BILL ANALYSIS �
AB 1443
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Date of Hearing: March 27, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1443 (Logue) - As Introduced: January 4, 2012
SUBJECT : Home furnishings: inspections: reimbursement.
SUMMARY : Requires the Bureau of Electronic and Appliance
Repair, Home Furnishings, and Thermal Insulation (Bureau) to
reimburse the manufacturer, distributor, or retailer for any
article or sample of filling material or insulation taken for
analysis, unless the article or sample is found to be in
violation of law or Bureau regulation, as specified.
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.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author, "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. Several instances occurred in
Northern California, drawing the attention of area legislators
AB 1443
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who then raised the issue with the Secretary of the State and
Consumer Services Agency. The Bureau has since changed its
procedures to ensure that proper enforcement of the law is
conducted without depriving private property owners of their
right to compensation.
"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. The Department of Consumer Affairs (DCA) has
provided technical assistance in drafting this legislation, but
has no official position at this time."
Background . This bill is a reintroduction of AB 87 (Logue) of
2011, which would have prohibited a chief or inspector from
taking articles or samples of upholstered furniture or bedding
for analysis, and instead would have authorized the Bureau to
purchase these items for analysis. This bill requires the
Bureau to reimburse the manufacturer, distributor, or retailer
of any article or sample taken for analysis, unless the article
or sample is found to be in violation of law or Bureau
regulation. Currently, the Bureau does not have the statutory
authority to reimburse manufacturers, and accordingly is unable
to adopt clear implementing regulations. However, DCA states
that the Bureau is currently compensating manufacturers,
distributors and retailers for furniture and bedding taken for
analysis.
Similar to the other boards and bureaus under DCA, 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. It is
unknown whether the additional costs imposed by this bill will
require a license fee increase.
Previous legislation . AB 87 (Logue) of 2011, prohibits a chief
or inspector from taking articles or samples of upholstered
furniture or bedding for the purpose of analysis, and instead
authorizes the Bureau to purchase any article of upholstered
furniture or bedding as may be necessary for analysis, as
specified. This bill was held in Assembly Appropriations
Committee.
REGISTERED SUPPORT / OPPOSITION :
AB 1443
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Support
None on file.
Opposition
None on file.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301