BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1443|
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THIRD READING
Bill No: AB 1443
Author: Logue (R)
Amended: As introduced
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 9-0, 6/11/12
AYES: Price, Emmerson, Corbett, Correa, Hernandez, Negrete
McLeod, Strickland, Vargas, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 6/25/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : 74-0, 4/26/12 (Consent) - See last page
for vote
SUBJECT : Home furnishings: inspections: reimbursement
SOURCE : Author
DIGEST : This bill 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.
ANALYSIS :
CONTINUED
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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) Section 19000 et seq.)
2. Provides that the Act is enforced by the chief of the
Bureau. (BPC Section 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 Section 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 violation of the Act or
a regulation of the Bureau.
Background
This bill is a reintroduction of AB 87 (Logue, 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 compensating manufacturers,
distributors and retailers for furniture and bedding taken
for analysis.
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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 Act, the false and misleading
advertising section of the BPC, or Bureau regulations, are
subject to a fine of up to $2,500.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, estimated
$100,000 to $115,000 annually from the Bureau of Home
Furnishings and Thermal Insulation Fund.
SUPPORT : (Verified 6/25/12)
California Retailers Association
ARGUMENTS IN SUPPORT : According to the author's office,
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
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regulations. 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 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."
ASSEMBLY FLOOR : 74-0, 4/26/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Hall, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Jeffries, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Skinner,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Cedillo, Furutani, Halderman, Harkey,
Jones, Smyth
JJA:k 6/26/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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