BILL ANALYSIS Ó
AB 1175
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1175 (Ridley-Thomas) - As Amended April 14, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: This bill increases the statutory fee cap by
approximately 25 percent for each license type under the Bureau
of Electronic and Appliance Repair, Home Furnishings, and
Thermal Insulation (Bureau), except as specified. Specifically,
this bill:
AB 1175
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1)Increases by approximately 25 percent, licensure fees for the
following license types: appliance service dealers; electronic
and appliance service dealers; service contract sellers;
service contract administrators; joint service contractors and
electronic and appliance service dealers, as specified; custom
upholsters; bedding retailers; furniture retailers; bedding
and furniture retailers; importers; furniture and bedding
manufacturers; furniture and bedding wholesalers; furniture
and bedding supply dealers; sanitizers; and supply dealers.
2)Prohibits the Director of the Department of Consumer Affairs
(DCA) from adopting any regulation to increase any fees for
electronic and appliance service dealers and service
contractors licensing categories before January 1, 2017.
FISCAL EFFECT:
1)If fees are raised to the statutory maximum proposed in this
bill, the Bureau of Electronic and Appliance Repair (BEAR)
fund and Home Furnishings, and Thermal Insulation (HFTI) fund
(both special funds) would receive a combined increase in
revenues of $1.0 million in 2016-17, and $1.65 million
on-going.
Without a fee increase, the BEAR fund is projected to go
insolvent in fiscal year 2019-2020, and the HFTI fund is
projected to go insolvent in fiscal year 2017-18. The Bureau
receives no General Fund support, relying solely on fees set
by statute and collected from licensing and renewal fees. The
fees are currently at the statutory cap for the majority of
licenses, except those excluded from this bill.
AB 1175
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2)One-time minor and absorbable IT costs of approximately
$5,000.
3)One-time minor and absorbable costs to DCA to adopt
regulations and increase fees.
COMMENTS:
1)Purpose. According to the author, "The last time the Bureau's
licensing fees were raised in statute was 1978 for the
electronics and appliance industries, and 1998 for the home
furnishings and thermal insulation industries. The Bureau's
operational costs have continually increased with its
expenditures, and it is projected the Bureau will be in
deficit in Fiscal Year (FY) 2017-18, if revenues are not
increased. The Bureau has worked diligently at minimizing
operational costs and streamlining its processes for optimum
cost savings, but continued resource and overhead costs have
reached a level where increased revenues are necessary to
sustain the Bureau."
2)Background. The Bureau, housed within the DCA, licenses and
regulates over 40,000 businesses, including businesses that
engage in the repair of electronics and appliances; the sale
and administration of service contracts; and the manufacture,
sale, and repair of home furnishings and thermal insulation.
The Bureau also inspects businesses and conducts
investigations; researches and develops standards for, and
tests, home furnishings and thermal insulation products;
handles consumer complaints; and initiates disciplinary action
against businesses that violate statutory or regulatory
requirements.
AB 1175
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3)Related Prior Legislation. AB 2740 (Bonilla), Chapter 428,
Statutes of 2014, subjected the powers and duties of the
Bureau to (sunset) review by the appropriate policy committees
of the Legislature as if these provisions were scheduled to be
repealed on January 1, 2019, and requested the Bureau to
report back to the committees on specified issues by July 1,
2015.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081