BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2389
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          Date of Hearing:   April 17, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                  AB 2389 (Lowenthal) - As Amended:  March 29, 2012 
           
          SUBJECT  :   Contractor disclosure requirements. 

           SUMMARY  :   Prohibits a contractor entering a personal residence 
          from wearing a uniform that bears, or driving a vehicle that 
          bears, a contractor's name or logo, unless information is 
          displayed, as specified.  Specifically,  this bill  :  

          1)Prohibits a contractor entering a personal residence from 
            wearing a uniform that bears, or driving a vehicle that bears, 
            a contractor's name or logo, unless: 

             a)   The uniform or vehicle state that the contractor's name 
               and that it is providing services on behalf of the 
               contracting entity; and, 

             b)   The information is displayed a conspicuous place, in 
               sharp contrast to the background, and in such a way that 
               the size, shape, and color is ready visible. 

          2)Authorizes the Department of Consumer Affairs to impose a $250 
            fine per day for each violation until the uniform or vehicle 
            is compliant with this bill. 

          3)Creates the following definitions:

             a)   "Contracting entity" to mean any person, business, or 
               public entity contracting with another person or business 
               to provide services on its behalf.  

             b)   "Contractor" to mean any person or business that 
               contracts to provide services on behalf of a contracting 
               entity; and, 

             c)   "Public entity" to mean the state or any political 
               subdivision thereof, including, but not limited to, a city, 
               county, city and county, or special district. 

          4)Makes legislative findings and declarations related to public 








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            communications on consumer awareness. 

           EXISTING LAW  : 

          1)Makes is unlawful for any person doing business in California 
            and advertising to consumers to make any false or misleading 
            advertising claim, including claims that:  purport to be based 
            on factual, objective, or clinical evidence; compare the 
            product's effectiveness or safety to that of other brands; or, 
            purport to be based on any fact.  �Business & Professions Code 
            (BPC) Section 17508]

          2)Authorizes an employer, without prohibition, to prescribe the 
            weight, color, quality, texture, style, form and make of 
            uniforms required to be worn by his or her employees. �Labor 
            Code (LC) Section 452]

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "This 
          is essentially a 'truth in advertising' bill that would strip 
          away a layer of obfuscation that leaves consumers unaware of the 
          relationship between the person at their front door and the 
          company that sent them there.  The author wants to make sure 
          consumers know whether they are dealing with the employee of a 
          particular company, or with a subcontractor, who may or may not 
          be trained by, accountable to, or indemnified by the company 
          with whom the consumer is seeking to transact with."

           Background  .  Existing law prohibits false or misleading 
          advertisement and the impersonation of a licensed individual 
          within the BPC.  While this bill is intended to protect 
          consumers from individuals who may unscrupulously hold 
          themselves out as an emergency responder or other professional 
          to gain entry to a personal residence, existing criminal law may 
          take precedent in such instances. 

           Support  .  According to the sponsor, the California Professional 
          Firefighters, "AB 2389 would increase the awareness of 
          California consumers by requiring specified disclosures relating 
          to services that are rendered on a contractual basis to members 
          of the public which require entering a residence or a place of 
          lodging, as well as those services provided on a contractual 








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          basis that relate to the public's health and safety. 

          "In addition to providing fire protection and suppression, 
          hazardous materials response, terrorist consequence management, 
          swift water rescue and a host of other property- and life-saving 
          services, California's fire service is also the primary provider 
          of pre-hospital emergency medical care throughout the state.  
          Under the color of authority - denoted by a badge, uniform and a 
          clearly marked emergency vehicle - California's fire service 
          arrives on scene, identified in a manner that informs the public 
          that such personnel are required to maintain the highest level 
          of emergency response training, adhere to a stringent code of 
          conduct and ethical standards, and are accountable to the public 
          they serve? 

          "California's fire service understands the importance of 
          standing up to its image and reputation.  All service providers 
          who seek to convey an image through the use of a uniform or logo 
          must have some accountability to that image.  Given the breadth 
          of the state's subcontracted workforce, it's in the public's 
          best interest for the state to take steps to increase the 
          public's awareness, and subsequently permit the public to demand 
          accountability when receiving such services as identified in 
          this bill.  AB 2389 will provide California consumers a clear 
          picture of the relationship between the worker who shows up at 
          the front door and the company that sent them there.  
          Californians who receive critical, property and/or life-saving 
          services in their home or at a place of lodging should have as 
          much information as possible about the providers of those 
          services."  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Labor Federation (co-sponsor)
          California Professional Firefighters (co-sponsor) 
          State Building and Construction Traders Council

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301 








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