BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2389
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          ASSEMBLY THIRD READING
          AB 2389 (Bonnie Lowenthal)
          As Amended  April 24, 2012
          Majority vote 

           BUSINESS & PROFESSIONS     7-1  APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Bill Berryhill,  |Ayes:|Fuentes, Blumenfield,     |
          |     |Allen, Butler,            |     |Bradford, Charles         |
          |     |Eng, Hill, Ma             |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Hagman                    |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
           ----------------------------------------------------------------- 

           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 the contractor's name and 
               that it is providing services on behalf of the contracting 
               entity; and, 

             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 readily 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. 

          3)Creates the following definitions:

             a)   "Contracting entity" to mean any person, business, or 
               public entity contracting with another person or business 








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               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 
            communications on consumer awareness. 

           EXISTING LAW  : 

          1)Makes it unlawful for any person doing business in California 
            and advertising to consumers to make any false or misleading 
            advertising claim, including one that purports to be based on 
            factual, objective, or clinical evidence, or compares the 
            product's effectiveness or safety to that of other brands.  

          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. 

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee: 

          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. 


          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 its jurisdiction.  

           COMMENTS  :  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 








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          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."

          Existing law prohibits false or misleading advertisement and the 
          impersonation of a licensed individual within the Business and 
          Professions Code.  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. 

          
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301 


                                                                FN: 0003667