BILL ANALYSIS �
AB 2740
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2740 (Bonilla)
As Amended August 18, 2014
Majority vote
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|ASSEMBLY: |73-0 |(May 8, 2014) |SENATE: |32-0 |(August 21, |
| | | | | |2014) |
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Original Committee Reference: B., P. & C.P.
SUMMARY : 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,
extends until January 1, 2019, the sunset date for registration,
investigation, and enforcement of service contractors and
service dealers, and requests that BEARHFTI report on specified
concerns to the Legislature by July 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BEARHFTI were scheduled to be repealed on January 1, 2019.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)Extends until January 1, 2019, the sunset date for the
registration, investigation, and enforcement of service
contractors.
3)Makes findings and declarations relating to BEARHFTI's
creation, its jurisdiction, and its joint oversight sunset
hearing held by the Committees, and to the following issues
and recommendations that were raised in BEARHFTI's sunset
background paper:
a) Reporting on its long-term fiscal outlook and any
planned efforts to increase revenues and reduce
expenditures;
b) Advising the Committees on its pro rata costs and
whether BEARHFTI could achieve cost savings by handling
more consumer complaints in house;
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c) Examining the pros and cons of biennial license renewals
for electronic and appliance repair and thermal insulation
licensees;
d) Conducting market condition assessments for both the
electronic and appliance repair market and the home
furnishings and thermal insulation market to determine if
current law reflects the needs of the markets, where risk
to consumers is greatest, where resources could be
refocused or expanded, and whether continued regulation is
necessary across all segments of these markets;
e) Considering whether various licenses should be
consolidated and if it should continue to regulate, or
issue, standalone sanitizer and custom upholsterer
licenses;
f) Reexamining product testing protocols to ensure it has
the information it needs to identify areas of highest risk
to consumers, and reexamining product standards to
determine if some standards could be relaxed, presuming
there is no appreciable impact on consumer safety, if
standards could be better clarified or advertised, or if
penalties for violations are too low to act as a proper
deterrent; and
g) Updating the Committees on implementation of the
Department of Consumer Affair's (DCA's) BreEZe system.
4)States that it is the intent of the Legislature that BEARHFTI
examine and respond to the issues and recommendations
identified in the background paper, and report back to the
Committees by July 1, 2015, with its findings.
5)Makes minor and conforming changes, including deleting
obsolete provisions of law.
The Senate amendments extend until January 1, 2019, the sunset
date for the registration, investigation, and enforcement of
service contractors.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
AB 2740
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COMMENTS :
1)Purpose of this bill. This bill requires BEARHFTI to be
subject to review by the Legislature before January 1, 2019,
and requests that BEARHFTI report specified information back
to the Committees by March 1, 2015. This is an
author-sponsored bill.
2)Author's statement. 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."
3)BEARHFTI. BEARHFTI, which is housed under 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.
4)Sunset Review. Existing law establishes the Joint Sunset
Review Committee to identify and eliminate waste, duplication,
and inefficiency in government agencies. The purpose of the
committee 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 Committees.
As part of the 2014 Sunset Review, the Committees prepared a
sunset background paper on BEARHFTI, and on March 10, 2014,
held a joint oversight sunset hearing. Although BEARHFTI is
subject to review, and voluntarily participated in a sunset
review oversight hearing, its statutory provisions do not
contain a sunset review provision. This bill simply clarifies
that BEARHFTI shall be subject to review by the appropriate
policy committees of the Legislature, and requires that review
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to be performed as if BEARHFTI's provisions were to be
repealed on January 1, 2019.
In addition, while the hearing and the background paper found
BEARHFTI was generally in good standing, it also identified
areas for follow up and requested BEARHFTI to report back to
the Committees on specific issues. This bill specifies that
it is the intent of the Legislature that BEARHFTI examine and
respond to the issues and recommendations identified in the
background paper, and report back to the Committees by March
1, 2015.
Analysis Prepared by : Eunie Linden / B., P. & C.P. / (916)
319-3301
FN: 0005166