Amended in Senate August 13, 2014

Amended in Assembly April 24, 2014

Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2740


Introduced by Assembly Member Bonilla

(Principal coauthor: Senator Lieu)

February 26, 2014


An act to amendbegin delete Section 9810end deletebegin insert Sectionend insertbegin inserts 9810, 9812.5, 9830.5, 9832.5, 9847.5, 9849, 9851, 9853, 9855.9, 9860, 9862.5, and 9863end insert of the Business and Professions Code, relating to consumer affairs.

LEGISLATIVE COUNSEL’S DIGEST

AB 2740, as amended, Bonilla. Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation.

Existingbegin insert 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. Existingend insert law establishes thebegin delete Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulationend deletebegin insert bureauend insert 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.begin delete Existingend deletebegin insert Under existingend insert lawbegin delete requiresend delete the Governorbegin insert is requiredend insert to appoint a chief of the bureau to serve under the direction and supervision of the director, as specified.

This bill wouldbegin insert extend the operation of the act to January 1, 2019, and wouldend insert 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subject to review by the appropriate policy committees of the Legislature as if these provisions were scheduled to be repealed on January 1, 2019.begin insert By extending the operation of some of these provisions, the violation of which is a crime, the bill would impose a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.end insert

begin insert

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.

end insert
begin insert

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

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

(a) The Legislature finds and declares all of the
2following:

3(1) The Bureau of Electronic and Appliance Repair, Home
4Furnishings, and Thermal Insulation is within the Department of
5Consumer Affairs, its mission is “to protect and serve consumers
6while ensuring a competent and fair marketplace,” and its mandate
7includes making protection of the public its highest priority in
8exercising its licensing, regulatory, and disciplinary functions.

9(2) The California Bureau of Home Furnishings and Thermal
10Insulation was established in 1911 in Assembly Bill 547 (Ch. 73,
11Stats. 1911) in response to unscrupulous manufacturing practices
12in the mattress industry, which contributed to the fires following
13the 1906 San Francisco earthquake.

14(3) The California Bureau of Electronic and Appliance Repair
15was established in 1963 under the Electronic and Appliance Repair
16Dealer Registration Law in Senate Bill 1292 (Ch. 1492, Stats.
171963) in response to growing concerns to consumers and law
18enforcement agencies about fraud and negligence in the television
19repair industry.

P3    1(4) In 2009, Assembly Bill 20 (Chapter 18 of the Fourth
2Extraordinary Session of the Statutes of 2009), officially merged
3the Bureau of Home Furnishings and Thermal Insulation with the
4Bureau of Electronic and Appliance Repair together to create the
5Bureau of Electronic and Appliance Repair, Home Furnishings,
6and Thermal Insulation.

7(5) Today, the bureau licenses and regulates over 40,000
8businesses, including businesses that engage in the repair of
9electronics and appliances, the sale and administration of service
10contracts, and the manufacture, sale, or maintenance of upholstered
11home furnishings, bedding, and thermal insulation. In addition,
12the bureau adopts regulations and ensures compliance with the
13law; inspects businesses and conducts investigations; conducts
14research on, develops standards for, and tests upholstered furniture,
15bedding, and thermal insulation products to confirm they meet
16specified standards; handles consumer complaints; and initiates
17disciplinary action against businesses that violate statutory or
18regulatory requirements.

19(6) On March 10, 2014, the Assembly Business, Professions
20and Consumer Protection Committee and the Senate Business,
21Professions and Economic Development Committee (the
22committees) held a joint oversight sunset hearing and prepared a
23background paper on the bureau.

24(7) While the hearing and the background paper found the
25bureau in good standing, it also identified areas for followup and
26requested the bureau to report back to the committees on specific
27issues, which include all of the following:

28(A) While the bureau is in good fiscal standing, its revenues are
29projected to stay the same over the next few years and the cost of
30doing business is projected to rise over time, potentially leading
31to a long-term deficit. The bureau should report to the committees
32any planned efforts to increase its revenues and reduce its
33expenditures, and whether, or when, it might seek a statutory fee
34increase in the future.

35(B) For the 2013-14 fiscal year, the Bureau’s Electronic and
36Appliance Repair Fund and the Home Furnishings and Thermal
37Insulation Fund are expected to spend roughly 37 percent and 19
38 percent of their budgets, respectively, on the pro rata costs to the
39department. The bureau should advise the committees about the
40bases upon which pro rata costs are calculated, and whether it
P4    1could achieve cost savings by dealing with more of its consumer
2complaints in-house.

3(C) Currently, electronic and appliance repair and thermal
4insulation licenses are renewed annually, and home furnishings
5licenses are renewed biennially. The bureau should examine the
6pros and cons of requiring biennial renewals instead of annual
7license renewals for all licensees.

8(D) In its last sunset review report in 1995, the department
9studied both the electronic and appliance repair market and the
10home furnishings and thermal insulation market to determine
11whether regulatory activities were appropriate, necessary, and
12should be continued, and recommended areas of deregulation and
13areas to monitor in order to better target resources and evaluate
14consumer risk and impact. The bureau should conduct market
15condition assessments to study both of these markets and determine
16if current statutes and regulations reflect the needs of the markets,
17where risk to consumers is the greatest, where resources could be
18refocused or expanded, and whether continued regulation is clearly
19necessary across all segments of these markets.

20(E) The bureau issues a separate furniture retailer license,
21bedding retailer license, combination furniture and bedding retailer
22license, sanitizer license, and custom upholsterer license. The
23bureau may consider whether it should consolidate any of its
24licenses, and whether it should continue to regulate, or issue,
25stand-alone licenses to sanitizers and custom upholsterers.

26(F) The bureau has reported high product failure rates, which
27are primarily attributed to technical violations of flammability,
28product labeling, and feather and down standards. The bureau
29should reexamine its testing protocols to ensure that it has the
30information it needs to appropriately identify areas of highest risk
31to consumers, and reexamine its standards, especially feather and
32down and product labeling standards, to determine if some
33standards could be relaxed, presuming there is no appreciable
34impact on consumer safety, whether standards should be clarified
35or better advertised, or whether penalties for violations are too low
36to act as a proper deterrent.

37(G) The bureau is scheduled to go live on the department’s
38BreEZe system in late 2015. The bureau should update the
39committees on the status of its implementation of BreEZe,
P5    1including whether the system will accommodate the bureau’s
2current and future needs.

3(b) It is the intent of the Legislature that the bureau examine
4and respond to the issues and recommendations specified in
5subparagraphs (A) to (G), inclusive, of paragraph (7) of subdivision
6(a) that were identified in the background paper, and report back
7to the committees bybegin delete March 1, 2015,end deletebegin insert July 1, 2015,end insert with its findings.

8

SEC. 2.  

Section 9810 of the Business and Professions Code is
9amended to read:

10

9810.  

(a) There is in the Department of Consumer Affairs a
11Bureau of Electronic and Appliance Repair, Home Furnishings,
12and Thermal Insulation, under the supervision and control of the
13director. The director shall administer and enforce the provisions
14of this chapter and Chapter 3 (commencing with Section 19000)
15of Division 8.

16(b) The Governor shall appoint, subject to confirmation by the
17Senate, a chief of the bureau at a salary to be fixed and determined
18by the director with the approval of the Director of Finance. The
19chief shall serve under the direction and supervision of the director
20and at the pleasure of the Governor.

21(c) Every power granted to or duty imposed upon the director
22under this chapter and Chapter 3 (commencing with Section 19000)
23of Division 8 may be exercised or performed in the name of the
24director by a deputy or assistant director or by the chief, subject
25to conditions and limitations that the director may prescribe.

26(d) Whenever the laws of this state refer to the Bureau of
27Electronic Repair Dealer Registration or the Bureau of Electronic
28and Appliance Repair, the reference shall be construed to be to the
29Bureau of Electronic and Appliance Repair, Home Furnishings,
30and Thermal Insulation.

31(e) Notwithstanding any other law, the powers and duties of the
32Bureau of Electronic and Appliance Repair, Home Furnishings,
33and Thermal Insulation, as set forth in this chapter and Chapter 3
34(commencing with Section 19000) of Division 8, shall be subject
35to review by the appropriate policy committees of the Legislature.
36The review shall be performed as if this chapter and Chapter 3
37(commencing with Section 19000) of Division 8 were scheduled
38to be repealed on January 1, 2019.

39begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 9812.5 of the end insertbegin insertBusiness and Professions Codeend insert
40begin insert is amended to read:end insert

P6    1

9812.5.  

The director shall gather evidence of violations of this
2chapter and of any regulation established hereunder by any service
3contractor, whether registered or not, and by any employee, partner,
4officer, or member of any service contractor. The director shall,
5on his or her own initiative, conduct spot check investigations of
6service contractors throughout the state on a continuous basis. This
7section shall remain in effect only until January 1,begin delete 2015,end deletebegin insert 2019,end insert and
8as of that date is repealed, unless a later enacted statute, that is
9enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends that date.

10begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 9830.5 of the end insertbegin insertBusiness and Professions Codeend insert
11begin insert is amended to read:end insert

12

9830.5.  

begin insert(a)end insertbegin insertend insert Each service contractor shall pay the fee required
13by this chapter for each place of business operated by him or her
14in this state and shall register with the bureau upon forms
15prescribed by the director. The forms shall contain sufficient
16information to identify the service contractor, including name,
17address, retail seller’s permit number, if a permit is required under
18the Sales and Use Tax Law (Part 1 (commencing with Section
196001) of Division 2 of the Revenue and Taxation Code), a copy
20of the certificate of qualification as filed with the Secretary of State
21if the service contractor is a foreign corporation, and other
22identifying data to be prescribed by the bureau. If the business is
23to be carried on under a fictitious name, that fictitious name shall
24be stated. If the service contractor is a partnership, identifying data
25shall be stated for each partner. If the service contractor is a private
26company that does not file an annual report on Form 10-K with
27the Securities and Exchange Commission, data shall be included
28for each of the officers and directors of the company as well as for
29the individual in charge of each place of the service contractor’s
30business in the State of California, subject to any regulations the
31director may adopt. If the service contractor is a publicly held
32corporation or a private company that files an annual report on
33Form 10-K with the Securities and Exchange Commission, it shall
34be sufficient for purposes of providing data for each of the officers
35and directors of the corporation or company to file with the director
36the most recent annual report on Form 10-K that is filed with the
37Securities and Exchange Commission.

begin delete

38A

end delete

39begin insert(b)end insertbegin insertend insertbegin insertA end insertservice contractor who does not operate a place of business
40in this state but who sells, issues, or administers service contracts
P7    1in this state, shall hold a valid registration issued by the bureau
2and shall pay the registration fee required by this chapter as if he
3or she had a place of business in this state.

begin delete

4This

end delete

5begin insert(c)end insertbegin insertend insertbegin insertThisend insert section shall remain in effect only until January 1,begin delete 2015,end delete
6begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
7that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
8that date.

9begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 9832.5 of the end insertbegin insertBusiness and Professions Codeend insert
10begin insert is amended to read:end insert

11

9832.5.  

(a) Registrations issued under this chapter shall expire
12no more than 12 months after the issue date. The expiration date
13of registrations shall be set by the director in a manner to best
14distribute renewal procedures throughout the year.

15(b) To renew an unexpired registration, the service contractor
16shall, on or before the expiration date of the registration, apply for
17renewal on a form prescribed by the director, and pay the renewal
18fee prescribed by this chapter.

19(c) To renew an expired registration, the service contractor shall
20apply for renewal on a form prescribed by the director, pay the
21renewal fee in effect on the last regular renewal date, and pay all
22accrued and unpaid delinquency and renewal fees.

23(d) Renewal is effective on the date that the application is filed,
24the renewal fee is paid, and all delinquency fees are paid.

25(e) For purposes of implementing the distribution of the renewal
26of registrations throughout the year, the director may extend, by
27not more than six months, the date fixed by law for renewal of a
28registration, except that, in that event, any renewal fee that may
29be involved shall be prorated in such a manner that no person shall
30be required to pay a greater or lesser fee than would have been
31required had the change in renewal dates not occurred.

32(f) This section shall remain in effect only until January 1,begin delete 2015,end delete
33begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
34which is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
35that date.

36begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 9847.5 of the end insertbegin insertBusiness and Professions Codeend insert
37begin insert is amended to read:end insert

38

9847.5.  

begin insert(a)end insertbegin insertend insert Each service contractor shall maintain those
39records as are required by the regulations adopted to carry out the
40provisions of this chapter for a period of at least three years. These
P8    1records shall be open for reasonable inspection by the director or
2other law enforcement officials.

begin delete

3This

end delete

4begin insert(b)end insertbegin insertend insertbegin insertThis end insertsection shall remain in effect only until January 1,begin delete 2015,end delete
5begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
6that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
7that date.

8begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 9849 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
9as amended by Section 99 of Chapter 332 of the Statutes of 2012,
10is amended to read:end insert

11

9849.  

begin insert(a)end insertbegin insertend insert The expiration of a valid registration shall not
12deprive the director of jurisdiction to proceed with any
13investigation or hearing on a cease and desist order against a service
14dealer or service contractor or to render a decision to suspend,
15revoke, or place on probation a registration.

begin delete

16This

end delete

17begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall remain in effect only until January 1,begin delete 2015,end delete
18begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
19that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
20that date.

21begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 9849 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
22as amended by Section 100 of Chapter 332 of the Statutes of 2012,
23is amended to read:end insert

24

9849.  

begin insert(a)end insertbegin insertend insert The expiration of a valid registration shall not
25deprive the director of jurisdiction to proceed with any
26investigation or hearing on a cease and desist order against a service
27dealer or to render a decision to suspend, revoke, or place on
28probation a registration.

begin delete

29This

end delete

30begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall become operative on January 1,begin delete 2015.end delete
31begin insert 2019.end insert

32begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 9851 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
33as amended by Section 101 of Chapter 332 of the Statutes of 2012,
34is amended to read:end insert

35

9851.  

begin insert(a)end insertbegin insertend insert The superior court in and for the county wherein
36any person carries on, or attempts to carry on, business as a service
37dealer or service contractor in violation of the provisions of this
38chapter, or any regulation thereunder, shall, on application of the
39director, issue an injunction or other appropriate order restraining
40that conduct.

begin delete

P9    1The

end delete

2begin insert(b)end insertbegin insertend insertbegin insertTheend insert proceedings under this section shall be governed by
3Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of
4the Code of Civil Procedure, except that the director shall not be
5required to allege facts necessary to show or tending to show lack
6of an adequate remedy at law or irreparable injury.

begin delete

7This

end delete

8begin insert(c)end insertbegin insertend insertbegin insertThisend insert section shall remain in effect only until January 1,begin delete 2015,end delete
9begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
10that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
11that date.

12begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 9851 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
13as amended by Section 102 of Chapter 332 of the Statutes of 2012,
14is amended to read:end insert

15

9851.  

begin insert(a)end insertbegin insertend insert The superior court in and for the county wherein
16any person carries on, or attempts to carry on, business as a service
17dealer in violation of the provisions of this chapter, or any
18regulation thereunder, shall, on application of the director, issue
19an injunction or other appropriate order restraining that conduct.

begin delete

20The

end delete

21begin insert(b)end insertbegin insertend insertbegin insertTheend insert proceedings under this section shall be governed by
22Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of
23the Code of Civil Procedure, except that the director shall not be
24required to allege facts necessary to show or tending to show lack
25of an adequate remedy at law or irreparable injury.

begin delete

26This

end delete

27begin insert(c)end insertbegin insertend insertbegin insertThis end insertsection shall become operative on January 1,begin delete 2015.end delete
28begin insert 2019.end insert

29begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 9853 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
30as amended by Section 103 of Chapter 332 of the Statutes of 2012,
31is amended to read:end insert

32

9853.  

begin insert(a)end insertbegin insertend insert A plea or verdict of guilty or a conviction following
33a plea of nolo contendere made to a charge substantially related
34to the qualifications, functions, and duties of a service dealer or
35service contractor is deemed to be a conviction within the meaning
36of this article. The director may suspend, revoke, or place on
37probation a registration, or may deny registration, when the time
38for appeal has elapsed, or the judgment of conviction has been
39affirmed on appeal or when an order granting probation is made
40suspending the imposition of sentence, irrespective of a subsequent
P10   1order under Section 1203.4 of the Penal Code, allowing that person
2to withdraw his or her plea of guilty and to enter a plea of not
3guilty, or setting aside the verdict of guilty, or dismissing the
4accusation, information, or indictment.

begin delete

5This

end delete

6begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall remain in effect only until January 1,begin delete 2015,end delete
7begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
8that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
9that date.

10begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 9853 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
11as amended by Section 104 of Chapter 332 of the Statutes of 2012,
12is amended to read:end insert

13

9853.  

begin insert(a)end insertbegin insertend insert A plea or verdict of guilty or a conviction following
14a plea of nolo contendere made to a charge substantially related
15to the qualifications, functions, and duties of a service dealer is
16deemed to be a conviction within the meaning of this article. The
17director may suspend, revoke, or place on probation a registration,
18or may deny registration, when the time for appeal has elapsed, or
19the judgment of conviction has been affirmed on appeal or when
20an order granting probation is made suspending the imposition of
21sentence, irrespective of a subsequent order under Section 1203.4
22of the Penal Code allowing that person to withdraw his or her plea
23of guilty and to enter a plea of not guilty, or setting aside the verdict
24of guilty, or dismissing the accusation, information, or indictment.

begin delete

25This

end delete

26begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall become operative on January 1,begin delete 2015.end delete
27begin insert 2019.end insert

28begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 9855.9 of the end insertbegin insertBusiness and Professions Codeend insert
29begin insert is amended to read:end insert

30

9855.9.  

This article shall remain in effect only until January
311,begin delete 2018,end deletebegin insert 2019,end insert and as of that date is repealed, unless a later enacted
32statute, that is enacted before January 1,begin delete 2018,end deletebegin insert 2019,end insert deletes or
33extends that date.

34begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 9860 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
35as amended by Section 105 of Chapter 332 of the Statutes of 2012,
36is amended to read:end insert

37

9860.  

begin insert(a)end insertbegin insertend insert The director shall establish procedures for accepting
38complaints from the public against any service dealer or service
39contractor.

begin delete

40This

end delete

P11   1begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall remain in effect only until January 1,begin delete 2015,end delete
2begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
3that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
4that date.

5begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 9860 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
6as amended by Section 106 of Chapter 332 of the Statutes of 2012,
7is amended to read:end insert

8

9860.  

begin insert(a)end insertbegin insertend insert The director shall establish procedures for accepting
9complaints from the public against any service dealer.

begin delete

10This

end delete

11begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall become operative on January 1,begin delete 2015.end delete
12begin insert 2019.end insert

13begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 9862.5 of the end insertbegin insertBusiness and Professions Codeend insert
14begin insert is amended to read:end insert

15

9862.5.  

begin insert(a)end insertbegin insertend insert If a complaint indicates a possible violation of
16this chapter or of the regulations adopted pursuant to this chapter,
17the director may advise the service contractor of the contents of
18the complaint and, if the service contractor is so advised, the
19director shall make a summary investigation of the facts after the
20service contractor has had reasonable opportunity to reply thereto.

begin delete

21This

end delete

22begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall remain in effect only until January 1,begin delete 2015,end delete
23begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
24that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
25that date.

26begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 9863 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
27as amended by Section 108 of Chapter 332 of the Statutes of 2012,
28is amended to read:end insert

29

9863.  

begin insert(a)end insertbegin insertend insert If, upon summary investigation, it appears probable
30to the director that a violation of this chapter, or the regulations
31thereunder, has occurred, the director, in his or her discretion, may
32suggest measures that in the director’s judgment would compensate
33the complainant for the damages he or she has suffered as a result
34of the alleged violation. If the service dealer or service contractor
35accepts the director’s suggestions and performs accordingly, the
36director shall give that fact due consideration in any subsequent
37disciplinary proceeding. If the service dealer or service contractor
38declines to abide by the suggestions of the director, the director
39may investigate further and may institute disciplinary proceedings
40in accordance with the provisions of this chapter.

begin delete

P12   1This

end delete

2begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall remain in effect only until January 1,begin delete 2015,end delete
3begin insert 2019,end insert and as of that date is repealed, unless a later enacted statute,
4that is enacted before January 1,begin delete 2015,end deletebegin insert 2019,end insert deletes or extends
5that date.

6begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 9863 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
7as amended by Section 109 of Chapter 332 of the Statutes of 2012,
8is amended to read:end insert

9

9863.  

begin insert(a)end insertbegin insertend insert If, upon summary investigation, it appears probable
10to the director that a violation of this chapter, or the regulations
11thereunder, has occurred, the director, in his or her discretion, may
12suggest measures that in the director’s judgment would compensate
13the complainant for the damages he or she has suffered as a result
14of the alleged violation. If the service dealer accepts the director’s
15suggestions and performs accordingly, the director shall give that
16fact due consideration in any subsequent disciplinary proceeding.
17If the service dealer declines to abide by the suggestions of the
18director, the director may investigate further and may institute
19disciplinary proceedings in accordance with the provisions of this
20chapter.

begin delete

21This

end delete

22begin insert(b)end insertbegin insertend insertbegin insertThisend insert section shall become operative on January 1,begin delete 2015.end delete
23begin insert 2019.end insert

24begin insert

begin insertSEC. 19.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
25to Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.

end insert


O

    96