BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2389
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          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

              AB 2389 (Bonnie Lowenthal) - As Amended:  April 24, 2012 

          Policy Committee:                              Business and 
          Professions  Vote:                            7 - 1 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill prohibits a subcontractor entering a personal 
          residence or place of lodging from wearing a uniform that bears, 
          or driving a vehicle that bears, a contractor's name or logo, 
          unless that vehicle or uniform clearly bears the subcontractor's 
          name and other required information.  Specifically, this bill:  

          1)Prohibits a subcontractor entering a personal residence or 
            place of lodging 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 the subcontractor's name 
               and that it is providing services on behalf of the 
               contracting entity. 

             b)   The information is displayed in 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 (DCA) to impose 
            a $250 fine per day for each violation until the uniform or 
            vehicle is compliant with this bill. 

           FISCAL EFFECT  

          1)On-going costs for the Contractors State License Board and the 
            Bureau of Security and Investigative Services, the two 
            licensing categories under DCA that might be affected by this 
            bill, would be minor and absorbable within existing resources. 










                                                                  AB 2389
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          2)The majority of businesses likely affected by this bill, 
            emergency responders, cable companies, telephone companies, 
            and cleaning companies, for example, are not licensed by DCA 
            and are therefore not under their jurisdiction.  

           COMMENTS  

           1)Purpose  .  The intent of this legislation is 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 the consumer is doing business with. 

            This bill specifically requires that a uniform or vehicle 
            clearly identify the name of the subcontractor and the company 
            they are providing services for. 
            The California Professional Firefighters Association (CPFA), 
            sponsors of the legislation, note "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."  

            As an example, CPFA points to cable companies that use 
            subcontractors to install their equipment or go door to door 
            to sell cable packages.  Oftentimes, those subcontractors 
            simply wear uniforms depicting the name of the cable company 
            and nothing that indicates they are not actually employed by 
            that company. As another example, CPFA, notes that local 
            jurisdictions often subcontract out their emergency medical 
            response services and often it is not clear whether the person 
            responding to a medical aid call at a home is an actual 
            firefighter employed by the city or a private subcontractor. 
            This bill would require that distinction to be made on the 
            uniforms of the subcontractor. 

           2)Would this bill be effective  ? DCA does not have jurisdiction 
            over the majority of subcontractors who would theoretically be 
            affected by this legislation.  Therefore, they would not be 
            able to impose fines for violations of the provisions of this 
            bill.  



           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081 








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