BILL ANALYSIS �
AB 87
Page 1
Date of Hearing: April 12, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 87 (Logue) - As Amended: March 17, 2011
SUBJECT : Home furnishings: inspections: compensation.
SUMMARY : Prohibits a chief or inspector from taking articles
or samples of upholstered furniture or bedding for the purpose
of analysis, as specified. Specifically, this bill :
1)Deletes the authority of a chief or inspector to take articles
or samples of upholstered furniture or bedding, as specified,
for the purpose of analysis.
2)Authorizes the Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation (Bureau) to purchase any
article of upholstered furniture or bedding as may be
necessary for analysis, as specified, and may require any
manufacturer, distributor, or retailer of that article to sell
it to the Bureau at cost.
3)Requires the Bureau to adopt regulations to implement these
provisions.
4)Makes legislative findings and declarations regarding the
right to private property.
EXISTING LAW :
1)Provides for the licensure and regulation of various
manufacturers, sellers, upholsterers, and sanitizers of home
furnishings, such as furniture and bedding, under the Home
Furnishings and Thermal Insulation Act (Act).
2)Authorizes the Bureau chief or any inspector to open any
article of upholstered furniture or bedding for the purpose of
inspection and to take any part for analysis.
3)Authorizes the Bureau to condemn, withhold from sale, seize,
or destroy any upholstered furniture or bedding or any filling
material or insulation that is found to be in violation of the
Act.
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FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "Under
existing law, the Bureau is authorized to seize or destroy any
furniture or bedding that is deemed non-compliant with current
regulations. In several cases, properly tagged items have also
been seized for further testing by inspectors, and property
owners denied the appropriate compensation. This has created a
problem where business owners incur significant financial losses
due to enforcement procedures.
"The purpose of this bill is to make the necessary changes to
the law to codify the new procedures adopted by the �Bureau] and
to ensure that statute protects a private property owner's right
to compensation.
Background . Similar to the other boards and bureaus under the
Department of Consumer Affairs, the Bureau is self-funding,
meaning it does not draw monies from the General Fund. The
Bureau supports its licensure and enforcement activities in part
through the fees it collects from furniture and bedding
manufacturers, retailers, and distributors. This bill requires
the Bureau to compensate manufacturers, retailers, and
distributors for taking articles or samples of upholstered
furniture or bedding from the same funds they remit to the
Bureau for licensure. It is unknown whether the additional
costs imposed by this bill will require a license fee increase.
The Bureau of Repair Services was established in 1963 through
the enactment of the Electronic Repair Dealer Registration Law.
In the early 1970s, the name was changed to the Bureau of
Electronic and Appliance Repair.
The Electronic Repair Dealer Registration Law was primarily the
result of the combined effort of three groups: the California
State Electronics Association, the Governor's Consumer Council,
and the Department of Professional and Vocational Standards
Advisory Committee. The groups' intent was to provide
protection to California consumers against fraud and negligence
in the home electronics repair business.
By the late 1950s and the early 1960s, fraud and negligence in
AB 87
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the television (TV) repair industry were becoming big problems
for consumers and law enforcement agencies. The TV industry
experienced tremendous growth during the 1950s, and TV sets were
relatively expensive household purchases. For many, when a TV
failed replacing it was not an option making the demand for TV
repair services quite high.
Since TV technology was still new in the 1960s, most consumers
knew little of the mechanics or costs of television repair.
This lack of knowledge put consumers at a disadvantage when they
dealt with individuals who offered repair services, and they
were vulnerable to being victimized by unethical businesses.
Negligent repair could lead to fire, shock, picture tube
implosion, and other serious safety hazards. In response to
increased consumer complaints and safety concerns, consumer
advocacy groups and the television repair industry sought
protection from the state.
State officials determined that the fraudulent and negligent
practices taking place in the TV repair industry jeopardized the
welfare of California citizens. As a result, in 1963 the
Electronic and Repair Dealer Registration Law was enacted,
establishing the Bureau of Repair Services. The Bureau was
created within the Department of Professional and Vocational
Standards (becoming the Department of Consumer Affairs in 1970).
The period of 1963 - 1965 served as a trial period for the
Bureau. At the end of that period, hearings were held to help
state officials determine whether the Bureau should continue on
a permanent basis. At those hearings, testimony from various
consumer groups indicated that:
the Bureau provided a central clearinghouse for complaints,
which facilitated efforts to monitor and track unethical
practices and perpetrators; local law enforcement officials
experienced relief from the obligation to conduct investigations
for fraud in repair practices; and district attorneys felt
relieved from the burden of handling most complaints through
criminal prosecution procedures State officials concluded that
continued regulation was desirable. Therefore, the Bureau's
trial period ended and it continued its role of regulating
repair businesses without restricting entry into the industry.
This arrangement was intended to provide the state government
with a means to monitor businesses in the service and repair
industry, and of disciplining or removing from the marketplace
those businesses that operated in a dishonest, unethical or
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dangerous manner.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301