powers and duties of the bureau, as
provided, be subject to review by the appropriate policy committees
of the Legislature as if these provisions were scheduled to be
repealed on January 1, 2019. By extending the operation of some of
these provisions, the violation of which is a crime, the bill would
impose 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares all of the
following:
(1) The Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation is within the Department of
Consumer Affairs, its mission is "to protect and serve consumers
while ensuring a competent and fair marketplace," and its mandate
includes making protection of the public its highest priority in
exercising its licensing, regulatory, and disciplinary functions.
(2) The California Bureau of Home Furnishings and Thermal
Insulation was established in 1911 in Assembly Bill 547 (Ch. 73,
Stats. 1911) in response to unscrupulous manufacturing practices in
the mattress industry, which contributed to the fires following the
1906 San Francisco earthquake.
(3) The California Bureau of Electronic and Appliance Repair was
established in 1963 under the Electronic and Appliance Repair Dealer
Registration Law in Senate Bill 1292 (Ch. 1492, Stats. 1963) in
response to growing concerns to consumers and law enforcement
agencies about fraud and negligence in the television repair
industry.
(4) In 2009, Assembly Bill 20 (Chapter 18 of the Fourth
Extraordinary Session of the Statutes of 2009), officially merged the
Bureau of Home Furnishings and Thermal Insulation with the Bureau of
Electronic and Appliance Repair together to create the Bureau of
Electronic and Appliance Repair, Home Furnishings, and Thermal
Insulation.
(5) Today, the bureau licenses and regulates over 40,000
businesses, including businesses that engage in the repair of
electronics and appliances, the sale and administration of service
contracts, and the manufacture, sale, or maintenance of upholstered
home furnishings, bedding, and thermal insulation. In addition, the
bureau adopts regulations and ensures compliance with the law;
inspects businesses and conducts investigations; conducts research
on, develops standards for, and tests upholstered furniture, bedding,
and thermal insulation products to confirm they meet specified
standards; handles consumer complaints; and initiates disciplinary
action against businesses that violate statutory or regulatory
requirements.
(6) On March 10, 2014, the Assembly Business, Professions and
Consumer Protection Committee and the Senate Business, Professions
and Economic Development Committee (the committees) held a joint
oversight sunset hearing and prepared a background paper on the
bureau.
(7) While the hearing and the background paper found the bureau in
good standing, it also identified areas for followup and requested
the bureau to report back to the committees on specific issues, which
include all of the following:
(A) While the bureau is in good fiscal standing, its revenues are
projected to stay the same over the next few years and the cost of
doing business is projected to rise over time, potentially leading to
a long-term deficit. The bureau should report to the committees any
planned efforts to increase its revenues and reduce its expenditures,
and whether, or when, it might seek a statutory fee increase in the
future.
(B) For the 2013-14 fiscal year, the Bureau's Electronic and
Appliance Repair Fund and the Home Furnishings and Thermal Insulation
Fund are expected to spend roughly 37 percent and 19 percent of
their budgets, respectively, on the pro rata costs to the department.
The bureau should advise the committees about the bases upon which
pro rata costs are calculated, and whether it could achieve cost
savings by dealing with more of its consumer complaints in-house.
(C) Currently, electronic and appliance repair and thermal
insulation licenses are renewed annually, and home furnishings
licenses are renewed biennially. The bureau should examine the pros
and cons of requiring biennial renewals instead of annual license
renewals for all licensees.
(D) In its last sunset review report in 1995, the department
studied both the electronic and appliance repair market and the home
furnishings and thermal insulation market to determine whether
regulatory activities were appropriate, necessary, and should be
continued, and recommended areas of deregulation and areas to monitor
in order to better target resources and evaluate consumer risk and
impact. The bureau should conduct market condition assessments to
study both of these markets and determine if current statutes and
regulations reflect the needs of the markets, where risk to consumers
is the greatest, where resources could be refocused or expanded, and
whether continued regulation is clearly necessary across all
segments of these markets.
(E) The bureau issues a separate furniture retailer license,
bedding retailer license, combination furniture and bedding retailer
license, sanitizer license, and custom upholsterer license. The
bureau may consider whether it should consolidate any of its
licenses, and whether it should continue to regulate, or issue,
stand-alone licenses to sanitizers and custom upholsterers.
(F) The bureau has reported high product failure rates, which are
primarily attributed to technical violations of flammability, product
labeling, and feather and down standards. The bureau should
reexamine its testing protocols to ensure that it has the information
it needs to appropriately identify areas of highest risk to
consumers, and reexamine its standards, especially feather and down
and product labeling standards, to determine if some standards could
be relaxed, presuming there is no appreciable impact on consumer
safety, whether standards should be clarified or better advertised,
or whether penalties for violations are too low to act as a proper
deterrent.
(G) The bureau is scheduled to go live on the department's BreEZe
system in late 2015. The bureau should update the committees on the
status of its implementation of BreEZe, including whether the system
will accommodate the bureau's current and future needs.
(b) It is the intent of the Legislature that the bureau examine
and respond to the issues and recommendations specified in
subparagraphs (A) to (G), inclusive, of paragraph (7) of subdivision
(a) that were identified in the background paper, and report back to
the committees by July 1, 2015, with its findings.
SEC. 2. Section 9810 of the Business and Professions Code is
amended to read:
9810. (a) There is in the Department of Consumer Affairs a Bureau
of Electronic and Appliance Repair, Home Furnishings, and Thermal
Insulation, under the supervision and control of the director. The
director shall administer and enforce the provisions of this chapter
and Chapter 3 (commencing with Section 19000) of Division 8.
(b) The Governor shall appoint, subject to confirmation by the
Senate, a chief of the bureau at a salary to be fixed and determined
by the director with the approval of the Director of Finance. The
chief shall serve under the direction and supervision of the director
and at the pleasure of the Governor.
(c) Every power granted to or duty imposed upon the director under
this chapter and Chapter 3 (commencing with Section 19000) of
Division 8 may be exercised or performed in the name of the director
by a deputy or assistant director or by the chief, subject to
conditions and limitations that the director may prescribe.
(d) Whenever the laws of this state refer to the Bureau of
Electronic Repair Dealer Registration or the Bureau of Electronic and
Appliance Repair, the reference shall be construed to be to the
Bureau of Electronic and Appliance Repair, Home Furnishings, and
Thermal Insulation.
(e) Notwithstanding any other law, the powers and duties of the
Bureau of Electronic and Appliance Repair, Home Furnishings, and
Thermal Insulation, as set forth in this chapter and Chapter 3
(commencing with Section 19000) of Division 8, shall be subject to
review by the appropriate policy committees of the Legislature. The
review shall be performed as if this chapter and Chapter 3
(commencing with Section 19000) of Division 8 were scheduled to be
repealed on January 1, 2019.
SEC. 3. Section 9812.5 of the Business and Professions Code is
amended to read:
9812.5. The director shall gather evidence of violations of this
chapter and of any regulation established hereunder by any service
contractor, whether registered or not, and by any employee, partner,
officer, or member of any service contractor. The director shall, on
his or her own initiative, conduct spot check investigations of
service contractors throughout the state on a continuous basis. 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. 4. Section 9830.5 of the Business and Professions Code is
amended to read:
9830.5. (a) Each service contractor shall pay the fee required by
this chapter for each place of business operated by him or her in
this state and shall register with the bureau upon forms prescribed
by the director. The forms shall contain sufficient information to
identify the service contractor, including name, address, retail
seller's permit number, if a permit is required under the Sales and
Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of
the Revenue and Taxation Code), a copy of the certificate of
qualification as filed with the Secretary of State if the service
contractor is a foreign corporation, and other identifying data to be
prescribed by the bureau. If the business is to be carried on under
a fictitious name, that fictitious name shall be stated. If the
service contractor is a partnership, identifying data shall be stated
for each partner. If the service contractor is a private company
that does not file an annual report on Form 10-K with the Securities
and Exchange Commission, data shall be included for each of the
officers and directors of the company as well as for the individual
in charge of each place of the service contractor's business in the
State of California, subject to any regulations the director may
adopt. If the service contractor is a publicly held corporation or a
private company that files an annual report on Form 10-K with the
Securities and Exchange Commission, it shall be sufficient for
purposes of providing data for each of the officers and directors of
the corporation or company to file with the director the most recent
annual report on Form 10-K that is filed with the Securities and
Exchange Commission.
(b) A service contractor who does not operate a place of business
in this state but who sells, issues, or administers service contracts
in this state, shall hold a valid registration issued by the bureau
and shall pay the registration fee required by this chapter as if he
or she had a place of business in this state.
(c) 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. 5. Section 9832.5 of the Business and Professions Code is
amended to read:
9832.5. (a) Registrations issued under this chapter shall expire
no more than 12 months after the issue date. The expiration date of
registrations shall be set by the director in a manner to best
distribute renewal procedures throughout the year.
(b) To renew an unexpired registration, the service contractor
shall, on or before the expiration date of the registration, apply
for renewal on a form prescribed by the director, and pay the renewal
fee prescribed by this chapter.
(c) To renew an expired registration, the service contractor shall
apply for renewal on a form prescribed by the director, pay the
renewal fee in effect on the last regular renewal date, and pay all
accrued and unpaid delinquency and renewal fees.
(d) Renewal is effective on the date that the application is
filed, the renewal fee is paid, and all delinquency fees are paid.
(e) For purposes of implementing the distribution of the renewal
of registrations throughout the year, the director may extend, by not
more than six months, the date fixed by law for renewal of a
registration, except that, in that event, any renewal fee that may be
involved shall be prorated in such a manner that no person shall be
required to pay a greater or lesser fee than would have been required
had the change in renewal dates not occurred.
(f) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2019, deletes or extends
that date.
SEC. 6. Section 9847.5 of the Business and Professions Code is
amended to read:
9847.5. (a) Each service contractor shall maintain those records
as are required by the regulations adopted to carry out the
provisions of this chapter for a period of at least three years.
These records shall be open for reasonable inspection by the director
or other law enforcement officials.
(b) 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 9849 of the Business and Professions Code, as
amended by Section 99 of Chapter 332 of the Statutes of 2012, is
amended to read:
9849. (a) The expiration of a valid registration shall not
deprive the director of jurisdiction to proceed with any
investigation or hearing on a cease and desist order against a
service dealer or service contractor or to render a decision to
suspend, revoke, or place on probation a registration.
(b) 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. 8. Section 9849 of the Business and Professions Code, as
amended by Section 100 of Chapter 332 of the Statutes of 2012, is
amended to read:
9849. (a) The expiration of a valid registration shall not
deprive the director of jurisdiction to proceed with any
investigation or hearing on a cease and desist order against a
service dealer or to render a decision to suspend, revoke, or place
on probation a registration.
(b) This section shall become operative on January 1, 2019.
SEC. 9. Section 9851 of the Business and Professions Code, as
amended by Section 101 of Chapter 332 of the Statutes of 2012, is
amended to read:
9851. (a) The superior court in and for the county wherein any
person carries on, or attempts to carry on, business as a service
dealer or service contractor in violation of the provisions of this
chapter, or any regulation thereunder, shall, on application of the
director, issue an injunction or other appropriate order restraining
that conduct.
(b) The proceedings under this section shall be governed by
Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the
Code of Civil Procedure, except that the director shall not be
required to allege facts necessary to show or tending to show lack of
an adequate remedy at law or irreparable injury.
(c) 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. 10. Section 9851 of the Business and Professions Code, as
amended by Section 102 of Chapter 332 of the Statutes of 2012, is
amended to read:
9851. (a) The superior court in and for the county wherein any
person carries on, or attempts to carry on, business as a service
dealer in violation of the provisions of this chapter, or any
regulation thereunder, shall, on application of the director, issue
an injunction or other appropriate order restraining that conduct.
(b) The proceedings under this section shall be governed by
Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the
Code of Civil Procedure, except that the director shall not be
required to allege facts necessary to show or tending to show lack of
an adequate remedy at law or irreparable injury.
(c) This section shall become operative on January 1, 2019.
SEC. 11. Section 9853 of the Business and Professions Code, as
amended by Section 103 of Chapter 332 of the Statutes of 2012, is
amended to read:
9853. (a) A plea or verdict of guilty or a conviction following a
plea of nolo contendere made to a charge substantially related to
the qualifications, functions, and duties of a service dealer or
service contractor is deemed to be a conviction within the meaning of
this article. The director may suspend, revoke, or place on
probation a registration, or may deny registration, when the time for
appeal has elapsed, or the judgment of conviction has been affirmed
on appeal or when an order granting probation is made suspending the
imposition of sentence, irrespective of a subsequent order under
Section 1203.4 of the Penal Code, allowing that person to withdraw
his or her plea of guilty and to enter a plea of not guilty, or
setting aside the verdict of guilty, or dismissing the accusation,
information, or indictment.
(b) 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. 12. Section 9853 of the Business and Professions Code, as
amended by Section 104 of Chapter 332 of the Statutes of 2012, is
amended to read:
9853. (a) A plea or verdict of guilty or a conviction following a
plea of nolo contendere made to a charge substantially related to
the qualifications, functions, and duties of a service dealer is
deemed to be a conviction within the meaning of this article. The
director may suspend, revoke, or place on probation a registration,
or may deny registration, when the time for appeal has elapsed, or
the judgment of conviction has been affirmed on appeal or when an
order granting probation is made suspending the imposition of
sentence, irrespective of a subsequent order under Section 1203.4 of
the Penal Code allowing that person to withdraw his or her plea of
guilty and to enter a plea of not guilty, or setting aside the
verdict of guilty, or dismissing the accusation, information, or
indictment.
(b) This section shall become operative on January 1, 2019.
SEC. 13. Section 9855.9 of the Business and Professions Code is
amended to read:
9855.9. This article 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. 14. Section 9860 of the Business and Professions Code, as
amended by Section 105 of Chapter 332 of the Statutes of 2012, is
amended to read:
9860. (a) The director shall establish procedures for accepting
complaints from the public against any service dealer or service
contractor.
(b) 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. 15. Section 9860 of the Business and Professions Code, as
amended by Section 106 of Chapter 332 of the Statutes of 2012, is
amended to read:
9860. (a) The director shall establish procedures for accepting
complaints from the public against any service dealer.
(b) This section shall become operative on January 1, 2019.
SEC. 16. Section 9862.5 of the Business and Professions Code is
amended to read:
9862.5. (a) If a complaint indicates a possible violation of this
chapter or of the regulations adopted pursuant to this chapter, the
director may advise the service contractor of the contents of the
complaint and, if the service contractor is so advised, the director
shall make a summary investigation of the facts after the service
contractor has had reasonable opportunity to reply thereto.
(b) 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. 17. Section 9863 of the Business and Professions Code, as
amended by Section 108 of Chapter 332 of the Statutes of 2012, is
amended to read:
9863. (a) If, upon summary investigation, it appears probable to
the director that a violation of this chapter, or the regulations
thereunder, has occurred, the director, in his or her discretion, may
suggest measures that in the director's judgment would compensate
the complainant for the damages he or she has suffered as a result of
the alleged violation. If the service dealer or service contractor
accepts the director's suggestions and performs accordingly, the
director shall give that fact due consideration in any subsequent
disciplinary proceeding. If the service dealer or service contractor
declines to abide by the suggestions of the director, the director
may investigate further and may institute disciplinary proceedings in
accordance with the provisions of this chapter.
(b) 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. 18. Section 9863 of the Business and Professions Code, as
amended by Section 109 of Chapter 332 of the Statutes of 2012, is
amended to read:
9863. (a) If, upon summary investigation, it appears probable to
the director that a violation of this chapter, or the regulations
thereunder, has occurred, the director, in his or her discretion, may
suggest measures that in the director's judgment would compensate
the complainant for the damages he or she has suffered as a result of
the alleged violation. If the service dealer accepts the director's
suggestions and performs accordingly, the director shall give that
fact due consideration in any subsequent disciplinary proceeding. If
the service dealer declines to abide by the suggestions of the
director, the director may investigate further and may institute
disciplinary proceedings in accordance with the provisions of this
chapter.
(b) This section shall become operative on January 1, 2019.
SEC. 19. Section 9873 of the Business and Professions Code, as
amended by Section 110 of Chapter 332 of the Statutes of 2012, is
amended to read:
9873. The fees prescribed by this chapter shall be set by the
director by regulation, according to the following schedule:
(a) (1) The initial registration fee for an electronic repair
industry service dealer or for an appliance repair industry service
dealer is not more than one hundred sixty-five dollars ($165) for
each place of business in this state. The initial registration fee
for a service contractor is not more than seventy-five dollars ($75)
for each place of business in this state.
(2) The initial registration fee for a person who engages in
business as both an electronic repair industry service dealer and an
appliance repair industry service dealer is not more than three
hundred twenty-five dollars ($325) for each place of business in this
state. The initial registration fee for a person who is a service
contractor and engages in business as either an electronic repair
industry service dealer or an appliance repair industry service
dealer is not more than two hundred forty dollars ($240) for each
place of business in this state.
(3) The initial registration fee for a person who engages in both
the electronic repair industry and the appliance repair industry as a
service dealer and is a service contractor is not more than four
hundred dollars ($400) for each place of business in this state.
(4) A service dealer or service contractor who does not operate a
place of business in this state, but engages in the electronic repair
industry, the appliance repair industry, or sells, issues, or
administers service contracts in this state shall pay the
registration fee specified herein as if he or she had a place of
business in this state.
(b) (1) The annual registration renewal fee for an electronic
repair industry service dealer or for an appliance repair industry
service dealer is not more than one hundred sixty-five dollars ($165)
for each place of business in this state, if renewed prior to its
expiration date. The annual registration renewal fee for a service
contractor is seventy-five dollars ($75) for each place of business
in this state, if renewed prior to its expiration date.
(2) The annual renewal fee for a service dealer who engages in the
business as both an electronic repair industry service dealer and an
appliance repair industry service dealer is not more than three
hundred dollars ($300) for each place of business in this state.
(3) The annual renewal fee for a service dealer who engages in the
electronic repair industry and the appliance repair industry and is
a service contractor is not more than three hundred seventy-five
dollars ($375) for each place of business in this state.
(4) A service dealer or service contractor who does not operate a
place of business in this state, but who engages in the electronic
repair industry, the appliance repair industry, or sells or issues
service contracts in this state shall pay the registration fee
specified herein as if he or she had a place of business in this
state.
(c) The delinquency fee is an amount equal to 50 percent of the
renewal fee for a license in effect on the date of renewal of the
license, except as otherwise provided in Section 163.5.
(d) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2019, deletes or extends
that date.
SEC. 20. Section 9873 of the Business and Professions Code, as
amended by Section 111 of Chapter 332 of the Statutes of 2012, is
amended to read:
9873. The fees prescribed by this chapter shall be set by the
director by regulation, according to the following schedule:
(a) The initial registration fee for an electronic repair industry
service dealer or for an appliance repair industry service dealer is
not more than one hundred sixty-five dollars ($165) for each place
of business in this state. The initial registration fee for a person
who engages in business as both an electronic repair industry service
dealer and an appliance repair industry service dealer is not more
than three hundred twenty-five dollars ($325).
(b) The annual registration renewal fee for an electronic repair
industry service dealer or for an appliance repair industry service
dealer is not more than one hundred sixty-five dollars ($165) for
each place of business in this state,
if renewed prior to its expiration date. The annual
renewal fee for a service dealer who engages in the business as both
an electronic repair industry service dealer and an appliance repair
industry service dealer is not more than three hundred dollars
($300).
(c) The delinquency fee is an amount equal to 50 percent of the
renewal fee for a license in effect on the date of renewal of the
license, except as otherwise provided in Section 163.5.
(d) This section shall become operative on January 1, 2019.
SEC. 21. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
