BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2740
          Author:   Bonilla (D), et al.
          Amended:  8/13/14 in Senate
          Vote:     21


           SENATE BUSINESS, PROF. & ECON. DEV. COMM.  :  8-0, 6/23/14
          AYES:  Lieu, Wyland, Berryhill, Corbett, Galgiani, Hernandez,  
            Hill, Torres
          NO VOTE RECORDED:  Block

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  73-0, 5/8/14 (Consent) - See last page for vote


           SUBJECT  :    Bureau of Electronic and Appliance Repair, Home  
          Furnishings, and Thermal Insulation

           SOURCE :     Author


           DIGEST  :    This bill subjects the powers and duties of the  
          Bureau of Electronic and Appliance Repair, Home Furnishings and  
          Thermal Insulation (Bureau) to review by the appropriate policy  
          committees of the Legislature as if these provisions were  
          scheduled to be repealed on January 1, 2019; requests the Bureau  
          to report on specified issues by July 1, 2015; and extends the  
          repeal dates for the Electronic and Appliance Repair Dealer  
          Registration Law (EARDRL) to correspond with the sunset review  
          dates this bill places upon the Bureau.

           Senate Floor Amendments  of 8/13/14 (1) extend the sunset date  
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          for registration, investigation, and enforcement of service  
          contractors and service dealers under the EARDRL from January 1,  
          2015, to January 1, 2019, and (2) extend the time for the  
          Bureau's report to the Legislature to July 1, 2015.

          ANALYSIS  :    

          Existing law:

          1.Establishes the Bureau within the Department of Consumer  
            Affairs (DCA), and places the Bureau under the supervision and  
            control of the DCA Director.

          2.Establishes a Chief of the Bureau who is appointed by the  
            Governor, subject to confirmation of the Senate, and provides  
            that the Chief shall serve under the direction and supervision  
            of the Director and at the pleasure of the Governor, and  
            authorizes the Chief to carry out every power or duty imposed  
            upon the Director relative to the Bureau's activities.

          3.Establishes the Bureau, which licenses and regulates  
            manufacturers, sellers, importers, upholsterers, and  
            sanitizers of home furnishings, including upholstered  
            furniture and bedding and thermal insulation.  The Bureau  
            further licenses and regulates electronics and appliance  
            repair dealers and service contract sellers and administrators  
            under the EARDRL.  By operation of law, the EARDRL is  
            scheduled to be repealed on January 1, 2015.

          This bill:

          1.Subjects the powers and duties of the Bureau to review by the  
            appropriate policy committees of the Legislature as if these  
            provisions were scheduled to be repealed on January 1, 2019.

          2.Makes legislative findings and declarations relating to the  
            Bureau's creation, jurisdiction, and the joint sunset  
            oversight hearing, and to issues and recommendations that were  
            raised regarding the Bureau, including:

             A.   Reporting on the Bureau's long-term fiscal outlook and  
               any planned efforts to increase revenues and reduce  
               expenditures; 


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             B.   Advising the committees on its pro rata costs and  
               whether the Bureau could achieve cost savings by handling  
               more consumer complaints in house;

             C.   Examining the pros and cons of biennial license renewals  
               for licensees of the Bureau;

             D.   Conducting market condition assessments for the  
               electronic, and appliance repair and home furnishings and  
               thermal insulation markets to determine if existing law  
               reflects the needs of the markets, where risk to consumers  
               is greatest, where resources could be refocused or  
               expanded, and whether continued regulation is necessary  
               across all segments of these markets;

             E.   Considering whether the Bureau should consolidate any of  
               its license categories, and whether it should continue to  
               regulate, or issue, standalone sanitizer and custom  
               upholsterer licenses;

             F.   Reexamining product testing protocols to ensure it has  
               the information it needs to identify areas of highest risk  
               to consumers, and reexamining product standards to  
               determine if some standards could be relaxed, when there is  
               no appreciable impact on consumer safety, or if standards  
               should be better clarified or advertised, or if penalties  
               for violations are too low to act as a proper deterrent;  
               and

             G.   Updating the committees on implementation of DCA's  
               BreEZe system.

          1.States that it is the intent of the Legislature that the  
            Bureau examine and respond to the issues and recommendations  
            identified in the Sunset background paper, and report back to  
            the committees by July 1, 2015, with its findings.  

          2.Extends the sunset date for registration, investigation, and  
            enforcement of service contractors and service dealers under  
            the EARDRL from January 1, 2015, to January 1, 2019.

           Background

           In 2014, the Senate Business, Professions and Economic  

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          Development Committee and the Assembly Business, Professions and  
          Consumer Protection Committee conducted joint oversight hearings  
          to review nine regulatory entities, among them the Bureau.

          The committees began their review of the licensing agencies in  
          March 2014 and conducted two days of hearings.  This bill, and  
          the accompanying sunset bills, are intended to implement  
          legislative changes as recommended by the committees and which  
          are reflected in the Background Papers prepared by committee  
          staff for each agency and program reviewed by the committees for  
          this year.

          Note:  For details on the issues, background, and  
          recommendations refer to the                           Senate  
          Business, Professions and Economic Development Committee  
          analysis of 6/23/14.

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


           ASSEMBLY FLOOR :  73-0, 5/8/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Grove, Hagman, Harkey, Roger Hernández, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande,  
            Olsen, Pan, Patterson, Perea, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.  
            Pérez
          NO VOTE RECORDED:  Eggman, Gorell, Gray, Hall, Mansoor, V.  
            Manuel Pérez, Vacancy


          MW:e  8/14/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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