BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1773|
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                                    CONSENT


          Bill No:  AB 1773
          Author:   Mendoza (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  9-0, 6/22/10
          AYES:  Wright, Harman, Calderon, Denham, Florez, Negrete  
            McLeod, Padilla, Price, Yee
          NO VOTE RECORDED:  Oropeza, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  74-0, 4/29/10 - See last page for vote


           SUBJECT  :    State Fire Marshal:  inspections and licensing

           SOURCE  :     Author


           DIGEST  :    This bill authorizes the State Fire Marshal to  
          issue civil penalties wholly or partially in lieu of  
          suspending the license of an individual or business that  
          violates fireworks and portable fire extinguisher and  
          automatic extinguisher laws.

           ANALYSIS  :    Existing law provides for the licensing by the  
          State Fire Marshall (SFM) of persons to engage in various  
          activities relating to the sale or use of fireworks, and  
          the servicing of portable fire extinguishers and automatic  
          extinguisher systems.

                                                           CONTINUED





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          This bill:

          1. Enables the SFM to issue civil penalties for fireworks  
             and portable fire extinguisher and automatic  
             extinguisher violations wholly or partially in lieu of  
             taking a licensing action. 
           
          2. Makes it explicit that the provisions of this bill shall  
             not authorize the SFM to permit a licensee to pay a  
             monetary penalty in lieu of suspension for any violation  
             that posed, or had the potential to pose, a significant  
             threat or risk of harm to the public.  

          3. Requires the SFM, in deciding whether to accept an offer  
             of payment of a monetary penalty in lieu of suspension,  
             to consider the seriousness of the violation, the  
             violator's record of compliance with the law, the impact  
             on the licensee, the licensee's employees, or customers,  
             and other factors deemed relevant.

          4. Provides that if a licensee fails to pay the monetary  
             penalty in accordance with the terms and conditions set  
             by the SFM or his/her designee, the SFM may, without a  
             hearing, immediately suspend that individual's license.

          5. Places a cap on the amount of the monetary penalty  
             payable under the provisions of this bill at $250 for  
             each day of suspension stayed or a $10,000 per decision  
             regardless of the number of days of suspension stayed  
             under the decision.

          6. Stipulates that any monetary penalties received pursuant  
             to this bill shall be deposited in the SFM Licensing and  
             Certification Fund.

          7. Requires the SFM to make available to the public, on or  
             before March 1 of each year, data showing the percentage  
             of enforcement actions taken pursuant to the provisions  
             of this bill that resulted in license suspension or the  
             assessment of monetary penalties. 

           Comments
           
          Prior to January 1, 2008, the SFM was authorized to levy a  







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          monetary penalty in lieu of administrative license  
          suspensions, AB 2401 (Harman), Chapter 424, Statutes of  
          2004.  However, due to a sunset provision contained in AB  
          2401 of 2004, the SFM is not authorized to use monetary  
          fines as an enforcement tool.  This bill essentially  
          reinstates those provisions thus enabling the SFM to levy  
          monetary penalties in lieu of suspension relative to the  
          Fireworks program, the Portable Fire Extinguisher program  
          and the Automatic Extinguishing System program.  The  
          author's office states that during the period of time these  
          sections were in statute they were effective and served  
          both the industry and the SFM in a positive manner.

          The author's office points out that due to the sunset of AB  
          2401 of 2004, the SFM is faced with the dilemma of either  
          suspending a license/certification at a significant cost to  
          both the business and the state, or opting to take no  
          action and potentially allow infractions to continue.  The  
          author's office emphasizes that this bill gives the SFM the  
          authority to levy monetary penalties without unnecessarily  
          suspending a license or certificate in cases of minor  
          infractions.

           Prior/Related Legislation
          
           AB 2401 (Harman) Chapter 424, Statutes of 2004, authorizes  
          the SFM, until January 1, 2008, to impose a specified  
          monetary penalty in lieu of suspending the license or  
          certificate of individuals or businesses that violated  
          laws.

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

           SUPPORT  :   (Verified  8/2/10)

          Arrow Fire Protection
          California Association of Life Safety and Fire Equipment
          California Department of Forestry and Fire Protection 
          FireMaster
          Jorgensen Company
          Office of Los Angeles Mayor Antonio R. Villaraigosa
          Orange County Fire Protection
          Solon Fire Control







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           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Knight, Lieu, Logue, Ma,  
            Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Tran, Villines,  
            Yamada, John A. Perez
          NO VOTE RECORDED:  Bass, Caballero, Jones, Bonnie  
            Lowenthal, Torrico, Vacancy


          TSM:do  8/2/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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