BILL NUMBER: SB 1849 CHAPTERED
BILL TEXT
CHAPTER 760
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2006
APPROVED BY GOVERNOR SEPTEMBER 29, 2006
PASSED THE SENATE AUGUST 29, 2006
PASSED THE ASSEMBLY AUGUST 24, 2006
AMENDED IN ASSEMBLY AUGUST 22, 2006
AMENDED IN ASSEMBLY AUGUST 7, 2006
AMENDED IN ASSEMBLY JUNE 26, 2006
AMENDED IN ASSEMBLY JUNE 12, 2006
AMENDED IN SENATE MAY 9, 2006
AMENDED IN SENATE MAY 1, 2006
AMENDED IN SENATE APRIL 26, 2006
INTRODUCED BY Committee on Business, Professions and Economic
Development (Senators Figueroa (Chair), Aanestad, Florez, Morrow, and
Simitian)
MARCH 23, 2006
An act to amend Sections 6731.1, 7581.2, 7588, 8726, 8771, 9882,
9884.7, 10232, 10232.4, 22351.5, and 22355 of, to amend, repeal, and
add Section 19161 of, to add Section 7574.4 to, and to repeal
Sections 7612 and 9610 of, the Business and Professions Code, and to
amend Sections 44024.5 and 44062.1 of the Health and Safety Code,
relating to professions and vocations.
LEGISLATIVE COUNSEL'S DIGEST
SB 1849, Committee on Business, Professions and Economic
Development Professions and vocations.
(1) Existing law requires the Cemetery and Funeral Bureau to
conduct a comprehensive study on the need to regulate third-party
casket retailers and on the need for the regulation of proprietary
employees of religious corporations, churches, religious societies,
and religious denominations, and to report to the Department of
Consumer Affairs and to the Joint Committee on Boards, Commissions
and Consumer Protection by September 1, 2004.
This bill would repeal these provisions.
(2) Existing law, the Proprietary Security Services Act, requires
a person who meets the definition of a proprietary private security
officer to register with the Department of Consumer Affairs.
This bill would authorize a person registered with the department
as a proprietary private security officer to request a review by the
private security disciplinary review committee, which is established
in the Private Security Services Act, to contest the assessment of an
administrative fine or to appeal a denial, revocation, or suspension
of registration.
(3) Existing law, the Private Security Services Act, provides for
the licensing and regulation of private security services and
establishes two private disciplinary review committees to perform
specified functions relative to various private security services.
This bill would require those private disciplinary review
committees to expand their functions to include reviews of registered
proprietary private security officers.
(4) Existing law provides for the licensing and regulation of
professional engineers and land surveyors by the Board of
Professional Engineers and Land Surveyors in the Department of
Consumer Affairs. Existing law specifies that a person practices land
surveying when he or she does or offers to do, among other things,
certain acts regarding the earth's surface or relative fixed objects
and geodetic or cadastral surveying. Existing law makes practicing or
offering to practice engineering or land surveying without legal
authorization a crime.
This bill would revise the acts that constitute the practice of
civil engineering to include determining the configuration of the
earth's surface or the position of fixed objects above, on, or below
the surface of earth by applying the principles of trigonometry or
photogrammetry. The bill would revise the acts that constitute the
practice of civil engineering or the practice of land surveying to
include rendering a statement regarding the accuracy of maps or
measured survey data. The bill would also revise the definition of
geodetic or cadastral surveying.
Because this bill would expand the definitions of civil
engineering and land surveying, the unauthorized practice or offer to
practice of which is a crime, it would impose a state-mandated local
program.
(5) Existing law, the Automotive Repair Act, establishes in the
Department of Consumer Affairs a Bureau of Automotive Repair under
the supervision and control of the Director of Consumer Affairs.
Existing law authorizes the director to refuse to validate, or to
temporarily or permanently invalidate, the registration of an
automotive repair dealer for specified acts or omissions related to
the conduct of the business of the automotive repair dealer.
This bill would make technical changes to those provisions.
(6) Existing law, the Real Estate Law, exempts personal property
brokers, commercial finance lenders, and consumer finance lenders
from certain reporting and disclosure requirements relative to loans
secured by real property.
This bill would delete personal property brokers, commercial
finance lenders, and consumer finance lenders from these exemptions
and instead provide that finance lenders are exempt from the
reporting and disclosure requirements.
(7) Existing law, the Home Furnishings and Thermal Insulation Act,
requires all mattresses and box springs manufactured for sale in
this state to be fire retardant. Existing law requires the Bureau of
Home Furnishings and Thermal Insulation to adopt regulations by
January 1, 2004, requiring that fire retardant mattresses and box
springs meet a specified resistance to open flame test.
This bill would, effective July 1, 2007, change the criteria for
fire retardant mattresses and mattress sets to the standards for
resistance to open-flame test adopted by the United States Consumer
Product Safety Commission. The bill would require that other bedding
products that the bureau determines contribute to mattress fires
comply with regulations adopted by it.
(8) Existing law requires process servers to be registered with
the county clerk of the county in which he or she resides or has a
principal place of business. Existing law requires a process server,
at the time of filing an initial certificate of registration, to also
submit 2 completed fingerprint cards for submission to the
Department of Justice and the Federal Bureau of Investigation in
order to verify that the process server has not been convicted of a
felony.
This bill would require a process server, at the time of filing an
initial certificate of registration, to submit a completed Request
for Live Scan form instead of the fingerprint cards, and would make
related changes.
(9) Existing law requires the Department of Consumer Affairs to
compile and maintain statistical and emission profiles of motor
vehicles that are subject to the motor vehicle inspection program.
Existing law authorizes the department to conduct a pilot program to
except specified vehicles from certain biennial certification
requirements. Existing law requires the department as part of the
pilot program to, by June 30, 2000, evaluate standards for the
operation of remote sensing equipment.
Existing law requires the department to offer a repair assistance
program for certain individuals who have failed a smog check
inspection. Existing law requires the department to collect data,
develop information, and report to the Legislature by April 1, 1999,
on the repair assistance program.
This bill would delete these provisions that were required to be
completed by June 30, 2000, and April 1, 1999.
(10) This bill would incorporate additional changes in Section
44062.1 of the Health and Safety Code proposed by AB 1870, that would
become operative only if AB 1870 and this bill are both chaptered
and become effective on or before January 1, 2007, and this bill is
chaptered last.
(11) 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. Section 6731.1 of the Business and Professions Code is
amended to read:
6731.1. Civil engineering also includes the practice or offer to
practice, either in a public or private capacity, all of the
following:
(a) Locates, relocates, establishes, reestablishes, or retraces
the alignment or elevation for any of the fixed works embraced within
the practice of civil engineering, as described in Section 6731.
(b) Determines the configuration or contour of the earth's surface
or the position of fixed objects above, on, or below the surface of
earth by applying the principles of trigonometry or photogrammetry.
(c) Creates, prepares, or modifies electronic or computerized data
in the performance of the activities described in subdivisions (a)
and (b).
(d) Renders a statement regarding the accuracy of maps or measured
survey data pursuant to subdivisions (a), (b), and (c).
SEC. 2. Section 7574.4 is added to the Business and Professions
Code, to read:
7574.4. (a) A person registered with the department under this
chapter may request a review by the private security disciplinary
review committee, as established in Section 7581.1, to contest the
assessment of an administrative fine or to appeal a denial,
revocation, or suspension of a registration unless the denial,
revocation, or suspension is ordered by the director in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code.
A request for a review shall be by written notice to the
department within 30 days of the issuance of the citation and
assessment, denial, revocation, or suspension.
Following a review by a disciplinary review committee, the
appellant shall be notified within 30 days, in writing, by regular
mail, of the committee's decision.
If the appellant disagrees with the decision made by a
disciplinary review committee, he or she may request a hearing in
accordance with Chapter 5 (commencing with Section 11500) of Part 1
of Division 3 of Title 2 of the Government Code. A request for a
hearing following a decision by a disciplinary review committee shall
be by written notice to the department within 30 days following
notice of the committee's decision.
If the appellant does not request a hearing within 30 days, the
review committee's decision shall become final.
(b) Notwithstanding subdivision (a), where a hearing is held under
this chapter to determine whether an application for registration
should be granted, the proceedings shall be conducted in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code, and the director shall have all
of the powers granted therein.
SEC. 3. Section 7581.2 of the Business and Professions Code is
amended to read:
7581.2. Each disciplinary review committee shall perform the
following functions as they pertain to private patrol operators,
security guards, firearm qualification cardholders, firearm training
facilities, firearm training instructors, baton training facilities,
and baton training instructors, as licensed, certified, or registered
by the bureau under this chapter, and proprietary security officers,
as registered by the bureau under Chapter 11.4 (commencing with
Section 7574):
(a) Affirm, rescind, or modify all appealed decisions which
concern administrative fines assessed by the director.
(b) Affirm, rescind, or modify all appealed decisions which
concern denials, revocations, or suspensions of a license,
certificate, or registration except denials, revocations, or
suspensions ordered by the director in accordance with Chapter 5
(commencing with Section 11500) of Division 3 of Title 2 of the
Government Code.
SEC. 4. Section 7588 of the Business and Professions Code is
amended to read:
7588. The fees prescribed by this chapter are as follows:
(a) The application and examination fee for an original license
for a private patrol operator may not exceed five hundred dollars
($500).
(b) The application fee for an original branch office certificate
for a private patrol operator may not exceed two hundred fifty
dollars ($250).
(c) The fee for an original license for a private patrol operator
may not exceed seven hundred dollars ($700).
(d) The renewal fee is as follows:
(1) For a license as a private patrol operator, the fee may not
exceed seven hundred dollars ($700).
(2) For a combination license as a private investigator under
Chapter 11.3 (commencing with Section 7512) and private patrol
operator, AC or DC prefix, the fee may not exceed six hundred dollars
($600).
(3) For a branch office certificate for a combination private
investigator under Chapter 11.3 (commencing with Section 7512) and
private patrol operator, the fee may not exceed forty dollars ($40),
and for a private patrol operator, the fee may not exceed
seventy-five dollars ($75).
(e) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration.
(f) A reinstatement fee is equal to the amount of the renewal fee
plus the regular delinquency fee.
(g) The fee for reexamination of an applicant or his or her
manager shall be the actual cost to the bureau for developing,
purchasing, grading, and administering each examination.
(h) Registration fees pursuant to this chapter are as follows:
(1) A registration fee for a security guard shall not exceed fifty
dollars ($50).
(2) A security guard registration renewal fee shall not exceed
thirty-five dollars ($35).
(i) Fees to carry out other provisions of this chapter are as
follows:
(1) A firearms qualification fee may not exceed eighty dollars
($80).
(2) A firearms requalification fee may not exceed sixty dollars
($60).
(3) An initial baton certification fee may not exceed fifty
dollars ($50).
(4) An application fee and renewal fee for certification as a
firearms training facility or a baton training facility may not
exceed five hundred dollars ($500).
(5) An application fee and renewal fee for certification as a
firearms training instructor or a baton training instructor may not
exceed two hundred fifty dollars ($250).
SEC. 5. Section 7612 of the Business and Professions Code is
repealed.
SEC. 6. Section 8726 of the Business and Professions Code is
amended to read:
8726. A person, including any person employed by the state or by
a city, county, or city and county within the state, practices land
surveying within the meaning of this chapter who, either in a public
or private capacity, does or offers to do any one or more of the
following:
(a) Locates, relocates, establishes, reestablishes, or retraces
the alignment or elevation for any of the fixed works embraced within
the practice of civil engineering, as described in Section 6731.
(b) Determines the configuration or contour of the earth's
surface, or the position of fixed objects above, on, or below the
surface of the earth by applying the principles of mathematics or
photogrammetry.
(c) Locates, relocates, establishes, reestablishes, or retraces
any property line or boundary of any parcel of land, right-of-way,
easement, or alignment of those lines or boundaries.
(d) Makes any survey for the subdivision or resubdivision of any
tract of land. For the purposes of this subdivision, the term
"subdivision" or "resubdivision" shall be defined to include, but not
be limited to, the definition in the Subdivision Map Act (Division 2
(commencing with Section 66410) of Title 7 of the Government Code)
or the Subdivided Lands Law (Chapter 1 (commencing with Section
11000) of Part 2 of Division 4 of this code).
(e) By the use of the principles of land surveying determines the
position for any monument or reference point which marks a property
line, boundary, or corner, or sets, resets, or replaces any monument
or reference point.
(f) Geodetic or cadastral surveying. As used in this chapter,
geodetic surveying means performing surveys, in which account is
taken of the figure and size of the earth to determine or
predetermine the horizontal or vertical positions of fixed objects
thereon or related thereto, geodetic control points, monuments, or
stations for use in the practice of land surveying or for stating the
position of fixed objects, geodetic control points, monuments, or
stations by California Coordinate System coordinates.
(g) Determines the information shown or to be shown on any map or
document prepared or furnished in connection with any one or more of
the functions described in subdivisions (a), (b), (c), (d), (e), and
(f).
(h) Indicates, in any capacity or in any manner, by the use of the
title "land surveyor" or by any other title or by any other
representation that he or she practices or offers to practice land
surveying in any of its branches.
(i) Procures or offers to procure land surveying work for himself,
herself, or others.
(j) Manages, or conducts as manager, proprietor, or agent, any
place of business from which land surveying work is solicited,
performed, or practiced.
(k) Coordinates the work of professional, technical, or special
consultants in connection with the activities authorized by this
chapter.
(l) Determines the information shown or to be shown within the
description of any deed, trust deed, or other title document prepared
for the purpose of describing the limit of real property in
connection with any one or more of the functions described in
subdivisions (a) to (f), inclusive.
(m) Creates, prepares, or modifies electronic or computerized data
in the performance of the activities described in subdivisions (a),
(b), (c), (d), (e), (f), (k), and (l).
(n) Renders a statement regarding the accuracy of maps or measured
survey data.
Any department or agency of the state or any city, county, or city
and county that has an unregistered person in responsible charge of
land surveying work on January 1, 1986, shall be exempt from the
requirement that the person be licensed as a land surveyor until the
person currently in responsible charge is replaced.
The review, approval, or examination by a governmental entity of
documents prepared or performed pursuant to this section shall be
done by, or under the direct supervision of, a person authorized to
practice land surveying.
SEC. 7. Section 8771 of the Business and Professions Code is
amended to read:
8771. (a) Monuments set shall be sufficient in number and
durability and efficiently placed so as not to be readily disturbed,
to assure, together with monuments already existing, the perpetuation
or facile reestablishment of any point or line of the survey.
(b) When monuments exist that control the location of
subdivisions, tracts, boundaries, roads, streets, or highways, or
provide horizontal or vertical survey control, the monuments shall be
located and referenced by or under the direction of a licensed land
surveyor or registered civil engineer prior to the time when any
streets, highways, other rights-of-way, or easements are improved,
constructed, reconstructed, maintained, resurfaced, or relocated, and
a corner record or record of survey of the references shall be filed
with the county surveyor. They shall be reset in the surface of the
new construction, a suitable monument box placed thereon, or
permanent witness monuments set to perpetuate their location if any
monument could be destroyed, damaged, covered, or otherwise
obliterated, and a corner record or record of survey filed with the
county surveyor prior to the recording of a certificate of completion
for the project. Sufficient controlling monuments shall be retained
or replaced in their original positions to enable property,
right-of-way and easement lines, property corners, and subdivision
and tract boundaries to be reestablished without devious surveys
necessarily originating on monuments differing from those that
currently control the area. It shall be the responsibility of the
governmental agency or others performing construction work to provide
for the monumentation required by this section. It shall be the duty
of every land surveyor or civil engineer to cooperate with the
governmental agency in matters of maps, field notes, and other
pertinent records. Monuments set to mark the limiting lines of
highways, roads, streets or right-of-way or easement lines shall not
be deemed adequate for this purpose unless specifically noted on the
corner record or record of survey of the improvement works with
direct ties in bearing or azimuth and distance between these and
other monuments of record.
(c) The decision to file either the required corner record or a
record of survey pursuant to subdivision (b) shall be at the election
of the licensed land surveyor or registered civil engineer
submitting the document.
SEC. 8. Section 9610 of the Business and Professions Code is
repealed.
SEC. 9. Section 9882 of the Business and Professions Code is
amended to read:
9882. (a) There is in the Department of Consumer Affairs a Bureau
of Automotive Repair under the supervision and control of the
director. The duty of enforcing and administering this chapter is
vested in the chief who is responsible to the director. The director
may adopt and enforce those rules and regulations that he or she
determines are reasonably necessary to carry out the purposes of this
chapter and declaring the policy of the bureau, including a system
for the issuance of citations for violations of this chapter as
specified in Section 125.9. These rules and regulations shall be
adopted pursuant to Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.
(b) In 2003 and every four years thereafter, the Joint Committee
on Boards, Commissions, and Consumer Protection shall hold a public
hearing to receive testimony from the Director of Consumer Affairs
and the bureau. In those hearings, the bureau shall have the burden
of demonstrating a compelling public need for the continued existence
of the bureau and its regulatory program, and that its function is
the least restrictive regulation consistent with the public health,
safety, and welfare. The committee shall evaluate and review the
effectiveness and efficiency of the bureau based on factors and
minimum standards of performance that are specified in Section 473.4.
The committee shall report its findings and recommendations as
specified in Section 473.5. The bureau shall prepare an analysis and
submit a report to the committee as specified in Section 473.2.
SEC. 10. Section 9884.7 of the Business and Professions Code is
amended to read:
9884.7. (a) The director, where the automotive repair dealer
cannot show there was a bona fide error, may refuse to validate, or
may invalidate temporarily or permanently, the registration of an
automotive repair dealer for any of the following acts or omissions
related to the conduct of the business of the automotive repair
dealer, which are done by the automotive repair dealer or any
automotive technician, employee, partner, officer, or member of the
automotive repair dealer.
(1) Making or authorizing in any manner or by any means whatever
any statement written or oral which is untrue or misleading, and
which is known, or which by the exercise of reasonable care should be
known, to be untrue or misleading.
(2) Causing or allowing a customer to sign any work order that
does not state the repairs requested by the customer or the
automobile's odometer reading at the time of repair.
(3) Failing or refusing to give to a customer a copy of any
document requiring his or her signature, as soon as the customer
signs the document.
(4) Any other conduct which constitutes fraud.
(5) Conduct constituting gross negligence.
(6) Failure in any material respect to comply with the provisions
of this chapter or regulations adopted pursuant to it.
(7) Any willful departure from or disregard of accepted trade
standards for good and workmanlike repair in any material respect,
which is prejudicial to another without consent of the owner or his
or her duly authorized representative.
(8) Making false promises of a character likely to influence,
persuade, or induce a customer to authorize the repair, service, or
maintenance of automobiles.
(9) Having repair work done by someone other than the dealer or
his or her employees without the knowledge or consent of the customer
unless the dealer can demonstrate that the customer could not
reasonably have been notified.
(10) Conviction of a violation of Section 551 of the Penal Code.
Upon refusal to validate a registration, the director shall notify
the applicant thereof, in writing, by personal service or mail
addressed to the address of the applicant set forth in the
application, and the applicant shall be given a hearing under Section
9884.12 if, within 30 days thereafter, he or she files with the
bureau a written request for hearing, otherwise the refusal is deemed
affirmed.
(b) Except as provided for in subdivision (c), if an automotive
repair dealer operates more than one place of business in this state,
the director pursuant to subdivision (a) shall only invalidate
temporarily or permanently the registration of the specific place of
business which has violated any of the provisions of this chapter.
This violation, or action by the director, shall not affect in any
manner the right of the automotive repair dealer to operate his or
her other places of business.
(c) Notwithstanding subdivision (b), the director may invalidate
temporarily or permanently, the registration for all places of
business operated in this state by an automotive repair dealer upon a
finding that the automotive repair dealer has, or is, engaged in a
course of repeated and willful violations of this chapter, or
regulations adopted pursuant to it.
SEC. 11. Section 10232 of the Business and Professions Code is
amended to read:
10232. (a) Except as otherwise expressly provided, Sections
10232.2, 10232.25, 10233, and 10236.6 are applicable to every real
estate broker who intends or reasonably expects in a successive 12
months to do any of the following:
(1) Negotiate a combination of 10 or more of the following
transactions pursuant to subdivision (d) or (e) of Section 10131 or
Section 10131.1 in an aggregate amount of more than one million
dollars ($1,000,000):
(A) Loans secured directly or collaterally by liens on real
property or on business opportunities as agent for another or others.
(B) Sales or exchanges of real property sales contracts or
promissory notes secured directly or collaterally by liens on real
property or on business opportunities as agent for another or others.
(C) Sales or exchanges of real property sales contracts or
promissory notes secured directly or collaterally by liens on real
property as the owner of those notes or contracts.
(2) Make collections of payments in an aggregate amount of two
hundred fifty thousand dollars ($250,000) or more on behalf of owners
of promissory notes secured directly or collaterally by liens on
real property, owners of real property sales contracts, or both.
(3) Make collections of payments in an aggregate amount of two
hundred fifty thousand dollars ($250,000) or more on behalf of
obligors of promissory notes secured directly or collaterally by
liens on real property, lenders of real property sales contracts, or
both.
Persons under common management, direction, or control in
conducting the activities enumerated above shall be considered as one
person for the purpose of applying the above criteria.
(b) The negotiation of a combination of two or more new loans and
sales or exchanges of existing promissory notes and real property
sales contracts of an aggregate amount of more than two hundred fifty
thousand dollars ($250,000) in any three successive months or a
combination of five or more new loans and sales or exchanges of
existing promissory notes and real property sales contracts of an
aggregate amount of more than five hundred thousand dollars
($500,000) in any successive six months shall create a rebuttable
presumption that the broker intends to negotiate new loans and sales
and exchanges of an aggregate amount that will meet the criteria of
subdivision (a).
(c) In determining the applicability of Sections 10232.2,
10232.25, 10233, and 10236.6, loans or sales negotiated by a broker,
or for which a broker collects payments or provides other servicing
for the owner of the note or contract, shall not be counted in
determining whether the broker meets the criteria of subdivisions (a)
and (b) if any of the following apply:
(1) The lender or purchaser is any of the following:
(A) The Federal National Mortgage Association, the Government
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, and the United
States Department of Veterans Affairs.
(B) A bank or subsidiary thereof, bank holding company or
subsidiary thereof, trust company, savings bank or savings and loan
association or subsidiary thereof, savings bank or savings
association holding company or subsidiary thereof, credit union,
industrial bank or industrial loan company, finance lender, or
insurer doing business under the authority of, and in accordance
with, the laws of this state, any other state, or the United States
relating to banks, trust companies, savings banks or savings
associations, credit unions, industrial banks or industrial loan
companies, commercial finance lenders, or insurers, as evidenced by a
license, certificate, or charter issued by the United States or a
state, district, territory, or commonwealth of the United States.
(C) Trustees of a pension, profit-sharing, or welfare fund, if the
pension, profit-sharing, or welfare fund has a net worth of not less
than fifteen million dollars ($15,000,000).
(D) A corporation with outstanding securities registered under
Section 12 of the Securities Exchange Act of 1934 or a wholly owned
subsidiary of that corporation.
(E) A syndication or other combination of any of the entities
specified in subparagraph (A), (B), (C), or (D) that is organized to
purchase the promissory note.
(F) The California Housing Finance Agency or a local housing
finance agency organized under the Health and Safety Code.
(G) A licensed residential mortgage lender or servicer acting
under the authority of that license.
(H) An institutional investor that issues mortgage-backed
securities, as specified in paragraph (11) of subdivision (i) of
Section 50003 of the Financial Code.
(I) A licensed real estate broker selling all or part of the loan,
the note, or the contract to a lender or purchaser specified in
subparagraphs (A) to (H), inclusive.
(2) The loan or sale is negotiated, or the loan or contract is
being serviced for the owner, under authority of a permit issued
pursuant to applicable provisions of the Corporate Securities Law of
1968 (Division 1 (commencing with Section 25000) of Title 4 of the
Corporations Code).
(3) The transaction is subject to the requirements of Article 3
(commencing with Section 2956) of Chapter 2 of Title 14 of Part 4 of
Division 3 of the Civil Code.
(d) If two or more real estate brokers who are not under common
management, direction, or control cooperate in the negotiation of a
loan or the sale or exchange of a promissory note or real property
sales contract and share in the compensation for their services, the
dollar amount of the transaction shall be allocated according to the
ratio that the compensation received by each broker bears to the
total compensation received by all brokers for their services in
negotiating the loan or sale or exchange.
(e) A real estate broker who meets any of the criteria of
subdivision (a) or (b) shall notify the department in writing within
30 days after that determination is made.
SEC. 12. Section 10232.4 of the Business and Professions Code is
amended to read:
10232.4. (a) In making a solicitation to a particular person and
in negotiating with that person to make a loan secured by real
property or to purchase a real property sales contract or a note
secured by a deed of trust, a real estate broker shall deliver to the
person solicited the applicable completed statement described in
Section 10232.5 as early as practicable before he or she becomes
obligated to make the loan or purchase and, except as provided in
subdivision (c), before the receipt by or on behalf of the broker of
any funds from that person. The statement shall be signed by the
prospective lender or purchaser and by the real estate broker, or by
a real estate salesperson licensed to the broker, on the broker's
behalf. When so executed, an exact copy shall be given to the
prospective lender or purchaser, and the broker shall retain a true
copy of the executed statement for a period of three years.
(b) The requirement of delivery of a disclosure statement pursuant
to subdivision (a) shall not apply with respect to the following
persons:
(1) The prospective purchaser of a security offered under
authority of a permit issued pursuant to applicable provisions of the
Corporate Securities Law of 1968 (Division 1 (commencing with
Section 25000) of Title 4 of the Corporations Code) that require that
each prospective purchaser of a security be given a prospectus or
other form of disclosure statement approved by the department issuing
the permit.
(2) The seller of real property who agrees to take back a
promissory note of the purchaser as a method of financing all or a
part of the purchase of the property.
(3) The prospective purchaser of a security offered pursuant to
and in accordance with a regulation duly adopted by the Commissioner
of Corporations granting an exemption from qualification under the
Corporate Securities Law of 1968 for the offering if one of the
conditions of the exemption is that each prospective purchaser of the
security be given a disclosure statement prescribed by the
regulation before the prospective purchaser becomes obligated to
purchase the security.
(4) A prospective lender or purchaser, if that lender or purchaser
is any of the following:
(A) The United States or any state, district, territory, or
commonwealth thereof, or any city, county, city and county, public
district, public authority, public corporation, public entity, or
political subdivision of a state, district, territory, or
commonwealth of the United States, or any agency or corporate or
other instrumentality of any one or more of the foregoing, including
the Federal National Mortgage Association,
the Government National Mortgage Association, the
Federal Home Loan Mortgage Corporation, the Federal Housing
Administration, and the Veteran's Administration.
(B) Any bank or subsidiary thereof, bank holding company or
subsidiary thereof, trust company, savings bank or savings and loan
association or subsidiary thereof, savings bank or savings
association holding company or subsidiary thereof, credit union,
industrial bank or industrial loan company, finance lender, or
insurance company doing business under the authority of, and in
accordance with, the laws of this state, any other state, or of the
United States relating to banks, trust companies, savings banks or
savings associations, credit unions, industrial banks or industrial
loan companies, commercial finance lenders, or insurance companies,
as evidenced by a license, certificate, or charter issued by the
United States or any state, district, territory, or commonwealth of
the United States.
(C) Trustees of pension, profitsharing, or welfare fund, if the
pension, profitsharing, or welfare fund has a net worth of not less
than fifteen million dollars ($15,000,000).
(D) Any corporation with outstanding securities registered under
Section 12 of the Securities Exchange Act of 1934 or any wholly owned
subsidiary of that corporation.
(E) Any syndication or other combination of any of the entities
specified in subparagraph (A), (B), (C), or (D) which is organized to
purchase the promissory note.
(F) A licensed real estate broker engaging in the business of
selling all or part of the loan, note, or contract to a lender or
purchaser to whom no disclosure is required pursuant to this
subdivision.
(G) A licensed residential mortgage lender or servicer when acting
under the authority of that license.
(c) When the broker has custody of funds of a prospective lender
or purchaser which were received and are being maintained with the
express permission of the owner and in accordance with law, and the
broker retains the funds in an escrow depository or a trust fund
account pending receipt of the owner's express written instructions
to disburse the funds for a loan or purchase, the broker shall cause
the disclosure statement to be delivered to the owner and shall
obtain the owner's written consent to the proposed disbursement
before making the disbursement. Unless the broker has a written
agreement with the owner as provided in Section 10231.1, the broker
shall transmit to the owner not later than 25 days after receipt, all
funds then in the broker's custody for which the owner has not given
written instructions authorizing disbursement.
SEC. 13. Section 19161 of the Business and Professions Code is
amended to read:
19161. (a) All mattresses and mattress sets manufactured for sale
in this state shall be fire retardant. The bureau shall adopt
regulations no later than January 1, 2004, requiring that fire
retardant mattresses and mattress sets meet a resistance to
open-flame test that uses a pass or fail performance criteria based
on a test method developed by the bureau or that is based on ASTME
1590. If the bureau concludes that other bedding contributes to
mattress fires, the regulations shall require the other bedding to be
flame retardant under the resistance to open-flame test. If
feasible, the bureau's regulations shall permit a manufacturer to
comply with the resistance to open-flame test by testing a small
scale version of its product. In developing these regulations, the
bureau may contract, cooperate, or otherwise share resources with
other government agencies, private organizations, or independent
contractors that it considers appropriate for purposes of reviewing
test criteria and methods, equipment specifications, and other
relevant subjects. These regulations shall become inoperative upon
the effective date of any federal law or regulation establishing an
open-flame resistance standard for these products. The bureau shall
submit a report to the Legislature on or before January 1, 2004,
summarizing its regulatory findings.
(b) Requirements for flame resistant mattresses, mattress sets, or
other bedding products shall not apply to any hotel, motel, bed and
breakfast, inn, or similar transient lodging establishment that has
an automatic fire extinguishing system that conforms to the
specifications established in Section 904.1 of Title 24 of the
California Code of Regulations.
(c) All seating furniture sold or offered for sale by an importer,
manufacturer, or wholesaler for use in this state, including any
seating furniture sold to or offered for sale for use in a hotel,
motel, or other place of public accommodation in this state, and
reupholstered furniture to which filling materials are added, shall
be fire retardant and shall be labeled in a manner specified by the
bureau.
(d) "Fire retardant," as used in this section, means a product
that meets the regulations adopted by the bureau. This does not
include furniture used exclusively for the purpose of physical
fitness and exercise.
(e) This section shall become inoperative on July 1, 2007, and, as
of January 1, 2008, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2008, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 14. Section 19161 is added to the Business and Professions
Code, to read:
19161. (a) All mattresses and mattress sets manufactured for sale
in this state shall be fire retardant. "Fire retardant," as used in
this section, means a product that meets the standards for
resistance to open-flame test adopted by the United States Consumer
Product Safety Commission and set forth in Section 1633 and following
of Title 16 of the Code of Federal Regulations. The bureau may adopt
regulations it deems necessary to implement those standards.
(b) All other bedding products that the bureau determines
contribute to mattress bedding fires shall comply with regulations
adopted by the bureau specifying that those products be resistant to
open-flame ignition.
(c) All seating furniture sold or offered for sale by an importer,
manufacturer, or wholesaler for use in this state, including any
seating furniture sold to or offered for sale for use in a hotel,
motel, or other place of public accommodation in this state, and
reupholstered furniture to which filling materials are added, shall
be fire retardant and shall be labeled in a manner specified by the
bureau. This does not include furniture used exclusively for the
purpose of physical fitness and exercise.
(d) Regulations adopted by the bureau for other bedding products
shall not apply to any hotel, motel, bed and breakfast, inn, or
similar transient lodging establishment that has an automatic fire
extinguishing system that conforms to the specifications established
in Section 904.1 of Title 24 of the California Code of Regulations.
(e) This section shall become operative on July 1, 2007.
SEC. 15. Section 22351.5 of the Business and Professions Code is
amended to read:
22351.5. (a) At the time of filing the initial certificate of
registration, the registrant shall also submit a completed Request
for Live Scan form confirming fingerprint submission to the
Department of Justice and the Federal Bureau of Investigation, in
order to verify that the registrant has not been convicted of a
felony. The clerk shall utilize the Subsequent Arrest Notification
Contract provided by the Department of Justice for notifications
subsequent to the initial certificate of registration.
(b) If, after receiving the results of the Request for Live Scan,
the clerk is advised that the registrant has been convicted of a
felony, the presiding judge of the superior court of the county in
which the certificate of registration is maintained is authorized to
review the criminal record and, unless the registrant is able to
produce a copy of a certificate of rehabilitation, expungement, or
pardon, as specified in paragraph (2) of subdivision (a) of Section
22351, notify the registrant that the registration is revoked. An
order to show cause for contempt may be issued and served upon any
person who fails to surrender a registered process server
identification card after a notice of revocation.
SEC. 16. Section 22355 of the Business and Professions Code is
amended to read:
22355. (a) The county clerk shall maintain a register of process
servers and assign a number and issue an identification card to each
process server. The county clerk shall issue a temporary
identification card, for no additional fee, to applicants who are
required to submit Request for Live Scan forms for background checks
to the Federal Bureau of Investigation and the Department of Justice.
This card shall be valid for 120 days. If clearance is received from
the Federal Bureau of Investigation and the Department of Justice
within 120 days, the county clerk shall immediately issue a permanent
identification card to the applicant. Upon request of the applicant,
the permanent identification card shall be mailed to the applicant
at his or her address of record. Upon renewal of a certificate of
registration, the same number shall be assigned, provided there is no
lapse in the period of registration.
(b) The temporary and permanent identification cards shall be 33/8
inches by 21/4 inches and shall contain at the top the title,
"Registered Process Server," followed by the registrant's name,
address, registration number, date of expiration, and county of
registration. In the case of a natural person, it shall also contain
a photograph of the registrant in the lower left corner.
SEC. 17. Section 44024.5 of the Health and Safety Code is amended
to read:
44024.5. (a) The department shall compile and maintain
statistical and emissions profiles of motor vehicles that are subject
to the motor vehicle inspection program. The department may use data
from any source, including remote sensing data and other motor
vehicle inspection program data, to develop and confirm the validity
of the profiles.
(b) The department, in cooperation with the state board, shall
perform periodic analyses of the statistical and emissions profiles
created pursuant to subdivision (a). The department and the state
board, in consultation with the Inspection and Maintenance Review
Committee, may determine that, in addition to the vehicles excepted
pursuant to Section 44011, certain other motor vehicles may be
excepted from the biennial certification requirements of this chapter
without significantly compromising the emission reduction objectives
set forth in the State Implementation Plan (SIP).
(c) The department may conduct a pilot program to except from the
biennial certification requirement those vehicles that may be
jointly determined by the department and the state board, after
consultation with the Inspection and Maintenance Review Committee, to
warrant exception. The department shall provide written notification
to the Legislature specifying the number of vehicles to be exempted
as well as the geographic location and duration of the pilot program
not less than 30 days prior to the implementation of the pilot
program. The department shall submit the results of the pilot program
to the state board and the Inspection and Maintenance Review
Committee for review. Subject to the approval of the United States
Environmental Protection Agency as an amendment to the SIP, the
department may establish the exception program as a permanent
program.
(d) For vehicles four model years old or less, the department
shall use test data generated pursuant to Section 44014.7 to develop
statistical and emissions profiles. The department may use data from
any source, including remote sensing data, warranty repair and recall
data, and other motor vehicle inspection program data, to develop
and confirm the validity of the data. If the department and state
board jointly determine that the emissions from a class of motor
vehicles would potentially compromise the emission reduction
objectives set forth in the SIP, the state board shall consider
appropriate corrective action, including, but not limited to, recall
pursuant to Section 43105.
SEC. 18. Section 44062.1 of the Health and Safety Code is amended
to read:
44062.1. (a) The department shall offer a repair assistance
program through entities authorized to perform referee functions.
(b) (1) The repair assistance program shall be available to the
following eligible individuals:
(A) An individual who has a maximum income level of 200 percent of
the federal poverty level, as published quarterly in the Federal
Register by the Department of Health and Human Services, and who is
either or both of the following:
(i) The owner of a motor vehicle that has failed a smog check
inspection.
(ii) The owner of a motor vehicle who was issued a notice to
correct for an alleged violation of Section 27153 or 27153.5 of the
Vehicle Code involving that vehicle, if the vehicle subject to that
notice has failed a smog check inspection subsequent to receiving the
notice.
On and after January 1, 2009, the maximum income level prescribed
for this subparagraph shall be set at 185 percent of the federal
poverty level, as published quarterly in the Federal Register by the
United States Department of Health and Human Services.
(B) An individual who is the owner of a motor vehicle that has
failed a smog check inspection and is directed to a test-only
facility pursuant to Section 44010.5 or 44014.7. If the department
determines that applications for repair assistance exceed the amount
of funds available, to the maximum extent possible, applications from
low-income motor vehicle owners shall be given priority over other
applications.
(2) The department shall offer repair cost assistance, funded by
the High Polluter Repair or Removal Account in the Vehicle Inspection
and Repair Fund created pursuant to subdivision (a) of Section
44091, to individuals based on the cost-effectiveness and air quality
benefit of the needed repair. Repair assistance may include
retesting costs and the costs of repairs to remedy the violation of
Section 27153 or 27153.5 of the Vehicle Code.
(3) An applicant for repair assistance shall file an application
on a form prescribed by the department and shall certify under
penalty of perjury that the applicant meets the applicable
eligibility standards.
(4) Verification of income eligibility shall be based on at least
one form of documentation, as determined by the department,
including, but not limited to, (A) an income tax return, (B) an
employment warrant, or (C) a form of public assistance verification.
(c) The repair assistance program shall be funded by the High
Polluter Repair or Removal Account.
(d) Repairs to motor vehicles that fail smog check inspections and
are subsidized by the state through the program shall be performed
at a repair station licensed and certified pursuant to Sections 44014
and 44014.2. Repair shall be based upon a preapproved list of
repairs for cost-effective emission reductions or repairs to remedy a
violation of Section 27153 or 27153.5 of the Vehicle Code.
(e) The qualified low-income motor vehicle owner receiving repair
assistance pursuant to this section shall contribute a copayment, as
determined by the department as specified in Section 44017.1, either
in cash, or in emissions-related partial repairs as verified by a
test-only station pursuant to paragraph (2) of subdivision (c) of
Section 44015, or a combination thereof. For an owner of a motor
vehicle described in subparagraph (B) of paragraph (1) of subdivision
(b), the department shall impose a copayment at least equivalent to
the amount imposed on a low-income individual receiving assistance
under this section. If the repair cost exceeds the applicable repair
cost limit, the department shall inform a motor vehicle owner of all
options for compliance at the time of testing and repair.
(f) The department may increase its contribution toward the repair
of a motor vehicle under this program in excess of the amount
authorized for the repair of a high-polluter pursuant to paragraph
(1) of subdivision (b) of Section 44094, if the department determines
that the expenditure is cost effective.
(g) Notwithstanding subparagraph (A) of subdivision (b), the
department may increase the maximum income level of a low-income
motor vehicle owner under this program from the amount specified in
this section, not to exceed 225 percent of the federal poverty level,
if the department determines that the increase is capable of being
supported within existing budget allocations.
(h) The department shall collect data from the program to provide
information on how to improve the program. Data collection shall
include all of the following:
(1) The number of motor vehicle owners that are eligible for
repair assistance.
(2) The number of eligible motor vehicle owners that use repair
assistance funds.
(3) The potential for fraud.
(4) The average repair bills.
(5) The types of repairs being done.
(6) The amount of partial repairs done prior to receipt of repair
assistance.
(7) The emissions benefits of providing repair assistance.
(i) For purposes of this section, "low-income motor vehicle owner"
means a person whose income does not exceed 200 percent of the
federal poverty level.
SEC. 18.5. Section 44062.1 of the Health and Safety Code is
amended to read:
44062.1. (a) The department shall offer a repair assistance
program through entities authorized to perform referee functions.
(b) (1) The repair assistance program shall be available to
an individual who has a maximum income level of 200 percent of
the federal poverty level, as published quarterly in the Federal
Register by the Department of Health and Human Services, and who is
either or both of the following:
(A) The owner of a motor vehicle that has failed a smog check
inspection.
(B) The owner of a motor vehicle who was issued a notice to
correct for an alleged violation of Section 27153 or 27153.5 of the
Vehicle Code involving that vehicle, if the vehicle subject to that
notice has failed a smog check inspection subsequent to receiving the
notice.
On and after January 1, 2009, the maximum income level prescribed
for this paragraph shall be set at 185 percent of the federal poverty
level, as published quarterly in the Federal Register by the United
States Department of Health and Human Services.
(2) The department shall offer repair cost assistance, funded by
the High Polluter Repair or Removal Account in the Vehicle Inspection
and Repair Fund created pursuant to subdivision (a) of Section
44091, to individuals based on the cost-effectiveness and air quality
benefit of the needed repair. Repair assistance may include
retesting costs and the costs of repairs to remedy the violation of
Section 27153 or 27153.5 of the Vehicle Code.
(3) An applicant for repair assistance shall file an application
on a form prescribed by the department and shall certify under
penalty of perjury that the applicant meets the applicable
eligibility standards.
(4) Verification of income eligibility shall be based on at least
one form of documentation, as determined by the department,
including, but not limited to, (A) an income tax return, (B) an
employment warrant, or (C) a form of public assistance verification.
(c) The repair assistance program shall be funded by the High
Polluter Repair or Removal Account.
(d) Repairs to motor vehicles that fail smog check inspections and
are subsidized by the state through the program shall be performed
at a repair station licensed and certified pursuant to Sections 44014
and 44014.2. Repair shall be based upon a preapproved list of
repairs for cost-effective emission reductions or repairs to remedy a
violation of Section 27153 or 27153.5 of the Vehicle Code.
(e) The qualified low-income motor vehicle owner receiving repair
assistance pursuant to this section shall contribute a copayment, as
determined by the department as specified in Section 44017.1, either
in cash, or in emissions-related partial repairs as verified by a
test-only station pursuant to paragraph (2) of subdivision (c) of
Section 44015, or a combination thereof. If the repair cost exceeds
the applicable repair cost limit, the department shall inform a motor
vehicle owner of all options for compliance at the time of testing
and repair.
(f) The department may increase its contribution toward the repair
of a motor vehicle under this program in excess of the amount
authorized for the repair of a high-polluter pursuant to paragraph
(1) of subdivision (b) of Section 44094, if the department determines
that the expenditure is cost effective.
(g) (1) For the repair of a motor vehicle that has failed the
visible smoke test component of a smog check inspection, the
department may pay up to 90 percent of the total cost of repair, as
determined by the department, but the payment shall not exceed one
thousand five hundred dollars ($1,500).
(2) If the total estimated cost of repair of a motor vehicle that
has failed the visible smoke test component of a smog check
inspection is greater than its fair market value, as determined by
the department, the department shall pay at least 50 percent, but not
more than 90 percent, of the total cost of repair, but in no case
more than one thousand five hundred dollars ($1,500).
(h) Notwithstanding paragraph (1) of subdivision (b), the
department may increase the maximum income level of a low-income
motor vehicle owner under this program from the amount specified in
this section, not to exceed 225 percent of the federal poverty level,
if the department determines that the increase is capable of being
supported within existing budget allocations.
(i) The department shall collect data from the program to provide
information on how to improve the program. Data collection shall
include all of the following:
(1) The number of motor vehicle owners that are eligible for
repair assistance.
(2) The number of eligible motor vehicle owners that use repair
assistance funds.
(3) The potential for fraud.
(4) The average repair bills.
(5) The types of repairs being done.
(6) The amount of partial repairs done prior to receipt of repair
assistance.
(7) The emissions benefits of providing repair assistance.
(j) For purposes of this section, "low-income motor vehicle owner"
means a person whose income does not exceed 200 percent of the
federal poverty level.
SEC. 19. Section 18.5 of this bill incorporates amendments to
Section 44062.1 of the Health and Safety Code proposed by both this
bill and AB 1870. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2007, (2)
each bill amends Section 44062.1 of the Health and Safety Code, and
(3) this bill is enacted after AB 1870, in which case Section 18 of
this bill shall not become operative.
SEC. 20. 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.