BILL ANALYSIS �
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|Hearing Date:June 11, 2012 |Bill No:AB |
| |1443 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Curren D. Price, Jr., Chair
Bill No: AB 1443Author:Logue
As Introduced: January 4, 2012Fiscal:Yes
SUBJECT: Home furnishings: inspections: reimbursement.
SUMMARY: Requires the Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation (Bureau) to reimburse the
manufacturer, distributer, or retailer for the actual cost of an
article or sample of upholstered furniture or bedding, including
pillows or cushions or insulation taken for analysis, unless the
article or sample is found to be in violation of the law.
Existing law:
1)Licenses and regulates manufacturers, sellers, upholsterers, and
sanitizers of home furnishings, such as furniture and bedding by the
Bureau within the Department of Consumer Affairs (DCA) under the
Home Furnishings and Thermal Insulation Act (Act). (Business and
Professions Code (BPC) � 19000 et seq.)
2)Provides that the Act is enforced by the chief of the Bureau. (BPC �
19031)
3) Authorizes the chief or any inspector to open any article of
upholstered furniture or bedding, including pillows or cushions or
insulation for the purpose of inspecting concealed filling material
and that they may take either the entire article, or samples of
filling material or insulation in such quantities as may be
necessary for analysis. (BPC � 19200.5.)
This bill: Requires the Bureau to reimburse the manufacturer,
distributer, or retailer for the actual cost of the article or sample
taken for analysis, unless the article or sample is found to be in
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violation of the Act or a regulation of the Bureau.
FISCAL EFFECT: The Assembly Appropriations Committee analysis dated
April 18, 2013 cites costs to pay business owners for upholstered
items would likely be between $60,000 and $75,000 per year. Costs
would be incurred by the Bureau of Home Furnishings and Thermal
Insulation Fund.
COMMENTS:
1.Purpose. This bill is sponsored by the Author . According to the
Author, this bill is intended to require the Bureau to reimburse a
private property owner for any home furnishings taken for testing
unless the item is found to be in violation of regulations.
According to the Author, in several cases, properly tagged items have
also been seized for further testing by Bureau inspectors, and
property owners have been denied the appropriate compensation. The
Author further states: "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 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."
This bill is needed 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 for any
financial loss sustained during the regulatory enforcement of the
Act, according to the Author.
2.Background. This bill is a reintroduction of AB 87 (Logue) of 2011,
which would have prohibited the Bureau chief or an 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
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compensating manufacturers, distributors and retailers for furniture
and bedding taken for analysis.
The Bureau is a "special fund" agency as are the other boards and
bureaus under the DCA. The Bureau is self-funding, meaning it does
not draw monies from the state's 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.
The Bureau enforces California statutes and regulations governing
the furniture, bedding and thermal insulation industries in
California. The Bureau issues a variety of licenses to the home
furnishings industry, including manufacturers, wholesalers,
retailers, supply dealers, bedding renovators, custom upholsterers,
and sanitizers, as well as insulation manufacturers.
The Bureau inspectors routinely inspect licensed mattress makers and
sellers throughout the state for product compliance with laws such
as those requiring product labeling and appropriate business
licensing. In addition, inspectors monitor the advertising
practices of mattress sellers to make sure they comply with state
law.
Businesses that violate the Home Furnishings and Thermal Insulation
Act, the false and misleading advertising section of the Business
and Professions Code, or Bureau regulations, are subject to a fine
of up to $2,500.
3.Related Legislation. AB 87 (Logue) of 2011, a similar bill, would
have prohibited the chief or an inspector from taking articles or
samples of upholstered furniture or bedding for the purpose of
analysis, and instead authorized the Bureau to purchase any article
of upholstered furniture or bedding as necessary for analysis, as
specified. That bill was held on the Assembly Appropriations
Committee's Suspense File.
4.Arguments in Support. The California Retailers Association supports
the bill, writing that 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. AB 1443 addresses this issue by
prohibiting the Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation staff from taking samples of
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upholstered furniture or bedding for analysis.
SUPPORT AND OPPOSITION:
Support:
California Retailers Association
Opposition:
None received as of June 4, 2012
Consultant:G. V. Ayers