BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2740
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2740 (Bonilla) - As Amended:  April 24, 2014 

          Policy Committee:                              Business and  
          Professions  Vote:                            14 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Bureau of Electronic and Appliance  
          Repair, Home Furnishings and Thermal Insulation (BEARHFTI) to be  
          subject to review by the Legislature before January 1, 2019, and  
          requests that BEARHFTI report on specified concerns to the  
          Legislature by March 1, 2015. Specifically, this bill: 

          1)Requires that BEARHFTI's powers and duties be subject to  
            review by the Assembly Business, Professions and Consumer  
            Protection Committee and the Senate Business, Professions and  
            Economic Development Committee (Committees), and further  
            requires that the review be performed as if the provisions of  
            BEARHFTI were scheduled to be repealed on January 1, 2019.

          2)Makes findings and declarations relating to BEARHFTI's  
            creation, jurisdiction, and its joint oversight sunset hearing  
            held by the Committees, and to issues and recommendations that  
            were raised in BEARHFTI's sunset background paper.

          3)States that it is the intent of the Legislature that BEARHFTI  
            examine and respond to the issues and recommendations  
            identified in the sunset background paper, and report back to  
            the Committees by March 1, 2015, with its findings.

           FISCAL EFFECT  

          One-time minor costs to BEARHFTI (special funds) to respond to  
          the issues and recommendations in the sunset review background  
          paper and report back to the Legislature by March 1, 2015.  The  
          bill recommends, but does not require, BEARHFTI to respond.









                                                                  AB 2740
                                                                  Page  2

           COMMENTS  

           1)Purpose . According to the author, "Although BEARHFTI is  
            subject to sunset review, and was subject to a sunset review  
            oversight hearing on March 10, 2014, its statutory provisions  
            do not contain a sunset review provision. This bill simply  
            seeks to make clear that BEARHFTI is subject to sunset review,  
            and to reinforce the recommendations contained in BEARHFTI's  
            sunset review report in order to increase accountability."  

           2)Background  . BEARHFTI, which is housed under the Department of  
            Consumer Affairs (DCA), licenses and regulates over 40,000  
            businesses, including businesses that engage in the repair of  
            electronics and appliances, the sale and administration of  
            service contracts, and the manufacture, sale, and repair of  
            home furnishings and thermal insulation.  BEARHFTI also  
            inspects businesses and conducts investigations; researches  
            and develops standards for, and tests, home furnishings and  
            thermal insulation products, handles consumer complaints, and  
            initiates disciplinary action against businesses that violate  
            statutory or regulatory requirements.

           3)Sunset Review  .  Existing law establishes the Joint Sunset  
            Review Committee to identify and eliminate waste, duplication,  
            and inefficiency in government agencies.  The purpose is to  
            conduct a performance review of every eligible agency,  
            including boards, bureaus, commissions and councils under DCA,  
            to determine if the agency is still necessary and cost  
            effective.  Currently, the duties of the Joint Sunset Review  
            Committee are performed by the Assembly Business, Professions  
            and Consumer Protection Committee and the Senate Business,  
            Profession and Economic Development Committee (Committees).  


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081