BILL NUMBER: SB 780 CHAPTERED
BILL TEXT
CHAPTER 401
FILED WITH SECRETARY OF STATE AUGUST 29, 1997
APPROVED BY GOVERNOR AUGUST 29, 1997
PASSED THE SENATE AUGUST 12, 1997
PASSED THE ASSEMBLY AUGUST 11, 1997
AMENDED IN ASSEMBLY JULY 29, 1997
AMENDED IN ASSEMBLY JULY 14, 1997
AMENDED IN ASSEMBLY JULY 2, 1997
AMENDED IN ASSEMBLY MAY 29, 1997
AMENDED IN SENATE MARCH 31, 1997
INTRODUCED BY Senator Kelley
FEBRUARY 26, 1997
An act to amend Sections 146.5, 6980.23, 6980.33, 6980.48, 7504.7,
7506.9, 7506.10, 7507.10, 7507.13, 7529, 7582.13, 7583.20, 7583.32,
7593.11, 7596, 7596.7, 7598.14, 7598.17, 9810, 9830.5, 9832, 9832.5,
9847.5, 9849, 9851, 9853, 9855.2, 9855.3, 9855.9, 9860, 9862.5,
9863, 9873, 19008, 19010, 19080, 19123.4, and 19208 of, to amend,
repeal, and add Sections 6980.79, 7511, 7570, 7588, and 7599.70 of,
to add Section 9814.5 to, to repeal Section 9854 of, to add and
repeal Section 9812.5 of, and to repeal and add Sections 7558 and
7586 of, the Business and Professions Code, and to amend Sections
1791 and 1794.4 of the Civil Code, relating to consumer affairs, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 780, Kelley. Consumer affairs.
(1) Existing law provides for the existence of the Bureau of
Security and Investigative Services within the Department of Consumer
Affairs, under the supervision and control of the Director of
Consumer Affairs. The director is charged with administering the
provisions governing locksmiths, repossessors, private investigators,
private patrol operators, alarm company operators, and alarm agents.
The provisions set fees for various services, including license
applications, renewals, branch office registrations, initial
registration, and fingerprinting.
This bill would instead provide that as of July 1, 1998, these
provisions establish the maximum fees that may be charged for these
services.
(2) The Collateral Recovery Act, which governs persons engaged in
repossession of collateral, requires licensing of persons or entities
engaged in repossession, and certification of persons who are in
active control of businesses engaged in repossession. An unlicensed
or uncertified person may work with a temporary registration or
renewal registration for no more than 90 days.
This bill would extend this period to 120 days.
(3) Under existing law, a registration under the Collateral
Recovery Act expires one year following its issuance or assigned
renewal date.
This bill would provide that an initial registration expires one
year from the date of issuance, and a renewal registration expires 2
years from the date of renewal unless renewed.
(4) The Collateral Recovery Act provides that it is unlawful for a
person or financial institution to knowingly engage a nonexempt
unlicensed person to repossess collateral. However, a legal owner,
debtor, lienholder, lessor, or lessee is not guilty of a violation of
this prohibition if, at the time of the assignment, the party making
the assignment has a copy of the repossessor's valid license and
does not know of a suspension or revocation of the license. The bill
would also make related and conforming changes.
(5) Existing law provides that a license as a private
investigator, private patrol operator, alarm company operator, alarm
agent, branch office certificate, pocket card, and all registrations
issued under the Private Security Services Act, must be placed on a
cyclical renewal, expiring 2 years from the date of issuance or
assigned renewal date, according to a specified manner of
establishing renewal groups.
This bill would repeal the provisions establishing renewal groups,
and would provide that for a private investigator, security guard,
private patrol operator, alarm company operator, or alarm agent
issued a license who is also issued or renews a firearms
qualification card, the license or registration must be placed on a
renewal cycle so that the license or registration expires on the same
date as the firearms qualification card.
(6) The Private Security Services Act, the Alarm Company Act, the
Collateral Recovery Act, the Private Investigators Act, and
provisions governing locksmiths provide for the issuance of pocket
cards to persons licensed or registered under the acts. Under
existing law, the pocket cards are issued as evidence of the
licensure or registration of the holder of the card.
This bill would provide that an applicant may request to be issued
an enhanced pocket card that would be required to be made of a
durable material, and would permit the bureau to charge a fee
sufficient to reimburse costs of furnishing the pocket card not to
exceed $6. The bill would require the Department of Consumer Affairs
to issue a standard card at no cost if the applicant does not
request an enhanced pocket card. The bill would also require every
person to display a valid pocket card while engaged in any activity
for which registration or licensure is required. Because a violation
of these acts is a misdemeanor, this bill would impose a
state-mandated local program by expanding the scope of an existing
crime. With respect to licensure under the Alarm Company Act, the
bill would permit the pocket card to serve as a firearms
qualification card if so indicated on the face of the card.
The bill would also make clarifying, related, and conforming
changes.
(7) The Electronic and Appliance Repair Dealer Registration Law
provides for registration and regulation of service dealers and
service contractors by the Bureau of Electronic and Appliance Repair
in the Department of Consumer Affairs.
Provisions of existing law regulating service contractors will be
repealed on January 1, 1998. Among other things, these provisions
require persons acting as service contractors to be registered, and
provide for various criminal penalties for a violation of those
provisions.
This bill would extend the operation of these provisions until
January 1, 2003. Because the criminal penalties would be extended,
the bill would impose a state-mandated local program by expanding the
scope of a crime.
The bill would also authorize the Director of Consumer Affairs to
adopt regulations relating to service contractors, would require the
director to gather evidence of violations by service contractors, and
would make related changes.
(8) Existing law provides that a registration under the Electronic
and Appliance Repair Dealer Registration Law that is delinquent more
than 2 years may not be renewed. Existing law also requires the
bureau to design and approve a sign containing certain consumer
information to be placed in all electronic and appliance repair
locations operated by a service dealer.
This bill would delete both of these provisions and make other
related changes.
(9) The Electronic and Appliance Repair Dealer Registration Law
specifies various maximum registration fees applicable to persons
required to register with the board. The actual fees are set by the
Director of Consumer Affairs, and are paid into the State Treasury to
the credit of the Electronic and Appliance Repair Fund, which is a
continuously appropriated fund.
This bill would increase the maximum amounts at which these fees
may be set by the director, as specified, thereby making an
appropriation.
(10) The Home Furnishings and Thermal Insulation Act provides for
the licensing and regulation of certain persons in the home
furnishings and thermal insulation businesses by the Bureau of Home
Furnishings and Thermal Insulation in the Department of Consumer
Affairs, as specified. Violations of the act are punishable as
misdemeanors.
The bill would include persons who rebuild bedding within the
definition of "bedding renovator," thereby expanding the scope of the
act, and would also prohibit the rebuilding of an article of
upholstered furniture or bedding without specified labeling, thus
changing the definition of a crime and thereby imposing a
state-mandated local program. It would also make other related
changes.
(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.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 146.5 of the Business and Professions Code is
amended to read:
146.5. (a) Notwithstanding any other provision of law, a
violation of any code section listed in subdivision (c) is an
infraction subject to the procedures described in Sections 19.6 and
19.7 of the Penal Code when either of the following occur:
(1) A complaint or a written notice to appear in court pursuant to
Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of
the Penal Code is filed in court charging the offense as an
infraction unless the defendant, at the time he or she is arraigned,
after being advised of his or her rights, elects to have the case
proceed as a misdemeanor.
(2) The court, with the consent of the defendant and the
prosecution, determines that the offense is an infraction in which
event the case shall proceed as if the defendant has been arraigned
on an infraction complaint.
(b) Subdivision (a) does not apply to a violation of the code
sections listed in subdivision (c) if the defendant has had his or
her license, registration, or certificate previously revoked or
suspended.
(c) The following sections require registration, licensure,
certification, or other authorization in order to engage in certain
businesses or professions regulated by this code:
(1) Section 2630.
(2) Section 2903.
(3) Sections 3760 and 3761.
(4) Section 4825.
(5) Section 4980.
(6) Section 4996.
(7) Section 5536.
(8) Section 6704.
(9) Section 6980.10.
(10) Section 7317.
(11) Section 7502 or 7592.
(12) Section 7617 or 7641.
(13) Subdivision (a) of Section 7872.
(14) Section 8016.
(15) Section 8505.
(16) Section 8725.
(17) Section 9681.
(18) Section 9840.
(19) Section 9855.1.
(20) Section 9884.6.
(21) Subdivision (c) of Section 9891.24.
(22) Section 19049.
(d) Notwithstanding any other provision of law, a violation of any
of the sections listed in subdivision (c), which is an infraction,
is punishable by a fine of not less than two hundred fifty dollars
($250) and not more than one thousand dollars ($1,000). No portion
of the minimum fine may be suspended by the court unless as a
condition of that suspension the defendant is required to submit
proof of a current valid license, registration, or certificate for
the profession or vocation that was the basis for his or her
conviction.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 1.2. Section 6980.23 of the Business and Professions Code is
amended to read:
6980.23. The chief shall issue a pocket identification card to
the owner, partners, and officers. The chief shall determine the
form and content of the card. The pocket card shall be composed of
durable material and may incorporate technologically advanced
security features. The bureau may charge a fee sufficient to
reimburse the department for costs for furnishing the pocket card.
The fee charged may not exceed the actual cost for system
development, maintenance, and processing necessary to provide the
service, and may not exceed six dollars ($6).
SEC. 1.4. Section 6980.33 of the Business and Professions Code is
amended to read:
6980.33. A licensee shall carry a valid pocket identification
card, issued by the bureau pursuant to Section 6980.23, at all times
the licensee is engaged in the work of a locksmith, as defined in
this chapter, whether on or off the premises of the licensee's place
of business. Every person, while engaged in any activity for which
licensure is required, shall display his or her valid pocket card as
provided by regulation.
SEC. 1.6. Section 6980.48 of the Business and Professions Code is
amended to read:
6980.48. (a) Upon determining that the applicant is qualified for
registration pursuant to this chapter, the bureau shall issue a
pocket registration card to the employee. The applicant may request
to be issued an enhanced pocket card that shall be composed of
durable material and may incorporate technologically advanced
security features. The bureau may charge a fee sufficient to
reimburse the department for costs for furnishing the enhanced pocket
card. The fee charged may not exceed the actual cost for system
development, maintenance, and processing necessary to provide the
service, and may not exceed six dollars ($6). If the applicant does
not request an enhanced card, the department shall issue a standard
card at no cost to the applicant.
(b) The registrant shall carry a valid registration card issued by
the bureau under this section at all times the registrant is engaged
in the work of a locksmith whether on or off the premises of the
licensee's place of business. Every person, while engaged in any
activity for which licensure is required, shall display his or her
valid pocket card as provided by regulation.
SEC. 2. Section 6980.79 of the Business and Professions Code is
amended to read:
6980.79. The fees prescribed by this chapter are those fixed in
the following schedule:
(a) A locksmith license application fee of thirty dollars ($30).
(b) An original license and renewal fee for a locksmith license of
forty-five dollars ($45).
(c) A branch office registration fee and branch office renewal fee
of thirty-five dollars ($35).
(d) Notwithstanding Section 163.5, the reinstatement fee as
required by Section 6980.28 is the amount equal to the renewal fee
plus a penalty of 50 percent thereof.
(e) An initial registration fee for an employee of twenty dollars
($20).
(f) A registration renewal fee for an employee performing the
services of a locksmith of twenty dollars ($20).
(g) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
(h) All applicants seeking a license pursuant to this chapter
shall also remit to the bureau the fingerprint fee that is charged to
the bureau by the Department of Justice.
(i) The fee for a "Certificate of Licensure" of twenty dollars
($20).
(j) A delinquency fee is the amount equal to the renewal fee plus
a penalty of 50 percent thereof.
This section is repealed July 1, 1998.
SEC. 3. Section 6980.79 is added to the Business and Professions
Code, to read:
6980.79. The fees prescribed by this chapter are those fixed in
the following schedule:
(a) A locksmith license application fee may not exceed thirty
dollars ($30).
(b) An original license and renewal fee for a locksmith license
may not exceed forty-five dollars ($45).
(c) A branch office registration fee and branch office renewal fee
may not exceed thirty-five dollars ($35).
(d) Notwithstanding Section 163.5, the reinstatement fee as
required by Section 6980.28 is the amount equal to the renewal fee
plus a penalty of 50 percent thereof.
(e) An initial registration fee for an employee may not exceed
twenty dollars ($20).
(f) A registration renewal fee for an employee performing the
services of a locksmith may not exceed twenty dollars ($20).
(g) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
(h) All applicants seeking a license pursuant to this chapter
shall also remit to the bureau the fingerprint fee that is charged to
the bureau by the Department of Justice.
(i) The fee for a "Certificate of Licensure" may not exceed twenty
dollars ($20).
(j) A delinquency fee is the amount equal to the renewal fee plus
a penalty of 50 percent thereof.
This section shall become operative July 1, 1998. Notwithstanding
the operative date of this section, before, on, or after July 1,
1998, the bureau may adopt regulations specifying the fees authorized
by this section. If the bureau does not have regulations in effect
that delineate the specific fees authorized by this section by July
1, 1998, the schedule of fees in effect as of June 30, 1998, shall
remain operative until the bureau adopts regulations specifying the
fees.
SEC. 4. Section 7504.7 of the Business and Professions Code is
amended to read:
7504.7. (a) Except as provided in this section, every
qualification certificate issued or renewed under this chapter on or
after July 1, 1998, is subject to the same renewal provisions that
apply to a repossession agency license as set forth in Sections
7503.10, 7503.11, 7503.12, 7503.13, and 7503.14.
(b) An initial qualification certificate shall expire one year
following the date of issuance, unless renewed as provided in this
chapter.
(c) A renewal qualification certificate shall expire two years
following the date of renewal, unless renewed as provided in this
chapter.
SEC. 5. Section 7506.9 of the Business and Professions Code is
amended to read:
7506.9. (a) Upon the issuance of the initial registration,
reregistration or renewal, the chief shall issue to the registrant a
suitable pocket identification card. At the request of the
registrant, the identification card may include a photograph of the
registrant. The photograph shall be of a size prescribed by the
bureau. The card shall contain the name of the licensee with whom
the registrant is employed. The applicant may request to be issued
an enhanced pocket card that shall be composed of durable material
and may incorporate technologically advanced security features. The
bureau may charge a fee sufficient to reimburse the department for
costs for furnishing the enhanced pocket card. The fee charged may
not exceed the actual cost for system development, maintenance, and
processing necessary to provide the service, and may not exceed six
dollars ($6). If the applicant does not request an enhanced card,
the department shall issue a standard card at no cost to the
applicant.
(b) Until the registration certificate is issued or denied, a
person may be assigned to work with a temporary registration on a
secure form prescribed by the chief, and issued by the qualified
certificate holder, that has been embossed by the bureau with the
state seal for a period not to exceed 120 days from the date
employment commenced, provided the person signs a declaration under
penalty of perjury that he or she has not been convicted of a felony
or committed any other act constituting grounds for denial of a
registration pursuant to Section 7506.8 (unless he or she declares
that the conviction of a felony or the commission of a specified act
or acts occurred prior to the issuance of a registration by the chief
and the conduct was not the cause of any subsequent suspension or
termination of a registration), and that he or she has read and
understands the provisions of this chapter.
(c) The chief shall issue an additional temporary registration for
not less than 60 days nor more than 120 days, if the chief
determines that the investigation of the applicant will take longer
to complete than the initial temporary registration time period.
(d) No person shall perform the duties of a registrant for a
licensee unless the person has in his or her possession a valid
repossessor registration card or evidence of a valid temporary
registration or registration renewal as described in subdivision (b)
of this section or subdivision (c) of Section 7506.10. Every person,
while engaged in any activity for which licensure is required, shall
display his or her valid pocket card as provided by regulation.
SEC. 6. Section 7506.10 of the Business and Professions Code is
amended to read:
7506.10. (a) Every initial registration shall expire one year
following the date of issuance, unless renewed as provided in this
section, except for those registrations issued on or after January 1,
1984, which shall expire on December 31, 1985, and every year
thereafter, unless renewed as provided in this section. A renewal
registration shall expire two years following the date of renewal,
unless renewed as provided in this section.
(b) At least 60 days prior to the expiration, the bureau shall
mail a renewal form to the registrant at the licensee's place of
business. A registrant who desires to renew his or her registration
shall forward to the bureau for each registration the properly
completed renewal form obtained from the bureau, with the renewal fee
prescribed by this chapter, for renewal of his or her registration.
Until the registration renewal certificate is issued, a registrant
may continue to work with a temporary registration renewal
certificate on a secure form prescribed by the chief and issued by
the qualified certificate holder that has been embossed by the bureau
with the state seal for a period not to exceed 120 days from the
date of expiration of the registration.
(c) A licensee shall provide to his or her registrants information
regarding procedures for renewal of registration.
(d) A registration that is not renewed within 60 days after its
expiration may not be renewed. If the registration is renewed within
60 days after its expiration, the registrant, as a condition
precedent to renewal, shall pay the renewal fee and also pay the
delinquency fee prescribed in this chapter. Registrants working with
expired registrations shall pay all accrued fees and penalties prior
to renewal or reregistration.
(e) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
(f) Upon renewal, evidence of renewal, as the director may
prescribe, shall be issued to the registrant. If evidence of renewal
has not been delivered to the registrant prior to the date of
expiration, the registrant may present evidence of renewal to
substantiate continued registration for a period not to exceed 60
days after the date of expiration or a temporary registration renewal
certificate as described in subdivision (b).
(g) A registration shall not be renewed until any and all fines
assessed pursuant to this chapter and not resolved in accordance with
this chapter have been paid.
SEC. 7. Section 7507.10 of the Business and Professions Code is
amended to read:
7507.10. Each licensee shall serve a debtor with a notice of
seizure as soon as possible after the recovery of collateral and not
later than 48 hours, except that if the 48-hour period encompasses a
Saturday, Sunday, or postal holiday, the notice of seizure shall be
provided not later than 72 hours or, if the 48-hour period
encompasses a Saturday or Sunday and a postal holiday, the notice of
seizure shall be provided not later than 96 hours, after the
repossession of collateral. The notice shall include all of the
following:
(a) The name, address, and telephone number of the representative
of the legal owner to be contacted regarding the repossession.
(b) The name, address, and telephone number of the representative
of the repossession agency to be contacted regarding the
repossession.
(c) A statement printed on the notice containing the following:
"Repossessors are regulated by the Bureau of Security and
Investigative Services, Department of Consumer Affairs, Sacramento,
CA 95814. Repossessors are required to provide you, not later than
48 hours after the recovery of collateral, with an inventory of
personal effects or other personal property recovered during
repossession unless the 48-hour period encompasses a Saturday,
Sunday, or a postal holiday, then the inventory shall be provided no
later than 96 hours after the recovery of collateral."
(d) A disclosure that "Damage to a vehicle during or subsequent to
a repossession and only while the vehicle is in possession of the
repossession agency and which is caused by the repossession agency is
the liability of the repossession agency. A mechanical or tire
failure shall not be the responsibility of the repossession agency
unless the failure is due to the negligence of the repossession
agency."
(e) If applicable, a disclosure that environmental, Olympic,
special interest, or other license plates issued pursuant to Article
8 (commencing with Section 5000), Article 8.4 (commencing with
Section 5060) or Article 8.5 (commencing with Section 5100) of
Chapter 1 of Division 3 of the Vehicle Code that remain the personal
effects of the debtor will be removed from the collateral and
inventoried, and that if the plates are not claimed by the debtor
within 60 days, they will be destroyed.
The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
SEC. 8. Section 7507.13 of the Business and Professions Code is
amended to read:
7507.13. (a) A licensed repossession agency is not liable for the
act or omission of a legal owner, debtor, lienholder, lessor, or
lessee in making an assignment to it or for accepting an assignment
from any legal owner, debtor, lienholder, lessor, or lessee and is
entitled to indemnity from the legal owner, debtor, lienholder,
lessor, or lessee for any loss, damage, cost, or expense, including
court costs and attorney's fees, that it may reasonably incur as a
result thereof. Nothing in this subdivision limits the liability of
any person for his or her tortious conduct.
(b) The legal owner, debtor, lienholder, lessor, or lessee is not
liable for any act or omission by a licensed repossession agency in
carrying out an assignment and is entitled to indemnity from the
repossession agency for any loss, damage, cost, or expense, including
court costs and attorney's fees, that the legal owner, debtor,
lienholder, lessor, or lessee may reasonably incur as a result
thereof. Nothing in this subdivision limits the liability of any
person for his or her tortious conduct.
(c) The legal owner, debtor, lienholder, lessor, or lessee is not
guilty of a violation of Section 7502.1 or 7502.2 if, at the time of
the assignment, the party making the assignment has in its possession
a copy of the repossessor's current, unexpired repossession agency
license, and a copy of the current, unexpired repossession agency's
qualified manager's certificate, and does not have actual knowledge
of any order of suspension or revocation of the license or
certificate.
(d) Neither a licensed repossession agency nor a legal owner,
debtor, lienholder, lessor or lessee may, by any means, direct or
indirect, express or implied, instruct or attempt to coerce the other
to violate any law, regulation, or rule regarding the recovery of
any collateral, including, but not limited to, the provisions of this
chapter or Section 9503 of the Commercial Code.
SEC. 9. Section 7511 of the Business and Professions Code, as
amended by Section 35 of Chapter 505 of the Statutes of 1995, is
amended to read:
7511. Effective January 1, 1995, the bureau shall establish and
assess fees and penalties for licensure and registration as displayed
in this section. The fees prescribed by this chapter are as
follows:
(a) The application fee for an original repossession agency
license is eight hundred twenty-five dollars ($825).
(b) The application fee for an original qualification certificate
is three hundred twenty-five dollars ($325).
(c) The renewal fee for a repossession agency license is four
hundred seventy-five dollars ($475) annually.
(d) The renewal fee for a license as a qualified certificate
holder is two hundred twenty-five dollars ($225) annually.
(e) Notwithstanding Section 163.5, the reinstatement fee for a
repossession agency license required pursuant to Sections 7503.11 and
7505.3 is the amount equal to the renewal fee plus a penalty of 50
percent thereof.
(f) Notwithstanding Section 163.5, the reinstatement fee for a
license as a qualified certificate holder required pursuant to
Sections 7504.7 and 7503.11 is the amount equal to the renewal fee
plus a penalty of 50 percent thereof.
(g) A fee for reexamination of an applicant for a qualified
manager is thirty dollars ($30).
(h) An initial registrant registration fee is seventy-five dollars
($75), a registrant reregistration fee is thirty dollars ($30), and
a repossessor employee annual renewal fee is thirty dollars ($30) per
registration. Notwithstanding Section 163.5 and this subdivision,
the reregistration fee for a registrant whose registration expired
more than one year prior to the filing of the application for
reregistration shall be seventy-five dollars ($75).
(i) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
(j) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
(k) The director shall furnish one copy of any issue or edition of
the licensing law and rules and regulations to any applicant or
licensee without charge. The director shall charge and collect a fee
of ten dollars ($10) plus sales tax for each additional copy which
may be furnished on request to any applicant or licensee, and for
each copy furnished on request to any other person.
(l) The processing fee for the assignment of a repossession agency
license pursuant to Section 7503.9 is one hundred twenty-five
dollars ($125).
All fees, except any sales tax, received pursuant to this chapter
shall be deposited in the Private Security Services Fund.
This section shall become operative January 1, 1995, and shall
remain in effect only until July 1, 1998, and as of that date is
repealed.
SEC. 9.5. Section 7511 of the Business and Professions Code, as
amended by Section 36 of Chapter 505 of the Statutes of 1995, is
repealed.
SEC. 10. Section 7511 is added to the Business and Professions
Code, to read:
7511. Effective July 1, 1998, the bureau shall establish and
assess fees and penalties for licensure and registration as displayed
in this section. The fees prescribed by this chapter are as
follows:
(a) The application fee for an original repossession agency
license may not exceed eight hundred twenty-five dollars ($825).
(b) The application fee for an original qualification certificate
may not exceed three hundred twenty-five dollars ($325).
(c) The renewal fee for a repossession agency license may not
exceed four hundred seventy-five dollars ($475) annually.
(d) The renewal fee for a license as a qualified certificate
holder may not exceed four hundred fifty dollars ($450) biennially.
(e) Notwithstanding Section 163.5, the reinstatement fee for a
repossession agency license required pursuant to Sections 7503.11 and
7505.3 is the amount equal to the renewal fee plus a penalty of 50
percent thereof.
(f) Notwithstanding Section 163.5, the reinstatement fee for a
license as a qualified certificate holder required pursuant to
Sections 7504.7 and 7503.11 is the amount equal to the renewal fee
plus a penalty of 50 percent thereof.
(g) A fee for reexamination of an applicant for a qualified
manager may not exceed thirty dollars ($30).
(h) An initial registrant registration fee may not exceed
seventy-five dollars ($75), a registrant reregistration fee may not
exceed thirty dollars ($30), and a repossessor employee biennial
renewal fee may not exceed sixty dollars ($60) per registration.
Notwithstanding Section 163.5 and this subdivision, the
reregistration fee for a registrant whose registration expired more
than one year prior to the filing of the application for
reregistration may not exceed seventy-five dollars ($75).
(i) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
(j) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
(k) The director shall furnish one copy of any issue or edition of
the licensing law and rules and regulations to any applicant or
licensee without charge. The director shall charge and collect a fee
not to exceed ten dollars ($10) plus sales tax for each additional
copy which may be furnished on request to any applicant or licensee,
and for each copy furnished on request to any other person.
(l) The processing fee for the assignment of a repossession agency
license pursuant to Section 7503.9 may not exceed one hundred
twenty-five dollars ($125).
This section shall become operative July 1, 1998. Notwithstanding
the operative date of this section, before, on, or after July 1,
1998, the bureau may adopt regulations specifying the fees authorized
by this section. If the bureau does not have regulations in effect
that delineate the specific fees authorized by this section by July
1, 1998, the schedule of fees in effect as of June 30, 1998, shall
remain operative until the bureau adopts regulations specifying the
fees.
SEC. 11. Section 7529 of the Business and Professions Code is
amended to read:
7529. Upon the issuance of a license, a pocket card of the size,
design, and content as may be determined by the director shall be
issued to each licensee, if an individual, or if the licensee is a
person other than an individual, to its manager and to each of its
officers and partners. The pocket card is evidence that the licensee
is licensed pursuant to this chapter. The card shall contain the
signature of the licensee, signature of the chief, and a photograph
of the licensee, or bearer of the card, if the licensee is other than
an individual. The card shall clearly state that the person is
licensed as a private investigator or is the manager or officer of
the licensee. The applicant may request to be issued an enhanced
pocket card that shall be composed of a durable material and may
incorporate technologically advanced security features. The bureau
may charge a fee sufficient to reimburse the department's costs for
furnishing the enhanced pocket card. The fee charged may not exceed
the actual costs for system development, maintenance, and processing
necessary to provide this service, and may not exceed six dollars
($6). If the applicant does not request an enhanced card, the
department shall issue a standard card at no cost to the applicant.
When a person to whom a card is issued terminates his or her
position, office, or association with the licensee, the card shall be
surrendered to the licensee and within five days thereafter shall be
mailed or delivered by the licensee to the bureau for cancellation.
Every person, while engaged in any activity for which licensure is
required, shall display his or her valid pocket card as provided by
regulation.
SEC. 12. Section 7558 of the Business and Professions Code is
repealed.
SEC. 13. Section 7558 is added to the
Business and Professions Code, to read:
7558. A private investigator license, branch office certificate,
and pocket card issued under this chapter expires two years following
the date of issuance or on the assigned renewal date. Every private
investigator issued a license under this chapter that expires on or
after January 1, 1997, and who is also issued or renews a firearms
qualification card on or after January 1, 1997, shall be placed on a
cyclical renewal so that the private investigator license or pocket
card expires on the expiration date of the firearms qualification
card. Notwithstanding any other provision of law, the bureau is
authorized to extend or shorten the first term of licensure following
January 1, 1997, and to prorate the required license fee in order to
implement this cyclical renewal.
SEC. 14. The first Section 7570 of the Business and Professions
Code, as added by Section 4 of Chapter 1285 of the Statutes of 1994,
is amended to read:
7570. The fees prescribed by this chapter are as follows:
(a) The application and examination fee for an original license is
fifty dollars ($50).
(b) The application fee for an original branch office certificate
is thirty dollars ($30).
(c) The fee for an original license for a private investigator is
one hundred seventy-five dollars ($175).
(d) The renewal fee is as follows:
(1) For a license as a private investigator, one hundred
twenty-five dollars ($125).
(2) For a combination license as a private investigator and
private patrol operator under Chapter 11.5 (commencing with Section
7580), AC or DC prefix, six hundred dollars ($600).
(3) For a branch office certificate for a private investigator,
thirty dollars ($30), and for a combination private investigator and
private patrol operator under Chapter 11.5 (commencing with Section
7580), forty dollars ($40).
(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 is fifteen dollars ($15).
(h) This section shall remain in effect only until July 1, 1998,
and as of that date is repealed.
SEC. 15. The second Section 7570 of the Business and Professions
Code, as amended by Section 4 of Chapter 1285 of the Statutes of
1994, is repealed.
SEC. 16. Section 7570 is added to the Business and Professions
Code, to read:
7570. The fees prescribed by this chapter are as follows:
(a) The application and examination fee for an original license
may not exceed fifty dollars ($50).
(b) The application fee for an original branch office certificate
may not exceed thirty dollars ($30).
(c) The fee for an original license for a private investigator may
not exceed one hundred seventy-five dollars ($175).
(d) The renewal fee is as follows:
(1) For a license as a private investigator, the fee may not
exceed one hundred twenty-five dollars ($125).
(2) For a combination license as a private investigator and
private patrol operator under Chapter 11.5 (commencing with Section
7580), AC or DC prefix, the fee may not exceed six hundred dollars
($600).
(3) For a branch office certificate for a private investigator,
the fee may not exceed thirty dollars ($30), and for a combination
private investigator and private patrol operator under Chapter 11.5
(commencing with Section 7580), the fee may not exceed forty dollars
($40).
(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 may not exceed fifteen dollars ($15).
This section shall become operative July 1, 1998. Notwithstanding
the operative date of this section, before, on, or after July 1,
1998, the bureau may adopt regulations specifying the fees authorized
by this section. If the bureau does not have regulations in effect
that delineate the specific fees authorized by this section by July
1, 1998, the schedule of fees in effect as of June 30, 1998, shall
remain operative until the bureau adopts regulations specifying the
fees.
SEC. 17. Section 7582.13 of the Business and Professions Code is
amended to read:
7582.13. Upon the issuance of a license, a pocket card of the
size, design, and content determined by the director shall be issued
to each licensee, if an individual, or if the licensee is a person
other than an individual, to its manager and to each of its officers
and partners. The pocket card is evidence that the licensee is
licensed pursuant to this chapter. The card shall contain the
signature of the licensee, signature of the chief, and a photograph
of the licensee, or bearer of the card, if the licensee is other than
an individual. The card shall clearly state that the person is
licensed as a private patrol operator or is the manager or officer of
the licensee. The applicant may request to be issued an enhanced
pocket card that shall be composed of a durable material and may
incorporate technologically advanced security features. The bureau
may charge a fee sufficient to reimburse the department's costs for
furnishing the enhanced pocket card. The fee charged may not exceed
the actual costs for system development, maintenance, and processing
necessary to provide this service, and may not exceed six dollars
($6). If the applicant does not request an enhanced card, the
department shall issue a standard card at no cost. When a person to
whom a card is issued terminates his or her position, office, or
association with the licensee, the card shall be surrendered to the
licensee and within five days thereafter shall be mailed or delivered
by the licensee to the bureau for cancellation. Every person, while
engaged in any activity for which registration is required, shall
display their valid pocket card as provided by regulation.
SEC. 18. Section 7583.20 of the Business and Professions Code is
amended to read:
7583.20. (a) A registration issued under this chapter expires two
years following the date of issuance or on the assigned renewal
date. Every security guard issued a registration under this chapter
that expires on or after January 1, 1997, and who is also issued or
renews a firearms qualification card on or after January 1, 1997,
shall be placed on a cyclical renewal so that the registration
expires on the expiration date of the firearms qualification card.
Notwithstanding any other provision of law, the bureau is authorized
to extend or shorten the first term of registration following January
1, 1997, and to prorate the required registration fee in order to
implement this cyclical renewal. At least 60 days prior to the
expiration, a registrant seeking to renew a guard registration shall
forward to the bureau a completed registration renewal application
and the renewal fee. The renewal application shall be on a form
prescribed by the director, dated and signed by the applicant,
certifying under penalty of perjury that the information in the
application is true and correct.
(b) The licensee shall provide to any employee information
regarding procedures for renewal or registration.
(c) In the event a registrant fails to request a renewal of his or
her registration as provided in this chapter, the registration shall
expire as indicated on the registration. If the registration is
renewed within 60 days after its expiration, the registrant, as a
condition precedent to renewal, shall pay the renewal fee and the
delinquency fee.
(d) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
(e) If the renewed registration card has not been delivered to the
registrant prior to the expiration of the prior registration, the
registrant may present evidence of renewal to substantiate continued
registration for a period not to exceed 90 days after the date of
expiration.
(f) A registration may not be renewed or reinstated until all
fines assessed pursuant to Section 7587.7 and not resolved in
accordance with the provisions of that section have been paid.
SEC. 19. Section 7583.32 of the Business and Professions Code is
amended to read:
7583.32. (a) A firearms qualification card expires two years from
the date of issuance, if not renewed. A person who wishes to renew
a firearms qualification card shall file an application for renewal
at least 60 days prior to the card's expiration. A person whose card
has expired shall not carry a firearm until he or she has been
issued a renewal card by the bureau.
(b) The bureau shall not renew a firearms qualification card
unless all of the following conditions are satisfied:
(1) The cardholder has filed with the bureau a completed
application for renewal of a firearms qualification card, on a form
prescribed by the director, dated and signed by the applicant under
penalty of perjury certifying that the information on the application
is true and correct.
(2) The applicant has requalified on the range and has
successfully passed a written examination based on course content as
specified in the firearms training manual approved by the department
and taught at a training facility approved by the bureau.
(3) The application is accompanied by a firearms requalification
fee as prescribed in this chapter.
(4) The applicant has produced evidence to the firearm training
facility, either upon receiving his or her original qualification
card or upon filing for renewal of that card, that he or she is a
citizen of the United States or has permanent legal alien status in
the United States. Evidence of citizenship or permanent legal alien
status is that deemed sufficient by the bureau to ensure compliance
with federal laws prohibiting possession of firearms by persons
unlawfully in the United States and may include, but not be limited
to, Department of Justice, Immigration and Naturalization Service
Form I-151 or I-551, Alien Registration Receipt Card, naturalization
documents, or birth certificates evidencing lawful residence or
status in the United States.
(c) An expired firearms qualification card may not be renewed. A
person with an expired registration is required to apply for a new
firearms qualification in the manner required of persons not
previously registered. A person whose card has expired shall not
carry a firearm until he or she has been issued a new firearms
qualification card by the bureau.
SEC. 20. Section 7586 of the Business and Professions Code is
repealed.
SEC. 21. Section 7586 is added to the Business and Professions
Code, to read:
7586. A private patrol operator license, branch office
certificate, and pocket card issued under this chapter expires two
years following the date of issuance or on the assigned renewal date.
Every private patrol operator issued a license under this chapter
that expires on or after January 1, 1997, and who is also issued or
renews a firearms qualification card on or after January 1, 1997,
shall be placed on a cyclical renewal so that the license expires on
the expiration date of the firearms qualification card.
Notwithstanding any other provision of law, the bureau is authorized
to extend or shorten the first term of licensure following January 1,
1997, and to prorate the required license fee in order to implement
this cyclical renewal.
SEC. 22. Section 7588 of the Business and Professions Code, as
amended by Section 2 of Chapter 734 of the Statutes of 1996, 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 is two hundred dollars ($200).
(b) The application fee for an original branch office certificate
for a private patrol operator is seventy-five dollars ($75).
(c) The fee for an original license for a private patrol operator
is five hundred dollars ($500).
(d) The renewal fee is as follows:
(1) For a license as a private patrol operator, five hundred
dollars ($500).
(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, 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, forty dollars ($40), and for a private
patrol operator, 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 is twenty dollars ($20).
(h) Registration fees pursuant to this chapter are as follows:
(1) A registration fee for a security guard is twenty-five dollars
($25).
(2) A security guard registration renewal fee of twenty-five
dollars ($25).
(i) Fees to carry out other provisions of this chapter are as
follows:
(1) A firearms qualification fee of eighty dollars ($80).
(2) A firearms requalification fee of sixty dollars ($60).
(3) An initial baton certification fee of fifty dollars ($50).
(4) An application fee and renewal fee for certification as a
firearms training facility or a baton training facility of five
hundred dollars ($500).
(5) An application fee and renewal fee for certification as a
firearms training instructor or a baton training instructor of two
hundred fifty dollars ($250).
(j) This section shall remain in effect only until July 1, 1998,
and as of that date is repealed.
SEC. 23. Section 7588 of the Business and Professions Code, as
amended by Section 3 of Chapter 734 of the Statutes of 1996, is
repealed.
SEC. 24. Section 7588 is added to the Business and Professions
Code, 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 two hundred dollars
($200).
(b) The application fee for an original branch office certificate
for a private patrol operator may not exceed seventy-five dollars
($75).
(c) The fee for an original license for a private patrol operator
may not exceed five hundred dollars ($500).
(d) The renewal fee is as follows:
(1) For a license as a private patrol operator, the fee may not
exceed five hundred dollars ($500).
(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 may not exceed twenty dollars ($20).
(h) Registration fees pursuant to this chapter are as follows:
(1) A registration fee for a security guard may not exceed
twenty-five dollars ($25).
(2) A security guard registration renewal fee may not exceed
twenty-five dollars ($25).
(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).
This section shall become operative July 1, 1998. Notwithstanding
the operative date of this section, before, on, or after July 1,
1998, the bureau may adopt regulations specifying the fees authorized
by this section. If the bureau does not have regulations in effect
that delineate the specific fees authorized by this section by July
1, 1998, the schedule of fees in effect as of June 30, 1998, shall
remain operative until the bureau adopts regulations specifying the
fees.
SEC. 25. Section 7593.11 of the Business and Professions Code is
amended to read:
7593.11. An alarm company operator license issued under this
chapter expires two years following the date of issuance or on the
assigned renewal date. Every alarm company operator issued a license
under this chapter that expires on or after January 1, 1997, and who
is also issued or renews a firearms qualification card on or after
January 1, 1997, shall be placed on a cyclical renewal so that the
license expires on the expiration date of the firearms qualification
card. Notwithstanding any other provision of law, the bureau is
authorized to extend or shorten the first term of licensure following
January 1, 1997, and to prorate the required license fee in order to
implement this cyclical renewal. To renew an unexpired license or
certificate, the licensee shall apply for renewal on a form
prescribed by the director, pay all fines assessed pursuant to
Section 7591.9 and not resolved in accordance with the provisions of
that section, and pay the renewal fee. On renewal, evidence of
renewal of the license or certificate that the director may prescribe
shall be issued to the licensee. The bureau shall send to each
licensee a notice of renewal at least 45 calendar days prior to the
expiration of each license.
SEC. 26. Section 7596 of the Business and Professions Code is
amended to read:
7596. Every person licensed, registered, or designated under this
chapter, who in the course of his or her employment carries a
firearm, shall complete a course of training in the carrying and use
of firearms and shall receive a firearms qualification card prior to
the carrying of such a firearm and shall complete a course in the
exercise of the powers to arrest. A registration card issued by the
bureau pursuant to Section 7598.14 may also serve as a firearms
qualification card if so indicated on the face of the card.
SEC. 27. Section 7596.7 of the Business and Professions Code is
amended to read:
7596.7. A firearms qualification card expires two years from the
date of issuance, if not renewed. A person who wishes to renew a
firearms qualification card shall file an application for renewal at
least 60 days prior to the card's expiration. A person whose card
has expired shall not carry a firearm until he or she has been issued
a renewal card by the bureau.
The director shall not renew a firearms qualification card unless
all of the following conditions exist:
(a) The cardholder has filed with the bureau a completed
application for renewal of a firearms qualification card, on a form
prescribed by the director, dated and signed by the applicant under
penalty of perjury certifying that the information on the application
is true and correct.
(b) The application is accompanied by a firearms requalification
fee as prescribed in this chapter.
(c) The applicant has requalified on the range and has
successfully passed a written examination based on course content as
specified in the firearms training manual approved by the department
and taught at a training facility approved by the bureau.
(d) During calendar year 1985, the applicant has produced evidence
to the firearm training facility, either upon receiving his or her
original qualification card or upon filing for renewal of that card,
that he or she is a citizen of the United States or has permanent
legal alien status in the United States. Such evidence of
citizenship or permanent legal alien status is that deemed sufficient
by the bureau to ensure compliance with federal laws prohibiting
possession of firearms by persons unlawfully in the United States and
may include, but not be limited to, Department of Justice,
Immigration and Naturalization Service Form I-151 or I-551, Alien
Registration Receipt Card, naturalization documents, or birth
certificates evidencing lawful residence or status in the United
States.
(e) An expired firearms qualification card may not be renewed. A
person with an expired firearms qualification card is required to
apply for a new card in the manner required of persons not previously
registered. A person whose card has expired shall not carry a
firearm until he or she has been issued a new firearms qualification
card by the bureau.
SEC. 28. Section 7598.14 of the Business and Professions Code is
amended to read:
7598.14. Upon approval of an application for registration, the
chief shall cause to be issued to the applicant, at his or her last
known address, a registration card in a form approved by the
director. A photo identification card shall be issued upon written
request of the applicant, submission of two recent photographs of the
applicant, and payment of the fee. The applicant may request to be
issued an enhanced pocket card that shall be composed of a durable
material and may incorporate technologically advanced security
features. The bureau may charge a fee sufficient to reimburse the
department's costs for furnishing the enhanced license. The fee
charged may not exceed the actual costs for system development,
maintenance, and processing necessary to provide this service, and
may not exceed six dollars ($6). If the applicant does not request
an enhanced card, the department shall issue a standard card at no
cost to the applicant. In the event of the loss or destruction of
the card, the cardholder may apply to the bureau for a certified
replacement of the card, stating the circumstances surrounding the
loss, and pay a ten dollar ($10) certification fee, whereupon the
bureau shall issue a certified replacement of the card. Every
person, while engaged in any activity for which registration is
required, shall display their valid pocket card as provided by
regulation.
SEC. 29. Section 7598.17 of the Business and Professions Code is
amended to read:
7598.17. A registration issued under this chapter expires two
years following the date of issuance or on the assigned renewal date.
Every alarm agent issued a registration under this chapter that
expires on or after January 1, 1997, and who is also issued or renews
a firearms qualification card on or after January 1, 1997, shall be
placed on a cyclical renewal so that the registration expires on the
expiration date of the firearms qualification card. Notwithstanding
any other provision of law, the bureau is authorized to extend or
shorten the first term of registration following January 1, 1997, and
to prorate the required registration fee in order to implement this
cyclical renewal. At least 60 days prior to the expiration of a
registration, a registrant who desires to renew his or her
registration shall forward to the bureau a copy of his or her current
registration card, along with the renewal fee as set forth in this
chapter, to the bureau for renewal of his or her registration.
The licensee shall provide to any employee information regarding
procedures for renewal of registration.
An expired registration may be renewed provided the registrant
files a renewal application on a form prescribed by the director and
the renewal and delinquency fees prescribed by this chapter are
returned to the bureau within 60 days of the expiration date of the
registration. A firearms permit is not valid while the registration
is expired.
A registration not renewed within 60 days following its expiration
may not be renewed thereafter. The holder of the expired
registration may obtain a new registration only on compliance with
all of the provisions of this chapter relating to the issuance of an
original registration. The delinquency fee is 50 percent of the
renewal fee in effect on the date of expiration, but not less than
twenty-five dollars ($25).
The holder of an expired registration shall not engage in the
activity for which a registration is required until the bureau issues
a renewal registration.
If the renewed registration card has not been delivered to the
registrant, prior to the date of expiration of the prior
registration, the registrant may present evidence of renewal to
substantiate continued registration, for a period not to exceed 90
days after the date of expiration.
A registration may not be renewed or reinstated until all fines
assessed pursuant to Section 7591.9 and not resolved in accordance
with the provisions of that section have been paid.
A new registration shall be issued subject to payment of all fines
assessed pursuant to Section 7591.9 and not resolved in accordance
with the provisions of Section 7591.9 and payment of all applicable
fees.
SEC. 30. Section 7599.70 of the Business and Professions Code, as
amended by Section 5 of Chapter 734 of the Statutes of 1996, is
amended to read:
7599.70. Effective January 1, 1995, the bureau shall establish
and assess fees and penalties for licensure and registration as
follows:
(a) A company license application fee of thirty-five dollars
($35).
(b) An original license fee for an alarm company operator license
of two hundred eighty dollars ($280). A renewal fee for an alarm
company operator license of three hundred thirty-five dollars ($335).
(c) A qualified manager application and examination fee of one
hundred five dollars ($105).
(d) A renewal fee for a qualified manager of one hundred twenty
dollars ($120).
(e) An original license fee and renewal fee for a branch office
certificate of thirty-five dollars ($35).
(f) Notwithstanding Section 163.51, the reinstatement fee as
required by Sections 7593.12 and 7598.17 is the amount equal to the
renewal fee plus a penalty of 50 percent thereof.
(g) A fee for reexamination of an applicant for a qualified
manager of fourteen dollars ($14).
(h) An initial registration fee for an
alarm agent of seventeen dollars ($17).
(i) A registration renewal fee for an alarm agent of seven dollars
($7).
(j) A firearms qualification fee of eighty dollars ($80) and a
firearms requalification fee of sixty dollars ($60).
(k) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
(l) The processing fee required pursuant to Sections 7593.7 and
7598.14 is the amount equal to the expenses incurred to provide a
photo identification card.
(m) The fee for a "Certificate of Licensure" of fifty dollars
($50).
(n) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
(o) This section shall become operative on January 1, 1995, and
shall remain in effect only until July 1, 1998, and as of that date
is repealed.
SEC. 31. Section 7599.70 of the Business and Professions Code, as
amended by Section 6 of Chapter 734 of the Statutes of 1996, is
repealed.
SEC. 32. Section 7599.70 is added to the Business and Professions
Code, to read:
7599.70. Effective July 1, 1998, the bureau shall establish and
assess fees and penalties for licensure and registration as follows:
(a) A company license application fee may not exceed thirty-five
dollars ($35).
(b) An original license fee for an alarm company operator license
may not exceed two hundred eighty dollars ($280). A renewal fee for
an alarm company operator license may not exceed three hundred
thirty-five dollars ($335).
(c) A qualified manager application and examination fee may not
exceed one hundred five dollars ($105).
(d) A renewal fee for a qualified manager may not exceed one
hundred twenty dollars ($120).
(e) An original license fee and renewal fee for a branch office
certificate may not exceed thirty-five dollars ($35).
(f) Notwithstanding Section 163.51, the reinstatement fee as
required by Sections 7593.12 and 7598.17 is the amount equal to the
renewal fee plus a penalty of 50 percent thereof.
(g) A fee for reexamination of an applicant for a qualified
manager may not exceed fourteen dollars ($14).
(h) An initial registration fee for an alarm agent may not exceed
seventeen dollars ($17).
(i) A registration renewal fee for an alarm agent may not exceed
seven dollars ($7).
(j) A firearms qualification fee may not exceed eighty dollars
($80) and a firearms requalification fee not to exceed sixty dollars
($60).
(k) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
(l) The processing fee required pursuant to Sections 7593.7 and
7598.14 is the amount equal to the expenses incurred to provide a
photo identification card.
(m) The fee for a "Certificate of Licensure" may not exceed fifty
dollars ($50).
(n) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
This section shall become operative on July 1, 1998.
Notwithstanding the operative date of this section, before, on, or
after July 1, 1998, the bureau may adopt regulations specifying the
fees authorized by this section. If the bureau does not have
regulations in effect that delineate the specific fees authorized by
this section by July 1, 1998, the schedule of fees in effect as of
June 30, 1998, shall remain operative until the bureau adopts
regulations specifying the fees.
SEC. 33. Section 9810 of the Business and Professions Code is
amended to read:
9810. There is in the Department of Consumer Affairs a Bureau of
Electronic and Appliance Repair, under the supervision and control of
the director. The director shall administer and enforce the
provisions of this chapter.
The Governor shall appoint, subject to confirmation by the Senate,
a chief of the bureau at a salary to be fixed and determined by the
director with the approval of the Director of Finance. The chief
shall serve under the direction and supervision of the director and
at the pleasure of the Governor.
Every power granted to or duty imposed upon the director under
this chapter may be exercised or performed in the name of the
director by a deputy or assistant director or by the chief, subject
to conditions and limitations that the director may prescribe.
Whenever the laws of this state refer to the Bureau of Electronic
Repair Dealer Registration, the reference shall be construed to be to
the Bureau of Electronic and Appliance Repair.
SEC. 34. Section 9812.5 is added to the Business and Professions
Code, to read:
9812.5. The director shall gather evidence of violations of this
chapter and of any regulation established hereunder by any service
contractor, whether registered or not, and by any employee, partner,
officer, or member of any service contractor. The director shall, on
his or her own initiative, conduct spot check investigations of
service contractors throughout the state on a continuous basis. This
section shall remain in effect only until January 1, 2003, and as of
that date is repealed, unless a later enacted statute, that is
enacted before January 1, 2003, deletes or extends that date.
SEC. 35. Section 9814.5 is added to the Business and Professions
Code, to read:
9814.5. The director may establish and enforce reasonable
regulations for the conduct of service contractors, and for the
general enforcement of the various provisions of this chapter in the
protection of the public. The director shall distribute to each
registered service contractor copies of this chapter and of the
regulations adopted under this chapter. Regulations shall be
adopted, amended, or repealed in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
SEC. 36. Section 9830.5 of the Business and Professions Code is
amended to read:
9830.5. Each service contractor shall pay the fee required by
this chapter for each place of business operated by him or her in
this state and shall register with the bureau upon forms prescribed
by the director. The forms shall contain sufficient information to
identify the service contractor, including name, address, retail
seller's permit number, if a permit is required under the Sales and
Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of
the Revenue and Taxation Code), a copy of the certificate of
qualification as filed with the Secretary of State if the service
contractor is a foreign corporation, and other identifying data to be
prescribed by the bureau. If the business is to be carried on under
a fictitious name, that fictitious name shall be stated. If the
service contractor is a partnership, identifying data shall be stated
for each partner. If the service contractor is a private company
that does not file an annual report on Form 10-K with the Securities
and Exchange Commission, data shall be included for each of the
officers and directors of the company as well as for the individual
in charge of each place of the service contractor's business in the
State of California, subject to any regulations the director may
adopt. If the service contractor is a publicly held corporation or a
private company that files an annual report on Form 10-K with the
Securities and Exchange Commission, it shall be sufficient for
purposes of providing data for each of the officers and directors of
the corporation or company to file with the director the most recent
annual report on Form 10-K that is filed with the Securities and
Exchange Commission.
A service contractor who does not operate a place of business in
this state but who sells, issues, or administers service contracts in
this state, shall hold a valid registration issued by the bureau and
shall pay the registration fee required by this chapter as if he or
she had a place of business in this state.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 37. Section 9832 of the Business and Professions Code is
amended to read:
9832. (a) Registrations issued under this chapter shall expire no
more than 12 months after the issue date. The expiration date of
registrations shall be set by the director in a manner to best
distribute renewal procedures throughout the year.
(b) To renew an unexpired registration, the service dealer shall,
on or before the expiration date of the registration, apply for
renewal on a form prescribed by the director, and pay the renewal fee
prescribed by this chapter.
(c) To renew an expired registration, the service dealer shall
apply for renewal on a form prescribed by the director, pay the
renewal fee in effect on the last regular renewal date, and pay all
accrued and unpaid delinquency and renewal fees.
(d) Renewal is effective on the date that the application is
filed, the renewal fee is paid, and all delinquency fees are paid.
(e) For purposes of implementing the distribution of the renewal
of registrations throughout the year, the director may extend by not
more than six months, the date fixed by law for renewal of a
registration, except that in that event any renewal fee that may be
involved shall be prorated in a manner that no person shall be
required to pay a greater or lesser fee than would have been required
had the change in renewal dates not occurred.
SEC. 38. Section 9832.5 of the Business and Professions Code is
amended to read:
9832.5. (a) Registrations issued under this chapter shall expire
no more than 12 months after the issue date. The expiration date of
registrations shall be set by the director in a manner to best
distribute renewal procedures throughout the year.
(b) To renew an unexpired registration, the service contractor
shall, on or before the expiration date of the registration, apply
for renewal on a form prescribed by the director, and pay the renewal
fee prescribed by this chapter.
(c) To renew an expired registration, the service contractor shall
apply for renewal on a form prescribed by the director, pay the
renewal fee in effect on the last regular renewal date, and pay all
accrued and unpaid delinquency and renewal fees.
(d) Renewal is effective on the date that the application is
filed, the renewal fee is paid, and all delinquency fees are paid.
(e) For purposes of implementing the distribution of the renewal
of registrations throughout the year, the director may extend, by not
more than six months, the date fixed by law for renewal of a
registration, except that, in that event, any renewal fee that may be
involved shall be prorated in such a manner that no person shall be
required to pay a greater or lesser fee than would have been required
had the change in renewal dates not occurred.
(f) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2003, deletes or extends
that date.
SEC. 39. Section 9847.5 of the Business and Professions Code is
amended to read:
9847.5. Each service contractor shall maintain those records as
are required by the regulations adopted to carry out the provisions
of this chapter for a period of at least three years. These records
shall be open for reasonable inspection by the director or other law
enforcement officials.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 40. Section 9849 of the Business and Professions Code, as
amended by Section 4 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9849. The expiration of a valid registration shall not deprive
the director of jurisdiction to proceed with any investigation or
hearing on a cease and desist order against a service dealer or
service contractor or to render a decision invalidating a
registration temporarily or permanently.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 41. Section 9849 of the Business and Professions Code, as
added by Section 4.5 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9849. The expiration of a valid registration shall not deprive
the director of jurisdiction to proceed with any investigation or
hearing on a cease and desist order against a service dealer or to
render a decision invalidating a registration temporarily or
permanently.
This section shall become operative on January 1, 2003.
SEC. 42. Section 9851 of the Business and Professions Code, as
amended by Section 5 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9851. The superior court in and for the county wherein any person
carries on, or attempts to carry on, business as a service dealer or
service contractor in violation of the provisions of this chapter,
or any regulation thereunder, shall, on application of the director,
issue an injunction or other appropriate order restraining that
conduct.
The proceedings under this section shall be governed by Chapter 3
(commencing with Section 525) of Title 7 of Part 2 of the Code of
Civil Procedure, except that the director shall not be required to
allege facts necessary to show or tending to show lack of an adequate
remedy at law or irreparable injury.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 43. Section 9851 of the Business and Professions Code, as
added by Section 5.5 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9851. The superior court in and for the county wherein any person
carries on, or attempts to carry on, business as a service dealer in
violation of the provisions of this chapter, or any regulation
thereunder, shall, on application of the director, issue an
injunction or other appropriate order restraining that conduct.
The proceedings under this section shall be governed by Chapter 3
(commencing with Section 525) of Title 7 of Part 2 of the Code of
Civil Procedure, except that the director shall not be required to
allege facts necessary to show or tending to show lack of an adequate
remedy at law or irreparable injury.
This section shall become operative on January 1, 2003.
SEC. 44. Section 9853 of the Business and Professions Code, as
amended by Section 6 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9853. A plea or verdict of guilty or a conviction following a
plea of nolo contendere made to a charge substantially related to the
qualifications, functions, and duties of a service dealer or service
contractor is deemed to be a conviction within the meaning of this
article. The director may order the registration temporarily or
permanently invalidated, or may decline to issue a registration, when
the time for appeal has elapsed, or the judgment of conviction has
been affirmed on appeal or when an order granting probation is made
suspending the imposition of sentence, irrespective of a subsequent
order under Section 1203.4 of the Penal Code, allowing that person to
withdraw his or her plea of guilty and to enter a plea of not
guilty, or setting aside the verdict of guilty, or dismissing the
accusation, information, or indictment.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 45. Section 9853 of the Business and Professions Code, as
added by Section 6.6 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9853. A plea or verdict of guilty or a conviction following a
plea of nolo contendere made to a charge substantially related to the
qualifications, functions, and duties of a service dealer is deemed
to be a conviction within the meaning of this article. The director
may order the registration temporarily or permanently invalidated, or
may decline to issue a registration, when the time for appeal has
elapsed, or the judgment of conviction has been affirmed on appeal or
when an order granting probation is made suspending the imposition
of sentence, irrespective of a subsequent order under Section 1203.4
of the Penal Code allowing that person to withdraw his or her plea of
guilty and to enter a plea of not guilty, or setting aside the
verdict of guilty, or dismissing the accusation, information, or
indictment.
This section shall become operative on January 1, 2003.
SEC. 46. Section 9854 of the Business and Professions Code is
repealed.
SEC. 47. Section 9855.2 of the Business and Professions Code is
amended to read:
9855.2. (a) A service contract seller shall not issue, sell, or
offer for sale a service contract unless he or she complies with one
of the following requirements:
(1) Files with the director the most recent annual report on Form
10-K required by the Securities and Exchange Commission, reflecting a
net worth greater than the sum of the deferred revenues from service
contracts in force. If the service contractor is a foreign
corporation that files a comparable audited financial statement with
its home government or with the United States government, the
director may deem that statement an acceptable substitute for Form
10-K.
(2) Obtains a service contract reimbursement insurance policy.
(3) Sells service contracts that are administered by a service
contract administrator who has obtained a service contract
reimbursement insurance policy covering the seller's service
contracts.
(4) Maintains and annually verifies to the director a funded
account held in escrow equal to a minimum of 25 percent of the
deferred revenues from the service contracts in force.
(b) A service contract administrator shall not administer service
contracts sold in this state unless a service contract reimbursement
insurance policy covering these service contracts has been obtained.
SEC. 48. Section 9855.3 of the Business and Professions Code is
amended to read:
9855.3. (a) The service contract form to be issued by the service
contractor shall be filed with the director by the service
contractor prior to its use.
(b) Every service contract administrator shall file with its
application for registration, and thereafter, with its application
for registration renewal, a service contract reimbursement insurance
policy.
(c) Every service contract seller shall file with his or her
application for registration, and thereafter with his or her
application for registration renewal, one of the following:
(1) The most recent annual report on Form 10-K required by the
Securities and Exchange Commission, reflecting a net worth greater
than the sum of the deferred revenues from service contracts in
force. If the service contractor is a foreign corporation that
files a comparable audited financial statement with its home
government or with the United States government, the director may
deem that statement an acceptable substitute for Form 10-K.
(2) A service contract reimbursement insurance policy.
(3) Evidence that his or her service contracts are administered by
a service contract administrator who has obtained a service contract
reimbursement insurance policy covering the seller's service
contracts.
(4) Evidence of a funded account held in escrow equal to a minimum
of 25 percent of the deferred revenues from the service contracts in
force.
SEC. 49. Section 9855.9 of the Business and Professions Code is
amended to read:
9855.9. This article shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
SEC. 50. Section 9860 of the Business and Professions Code, as
amended by Section 8 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9860. The director shall establish procedures for accepting
complaints from the public against any service dealer or service
contractor.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 51. Section 9860 of the Business and Professions Code, as
added by Section 8.5 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9860. The director shall establish procedures for accepting
complaints from the public against any service dealer.
This section shall become operative on January 1, 2003.
SEC. 52. Section 9862.5 of the Business and Professions Code is
amended to read:
9862.5. If a complaint indicates a possible violation of this
chapter or of the regulations adopted pursuant to this chapter, the
director may advise the service contractor of the contents of the
complaint and, if the service contractor is so advised, the director
shall make a summary investigation of the facts after the service
dealer has had reasonable opportunity to reply thereto.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 53. Section 9863 of the Business and Professions Code, as
amended by Section 10 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9863. If, upon summary investigation, it appears to the director
probable that a violation of this chapter, or the regulations
thereunder, has occurred, the director, in his or her discretion, may
suggest measures that in the director's judgment would compensate
the complainant for the damages he or she has suffered as a result of
the alleged violation. If the service dealer or service contractor
accepts the director's suggestions and performs accordingly, the
director shall give that fact due consideration in any subsequent
disciplinary proceeding. If the service dealer or service contractor
declines to abide by the suggestions of the director, the director
may investigate further and may institute disciplinary proceedings in
accordance with the provisions of this chapter.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 54. Section 9863 of the Business and Professions Code, as
added by Section 10.5 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9863. If, upon summary investigation, it appears to the director
probable that a violation of this chapter, or the regulations
thereunder, has occurred, the director, in his or her discretion, may
suggest measures that in the director's judgment would compensate
the complainant for the damages he or she has suffered as a result of
the alleged violation. If the service dealer accepts the director's
suggestions and performs accordingly, the director shall give that
fact due consideration in any subsequent disciplinary proceeding. If
the service dealer declines to abide by the suggestions of the
director, the director may investigate further and may institute
disciplinary proceedings in accordance with the provisions of this
chapter.
This section shall become operative on January 1, 2003.
SEC. 55. Section 9873 of the Business and Professions Code, as
amended by Section 11 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9873. The fees prescribed by this chapter shall be set by the
director by regulation, according to the following schedule:
(a) (1) The initial registration fee for an electronic repair
industry service dealer or for an appliance repair industry service
dealer is not more than one hundred sixty-five dollars ($165) for
each place of business in this state. The initial registration fee
for a service contractor is not more than seventy-five dollars ($75)
for each place of business in this state.
(2) The initial registration fee for a person who engages in
business as both an electronic repair industry service dealer and an
appliance repair industry service dealer is not more than three
hundred twenty-five dollars ($325) for each place of business in this
state. The initial registration fee for a person who is a service
contractor and engages in business as either an electronic repair
industry service dealer or an appliance repair industry service
dealer is not more than two hundred forty dollars ($240) for each
place of business in this state.
(3) The initial registration fee for a person who engages in both
the electronic repair industry and the appliance repair industry as a
service dealer and is a service contractor is not more than four
hundred dollars ($400) for each place of business in this state.
A service dealer or service contractor who does not operate a
place of business in this state, but engages in the electronic repair
industry, the appliance repair industry, or sells, issues, or
administers service contracts in this state shall pay the
registration fee specified herein as if he or she had a place of
business in this state.
(b) (1) The annual registration renewal fee for an electronic
repair industry service dealer or for an appliance repair industry
service dealer is not more than one hundred sixty-five dollars ($165)
for each place of business in this state, if renewed prior to its
expiration date. The annual registration renewal fee for a service
contractor is seventy-five dollars ($75) for each place of business
in this state, if renewed prior to its expiration date.
(2) The annual renewal fee for a service dealer who engages in the
business as both an electronic repair industry service dealer and an
appliance repair industry service dealer is not more than three
hundred dollars ($300) for each place of business in this state.
(3) The annual renewal fee for a service dealer who engages in the
electronic repair industry and the appliance repair industry and is
a service contractor is not more than three hundred seventy-five
dollars ($375) for each place of business in this state.
A service dealer or service contractor who does not operate a
place of business in this state, but who engages in the electronic
repair industry, the appliance repair industry, or sells or issues
service contracts in this state shall pay the registration fee
specified herein as if he or she had a place of business in this
state.
(c) The delinquency fee is an amount equal to 50 percent of the
renewal fee for a license in effect on the date of renewal of the
license, except as otherwise provided in Section 163.5.
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute,
which is enacted before January 1, 2003, deletes or extends that
date.
SEC. 56. Section 9873 of the Business and Professions Code, as
added by Section 11.5 of Chapter 1265 of the Statutes of 1993, is
amended to read:
9873. The fees prescribed by this chapter shall be set by the
director by regulation, according to the following schedule:
(a) The initial registration fee for an electronic repair industry
service dealer or for an appliance repair industry service dealer is
not more than one hundred sixty-five dollars ($165) for each place
of business in this state. The initial registration fee for a person
who engages in business as both an electronic repair industry
service dealer and an appliance repair industry service dealer is not
more than three hundred twenty-five dollars ($325).
(b) The annual registration renewal fee for an electronic repair
industry service dealer or for an appliance repair industry service
dealer is not more than one hundred sixty-five dollars ($165) for
each place of business in this state, if renewed prior to its
expiration date. The annual renewal fee for a service dealer who
engages in the business as both an electronic repair industry service
dealer and an appliance repair industry service dealer is not more
than three hundred dollars ($300).
(c) The delinquency fee is an amount equal to 50 percent of the
renewal fee for a license in effect on the date of renewal of the
license, except as otherwise provided in Section 163.5.
This section shall become operative on January 1, 2003.
SEC. 57. Section 19008 of the Business and Professions Code is
amended to read:
19008. "Secondhand" means any materials or articles used in the
construction of bedding or upholstered furniture that have been
previously used for any purpose, and shall include "sweepings" which
are wastes recovered from gins, furniture and bedding factories,
textile plants, or establishments using fibers or other materials.
Manufacturing processes shall not be considered previous use, and new
materials that are free from dirt or other contamination shall not
be classified as sweepings.
SEC. 58. Section 19010 of the Business and Professions Code is
amended to read:
19010. "Bedding renovator" means a person who rebuilds, repairs,
makes over, re-covers, restores, renovates or renews bedding.
SEC. 59. Section 19080 of the Business and Professions Code is
amended to read:
19080. A person shall not, at wholesale, retail, or otherwise,
directly or indirectly, make, rebuild, repair, renovate, process,
prepare, sell, offer for sale, display, or deliver any article of
upholstered furniture or bedding, or any filling materials in
prefabricated form or loose in bags or containers, unless the article
or material is plainly and indelibly labeled. This does not include
furniture used exclusively for the purpose of physical fitness and
exercise.
SEC. 60. Section 19123.4 of the Business and Professions Code is
amended to read:
19123.4. Newly manufactured articles of bedding that contain any
secondhand filling material shall be sanitized before they are
offered or exposed for sale.
SEC. 61. Section 19208 of the Business and Professions Code is
amended to read:
19208. The chief may cite any person subject to the provisions of
this chapter to an office conference before the chief to show cause
why he or she should not be subject to disciplinary action or
prosecution for any act or omission in violation of this chapter.
SEC. 62. Section 1791 of the Civil Code, as amended by Section 1
of Chapter 461 of the Statutes of 1995, is amended to read:
1791. As used in this chapter:
(a) "Consumer goods" means any new product or part thereof that is
used, bought, or leased for use primarily for personal, family, or
household purposes, except for clothing and consumables. "Consumer
goods" shall include new and used assistive devices sold at retail.
(b) "Buyer" or "retail buyer" means any individual who buys
consumer goods from a person engaged in the business of
manufacturing, distributing, or selling consumer goods at retail. As
used in this subdivision, "person" means any individual,
partnership, corporation, limited liability company, association, or
other legal entity that engages in any such business.
(c) "Clothing" means any wearing apparel, worn for any purpose,
including under and outer garments, shoes, and accessories composed
primarily of woven material, natural or synthetic yarn, fiber, or
leather or similar fabric.
(d) "Consumables" means any product that is intended for
consumption by individuals, or use by individuals for purposes of
personal care or in the performance of services ordinarily rendered
within the household, and that usually is consumed or expended in the
course of consumption or use.
(e) "Distributor" means any individual, partnership, corporation,
association, or other legal relationship that stands between the
manufacturer and the retail seller in purchases, consignments, or
contracts for sale of consumer goods.
(f) "Independent repair or service facility" or "independent
service dealer" means any individual, partnership, corporation,
association, or other legal entity, not an employee or subsidiary of
a manufacturer or distributor, that engages in the business of
servicing and repairing consumer goods.
(g) "Lease" means any contract for the lease or bailment for the
use of consumer goods by an individual, for a term exceeding four
months, primarily for personal, family, or household purposes,
whether or not it is agreed that the lessee bears the risk of the
consumer goods' depreciation.
(h) "Lessee" means an individual who leases consumer goods under a
lease.
(i) "Lessor" means a person who regularly leases consumer goods
under a lease.
(j) "Manufacturer" means any individual, partnership, corporation,
association, or other legal relationship that manufactures,
assembles, or produces consumer goods.
(k) "Place of business" means, for the purposes of any retail
seller that sells consumer goods by catalog or mail order, the
distribution point for these goods.
(l) "Retail seller," "seller," or "retailer" means any individual,
partnership, corporation, association, or other legal relationship
that engages in the business of selling or leasing consumer goods to
retail buyers.
(m) "Return to the retail seller" means, for the purposes of any
retail seller that sells consumer goods by catalog or mail order, the
retail seller's place of business, as defined in subdivision (k).
(n) "Sale" means (1) the passing of title from the seller to the
buyer for a price, or (2) a consignment for sale.
(o) "Service contract" means a contract in writing to perform, for
an additional cost, over a fixed period of time or for a specified
duration, services relating to the maintenance or repair of a
consumer product, except that this term does not include a policy of
automobile insurance, as defined in Section 116 of the Insurance
Code.
(p) "Service contract administrator" or "administrator" means a
person, other than a service contract seller or an insurer admitted
to do business in this state, who performs or arranges, or has an
affiliate who performs or arranges, the collection, maintenance, or
disbursement of moneys to compensate any party for claims or repairs
pursuant to a service contract, and who also performs or arranges, or
has an affiliate who performs or arranges, any of the following
activities on behalf of service contract sellers:
(1) Providing service contract sellers with service contract
forms.
(2) Participating in the adjustment of claims arising from service
contracts.
(3) Arranging on behalf of service contract sellers the insurance
required by Section 9855.2. A service contract administrator shall
not be an obligor on a service contract.
(q) "Service contract seller" or "seller" means a person who sells
or offers to sell a service contract to a service contractholder.
(r) "Service contractor" means a service contract administrator or
a service contract seller.
(s) "Assistive device" means any instrument, apparatus, or
contrivance, including any component or part thereof or accessory
thereto, that is used or intended to be used, to assist an individual
with a disability in the mitigation or treatment of an injury or
disease or to assist or affect or replace the structure or any
function of the body of an individual with a disability, except that
this term does not include prescriptive lenses and other ophthalmic
goods unless they are sold or dispensed to a blind person, as defined
in Section 19153 of the Welfare and Institutions Code, and unless
they are intended to assist the limited vision of the person so
disabled.
(t) "Catalog or similar sale" means a sale in which neither the
seller nor any employee or agent of the seller nor any person related
to the seller nor any person with a financial interest in the sale
participates in the diagnosis of the buyer's condition or in the
selection or fitting of the device.
(u) "Home appliance" means any refrigerator, freezer, range,
microwave oven, washer, dryer, dishwasher, garbage disposal, trash
compactor, or room air-conditioner normally used or sold for
personal, family, or household purposes.
(v) "Home electronic product" means any television, radio, antenna
rotator, audio or video recorder or playback equipment, video
camera, video game, video monitor, computer equipment, telephone,
telecommunications equipment, electronic alarm system, electronic
appliance control system, or other kind of electronic product, if it
is normally used or sold for personal, family, or household purposes.
The term includes any electronic accessory that is normally used or
sold with a home electronic product for one of those purposes. The
term excludes any single product with a wholesale price to the retail
seller of less than fifty dollars ($50).
This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2003, deletes or extends that date.
SEC. 63. Section 1791 of the Civil Code, as amended by Section 2
of Chapter 461 of the Statutes of 1995, is amended to read:
1791. As used in this chapter:
(a) "Consumer goods" means any new product or part thereof that is
used, bought, or leased for use primarily for personal, family, or
household purposes, except for clothing and consumables. "Consumer
goods" shall include new and used assistive devices sold at retail.
(b) "Buyer" or "retail buyer" means any individual who buys
consumer goods from a person engaged in the business of
manufacturing, distributing, or selling consumer goods at retail. As
used in this subdivision, "person" means any individual,
partnership, corporation, limited liability company, association, or
other legal entity that engages in any of these businesses.
(c) "Clothing" means any wearing apparel, worn for any purpose,
including under and outer garments, shoes, and accessories composed
primarily of woven material, natural or synthetic yarn, fiber, or
leather or similar fabric.
(d) "Consumables" means any product that is intended for
consumption by individuals, or use by individuals for purposes of
personal care or in the performance of services ordinarily rendered
within the household, and that usually is consumed or expended in the
course of consumption or use.
(e) "Distributor" means any individual, partnership, corporation,
association, or other legal relationship that stands between the
manufacturer and the retail seller in purchases, consignments, or
contracts for sale of consumer goods.
(f) "Independent repair or service facility" or "independent
service dealer" means any individual, partnership, corporation,
association, or other legal entity, not an employee or subsidiary of
a manufacturer or distributor, that engages in the business of
servicing and repairing consumer goods.
(g) "Lease" means any contract for the lease or bailment for the
use of consumer goods by an individual, for a term exceeding four
months, primarily for personal, family, or household purposes,
whether or not it is agreed that the lessee bears the risk of the
consumer goods' depreciation.
(h) "Lessee" means an individual who leases consumer goods under a
lease.
(i) "Lessor" means a person who regularly leases consumer goods
under a lease.
(j) "Manufacturer" means any individual, partnership, corporation,
association, or other legal relationship that manufactures,
assembles, or produces consumer goods.
(k) "Place of business" means, for the purposes of any retail
seller that sells consumer goods by catalog or mail order, the
distribution point for consumer goods.
(l) "Retail seller," "seller," or "retailer" means any individual,
partnership, corporation, association, or other legal relationship
that engages in the business of selling or leasing consumer goods to
retail buyers.
(m) "Return to the retail seller" means, for the purposes of any
retail seller that sells consumer goods by catalog or mail order, the
retail seller's place of business, as defined in subdivision (k).
(n) "Sale" means (1) the passing of title from the seller to the
buyer for a price, or (2) a consignment for sale.
(o) "Service contract" means a contract in writing to perform,
over a fixed period of time or for a specified duration, services
relating to the maintenance or repair of a consumer product, except
that this term does not include a policy of automobile insurance, as
defined in Section 116 of the Insurance Code.
(p) "Assistive device" means any instrument, apparatus, or
contrivance, including any component or part thereof or accessory
thereto, that is used or intended to be used, to assist an individual
with a disability in the mitigation or treatment of an injury or
disease or to assist or affect or replace the structure or any
function of the body of an individual with a disability, except that
this term does not include prescriptive lenses and other ophthalmic
goods unless they are sold or dispensed to a blind person, as defined
in Section 19153 of the Welfare and Institutions Code and unless
they are intended to assist the limited vision of the person so
disabled.
(q) "Catalog or similar sale" means a sale in which neither the
seller nor any employee or agent of the seller nor any person related
to the seller nor any person with a financial interest in the sale
participates in the diagnosis of the buyer's condition or in the
selection or fitting of the device.
(r) "Home appliance" means any refrigerator, freezer, range,
microwave oven, washer, dryer, dishwasher, garbage disposal, trash
compactor, or room air-conditioner normally used or sold for
personal, family, or household purposes.
(s) "Home electronic product" means any television, radio, antenna
rotator, audio or video recorder or playback equipment, video
camera, video game, video monitor, computer equipment, telephone,
telecommunications equipment, electronic alarm system, electronic
appliance control system, or other kind of electronic product, if it
is normally used or sold for personal, family, or household purposes.
The term includes any electronic accessory that is normally used or
sold with a home electronic product for one of those purposes. The
term excludes any single product with a wholesale price to the retail
seller of less than fifty dollars ($50).
This section shall become operative on January 1, 2003.
SEC. 64. Section 1794.4 of the Civil Code, as amended by Section
13 of Chapter 1265 of the Statutes of 1993, is amended to read:
1794.4. (a) Nothing in this chapter shall be construed to prevent
the sale of a service contract to the buyer in addition to, or in
lieu of, an express warranty if that contract fully and conspicuously
discloses in simple and readily understood language the terms,
conditions, and exclusions of that contract, provided that nothing in
this section shall apply to a home protection contract issued by a
home protection company that is subject to Part 7 (commencing with
Section 12740) of Division 2 of the Insurance Code.
(b) Except as otherwise expressly provided in the service
contract, every service contract shall obligate the service contract
seller to provide to the buyer of the product all of the services and
functional parts that may be necessary to maintain proper operation
of the entire product under normal operation and service for the
duration of the service contract and without additional charge.
(c) The service contract shall contain all of the following items
of information:
(1) A clear description and identification of the covered product.
(2) The point in time or event when the term of the service
contract commences, and its duration measured by elapsed time or an
objective measure of use.
(3) If the enforceability of the service contract is limited to
the original buyer or is limited to persons other than every consumer
owner of the covered product during the term of the service
contract, a description of the limits on transfer or assignment of
the service contract.
(4) A statement of the general obligation of the service contract
seller in the same language set forth in subdivision (b), with
equally clear and conspicuous statements of (A) any services, parts,
characteristics, components, properties, defects, malfunctions,
causes, conditions, repairs, or remedies that are excluded from the
scope of the service contract; (B) any other limits on the
application of the language in subdivision (b) such as a limit on the
total number of service calls; (C) any additional services that the
service contract seller will provide; (D) whether the obligation of
the service contract seller includes preventive maintenance and, if
so, the nature and frequency of the preventive maintenance that the
service contractor will provide; and (E) whether the buyer has an
obligation to provide preventive maintenance or perform any other
obligations and, if so, the nature and frequency of the preventive
maintenance and of any other obligations, and the consequences of any
noncompliance.
(5) A step-by-step explanation of the procedure that the buyer
should follow in order to obtain performance of any obligation under
the service contract, including (A) the full legal and business name
of the service contract seller; (B) the mailing address of the
service contract seller; (C) the persons or class of persons that are
authorized to perform service; (D) the name or title and address of
any administrator, agent, employee, or department of the service
contract seller that is responsible for the performance of any
obligations; (E) the method of giving notice to the service contract
seller of the need for service; (F) whether in-home service is
provided or, if not, whether the costs of transporting the product,
for service or repairs will be paid by the service contract seller;
(G) if the product must be transported to the service contract
seller, either the place where the product may be delivered for
service or repairs or a toll-free telephone number that the buyer may
call to obtain that information; (H) all other steps that the buyer
must take to obtain service; and (I) all fees, charges, and other
costs that the buyer must pay to obtain service.
(6) An explanation of the steps that the service contract seller
will take to carry out its obligations under the service contract.
(7) A description of any right to cancel the contract if the buyer
returns the product or the product is sold, lost, stolen, or
destroyed, or, if there is no right to cancel or the right to cancel
is limited, a statement of the fact.
(8) Information respecting the availability of any informal
dispute settlement process.
(9) A statement identifying the person who is financially and
legally obligated to perform the services specified in the service
contract, including the name and address of that person.
Nothing in this subdivision shall preclude a service contract
seller from designating an administrator that a service
contractholder may initially contact for performance of the
obligations under the service contract.
(d) Subdivisions (b) and (c) of this section are applicable to
service contracts on new or used home appliances and home electronic
products entered into on or after July 1, 1989. They are applicable
to service contracts on all other new or used products entered into
on and after July 1, 1991.
(e) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
SEC. 65. Section 1794.4 of the Civil Code, as added by Section
13.5 of Chapter 1265 of the Statutes of 1993, is amended to read:
1794.4. (a) Nothing in this chapter shall be construed to prevent
the sale of a service contract to the buyer in addition to or in
lieu of an express warranty if that contract fully and conspicuously
discloses in simple and readily understood language the terms,
conditions, and exclusions of that contract, provided that nothing in
this section shall apply to a home protection contract issued by a
home protection company that is subject to Part 7 (commencing with
Section 12740) of Division 2 of the Insurance Code.
(b) Except as otherwise expressly provided in the service
contract, every service contract shall obligate the service
contractor to provide to the buyer of the product all of the services
and functional parts that may be necessary to maintain proper
operation of the entire product under normal operation and service
for the duration of the service contract and without additional
charge.
(c) The service contract shall contain all of the following items
of information:
(1) A clear description and identification of the covered product.
(2) The point in time or event when the term of the service
contract commences, and its duration measured by elapsed time or an
objective measure of use.
(3) If the enforceability of the service contract is limited to
the original buyer or is limited to persons other than every consumer
owner of the covered product during the term of the service
contract, a description of the limits on transfer or assignment of
the service contract.
(4) A statement of the general obligation of the service
contractor in the same language set forth in subdivision (b), with
equally clear and conspicuous statements of (A) any services, parts,
characteristics, components, properties, defects, malfunctions,
causes, conditions, repairs, or remedies that are excluded from the
scope of the service contract; (B) any other limits on the
application of the language in subdivision (b) such as a limit on the
total number of service calls; (C) any additional services that the
service contractor will provide; (D) whether the obligation of the
service contractor includes preventive maintenance and, if so, the
nature and frequency of the preventive maintenance that the service
contractor will provide; and (E) whether the buyer has an obligation
to provide preventive maintenance or perform any other obligations
and, if so, the nature and frequency of the preventive maintenance
and of any other obligations, and the consequences of any
noncompliance.
(5) A step-by-step explanation of the procedure that the buyer
should follow in order to obtain performance of any obligation under
the service contract including (A) the full legal and business name
of the service contractor; (B) the mailing address of the service
contractor; (C) the persons or class of persons that are authorized
to perform service; (D) the name or title and address of any agent,
employee, or department of the service contractor that is responsible
for the performance of any obligations; (E) the method of giving
notice to the service contractor of the need for service; (F) whether
in-home service is provided or, if not, whether the costs of
transporting the product, for service or repairs will be paid by the
service contractor; (G) if the product must be transported to the
service contractor, either the place where the product may be
delivered for service or repairs or a toll-free telephone number that
the buyer may call to obtain that information; (H) all other steps
that the buyer must take to obtain service; and (I) all fees,
charges, and other costs that the buyer must pay to obtain service.
(6) An explanation of the steps that the service contractor will
take to carry out its obligations under the service contract.
(7) A description of any right to cancel the contract if the buyer
returns the product or the product is sold, lost, stolen, or
destroyed, or, if there is no right to cancel or the right to cancel
is limited, a statement of the fact.
(8) Information respecting the availability of any informal
dispute settlement process.
(d) Subdivisions (b) and (c) of this section are applicable to
service contracts on new or used home appliances and home electronic
products entered into on or after July 1, 1989. They are applicable
to service contracts on all other new or used products entered into
on and after July 1, 1991.
(e) This section shall become operative on January 1, 2003.
SEC. 66. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.